Innovations of the Tax Code of Ukraine regarding VAT

The Law of Ukraine "On Amendments to the Tax Code of Ukraine and some legislative acts of Ukraine regarding ensuring the balance of budgetary receipts in 2016" dated 24.12.2015 No. 909-VIII, the people's deputies made amendments to Articles 188, 189 of the NKU. That is, new rules have appeared for determining the base of VAT taxation.

First, it is stipulated that the excise tax on the sale of excisable goods by retail business entities is not included in the VAT base.

Secondly, the tax base for operations for the supply of self-made goods /services cannot be lower than normal prices. Recall: in 2015, the VAT taxation base in this case should not be lower than the cost of the corresponding goods /services.

Thirdly, if banks and other financial institutions supply property acquired by them as a result of foreclosure on such property, the tax base is the positive difference between the delivery price and the purchase price of such property. The purchase price is defined as the value of the property at which such property was acquired as ownership. In the case of property acquisition from a taxpayer, the acquisition price is determined taking into account value added tax.

If on such property the tax amounts were included in the tax credit by a bank or other financial institution, the provisions of clause 198.5 of the TCU apply.

Fourth, the taxation base for operations for the supply of services for the transportation (movement, transportation) of natural gas by cross-border gas pipelines (transportation of natural gas through the territory of Ukraine in the customs transit regime), performed (provided) by NJSC Naftogaz of Ukraine, is determined on the basis of the contractual (contract) cost including national taxes and fees.

Recall that the new GCC eliminated the rule that violation of the procedure for filling in the mandatory details of the tax invoice does not give the buyer the right to include VAT amounts in the tax credit.

From 01.01.2016, a tax invoice containing errors in the details specified in clause 201.1 of the GCC (except for the product code according to UKT VED), which do not interfere with identifying the operation performed, its content (product /service included in the package), period, parties and the amount of tax liabilities is the basis for attributing the VAT amounts to the tax credit by the buyer.

However, it must be remembered that if the tax authority confirms the error based on the results of the audit, then the seller faces fines in accordance with paragraph 120 1 .4 of the GCC.