The Parliament has adopted as a basis (1st reading) Draft Law No. 16037-d “On Amendments to the Tax Code of Ukraine to Simplify the Administration of Value Added Tax” (modified on the basis of Government Draft Law No. 16037).
The draft law is aimed at simplifying the administration of value added tax, developing electronic interaction between taxpayers and regulatory authorities, as well as improving the procedure for compiling VAT tax reporting and tax invoices.
In particular, the draft law No. 16037-d proposes to:
– Provide all VAT payers with the opportunity to pre-automatically fill out tax reporting and tax invoices based on information available in the information systems of the State Tax Service (STS), in the manner and volumes determined by the Ministry of Finance of Ukraine;
– Provide individual entrepreneurs – VAT payers with the opportunity to independently choose a quarterly or monthly reporting period;
– Increase from 100 thousand hryvnias to 1 million hryvnias the threshold amount of budget reimbursement and/or negative VAT value, the declaration of which gives grounds for conducting an unscheduled documentary audit;
– Provide the opportunity to prepare consolidated tax invoices when supplying goods/services to buyers – non-VAT payers in the event of receiving advance payment from them – without the requirement for continuity and rhythm of such supply.
The draft law was developed to fulfill Ukraine’s international obligations to the European Union and the International Monetary Fund, and its adoption is a key condition for receiving macro-financial assistance.
The draft law will be finalized in the Verkhovna Rada of Ukraine Committee on Finance, Tax and Customs Policy before the second reading. (Finance Ministry)