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Ukraine Taxation Update 2010

Ukraine has introduced a requirement for some tax invoices to be registered in the General Register of tax invoices. This requirement was introduced on 1 September 2009 for tax invoices related to sales of goods with a VAT amount exceeding UAH 1 million per invoice. This provision is extended with effect from 1 January 2010 for invoices with a VAT amount exceeding UAH 500,000 and from 1 April 2010 for invoices with a VAT amount exceeding UAH 100,000. If the seller violates the registration procedure, the tax authorities may review its tax liabilities to verify the buyer’s right to include the VAT charged as a tax credit. If discrepancies are found between the tax invoice and the General Register, the tax authorities may perform a tax review of the buyer and the seller.

The law further states that the buyer of the goods in not entitled to VAT credit if the
VAT invoice amount is not reflected in the buyer’s VAT return or the seller did not fully settle his tax liabilities.

Ukraine has passed a law that provides, amongst other things, for the introduction with effect from 1 January 2010 of temporary import duty and VAT exemptions for certain goods that cannot be sourced in the local market. The law also provides for corporate profit tax exemptions for some enterprises related to production and sale of biological types of fuel and the equipment for working on such fuel. These benefits are established for a 10 year period, starting from 1 January 2010.
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Makisig Bayani

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