Ministry of Finance of Ukraine simplifies VAT reporting procedure

Due to the amendments to the Tax Code of Ukraine adopted in December 2015 (Law of Ukraine No. 909-VIII of December 24, 2015), the Ministry of Finance of Ukraine adopted new forms and the new VAT reporting instructions on January 28, 2016 (Order No. 21 «On the forms and instructions for the reporting on the value-added tax»).

The above order of the Ministry of Finance significantly simplifies the forms and instructions for the VAT reports.

Thus, compared to the previous VAT declaration the number of sections was reduced from four to three. The number of lines in the new declaration form was more than halved from 96 to 44. This means that the volume of information to be declared (in the declaration as well as in its appendices) was reduced to a minimum.

Due to these amendments to the declaration the subsequent calculation form was shortened as well from 31 to 21 lines.

The simplified VAT reporting forms make it possible for tax payers to reduce their time consumption for filling them in as well as for correcting reporting mistakes.

This approach will positively impact the performance of Ukraine in global tax ratings (rating “Doing Business”).

The mentioned order of the Ministry of Finance also takes into account amendments to art. 209 of the Tax Code of Ukraine and introduces the calculation of the value share of agricultural products/services. The sum of the VAT to be paid to the state budget and to be transferred to the dedicated accounts thus depends on the kind of agricultural products sold.

At the same time, some of the appendices to the VAT declaration which are user-friendly remain unchanged. They include the calculation of tax obligations by service recipients who are not registered VAT payers and received services rendered by non-residents on the customs territory of Ukraine including their permanent representative offices which are not registered as tax payers.

The Ministry of Finance of Ukraine will continue its efforts to simplify the tax reporting procedures and to secure transparent tax revenues administration.