Tax Committee Meeting on VAT & CIT Administration with SFS Representatives

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On January 28, Chamber Tax Committee held its meeting on VAT and CIT administration issues with participation of representatives of the State Fiscal Service of Ukraine (SFS): Sergiy Tymoshenko, Deputy Head of Department for Methodological Work on Taxation, and Oleksiy Zadorozhniy, Head of CIT Methodology Division of Department for Methodological Work on Taxation. 



The meeting was devoted to discussion of practical aspects related to administration of VAT and CIT in regard to the last tax changes adopted in December 2015. 

Vadim Medvedev, Avellum Partners, Head of the Chamber Working Group on International Taxation & EU Harmonization moderated the panel discussion focused on the following:

deadline and form for annual CIT declaration for 2015;

  • set-off of CIT advanced payments while payment of dividends and monthly CIT advanced payments of 2013 – 2014;
  • VAT accounting for "transitional operations" with seeds and grains in 2016;
  • timing differences for the CIT declaration for banks;
  • deducting accrued costs without documents (accruals) for the purposes of CIT;
  • procedure of VAT credit accounting;
  • new penalties in case of mistakes in tax return etc.

Business representatives received answers and clarifications from SFS experts in regard to the abovementioned issues as well as information on actual developments on these matters.

As a result of the meeting, it was agreed that the Chamber on behalf of the business community will continue cooperating with SFS representatives as well as will send requests for clarifications to MinFin and SFS on the following issues:

  • peculiarities of VAT taxation on seeds and grains in 2016;
  • inconsistency of terms for the CIT declaration for taxpayers who submit financial reporting under IFRS (banks);
  • deducting accrued costs without documents (accruals) for the purposes of CIT;
  • tax treatment of dividends received from CIT payers which are not required to pay advanced CIT at the moment of distribution.