Taxes return to pre-war levels

Taxes returned to pre-war levels.

This is evidenced by the relevant law adopted by the Verkhovna Rada in June of this year, Ukrainian News Agency reports.

According to the document, from August 1, the single tax rate of 2%, which was introduced for the 3rd group pf taxpayers (legal entities and individual-entrepreneurs) from April 1, 2022, will be abolished.

At the same time, the bill regulates the transition from a 2% single tax (ST).

So, the payer of 2% ST will have the right to submit an application to refuse on apply of 2% ST and indicate which taxation system he wishes to switch to (without submitting such an application, and if the payer does not indicate the desired system in the application, the payer of 2% ST will be automatically transferred on the system on which he was before the election of 2% ST).

Newly created economic entities, which from the day of state registration chose 2% ST, will automatically be considered payers of ST of the third group with a rate of 5%.

The document provides for the automatic restoration of the rights and obligations of the VAT payer for those entities whose registration as a VAT payer has been suspended.

Payers who switched from 2% ST to the general system in 2023 have the right to switch again in 2023 to the simplified system of their choice by submitting an application.

At the same time, in the case of submitting an application before September 1, 2023, such a payer will be considered an ST payer from August 1, 2023.

As of August 1, the bill partially cancels the current moratorium on inspections for excise goods (alcohol, tobacco, fuel), gambling business and financial services.

From October 1, responsibility for violations in the field of application of the Registrar of Settlement Operations (RSO) returns.

At the same time, exemption from financial responsibility for violations of the RSO (except during the trade of excise goods), if they were committed in the front-line territories (including the territories of possible hostilities) is provided.

The bill also provides for:

- "technical debt" (which arose from April 1, 2022 to July 31, 2023 in the electronic cabinet) shall not be taken into account when determining the possibility of the payer to continue staying on the simplified system;

- preservation of the right to voluntary payment of ST and single social tax (SST) for front-line territories (including territories of possible hostilities);

- providing an opportunity for individual-entrepreneurs - payers of the ST without VAT to indicate the names of goods (services) in a simplified form in the settlement documents.

The document also stipulates that for the transfer of goods by legal entities for the defense forces, an approved list of the Cabinet of Ministers is not required.

As Ukrainian News Agency earlier reported, on March 15, 2022, the Verkhovna Rada canceled the excise tax on fuel and reduced the value-added tax (VAT) rate on its supply and import from 20% to 7%.

In April, the Cabinet of Ministers increased the value of excise stamps on alcoholic products by 84%, or by 16 kopecks to 35 kopecks, on tobacco products by 78%, or by 7 kopecks to 16 kopecks.

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