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Documentary Proof of Fixed Assets Liquidation for VAT Purposes

Fixed assets liquidation for tax purposes is not considered as a supply in the event when fixed production or non-production assets are liquidated because of being destroyed or ruined due to force-majeure circumstances, or in other circumstances when such liquidation is carried out without a taxpayer’s consent, including when fixed production or non-production assets are stolen and that is evidenced as required by law.

Fixed assets liquidation is not considered as a supply in the event when a taxpayer submits a corresponding document testifying to destruction, dismantling or transformation of fixed production or non-production assets in any other way, as a consequence of which they can no longer be used for their primary purposes.   These documents are enclosed to the VAT return declaration for the reporting period when such circumstances arise and the fixed assets liquidation takes place.

The above is spelled out in Individual Tax Consultation of the State Fiscal Service of Ukraine dated 13 July 2017 No. 1179/6/99-99-15-03-02-15/IPK and Individual Tax Consultation of the Large Taxpayers Office at the State Fiscal Service of Ukraine dated 11 October 2017 No. 2204/IPK/28-10-01-03-11.

Personal Income Tax on the E-Ticket Refunds to Employees on Business Trips

Individual Tax Consultation dated 9 October 2017  No. 2183/6/99-99-14-05-01-15/IPK of the State Fiscal Service of Ukraine states that since passenger and luggage e-tickets for air, automobile, sea and river transportation have not been approved on the regulatory level, they cannot be considered as payment documents as interpreted by the Law of Ukraine “On the Application of Cash Payment Registers in Retail, Food and Public Services.” 

However, the Explication by the State Fiscal Service of Ukraine dated 17 October 2017 uploaded to the General Access Information Resource ZIR (category 103.17) states that if the employee who requests refund of an airline e-ticket supported with a boarding pass does not submit to the employer a document proving the total cost of such expenses, the refund of such expenses is included in the general monthly (annual) taxable income of this employee as an additional income and an 18-per-cent personal income tax is applied.

Including Non-Refundable Financial Aid When Calculating the Cost Criterion of CTs

Individual Tax Consultation of the State Fiscal Service of Ukraine dated 22 June 2017 No. 768/6/99-99-15-02-02-15/IPK states that the amount of given (received) non-refundable financial aid is included in the calculation of the cost criterion of controlled transactions for the purposes of transfer pricing and is presented in the Controlled Transactions Statement under transaction code 034, Appendix 3 to the Procedure on the Reporting on Controlled Transactions approved by the Decree No.8 of the Ministry of Finance of Ukraine dated 18 January 2016.