The amount of VAT will be 20%.

What is the point

In an explanatory note, the authors of the bill cite the experience of Russia, where a similar taxation system has been in operation since 2017. Non-residents providing electronic services in the Russian Federation (digital content, data storage and processing, domain registration and hosting, etc.) must be registered by the tax authority and pay VAT.

“Among the technological giants, Apple Distribution International, Google Commerce, Microsoft Ireland, Netflix International B.V., Wargaming Group, Bloomberg, Alibaba, Booking.com, and others have been registered by the regulatory body. In total, 1,580 companies have been registered in the tax authorities since the tax was introduced. According to official figures, such companies (B2C) paid 9.4 billion rubles to the budget in 2017, 12 billion rubles – in 2018, and 12 billion rubles – in the first quarter of 2019. (70% of the amount is paid by the largest IT-companies).”

Meanwhile, in Ukraine, only companies that have a physical representation in the country pay taxes. Because of this, according to deputies, the budget does not receive huge amounts of taxes from electronic services that non-residents provide to Ukrainians remotely.

What is proposed in the bill

Such companies are offered to allow registration in tax authority online, as well as to pay taxes in foreign currency without registering tax invoices.

Complete list of offers:

• to define a list of electronic services;
• to include non-residents in the list of persons who are registered as payers of value-added tax;
• to establish the rules for determining the place of providing electronic services (B2C);
• to establish a form and determine the procedure for sending a tax notice to a non-resident and complaints about such a decision;
• to define a simplified procedure for registering a VAT payer for non-resident suppliers, which can be carried out remotely in electronic form on a specially developed web portal;
• to determine the rules for VAT tax accounting for non-residents providing electronic services to individuals whose delivery place is located in the customs territory of Ukraine;
• exemption from the obligation of non-residents to register tax invoices;
• to introduce the payment of a tax obligation for a non-resident in foreign currency.

The moratorium was canceled in exchange for the transfer of the controlling state agencies to a risk-oriented system of scheduled inspections. It also concerns the frequency of checks. According to the Minister of Economic Development and Trade of Ukraine Stepan Kubiv, businesses with a low degree of risk will be checked no more than once every five years, with a high risk – no more than once in every two years. You can familiarize yourself with the law on the liberalization of supervision on the Verkhovna Rada website.

You can learn about scheduled inspections in advance. The information about 110,000 inspections planned for 2019 and data from 26 of 33 inspection bodies is published on a specially launched portal inspections.gov.ua. The State Fiscal Service also formed a plan of documentary checks, right now in its schedule you can find 6,944 registered inspections. They cover about 5,000 business entities, 347 legal entities, 1,651 individuals.

Tax officers will visit companies with scheduled inspections if they fall under the following risk criteria:

• if they have the level of income tax payment below the level of pay in the relevant industry;
• if they have the level of VAT payment below the level of compensation for the related industry;
• if they declared a negative value of the object of taxation by income tax;
• if they have relationships with wanted counterparties, liquidated or went bankrupt;
• if they have differences on tax liabilities and tax credits.

The main number of inspections will be on taxpayers in the field of metallurgy, pharmaceuticals, retail and trade in fuel, as well as counterparties involved in the supply of goods, labor, and services.

Also, same as before, state bodies may conduct unscheduled inspections, but this will require the approval of the State Regulatory Service.

Preferential treatment provides for the abolition of payment of VAT (20% of the value of the car) and excise tax on the importation of an electric vehicle. The current exclusions for electric vehicles were valid until the end of 2018.

Earlier AIN.UA told about the first electric truck that Ukraine has created for Europe.