Ukraine Has Approved Simplified VAT Reporting Forms for Non-Resident Electronic Service Providers

Since January 1, 2022, VAT reporting forms approved by the Ministry of Finance of Ukraine by Order No. 555 of October 21, 2021 “On Approval of Forms and Procedure for Completing and Submitting Simplified Value-Added Tax Reporting” are used.

The updated reporting was prepared in connection with the new VAT requirements for electronic services provided by non-residents. These requirements are established by Law № 1525-IX “On Amendments to the Tax Code of Ukraine on Abolition of Taxation of Income Received by Non-Residents in the Form of Payment for Production and/or Distribution of Advertising and Improvement of Value-Added Taxation of Electronic Services Provided by Non-Residents to Individuals”.

A non-resident is obliged to apply for registration as a taxpayer if, according to the results of the previous calendar year, the total amount from their transactions for the supply of electronic services to individuals in the customs territory of Ukraine exceeds the equivalent of UAH 1 million. Such application shall be submitted by March 31 inclusive of the relevant calendar year following the year in which such non-resident reached this amount.

Non-residents must file returns electronically within 40 days of the end of each quarterly tax period.

The tax is 20% of the tax base and is added to the cost of electronic services, except for transactions exempt from value-added tax. The tax base and the amount of tax are determined in foreign currency (euro or US dollar).

Data included in the simplified tax return contains:

1. a) name of a non-resident person registered as a taxpayer;
2. b) individual tax number of a non-resident person registered as a taxpayer;
3. c) reporting (tax) period for which a simplified tax return is filed;
4. d) contractual cost of providing electronic services, excluding tax;
5. e) amount of tax.

The Order contains the following documents:

? bilingual form of a simplified value-added tax return;

? form of clarifying the calculation of tax liabilities for value-added tax to the simplified tax return in connection with the correction of independently identified errors;

? procedure for filling in and submitting the simplified value-added tax return.

Sources:

Law No. 1525-IX

Order No. 555

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