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All about taxes: VAT and Unified social tax


AUTOMATIC REFUND OF THE Value added tax (hereinafter - VAT)

On April 1, 2017 the Resolution of the Cabinet of Ministers of Ukraine No.189 under date of 29, 2017 named "Some issues of budgetary reimbursement of value added tax" came into force.

This resolution provides for the creation of the automatic VAT refund register. The entrepreneurs will receive a refund of agreed amounts of VAT in chronological order in accordance with the order of receipt of applications for the return of such amounts. It should be noted that there is a restriction of the monthly amount of budgetary compensation. Such restriction represents 2.8% of the total amount of compensation for the previous calendar month. With the advent of the automatic refund register entrepreneurs are able to monitor the status of their applications online. And now VAT will be refunded automatically within 30 days.

THE Unified social tax (hereinafter – UST) CALCULATION

The State Fiscal Service of Ukraine with its letter dated 03.03.2017 N 4496/6 / 99-95-42-02-15 explained the procedure for calculating UST for income that does not exceed the minimum-wage.

So, as is known, the basis for the UST calculating for employers is the amount of wages accrued by each person for types of payments that include basic and additional wages, other incentive and compensation payments, as well as the amount of remuneration to individuals for performing work under the civil law contracts. For those who work under civil law contracts at their main place of work, UST is accrued for the reporting month. Income includes both wages and remuneration. In cases where the deadline for performing work under a civil law contract exceeds a calendar month, the UST is accrued for the amount that is determined by dividing the minimum-wage by the number of months for which it is accrued. However, there are situations when such amount is less than the minimum-wage. In this case, UST is calculated as a product of minimum-wage and a UST rate of 22%.

It should be noted that in this case, the main place of work is the place of registration of the employment contract and the maintenance of the worker‘s work record book. A natural person who works under a civil law contract outside his main place of work pays the UST from his income. UST is calculated as a product of a rate of 22% and the fact of the amount of remuneration, regardless of its size. If the income of an individual in the form of remuneration under a civil law contract exceeds the size of an minimum-wage, then the accrual of UST is not applied.

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