An online meeting with agricultural producers, accountants and representatives of the State Tax Service and leading specialists was held under the support of the Ukrainian Agri Council and the USAID’s Agriculture Growing Rural Opportunities Activity (AGRO). The event is organized as a part of the Food Security Support Program for agricultural producers.

Tax legislation was explained to entrepreneurs. In particular, the main peculiarities of the temporary return of all fines for the failure to perform tax obligations; they told where to submit an application, the procedure and terms for obtaining a decision; the possibility or impossibility of performing tax obligations, etc. 

Tax Service Representatives answered business owners’ questions considering the specifics of their activities. They advised agricultural producers on the taxation of businesses located in occupied territories or war zones.

According to Olga Bohdanova, the adviser to the head of the UAC, the managing partner of Crowe Erfolg Ukraine, on May 27, 2022, the law of Ukraine 2260-IX came into force. In accordance with it all fines for failure to perform tax obligations must be returned.

Enterprises that cannot fulfill their financial obligations to the state due to the war are allowed not to register tax invoices and not to pay taxes. The law can be applied to natural persons, entrepreneurs and legal entities," the expert explained. 

Reasons for legal entities are:

• loss or damage of original documents.
• Inability to use or carry out documents.
• It is risky for the life to use or carry out documents.
• The possibility of leaking information about the amount and storage of fuel or ethanol.
• If the official cannot pay taxes due to mobilization or health issues.
• The enterprise is located in the war zone or in the occupation.
• Other circumstances of force majeure (force majeure circumstances, documented).

In case of at least one of the reason, the taxpayer may refuse to pay taxes. But for this you need to collect documents that confirm this fact. Official papers include documents made by Ukraine’s law enforcement bodies or the State Emergency Service employees during the inspection of the place, registers’ extracts, information reports about damaged property, etc.

Reminder: you can be fined for a late registered tax invoice. The delay period and fines - % of the amount of VAT from an unregistered tax invoice (1201.1 of the Tax Code):

• up to 15 days - 10%
• from 16 to 30 days - 20%
• from 31 to 60 days - 30%
• from 61 to 365 days - 40%
• from 366 days and more than 50%

Besides, a fine is charged for an unregistered tax invoice

Watch the video with detailed explanations at the link.