KYIV. UkraineGate , 3 , June , 2022 | Political News.
Delays in the fulfillment of monetary obligations by counterparties and the need to cover catastrophic losses due to the war, forced businesses to take the initiative to expand the scope of definition of tax liabilities for value added tax by the cash method.
The People’s Deputy initiated an appeal to the Ministry of Finance to consider changes to the existing tax policy, which currently leads to an increase in debt.
Quote
We ask the Ministry of Finance of Ukraine, as the central executive body that ensures the formation and implementation of tax policy, no later than June 10, 2022, to express its position on the possibility of temporary application (until the end or abolition of martial law) “cash method” in taxation value added transactions for the supply of any goods or services.
At the same time, if, in the opinion of the Ministry of Finance of Ukraine, such an approach can be extended only to an exclusive list, please provide it, ”the letter from Hetmantsev reads.
Taxpayers justify the need for legislative changes by the fact that since the beginning of hostilities on the part of Russia, they have experienced a significant reduction in working capital not only due to delays in fulfilling monetary obligations by their counterparties, but also the need to cover catastrophic losses. war.
In this regard, many companies are beginning to form a technical tax debt, which they are objectively unable to repay on time, ie there is a crisis of default.
“In view of the above, the need to introduce temporary measures aimed at determining the tax liabilities of value added tax is not particularly relevant to the rule of the first event, namely the cash method,” – said in a letter Hetmantsev.
That is, today the accrual and payment of VAT occurs in the case of delivery of goods, even if the money for it is not paid. According to the proposed initiative, VAT will be paid only after payment for goods or services, ie companies will pay tax only after receiving the money.
Let’s add
The “cash method” for determining VAT tax liabilities is already provided for operations on supply, transmission, distribution of electricity, heat, coal, centralized water supply and sewerage services, and by January 1, 2024 this approach was extended to taxpayers. profit – producers of electricity at the “green” tariff.
Source: Ukrgate
