Published 20 February 2017. Some rules have changed since; ask us for the current position.
Taxes will be collected through a single account. As Tetiana Sliuz, head of the State Treasury Service of Ukraine (Derzhavna kaznacheiska sluzhba), explained, the system will work in much the same way as automatic VAT refunds. Each taxpayer will have an account opened automatically, and the Treasury will credit their taxes automatically on the basis of their tax returns.
A step towards automation? Exactly. According to the head of the Treasury, this will save taxpayers a great deal of time and help them avoid fines from the tax authority for paying taxes into the wrong account.
Many accountants called the change a bad idea that will only confuse them.
“I think this will be working from 1 January 2018. It will not cover every tax: VAT stays as it is, so does excise duty, and it is not possible for personal income tax, or for the single social contribution,” added Tetiana Sliuz, head of the State Treasury.
She went on to say that the necessary amendments to the Tax Code have already been made, and all that remains is an order with adjustments from the Ministry of Finance and the State Fiscal Service of Ukraine (DFS). The core database for the next steps has already been built on the electronic VAT register. Implementation costs are small and the benefit is clear.
Key Solutions keeps its finger on the pulse.
Comments