Adoption of the budget and balance of its revenue part
The matter of amendments
The Verkhovna Rada (Parliament) adopted the Law of Ukraine “On the State Budget for 2019”, and, in addition to it, the Law “On Amendments to the Tax Code of Ukraine and Some Other Legislative Acts of Ukraine on Improving the Administration and Revision of the Rates of Some Taxes and Duties”.
Whom it will affect
Employers, self-employed persons, business entities that sell excise goods, etc
The adopted laws increase the amount of single social contribution (SSC), the rates of excise duty, rent, environmental tax, improve the system of control over alcohol turnover, as well as reduce the amount of “non-taxable” postal items.
How to prepare / mechanism of the amendments introduction
The Law of Ukraine “On the State Budget for 2019” increased the amount of minimum wage to 4,173 UAH, which entails an increase in minimum insurance premium up to 918.06 UAH.
Starting 1 July 2019, the limit value of non-taxable parcels from abroad will fall be decreased from 150 to 100 EUR. This change will not only increase the financial burden on persons receiving goods from abroad, but it can complicate things for telecommunication operators, since the obligation to pay VAT to the budget will be assigned directly to them. An exception will be the clearance of postal items in accordance with the documents established by the acts of the Universal Postal Union. In such a case, the payment to the budget of the tax accrued when importing the goods will be carried out by a recipient of the goods.
The legislator also decided to increase rent rates for use of iron ore to 8.8%, for extraction of oil deposited at depth down to and below 5,000 meters, up to 31% and 16%, respectively, and natural gas condensate that deposited at depth down to and below 5,000 meters to 31% and 16%, respectively.
For business entities that import aviation fuel to the customs territory of Ukraine, an increase rate 10 will be applied to their excise tax. It will only be possible to avoid the application of this increase rate by using a tax receipt and confirming the fact of the target use of fuel for the sale of aviation gasoline and fuel for jet engines to certain entities, in particular: business entities that supply aviation fuel according to the current certificate of compliance with the requirements of the aviation rules of Ukraine for performing ground service, aircraft manufacturers, customers who have effected the procurement to meet the needs of the state or a territorial community or enterprises, institutions and organizations of the state reserve system.