1. Non-resident, who is subject to mandatory registration as a VAT payer, was registered as a VAT payer in Ukraine after March 31, 2022. Such registration was made during the reporting period. In this regard there are the following questions: (a) whether non-resident is required to declare and pay the VAT for a period from January 1, 2022 to March 31, 2022; (b) whether non-resident is required to declare and pay the VAT liability for a period from 31 March 2022 to the date on which the non-resident was actually registered as a VAT payer?
General rule is used to determine the first reporting period, stipulated by Sub-paragraph "a" of Paragraph 202.1 Article 202 of the Tax Code of Ukraine (further - Code), according to which, if an individual is registered as a taxpayer from a day other than the first day of the calendar period, the first reporting (tax) period is a period starting from the date of such registration and ending on the last day of the first full reporting period.
Operations that were carried out starting from the registration date of such non-resident as a VAT payer are subject to payment to the budget and reflection in tax declaration.
Non-resident is considered to be registered as a taxpayer from the date of entry of a record in Register of taxpayers in case of mandatory registration of an individual as a taxpayer or from the first day of the reporting (tax) period following expiration of 10 calendar days after submission of application for the taxpayer’s registration in case of voluntary registration to the central executive body that implements state tax policy (Paragraph 2081.2 Article 2081 of the Code).
Example. If the non-resident’s registration date as a VAT payer is May 10, 2022, the first reporting (tax) period for such individual will be the III quarter of 2022, which begins on May 10, 2022 and ends on September 30, 2022. The simplified VAT declaration must reflect provision of electronic services, provision of which was made in a period starting from May 10, 2022 and payment for which was made in a period from May 10, 2022 to September 30, 2022 (inclusively).
Provision of electronic services that were carried out before the non-resident’s registration date as a VAT payer (in this example before May 10, 2022), but payment of which was made after such registration, are not subject to the VAT and are not reflected in tax declaration.
At the same time, please be informed that non-resident carrying out provision of electronic services on the customs territory of Ukraine to individuals, including individuals-entrepreneurs, not registered as the VAT payers, without such non-resident’s registration as a VAT payer, according to Article 2081 of the Code, can be subject to the imposition of a fine in the amount of 30 times the minimum wage established by law on January 1 of the reporting (tax) year (Paragraph 117.5 Article 117 of the Code).
2. Non-resident ,who is subject to mandatory registration as a VAT payer in Ukraine, was registered as a VAT payer in Ukraine after January 1, 2022, however, such non-resident starting from January 1, 2022 increased the cost of electronic services by 20% provided on the territory of Ukraine. In this regard there are the following questions: (a) whether such a 20% surcharge to the cost of non-resident’s electronic services (for a period from January 1, 2022 to the date of actual non-resident’s registration as a VAT payer in Ukraine) is considered as a VAT within the meaning of the Tax Code of Ukraine; (b) whether non-resident is obliged to declare such a 20% surcharge to the cost of non-resident's electronic services (for a period from January 1, 2022 to the date of actual non-resident’s registration as a VAT payer in Ukraine) as a 20% VAT liabilities and to pay such obligations in Ukraine; (c) will answers to questions (a) and (b) change if non-resident indicated in invoices that such a 20% surcharge for services is Ukrainian VAT?
The VAT taxation base for operations involving provision of electronic services by non-resident – VAT payer is determined basing on the cost of such services. Tax amounts to 20% of the taxation base and is added to the cost of electronic services, except for operations exempted from the value added tax (Paragraph 208¹.6 Article 208¹ of the Code).
Date of occurrence of tax liabilities for operations involving provision of electronic services by non-resident registered as a taxpayer according to Paragraph 208¹.2 Article 208¹ of the Code is the last day of the reporting (tax) period in which payment for electronic services was made (Paragraph 208.5 Article 208¹ of the Code).
Provision of electronic services to individuals with provision place in the customs territory of Ukraine, which were carried out before the non-resident’s registration date as a VAT payer, but payment of which was made after such registration are not subject to the VAT and are not reflected in tax declaration.
3. Non-resident pays the VAT liabilities in Ukraine using own bank account abroad. In order to make payment by a foreign bank, such foreign bank requires payment requisites that are not specified in the taxpayer’s electronic cabinet (non-resident, VAT payer in Ukraine), in particular: SWIFT, address and name of the bank. Also, such foreign bank needs the specified information to be provided in an official form (for example, as a statement from the bank that will receive payment; a protected PDF file; invoice for payment (conditional account with "0" liabilities), etc.). In this regard there are the following questions: (a) is it possible, and if so, how, to obtain payment requisites of the VAT liabilities by non-resident in an official form; (b) whether it is possible in the taxpayer’s electronic cabinet to additionally provide SWIFT, address and name of the bank in payment requisites of the VAT liabilities; (c) is it possible to add additional functionality in the taxpayer’s electronic cabinet for generating/receiving payment requisites of the VAT liabilities by non-resident in an official form?
State Treasury Service opened a separate account at the JSC "Ukreximbank" for crediting receipts of the VAT amounts paid by non-residents.
Information about requisites of the currency account is available in the "State of settlements with the budget" tab of the Non-resident – VAT payer cabinet of a special portal solution from the date of entry of a record in Register of the VAT payers.
Along with this, tax authority, on August 15 and 25, 2022, through a special portal solution, sent information about requisites of the foreign currency account to the Non-resident – VAT payer cabinet and list of partner banks of the JSC "Ukreximbank" through which tax can be paid.
4. Non-resident decided to obtain support services/preparation of the VAT reporting from a third-party service provider or to change service provider. At the same time, the taxpayer's electronic cabinet is registered to the e-mail address of non-resident – VAT payer/previous service provider. In this regard there are the following questions: (a) how can the e-mail address, to which the taxpayer's electronic cabinet is registered, be changed; (b) is it necessary for non-resident to re-register as a VAT payer (provided that information, submitted during the non-resident’s registration as a VAT payer in Ukraine, does not change)?
In the non-resident’s registration application (re-registration, changes to accounting information) as a VAT payer, information is indicated, in particular, about the e-mail address of the non-resident’s representative, who has authority to communicate with tax authorities of Ukraine on any issues related to the non-resident’s performance of the VAT payer’s obligations in Ukraine.
Therefore, if it is necessary to change the non-resident’s account information, in particular, the e-mail address, it is necessary to submit application marked as "Taxpayer’s re-registration (changes to accounting information)".
5. Since the Tax Code of Ukraine does not provide for requirements for legalization (apostille) of documents that are: (a) provided/uploaded in the taxpayer's electronic cabinet during the non-resident’s registration as a VAT payer in Ukraine; and (b) sent by non-resident to tax authorities to confirm information provided during registration (including confirmation letter itself); as well as translation of such documents in Ukrainian with a notarization of such translation – do we understand correctly that there is no need for legalization (apostille) of such documents or their translation in Ukrainian with a notarization of such translation?
Yes, that's right. Apostille is provided only by non-residents who have permanent representative office on the territory of Ukraine.