Which documents are the bases for determining costs of purchasing / acquisition of art and antiques, precious stones, jewelry in order to fill in Section VII of the one-time (special) voluntary declaration?
Press service of the State Tax Service of Ukraine , published 14 December 2021 at 11:38 Chapter: News
Sub-paragraph “c” Paragraph 4 Sub-section 94 Section XX “Transitional Provisions” of the Tax Code of Ukraine as of 02.12.2010 № 2755-VI with changes and amendments (hereinafter – TCU) stipulates that objects of the one-time (special) voluntary declaration are individual’s assets belonging to declarant on the ownership right (including the joint partial right or common joint ownership right) and are (accounted, in turnover, registered, etc.) on the territory of Ukraine and / or abroad as of the date of submission of the one-time (special) voluntary declaration (hereinafter – Declaration), particularly movable property, including other valuable movable property (art and antiques, precious metals, precious stones, jewelry, etc.).
Sub-paragraph 7.2 Paragraph 7 Sub-section 94 Section XX of the TCU stipulates that for declaration objects defined in Sub-paragraphs “b” – “g” of Paragraph 4 Sub-section 94 Section XX “Transitional provisions” of the TCU, the determination basis for accrual of levy for the one-time (special) voluntary declaration particularly is but not exclusively:
declarant’s expenditures for the purchase (acquisition) of declaration object;
cost determined on the basis of property rights and property evaluation, financial instruments and other assets. Evaluation of declaration object is carried out in compliance with laws of a country where such asset is located. Cost of assets, determined in foreign currency, is reflected in the one-time (special) voluntary declaration in UAH at the official exchange rate of national currency set by the National Bank of Ukraine (hereinafter – the NBU);
At the declarant’s discretion the basis for accrual of levy for the one-time (special) voluntary declaration may be independently determined by the declarant cost of declaration objects, which are (registered) on the territory of Ukraine for movable property (except for precious metals, vehicles and other self-propelled machines and mechanisms, works of art, precious stones (including organogenic formation) and products from them).
Declarant is obliged to document cost of declaration objects by attaching duly certified copies of documents confirming the cost declaration objects to Declaration, if such objects are (registered) outside Ukraine.
Herewith, Article 1 Chapter I of the Law of Ukraine as of 16.07.1999 № 996-XIV “On accounting and financial reporting in Ukraine” (hereinafter – Law № 996) states that primary document is a document that contains information about business operation.
Mandatory requisites that must have primary documents are provided for in Article 9 of the Law № 996.
At the same time, Paragraph 1.13 of Instruction on cashless settlements in Ukraine in national currency, approved by Resolution of Board of the National Bank of Ukraine as of 21.01.2004 № 22 with changes and amendments stipulates that the following types of payment instruments are used during settlement operations: memorial order, payment power of attorney, payment request-power of attorney, payment check, collection order (errand).
In addition, Order of the Ministry of Finance of Ukraine as of 21.01.2016 № 13 approved Regulations on the form and content of settlement documents.
As follows, the documentary evidence of costs incurred by individual for acquisition of other valuable movable property (art and antiques, precious metals, precious stones, jewelry, etc.), in order to complete Section VII “Movable property, excepting vehicles” of Declaration must be documents certifying settlement operations or valuation of these assets.
Legal basis and principles of state regulation of mining, production, use, storage of precious metals, precious stones and control over operations with them are determined by the Law of Ukraine as of 18.11.1997 № 637/97-ВР, according to Paragraph 2 Article 15 Chapter of which the examination of precious metals, products made of them, inserts of precious stones, museum objects containing precious metals and precious stones, prints of test marks and evaluation of precious metals, products made of them, inserts of precious stones is carried out by the central executive body implementing state policy in the state test control and state test control institutions in the manner prescribed by normative legal acts.
More information is in the “Knowledge Base” of public information and reference resource