The Ministry of Finance of Ukraine drafted and made public two orders that approve the form of an electronic request from the tax authority to a non-resident for general information on the supply of electronic services, the forms of tax notification to non-resident, and calculation of tax liabilities 

Two draft orders of the Ministry of Finance of Ukraine were published on the official web-portal of the State Tax Service, namely:

• Draft Order “On approval of the forms of electronic request from the tax authority to a non-resident for general information on the supply of electronic services to individuals in the customs territory of Ukraine, the cost of supplied services, and the terms of payment” (hereinafter, the Draft Order on Electronic Request), and
• Draft Order “On approval of the forms of tax notification to a non-resident and calculation of tax liabilities.”

A simplified VAT return is only subject to a special desk audit by the tax authority. During such audit, the tax authority may send a request for information to a non-resident registered as VAT payer via special Taxpayer’s Portal and e-mail. The Draft Order on Electronic Request establishes a standard form in which the following information is requested: the list of electronic services, the contract price of electronic services supply (excluding VAT), the amount of VAT, the date of payment for electronic services, the date of accrual of tax liability, and ,if necessary, the list of supporting documents that confirm the fact of electronic services supply by a non-resident and their payment.

Draft Order “On approval of the forms of tax notification to a non-resident and calculation of tax liabilities” contains standard forms for notification of a non-resident regarding its/his/her failure to submit/late submission of the simplified VAT return, failure to pay/late payment of VAT liabilities, the circumstances of the violation established during special desk audit, no registration as VAT payer, and calculation of penalties for the respective violation. Such tax notification should be sent electronically both via special Taxpayer’s Portal and to the non-resident’s e-mail address.

All forms are bilingual and available for review on the official web portal of the State Tax Service of Ukraine.

If approved, both orders will take effect on 01 January 2022, but not earlier than the day of their official publication.

Should you have any questions regarding this Tax Alert, please contact our experts at Tax and Legal Department.

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