The list of taxpayers who can switch to the simplified taxation system with the rate of 2% is extended, in particular, the transition to the simplified system is allowed for importers of cars and other vehicles.
Single taxpayers of the third group, applying the rate of 2%, are exempted from the obligation of:
- VAT accrual and payment on the following transactions:
- supply of goods, works, and services, the place of supply of which is located in the customs territory of Ukraine
- import of goods into the customs territory of Ukraine
- submission of VAT tax returns
Exemption from VAT does not apply to the import into the customs territory of Ukraine and their further supply of goods originating from the country recognized as the occupant state and/or recognized as the aggressor state.
For taxpayers registered as VAT payers for the period of application of the single tax at the rate of 2%, registration as a VAT payer is suspended. And the operations performed during this time are considered as not subject to VAT.
After the resumption of registration as a VAT payer, business entities (not later than the last day of the reporting period in which there was a resumption of registration) must accrue "adjusting" tax liabilities for VAT on goods, services, and non-current assets purchased, manufactured with VAT prior the transition to the simplified system and used/sold in non-taxable transactions when applying the single tax at a rate of 2%.
The tax (reporting) period for single taxpayers of the third group applying the 2% rate is a calendar month. The tax return shall be submitted to the controlling body within the terms established for the monthly tax period, except for some exceptions.
The amount of tax liability is payable within 10 calendar days following the last day of the relevant deadline for the monthly tax (reporting) period (except the certain cases: individual taxpayers and those who are required to determine the minimum tax liability binding of single taxpayers).
The tax base for such transactions is defined as:
- book (residual) value of non-current assets at the beginning of the reporting (tax) period during which non-taxable transactions are performed (in the absence of accounting for non-current assets - the usual price);
- based on the cost of purchase of goods and services.