Legislative news digest: LEGAL HOTLINE 10.11.2017

TEMPORARILY, ELECTRIC POWER PRODUCERS WILL NOT BE FINED

On November 09, 2017, the Law “On Amendments to the Tax Code of Ukraine Regarding Stabilisation of Settlements on the Wholesale Electricity Market of Ukraine” was adopted. It stipulates that temporarily, until July 1, 2018, no fines will be imposed (in terms of value added tax (VAT) and no penalty will be charged from electric power producers, which supply electricity to the state enterprise “Energorynok” and, as of January 1, 2016, had VAT arrears, including instalment and/or overdue debts.

The list of electric power producers, which will be subject to this provision, and the list of tax invoices drawn up by such electric power producers from July 1, 2015 and unregistered with the Unified Register of Tax Invoices have to be approved by the Cabinet of Ministers of Ukraine.

Herewith, the Law established a fine for breach of the time limit for tax invoice registration for 366 calendar days or more in the amount of 50% of the sum of VAT indicated in such tax invoices/settlement adjustments.

ACCESSION TO THE REGIONAL CONVENTION ON PAN-EURO-MEDITERRANEAN PREFERENTIAL RULES OF ORIGIN

Ukraine’s accession to the Convention should contribute to the creation of conditions for trade facilitation, increase domestic exports, and provide an opportunity to use the production potential of Ukraine by expanding the presence of domestic goods on markets of third countries with which the country has signed free trade agreements, namely, the EU member countries, Montenegro, Moldova, and Macedonia. It is also agreed to revise the rules of preferential origin of goods in the course of establishing free trade zones with Turkey and Israel.

THE COMMISSION FOR SECURITIES ACCEPTS DOCUMENTS WITHOUT SEALS

The decision of the National Commission on Securities and Stock Market (NCSSM) No. 656 of September 5, 2017, which entered into force on November 7, 2017, stipulates that audit firms and non-banking financial groups will no longer need to certify their documents with seals when submitting them to the NCSSM. It is also established that a seal is not an obligatory requisite for audit opinions submitted to the NCSSM.