Gov’t simplifies tax administration for business entities

From July 1, the procedure for applying increased rates of property tax and land tax, the suspension of tax benefits and preferences (an effective tax mechanism) in respect of empty buildings, unused production areas, non-residential structures, objects of construction in progress (unused objects), as well as land plots occupied by these objects will be canceled.

VAT administration will be simplified:

ꞏ for business entities that are compulsorily recognized as payers of value added tax, a certificate of special registration for VAT will be issued automatically without specifying the level of tax risk. At the same time, the tax authorities monitor the activities of business entities and the identification of cases of tax risk during monitoring will be the basis for suspending the certificate of special registration for value added tax;
ꞏ the validity of a certificate of special registration for value added tax of taxpayers with a high level of tax risk will be suspended after the tax authorities send a five-working-day notice of this, as well as in case of failure to eliminate deficiencies within the specified period (except for cases of non-compliance of the agreements (operations) being implemented) nomenclature of purchased and sold goods (services) or absence of the taxpayer at the state registration address).

Until March 1, 2023:

ꞏ financial sanctions will not applied for the reflection in invoices or checks of cash registers of identification codes that do not correspond to the range of goods (services) purchased or to the features and types of activities carried out;
ꞏ reflection of all operations related to the accounting (acquisition (construction), launch, revaluation, disposal) by business entities of fixed assets, intangible assets and inventory resources, as well as the formation and reduction of their authorized capital (authorized capital), in the information system of tax authorities E-aktiv will be voluntary.