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The State Tax Service explains how to pay VAT in case of transition to a single tax at a 2% income rate and new fuel taxes

Author
Valery Moiseev

After the imposition of martial law in Ukraine, some laws were passed and entered into force. They allow businesses to switch to a single tax at a 2% income rate, abolish the excise tax on oil products and reduce the VAT rate on them from 20% to 7%.

Such drastic changes have inevitably raised many questions and doubts among taxpayers. The State Tax Service has published a detailed explanation. The Page has summed it up.

Payment of excise duty on oil products:

  • it is explained which oil products are subjected to the VAT at 7% rate and zero excise tax;
  • it is explained how the tax loan is formed now and what to do with already formed loans;
  • peculiarities of VAT refund are determined;
  • payment transactions recorders (PTR) belonging to fuel retailers should be reprogrammed to indicate in the receipt that the VAT rate is 7%;
  • excise tax on fuel paid before March 17 is refundable (after this date, it equals zero). The amount of such excise tax in the price of fuel previously was: 1 liter of gasoline — 7.08 UAH, diesel fuel — 4.63 UAH, liquefied gas — 1.72 UAH.
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What will happen to VAT when switching to a single tax of 2% of income:

  • if the tax is paid at a 2% rate, then VAT is included in the single tax (as in the case of paying the single tax at a 5% rate);
  • for those who have chosen the 3d group of the single tax at a 2% rate, registration of a VAT payer is not canceled. After the end of martial law, the rules for charging and paying VAT for them will be restored automatically;
  • it is indicated how to draw up tax report for the first reporting period after the end of martial law;
  • a VAT payer has the right to use the amounts of VAT to be included in the tax loan on the date switching to the simplified system and some others (their list is annexed).
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