Penalties for non-timely registered VAT invoice were significantly reduced as the President of Ukraine Volodymyr Zelenskyy signed Law #466-ІХ “On Amendments to the Tax Code of Ukraine on Improvement of Tax Administration, Elimination of Technical and Logical Inconsistencies in Tax Legislation”.
Since January 1, 2017 Tax Code of Ukraine contained provision imposing significant fines on VAT payers for violation of VAT invoice registration deadline or its non-registration. In general, penalty rate reached up to 50% of VAT amount, specified in the invoice. Such policy caused additional tax and administrative burden on bona fide taxpayers.
And now signed Law #466-ІХ decreases penalties’ amount from previous maximum of 50% to 2% of supply amount (excluding VAT) but not exceeding UAH 1020 per violation. Business community welcomes the adoption of above mentioned Tax Code amendments, introduction of which would contribute to improvement of the tax policy in Ukraine.
