The legislative act specifies the order of application of VAT and extends the cash method of defining the date of appearance of tax liabilities and tax credit regarding VAT for operations within provision of services on distribution of natural gas to households, budgetary institutions that are not registered as payers of the tax (amendments to Sub-unit 187.10, Article 187 of the Tax Code of Ukraine). The legislative act changes the order of calculation of actual sale price of natural gas with payment of the rent for use of subsoil for extraction of minerals and brings elements of the tax in kind of a special surcharge to the effective tariff of natural gas for consumers of all forms of property in compliance with provisions of the Law of Ukraine "On market of natural gas".
The Law is amended with a norm envisaging temporary introduction (until July 1, 2017) of the cash method of defining tax liabilities and tax credit on VAT for operations on supplies (including wholesale), transfer, distribution of electric and/or heat energy, supplies of coal and/or products of enriched coal and features of tax registration of such operations.
Sub-unit 3 of Unit 1 is also amended with new paragraphs of the following wording:
"45. Temporarily, until July 1, 2017, released from VAT shall be operations on supplies on the customs area of Ukraine of coal and/or products of enriched coal of commodity items 2701; 2702; 2703; 2704 of the Ukrainian Classification of Commodities of Foreign Economic Activities.
In case of application of the said benefit, norms of Unit 198.5, Article 198 of this Code shall be not applied in the part of commodities/services, fixed assets for the sum of VAT which was included in the tax credit in periods in question (taxation periods) preceding the period when the benefit begins to apply.
A taxpayer can refuse using the said benefit or suspend using it for one or several periods in question (taxation periods) following a respective statement. The statement, which shall include a list of commodity items from the Ukrainian Classification of Commodities of Foreign Economic Activities and the period for suspension of the benefit, shall be submitted to a regulatory body in the area of registration of the taxpayer.
Norms of this paragraph shall be applied from the first day of the period in question (taxation period) in which the statement will be submitted."
Respective draft law was registered under No. 3073.