How to pay a fine for failure to submit a simplified VAT return by non-residents

For which bank details the fine is paid for failure to submit a simplified VAT return by non-residents registered as VAT payers and how is the line filled in the «Purpose of payment» details of the payment instruction?

The peculiarities of taxation of electronic services supplied by non-residents to individuals whose place of supply is located within the customs territory of Ukraine are set out in Article 208¹ of Section V of the Code.

The first paragraph of clause 208¹.10 of Article 208¹ of Section V of the Code stipulates that if a non-resident registered as a taxpayer in accordance with clause 208¹.2 of this Article, fails to submit a simplified tax return within the prescribed period, the central executive body implementing the state tax policy shall, within 30 calendar days after the expiration of the prescribed period, send to such non-resident a notice regarding the obligation to submit a simplified tax return and/or pay tax, as well as the amount of penalties for such violations, in accordance with the procedure provided for in Article 58¹ of Section II of the Code.

Penalties in case of violation of the deadlines for submition a simplified tax return and/or payment of tax are applied in accordance with Chapter 11 of Section II of the Code (second paragraph of clause 208¹.10 of Article 208¹ of Section V of the Code).

Failure to submit (unless a tax return is not submitted in accordance with paragraph 49.2 of Article 49 of Section II of the Code) or late submission by a taxpayer or other persons obliged to accrue and pay taxes and fees, tax returns (calculations), as well as other reports, the obligation to submit which to the controlling authorities is provided for by the Code, shall entail the imposition of a fine in the amounts specified in clause 120.1 of Article 120 of Section II of the Code.

The procedure for sending tax notices by the central executive body implementing the state tax policy to a non-resident registered as a VAT payer, if such non-resident, in particular, fails to submit a simplified tax return within the established time limit, is set out in clause 58¹.2of Article 58¹ of Section II of the Code.

The form of the tax notice to a non-resident and the calculation of the monetary obligation are established by the order of the Ministry of Finance of Ukraine dated 10.12.2021 No. 657, registered with the Ministry of Justice of Ukraine on 28.12.2021 under No. 1679/37301.

The details of the foreign currency account opened by the central executive body implementing the state policy in the field of treasury services for budgetary funds in the authorized bank to which the monetary obligation is paid are indicated in the tax notice sent electronically by the central executive body implementing the state tax policy to a non-resident registered as a VAT payer through a special portal solution for non-resident users providing electronic services, with simultaneous notification to the e-mail address of the non-resident specified by such non-resident when registering as a VAT payer in accordance with Article 208¹ of Section V of the Code within 30 calendar days after the expiry of the established deadlines, in particular for submission of a simplified tax return.

Should be noted that the State Treasury Service of Ukraine has opened an account in JSC Ukreximbank (an authorized bank) to receive revenues from non-residents.

Information on the details of the foreign currency account and the individual tax number of a non-resident registered as a taxpayer (hereinafter - the ITN) is available in the «Status of settlements with the budget» tab of the Cabinet of a non-resident VAT payer of a special portal solution from the date of entry in the register of VAT payers.

When a non-resident VAT payer pays a tax liability and/or a VAT liability, the ITN assigned by the State Tax Service must be indicated in line 72 «Sender Receiver information» of the payment document.