The Restoration of Tax Audits, The Reform of Consumer Rights Protection

The Restoration of Tax Audits and the Cancellation of Benefits for Businesses is Expected from 1 August 2023: the Draft Law was Adopted in the First Reading

As reported by some officials, the Verkhovna Rada of Ukraine cannot cancel tax benefits and restore tax audits for businesses from 01.07.2023 due to technical reasons, so such regulations will enter into force from 01.07.2023.

Let us please remind you that the Verkhovna Rada approved the relevant Draft Law No. 8401 in the first reading on 29.05.2023.

In general, the Draft Law provides for the cancellation of a number of preferential norms of the Tax Code of Ukraine established during martial law, in particular:

  • the possibility for individual entrepreneurs and legal entities to be taxpayers of the uniform tax of III group with the application of the 2% uniform tax rate;
  • possibility for individual entrepreneurs – payers of the single tax of I and II groups – not to pay the single tax;
  • suspension of the terms established by the Tax Code.

In addition, the Draft Law provides for the restoration of:

  • documentary checks of businesses;
  • the application of fines for violation of tax legislation (in particular, fines for violation of the correctness of accrual, calculation, and payment of Unified social contribution, violation of the procedure for using registrars of settlement operations).

Let us please remind that the cancellation of a number of tax benefits introduced during the martial law is one of the conditions for the continuation of Ukraine’s cooperation with the IMF.

The Reform of Consumer Rights Protection: the Draft Law has been Adopted in the Second Reading

On 10.06.2023, the Verkhovna Rada of Ukraine adopted in the second reading a new Law “On the Protection of Consumer Rights” (Draft Law No. 6134).

The purpose of the Law is to adapt the consumer rights protection system in Ukraine to the principles and requirements of the EU.

Among other things, the Law provides for:

  • the effect of legislation on the protection of consumer rights in the field of food products;
  • rights and obligations of consumers in electronic commerce;
  • the obligation of the seller, when conducting electronic trade, to provide consumers with access to relevant information about the products and about the seller himself; the seller’s responsibility for not providing such information;
  • exemption of business entities from the obligation to create an exchange fund of goods;
  • the right of the consumer to replace the product with a similar one available at the business entity, if the repair of the product purchased by the consumer requires more than 14 calendar days;
  • introduction of the “verified seller” status, the acquisition of which is mandatory for all sellers; creation of an automated system of such verified sellers.

Currently, the Law is pending on to be sent to the President of Ukraine for signature.