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  • Taxation of electronic services provided by non-residents
  • Financial leasing
  • Electronic Workbooks 
  • Electronic system of temporary disability certificates
  • E-passport 
  • Paid vacation related to childbirth for men
  • Retirement age for women 
  • Deregulation in the Sphere of Land Relations
  • Governmental support of viticulture, horticulture and hop growing
  • Reduced the VAT rate for the agricultural sector 
  • Bann of plastic bags 



  • Taxation of electronic services provided by non-residents

On June 3, was adopted the Law “On Amendments to the Tax Code of Ukraine regarding the abolition of taxation of income received by non-residents in the form of payments for the production and/or distribution of advertising and the improvement of the taxation procedure for value added tax transactions for the supply of electronic services by non-residents to individuals”(hereinafter – Law).

The Law is aimed to increase state budget revenues from VAT by attracting non-residents who provide electronic services to individuals, on the territory of Ukraine.

List of taxpayers under the Law:

  • a foreign company that provides electronic services in the Internet;
  • a representative office of a foreign company in Ukraine, which provides electronic services.

Electronic services due to the Law are services delivered via the Internet, automated, using information technology and mainly without human intervention, including by installing a special application or application on smartphones, tablets, television receivers or other digital devices. 

These services include but not exclusively:

  • supply of electronic copies, provision of access to images, texts and information, including, but not exclusively, a subscription to electronic newspapers, magazines, books, the provision of access and/or download of photos, graphics, video materials;
  • provision access to databases, including the usage of search engines;
  • supply of electronic copies (electronic digital information) and/or the provision of access to audiovisual works, video and audio works, games, including the supply of services for participation in such games, the provision of services for access to television programs (channels) or their packages, except for access to television programs simultaneously with their reception quality through the television network;
  • provision access to information, commercial, entertainment electronic resources and other similar resources, in particular, but not exclusively, posted on platforms for general access to information or video materials;
  • provision of distance learning services in the Internet, the conduct and provision of which does not require human participation, including the access to virtual classrooms, educational resources in which students complete assignments online, and grades are assigned automatically, without human participation (or with minimal participation);
  • provision of a cloud service in terms of the provision of computing resources, storage resources or electronic communications systems using cloud computing technologies;
  • supply of software and updates to it, including electronic copies, providing access to them, as well as remote maintenance of software and electronic equipment;
  • provision of advertising services on the Internet, mobile applications and other electronic resources, provision of advertising space, including by placing banner advertising messages on websites, web pages or web portals.

For the purposes of the above list, the following operations do not apply to electronic services:

  • delivery of goods/services, the order (booking) of which is carried out via the Internet, using mobile applications and other electronic resources, and the actual delivery is carried out without using the Internet (in particular, accommodation services, car rental, catering services for the supply of products, passenger transport services and other similar services);
  • supply of goods and/or other services, other than electronic services, which include electronic services, if the cost of electronic services is included in the total cost of such goods/services;
  • provision of distance learning services on the Internet, if the Internet is used exclusively as a means of communication between the teacher and student;
  • delivery of copies of works in the field of science, literature and art on tangible media;
  • provision of consulting services by e-mail;
  • provision of services for access to the Internet.



  • Financial leasing

Financial leasing From June 13, the Law of 04.02.21, No. 1201-IX “On Financial Leasing” (hereinafter – Law No. 1201) comes into force and the currently effective Law of 16.12.97, No. 723/97-ВР. 

The new Law No. 1201-IX “On Financial Leasing” coming in legal force from 13.06.2021 defines the general legal and organizational principles of financial leasing in Ukraine – in accordance with international legal standards in this area. State regulation and supervision of the financial leasing market is carried out by the National Bank. 

According to the Law, leasing is considered to be financial if all risks and rewards (benefits) for the use and ownership of the financial lease object are transferred to the lessee and at least one of the following conditions is met:

  • the financial lease object is transferred for a period during which at least 75% of its initial cost is amortized, and the lessee is obliged, on the basis of a financial lease agreement, or another agreement specified in a financial lease agreement, to acquire a financial lease object from the subsequent transfer of ownership from the lessor to the lessee for the price and on the terms stipulated by such a financial lease agreement or other agreement determined by the financial lease agreement;
  • the amount of lease payments at the time of the conclusion of the financial lease agreement is equal to or exceeds the initial cost of the financial lease object,
  • the book value of the financial leasing object at the time of expiry of the financial lease agreement provided for by such agreement is no more than 25% of the initial cost (price) of such financial leasing object as of the beginning of the financial lease agreement, etc.

The period for which the object of financial leasing is transferred to the lessee for possession and use cannot be less than a year. 

Cannot be objects of financial leasing: land plots and other natural objects. 

The new Law applies to relations that have arisen after the date of its entry into force. Relationships that arose based on financial leasing agreements concluded before the entry into force of this Law are regulated in accordance with the legislation that was in force until June 13, 2021. 



  • Electronic Workbooks 

On March 10, 2021, the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine Concerning the Accounting of Employee Employment in Electronic Form” of February 5, 2021 № 1217-IX was published. 

It shall enter into force three months after its publication – on 10.06.2021.

The law introduces electronic accounting of labor activity of employees in the State Register of Compulsory State Social Insurance.

Citizens will be able to receive information about their employment and insurance experience in the form of an electronic document through the Pension Fund web portal. This document will have the status of an official document and can be presented by citizens in the form of an extract if necessary.

At the same time, the electronic work book will create the possibility of automatic assignment of old-age pension through a personal electronic account on the web portal of electronic services of 

Pension Fund.

The transition to electronic workbooks will take 5 years.

During this transition period, both paper and electronic forms of labor accounting can be used.

At the request of the employee, the employer will be required to continue to record employment in paper form, but in this case, the paper employment record will be kept by the employee.

According to the clarifications to the Labor Code, the employer on the day of dismissal has:

  • issue a copy of the dismissal order (instruction) to the employee;
  • make all calculations with employee;
  • make appropriate dismissal records in the employee’s employment record book (at the employee’s request).



  • Electronic system of temporary disability certificates

A system of electronic register of medical certificates of temporary disability in electronic form will be implemented:

  • from 01.06.2021 – a transitional period during which health care institution that have the technical ability will already issue certificates on temporary disability in electronic form;
  • from 01.09.2021 – shall be implemented by all health care institutions.

The e-register works based on the State Register of Compulsory Social Insurance.

The information to e-register will come from five sources:

  1. Electronic health care system – on medical opinions.

    On their basis, a certificate of incapacity for work will be formed.

  1. The Social Insurance Fund will notify:
  • the results of the inspection of the validity of the issuance and extension of sick leaves to insured persons;
  • amounts of assistance on the basis of certificate of incapacity for work;
  • refusal to provide temporary disability benefits;
  • changes in the reason of disability and their grounds;
  • referral for treatment and (or) provision of rehabilitation care in the department of the sanatorium-resort institution after diseases and injuries directly from the hospital of the health care institution or rehabilitation institution, department, unit with indication of start and end dates of treatment (provision) rehabilitation care, date and number of the contract, the name of the sanatorium.
  1. Insurers will provide:
  • the amount of payment for the first five days of temporary incapacity for work and the amount of temporary incapacity benefit, accrued and paid on the basis of certificate of incapacity for work;
  • refusal to pay for the first five days of temporary incapacity for work and (or) providing the insured person with temporary incapacity for work assistance;
  • information/documents that the insured person has the status that gives the right to 100% sick leave compensation;
  • information/documents that the family members of the insured person have status of need of care or status of a victim of the Chernobyl disaster, disability.
  1. Guardianship and custody authorities shall provide information on the fact of adoption of a child by insured persons within two months from the date of child’s birth specified in the birth certificate.
  1. Centralized database on disability issues – will provide information on the establishment of the medical and social expert commission of the disability group (changes in the disability group, confirmation of the previously established disability group), failure to establish the disability group during the re-examination.

List of individuals who will be able to receive information from E-register:

  • the insured person – through the Pension Fund portal;
  • the insurer – through the Pension Fund portal. 

Insurer will receive information only for the period when the labor relationships with employee;

  • doctor – through the electronic health care system.



  • E-passport 

Was adopted the Law “On Amendments to the Law of Ukraine” On the Unified State Demographic Register and Documents Proving Citizenship of Ukraine, Identity or Special Status” dated 30.03.2021 № 1368-IX.

The law allows every Ukrainian to use digital documents:

  • when traveling by rail or plane within Ukraine;
  • during medical care or banking operations;
  • to receive administrative, hotel, telecommunication, library services and mail;
  • when purchasing goods in the store;
  • to confirm identity at the request of the police and law enforcement agencies.

E-passports are available in Diya system to Ukrainians who have an ID card or a biometric passport.

The law comes into force on August 23, 2021.



  • Paid vacation related to childbirth for men

Due to the passed Law “On Amendments to Certain Legislative Acts Concerning Ensuring Equal Opportunities for Mothers and Fathers to Care for a Child” on 15.05.2021 – vacation at the birth of a child lasting up to 14 days at the expense of the employer will be provided one of the following persons:

  • a husband whose wife has given birth to a child;
  • the child’s father, if he did not register marriage with the child’s mother, but who live together, have joint everyday life, have common rights and responsibilities;
  • grandparents, or other full-fledged parenting of the child, who actually looks after the child if the child’s mother (father) is a single mother (father).

The law as defines parental that vacation “for looking for child under reaching of 3 years old” could be taken by each of the child’s parents (mother and father).



  • Retirement age for women 

On April 1, 2021, the last stage of the revision of the rules of retirement by age took place in the case of the relevant length of work experience (Article 26 of the Law of Ukraine “On Compulsory State Pension Insurance” dated July 9, 2003 № 1058-IV).

Which means that women born after April 1, 1961, can receive an old-age pension only after they reach the age of 60 in 2021.

Thus, the retirement age for men and women has equalized and is 60 years.



  • Deregulation in the Sphere of Land Relations

Was passed the Law on Improving the System of Management and Deregulation in the Sphere of Land Relations (Bill № 2194).

Key points:

  • change of purpose of land plots that do not belong to state or communal property is carried out by the village, settlement, city council;
  • land management project for allotment of a land plot (except for state or communal land plots), the purpose of usage of which is changed, developed at the request of the land plot owner without the permission of the Council of Ministers of the Autonomous Republic of Crimea, executive body, local self-government body;
  • division, unification of the land plot in use is carried out with the consent of the land user, mortgagee. The authenticity of the signature on such consent is notarized. Land plots can be combined if they have the same purpose of usage. 

In case of division of the land plot, association of the land plots the formed land plots keep the purpose of usage;

  • agricultural land plots inherited by legal entities shall be alienated within one year if according to the Land Code of Ukraine legal entities cannot own cannot own such land plot;
  • the area of ​​land leased to a citizen for gardening may not exceed 0.6 hectares;
  • agricultural land plots of private property may be alienated only under contracts of sale, gift, lifetime maintenance, inheritance contract, mine, by contribution to the authorized (composed) capital or by foreclosure on them;
  • local governments resolve land disputes within the territory of territorial communities over the boundaries of land owned and used by citizens, restrictions on the usage of land and land easements, citizens’ compliance with the rules of good neighborliness, as well as disputes over the delimitation of districts in cities;
  • land management documentation is developed in electronic and paper forms in the form of a diagram, project, working design or technical documentation. Approved land management documentation is public and publicly available.



  • Governmental support of viticulture, horticulture and hop growing

The Resolution of the Cabinet of Ministers of Ukraine of March 18, 2020 № 279 approved the Procedure for the use of funds provided in the state budget for the development of viticulture, horticulture and hop growing.

Recipients of budget funds are:

  • business entities – legal entities, regardless of the organizational and legal form and form of ownership;
  • private entrepreneurs engaged in horticulture, viticulture and hop growing.

Support could be received in the amounts:

  • For the purchased planting material of fruit and berry crops, grapes and hops (after planting) in the amount of up to 80 percent of the cost (excluding VAT);
  • For the construction of wallpaper and installation of drip irrigation systems and the purchase of materials required for such work in the amount of up to 30 percent of the cost (excluding VAT).



Procedure of receiving support:

Step 1. 

Lay plantings and/or carry out work on the construction of wallpaper and installation of drip irrigation systems.

Step 2.

Prepare documents for receiving partial reimbursement:

  • application;
  • certificate, valid on the date of application, on the absence of arrears of payments, the control of which is entrusted to the supervisory authorities, in paper or electronic form;
  • certificate of opening a current account issued by the bank;
  • a written commitment to return budget funds to the state budget within a month in case the controlling bodies establish the fact of their illegal receipt and / or misuse;
  • documents certifying the right of ownership, use of land;
  • project documentation for the creation of vineyards of table varieties, fruit and berry plantations and hop gardens and approved by the Ministry of Economy project documentation for the creation of vineyards of technical varieties;
  • acts of plantation inventory according to the forms established by the Ministry of Economy;
  • act on the actual amount of work performed and costs in the form prescribed by the Ministry of Economy;
  • registers of costs of work together with certified copies of primary accounting documents.
  • certificates for planting material (in case of planting).
  • for domestic production – a certificate certifying the varietal qualities of planting material and a certificate certifying the marketable qualities of planting material;
  • for imported into the customs territory of Ukraine – phytosanitary certificate and certificate of the exporting country.

Step 3. 

Submit documents by October 01 of this year to the regional commission (Department of Agricultural Development and Irrigation).

Step 4. 

Receive budget funds on current accounts opened in the bank.

Shall be noted that partial reimbursement of the cost of planting material is carried out after the planting, and for the construction of wallpaper and installation of drip irrigation systems after the completion of installation work.



  • Reduced the VAT rate for the agricultural sector 

The relevant bill №3656 on amendments to the Tax Code on the VAT related to reducing of VAT rate on transactions for the supply of certain types of agricultural products in the second reading and approved.

The law sets the VAT rate at 14% for the supply and import of the following agricultural products to Ukraine: 

  • 0102 (cattle, live); 
  • 0103 (pigs, live); 
  • 0401 (for whole milk);
  •  1001 (wheat), 1002 (rye);
  •  1003 (barley);
  •  1004 (oats);
  •  1005 (corn);
  •  1201 (soybeans);
  •  1204 00 (flax seeds);
  •  1205 (feverfew seeds) and rapeseed);
  •  1206 00 (sunflower seeds);
  •  1207 (seeds and fruits of other oilseeds);
  •  1212 91 (sugar beets).



  • Bann of plastic bags 

Deputies adopted the Law “On Restrictions on the Circulation of Plastic Bags on the Territory of Ukraine”.

The law prohibits the distribution in retail, catering and service facilities:

  • ultra-thin plastic bags;
  • thin plastic bags;
  • oxo-decomposable plastic bags.

This prohibition does not apply to biodegradable plastic bags, as well as to ultra-thin plastic bags intended for packaging and/or transportation of fresh fish, meat and meat products, bulk products, ice and distributed in retail outlets as primary packaging.

Plastic bags that do not meet the requirements of this Law will be withdrawn from circulation.

The law prohibits the free distribution of plastic bags.

Violations of the law in the field of distribution of plastic bags will be fined.


This information is a general overview and is not prepared to be a legal, accounting or other guidance.
Feel free to contact us for the individual consultation.

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