Visiting Lecturer from Podilia State University Ukraine 2022 teaching tax management in wartime Ukraine Part 5

Every year, on February 1, the Ministry of Economic Development and Trade of Ukraine publishes on its official website a list of passenger cars that meet taxation criteria. This publication makes tax management in Ukraine open. Each party that has an obligation can estimate the amount of tax that needs to be announced to the government more clearly. This method continues until the current war situation in Ukraine. That is one of the reasons why tax management in Ukraine is relatively smooth, there has been a long war.


How is the implementation of the existing tax system in Ukraine under conditions? Academics from state universities in Ukraine have given very clear and interesting explanations in international seminars held by STEKOM University. The title of the presentation was "Local taxes: a system of calculation and payment under martial law in Ukraine". The academic name of the Ukrainian State University is Valentyna Borkovska. He has a PhD in Economics. Ms. Valentyna as Associate Professor of Educational and Scientific Institute in the department of Accounting, Business and finance, at Podilia State University.


This activity is part of the implementation of STEKOM University's commitment to increase various international activities in order to realize the vision to become an international-class university. Various international activities carried out by STEKOM University continue from year to year. There are sustainable international activities and there are also some unsustainable international activities. All kinds of international activities are accommodated and regulated by the International department of STEKOM University.


Mrs. Valentyna explained that the transport taxpayer in Ukraine has a provision of UAH 25,000 per year for each car subject to tax. This value is subject to change in accordance with policy changes submitted by the Ukrainian government through its official website every February 1. So, Ukrainian citizens should always check the government website at least every year to find out the latest tax assessments determined by the government every year, is there a change or not?


In Ms. Valentyna's explanation, the taxpayers of transportation tax in Ukraine are individuals and legal entities that have passenger cars registered in Ukraine in accordance with current legislation, which are subject to tax. All parties who meet these criteria are subject to an obligation by the state to pay taxes on time. If the taxpayer does not fulfill his tax obligations, he will be penalized by the state.


According to Ms. Valentyna's explanation, the object of the applicable transportation tax in Ukraine is a car no more than five years have passed since the year of graduation (inclusive); and cars whose average market value is more than 375 times the minimum wage (2.25 million UAH), established by law on January 1 of the reporting year. All tax objects that meet these criteria will be taxed by the Ukrainian state. As for the cars or means of transportation that are owned by Ukrainian citizens but do not comply with the provisions of the object of the transportation tax, they are not subject to tax.


The tax base in Ukraine is in accordance with Mrs. Valentyna's explanation, adjusted to the tax provisions that have been described previously. The basis of the tax imposition is a passenger car which is the object of tax imposition. So the Ukrainian people should pay attention to the objects of transportation, whether there are any provisions of the tax imposed. If in accordance with the provisions, then they are required to pay taxes.