Construction companies in Ukraine, like any business entity, are subject to taxation. Taxation in construction
has certain features, but in the general case it is carried out according to the Tax Code of Ukraine. An exhaustive list of all taxes is set out in Article 9 and Article 10 of the Tax Code. But of the taxes listed there, the following are applied to the construction industry, first of all:
- construction income tax
- value added tax.
These taxes are national and go directly to the state budget.
Construction Tax Invoice
The tax invoice in the construction industry is drawn up on a general basis and is the main document of construction taxation
. When filling it, it is obligatory to take into account the peculiarities of the enterprise’s activity and the recommendations provided by the Ministry of Finance of Ukraine. The organization of construction can be implemented simultaneously on some sites and some construction sites, but the tax invoice is drawn up only by a legal entity, which is an individual number of the value added taxpayer. If construction UAS
has representatives who have the right to be legal entities, then when filling out tax invoices indication of the main organization.
It should be noted that in order to introduce modern methods of tax reporting tax invoice in construction
and its annexes are compiled in electronic form. To fulfill this condition, the business entity conducting the construction activity must obtain an electronic signature in advance and make a BIS Analysis
. The state language is used to fill in the tax invoice. When indicating the amounts of VAT in construction
, the indicators in hryvnias with kopecks are indicated, this applies to all columns where there are cost indicators. When filling in the header of the tax invoice records are made only with the use of numbers, entering letters or other symbols will be a mistake and such a tax invoice in construction will not be acceptance of the construction object
by the controlling body. Particular attention should be paid to the correct indication of the invoice number, in this matter it should be remembered that it consists of two parts. Construction taxation
must comply directly with these requirements. If some of the columns of the tax invoice are not filled in by the construction company, because they do not include this activity, zeros, dashes or other signs or symbols in such columns are not affixed. The construction tax invoice
must be drawn up for each case of providing services, or for each case of receipt of funds on the developer's account. In any case, construction taxation
must fully comply with the requirements of the Tax Code of Ukraine.
Construction income tax
Income tax is one of the main in the general system of state taxation. Exhaustive provisions on it are set out in Section III of the Tax Code of Ukraine. Construction companies, as economic entities, are payers of this tax. Construction income tax along with construction VAT
is one of the leading in the industry. Article 134 of the Tax Code of Ukraine defines the objects of taxation according to the specified tax. For construction companies, the main of these objects is the profit received during production activities. In addition, in some cases there is a need to pay this tax on income received under property insurance contracts under construction. Construction income tax
is determined by the state. According to Article 136 of the Tax Code of Ukraine, the basic income tax rate is 18%. In case of receiving income under the insurance contract, this rate is 3%. At the same time it should be noted some features of income taxation under insurance contracts. Thus, construction workers in the case of receiving payments under long-term life insurance contracts and health insurance contracts will be taxed at a rate of 0%, ie there will be no deductions from these payments. Construction taxation
applies primarily to businesses, but tax compliance is also mandatory for industry workers.