We offer a compilation of the 20 most important legal news for 2020 that will benefit businesses, regardless of their area of activity.
1. Increased taxes and fees
Traditionally, in the new year, indicators that affect taxation increase.
The minimum wage from January 1, 2020 will be 4723 UAH, the living wage for able-bodied persons — 2102 UAH. In view of this, the amount of the minimum contribution from the ESA in 2020 will be 1039.06 UAH.
The sole tax for entrepreneurs in the 1st group will be 210.2 UAH, together with the ECU — 1249.29 UAH per month. The sole tax for natural persons-entrepreneurs in the 2nd group will be 944.6 UAH, from the ESA — 1983.66 UAH per month. There is also a change in the amount of court fees that are tied to the subsistence level of able-bodied people.
2. New bank accounts
As of January 13, 2020, only IBAN international bank accounts have been used in Ukraine. Bank customer account numbers will be 29 characters and will meet the requirements of the IBAN standard used in Europe. Under these conditions, the old bills will no longer work, so we recommend that you check any details to avoid annoying mistakes.
3. In 2020, the business expects a number of audits
Here are the scales of inspections, namely the number of entities that will be audited during the year:
- State Service of Ukraine for Labor — 16 905
- Pension Fund of Ukraine — 1150
- State Service of Ukraine for Food Safety and Consumer Protection — 22 432
- State Environmental Inspection — 11 328
- State Emergency Service of Ukraine — 44 119
- The State Tax Service of Ukraine — 6147
- 4. Payment transaction registrars (PPOs)
Innovations in the field of PPO application will take effect in stages over the course of a year.
From April 19, 2020, you will be able to use PPOs instead of regular cash registers and issue checks electronically to buyers. The amount of fines for violations of PPO legislation will increase significantly.
From October 1, 2020, there will be an expansion of entrepreneurs who will be required to apply PPOs regardless of income. In addition to equipment and medicines, it will in particular include:
- online trading;
- trade in jewelry;
- tourist services;
- hotel services.
Cashback rules will be effective from the same date: buyers who have made purchases in excess of UAH 850 and have not received a fiscal check that meets all the requirements of PPO legislation will be able to receive their money back.
5. Incoterms 2020
On January 1, 2020, the new Incoterms 2020 Rules (Interpretation of International Trade Terms), which were published on September 10, 2019, came into force. The following changes occurred in the new basic conditions of product delivery:
- removed the term EXW (self-removal) from Incoterms rules;
- removed the term FAS (freely along the ship’s side);
- divided the term FCA (Franco Carrier) into two delivery bases: one for ground delivery and the other for offshore container shipments;
- changed the terms of delivery of FOB and CIF for container transportation;
- a new term in Incoterms 2020 — CNI (Cost and Insurance), which means that the seller has delivered when the insured product is located at the specified shipment port;
- the two new Incoterms 2020 rules are based on DDP delivery conditions — DTP and DPP.
6. New rules for the registration of geographical indications have been introduced
On January 1, a law to improve the legal protection of geographical indications comes into force. Legal protection is granted to a geographical indication which is wholly or partially homonymous with the geographical indication registered in Ukraine, subject to fair local and traditional use, and if such use excludes the possibility of confusing and misleading consumers as to the true origin of the goods.
Now mozzarella and cognac will disappear from the shelves, but Hutsul cheese and Ukrainian wines will appear.
7. The Council abolished the state monopoly on alcohol production
Since January 1, 2020, the Verkhovna Rada of Ukraine has been given the opportunity to produce alcohol of any form, subject to obtaining a license, and to introduce full liberalization of alcohol exports from Ukraine.
At the same time, for the protection of the domestic commodity producer, only enterprises authorized by the Cabinet of Ministers may import alcohol until January 1, 2022.
8. The lawyer’s monopoly is abolished
Despite long expectations, since January 1, the lawyer’s monopoly has not been implemented. It should be noted that it is partial, since at least in criminal cases, only a lawyer can represent the suspect / accused.
9. State lawyers were allowed to represent the firm in court
Continuing on the topic of abolition of the lawyer’s monopoly, one cannot but mention other legal consequences — state authorities and legal entities can again represent themselves in the courts on their own. These can be not only the heads, members of the executive bodies of the legal entity, but also other authorized persons in accordance with the law, statute, regulation, employment contract.