Gambling businesses can no longer use the simplified tax regime with a 2% rate, while the rules for registration of VAT invoices are relaxed

On 6 February 2023, the President of Ukraine signed the Law No. 2876-IX dated 12 January 2023 (the Draft Law on Amending the Subsection 8 of Section XX of the Tax Code of Ukraine regarding the prohibition of gambling businesses to use the simplified tax regime No. 8079, further — the "Law"), which prohibits gambling businesses from using the simplified tax regime with a 2% rate and temporarily relaxes the rules for registering VAT invoices/Adjusting calculations to VAT invoices (the "VAT invoices"). We highlight the main changes below.

Changes regarding the simplified tax regime with a 2% rate

Business entities engaged in the organization, conducting of gambling, lotteries (except distribution of lotteries), bets (bookmaker bets, totalizer bets) can no longer use the simplified tax regime with a 2% rate.

Changes to the rules for registration of VAT invoices

• During martial law and within 6 months after of the end of martial law:

— the deadlines for registration of VAT invoices are extended:

At the same time, the deadlines for submitting a VAT return remain the same.

— reduced fines are applied for late registration of VAT invoices:

• Until the end of martial law:

— the tax authorities provide electronic services and accept electronic documents on business days from 8 a.m. to 8 p.m.;

— on the last day of the VAT invoice registration deadline, the operating day lasts from 0 to 24 hours;

— a receipt on the results of registration of the VAT invoice is sent to the taxpayer no later than the next business day.

The Law enters into force on the day following its publication.