Upon receiving a directed notification, the Company voluntarily submitted revised tax returns (calculations) for personal income tax of tax agents and made an additional payment of personal income tax in the amount of over 24.00 thousand rubles.

     Inspection of the Ministry of Taxes and Levies for the Polotsk District

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1. Social tax deductions!

When calculating personal income tax from individuals, the taxpayer has the right to use social tax deductions.

Social tax deductions are provided to an individual in cases where they incur expenses related to:

- education in educational institutions of the Republic of Belarus when obtaining the first higher, secondary specialized or vocational-technical education;

- voluntary life and additional pension insurance, voluntary medical expense insurance;

- additional accumulative pension insurance.

The deduction is provided by the tax agent, which is the employee's primary place of work. The procedure for providing social tax deductions is established by Article 210 of the Tax Code of the Republic of Belarus.

Inspection of the Ministry of Taxes and Levies for the Polotsk District

2. Substitution of labor relations!

During the subsequent stage of the desk audit, the Inspection of the Ministry of Taxes and Levies for the Polotsk District established a scheme for minimizing tax liabilities.

Thus, with the aim of evading personal income tax, the Company entered into a formal civil law agreement with an individual entrepreneur, who was in fact an employee of the organization, i.e., the main purpose of concluding the agreement with the individual entrepreneur was to substitute labor relations with civil law relations.

Following the notification sent by the tax authority, the Company voluntarily fulfilled its obligations as a tax agent, and the amount of personal income tax payable was approximately 2.7 thousand rubles.

Inspection of the Ministry of Taxes and Levies of the Polotsk District

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1. Changes in VAT rates from 2026!

The 10% rate applies to the sale and import of:

- Quail products: meat, offal, ready-made products, meat (subparagraph 2.2 of paragraph 2 of Article 122 of the Tax Code);

- From 01.01.2026 to 31.12.2026 fresh apples (HS code 0508 10), produced (grown) in countries with which customs control is established (part 1 of paragraph 9 of Article 4 of Law No. 127-Z).

20% rate.

The possibility of applying a 20% VAT rate to VAT-exempt turnover has been excluded if the financing of the payment for their cost is carried out by the buyer using budget funds (subparagraph 9.1 of paragraph 9 of Article 122 of the Tax Code).

0% rate.

For the purpose of classifying transport and forwarding services as exported, subject to VAT at a 0% rate, empty railway rolling stock units and containers, including those loaded with cargo, are also considered cargo (subparagraph 2 of part 1 of Article 126 of the Tax Code).

Inspection of the Ministry of Taxes and Levies of the Polotsk District

2. Attention taxpayers!

From 01.01.2026, non-alcoholic energy drinks are recognized as excisable goods (subparagraph 1.18 of paragraph 1 of Article 150 of the Tax Code).

When classifying non-alcoholic energy drinks as excisable goods, the following must be taken into account:

- The name of the product;

- Its functional purpose;

- Its EAEU HS code;

- the presence in the drink of tonic substances (components) that have a tonic effect (caffeine, caffeine-containing plants (plant extracts), guarana, mate; medicinal plants (ginseng, rhaponticum carthamoides, rhodiola rosea, schisandra, eleutherococcus) and their extracts).

The excise tax rate is set at 0.50 rubles per 1 liter of finished product (para. 9 of Annex 1 to the Tax Code).

Excise taxes are calculated on non-alcoholic energy drinks:

- imported into the territory of the Republic of Belarus from 01.01.2026;

- shipped by their manufacturers in the territory of the Republic of Belarus from 01.01.2026.

MNS Inspection for Polotsk District

3. On facts of "envelope" wage payments!

 

1. Execution of administrative procedures by tax authorities through the Unified Portal of Electronic Services (EPES)!

From 01.01.2026, all administrative procedures performed by tax authorities have been transferred to an electronic format on the unified portal of electronic services (EPES).

The most common administrative procedures for business entities are:

- "Execution of offset of overpaid (recovered) amounts of taxes, fees (duties), penalties", service code - 548.1.1.1;

- "Obtaining a decision on the refund of the difference between the amount of tax deductions and the total amount of value added tax calculated on the sale of goods (works, services), property rights", service code - 548.1.1.8.

In the taxpayer's personal account on the MNS portal, the ability to submit applications for the execution of administrative procedures is retained only for:

- individual entrepreneurs using a mobile digital signature;

- branches fulfilling the tax obligations of legal entities, which are registered with the tax authorities in accordance with para. 7 of Art. 69 of the Tax Code.

MNS Inspection for Polotsk District

2. Live wisely, work honestly!

The Ministry of Taxes and Levies Inspectorate for Polotsk District, upon reviewing a citizen's appeal, established the fact that UP "R", engaged in restaurant and hotel services, involved a physical person in labor activities without formal employment or civil law contracts and paid him "envelope" wages in the amount of approximately 1.3 thousand rubles.

In accordance with paragraph 8 of Article 73 of the Tax Code, a notification was sent to the taxpayer, based on which they voluntarily submitted revised tax declarations (calculations) for personal income tax as a tax agent and made an additional payment of personal income tax in the amount of 0.3 thousand rubles.

The Ministry of Taxes and Levies Inspectorate for Polotsk District

1. Attention to trade entities selling malt beer!

By Resolution of the Council of Ministers of the Republic of Belarus dated 31.12.2025 No. 808 "On the application of a special restrictive measure," a ban has been established on the import into the territory of the Republic of Belarus and sale within the territory of the Republic of Belarus of malt beer included in the list determined in Annex 1 to the resolution.

Trade entities that own and (or) possess stocks of malt beer as of April 1, 2026, are required to:

- suspend wholesale and (or) retail trade of malt beer from April 1, 2026;

- by April 7, 2026, conduct an inventory of the accumulated stocks of malt beer and prepare an inventory list in two copies. The inventory list must allow for the identification of the goods, their quantity, the actual location of the goods (trade facility, warehouse, address), and other information. For the identification of goods, it is advisable to indicate the GTIN of the product.

- no later than five working days from the date of compilation of the inventory list (maximum deadline – April 13), submit two copies to the Ministry of Taxes and Levies Inspectorate at the place of registration;

- purchase special control marks from RUP "Publishing House "Belblankavyyd" and ensure the marking of malt beer stocks by May 31, 2026;

- sell the remnants of malt beer after they have been marked with special control marks;

- sell or use the remnants of malt beer in opened consumer packaging within 60 calendar days from the date of inventory, but not exceeding the established shelf life.

Storage of malt beer remnants is allowed:

- from the date of inventory until the date of submission of the inventory record to the Ministry of Taxes and Levies inspection - if an inventory record or its copy, certified by the trade entity, is available at the location of the malt beer remnants;

- after submitting the inventory record to the Ministry of Taxes and Levies inspection until the malt beer remnants are marked with special control marks - if an inventory record with a mark from the Ministry of Taxes and Levies inspection or its copy, certified by the trade entity, is available at the location of the malt beer remnants.

Ministry of Taxes and Levies Inspection for Polotsk District

2. Attention Business Entities!

From 01.05.2026, mandatory marking with identification means (IM) of juices and non-alcoholic beverages will be introduced in the Republic of Belarus. To determine whether a product is subject to IM marking, one must be guided by both the EAEU commodity code of the product and its name.

The list of goods subject to IM marking is established by appendix No. 2 to the resolution of the Council of Ministers of 29.07.2011 No. 1030 "On goods subject to marking" with amendments and additions.

Ministry of Taxes and Levies Inspection for Polotsk District

3. What citizen incomes are tax agents obliged to provide information about?

Tax agents provide information about incomes recognized as objects of taxation by income tax, taxed at various income tax rates, including information about benefits and amounts of income tax.

         Information is not provided for income that is not recognized as objects of taxation for personal income tax. In addition, tax legislation contains a list of incomes that are recognized as objects of taxation, but for which tax agents are exempt from providing information on income for 2025. Such a list of incomes is contained in the second part of paragraph 6 of Article 85 of the Tax Code of the Republic of Belarus.

MNS Inspectorate for Polotsk District

1. Attention to land lease payers!

From 01.01.2026, legal entities independently determine the amount of rent in the manner established by sub-paragraph 1.5 of paragraph 1 of Decree of the President of the Republic of Belarus No. 439 of 17.12.2025 "On rent for land plots in state ownership", which provides for the establishment of the rent amount equal to the land tax, determined in accordance with the norms of tax legislation, namely, as the product of the following indicators:

- the tax base of the land tax;

- the land tax rate, determined in accordance with Article 241 of the Tax Code, taking into account its increase (decrease) in accordance with the decisions of regional Councils of Deputies or, by their instruction, local Councils of Deputies of the basic territorial level and the Minsk City Council of Deputies;

- coefficients to land tax rates established in Article 241 of the Tax Code and the Regulation, taking into account the second part of paragraph 12¹ of Article 241 of the Tax Code.

Payment is made in the amount of the calculated annual rent or quarterly no later than the 22nd day of the second month of each quarter in the amount of one fourth of the calculated annual rent.

MNS Inspectorate for Polotsk District

 

2. Personal income tax on souvenirs and memorabilia, prizes, gifts!

In 2026, the Tax Code will include a provision regulating the payment of personal income tax on souvenir products awarded at events.

Thus, income in the form of souvenir and commemorative products, the cost of which does not exceed 259 rubles from each source within a calendar year, is not recognized as an object of taxation for income tax.

If the cost of souvenir products received from one organization exceeds 259 rubles, then only the excess amount is subject to income tax.

 

1. On the submission of information on the income of individuals for 2025!

We remind you that the information is provided by the tax agent regarding the income of individuals for 2025 by the deadline of April 1, 2026!

The information is submitted in electronic form to the tax authority at the place of registration of the tax agent (the Personal Account of the tax agent provides the ability to send information using a mobile EDS).

The Ministry of Taxes and Levies Inspectorate for the Polotsk District reminds you of the possibility of early submission of information on the income of individuals! Ministry of Taxes and Levies Inspectorate for the Polotsk District

 

Ministry of Taxes and Levies Inspectorate for the Polotsk District

3. Standard tax deductions in 2026!

In accordance with paragraph 1 of Article 209 of the Tax Code of the Republic of Belarus, the following sizes of standard tax deductions for 2026 are established:

• 216 rubles per month for income not exceeding 1308 rubles per month;
• 63 rubles per month for a child under 18 years of age and (or) each dependent;
• 120 rubles per month for parents with 2 or more children and (or) disabled children under 18 years of age, for single parents;
• 306 rubles per month for certain categories of citizens (disabled persons of groups I-II, disabled persons since childhood, etc.);
• 860 rubles per month for young specialists (employees).

Ministry of Taxes and Levies Inspectorate for the Polotsk District

 

1. Attention! Unified portal of electronic services

The Ministry of Taxes and Levies Inspectorate for the Polotsk District reminds that from 01.01.2026, an application from an interested party in electronic form for carrying out an administrative procedure must be submitted through the Unified Portal of Electronic Services (UPES).

Before the specified date, taxpayers must take measures to register and assign roles in the UPES Taxpayer Personal Account to organize the process of submitting electronic applications via the UPES.

Applications submitted after 01.01.2026 in violation of the above procedure will not be accepted by the tax authorities for consideration. Ministry of Taxes and Levies Inspectorate for the Polotsk District 2. Is the product subject to marking?

To find out whether a particular product is subject to marking, you can consult the list of goods approved by the Resolution of the Council of Ministers of the Republic of Belarus of 29.07.2011 No. 1030 "On Goods Subject to Marking", or use the application "ePASS.MoBILe".

Thus, when scanning the GTIN of the product (barcode) in the mobile application "ePASS.MoBILe", information contained in the Bank of Electronic Passports of Goods is displayed, including information on the classification of the EAEU TN VED code of the scanned product within the list of goods subject to marking with unified control marks or identification means.

Ministry of Taxes and Levies Inspectorate for the Polotsk District

 

1. The Ministry of Taxes and Levies Inspectorate for the Polotsk District reminds that organizations wishing to switch to the Simplified Tax System must submit a notification of switching to the simplified system in the prescribed form to the tax authority at their place of registration from October 1 to December 31. Provided that the following criteria are met: the number of employees does not exceed 50 people, and the gross revenue on an accrual basis for nine months is no more than 2,625,000 Belarusian rubles.

The Ministry of Taxes and Duties portal features the "Book of Income and Expenses for Simplified Tax System Payers" service, which allows for online record-keeping in the book of income and expenses within the taxpayer's personal account on the Ministry of Taxes and Duties portal.

MNS Inspection for Polotsk District

 

1. Goods Traceability!

Food products, footwear, and household chemicals, as well as used goods (with the exception of domestic refrigerators and freezers, washing machines, and televisions), have been excluded from the list of goods whose turnover is subject to traceability.

The deadline for introducing traceability for household appliances has been postponed from October 1, 2025, to March 1, 2026, as well as the deadlines for submitting information about their balances - until 07/01/2026, but no later than the start of the turnover of such goods.

MNS Inspection for Polotsk District

1. Changes in Goods Marking!

The deadline for marking non-alcoholic beverages and juices with identification means has been postponed from October 1, 2025, to May 1, 2026. Used mobile phones and laptops have been excluded from the list of goods subject to marking with identification means.

Business entities have the right until March 1, 2029, regarding goods subject to marking with identification means, sold in rural areas or in retail outlets with a retail space of less than 200 square meters, not to ensure:

- differentiated accounting;

- reading of marking codes by cash registers;

- transmission of information about the sale of marked goods to the cash register control system.

MNS Inspection for Polotsk District

 

1. Attention Business Entities!

The Ministry of Taxes and Levies Inspectorate for the Polotsk District reminds payers of value added tax (hereinafter referred to as VAT) who have unreasonably applied a VAT rate of zero (0) percent in respect of turnover from the sale of services for international road freight transportation through the territory of the Republic of Belarus to the territory (from the territory) of another state, rendered from April 16, 2022 to December 31, 2024 (inclusive) in that part of the specified route which begins and ends on the territory of the Republic of Belarus, of the need to:

- no later than October 1, 2025, submit tax declarations (calculations) for taxes and levies with amendments and (or) additions to the tax authorities;

- no later than October 20, 2025, pay taxes, levies, and other payments. In this case, penalties will not be accrued.

Ministry of Taxes and Levies Inspectorate for the Polotsk District

2. About the start of issuing marking codes!

From August 1, 2025, the operator of the state information system for marking goods with unified control marks or identification means, RUP "Publishing House "Belblankavyyd", has ensured the possibility of obtaining Belarusian-style identification means for application to non-alcoholic beverages and juices, as well as mobile phones, laptops (tablets).

! Access to the marking system functionality for transmitting information, including that received from August 1 to September 30, 2025, for the purpose of recognizing such goods as marked, will be provided from October 1, 2025.

Ministry of Taxes and Levies Inspectorate for the Polotsk District

1. Attention to business entities!

In order to adapt business entities to the new conditions of conducting trade activities under new rules, work on organizing differentiated accounting of goods marked with identification means can be carried out in test mode, which will last until November 1, 2025.

Within the test period, trade entities are required to work on eliminating errors identified in the handling of marked goods, optimizing their business processes for receiving and selling marked goods, training personnel, and informing customers about the specifics of selling and purchasing goods marked with identification means.

To prevent the suspension of operations of trade facilities and ensure the supply of food products and essential goods to the population, tax authorities will not apply administrative liability measures for identified violations of the legislation on differentiated accounting (except in cases where such violations indicate the concealment of revenue from taxation).

Detailed information is available on the website of the Ministry of Taxes and Levies: https://nalog.gov.by/news/31465/

Inspection of the Ministry of Taxes and Levies for the Polotsk District

2. Attention Business Entities!

Starting January 1, 2026, the marking of brewing products with identification means will be introduced in the Republic of Kazakhstan.

Currently, information interaction between RUP "Publishing House "Belblankavyyd" and the marking system operator of the Republic of Kazakhstan, JSC "Kazakhtelecom," regarding the obtaining of Kazakhstani standard marking codes has not been established.

For unimpeded supplies of brewing products from the Republic of Belarus to the Republic of Kazakhstan from 01.01.2026, Belarusian business entities are advised to contact their counterparties in the Republic of Kazakhstan to obtain Kazakhstani standard marking codes.

A list of brewing products subject to marking with identification means in the Republic of Kazakhstan from 01.01.2026 can be found on the website of the Ministry of Taxes and Levies: https://nalog.gov.by/news/31558/

Inspection of the Ministry of Taxes and Levies for the Polotsk District

 

Attention Business Entities!

From 01.07.2025, the requirement to read information contained in unified control marks, which currently mark most goods, including everyday items (vegetable oil, coffee, tea, soft drinks, etc.), on cash registers will be abolished. The requirement to maintain differentiated accounting for goods marked with unified control marks will also be abolished. The requirement to transmit information on the sale of such goods to the SKKO will also be abolished.

For goods subject to marking with identification means (dairy products, footwear, tires, and certain light industry goods – outerwear, table linen, bedding, and kitchen linen), the obligation to scan the identification means and transmit information to the SKKO remains. Since most models of new cash register equipment support the function of extracting the GTIN barcode from the identification means, when selling such goods, it will be sufficient to scan only the identification means, which will simplify the process of customer service, including at self-checkout counters.

Inspection of the Ministry of Taxes and Levies of the Polotsk District

 

Attention to business entities!

VAT payers in respect of the turnover from the sale of services for international road freight transportation through the territory of the Republic of Belarus to (from) another state, rendered from 16.04.2022 to 31.12.2024 (inclusive) in that part of the specified route which begins and ends on the territory of the Republic of Belarus, and who have unjustifiably applied a VAT rate of zero (0) percent, are required to:

- submit tax declarations (calculations) for taxes and levies with amendments and (or) additions to the tax authorities no later than October 1, 2025;

- pay taxes, levies, and other payments no later than October 20, 2025.

 

Berry and mushroom picking!

1. For the information of business entities!

From 01.10.2025, non-alcoholic beverages, juices, mobile phones, and laptops will be subject to marking with identification means in accordance with the Resolution of the Council of Ministers of the Republic of Belarus of 29.07.2011 No. 1030 "On goods subject to marking".

For the purpose of early marking of the above-mentioned goods with identification means, the issuance of marking codes will be carried out by the operator of the state information system for marking goods with unified control marks or identification means, RUE "Publishing House "Belblankavyyd", from 01.08.2025.

Please note that until 01.10.2025, the circulation of non-alcoholic beverages, juices, mobile phones, and laptops is allowed only if they are marked with unified control marks.

Inspection of the Ministry of Taxes and Duties for the Polotsk District

 

1. On the use of cash register equipment that does not comply with new requirements from July 1, 2025!

The Ministry of Taxes and Duties draws attention to the fact that in accordance with the requirements of the fourth part of paragraph 17 and the fifth part of paragraph 25 of the Regulation on the use of cash register and other equipment when accepting payment instruments, approved by the Resolution of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus of 06.07.2011 No. 924/16

(as amended, effective from 01.07.2025, hereinafter referred to as Regulation No. 924/16), from July 1, 2025, the use of cash register equipment that does not comply with the requirements established by the Resolution of the Ministry of Taxes and Duties of the Republic of Belarus, the State Committee for Standardization of the Republic of Belarus of 14.10.2022 No. 29/99 "On requirements for cash registers, including those combined with taximeters, ticket printing machines" or the Resolution of the Ministry of Taxes and Duties of the Republic of Belarus of 29.03.2018 No. 10 "On requirements for a software cash register system, a software cash register, an operator of a software cash register system, and on the work of the commission for assessing compliance with the requirements" (as amended, effective from 01.07.2025) is not permitted.

Business entities that continue to use cash registers that do not comply with the new requirements after July 1, 2025, will be subject to administrative liability provided for by Part 1 of Article 13.15 of the Code of Administrative Offenses of the Republic of Belarus, which provides for a fine of up to fifty basic units, for an individual entrepreneur – up to one hundred basic units (4,200 rubles), and for a legal entity – up to two hundred basic units (8,400 rubles).

In view of the foregoing, we draw attention to the fact that the amount of the possible fine is not comparable to the cost of updating or purchasing new cash registers, and therefore we propose that business entities that have not carried out measures to update (replace) cash registers immediately take measures to comply with the requirements of Resolution No. 924/16 and purchase (replace) their cash registers as soon as possible.

For reference. As of May 26, 2025, 76 models (modifications) of cash registers that comply with the new requirements are approved for use in the Republic of Belarus, including:

46 models of cash registers, 30 of which support the sale of marked goods;

30 models of software cash registers, 29 of which support the sale of marked goods.

Up-to-date information on the modification and cost of cash registers is posted on the official website of the Ministry of Taxes and Duties at the link https://nalog.gov.by/tax_control/payment_control/documents/.

We also inform you that since July 1, 2025, the use of cash registers that do not comply with the new requirements will be outside the legal framework, the Ministry of Taxes and Duties may consider the issue of remote blocking of such cash registers and their disconnection from the cash register control system after the specified date.

Given that as of May 26, 2025, 94.6 thousand business entities have already installed and are using cash registers, the deadlines for transitioning to cash registers that comply with the new requirements will not be postponed!

Inspection of the Ministry of Taxes and Levies of the Polotsk District

 

1. On the submission of applications by business entities for the performance of administrative procedures to the tax authority in electronic form!

From 01.01.2026, applications for the performance of administrative procedures submitted only through the unified portal of electronic services (hereinafter referred to as the UPEU) will be accepted for consideration by the tax authorities.

Until this date, it is planned to gradually cease the use of the functionalities of the Automated Workstation "Taxpayer" and the Taxpayer's Personal Account for creating and submitting applications from taxpayers for the performance of administrative procedures to the Ministry of Taxes and Levies portal.

During the transition period, taxpayers must take measures to register and assign roles in the Taxpayer's Personal Electronic Account on the UPEU (https://account.gov.by), which will enable the process of submitting electronic applications through the UPEU.

In the Automated Workstation "Taxpayer" and the Taxpayer's Personal Account, the ability to submit applications for the performance of administrative procedures will be retained only for:

- Individual entrepreneurs using a mobile digital signature;

- Branches fulfilling the tax obligations of legal entities registered with the tax authorities in accordance with paragraph 7 of Article 70 of the Tax Code of the Republic of Belarus.

 

2. Attention to cash register users!

The replacement of cash registers is in the final stage. In order to ensure the high-quality operation of trade (service) facilities, as well as to prevent possible errors in working with new cash registers, the Inspection of the Ministry of Taxes and Levies of the Polotsk District recommends familiarizing yourself with the answers to questions received from cash register users.

Answers to frequently asked questions about the use of cash registers are posted in the relevant section on the official website of the Ministry of Taxes and Duties (https://nalog.gov.by/actual/otvety_na_voprosy_kassy/).

 

1. Marking

2. Traceability

1. Attention to TAXI DRIVERS

Tax authorities draw the attention of DRIVERS, who directly provide services in the field of passenger transportation by taxi, to the obligation to comply with the procedure for accepting payment instruments when providing services.

In accordance with paragraph 164 of the Rules for road passenger transportation, approved by the Resolution of the Council of Ministers of the Republic of Belarus of June 30, 2008 No. 972 "On Certain Issues of Road Passenger Transportation" and paragraph 4 of the Regulations on the use of cash registers and other equipment when accepting payment instruments, approved by the Resolution of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus of July 6, 2011 No. 924/16, upon completion of the trip, a PAYMENT DOCUMENT (hereinafter referred to as a RECEIPT) is ISSUED to the taxi passenger.

For violation of the procedure for accepting payment instruments, the guilty person shall be brought to administrative responsibility under Article 13.14 of the Code of Administrative Offenses of the Republic of Belarus in the form of a fine of up to thirty basic units.

In this regard, in case of acceptance of cash from a passenger without using a cash register, administrative responsibility is incurred primarily by YOU – DRIVERS! Furthermore, repeated (two or more times within 12 consecutive months) violation of the established procedure for accepting payment instruments is grounds for exclusion of the DRIVER from the "Register of road passenger transportation in irregular service" (hereinafter referred to as the Register).

At the same time, in accordance with paragraph 10 of part 1 of Article 28 of the Law of the Republic of Belarus of 14.08.2007 No. 278-Z "On Automobile Transport and Automobile Transportation", and paragraph 9 of point 169 of Rules No. 972, a passenger of a taxi is entitled to refuse to pay for the trip in case of provision of transportation services with a faulty, switched-off (blocked) taxi software cash register or a cash register combined with a taximeter (except for cases of performing automobile transportation of passengers by taxi, ordered and paid for through an electronic information system using only bank payment card details).

Thus, the passenger has the right NOT TO PAY for the trip in case of a malfunction of the cash register equipment, or when it is not turned on, and, consequently, there is no possibility of receiving a RECEIPT!

In addition, the automobile carrier, the vehicle, the vehicle driver, and the taxi dispatcher, in accordance with Decree of the President of the Republic of Belarus of 25.01.2024 No. 32 "On Automobile Transportation of Passengers", must be included in the Register (https://reestr.mtkrbti.by).

For carrying out transport activities without being included in the Register, administrative liability is applied to the guilty persons under part 3 of Article 13.3 of the Code of Administrative Offenses of the Republic of Belarus.

2. On the use of cash register equipment

Tax authorities remind that business entities must replace or update their cash register equipment by April 1, 2025! Legal entities and individual entrepreneurs who have not replaced or updated their cash register equipment must immediately contact the technical service centers for cash registers or software cash system operators.

Software cash system operators:

- RUP "Publishing House "Belblankavyyd"

- OOO "LightVelOrganization" (OOO "LVO")

- OOO "IEMLAB"

- OOO "Nastoiaschaya Tsifrovaya"

- LLC "Center of Software Innovations"

- RUE "Belorusneft"

Cash Register Manufacturers

- LLC "PROFISERVICE",

- LLC "Belschettekhnika",

- LLC "PRIBORSERVICE",

- LLC "Tusson",

- UP "Alternative Technologies",

- LLC "NTS"

Information on new models of cash equipment, their application areas, and their suppliers is posted (and updated) on the official website of the Ministry of Taxes and Duties in the section Tax Control/Control over the Acceptance of Payment Means and the Use of Cash and Other Equipment https://nalog.gov.by/tax_control/payment_control/.

For the use of cash equipment that does not comply with the new requirements from 01.07.2025, administrative responsibility will be applied in accordance with Article 13.15 of the Code of Administrative Offenses of the Republic of Belarus (a fine of up to 50 basic units, for an individual entrepreneur - up to 100 basic units, for a legal entity - up to 200 basic units).

1. On the submission of accounting policy to the tax authority in 2025.

The obligation to submit accounting policy applies to organizations that prepare financial statements in accordance with the legislation on accounting and reporting.

1) A currently operating organization, when making changes and additions to its accounting policy, submits these changes and additions to the tax authority no later than March 31, 2025. In this case, if changes and additions are made during the period from March 1, 2025, to December 31, 2025, these changes and additions should be submitted no later than 30 calendar days from the date of their approval.

2) A newly established organization in the current year submits its accounting policy to the tax authority no later than 30 calendar days from the date of its state registration.

3) An organization that applied the simplified tax system without maintaining accounting records and began to maintain accounting records submits its accounting policy no later than the last day of the month from which it began to maintain accounting records.

4) A foreign organization that has opened a branch or carries out activities through a permanent establishment shall submit its accounting policy no later than 30 calendar days from the date of registration or update of registration information (if it has not been provided before).

The following are exempt from submitting an accounting policy:

- budgetary organizations,

- non-profit organizations not engaged in entrepreneurial activities,

- the National Bank and its structural divisions,

- peasant (farmer) households that keep accounting records in the book of accounting for income and expenses of peasant (farmer) households;

- taxpayers undergoing liquidation (cessation of activities) or bankruptcy proceedings (except for rehabilitation),

- organizations that are payers of tax under the simplified tax system and do not keep accounting records (except for the case of a decision to recognize incoming amounts as incidental income in the manner prescribed by subparagraph 2.1.6 of paragraph 2 of Article 324 of the Tax Code).

 

2. Submission of information on income of individuals by tax agents

No later than April 1, 2025, tax agents (Belarusian organizations and individual entrepreneurs) are obliged to submit information on income paid to individuals to the tax authority.

Information **is not provided** regarding income that is not subject to personal income tax, as well as regarding:

- income (payments) to minor citizens of the Republic of Belarus, whose documents lack information about their identification number;

- income in the form of winnings (returned non-played bets);

- income related to state secrets, banking secrecy;

- income of individual entrepreneurs (except foreign ones), notaries from carrying out entrepreneurial, notarial activities;

- income paid for crop production grown by individuals (their relatives, in-laws) on a land plot located in the territory of the Republic of Belarus;

- income from the collection and sale to collectors of medicinal plant raw materials, wild berries, nuts and other fruits, mushrooms, other wild-growing products to organizations and (or) individual entrepreneurs engaged in industrial harvesting (procurement) of the specified products in the manner established by law;

- income from the sale of secondary raw materials (secondary polymer, textile and rubber materials, bone, scrap metal, waste paper, cullet);

- loans and credits issued to individuals who are individual entrepreneurs, notaries; commercial loans;

- loans issued by banks;

- microloans provided by organizations engaged in microfinance activities;

- loans under agreements concluded through an online lending service;

- all types of compensation provided for by law, except for: compensation for unused annual leave, severance pay in connection with the termination of an employment contract, and compensation subject to income tax paid in excess of established amounts;

- income from trade union organizations, associations of trade unions to their members (their close relatives) exempt from income tax;

- income from public associations to military personnel who are their members (their close relatives) exempt from income tax;

- income paid to members of election commissions;

- income paid in kind not at the place of main work (service, study) and exempt from income tax within the limit of 208 rubles;

- prizes and (or) gifts received in kind by winners, prize-winners, participants of district, regional, republican competitions, reviews, contests, fair festivals, projects and other similar events, exempt from income tax;

- income in the form of dividends in an amount not exceeding 40 rubles per year;

- income paid to close relatives of a deceased employee (serviceman, student) of the taxpayer, including those previously employed by them, as well as to employees (servicemen, students) of the taxpayer, including those previously employed by them, in connection with the death of close relatives;

- income in the form of the cost of vouchers, excluding tourist vouchers, to health and recreation organizations, paid fully or partially from the budget, the Social Protection Fund of the Republic of Belarus, as well as amounts of subsidies allocated for the reduction of voucher costs from the republican budget.

Information is submitted electronically (using an electronic digital signature) through the relevant section of the "Payer" Automated Workstation, the Payer's Personal Account, or a service that allows sending information filled out and signed with an electronic digital signature to the Ministry of Taxes and Duties portal. Non-profit organizations that do not carry out entrepreneurial activities, as well as taxpayers undergoing liquidation (bankruptcy) and not having an electronic digital signature, generate information using the "Payer" Automated Workstation and provide it on a USB flash drive to the tax authority at their place of registration.

 

3. In the territory of the Russian Federation, canned products, animal feed, and veterinary drugs are subject to marking.

 Business entities - residents of the Republic of Belarus, carrying out the export of such goods, are provided with the opportunity to obtain Russian-standard marking codes from the national operator of the marking system, RUE "Publishing House "Belblanсkavyid", for the marking of the specified product groups.

We also inform you that in accordance with clause 7.4.4 of the public agreement posted on the website of the operator of the state information system for marking goods with unified control marks or identification means RUP "BelblancaVyd Publishing House" (hereinafter - the marking system) on the Internet at https://datamark.by, payment for services for the provision and accounting of marking codes of the Russian sample is made by transferring funds by the customer (business entity of the Republic of Belarus) to the settlement account of RUP "BelblancaVyd Publishing House" no later than the 25th day of the month following the reporting period, based on the Act of rendered services, formed by the operator and sent to the customer within 5 calendar days after the end of each calendar (reporting) month.

4. In the Republic of Armenia, marking of non-alcoholic beverages and juices with identification means will be introduced from 01.04.2025

Since there is currently no possibility in the Republic of Belarus to obtain marking codes of the Armenian sample (due to the lack of information interaction between the operators of the Belarusian and Armenian marking systems), Belarusian suppliers of non-alcoholic beverages and juices are recommended to contact their counterparties in the Republic of Armenia in advance to obtain marking codes of the Armenian sample.

We remind you that in the Republic of Belarus, the circulation of non-alcoholic beverages and juices until 01.10.2025 is carried out using unified control marks. From 01.10.2025, these goods will be marked with identification means.

5. On ensuring the circulation of goods subject to marking and (or) traceability, including the possibility of their sale to end consumers under force majeure circumstances.

In the event of force majeure circumstances (natural and man-made emergencies), communication networks may become inoperable (experience disruptions), equipment may fail, technical personnel may be reduced or redeployed to perform other tasks related to ensuring the normal functioning of life support systems. In this regard, in order to ensure the organization of supply of basic food products and essential goods to citizens, the following are permitted:

- circulation of marked goods, as well as goods subject to traceability, using paper-based waybills and consignment notes,

- circulation of goods subject to marking with identification means or unified control marks, without applying the marking and in the absence of information about such goods in the marking system,

- acceptance of payment instruments for the sale of goods, including marked goods, without the use of cash registers (with the issuance of a receipt for cash received – if the cost of a unit of goods sold is one basic unit or more, with the issuance of a cash receipt at the end of the working day (or other period) – if the cost of a unit of goods sold is less than one basic unit)

6. Attention to taxpayers receiving income from sources in the Federal Republic of Germany, as well as those paying income to residents of this country!

From January 1, 2025, Germany will completely cease to apply all articles of the Agreement between the Republic of Belarus and the Federal Republic of Germany for the Avoidance of Double Taxation with Respect to Taxes on Income and Property dated September 30, 2005, including the provisions of its Protocol (following the notification of the suspension of the application by the Republic of Belarus of Articles 10, 11, and 13 of the said Agreement). In this regard, income received (paid) as a result of relations with the German side may be subject to double taxation.

7. To business entities that have tax arrears.

A taxpayer who has tax, fee (duty), penalty, and other budget arrears, as well as arrears of fines for administrative offenses in the field of entrepreneurial activity and against taxation, is obliged to ensure that proceeds from the sale of goods (works, services), property rights, as well as non-operating (other) income are credited to their current (settlement) bank accounts from the date such arrears arise until they are fully paid off. The specified requirement does not apply to arrears for which deferral (installment plan) has been granted.

Violation of this obligation entails administrative responsibility in the form of a fine of up to 50 basic units (Article 14.9 of the Code of Administrative Offenses).

8. On the sale by organizations of products manufactured by individuals engaged in independent professional activities.

Certain types of independent professional activities can be carried out by individuals only if the buyers of goods, works, and services are exclusively other individuals (consumers). In particular, this applies to:

- manufacturing and sale of costume jewelry, clothing decoration elements, wallets, gloves, belts, phone cases, wedding accessories, stained glass, soap, candles, flowers and compositions, including those made from local plant materials (except for compositions of fresh flowers), agricultural and garden tools, structures and accessories for keeping birds, animals, bees,

- sale of seeds and seedlings of flowers and ornamental plants, animals, self-made bakery and/or confectionery products, ready-made culinary products, as well as floriculture and ornamental plant products, provided that a certificate from local executive committees is available stating that they were produced by the seller (their close relatives) on plots allocated to them.

Individuals may sell goods produced within the scope of such activities to consumers at trading places, fairs, and/or other locations established by local executive and administrative bodies; in leased areas within retail facilities, shopping centers, and other facilities; using the global computer network Internet, as well as by entering into commission, agency, or other similar civil law agreements with legal entities for the purpose of selling these goods to consumers.

Thus, business entities have the right to sell products (goods, output) produced by individuals engaged in the specified activities, within the framework of intermediary agreements.

 

1. On submitting information about the balances of footwear marked under a simplified procedure to the traceability system

Although the deadlines for product traceability (including footwear) have been postponed from December 1, 2024, to October 1, 2025, care should be taken to correctly enter information into the traceability system.

Please note that when submitting information about the balances of footwear held by business entities as of the date of introduction of footwear marking by identification means (01.11.2021), it is possible to indicate the GTIN obtained under a simplified procedure for marking these balances.

Currently, taxpayers can familiarize themselves with the functionality of the "Product Traceability System" software complex (for submitting information on balances of traceable goods) in test mode. Access (if you have an electronic digital signature) is provided after sending the IP address from which the connection to the test personal account will be made to the address mns_support@nalog.gov.by, indicating the UNP and the taxpayer's name.

 

2. Attention to non-profit organizations not engaged in entrepreneurial activities!

For the tax (reporting) periods of 2024 and 2025, such organizations are granted the right to submit to the tax authority at their place of registration:

- tax declarations (calculations) on taxes (duties) in writing

- information from tax agents on income of individuals - in electronic form on a USB flash drive

 

Algorithm for the submission by organizations-taxpayers of tax declarations (calculations) on land tax from organizations, information, and notifications about land plots

 

1. From 01.11.2024, transport activities and activities of drivers in the field of road passenger transport in irregular traffic without including information in the Register of road passenger transport will be prohibited.

Road passenger transport in irregular traffic includes:

- road passenger transport by taxi cars,

- road passenger transport of a group of passengers pre-organized by the customer of road passenger transport in irregular traffic to their place of work, study, events, as well as in connection with a business trip and (or) back from such places,

- road transport carried out for the purpose of organizing tourist trips, including excursions, weddings, anniversaries and other celebrations, funeral ceremonies,

- road transport carried out for the purpose of transport services for state bodies (organizations) in cases provided for by law.

Business entities carrying out such transportation include information about vehicles (buses, cars, taxis), road carriers, drivers, and dispatchers in the Register.

Intra-republican road transportations for own needs (transportation of own employees to the workplace by a vehicle owned or leased by the economic entity without a crew, if such transportation is auxiliary to the main activities, and the vehicle is operated by the employees of the economic entity itself); transportation by special-purpose vehicles, operational vehicles, and special passenger cars can be carried out without inclusion in the Register.

2. Organizations shall submit notifications of land plots to the tax authorities no later than December 2, 2024.

Mandatory:

- on the transfer of capital structures (buildings, constructions), their parts (hereinafter – capital structures) located on land plots granted to budgetary organizations, into lease, other paid or gratuitous use;

- on land plots occupied by structural elements of overhead power lines with a voltage below 35 kilovolts, used by energy supply organizations that are part of "Belenergo";

- on land plots granted to organizations for the construction or construction and maintenance of capital structures, on which, after 3 years from the date of their provision or state registration of the transfer of rights to such land plot (change of the land plot's intended purpose), the last of the constructed facilities and (or) transmission devices has been put into operation;

- on land plots, parts of which have different functional uses (different valuation zones) and different tax rates;

- on service land plots granted to individuals by decision of district executive and administrative bodies;

- on land plots for industry, transport, communications, energy, defense, and other purposes, located outside settlements, granted from forest fund lands for the construction and maintenance of linear objects (gas pipelines, oil pipelines, overhead and cable power and communication lines, etc.).

Voluntary (optional):

- on land plots subject to land tax benefits;

- on the actual use of illegally occupied land plots;

- on land plots for which increased (decreased) land tax rates are established for organizations by decision of local Councils of Deputies;

- on land plots for which organizations have the right to apply coefficients that reduce the rate depending on the commissioning date of capital structures;

- on land plots with the intended purpose for construction or for the construction and maintenance of capital structures, on which the construction of new facilities is carried out after the state registration of all previously built capital structures on such plots.

3. In order to optimize the activities of small and medium-sized businesses and reduce their expenses related to the modification (replacement) of cash registers, the current procedure for using cash registers and other equipment when accepting payment means has been adjusted.

By Resolution of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus No. 704/22 dated 26.09.2024, amendments have been made to Resolution of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus No. 924/16 dated 06.07.2011:

1) Regulation of certain issues regarding the use of vending machines for the sale of goods, performance of work, and provision of services.

Resolution No. 704/22 has postponed the deadline for the obligation to use vending machines with installed (built-in) cash register equipment to 01.07.2026.

These changes will allow operators of software cash register systems and manufacturers of cash register equipment to concentrate their efforts on modifying cash register equipment to meet the requirements and submitting applications for testing modified and new models (modifications) of cash register equipment.

2) Improvement of the procedure for accepting payment means for urban road passenger transportation in regular service.

From 01.11.2025, legal entities and individual entrepreneurs engaged in urban passenger transportation by category M2 buses (regular route taxi services) will be subject to the obligation to use payment terminals.

The changes are aimed at increasing the share of cashless payments and expanding consumer options for using cashless payment methods (using bank payment cards or other payment instruments (e.g., QR codes)), while not excluding the possibility of settling for passenger transportation services in cash.

For reference. A payment terminal is a software or software and hardware tool used under a payment services agreement in accordance with the legislation on payment systems and payment services, intended for recording transactions when using bank payment cards and/or any other payment instrument(s), followed by the generation of a payment document.

3) Simplification of requirements regarding differentiated accounting of data on goods subject to commodity numbering and barcoding.

Prior to the amendments, legal entities and individual entrepreneurs selling goods subject to marking were required, from 01.07.2025, to ensure differentiated accounting of data on all goods sold, both those subject to and not subject to marking, regardless of the size of the retail outlet's trading area. With the new regulations, differentiated accounting will only be required for goods subject to marking. Furthermore, requirements for transmitting information on marking codes apply to the sale of goods subject to marking within the territory of the Republic of Belarus (whereas previously such requirements also applied to the sale of goods marked in accordance with the decisions of the Council of the Eurasian Economic Commission).

Comment on Resolution No. 704/22 published on 07.10.2024 on the official website of the Ministry of Taxes and Duties of the Republic of Belarus https://www.nalog.gov.by

4. Action plan for business entities to replace cash registers

 

1. Attention cash register users!!!

In the Republic of Belarus, 121.6 thousand business entities use 271.6 thousand units of cash registers that are subject to replacement (upgrade).

The replacement (upgrade) of the cash register fleet in the Republic of Belarus in accordance with the new requirements must be completed:

by January 1, 2025 - for business entities selling goods marked with unified control marks or identification means;

by April 1, 2025 - for business entities not selling goods marked with unified control marks or identification means.

As of 02.08.2024 in the Republic of Belarus: 3 models of cash registers and ticket printing machines have been approved for use, which can be used in services, transport and trade, but not for the sale of marked goods. These are cash registers from LLC "PROFISERVICE" (PS PBPM), LLC "Belschettekhnika" (BST-micro-F), LLC "PRIBORSERVICE" (OKA MK);

3 models of software cash registers have been approved for use, which can be used when selling marked goods. These are software cash registers located in the data processing centers of RUE "Publishing House "Belblankavyyd" (Online-kassa), LLC "LVO" (LIGHT KASSA BEL), LLC "AIMLAB" (IKASSA Dusik Cloud).

Currently, 6 more models of software cash registers that can be used for the sale of marked goods are undergoing evaluation.

The Association "Cash Registers, Computer Systems and Trade Equipment" informed that as of July 1, 2024, applicants continued to work on the refinement (development) of software for 25 models of cash registers to meet new requirements. For 13 models of cash registers, readiness ranges from 70% to 99%; for 1 model, the readiness of refinement is 50%; for 7 models, the readiness of refinement is from 10% to 30%; for 4 models, the software has not been refined for various reasons. The Association also announced the refusal to refine the following 10 models of cash registers:

POS terminal "PS-POS" (ECU version) with the application software package "PS Trade+" version 2.0 (applicant LLC "PROFISERVICE");

application software packages:

Pharmaservice/Retail, software version 6.0.9 (applicant LLC "TUSSON");

Reet:Front:Kassa software version 4.0 (applicant LLC "KKS");

POSitive:Cheek software version 2.9 (applicant LLC "KKS");

POSitive:Cash software version 2.9 (applicant LLC "KKS");

POS BW: Kassa software version 4.97 (applicant LLC "KKS");

likoFront software version 7.1 (applicant LLC "KKS"),

Thus, there are high risks of incomplete work and non-delivery of cash registers within the deadlines that would allow for normal replacement or update for users.

To avoid tension and negative consequences for users of cash register equipment, we recommend that users of cash registers, primarily those models that will not be refined, immediately contact the aforementioned operators of software-based cash register systems and switch to using software-based cash registers. This will allow you to replace your cash register equipment in a planned manner, avoid queues, and also avoid administrative liability.

We also invite all users of cash register equipment to contact the operators of software cash register systems (RUE "Belblankavyd Publishing House", LLC "LVO", LLC "IEMLAB", LLC "Nastoyashchaya Tsifrovaya", LLC "Center for Software Innovations"), manufacturers of cash registers (LLC "PROFISERV", LLC "Belschettekhnika", LLC "PRIBORSERVICE") to conclude agreements on the supply of cash register equipment and establish liability measures for their non-compliance, and to submit applications for the replacement (update) of software cash registers and cash registers. This is necessary for planning the work of operators of software cash register systems, manufacturers (applicants) of cash registers, technical service centers, RUE "Information and Publishing Center for Taxes and Duties", as well as for planning the work of your retail outlets and service facilities.

If you do not take the necessary measures to replace or update your cash register equipment today, tomorrow you will face a number of problems, including queues and long waits for technical service centers and software cash register operators, which will prevent you from updating your cash register equipment by the planned deadlines, namely January 1, 2025, and April 1, 2025.

From July 1, 2025, for the use of cash register equipment that does not comply with the new requirements, business entities will be subject to administrative liability for violation of the procedure for using cash register equipment (Article 13.15 of the Code of the Republic of Belarus on Administrative Offenses).

The deadlines for transitioning to new cash register equipment are set and will not be postponed!!!

2. Software Cash Register Operator - RUE "Belblankavyd Publishing House" is already READY today for business entities to connect the "Online-kassa 2.0" software cash register, which complies with the new legislative requirements.

The "Online-kassa 2.0" software cash register version, with regard to new legislative requirements, provides:

- compliance of cash documents with the format established by the Resolution of the Ministry of Taxes and Duties of the Republic of Belarus of March 29, 2018 No. 10 "On requirements for a software cash system, a software cash register, an operator of a software cash system, and on the work of the commission for assessing compliance with the requirements";

- sale of goods subject to marking with identification means and unified control marks in the territory of the Republic of Belarus;

- differentiated accounting of data on goods sold;

- the ability to perform a withdrawal operation to issue cash to holders of bank payment cards;

- user personal account;

- assistance in connecting and registering the cash register.

The "Online-kassa 2.0" software cash register operates in online mode, which allows for the elimination of additional physical media (flash tokens) for operator control tools, which, in turn, does not require their payment, excludes the possibility of accidental breakage or loss, changes or deletion of data, discrepancies in reports, etc. When working with the "Online-kassa 2.0" software cash register, information about the cash transaction is transmitted to the data processing center at the moment it is performed.

The presence of its own data processing center, located in a modern data center that meets all security requirements of TIER III level, ensures reliable and uninterrupted operation of the software cash system in 24/7/365 mode. Specialists provide comprehensive technical support to users of the software cash register and support partners at every stage of implementation. The proposed solution allows for a comprehensive approach to issues of data storage, processing and transmission, statistical and management reporting, tax calculation, sale of goods subject to marking, etc.

It is possible to integrate various software products via the data exchange protocol (API) of the software cash register system and the personal account API. We are ready to provide the API description for familiarization, so that users can check which business processes can be improved through integration with the Operator. The API description and access to the test zone are provided free of charge.

RUP "Belblankavyd Publishing House", acting as a service aggregator, also provides users of the "Online-kassa 2.0" software cash register with the opportunity to connect to the E-POS "CheckMe" service from OJSC "NKFO "Unified Settlement and Information Space", the advantage of which is an alternative method of cashless payment by QR code.

The Software Cash Register System Operator has established interaction with the following partners, who are major suppliers of a wide range of SMART POS "3-in-1" terminals: LLC "LANKARD", LLC "SaleServSolution", LLC "Exat-Bel", and OJSC "Bank Processing Center", on whose devices our ARMk - the mobile application "Electronic Check" successfully functions.

The work is organized on the SaaS principle, which provides for a single payment for access to the service with corresponding technical and informational support without any additional hidden fees.

The cost of the service is based on the selected tariff for one registered and connected software cash register per month:

- Tariff "Basic" - 12 (Twelve) rubles with VAT;

- Tariff "Extended" - 21 (Twenty-one) rubles with VAT.

The "Extended" tariff additionally provides services that allow for unambiguous determination of the need for product marking, the type of marking code, its legality, the formation of a reconciliation register of the number of cash documents for goods withdrawn from circulation, etc.

All current users of the software cash register version 1.0 will be transferred to the updated version of the "Online-kassa 2.0" software cash register by January 1, 2025, without the need to re-register the cash register equipment.

More information about the software cash register "Online-kassa 2.0" can be found in the attached presentation at the link http://gofile.me/61erP/HahFPgPCP and on the website www.4ek.by.

3. On the marking of goods with unified control marks and identification means (hereinafter – marking means) by manufacturers of marked goods (including dairy products).

As a general rule, for the correct introduction of marked goods into circulation, manufacturers must observe the sequence: first, the goods must be produced (packaged), then marking means are applied to them, then the relevant information no later than the date of shipment of goods from the places of production (packaging, storage) and before their sale is entered into the marking system.

The date of marking of goods, which corresponds to the date of entering information about the use of marking means, cannot be earlier than the date of their actual production. Otherwise, the circulation of such goods due to the introduction of unreliable information into the marking system will be carried out in violation of the procedure established by law, which entails administrative responsibility for all participants in the circulation (both manufacturers and subsequent sellers).

 

4. Value Added Tax (VAT) on the provision of services in electronic form.

Foreign organizations and individual entrepreneurs – residents of the EAEU member states, when providing services in electronic form to individuals of the Republic of Belarus (including Belarusian individual entrepreneurs), are obliged to register with the tax inspectorate of the Ministry of Taxes and Levies of Minsk as VAT payers. If a Belarusian individual entrepreneur purchases electronic services from a foreign business entity that has not registered in the Republic of Belarus, then VAT on such services must be paid by the Belarusian buyer until the seller registers. When purchasing such services by a Belarusian organization, the Belarusian organization is obliged to calculate and pay VAT, regardless of the foreign seller's tax registration status in the Republic of Belarus.

5. To avoid VAT calculation errors, do not forget to analyze data on the electronic invoice portal (ESChF).

In the "Preliminary Control" section, you can compare the data indicated in the ESChF with the tax accounting indicators entered into the VAT tax return (calculation).

In the "Transaction Monitoring" section, you can check the actual upload of issued outgoing and signed incoming ESChFs.

In the "Reports and Analytics" section, you can generate a detailed analysis of data from ESChFs, as well as view a general list of issued and received ESChFs for a specific period.

 

1. Changes in the field of product marking and traceability

A draft resolution "On Amendments to Resolutions of the Council of Ministers of the Republic of Belarus of 29.07.2011 No. 1030 and of 23.04.2021 No. 250" has been submitted to the Council of Ministers of the Republic of Belarus for consideration, which provides for the following:

From 01.12.2024, the following will be subject to traceability: dairy products, grocery products (tea, coffee, vegetable oil, flour, cereals, pasta), cookies, gingerbread, chocolate, footwear, complex household appliances (vacuum cleaners, irons, washing and dishwashing machines, kitchen food processors, microwave ovens, multicookers, hair dryers, electric kettles, drills, cooktops), laundry detergents.

From 01.02.2025, non-alcoholic beverages, juices, mobile phones, and laptops will be included in the list of goods subject to marking with identification means, and, accordingly, will be excluded from the list of goods subject to marking with unified control marks.

Business entities are obliged to use electronic consignment notes (ETN) when carrying out operations related to the circulation of goods:

- included in the EAEU list and (or) the list of goods subject to traceability (sub-paragraph 4 of paragraph 1 of Article 14 of the Regulations on the functioning of the goods traceability system, approved by Decree of the President of the Republic of Belarus of 29.12.2020 No. 496 "On Goods Traceability");

- subject to marking with identification means that do not contain counterfeit protection elements (means) or a protection mark (para. 3 of the Regulation on marking of goods with identification means, approved by Decree of the President of the Republic of Belarus of 10.06.2011 No. 243 "On marking of goods").

Based on the foregoing, business entities engaged in the production, acquisition and (or) sale of:

- dairy and grocery products, cookies, gingerbread, chocolate, footwear, complex household appliances, laundry detergents – it is necessary to organize work on the use of electronic waybills for the circulation of such goods and to maintain batch accounting in the context of each incoming document from 01.12.2024;

- non-alcoholic beverages and juices, mobile phones and laptops - to organize work on marking goods with identification means, including the use of electronic waybills for the circulation of goods marked with identification means that do not contain counterfeit protection elements or protection marks from 01.02.2025.

For reference. Recommendations for business entities engaged in the circulation of goods, for which a traceability mechanism is introduced from December 1, 2024, are posted on the official website of the Ministry of Taxes and Duties in the section "Traceability of Goods" at the address: https://nalo>g.gov.by/tax_control/control_ of_ goods/traceability/.

2. On the procedure for calculating and paying VAT on goods purchased for cash and imported into the territory of the Republic of Belarus from the territory of the Russian Federation.

When importing goods into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union (EAEU), business entities incur an obligation to calculate and pay VAT.

In this case, organizations, regardless of the tax system they use, are obliged to submit to the tax authority at their place of registration:

- declaration on the import of goods and payment of indirect taxes, with an attached document confirming the movement of goods from the territory of an EAEU member state to the territory of the Republic of Belarus,

- VAT tax return (calculation) for goods imported into the territory of the Republic of Belarus from the territory of EAEU member states.

Organizations are also required to create and submit an electronic invoice to the Ministry of Taxes and Duties portal.

Until 01.01.2024, a VAT tax return (calculation) was provided with the completion of Part II "Calculation of the VAT amount levied by tax authorities when importing goods into the territory of the Republic of Belarus". From 01.01.2024, the Calculation has been separated into an independent form of declaration.

Failure to submit (late submission) of the tax return (calculation), as well as non-payment (incomplete payment) of "import" VAT amounts, will result in the taxpayer being subject to administrative liability measures provided for by Articles 14.2 and 14.4 of the Code of Administrative Offenses, the amount of which varies depending on the delay period, the amount of unpaid tax, and recurrence.

3. On the application by business entities of benefits established by subparagraph 1.1-1 of paragraph 1 of the Decree of the President of the Republic of Belarus dated 22.09.2017 No. 345 "On the Development of Trade, Public Catering and Household Services" (hereinafter - the Decree).

From January 1, 2024, to December 31, 2028, all organizations engaged in retail trade (in retail outlets, at market stalls, at fairs), public catering (in public catering establishments), or providing household services in rural areas are entitled to apply exemption from property tax; land tax; rent for land plots in state ownership, and a 50% reduced profit tax rate. Similar tax benefits may be applied by micro-organizations providing household services and public catering services in small urban settlements.

The provisions of subparagraph 1.1-1 of the Decree apply to relations that arose from January 1, 2024.

The lists of settlements and territories of the Vitebsk region where tax benefits will apply have been determined by the decision of the Vitebsk Regional Council of Deputies dated 22.05.2024 No. 26, which comes into force on 01.07.2024.

Thus, in the Vitebsk region, subject to other conditions and requirements established by the Decree, business entities can exercise the right to apply benefits from 01.01.2024 after 01.07.2024.

Profit tax benefits can be realized provided that separate accounting of revenue and expenses for activities within the scope of the Decree is maintained in the manner prescribed by law. Exemption from property taxes is granted for the capital construction (building, structure) and land plot as a whole, regardless of the direction of use (non-use) of their parts, in the quarter in which the legal entity is entitled to the benefit.

Information about benefits and the objects used is reflected when filling out the relevant tax declarations (calculations) separately for each payment.

4. On the use of payment terminals

Legal entities and individual entrepreneurs engaged in retail trade of motor vehicles, motorcycles, furs, antiques, mobile trade, hostel activities, catering product delivery services, photocopying and scanning services, agro-ecotourism services, as well as in the rental of cars without a driver, are obliged to have a payment terminal to provide the buyer with the opportunity to pay for the purchase using any payment instrument(s). At the same time, this obligation can be fulfilled not only by purchasing and using a payment terminal as such, but also by using software that allows accepting cashless payments.

Thus, scanning a QR code using a payment instrument in the form of a mobile application installed on the buyer's mobile device, when paying for goods sold, works performed, services rendered by the buyer, is accompanied by the formation of a payment order and initiation of payment with the actual use of a software and hardware tool. In this case, the buyer's mobile device with the mobile application installed on it essentially acts as a payment terminal.

5. Attention Business Entities!

 

1. Activities of organizations for industrial harvesting (purchase) of medicinal plant raw materials, wild berries, nuts and other fruits, mushrooms, other wild products.

The purchase by an organization for cash from the population of berries, mushrooms, nuts and other wild products is formalized by a self-developed primary accounting document (for example, a purchase statement, a purchase act, which indicates the date, product name, quantity, price, amount, seller and buyer details, as well as the seller's and buyer's signatures).

Requirements for primary documents are defined by Article 10 of the Law of the Republic of Belarus "On Accounting and Reporting" dated 12.07.2013 No. 57-Z.

At the same time, it should be remembered about the payment of a fee from collectors (except in cases where the payer has paid for secondary forest use or has been exempted from it). The fee is not paid by organizations applying the simplified tax system. Also, please note that when selling products purchased from the population below the purchase price, the tax base for VAT is determined based on the selling price, not the acquisition price (according to the rules established by paragraph 42 of Article 120 of the Tax Code for goods acquired less than 1 year ago).

2. On the refinement of cash registers

From 01.07.2025, new requirements will be imposed on cash registers, established by:

- for cash registers, including those combined with taximeters, ticket printing machines, - by resolution of the Ministry of Taxes and Duties of the Republic of Belarus, the State Committee for Standardization of the Republic of Belarus dated 14.10.2022 No. 29/99

- for software cash registers, - by resolution of the Ministry of Taxes and Duties of the Republic of Belarus dated 29.03.2018 No. 10 (as amended by resolution dated 29.12.2022 No. 41).

Measures for the modification of cash equipment are carried out in accordance with the Action Plan for the implementation of new requirements for cash equipment for the withdrawal of marked goods from circulation, approved by the Minister of Taxes and Duties of the Republic of Belarus S.E. Nalivayko and the Chairman of the State Committee for Standardization of the Republic of Belarus V.B. Tataritsky dated February 6, 2023 No. 8-2-10/08018, No. 04-07/141:

- for business entities selling goods marked with unified control marks and identification means, modification (replacement with new models of cash registers) must be carried out before 01.01.2025, and for business entities that do not have marked goods for sale - before 01.04.2025 (subparagraph 3.7 of paragraph 3 of the Plan)

- for users of software cash registers, the software (software cash registers) must be replaced before 01.01.2025 (subparagraph 3.9 of paragraph 3 of the Plan).

The cash equipment currently used by business entities does not meet the new requirements; in this regard, organizations and individual entrepreneurs need to take measures to carry out the necessary work with cash equipment (modification, replacement). If the equipment cannot be modified, it must be replaced.

Lists of models (modifications) of cash registers that can be upgraded and those that cannot be upgraded by applicants to meet new requirements are posted on the website of the Ministry of Taxes and Duties in the section Tax Control/Control over the acceptance of payment means and the use of cash registers and other equipment (https://nalog.gov.by/tax_control/payment_control/). Schedules for submitting applications for changes to the relevant cash register equipment (separately for cash registers and software cash registers) are also posted here.

3. Territories of rural areas to which preferential taxation applies are defined

By the Decision of the Vitebsk Regional Council of Deputies dated 22.05.2024 No. 26, Lists of territories of rural areas and small urban settlements have been determined, on which organizations engaged in trade, public catering, and consumer services can take advantage of the preferential tax regime for profit tax, real estate tax, as well as land payments.

*The Decision comes into force on 01.07.2024.

 

1. Issuance of payment documents when transferring taxes to the budget.

From May 10, 2024, two new details must be indicated in payment documents for the payment of taxes, duties, fees, penalties, and other payments to the budget:

- actual payer (UNP and name);

- actual beneficiary (UNP and name).

For taxpayers registered with the Department for Work with Taxpayers for the Miory District, indicate the following in the payment instruction for payments:

- to the republican budget

beneficiary - Main Treasury Department of the Ministry of Finance of the Republic of Belarus for the Vitebsk Region, UNP 300594330;

actual beneficiary – Department for Work with Taxpayers for the Miory District, UNP 301312008.

Account No. BY97AKBB36029130100020000000 at JSC "ASB "Belarusbank" Minsk BIC AKVVB Y2X

- to the local budget:

beneficiary - Main Treasury Department of the Ministry of Finance of the Republic of Belarus for the Vitebsk Region, UNP 300594330;

Beneficial owner - Finance Department of the Miory District Executive Committee, UNP 300069886.

Account No. BY94AKBB36003210000000000000 in JSC "ASB "Belarusbank" Minsk, BIC AKVVB Y2X

Information on the details of accounts for crediting payments to budget revenues is posted on the website of the Ministry of Finance of the Republic of Belarus in the "Budget Execution" section, subsection "Budget Accounts from May 10, 2024".

 

1. The scope of payment terminals use will be expanded from July 1, 2025.

The obligation will arise for business entities when:

- carrying out itinerant trade;

- performing work (services) outside the permanent place of business;

- providing services and selling goods on trains of city, regional, interregional, international, commercial lines;

- carrying out trade with home delivery of goods by postal and telecommunication operators, mobile teams of service and utility organizations;

- providing household services and carrying out retail trade in household service facilities.

- passenger road transport on a non-regular service (except for taxi services);

- providing services on behalf of diplomatic missions and consular institutions of foreign states for accepting visa applications for entry into visa-required countries.

2. Use of cash registers in a taxi when passenger road transport is ordered and performed using an electronic information system (EIS) for cash payment.

Drivers of taxis are prohibited from transporting passengers with faulty, switched off (blocked) cash registers by the Rules of Road Passenger Transport. In accordance with the established procedure for using cash registers, the taxi driver, at the beginning of the working day (after opening the shift), performs an operation to register the deposit of cash received before the start of work (shift).

Therefore, a shift can only be opened by the driver on the cash register equipment that is installed and used in the taxi vehicle.

3. Determination of the fare for passenger transportation by taxi cars, ordered and completed using an electronic information system (EIS) for cash

Through the EIS, a taxi dispatcher or carrier organizes and manages the technological process of passenger transportation by taxi cars (hereinafter referred to as transportation) using telecommunication means and the global computer network Internet. Payment for completed transportation by passengers can also be made through the EIS. The fare for transportation ordered using the EIS is established by contract and is determined by: boarding the taxi, per 1 km of paid mileage, and per 1 minute of the trip.

Payment collection during transportation is carried out using a cash register combined with a taximeter, equipped with a tax authority control device, or a software cash register (hereinafter referred to as cash register equipment), except for cases where payment is made solely using bank payment card details through the EIS in non-cash form.

Due to the requirements of the Rules for road passenger transportation, the fare determined by the EIS must be processed through the cash register equipment. The Rules also stipulate that the driver cannot demand payment from the passenger exceeding the readings of the cash register combined with the taximeter, or exceeding the amount determined by the EIS.

Thus, if a trip is ordered through the EIS and the passenger pays for it in cash, then such funds are subject to acceptance using cash registers in the amount determined by the EIS. The passenger is issued a payment document reflecting the cost of the trip, which is determined by the EIS. In the event that the amount of payment according to the cash register readings is greater or less than the amount determined in the EIS, then the driver must apply a discount or surcharge (respectively) to the difference between the taxi meter readings and the amount according to the EIS. The passenger is issued a payment document indicating the taxi meter fare and the amount of the applied discount (surcharge) up to the fare determined by the EIS.

4. On the provision of Russian-standard marking codes to Belarusian economic entities for marking light industry goods

In connection with the introduction in the Russian Federation from 01.04.2024 of marking for certain light industry goods with identification means, RUP "Publishing House "Belblankavyyd" from 18.04.2024 provides (within the framework of information interaction with OOO "Operator-CRPT") Russian-standard marking codes to Belarusian economic entities for marking such goods.

For reference. Marking with identification means on the territory of the Russian Federation has been introduced for light industry goods classified by the following codes of the unified Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union: 4304 00 000 0, 6101, 6102, 6103, 6104, 6105, 6110, 6112 11 000 0, 6112 12 000 0, 6112 19 000 0, 6112 20 000 0, 6113 00 (for outerwear only), 6203, 6204, 6205, 6206, 6210 (for outerwear only), 6211 20 000 0, 6211 32, 6211 33, 6211 39 000 0, 6211 42, 6211 43, 6211 49 000, 6214 and 6215.

 

5. Electronic document management: information mandatory for completion in transport and other documents confirming the movement of goods during mutual trade with other states, from 01.05.2024

Transport documents created by business entities must contain the information required for filling out the international consignment note "CMR" drawn up on paper. In addition, the following information is mandatory:

- international identification number of the business entity - participant in the economic transaction (Global Location Number - (GLN)), assigned by the GS1 Belarus identification system;

- country code of the consignor;

- country code of the consignee.

Other documents must contain the information required for filling out consignment notes drawn up on paper, as well as the following information:

- GLN

- international identification number of the product (Global Trade Item Number (GTIN);

- country code of the consignor; name of the consignor's country;

- country code of the consignee; name of the consignee's country.

 

1. On the provision of information on personal income upon termination of activities as a result of liquidation or reorganization of a legal entity.

The Ministry of Taxes and Levies Inspectorate for the Polotsk District informs tax agents that in case of termination of their activities in 2024, they must fulfill their obligation to provide information on personal income not only for the previous year but also for the elapsed period of the current year (until the moment of termination of their activities).

The information can be provided both by the tax agent whose activities are terminated (until the moment of their actual termination) and by the successor tax agent, to whom the rights and obligations of the merged legal entity are transferred.

 

2. The Council of Ministers has determined the List of high-comfort vehicles

The list of such vehicles includes:

Owners of such vehicles registered with the State Automobile Inspectorate, if no more than 3 years have passed since their year of manufacture, should pay the transport tax, including advance payments, based on a rate increased by 10 times.

 

3. On taxation by agricultural organizations of payments to targeted students

Monthly payments made from the funds of organizations – customers of personnel for students of agricultural specialties in educational institutions under contracts for targeted training of a specialist (worker, employee), made in accordance with Decree of the President of the Republic of Belarus No. 70 of February 25, 2020 "On the Development of the Agro-Industrial Complex of the Vitebsk Region", are not subject to personal income tax. Information on such income (payments) is not submitted to the tax authority by the tax agent.

4. On real estate tax for organizations – lessees of capital structures from individuals or foreign organizations from 01.01.2024

When calculating the real estate tax by the lessee organization, the cost of the leased capital structures indicated in the lease agreement is compared with its market value indicated in the conclusion on independent appraisal, determined by an organization or individual entrepreneur having an appraisal activity certificate, as of January 1 of the year for which the tax is calculated.

In the absence of such a conclusion, the contract value is compared with the value calculated based on Appendix 32-1 to the Tax Code.

The tax base is the higher of the compared values.

Please note that the cost of leased real estate for tax calculation under the heading "Other buildings, structures, premises" (this includes, for example, administrative, warehouse, other non-residential premises) from 01.01.2024 depends on the total area of the capital structure (isolated premises) in which this real estate is leased (criteria for total area "up to 200 sq. m", "from 200 to 400 sq. m", "over 400 sq. m"). That is, when leasing part of a premises owned by an individual or a foreign organization, the area of the entire premises should be requested from the lessor in order to accurately determine the required calculation value. When leasing an isolated premises as a whole, information on the total area of the capital structure is not needed: the lessee applies the cost per 1 sq. m from Appendix 32-1 to the Tax Code based on the area of the leased isolated premises.

5. On the tax rate on income of foreign organizations not carrying out activities in the Republic of Belarus through a permanent establishment, on dividends and income equated thereto

From 01.04.2024 to 31.12.2026, the tax rate on income accrued (paid) to foreign organizations located in a state included in the List of foreign states committing unfriendly actions against Belarusian legal entities and (or) individuals, approved by the Resolution of the Council of Ministers of the Republic of Belarus dated 06.04.2022 No. 209, is set at 25%.

In addition, from 01.06.2024 to 31.12.2026, the execution by the Republic of Belarus of international treaties on the avoidance of double taxation (hereinafter referred to as agreements) with states included in the said List is suspended in terms of articles that regulate the taxation of dividends, interest, and income from the alienation of property.

Until 01.06.2024, in relation to the specified income, it is possible to apply the tax rate (benefits) taking into account the provisions of the Agreements, from 01.06.2024 – the new rate of 25% applies regardless of the provisions of the Agreements.

 

6. No later than 01.04.2024, organizations must provide to the tax authority:

- annual individual reporting in the established formats in the form of an electronic document,

- information on the movement of funds on accounts opened by Belarusian organizations in a bank and other credit (financial) organization outside the Republic of Belarus, with the exception of correspondent accounts, in the established form (the form is established in Appendix No. 34-8 to the Resolution of the Ministry of Taxes and Levies of the Republic of Belarus dated 26.04.2013 No. 14).

 

1. Submission of information on the income of individuals by tax agents

Due to changes in the Tax Code, the list of income of individuals, in relation to which the tax agent does not provide information to the tax authority, has been supplemented with the following items:

- income paid to members of electoral commissions, referendum commissions, commissions for conducting a vote on the recall of a deputy;

- income in kind, exempt from income tax within the limits established by paragraph 3 of part 1 of clause 23 of Article 208 of the Tax Code (in 2023 - 186 rubles);

- income in the form of prizes and (or) gifts received in kind by winners, prize-winners, participants of district, regional, republican competitions, reviews, contests, fair-festivals, projects and other similar events, exempt from income tax in accordance with clause 28-1 of Article 208 of the Tax Code.

Such information is not submitted for income for 2023 (by the deadline of April 1, 2024 at the latest!).

2. Select the VAT reporting period.

Value added tax (VAT) payers who have chosen the calendar quarter as the VAT reporting period for 2024 must have informed the tax authority about their decision when submitting the annual VAT tax return (the deadline for submission this year is January 22, 2024 at the latest) by marking it.

Failure to make such a mark means that you have chosen the month as the reporting period.

In this case, no later than February 20, 2024, the mark can be made (if forgotten) or canceled (if a different decision was made). To do this, you need to make changes (additions) to the VAT tax return (in other words, clarify) for 2023.

3. Unified tax for agricultural producers: notify about commencement, report on new rates upon termination

Organizations that have expressed a desire to switch to paying a unified tax for agricultural producers from January 1 of this year must submit a notification of the transition to this tax regime in the prescribed form to the tax authority at the place of registration no later than February 1, 2024.

To apply the unified tax in 2024, the revenue from the sale of produced agricultural products (primary flax processing products) and their processed products must be at least 50% of the total revenue of the organization (branch) for 2023.

We remind you that if this criterion is not met for 2023, single tax payers are obliged to:

- cease its application from 01.01.2024;

- calculate and pay (recalculate!) the single tax for 2023 at a rate of 3%;

- calculate and pay land tax (rent for land plots) for all tax objects for 2023.

4. Decided to abandon the simplified tax system, but changed your mind…

An organization that applied the simplified tax system in 2023 and has the right to apply it in 2024 may voluntarily abandon this regime from January 1, 2024, by notifying the tax authority of its decision by marking the line "Refusal to apply the simplified tax system from the next reporting period" on the title page of the tax return (calculation) for the simplified tax for 2023, which is submitted no later than 22.01.2024.

However, if you forgot to put a mark, you can do it by submitting a "clarified" tax return for 2023. Moreover, the clarification must be made no later than 22.04.2024. At the same time (no later than 22.04.2024), the placed mark can be canceled.

 

1. "Question-Answer" service.

The official website of the Ministry of Taxes and Duties operates an information electronic service "Question-Answer" (https://nalog.gov.by/question-answer/), where you can find the most up-to-date and competent answers to taxpayers' questions. Take a look here, perhaps the answer to your question is at your fingertips!

2. Electronic appeals: a single submission method for all

The Ministry of Taxes and Levies Inspectorate for Polotsk District draws the attention of citizens and economic entities: electronic appeals to the tax authority (as well as to other authorities and organizations) are submitted exclusively through the state unified (integrated) republican information system for recording and processing citizens' and legal entities' appeals - obrashcheniya.bel. Electronic appeals received by other means (to the inspectorate's email, via the Personal Account) will not be considered.

 

Subsection "Information for Individual Entrepreneurs"

1. Property taxes: forgetfulness does not exempt from the obligation to pay.

 

2. "Question-Answer" Service.

The official website of the Ministry of Taxes and Levies features an informational electronic service "Question-Answer" (https://nalog.gov.by/question-answer/), where you can find the most up-to-date and competent answers to taxpayers' questions. Take a look, perhaps the answer to your question is right at your fingertips!

3. Electronic appeals: a single submission method for all

The Ministry of Taxes and Levies Inspectorate for Polotsk District draws the attention of citizens and economic entities: electronic appeals to the tax authority (as well as to other authorities and organizations) are submitted exclusively through the state unified (integrated) republican information system for recording and processing citizens' and legal entities' appeals - obrashcheniya.bel. Electronic appeals received by other means (to the inspectorate's email, via the Personal Account) will not be considered.

 

1. Attention to tax agents submitting information on individuals' income

Information on individuals' income for 2023 can be entered and submitted using the relevant functionality in the Taxpayer's Personal Account (PA). Information can be entered manually in the PA or uploaded from accounting software. After entry ("upload"), the information is sent to the Ministry of Taxes and Levies Portal.

Important! The functionality is available for use only with an electronic digital signature (EDS). After registering in the Personal Account using EDS, the tax agent must select the "Tax Agent's Cabinet" option.

Please note: to test the functionality, data entered and submitted before 31.12.2023 are accepted in test mode; they will be deleted on 01.01.2024.

Tax agents without an EDS will submit information to the tax authority at their place of registration in the form of a file (JSON format) on an electronic medium, according to the form established in Appendix 9 to the resolution of the Ministry of Taxes and Levies dated 15.11.2021 No. 35.

Currently, this method of submitting information is being improved and is therefore unavailable, including for testing.

Additional information is posted on the official website of the Ministry of Taxes and Levies in the section "Current/Submission of information by the tax agent on individuals' income for 2023".

2. Electronic service of the Ministry of Taxes and Levies: use it yourself and tell your counterparty

On the website of the Ministry of Taxes and Levies, in the "Service" section, the service "Verification of confirmations of payment of profit tax (income) of foreign organizations, status of a Belarusian organization as a VAT payer" is available.

Use the service to verify the issuance and content of documents issued by tax authorities on paper or in electronic form (at the applicant's choice), namely:

- a certificate confirming the amount of profit tax paid to the budget by a foreign organization;

- a certificate of payment of income tax by foreign organizations not carrying out activities in the Republic of Belarus through a permanent establishment;

- a certificate confirming the status of a Belarusian organization as a VAT payer.

Search is performed by certificate number. Certificates verified using the service do not have a seal (it is not displayed).

3. Improvement of the procedure for accepting payment funds by automatic electronic devices, vending machines

From 01.07.2025, the issue of vending machines accepting payment instruments in both cash and cashless forms, as well as the use of a software cash register, will be regulated.

If a vending machine used ensures the acceptance of both cash payments and cashless payments, then such a vending machine must be equipped with a cash register with a control and security module (CSM), or a software cash register (located on the user's device) must be installed, or interaction with a software cash register located in the data processing center of software cash register system operators must be ensured. If a vending machine accepts only cash, then, in addition to the specified equipment options, it is possible to connect it directly to the control system (with an installed CSM).

When selling goods subject to marking (e.g., soft drinks in packaging with a capacity of more than 0.25 liters, ice cream), the built-in cash register equipment must ensure:

- reading and transmission of the marking code and a unique sequence of characters in a machine-readable form, presented as a two-dimensional DataMatrix barcode, including variable information, such as the series and number of the unified control mark applied to each unit of goods subject to marking, as well as the transmission of information;

- differentiated accounting of data on goods sold

Automatic electronic apparatus, vending machine - an electro-mechanical or electronic automatic apparatus with functions of automatic sale (dispensing of goods, performance of work, provision of services without the involvement of a seller), equipped with one or more devices for accepting cash.

 

4. Business entities using a special computer system (SCS)

From 01.07.2025, in order to create equal conditions for all business entities, legal entities and individual entrepreneurs using SCS will be provided with the option, with the consent of the buyer (consumer), to issue a payment document to them only in electronic form.

The method of issuing the payment document will be determined by the SCS user themselves.

For reference. Currently, legal entities and individual entrepreneurs using a cash register or software cash register generate and issue a payment document to the buyer (consumer) only in electronic form with their consent.

5. Absence of an object is not a reason not to report to the tax authority

The Ministry of Taxes and Levies Inspectorate for the Polotsk District reminds organizations that had no tax objects in 2023 that in January 2024 (no later than 01/22/2024), it is necessary to submit a tax declaration (calculation) for the simplified tax system, for a single tax for agricultural producers to the tax authority.

In addition, budgetary organizations, public and religious organizations (associations), republican state-public associations, and other non-profit organizations that had no amounts of personal income tax subject to transfer to the budget throughout 2023 must submit a tax declaration (calculation) of the tax agent for personal income tax from individuals for the 4th quarter of 2023, also no later than 01/22/2024. Such a declaration is not submitted at all only if there is no tax object (i.e., no actual payments to individuals).

Do not forget that tax reporting from 01/01/2024 is submitted in the established formats in the form of an electronic document!

6. On the submission of tax declarations in electronic form

From 01/01/2024, organizations are obliged to submit tax declarations (calculations) to the tax authority in the established formats in the form of an electronic document. The exceptions are only:

- foreign organizations that do not carry out activities in the Republic of Belarus through a permanent establishment within the meaning of Article 180 of the Tax Code,

- taxpayers in respect of whom insolvency or bankruptcy proceedings (except for rehabilitation) are applied,

- taxpayers in the process of liquidation (termination of activities).

Thus, starting from 01.01.2024, it will be impossible to submit a personal income tax return (tax agent) "on paper" or to sign a pre-filled income tax return for land tax, which has been sent to the Ministry of Taxes and Levies portal by the tax authority.

In this regard, we draw the attention of non-profit organizations that do not carry out entrepreneurial activities (including garage cooperatives, gardening associations, religious, trade union, and other public organizations and associations) to the need for timely connection to electronic document flow in their relations with the tax authority.

7. Control on the Electronic Invoice Portal (ESChF)

Data from ESChF should be checked and analyzed in the following sections:

- "Preliminary Control": intended for reconciling the data indicated in the ESChF with the tax accounting indicators that are expected to be entered into the VAT tax return (calculation) (for timely detection of discrepancies and their elimination to avoid deviations during the desk audit conducted by the tax authorities);

- "Transaction Monitoring": intended for viewing ESChF that have been submitted to the Portal (to check the upload of issued outgoing ESChF) or received within a specified period (day, month, quarter, etc.) from counterparties (to check the upload of signed incoming ESChF);

- "Reports and Analytics": intended for detailed analysis of data from ESChF (for generating a specified volume of information based on data from issued and received ESChF). Here you can view a general list of issued and received ESChF for a specific period.

8. Voluntary - Mandatory: For self-control purposes, the "Preliminary Control" service is available on the Electronic Invoice Portal (ESChF)

Discrepancies with the data of the E-Invoice Portal are often the cause of errors in value-added tax (VAT) returns. To avoid or at least minimize the likelihood of unjustified deviations, as well as incorrect completion of e-invoices, which can be a source of such deviations, taxpayers should independently reconcile the data of the E-Invoice Portal with the indicators of the VAT return.

Simple actions will allow timely correction of errors made, and thus prevent possible consequences in the form of administrative liability or underpayment of taxes.

When launching preliminary control before submitting the return, a reconciliation of data from e-invoices for the reporting period from the beginning of the year with the indicators of the previously submitted return for the previous reporting period takes place. If the deviation is equal to the indicators of the current period added to the previous return, then everything is correct. If there are no deviations or they are not equal to the above indicators, then an analysis and adjustment of either the e-invoices, or the amounts in the pre-calculated return, or both sets of data is required.

Launching preliminary control in the Personal Account: In the "Preliminary Control" / "Creating Preliminary Control" subsection, select "Launch Preliminary Control" from the menu. Select the "launch" action after specifying the launch parameters (selected reporting period is month or quarter).

To view the list of e-invoices included in the check, when launching control, in the filter for saving check results, you need to select one of the forms of result presentation: either "calculation of preliminary control indicators, formation of details in transaction monitoring", or "calculation of preliminary control indicators, formation of details in transaction monitoring, including for KKs that worked without deviations".

After the informational message "Preliminary control created successfully" appears, the "Completed Checks" page will open, where, by generating a report using the launch button based on one of the available templates, you can view the detected deviations (the difference between the VAT declaration indicators and the data from the AIS "Invoice Accounting"). The report includes data for the control rules by which discrepancies were found. If no deviations are found, the report will be empty.

Preliminary control on the ESChF Portal can be launched an unlimited number of times. In this case, the latest submitted VAT declaration within the selected period is always selected for comparing the VAT declaration values with the ESChF data in the service.

For reference. The preliminary control instruction is posted on the ESChF Portal in the "Guides and Instructions" section.

To work in the current mode of the Portal, you should "refresh" by pressing the F5 key or the Ctrl + F5 key combination each time you log in to the system.

9. Information for organizations paying land tax and property tax.

Land tax from organizations (payment code 00801) and property tax from organizations (payment code 00901) are paid to the republican budget at the organization's place of registration, regardless of the location of the taxable object.

Payment details for taxpayers registered with the department for working with taxpayers in the Miory district of the Ministry of Taxes and Duties inspectorate for the Polotsk district:

Recipient - Main Treasury of the Ministry of Finance of the Republic of Belarus for the Vitebsk region

Account number BY97AKBB36029130100020000000

at JSC "ASB Belarusbank" Minsk BIC AKBBBY2X

Recipient UNP 301312008

Payment code 00801 - for land tax; 00901 - for property tax.

10. On the use of cash registers when organizing and carrying out public catering in educational institutions

Business entities organizing public catering in educational institutions need to consider the following:

- The acceptance of payment instruments in facilities located in general secondary education institutions, vocational-technical education institutions, special general secondary schools (special general boarding schools), secondary schools - Olympic reserve schools, specialized educational and sports institutions is carried out using cash registers (cash registers, software cash registers). The installation of card payment terminals in such facilities is not mandatory, but not prohibited.

In other catering facilities located in capital structures (buildings and structures), organizations and individual entrepreneurs are obliged to install and use payment terminals. For example, this applies to "university" canteens.

- from 01.07.2025, it is prohibited to use cash registers that do not meet the new requirements defined by the Ministry of Taxes and Duties and the State Committee for Standardization. Organizations and individual entrepreneurs must upgrade their cash registers or purchase new ones by this date. Lists of models suitable and unsuitable for upgrading have already been determined and posted on the main page of the Ministry of Taxes and Duties website in the "News" section.

- the acceptance of payment instruments without the use of cash registers will result in a fine of up to 30 basic units (BU) for an individual entrepreneur - up to 50 BU, and for a legal entity - up to 100 BU (Art. 13.14 of the Code of Administrative Offenses). Violation of the procedure for using cash registers, as well as the absence thereof, will result in a fine of up to 50 BU for an individual entrepreneur - up to 100 BU, and for a legal entity - up to 200 BU (para. 1, Art. 13.15 of the Code of Administrative Offenses).

 

1. Improving the procedure for accepting payment instruments: when planning your business, take care in advance to comply with the new requirements

From July 1, 2025, the use of cash registers and card payment terminals by business entities will be mandatory when:

- carrying out door-to-door sales,

- providing services (selling goods) on trains,

- providing services at home (carrying out trade with home delivery of goods) by postal and telecommunication operators, mobile teams of household and utility service organizations,

- performance of works (services) outside the permanent place of business in rural areas,

- provision of household services (retail trade in consumer services facilities) in facilities located in rural settlements, with no more than one employee (for services - one person per shift).

Instead of a card payment terminal, it is allowed to use, among other things, software that allows accepting cashless payments (e.g., the "Oplati" application, other banking software).

 

2. On the introduction of marking of certain goods in the Russian Federation from 01.10.2023

In Russia, the marking of non-alcoholic beverages with identification means is being introduced in stages. From 01.12.2023, certain types of non-alcoholic beverages, including those with juice, packaged in glass or polymer consumer packaging (EAEU TN VED codes 2202 10 000 0, 2202 99 180 0, 2206 00 590 1, 2206 00 590 9, 2206 00 890 1) are subject to marking.

 The next stages are 01.03.2024 and 01.06.2024, after which all types of non-alcoholic beverages, including juices, will be subject to marking in the Russian Federation.

To obtain Russian-style marking codes, Belarusian exporters need to contact Russian buyers of the specified products in advance.

3. List of individual incomes for which tax agents do not provide information to tax authorities for 2023:

- income in the form of winnings (returned unsuccessful bets);

- income related to state secrets, banking secrecy;

- income of individual entrepreneurs, notaries from entrepreneurial, notarial activities, as well as loans and credits issued to them;

- income from the sale of crop production grown by an individual (close relative or in-law) on a land plot located in the territory of the Republic of Belarus;

- on income from the collection and sale of medicinal plant raw materials and wild-growing products by collectors (purchasing entities) of such products;

- on income from the sale of recyclable materials;

- on microloans provided by organizations engaged in microfinance activities;

- on commercial loans;

- on loans through online lending services;

- on loans issued by banks;

- on all types of compensation provided for by law (except for monetary compensation for unused annual leave, severance pay in connection with termination of the employment contract), which are exempt from income tax

- on income paid (provided in kind) to members of trade union organizations (their close relatives), which are exempt from income tax;

- on income paid (provided in kind) to military personnel - members of public associations (their close relatives), which are exempt from income tax.

 

1. When the tax authority will make claims to your accounts

Taxes and penalties are recovered from the funds in the account, electronic money in the electronic wallet of the taxpayer (other obligated person) if:

• the tax obligation has not been fulfilled or has been improperly fulfilled within the established period;
• penalties have not been paid (paid in full) to the budget.

The decision to recover tax and penalties from the funds in the account, electronic money in electronic wallets is made by the head of the tax authority or his deputy and is sent to the AIS IDO with an attached payment order.

 

2. Electronic service to assist the taxpayer

The website of the Ministry of Taxes and Duties of the Republic of Belarus provides a service for searching for information from the State Register of Taxpayers (GRР).

A legal entity or individual entrepreneur can be searched either by taxpayer identification number (TIN) or by a fragment of the name. The search result will display the following taxpayer details from the Unified State Register of Legal Entities and Individual Entrepreneurs: TIN, full and abbreviated name, code and name of the tax inspection authority, date of registration, taxpayer status (active, in the process of liquidation, liquidated), date of status change, and an indication of whether the taxpayer has been inactive for more than 12 months.

An individual can be searched by their TIN, identity document number, or personal number. The search result will display the TIN, full name, and the code of the tax inspection authority where the individual is registered.

3. On the submission of information on income of individuals for 2023 by tax agents

On the website of the Ministry of Taxes and Duties, in the "Actual" section, the service "Submission of information on income of individuals for 2023 by tax agents" (https://nalog.gov.by/individuals_income_2023/) is available, where you can find information on who should submit the information, the content, deadlines, and frequency of submission of this information, as well as the procedure for its formation and submission to the tax authority (with active links for forming and submitting the information).

Please note that by April 1, 2024, each tax agent must submit to the tax authority information on income paid by them to individuals.

4. Cash registers for hunting organizers

Business entities that are users of hunting grounds, at the permanent place of business, when accepting cash payments for hunting permits, licenses, hunting permits for licenses, and for hunting products, are obliged to use cash registers with an installed tax authority control device. In addition, facilities providing services related to hunting organization and temporary accommodation for hunters (hunter's lodges, agro-tourism estates, etc.) must have installed and use card payment terminals.

Directly at the place of animal extraction (on the hunting grounds), the hunt leader accepts cash for the permit and hunting products without using cash registers or terminals.

 

5. On the transition to the simplified tax system

Existing organizations wishing to switch to the simplified tax system (STS) from 2024 must submit a notification of the transition to the STS to the tax authority in the prescribed form* from October 1 to December 31, 2023.

*The form is established in Appendix 36 to the resolution of the Ministry of Taxes and Levies dated 03.01.2019 No. 2

At the same time, gross revenue on an accrual basis for 9 months of 2023 should not exceed 1,612,500 rubles, and the average number of employees of the organization for January - September 2023 should not exceed 50 people.

The notification reflects the values of the revenue and headcount criteria, as well as a mark that the organization does not carry out activities and does not belong to business entities specified in paragraph 2 of Article 324 of the Tax Code, which lists restrictions (prohibitions) on the application of the STS.

If organizations switched from the STS to the general taxation order in 2023 from a month other than January, then they do not have the right to apply the STS from 2024.

 

1. On the use of cash registers

Acceptance of cash when carrying out retail trade of both food and non-food products, including at fairs and trading places in markets, is carried out using cash registers!

Business entities using cash registers are granted the right, with the consent of the buyer (consumer), to generate and issue a purchase receipt electronically (without a paper duplicate). The buyer's consent (including oral consent) to issue an electronic receipt must be obtained before the cash is accepted.

Please note: from 01.07.2025, it is prohibited to use cash registers that do not comply with the requirements established by the Ministry of Taxes and Duties and the State Committee for Standardization. Organizations and individual entrepreneurs must upgrade their cash registers or purchase new ones before this date. Lists of models that can and cannot be upgraded have already been determined and were posted on 01.08.2023 on the main page of the Ministry of Taxes and Duties website in the "News" section (https://www.nalog.gov.by/news/19389/).

2. On issuing a payment document in electronic form (electronic receipt)

The amounts paid for goods (works, services) received from a buyer by an organization or individual entrepreneur using cash registers shall be documented by a payment document generated by that cash register. With the buyer's consent, the buyer is issued a payment document in electronic form only. If the buyer does not consent to receiving a payment document in electronic form only, the cashier is obliged to ensure the automatic printing of the payment document on the receipt tape and its transfer to the buyer.

It is not allowed for a business entity to issue only an "electronic receipt" to a buyer without their consent, containing the informational message "If you wish to receive a paper receipt, please ask the cashier" (or similar), as such statements are not normatively justified and do not exempt the person who failed to issue the receipt in the manner prescribed by law from liability.

For violation of the procedure for issuing a payment document to a buyer (consumer), administrative liability is imposed in the form of a fine of up to 50 basic units (BU), for individual entrepreneurs - up to 100 BU, and for legal entities - up to 200 BU (Part 1 of Article 13.15 of the Code of Administrative Offenses).

3. On the introduction of marking for certain goods in the Russian Federation from 01.10.2023

On the territory of the Russian Federation, from 01.10.2023, marking with identification means is being introduced for:

- disinfectors - air purifiers (including equipment, bactericidal units and recirculators used for filtering and purifying air in premises) – EAEU TN VED codes 8421 39 200 8, 8421 39 800 6, 8539 49 000 0, 9018 20 000 0

- orthopedic footwear and orthopedic insoles (including insoles, half-insoles) – EAEU TN VED code 9021 10 100 0

- hygienic products and antiseptics – EAEU TN VED codes 3304 99 000 0, 3808 94 800 0

- biologically active food supplements – EAEU TN VED codes 1204 00 900 0, 1208 90 000 0, 1210 20 900 0, 1212 21 000 0, 1302 19 900 0, 1504 10 100 0, 1504 20 900 0, 1515 11 000 0, 1515 19 900 0, 1515 90 690 0, 1515 90 890 0, 1516 10 900 0, 1517 90 990 0, 1602 90 990 9, 1702 30 500 0, 1702 40 900 0, 1702 60 950 0, 1702 90 950 0, 1704 90 550 0, 1704 90 710 0, 1704 90 820 0, 1806 31 000 0, 1806 32, 1806 90 700 0, 1806 90 900 0, 1904 10 900 0, 2101 12 920 1, 2106 10 800 0, 2106 90 580 0, 2106 90 930 0, 2106 90 980 1, 2106 90 980 3, 2106 90 980 8, 2202 99 180 0, 2922 41 000 0, 2922 42 000 0, 2923 20 000 0, 2923 90 000 9, 2936, 3001 20, 3002 49 000 1, 3002 90 300 0, 3002 90 800 0

- wheelchairs – EAEU TN VED codes 8713 10 000 0, 8713 90 000 0.

Belarusian exporters of the specified goods to the Russian Federation should contact their Russian counterparties in advance to obtain Russian-style marking codes.

4. On filing "zero" tax returns!

In the absence of tax objects for the simplified tax system and the single tax for agricultural producers in 2023, the taxpayer organization must submit an annual tax return (for January-December 2023) to the tax authority no later than 01/22/2024. *Missing indicators should be entered with the value "0".*

The Ministry of Taxes and Duties Inspectorate for the Polotsk District draws the attention of legal entities and individual entrepreneurs using cash registers.

In accordance with paragraphs 151 and 23 of the Regulation on the Use of Cash Registers and Other Equipment when Accepting Payment Instruments, approved by the Resolution of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus of July 6, 2011 No. 924/16 (Regulation No. 924/16), in order to ensure consumers' rights to receive a payment document in electronic form instead of a paper receipt with the buyer's (consumer's) consent, a legal entity or individual entrepreneur using a cash register shall form and issue a payment document to the buyer (consumer) only in electronic form. If the buyer does not express consent to receive the payment document

only in electronic form, the cashier is obliged to ensure the automatic printing of the payment document and issue a paper receipt to the buyer.

Issuing another document in the retail outlet to the buyer (consumer) generated by the cash register equipment, containing the information message "If you want to receive a paper receipt, ask the cashier for it" or other similar information without their consent to receive the document only in electronic form instead of a payment document, contradicts the requirements of paragraph 4 of Regulation No. 924/16 and, accordingly, is not allowed.

For violation of the procedure for using cash register equipment, which consists in violating the procedure for issuing a payment document to the buyer (consumer), administrative liability is provided for under Part 1 of Article 13.15 of the Code of the Republic of Belarus on Administrative Offenses and entails a fine of up to fifty basic units, for an individual entrepreneur - up to one hundred basic units, and for a legal entity - up to two hundred basic units.

 

1. Models of cash registers subject to and not subject to modification

The Ministry of Taxes and Duties of the Republic of Belarus has published lists of models of cash registers, including those combined with taximeters and ticket-printing machines (hereinafter referred to as CRs), which can and cannot be upgraded to meet the new requirements for CRs, as defined in the Resolution of the Ministry of Taxes and Duties of the Republic of Belarus and the State Committee for Standardization of the Republic of Belarus dated 14.10.2022 No. 29/99 "On Requirements for Cash Registers, including those combined with taximeters and ticket-printing machines," and which business entities are obliged to use from July 1, 2025.

       The lists can be found at: (https://nalog.gov.by/news/19389/).

2.  On classifying organizations and individual entrepreneurs as inactive taxpayers.

The Resolution of the Ministry of Taxes and Duties of the Republic of Belarus dated 15.05.2023 No. 19 "On classifying organizations and individual entrepreneurs as inactive taxpayers" defines the procedure for classifying business entities as "inactive taxpayers."

Taxpayers who have not submitted tax declarations (calculations) for taxes will be classified into this category:

- for the first reporting period of the current tax period, or if the indicators in the submitted tax declarations (calculations) for such period are zero;

- for the next reporting period of the current tax period, or if the indicators in the submitted tax declarations (calculations) for this period are zero or equal to all indicators of tax declarations (calculations) for the reporting period preceding this reporting period.

 

1. On the provision of information on transactions with related (deemed related) persons

Profit tax payers, by creating and issuing an electronic invoice (ЭСЧФ), are obliged to inform the tax authority about transactions concluded with related (deemed related) persons, as listed in sub-clauses 1.1 and 1.2 of Article 88 of the Tax Code. An electronic invoice is created for each transaction, regardless of the place of sale of the assets, the transaction price, or the amount by which its price deviates from the market price.

Such transactions include, for example: foreign trade transactions; transactions for the sale or purchase of assets with a Belarusian organization that does not calculate and pay (including due to benefits) profit tax; transactions for the sale or purchase of real estate with a taxpayer applying special tax regimes; transactions for the sale or purchase of assets with a resident of an offshore zone; transactions carried out in aggregate through third-party unrelated persons.

An electronic invoice is created for the sale (purchase) of goods, works, services, property rights, as well as for the sale (purchase) of financial assets, which include issued and received loans, borrowings, interest on them; securities, derivative financial instruments (options, futures, etc.).

It should be noted that when paying (receiving) dividends, an electronic invoice is not created, as dividends are not considered goods, works, services, property rights, or financial assets.

2. Methods of Summoning Individuals to the Tax Authority within the Administrative Process

To participate in the administrative process, an individual participant can be summoned to the tax authority (Article 11.6 of the Code of Administrative Procedure):

- by a summons handed over to the said person against receipt, or in case of their temporary absence - to an adult member of their family, the employer with whom this person is employed, the administration of the educational institution where they are studying;

- by electronic or other communication, including the Internet (e.g., SMS notification, telephone message, message via messengers (Viber, Telegram), etc.).

A legal entity participating in an administrative process shall be notified of the summons of its representative to the body conducting the administrative process by a summons sent to the legal entity's location.

The person who received the summons is obliged to notify the body conducting the administrative process about the existence of valid reasons preventing their appearance at the appointed time.

In case of failure to appear without valid reason, an individual subject to an administrative process, their legal representative, the victim (an individual), or a witness may be brought in by order of an official of the body conducting the administrative process. In addition, for evading appearance without valid reasons, administrative liability is provided in the form of a fine of up to thirty basic units (Article 25.6 of the Code of Administrative Offences).

3. On the creation of electronic messages when selling traceable goods outside the Republic of Belarus

Business entities, when carrying out operations related to the circulation of goods included in the list of goods whose circulation information is subject to traceability, are obliged to use electronic consignment notes.

For reference: electronic consignment notes include electronic messages created by the consignor when shipping goods to foreign business entities.

In this case, for international road transport of goods using electronic messages, paper consignment notes must be drawn up.

Thus, the primary accounting document confirming the fact of a business transaction during cross-border trade in goods will be a paper consignment note created together with an electronic message.

4. On the completion of electronic messages when selling traceable goods outside the Republic of Belarus

Cross-border trade in goods is accompanied by a paper-based consignment note (CN) and an electronic message created in conjunction with it. The unit of measurement for cost indicators indicated in the electronic message is the Belarusian ruble. Consequently, when selling goods subject to traceability outside of Belarus, business entities are obliged to create an electronic message indicating the cost, VAT amount, and total amount including VAT in Belarusian rubles.

In case the prices in the sales contract are denominated in foreign currency, the foreign currency should be converted into Belarusian rubles at the official exchange rate of the National Bank of the Republic of Belarus as of the transaction date. The consignment note may indicate the cost, VAT amount, and total amount including VAT in the foreign currency specified in the sales contract. In this case, electronic messages must contain the information and details established for their format, including the information indicated in the CN form. For the purpose of identifying the information in the electronic message with the cost indicators of the CN, this information should be indicated in the "Additional Invoice Fields" subsection.

 

1. And again about the salary that isn't there

Another cry for help from people who have been deceived by an employer who promised to pay for completed work handsomely "off the books" but "forgot" about his promise, forces us to remind you again and again: "By agreeing to a salary 'in an envelope,' you yourself (voluntarily!) doom yourself to a life without rules and deprive yourself of protection, whether social or material." Your verbal agreements are unlikely to be a weighty argument in defending your rights to payment for your labor.

We strongly recommend choosing official employment: it will bring you peace of mind, and the budget will be "pleased."

And we want to remind employers that if a controlling body establishes facts of income payments that have been withdrawn from taxation, the income tax will be paid not by the recipient of the income, but by you, and at a rate of 26% (instead of the generally accepted 13%).

Live wisely! Work honestly!

 

2. On budget loans for the construction of agricultural facilities

The Decree of the President of the Republic of Belarus of June 28, 2023 No. 198 provides for the granting of targeted budget loans for the construction (reconstruction), capital repair, and modernization of agricultural facilities to certain organizations in the Vitebsk region (OJSC "Polotsk Dairy Plant", OJSC "Gluboksky MKK", OJSC "Vitebsk Meat Packing Plant", OJSC "Orsha Meat Canning Plant").

The amounts of interest paid on such loans are not included in the cost of goods sold or non-operating expenses taken into account when taxing profits. In turn, the amounts of interest received by these organizations from agricultural organizations (which are the actual consumers of funds within the framework of the said Decree) are not included in non-operating income.

There are no restrictions on the deduction of VAT amounts presented by sellers in primary documents and electronic invoices when acquiring goods, works, services, and property rights at the expense of such loans.

3. Features of determining the VAT tax base for road carriers

Since January 1, 2023, the tax base for value added tax for Belarusian road carriers engaged in international cargo transportation, carried out sequentially by several carriers under a single CMR consignment note, is determined as the amount received (or to be received) from the customer under the transportation agreement for the entire transportation as a whole, less the funds transferred (or to be transferred) to the carrier (carriers) involved in carrying out such transportation.

Consequently, the amount of turnover subject to VAT at a rate of 0% includes only the cost of transportation carried out by the Belarusian carrier using its own resources.

Please note that the provisions of the letter of the Ministry of Taxes and Duties of the Republic of Belarus dated September 7, 2022 No. 2-1-10/05274 are applicable in such a situation only until January 1, 2023.

 

4. Information on income paid by a tax agent

Since 2023, every tax agent is obliged to provide tax authorities with information on income of individuals recognized as objects of personal income tax, taxed at various personal income tax rates, including information on benefits and amounts of personal income tax. The list of information that is not required to be provided is established in Part 2 of Article 85 of the Tax Code of the Republic of Belarus. These include, for example, information:

- on income in the form of winnings (returned non-winning bets);

- on income related to state secrets, banking secrecy;

- on income from the sale of crop production grown by an individual on their plot;

- on income from the collection and sale of medicinal plant raw materials, wild berries, nuts, mushrooms, etc.;

- on income from the sale of recyclable materials;

- on loans, credits;

- on compensation exempt from personal income tax in accordance with paragraph 4 of Article 208 of the Tax Code;

- on income from trade union organizations exempt from personal income tax in accordance with paragraphs 11-1 and 38 of Article 208 of the Tax Code.

Information must be submitted on all individuals to whom income was paid (this applies to both citizens of the Republic of Belarus and foreign citizens, both recognized and not recognized as tax residents of the Republic of Belarus). For 2023, the deadline for submission is no later than April 1, 2024.

Read in detail on the website of the Ministry of Taxes and Levies about the procedure for providing information, as well as its form and format: https://nalog.gov.by/individuals_income_2023/

5. On accounting under the simplified tax system (STS)

Keeping records in the income and expense register by organizations applying the simplified tax system (STS) is mandatory, regardless of the taxpayer's decision to maintain accounting records.

At the same time, during the period of accounting on general grounds, the book of income and expenses may not keep records necessary for the calculation of "import" VAT and VAT on purchases from foreign business entities (Section V), the tax agent's records for personal income tax (Section II), records related to the calculation and expenditure of funds of the Social Protection Fund (Section III), as well as records of objects for property tax (Section IV). Section I for keeping records of gross revenue and Section VI for keeping records of the number of employees remain mandatory for completion.

 

1. Recovery of arrears in payments to the budget from the debtors' funds of the taxpayer organization

Recovery from cash, electronic money of the taxpayer organization's debtors is carried out on the basis of a decision (order) of the head (his deputy) of the tax authority at the place of taxpayer registration. The decision is made based on the totality of the following conditions:

- the taxpayer has arrears in taxes, fees (duties), penalties;

- the deadlines for the debtor's obligations to the taxpayer have expired;

- the statute of limitations for accounts receivable has not expired.

We draw attention to the obligation of the taxpayer to submit to the tax authority a list of debtors in the established form and copies of documents confirming the fact of accounts receivable no later than 5 business days from the date of occurrence of arrears in payments to the budget. Failure to fulfill this obligation entails a fine of up to 20 basic units and serves as grounds for carrying out measures to identify the property and debtors of the taxpayer.

2. Marking of "children's" water

In Russia, from 01.09.2023, marking with identification means of packaged water classified as food products for children's nutrition is introduced. Marking of water put into circulation before 01.09.2023 is not provided. That is, the circulation of residues is allowed until the end of the product's shelf life.

The EEC Council's decision provides for the possibility for economic entities of the EAEU member states, where the marking of packaged children's water has not been introduced, to obtain marking codes from their national marking system operators (in the Republic of Belarus, RUP "Izdatelstvo "Belblankavyyd" is such an operator). To apply to the shipped products, marking codes must be obtained from the operator.

Belarusian exporters of children's water to the Russian Federation should coordinate in advance with the recipients the necessity of marking products supplied before 01.09.2023.

3. Tax benefits for health resort organizations

Sanatorium-resort and health resort organizations, as well as other organizations using their facilities for sanatorium-resort treatment and health improvement of the population, are exempt from value added tax, real estate tax, and land tax.

The specific list of organizations that can take advantage of the benefit is defined in Appendix 2 to the Resolution of the Council of Ministers of the Republic of Belarus dated 26.10.2021 No. 610 (as amended by the Resolution dated 03.06.2023 No. 366).

Rent for land plots of sanatorium-resort and health resort organizations is not calculated or paid. The list of such organizations is defined in Appendix 1 to the said resolution.

4. How to find the details for tax payment

On the website of the Ministry of Taxes and Duties of the Republic of Belarus (https://nalog.gov.by/), there is a section "Details for tax payment" on the main page. Enter the section, and two links will open:

I) list of budget accounts

Select the inspection (for Miory taxpayers – inspection code 312), then select the budget type: republican or local, and then – search.

Details of payment to the republican budget vary by currency of payment, while to the local budget – by budget sub-level: basic, primary, regional. The gradation of local budgets may be determined, for example, by the payer's subordination, the payer's location, or the objects used by them.

If the type of budget into which the payment is credited is not precisely known, select "all budgets" and the "Search" function will provide results in tables, each with a hint "to view the list of payments made to the republican (local) budget, click on the link"). Following the link will help determine the budget type (level).

II) List of budget payments

In this section, by the name of the tax, determine the payment code, which is indicated when filling out payment documents.

5. Use of cash registers: what will change from July 22, 2023

From 22.07.2023, when carrying out passenger road transport by taxi, payments can be accepted either using a cash register combined with a taximeter, or using a software-based cash register. The requirement for mandatory use of cash register equipment and a card payment terminal does not apply to taxi vehicles carrying out passenger transportation, the order and payment of which are carried out solely through an electronic information system (EIS) using bank payment card details.

Owners of EIS that accept payments for taxi services ordered and paid for through EIS using only bank payment card details are obliged to send an electronic receipt to the transport customer at their specified email address via EIS. In this case, if the EIS owners are also payment aggregators (accept payments to third parties and transfer the received funds to their recipients), they are obliged to ensure separate accounting of payment acceptance operations for each carrier.

 

1. On the penalty rate

Since May 31, 2023, the penalty rate charged for late payment of taxes, duties (fees) has been reduced and amounts to 0.0271% for each day of payment delay. For comparison, as of January 1 of the current year, the penalty rate was 0.0333%. This is the fifth reduction since the beginning of the year, occurring synchronously with a decrease in the refinancing rate set by the National Bank of the Republic of Belarus.

2. Retail sale of smoking products

Since January 1, 2023, the retail sale of non-tobacco nicotine-containing products and liquids for electronic smoking systems, including those contained in electronic smoking systems, is subject to licensing. Business entities that previously carried out such activities have the right to continue them without a license until July 1, 2023. After the specified date, a license to carry out retail trade in alcoholic beverages, tobacco products, non-tobacco nicotine-containing products, and liquids for electronic smoking systems is mandatory.

Business entities that, as of January 1, 2023, held a license for the retail sale of alcoholic beverages and (or) tobacco products (the "tobacco products" component) and sold non-tobacco nicotine-containing products and liquids for electronic smoking systems, have the right to continue carrying out this activity, but provided that a notification in the form established by the Ministry of Antimonopoly Regulation and Trade (resolution dated November 16, 2022 No. 76) is sent to the licensing authority by July 1, 2023.

3. On the submission of accounting policy provisions by newly established organizations

Starting from 2023, a newly established organization that prepares financial statements in accordance with accounting and reporting legislation is obliged to submit its accounting policy to the tax authority for the current tax period no later than 20 working days from the date of its establishment. A similar requirement applies to foreign organizations specified in subparagraphs 1.5 and 1.6 of paragraph 1 of Article 70 of the Tax Code (tax representatives) from the moment they are registered or their registration details are updated in the State Register of Taxpayers.

As a general rule, an organization can submit its accounting policy in one of the following ways:

- in the form of an electronic document of free format "Report with attachment";

- on paper in the form of a duly certified copy.

Failure to submit the accounting policy will be grounds for applying administrative liability measures.

 

 

1. On land tax for energy and gas supply organizations

In connection with the obligation of state registration of energy distribution system objects (power lines, heating networks) by energy and gas supply organizations before 01.01.2028, the calculation of land tax by such organizations is carried out as follows:

1) for land plots on which objects that are capital structures are located - for the period from 01.01.2020 to the last day of the last month of the quarter in which the date of the decision to withdraw and grant land plots falls (after such a decision is made).

No later than the 20th day of the first month of the quarter following the quarter in which the decision is made, organizations shall:

- make changes to the tax declarations (calculations) for land tax (or submit them) for the tax periods from 2020 to the calendar year preceding the year in which the decision is made, and simultaneously provide information on the amounts of land tax calculated in connection with clarifications for the specified periods of declaration submission

- submit to the tax authority at the place of registration notifications on expropriated and provided land plots for the tax period in which the decision was made

- pay land tax for tax periods from 2020 to the calendar year preceding the year of the decision, no later than the 22nd day of the first month of the quarter following the quarter in which the decision was made, and for the tax period in which the decision was made - no later than February 22 of the year following the calendar year of the decision. Penalties are not accrued.

2) for land plots on which facilities that are not capital structures are located - for each tax period starting from 01.01.2020 to the last day of the last month of the quarter in which the decision date falls, and taking into account the features* established in Part 2 of Clause 3 and Clause 4¹ of Article 240 of the Tax Code of the Republic of Belarus.

* the functional use of land plots under power lines with a voltage below 35 kV is defined as a production zone, the tax base calculation for them is made based on 1.5 sq.m. per support

Organizations make changes to tax declarations (calculations) for land tax for the tax periods of 2020 - 2021 no later than 07.20.2023, simultaneously submit information on the amounts of land tax calculated in connection with clarifications for the specified periods of declaration submission, and pay the tax no later than 07.24.2023. Penalties on the tax are not accrued.

2. Under what conditions is it legal to "taxify"?

Providing passenger transportation services on a paid basis is possible only after state registration as an entrepreneurial entity (individual entrepreneur or legal entity). Individuals are prohibited from carrying out this activity.

A registered business entity must notify the local executive body (in writing or electronic form) before commencing transportation.

A taxi vehicle must be equipped with a software cash register or a cash register combined with a taximeter, with a control device of the tax authorities installed.

Card payment terminals must also be installed and used, which ensure, among other things, the acceptance of payments when using bank payment cards of the BELKART, Visa, and Mastercard payment systems.

Upon completion of a road transport service, a taxi driver, when settling in cash or by bank payment card, is obliged to issue a passenger a payment document confirming the payment for the service, and in cases of payment for the service by cashless means using electronic information systems (EIS) – to send an electronic receipt to the email address specified by the customer.

To carry out transportation, one must either conclude an agreement on the provision of services with a taxi dispatcher or independently ensure the organization and management of the taxi passenger transportation process, including using EIS. Carriers not using taxi dispatcher services are obliged to submit information on completed transportation in the form of an electronic document to the relevant regional tax inspectorate (Minsk city) by the 20th day of the month following the reporting quarter.

The obligation to use cash registers and (or) terminals does not apply to the acceptance of payments addressed to them in cashless form using other payment instruments and (or) electronic money when carrying out regular or irregular road passenger transportation (except for taxi services).

In their activities, business entities are obliged to ensure the completeness of the reflected revenue in accounting and tax returns. Individual entrepreneurs can only operate by paying income tax; legal entities can apply either the simplified taxation system or the general procedure with profit tax payment.

When hiring employees, salary payment must be documented with mandatory calculation, withholding, and transfer of income tax to the budget, and submission of a tax return.

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Regarding the Use of Cash Registers 

The Tax Inspectorate reminds individual entrepreneurs and organizations that cash payments when carrying out retail trade of both food and non-food products, including at fairs and market stalls, must be made using cash registers!

Business entities using cash registers are granted the right, with the consent of the buyer (consumer), to generate and issue a purchase receipt electronically (without a paper duplicate). The buyer's consent (including verbal consent) to issue an electronic receipt must be obtained before the cash is accepted.

Please note: from 01.07.2025, it is prohibited to use cash registers that do not meet the requirements established by the Ministry of Taxes and Duties and the State Committee for Standardization. Organizations and individual entrepreneurs must upgrade their cash registers or purchase new ones by this date. A list of models suitable and unsuitable for upgrading is tentatively scheduled to be prepared by 01.08.2023. To obtain information on the possibility of upgrading, business entities owning cash registers should contact the service centers with which they have contracts; owners of software-based cash registers should contact the software cash register system operators accordingly.

 

Regarding Expenses Considered for Taxation 

From January 1, 2023, the fee for organizing the collection, disposal, and/or utilization of waste, calculated in the established manner, is included by legal entities in the production and sales costs of goods (works, services), property rights.

Prior to 01.01.2023, such a fee was included in expenses exclusively in the period it was paid into the special account of the secondary raw materials operator.

Transitional provisions: fees calculated for reporting periods but not paid into the operator's special account before 01.01.2023 are included by legal entities in expenses in the reporting period in which they are paid into the operator's special account.

 

Regarding the application of VAT rate on sunflower oil

The VAT rate applied to the import and sale of sunflower oil within the territory of the Republic of Belarus depends on its classification according to the EAEU TN VED. Thus, for positions included in the list of goods according to Appendix 26 to the Tax Code (1512 11 910, 1512 11 900 2, 1512 11 900 9), a VAT rate of 10% is applied. For positions that include sunflower oil for technical or industrial use, not contained in Appendix 26 to the Tax Code (1512 11 100 0, 1512 19 100 0), VAT is paid at a rate of 20%.

In this case, if the sunflower oil meets the requirements that allow its use for the production of food products, then regardless of the purposes for which it was actually used, such oil is classified under sub-positions 1512 11 910 1, 1512 11 910 9, 1512 11 900 2, 1512 11 900 9 of the EAEU TN VED, and a VAT rate of 10% is applied to its import and (or) sale.

*This position has been developed by the Ministry of Taxes and Duties, taking into account the clarifications of the State Customs Committee.

 

On the creation of a corrected electronic invoice (ESChF)

A corrected ESChF is issued in case of incompleteness of information or errors requiring its cancellation, discovered in a previously issued ESChF, and must contain a reference to the number of the previously issued (original) ESChF and all new indicators. When issuing a corrected ESChF, the original ESChF and its indicators are canceled. If the buyer has signed the original ESChF, the corrected ESChF must also be signed by them.

A corrected ESChF is created in the "Sent. Issued" folder by selecting the required original ESChF and activating the "Issue corrected" function from the menu. The number of the original is entered in line 5 "To ESChF". In line 5.1 "ESChF cancellation date", the date equal to the date of the transaction from line 3 of the original ESChF should be indicated.

Additionally, in line 31 "Additional information", it is mandatory to provide information on the reason for creating the corrected electronic invoice. For example, "The electronic invoice was created due to incorrect application of the VAT rate."

 

Indicator of the number of employees in the tax return of a tax agent – legal entity 

In line 2 of section III of part I and line 2 of section II of part III of the tax return (calculation) of a tax agent for personal income tax, the indicator "Average number of employees, persons." has been introduced instead of the indicator "Average number of employees, persons." This indicator is reflected with two decimal places and is determined by the organization as the sum of:

- the number of employees on the payroll on average for the period from the beginning of the year to the last month of the reporting quarter inclusive (excluding employees on maternity leave, childcare leave up to 3 years);

- the average number of part-time employees whose primary place of employment is with other employers;

- the average number of individuals who performed work under civil law contracts for the performance of work or provision of services, if payments for the performed work are made to individuals (excluding individual entrepreneurs).

Line 3 of section III of part I of the tax return is filled in only by legal entities that have subdivisions (branches).

 

On the submission of tax returns in electronic form 

From 01.01.2024, in accordance with the norms of Law of the Republic of Belarus No. 230-Z of 30.12.2022 "On Amendments to Laws on Taxation", organizations are required to submit tax returns (calculations) in established formats as electronic documents, with the exception of foreign organizations that do not carry out activities in the Republic of Belarus through a permanent establishment.

In this regard, we draw the attention of non-profit organizations that do not carry out entrepreneurial activities (including garage cooperatives, garden associations, religious, public organizations and associations) to the need for timely connection to electronic document flow in relations with the tax authority.

For example, starting from 01.01.2024, it will be impossible to submit an income tax return (tax agent) "on paper" or to sign a tax return for land tax, pre-filled and sent to the Ministry of Taxes and Duties portal by the tax authority.

 

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1. On the functioning of the Portal of electronic invoices (vat.gov.by)

From June 19, 2023, the VAT invoice portal will cease to serve and support users of operating systems Windows XP, Windows Vista, Windows Server 2003. The functioning of the Portal from these operating systems will be impossible.

2. On expenses taken into account when taxing profits (salary)

Organizations may include in full the labor remuneration of employees whose duties include ideological work in the expenses taken into account when taxing profits, if:

- the employee combines labor functions with the functions of an ideologist;

- payments are not related to expenses that are excluded when calculating profit tax in accordance with subparagraph 1.3 of paragraph 1 of Article 173 of the Tax Code;

- payments are not related to expenses that are regulated in accordance with subparagraph 2.1 of paragraph 2 of Article 173 of the Tax Code.

 The Tax Code does not provide for the obligation to distribute the salaries of employees who combine ideological work with duties related to the organization's activities.

The salaries of employees engaged exclusively in ideological work are subject to inclusion in non-operating expenses on the basis of subparagraph 3.29 of paragraph 3 of Article 175 of the Tax Code.

3. On expenses taken into account when taxing profits (ideology)

Expenses incurred in connection with ideological events may be included in non-operating expenses for profit taxation purposes, provided they are reflected in accounting records based on primary accounting documents.

These include, for example, expenses related to:

- the purchase of flags of the Republic of Belarus, posters, and other products with state symbols;

- participation in ideological events, including official ceremonies and cultural and mass events on the occasion of state holidays, festive days, and memorable dates (including the purchase of flowers, souvenirs, and expenses for transporting employees to participate in such events);

For reference. The list of state holidays, festive days, and memorable dates is established by Decree of the President of the Republic of Belarus No. 157 of March 26, 1998, "On State Holidays, Festive Days, and Memorable Dates in the Republic of Belarus."

- conducting and participating in republican charitable or thematic campaigns ("Our Children," "Knowledge Day," "Forest Week," etc.);

- organizing and holding meetings and events with labor and Great Patriotic War veterans;

- organizing and conducting work related to the implementation of youth policy.

However, the following expenses, for example, **cannot** be taken into account when determining taxable profit:

- for organizing and conducting competitions within work collectives; for conducting recreational, cultural, and mass work (except when such work is carried out on the occasion of state holidays, festive days, and memorable dates);

- for carrying out work to provide social assistance to members of the work collective;

- for organizing excursion trips;

- for holding ceremonies, fireworks, and pyrotechnics in honor of the organization's anniversary, professional holiday, or on the occasion of employees' birthdays, etc.;

- for creating museums of the enterprise's history.

4. On expenses taken into account for profit taxation (business trips)

Business trip expenses of employees sent on a business trip, incurred in the manner and amounts established by the Resolution of the Council of Ministers of the Republic of Belarus of March 19, 2019 No. 176, for the purposes of calculating profit tax are taken into account as part of normalized expenses on the basis of subparagraph 1.1 of paragraph 1 of Article 171 of the Tax Code.

This rule applies to both employees performing ideological work along with their main production functions, and employees engaged exclusively in ideological work.

5. On expenses taken into account for profit taxation (holidays)

Expenses for holding official ceremonies, military parades, artillery salutes and fireworks in accordance with the legislation on the occasion of state holidays, festive days and memorable dates are included in other normalized expenses taken into account for profit taxation, in accordance with subparagraph 2.3 of paragraph 2 of Article 171 of the Tax Code.

Consequently, the application of these norms is possible only if the following conditions are met simultaneously:

- the organization's expenses for holding ceremonial events are incurred on the occasion of holidays and dates, the list of which is established by the Decree of the President of the Republic of Belarus of March 26, 1998 No. 157 "On State Holidays, Festive Days and Memorable Dates in the Republic of Belarus".

- holding a ceremonial event on these days is provided for by law.

The organization's expenses for holding relevant events on the initiative of the organization, and not in accordance with the legislation, are not included in such expenses.

5. On benefits for property taxes of consumer cooperation organizations

Trading facilities and public catering facilities of consumer cooperation organizations located in rural areas, as well as land plots occupied by such facilities, are exempt from real estate tax and land tax. The exemption applies to both operating and non-operating facilities, regardless of their functioning.

At the same time, retail outlets must be equipped for selling goods, while public catering facilities may not be equipped for public catering.

6. Transport Tax for Organizations

In 2023, advance payments of transport tax are to be paid no later than:

March 22 – for the 1st quarter

June 22 – for the 2nd quarter

September 22 – for the 3rd quarter.

Please note that the advance payment calculation is based on the presence of vehicles registered with the State Automobile Inspectorate as of the 1st day of each of the specified quarters (01.01.2023, 01.04.2023, and 01.07.2023) and the rate established in Appendix 27 to the Tax Code. 25% (1/4) of the amount received is to be transferred to the budget no later than 22.03.2023.

For organizations – lessees, the following specifics are provided: as is known, until 01/21/2019, vehicles transferred under financial lease (leasing) were registered with the State Automobile Inspectorate in the name of the lessors (after the specified date, vehicles are registered in the name of the lessees). For vehicles leased by an organization before 01/21/2019, purchased by it, but not re-registered with the State Automobile Inspectorate, the taxpayer of the transport tax is the organization – the lessee. Until the vehicle is re-registered with the State Automobile Inspectorate, such an organization calculates and pays the transport tax and advance payments on it based on rates increased 2 times. It should be noted that the tax calculated in this way is not taken into account when calculating profit tax.

7. On Free Economic Zone Costs

Contributions to the free economic zone development fund made by SEZ residents in accordance with agreements on the terms of activity in the respective SEZ are included by them in the costs of production and sale of goods (works, services), property rights, taken into account when taxing profits, in accordance with paragraph 1 of Article 170 of the Tax Code of the Republic of Belarus. This rule has been in effect since 01.01.2019.

8. On Taxation of Income Received in Ukraine

In connection with Ukraine's unilateral decision to terminate the Agreement between the Government of the Republic of Belarus and the Government of Ukraine for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Property, the provisions of this Agreement shall not apply to income accrued (paid) from 01.01.2023, as well as to profits, property for tax periods beginning from 01.01.2023.

What this means:

- if a Belarusian taxpayer receives income in 2023, which has been taxed in Ukraine, then taxes will also be paid on this income in the Republic of Belarus in accordance with national legislation, without offsetting the amounts of taxes paid in Ukraine;

- if a Ukrainian taxpayer receives income from sources in the Republic of Belarus in 2023, then tax on it will be paid to the Belarusian budget, regardless of whether the income is subject to taxation in Ukraine.

Certificates of taxpayer residency and of amounts of tax paid to the budget are not issued and are not accepted for consideration as a document allowing to offset the amounts of tax paid or to pay tax in only one of the countries.

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1. On maintaining records under the simplified tax system from 2023

The form of the book of accounting for income and expenses of organizations applying the simplified tax system (the Book) and the procedure for its completion are approved by the resolution of the Ministry of Taxes and Duties of the Republic of Belarus, the Ministry of Finance of the Republic of Belarus, the Ministry of Labor and Social Protection of the Republic of Belarus and the National Statistical Committee of the Republic of Belarus dated November 28, 2022 No. 35/54/75/133.

The form of the book includes:

• Section I for accounting for gross revenue;
• Section II for accounting necessary for filling out the tax declaration (calculation) of the tax agent for income tax, as well as filling out information on income of individuals provided by tax agents in accordance with paragraph 6 of Article 85 of the Tax Code,
• Section III for accounting for the purpose of calculating mandatory insurance contributions and other payments to the Social Protection Fund;

Section IV for accounting of capital structures for the purposes of calculating property tax;

Section V for accounting that ensures the calculation of "import" VAT and VAT on purchases from foreign business entities;

Section VI for accounting of the number of employees.

Sections I and VI of the income and expense accounting book are mandatory, regardless of whether the taxpayer on the simplified tax system keeps accounting records or not.

The income and expense accounting book is kept on paper and (or) in electronic form. Organizations have the right to keep the income and expense accounting book in electronic form in the taxpayer's personal account (with the exception of Section III for accounting for deductions to the Social Protection Fund, which must be kept on paper or in electronic form by the organization).

Despite the fact that the Resolution came into force on 01/29/2023, to ensure uniformity in accounting, organizations have the right to reflect information for the period from 01/01/2023 in the Book according to the new form.

2.On keeping the Income and Expense Accounting Book by taxpayers on the simplified tax system in their personal account

From February 1, 2023, a new service "Income and Expense Accounting Book for Simplified Tax System Taxpayers" has been operating on the Ministry of Taxes and Duties portal, which allows accounting in the Book to be kept online in the taxpayer's personal account on the Ministry of Taxes and Duties portal.

The service is available to simplified tax system taxpayers in the Taxpayer's Personal Account and is operating in a pilot mode.

The simplified tax system tax return generated through this service and submitted to the Ministry of Taxes and Duties portal is considered duly submitted.

The "Income and Expense Accounting Book for Simplified Tax System Taxpayers" service will simplify tax accounting due to the ability to:

• automatically include in the income and expense accounting book data on cash and non-cash transactions from the cash register control system and bank data on cash flow on the account;
• automatically generate a tax return and calculate the simplified tax system tax;
• use various directories, hints, databases.

Maintaining a record in the book of income and expenses using this service is the taxpayer's right.

The "Book of Income and Expenses for Simplified Taxation System Taxpayers" service provides for maintaining sections of the book of income and expenses administered exclusively by tax authorities. In this regard, the section for accounting for the calculation and payment of contributions to the Social Protection Fund (FSZN) of this book is not maintained on the Ministry of Taxes and Levies portal (only in paper form or in electronic form by the organization).

Detailed information on the application of the simplified taxation system in 2023 and the "Book of Income and Expenses for Simplified Taxation System Taxpayers" service can be found on the Ministry of Taxes and Levies website on the "USN 2023" page, specially created and located in the "Current" section, at the link https://nalog.gov.by/simplified_taxation_system/

3. On excise stamps for marking tobacco products

On February 15, 2023, Resolution of the Council of Ministers of the Republic of Belarus No. 120 of February 11, 2023 "On Amendments to Resolution of the Council of Ministers of the Republic of Belarus No. 1610 of October 28, 2008" came into force, according to which a new sample of self-adhesive excise stamp for marking tobacco products imported into the Republic of Belarus and marked in the Republic of Belarus at customs warehouses was introduced. The Regulation on excise stamps for marking tobacco products imported into the Republic of Belarus has been supplemented with a marking method that allows marking tobacco products with a new sample excise stamp over the cellophane film.

4. On fuel circulation issues

On December 11, 2022, Decree of the President of the Republic of Belarus No. 9 of July 12, 2005 "On Additional Measures to Combat the Illegal Circulation of Petroleum Liquid Fuel in the Republic of Belarus" (hereinafter referred to as Decree No. 9) lost its effect.

In this regard, for legal entities and individual entrepreneurs carrying out the import of petroleum liquid fuel (motor gasoline, diesel and domestic fuel of all grades, hereinafter referred to as fuel) by road transport to the territory of the Republic of Belarus from the territory of the Customs Union member states, the requirements for marking accompanying documents for fuel with control marks have been canceled; transportation and storage of fuel imported (brought) into the republic only with accompanying documents with control marks; and the payment of funds to the republican budget as a condition for importing fuel from the territory of the Customs Union member states. In addition, the special requirements provided for by the Decree are not applied to the settlement procedure for wholesale trade in fuel.

5. On differentiated accounting of data on goods sold

From March 10, 2023, business entities engaged in the sale of goods in a retail facility with a retail area of 200 sq.m. or more must ensure differentiated accounting of data on goods sold that are subject to commodity numbering and barcoding, using the international article number (Global Trade Item Number (GTIN), applied to the goods (label, packaging) in the form of machine-readable symbols (barcode identification codes). The source of data on such a number is ePASS. In addition, the cash register equipment must ensure the formation of the product name in the payment document.

The list of goods that may not be marked with barcodes is defined in clause 23 of the Regulations on commodity numbering and barcoding of goods (products) in the Republic of Belarus, approved by the Resolution of the Council of Ministers of May 24, 2000 No. 748. When selling such goods, the method of ensuring differentiated accounting is determined by the retail entity independently.

When selling goods not listed in paragraph 23 of the aforementioned Regulation, differentiated accounting must be ensured using the GTIN contained in ePASS. Such accounting can be organized not only by using appropriate cash register equipment that ensures differentiated accounting but also by using special technical means (scanners) that read the GTIN to obtain information about the name, quantity, and cost of goods offered for sale and sold.

6. On Making Payments Using QR Codes and/or Mobile Applications

Legal entities and individual entrepreneurs, subject to compliance with the payment acceptance requirements established by law, may also accept payments through other payment instruments and electronic money in accordance with the legislation on payment systems and payment services, with such payments processed through cash register equipment. This means that in addition to bank payment cards, payments can be made using QR codes and/or mobile applications, with such payments processed through cash register equipment. The buyer (consumer) is issued a payment document confirming the payment for the goods (work, services) for the amount of the transaction conducted.

At the same time, the use of cash register equipment is not required when accepting only non-cash funds and/or electronic money in accordance with banking legislation, provided that the following conditions are met simultaneously:

• the acceptance (transfer) of payment instruments is carried out without direct customer service related to the acceptance of payment instruments;
• the acceptance of payment instruments for legal entities and individual entrepreneurs is carried out through banks, non-bank credit and financial institutions, or payment agents.

Thus, if non-cash funds are accepted via QR codes or a mobile application with the direct involvement of a cashier (individual entrepreneur), such payments must be processed through cash register equipment with the issuance of a receipt to the buyer.

The cash register operation is carried out as a non-cash sale by other non-cash methods.

7. On settlements using cryptocurrencies

The circulation of digital signs (tokens) in the Republic of Belarus is regulated by Decree of the President of the Republic of Belarus No. 8 of December 21, 2017 "On the Development of Digital Economy".

The cryptocurrency bitcoin, another digital sign (token) used in international circulation as a universal means of exchange.

The Decree does not provide for the possibility of concluding transactions (operations) with tokens (including cryptocurrencies) by business entities that are not residents of the High-Tech Park.

Also, in accordance with the norms of national legislation regulating the procedure for settlements for goods (works, services) sold, tokens (including cryptocurrency) are not a means of payment in the Republic of Belarus.

Thus, the use of tokens for settlements for goods (works, services) by non-residents of the HTP is unlawful.

8. On the electronic service

The information electronic service "Question-Answer" (https://nalog.gov.by/question-answer/) is available on the official website of the Ministry of Taxes and Duties, where you can find up-to-date answers to taxation questions.

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1. Shall we think about this tomorrow?

Less than a month remains until the day when accepting cash and other means of payment when selling food products, including agricultural products, at markets and fairs will only be possible through cash register equipment. The festive bustle does not end on December 31; buyer activity continues during the "long" holidays and in the pre-Christmas days. If you have not taken care of installing a cash register or a software cash register in advance, you should be prepared for a long "downtime". It should be clearly understood that submitted applications are not processed instantly.

From January 1, 2023, retail trade without cash register equipment is prohibited!

Your business is your brainchild, and ensuring its well-being and legality is your responsibility. You hardly need losses in the form of discarded perishable goods, "wasted" rental payments for retail spaces, or lost profits from sales.

Therefore, do not postpone acquiring cash register equipment, concluding agreements with a software cash register operator, or with a technical service and repair center for cash registers and with RUE "Information and Publishing Center for Taxes and Levies" until tomorrow.

Please also note that in 2023-2025, it is planned. In this regard, it is reasonable to clarify with the seller of the cash register equipment about the possibility of subsequent upgrading of its functionality to the relevant parameters.

The necessary information can be found in the public domain on the Internet:

• on the purchase and connection of cash register equipment to the SKKO https://skko.by/(in the "Cash Register Equipment Control System" section)
• on the terms of the public agreement for the registration and information service of cash register equipment in the SKKO https://skko.by/
• list of CTOs – https://skko.by/service_centers/
• on permitted models of CRTs https://registry.belgiss.by/
• on software cash register operators –https://info-center.by/services/cashdesks

2. An accessible way to check product safety.

The legality of purchased goods can now be easily verified by installing the free mobile application "Electronic Mark". The Data Matrix digital code applied to the product, scanned with a mobile phone camera, is recognized by the Application, and information about the product (belonging to the declared trademark, type and name, qualitative composition, shelf life, manufacturer, authenticity of marking with identification means, etc.) is displayed on the phone screen.

Information about marking is displayed in a specific color scheme: green color indicates goods in circulation in the Republic of Belarus, yellow is allowed for introduction into circulation in the Republic of Belarus, red means goods cannot be introduced into circulation (either they have been withdrawn, or the authenticity of the marking code has not been confirmed, or there is no information about the goods in the catalog). That is, the statuses of the goods ("marked", "shipped", "introduced into circulation", "imported into the Republic of Belarus", etc.), highlighted in green or yellow, indicate the legality of the goods, while statuses marked in red give reason to doubt their safety.

Identified discrepancies or violations can be reported in the same Application via the "Complaint" button (if necessary, you can attach current photos of the goods, identification means, etc.).

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1. On rent for land plots

By Decree of the President of the Republic of Belarus No. 298 dated 24.08.2022, certain changes were made to the procedure for calculating and paying rent for land plots owned by the state (hereinafter referred to as rent). A number of changes concern relations that arose from 01.01.2022.

Thus, by analogy with land tax, the procedure for calculating rent for energy supply organizations that are part of the state production association of electricity "Belenergo" has been adjusted regarding land plots occupied by structural elements of overhead power lines with a voltage below 35 kilovolts, which are not capital structures or whose state registration is not mandatory. The tax base for such land plots is established as their area and is determined based on the calculation of 1.5 sq.m per support. Functional use, regardless of the intended purpose, is defined as a production zone.

The cadastral value of land plots and the coefficients used to determine the amount of annual rent have been increased (indexed) (Appendix 1 to the Decree of the President of the Republic of Belarus No. 160 dated 12.05.2022 (as amended on 24.08.2022)).

Organizations, when calculating rent (apply reducing coefficients according to Appendix 3 to Decree No. 160 (k 0.2; 0.4; 0.6; 0.8) in relation to land plots (their parts) on which capital structures (their parts) erected after 01.01.2019 are located.

Until January 1, 2025, land plots of public associations of disabled persons (their unitary enterprises and institutions) are exempt from rent.

Calculation and recalculation of rent due to the emergence (disposal) of objects, the emergence (loss) of benefits during the year from 01.01.2022 is carried out quarterly. Previously, such a calculation was carried out monthly. Changes in the calculation of land rent are made no later than the 20th day of the second month of the quarter following the quarter in which the events causing these changes occurred (20.05, 20.08, 20.11).

In addition, from 01.01.2022, organizations calculate and pay rent in a reduced amount according to the decision of the local executive committee or the administration of the FEZ from January 1 of the year in which such a decision is made, if this is directly provided for in it.

Please note! Organizations affected by the changes provided for by Decree No. 298 must calculate (recalculate) the rent for 2022 by 20.11.2022 at the latest, submitting a tax declaration (clarified tax declaration) to the Ministry of Taxes and Levies inspectorate. If there is an amount to be paid, it must be paid to the budget no later than 22.11.2022 (without penalties and sanctions).

If, as a result of the recalculation, the amount of rent is reduced, then after making the appropriate changes to the tax declaration, the overpaid amounts of rent are subject to offset (refund) in the manner prescribed by Art. 66 of the Tax Code. In this case, the amounts of rent reduction must be included in the composition of non-operating income no later than the date of their receipt (subclause 3.39 of clause 3 of Art. 174 of the Tax Code).

2. On payment of advance payments for profit tax

For the fourth quarter of 2022, the profit tax must be paid no later than December 22, 2022. The tax is paid in the amount of two-thirds of the profit tax calculated for the third quarter of 2022. A subsequent recalculation of the profit tax for the entire year 2022 (for additional payment or reduction) is carried out no later than March 20, 2023.

Taxpayers who submit profit tax declarations only based on annual results (e.g., budgetary, public, religious, other non-profit organizations, the Department of Internal Affairs Security) do not calculate or pay advance payments.

3. On the application of the 0% VAT rate for international transportation by multiple carriers

Since April 16, 2022, the conditions for applying the zero rate of value-added tax (VAT) for international cargo transportation services, with respect to the route starting and ending within the territory of the Republic of Belarus, are defined by clause 1.5 of the Decree of the President of the Republic of Belarus of August 24, 2022 No. 298 "On Taxation". Thus, the export of services is confirmed by the following circumstances:

1. the place of acceptance (delivery) of the cargo is located within the territory of the European Union, or the cargo route passes through its territory in transit;

2. the customer's order, contract, order-assignment, or other similar document specifies the route of international cargo transportation and its corresponding part within the territory of the Republic of Belarus;

3. the truck or tractor unit traveled to (from) specially designated places, determined by the Council of Ministers of the Republic of Belarus* for cargo operations and (or) trailer coupling of these vehicles

*defined by the Resolution of the Council of Ministers of April 22, 2022 No. 247 "On the movement of vehicles";

4. the international cargo transportation service, in the part of cargo transportation within the territory of the Republic of Belarus, was provided by legal entities and/or individual entrepreneurs of the Republic of Belarus who are legally entitled to perform international road transport and are subject to the restrictions imposed by the European Union.

5. the international cargo transportation was carried out sequentially by several carriers and documented by an international consignment note (CMR consignment note);

6. the issued CMR consignment note (its copy) contains, among other things, the details of the subsequent carrier (box 17 of the CMR consignment note), the date of receipt of the cargo by the consignee or other person authorized to receive the cargo, certified by them upon completion of the international cargo transportation (box 24 of the CMR consignment note).

In this case, if the essence of such transportation agreement, performed by a Belarusian carrier who is responsible for the entire transportation, does not imply that, in addition to the transportation itself, services related to freight forwarding activities are provided, then the VAT tax base subject to a zero rate is determined as the cost of the entire transportation as a whole, for which payments are made by the Belarusian carrier to the customer.

If, however, the essence of such transportation agreement implies that, in addition to transportation, services related to freight forwarding activities are provided, then the VAT tax base subject to a zero rate is determined by the Belarusian carrier-forwarder in the manner established by paragraph 30 of Article 120 of the Tax Code, namely, based on the remuneration determined as the amount received (or to be received) from the client for the services rendered to him minus the amounts reimbursed by the client, transferred (or to be transferred) to other parties to the agreement. The tax base determined in this manner will not include the cost of services rendered by the engaged foreign carrier.

These approaches are outlined in the joint letter of the Ministry of Transport and the Ministry of Taxes and Levies dated 06.06.2022 No. 03-01-03/4966/2-1-10/03406 and the letter of the Ministry of Taxes and Levies dated 07.09.2022 No. 2-1-10/05274 (posted on 15.09.2022 on the main page of the official website of the Ministry of Taxes and Levies in the section "Explanations and Comments" https://nalog.gov.by/clarifications/).

4. On the traceability of bicycle goods

From 01.12.2022, bicycles (including those with auxiliary engines and tricycles) and bicycle frames (hereinafter referred to as bicycle goods), classified under the unified EAEU TN VED codes 8711 60 100 0, 8711 60 900 0, 8712 00 300 0, 8712 00 700 0, 8714 91 100 7, 9503 00 100 9, imported into the territory of the Republic of Belarus and produced on its territory are subject to traceability.

Business entities engaged in the production, wholesale and (or) retail trade of bicycle goods must:

• conduct an inventory of their existing balances of the specified goods as of 01.12.2022,
• submit this information to the tax authorities at the place of registration in the form of an electronic document for inclusion in the "Goods Traceability System" software complex (PC ST) no later than 01.04.2023.

From December 1, 2022, operations related to the circulation of bicycle goods are subject to electronic consignment notes.

A step-by-step algorithm of actions for business entities when submitting information on the balances of goods subject to traceability (bicycle goods) is posted on the official website of the Ministry of Taxes and Levies in the section Tax Control/Control over specific groups of goods/Goods Traceabilityhttps://nalog.gov.by/tax_control/control_of_goods/traceability/

We remind you that consulting on the application of the traceability mechanism, including work in the PC ST, is carried out by the contact center of the Ministry of Taxes and Levies by phone: 80172292610.

5. On the simplified tax system (STS)

From January 1, 2023, organizations are **not entitled** to apply the STS:

• having one or more branches registered with the tax authorities (within the meaning of Art. 14 of the Tax Code of the Republic of Belarus),
• received monetary funds (cash, non-cash) from other persons, which do not constitute their gross revenue and are not amounts (income) not included by them in gross revenue in accordance with paragraph 2 of Art. 328 and paragraph 4 of Art. 174 of the Tax Code.

These include, for example, money received:

* under transport expedition agreements, commission agreements, or other similar agreements;

* as reimbursement (payment) of expenses (including utility services);

* in connection with participation in settlements between other persons by receiving monetary funds from one person and transferring (remitting) them to another person.

If the receipt of the above-mentioned monetary funds is reflected in non-operating income according to the accounting policy and, accordingly, is included in gross revenue, then the right to apply the simplified tax system is not lost!

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The Ministry of Taxes and Duties Inspectorate for the Polotsk District informs that from January 1, 2023, legal entities and individual entrepreneurs engaged in retail trade of food products, including agricultural products, are obliged to use cash registers. Detailed information can be obtained by phone 74-18-25.

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Regarding the use of the "Oplati" mobile application

The provisions of the Regulation on the use of cash registers and other equipment when accepting payment instruments, approved by the Resolution of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus dated 06.07.2011 No. 924/16, regarding the need to use cash registers and (or) payment terminals do not apply to business entities that accept only non-cash monetary funds and (or) electronic money in accordance with banking legislation, provided that the following conditions are met simultaneously:

• acceptance (transfer) of payment instruments is carried out without direct servicing of business entities by buyers (consumers) related to the acceptance of payment instruments;
• acceptance of payment instruments in favor of business entities is carried out through banks, non-bank credit and financial organizations, payment agents, including using software and hardware infrastructure for card payments, and by other means, including the use of QR codes and (or) mobile applications.

Thus, cashless payment using the mobile application "Oplati" without direct servicing of consumers by an individual entrepreneur or organization (their employees) related to the acceptance of payment instruments does not require the use of cash registers. If cash is accepted with the direct participation of a business entity, such settlements must be carried out using cash registers and issuing a payment document to the buyer (consumer).

2. You can't forbid living beautifully?

During control measures conducted by the Ministry of Taxes and Levies Inspectorate for the Polotsk District, a number of schemes for withdrawing cash from organizations without paying taxes by their actual recipient were revealed. The heads of organizations withdrew revenue from the cash desk, allegedly "for expenses" or under the pretext of subsequent payment of wages to employees. However, there is no evidence that these funds were spent on the needs of the organizations, or returned to the cash desk, or fully paid to other employees: documents confirming expenses or returns are missing, and employees received their wages, but not in the amount declared. Funds spent on the personal needs of the managers themselves were recognized as their taxable income based on the results of inspections. Individuals who received such income were charged about one hundred thousand rubles in income tax.

Do not convince yourself that "veiling" real income under other obligations is a reliable way to avoid paying taxes. Untangling any scheme is only a matter of time. Cherish your reputation, yourself, your loved ones. Live wisely, work honestly.

3. Electronic format of tax returns for all… with minor exceptions

Economic entities are obliged to submit tax returns (calculations) in established formats in the form of an electronic document.

The following have the opportunity to submit a return on paper:

• non-profit organizations that do not carry out entrepreneurial activities,
• foreign organizations that do not carry out activities considered as activities in the territory of the Republic of Belarus through a permanent establishment;
• individual entrepreneurs who are not VAT payers.
• economic entities that are in the process of liquidation (termination of activities), as well as those in respect of which insolvency (bankruptcy) procedures are applied, with the exception of rehabilitation procedures.

It should be noted that this rule also applies to the calculation of the fee for the placement (distribution) of advertising

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About the advertising fee

Belarusian legal entities and individual entrepreneurs who are advertisers have been payers of the fee for the placement (distribution) of advertising since 01.05.2022. Organizations with branches pay the fee for the legal entity as a whole (including the activities of branches) and take it into account when calculating taxable profit as part of expenses.

The form of the calculation for the fee is established in Appendix 39-6 to the Resolution of the Ministry of Taxes and Duties of the Republic of Belarus dated 03.01.2019 No. 2.

The calculation is submitted at the place of registration. For May-June 2022, the calculation is submitted no later than 07.20.2022 (payment – no later than 07.22.2022) indicating the reporting period as the 2nd quarter of 2022.

The calculation is submitted only if there is an object of taxation with the fee (an "empty" calculation is not submitted).

The fee is paid to the republican budget at the place of taxpayer registration (payment code 1904) using the following details:

Beneficiary: Main Treasury of the Ministry of Finance of the Republic of Belarus for the Vitebsk region

UNP 301312008

Account No. BY97AKBB36029130100020000000 at JSC "ASB "Belarusbank" Minsk BIC AKVVBY2X

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1. On the use of cash registers

The Ministry of Taxes and Duties Inspectorate for the Polotsk District informs that in execution of the Comprehensive Plan to Support the Economy, the Resolution of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus dated May 14, 2022 No. 304/12 was adopted, according to which a new deadline for the mandatory use of cash registers by business entities when accepting cash funds for the sale of food products (including agricultural products) at fairs and market stalls is set – from 01.01.2023.

Thus, when carrying out retail trade of food products (including agricultural products) at fairs and market stalls, cash acceptance until December 31, 2022 (inclusive) can be carried out without the use of cash registers.

In this case, cash acceptance is carried out by reflecting the total amount of revenue in cash receipts at the end of the working day (shift), or another period determined by business entities, but at least once every seven days.

Business entities currently using cash registers with installed tax control tools accept cash through these cash registers.

2. On high-tech goods

Since 2022, a new list of high-tech goods has been defined. The new list includes previous items with their adjustments and details in accordance with the requirements of current legislation, as well as new goods: bicycles with an auxiliary electric motor from HS code 8711 60 100 0; unmanned aerial vehicles from HS code 8806, pharmaceutical products from HS code 3006 93 000 0, biological safety equipment, as well as equipment for filtering and purifying exhaust gases from HS codes 8414 70 000 0 and 8421 32 000 0, and others.

We remind you that for organizations selling high-tech goods of their own production, in accordance with the Tax Code, a reduced profit tax rate of 5% is provided for profits derived from the sale of such goods. The conditions for applying the preferential rate are: maintaining separate accounting, production of goods during the period of validity of the certificate of own production, sale of goods during the period of their inclusion in the above list. In addition, dividends accrued by innovative organizations to the Belarusian Innovation Fund and venture organizations are exempt from profit tax (provided that the share of revenue from the sale of high-tech products on an accrual basis from the beginning of the year is at least 50% of the total revenue).

The new list is approved by the Resolution of the Council of Ministers of the Republic of Belarus dated 17.05.2022 No. 308 "On defining the list of high-tech goods".

3. The list of goods subject to traceability has been expanded

From 01.12.2022, bicycles (including those with an auxiliary engine and tricycles) and bicycle frames (hereinafter referred to as bicycle goods) classified under unified HS codes 8711 60 100 0, 8711 60 900 0, 8712 00 300 0, 8712 00 700 0, 8714 91 100 7, 9503 00 100 9, imported into the territory of the Republic of Belarus and produced in its territory, will be subject to traceability.

These changes were introduced by the Resolution of the Council of Ministers of the Republic of Belarus No. 258 dated April 28, 2022 "On Amendments to the Resolution of the Council of Ministers of the Republic of Belarus dated April 23, 2021 No. 250".

Business entities engaged in the production, wholesale and (or) retail trade of bicycle goods are required to:

• conduct an inventory of the existing stocks of these goods as of December 1, 2022,
• submit this information to the tax authorities at the place of registration in the form of an electronic document for inclusion in the "Goods Traceability System" software package (GS TRACE) no later than April 1, 2023.

From December 1, 2022, operations related to the circulation of bicycle goods are subject to electronic consignment notes.

Currently, the list of goods whose circulation is subject to traceability includes domestic refrigerators and freezers, and tires.

We remind you that consultations on the application of the traceability mechanism, including work in the GS TRACE software package, are provided by the Ministry of Taxes and Duties Contact Center by phone: 80172292610. Information and reference materials on this topic are posted on the official website of the Ministry of Taxes and Duties in the section Tax Control / Control over Certain Groups of Goods / Goods Traceability.

4. Pilot Project within the EAEU

By the decision of the Eurasian Economic Commission (EEC) Council No. 2 dated January 21, 2022, a pilot project for the implementation of a traceability mechanism for goods imported into the customs territory of the Eurasian Economic Union (EAEU) will be carried out on the territory of the EAEU from July 1, 2022, to March 31, 2023. Traceability within the pilot project applies to domestic refrigerators and freezers classified under EAEU TN VED codes 8418 10 200 1, 8418 10 800 1, 8418 21 100 0, 8418 21 510 0, 8418 21 590 0, 8418 21 910 0, 8418 21 990 0, 8418 30 200 1, 8418 30 800 1, 8418 40 200 1, 8418 40 800 1, imported into the EAEU customs territory.

In this regard, amendments have been made to the Resolution of the Council of Ministers of the Republic of Belarus No. 250 of 23.04.2021, according to which information on the turnover of such goods is subject to information exchange with the EAEU member states. No later than 01.07.2022, information on the balances of these goods must be submitted by business entities to the tax authorities at the place of registration in the form of an electronic document for inclusion in the "Goods Traceability System" software complex.

5. On tax benefits for electric vehicle owners

In order to stimulate the purchase and use of electric transport, the legislation provides for a number of tax preferences for the period until 31.12.2025:

• electric vehicles imported by legal entities into the territory of the Republic of Belarus, which were manufactured no more than 5 years ago, are exempt from value added tax (VAT);
• auto components* imported by electric vehicle manufacturing organizations into the territory of the Republic of Belarus are exempt from VAT;

*auto components are goods (parts, assemblies, components, chemical and paint products, etc.) necessary for the production of electric vehicles

• - turnover from the sale of electric vehicles in the territory of the Republic of Belarus is exempt from VAT;
• - costs incurred for the installation, modernization, and retrofitting of charging stations, their owners (proprietors) *may* gratuitously transfer to the owners (proprietors) of engineering and transport infrastructure objects to which these charging stations are connected (attached). In this case, gratuitously transferred costs (cost of goods, works, services) are not recognized as a VAT taxable object and are included by the transferring organization in non-operating expenses. The receiving organization does not include the cost of gratuitously received objects in non-operating income;

- upon the acquisition (creation, reconstruction) of electric vehicles, including passenger cars, and the cost of investments in their reconstruction, legal entities have the right to apply an investment deduction within 100% of their initial cost (cost of investments in reconstruction). With regard to charging stations, under the conditions established by the Tax Code, the investment deduction is applied in 2020 within 100% of their initial cost (cost of investments in reconstruction), in 2021 within 80%, in 2022 within 60%, in 2023 within 40%, in 2024-2025 within 30%;

- electric vehicles are not recognized as a taxable object for transport tax.

6. Issuance of electronic invoices instead of previously issued paper ones – correction of ESChF

Taking into account the current circumstances, taxpayers currently have the opportunity to issue paper commercial (cargo-transport) invoices even in cases where the legislation requires the creation of electronic invoices (ETTN). Accordingly, when processing a transaction with a paper invoice, its details must be indicated in the original ESChF. When a business entity is connected to electronic document management regarding a business transaction initially processed with a paper invoice, it is necessary to issue an ETTN.

If the details of the paper invoice were indicated in line 30 of the issued original ESChF, then after creating the electronic invoice, it is necessary to issue an amended ESChF to the original ESChF, indicating:

in line 3 "Date of transaction" the date equal to the date indicated in line 3 of the original ESChF;

in line 5 "To ESChF" – the number of the original ESChF;

in line 5.1 "Date of cancellation of ESChF" the date equal to the date indicated in line 3 of the original ESChF;

in line 30 "Contract (agreement) for the supply of goods (performance of work, provision of services), transfer of property rights" – the details of the paper invoice and the electronic invoice;

in line 31 "Additional information" – the reason for creating the amended ESChF, for example, "due to the creation of ETTN instead of a paper invoice".

Subsection "Information for individual entrepreneurs"

1. On the Use of Cash Registers

The MNS Inspection for the Polotsk District reports that in pursuance of the Comprehensive Plan for Economic Support, the Resolution of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus No. 304/12 dated May 14, 2022, has been adopted, which establishes a new deadline for the mandatory use of cash registers by business entities when accepting cash for the sale of food products (including agricultural products) at fairs and market stalls – from 01.01.2023.

Thus, when carrying out retail trade of food products (including agricultural products) at fairs and market stalls, cash acceptance until December 31, 2022 (inclusive) can be carried out without the use of cash registers.

In this case, cash acceptance is carried out with the reflection of the total amount of revenue in cash receipts at the end of the working day (shift), or another period determined by business entities, but at least once every seven days.

Business entities currently using cash registers with control facilities of tax authorities carry out cash acceptance through these cash registers.

2. The List of Traceable Goods Has Been Expanded

From 12.01.2022, bicycles (including those with auxiliary engines and tricycles) and bicycle frames (hereinafter referred to as bicycle goods) classified under unified EAEU TN VED codes 8711 60 100 0, 8711 60 900 0, 8712 00 300 0, 8712 00 700 0, 8714 91 100 7, 9503 00 100 9, imported into and produced in the Republic of Belarus, will be subject to traceability.

Such changes were introduced by the Resolution of the Council of Ministers of the Republic of Belarus No. 258 dated 28.04.2022 "On Amending the Resolution of the Council of Ministers of the Republic of Belarus No. 250 dated April 23, 2021".

Business entities engaged in the production, wholesale and (or) retail trade of bicycle goods must:

• conduct an inventory of the remaining specified goods as of December 1, 2022,
• submit this information to the tax authorities at their place of registration in the form of an electronic document for inclusion in the "Goods Traceability System" software package (PK SPT) no later than April 1, 2023.

From December 1, 2022, operations related to the circulation of bicycle goods are subject to electronic invoice processing.

Currently, the list of goods whose circulation is subject to traceability includes domestic refrigerators and freezers, and tires.

Please note that consultations on the application of the traceability mechanism, including work in the PK SPT, are provided by the Ministry of Taxes and Levies contact center by phone: 80172292610. Information and reference materials on this topic are posted on the official website of the Ministry of Taxes and Levies in the section Tax Control / Control over Certain Groups of Goods / Goods Traceability.

3. Pilot project within the EAEU

By decision of the Eurasian Economic Commission (EEC) Council No. 2 of January 21, 2022, a pilot project for the implementation of a traceability mechanism for goods imported into the customs territory of the Eurasian Economic Union (EAEU) will be implemented in the EAEU from July 1, 2022, to March 31, 2023. Traceability within the pilot project applies to domestic refrigerators and freezers classified under EAEU TN VED codes 8418 10 200 1, 8418 10 800 1, 8418 21 100 0, 8418 21 510 0, 8418 21 590 0, 8418 21 910 0, 8418 21 990 0, 8418 30 200 1, 8418 30 800 1, 8418 40 200 1, 8418 40 800 1, imported into the customs territory of the EAEU.

In this regard, amendments have been made to the Resolution of the Council of Ministers of the Republic of Belarus No. 250 of April 23, 2021, according to which information on the circulation of such goods is subject to information exchange with the EAEU member states. No later than July 1, 2022, information on the balances of these goods must be submitted by business entities to the tax authorities at their place of registration in the form of an electronic document for inclusion in the "Goods Traceability System" software package.

Consultation on the application of the traceability mechanism, including work in the SPT PC, is provided by the Ministry of Taxes and Duties Contact Center at tel. 80172292610. Information and reference materials on this topic are posted on the official website of the Ministry of Taxes and Duties in the section Tax Control / Control over Certain Groups of Goods / Traceability of Goods.

4. Issuance of electronic invoices instead of previously issued paper ones – correction of ESChF

Given the current circumstances, taxpayers currently have the opportunity to issue paper commercial (cargo-transport) invoices even in cases where the legislation requires the creation of electronic invoices (ETTN). Accordingly, when processing a transaction with a paper invoice, its details must be indicated in the original ESChF. When a business entity is connected to electronic document flow regarding a business transaction initially processed with a paper invoice, an ETTN must be issued.

If the details of the paper invoice were indicated in line 30 of the issued original ESChF, then after creating the electronic invoice, it is necessary to issue an amended ESChF to the original ESChF, indicating:

in line 3 "Date of transaction" the date equal to the date indicated in line 3 of the original ESChF;

in line 5 "To ESChF" – the number of the original ESChF;

in line 5.1 "Date of cancellation of ESChF" the date equal to the date indicated in line 3 of the original ESChF;

in line 30 "Contract for the supply of goods (performance of work, provision of services), transfer of property rights" – the details of the paper invoice and the electronic invoice;

in line 31 "Additional information" – the reason for creating the amended ESChF, for example, "due to the creation of ETTN instead of a paper invoice".

Subsection "Information for Citizens"

1. On the deadlines for payment of personal income tax calculated based on the results of income declaration for 2021

The Tax Inspectorate reminds individuals who have declared income received in 2021 (including from the sale of property, from abroad, as gifts) about the payment of personal income tax, calculated based on the submitted personal income tax declarations, no later than June 1, 2022.

You can pay the tax in any way convenient for you: at bank branches, post offices; via Internet banking (M-banking) and info kiosks, as well as using the Personal Account of the Taxpayer service.

*You can find out your UNP on the official website of the Ministry of Taxes and Duties () in the section Electronic Services / State Register of Taxpayers / "Search for Individuals" (enter your data according to the search option).

Details for payment of personal income tax: Payment recipient: Main Treasury Department of the Ministry of Finance of the Republic of Belarus for the Vitebsk region, UNP 300594330, account BY38AKBB36003230019350000000 in OJSC "ASB "Belarusbank" Minsk BIC AKVVB Y2X. Payment code 00101.

Payment through the ERIP payment system: Payments / Taxes / Vitebsk region / Polotsk district / Polotsk Regional Executive Committee Finance Department / Personal Income Tax / UNP* (Latin font in capital letters)).

2. On tax benefits for electric vehicle owners

In order to stimulate the purchase and use of electric transport, the legislation provides for a number of tax preferences for the period until December 31, 2025:

• for electric vehicles imported into the territory of the Republic of Belarus before March 1, 2022, as goods for personal use by citizens of the Republic of Belarus, foreign citizens and stateless persons permanently residing in the Republic of Belarus, a value added tax (VAT) rate of 0% is applied; from March 1, 2022, a 0% VAT rate applies to such vehicles no older than 5 years (no more than 5 years have passed since their production date);
• the sale of electric vehicles in the Republic of Belarus is exempt from VAT;
• individuals who purchased electric vehicles in the Republic of Belarus at a cost including VAT, under agreements concluded before 01.12.2021, are entitled to a refund of the VAT amount paid by them when purchasing the electric vehicle (in an amount not exceeding 500 basic units established on the day of purchase of the electric vehicle);
• electric vehicles are not subject to transport tax.

Deputy Head of the Inspectorate N.S. Shalamaeva

1. On reflecting in tax accounting expenses reimbursed under lease agreements.

The Ministry of Taxes and Levies Inspectorate for the Polotsk District reminds that when calculating profit tax, reimbursed expenses under lease agreements (for example, utility payments re-invoiced by the lessor) are taken into account by the lessee in the reporting period to which the date* of the primary accounting document confirming the cost of works and services to be reimbursed falls.

*The date of compilation is the date when the executed document meets the requirements of the legislation (all details are filled in, signatures are affixed).

Example: the lessor presented documents to the lessee on 15.04.2022 for utility services for March 2022, which were in turn received by the lessor from the utility service provider on 09.04.2022. The documents were signed by the lessee on 15.04.2022. The lessee will include the cost of the acquired services in the expenses taken into account for taxation purposes in April 2022 (since the document was executed and accepted for accounting on 15.04.2022).

2. On the application of the investment deduction in 2022.

From January 1, 2022, the maximum amount of the investment deduction has been increased and is:

• for buildings, structures and transmission devices used in entrepreneurial activity, the cost of investments in their reconstruction – no more than 20% of the initial cost (cost of investments in their reconstruction);
• for machinery and equipment used in business activities, and the cost of investments in their reconstruction, for vehicles (excluding passenger cars, except for those classified as special, as well as those used for taxi services) and the cost of investments in their reconstruction – no more than 40% of the initial cost (cost of investments in their reconstruction).

From January 1, 2022, for the purposes of applying the investment deduction, the construction of subsequent construction phases and commissioning complexes is considered an investment in reconstruction.

Since 2021, the amount of the investment deduction can be included in the costs of production and sale not only in the quarter in which the right to apply it arose, but also within two years, starting from the quarter in which such right arose, i.e., within two years starting from the quarter that includes the month when, in accordance with the legislation, the accrual of depreciation of fixed assets began (the cost of investments in reconstruction increased the initial (revalued) cost of fixed assets in accounting).

Since legislative changes are applied from the moment (date) of their entry into force and extend their effect to tax or reporting periods that include the date of actual sale, the date of actual income receipt, or another similar date, respectively (para. 7, art. 3 of the Tax Code), and the law that introduced such changes does not provide for a separate procedure for their application regarding the amounts of the investment deduction and its object composition, the taxpayer has the right to apply the new deduction rules in relation to fixed assets (the cost of investments in their reconstruction) for which the accrual of depreciation in the manner prescribed by law began on or after January 1, 2022.

For fixed assets for which depreciation has been accrued in the established manner before January 1, 2022, the investment deduction is applied in the amounts that were in effect before 2022 (15% and 30%, respectively).

3. On value-added tax (VAT) rates for the sale of telecommunication services

From 01.05.2022, in accordance with Decree of the President of the Republic of Belarus No. 131 of 31.03.2022 "On the Development of Mass Media" (hereinafter - Decree No. 131), the VAT rate for the sale of data transmission services*, as well as for the increase in the tax base when selling such services by the amounts provided for in Art. 120 of the Tax Code of the Republic of Belarus, is set at 26%. This rate applies to services rendered from 01.05.2022 to 31.12.2022. For the sale of other telecommunication services, the VAT rate remains 25%.

* Data transmission services include Internet access services provided by telecommunication operators, as well as data transmission services provided by mobile cellular telecommunication operators. These include, but are not limited to (for the purposes of Decree No. 131):

• provision by authorized operators for telecommunication operators of Internet access services with a guaranteed bandwidth;
• provision of access to the Unified Mobile Cellular Telecommunication Network using LTE technology for telecommunication operators to provide data transmission services to subscribers;
• provision of access to the national traffic exchange point (peering).

For the purposes of Decree No. 131, services rendered using data transmission technology do not include: telephony services via IP protocol and IP television services; roaming telecommunication services; Data Center services; content services; as well as services for granting telecommunication channels for use.

The cost of services (subscription fee) provided as part of a set (package) of services under tariff plans with a fixed subscription fee, due to the lack of technical capability for operators to separate the cost of these services, is subject to VAT at a rate of 26%.

Operators, as sellers of services, determine the tax base in the manner prescribed by Art. 120 of the Tax Code of the Republic of Belarus, present the VAT amount to the buyer (subscriber) of the services in the primary accounting document and in the electronic invoice for the buyer's right to deduct VAT.

The VAT amounts calculated on the turnover from the provision of data transmission services are determined as the difference between the amount of tax accrued on the sale of these services and the amount of VAT deductions attributable to such sales. These amounts are paid under a separate budget revenue classification code by separate payment orders (para. 5 of Decree No. 131).

Corresponding changes have been made to Part I of the VAT tax return form for calculating VAT amounts at a rate of 26% (lines 4-1, 13.1, 14v.1, 15v.1, 16v.1, 18a and 18b, 18 have been added and adjusted).

4. Advertising Placement Fee

From 01.05.2022, the placement (distribution) of advertising in the Republic of Belarus, including advertising on the Internet, is subject to a fee* for the placement (distribution) of advertising.

*introduced by Decree of the President of the Republic of Belarus of 31.03.2022 No. 131 "On the Development of Mass Media" in the Republic of Belarus.

The payers of the fee are advertisers – Belarusian legal entities and individual entrepreneurs, with the exception of organizations that use the labor of disabled people (if their number is at least 30%), correctional institutions and enterprises of the Ministry of Internal Affairs' Department of Execution of Penal Sentences.

The following are not subject to the fee:

on official websites of state bodies and state organizations, as well as in media outlets whose editorial offices are state bodies and state organizations;

• on bulletin boards;
• in buildings (premises, structures);
• social;
• events, which include state bodies among their organizers;
• provided as support to physical culture and sports organizations;
• provided to the advertising distributor by an advertising agency (except for advertising of the activities or services of the advertising agency and advertising of the activities or products of a foreign advertiser, or if the object of advertising (advertising content) is determined by the advertising agency and a foreign advertiser).

The levy is calculated based on the cost of advertising placement (distribution) services actually rendered to the advertiser, excluding value-added tax. The levy rate, depending on the advertising placement location, is set at 10% (for outdoor advertising, advertising on vehicles, and in public transport interiors) and 20% (in all other cases).

The levy amount is taken into account for taxation purposes as part of expenses for organizations and as part of expenditures for individual entrepreneurs.

The levy calculation is submitted by taxpayers to the tax authorities at their place of registration in the form established in Appendix No. 39-6 to the Resolution of the Ministry of Taxes and Levies of the Republic of Belarus dated 03.01.2019 No. 2, no later than the 20th day of the month following the reporting quarter. The levy is paid no later than the 22nd day of the month of submission of the calculation.

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1. Use of Cash Register Equipment

From 10.04.2022, it is not allowed for legal entities and individual entrepreneurs selling goods in retail outlets with a retail area of 200 square meters or more to use cash register equipment or software cash registers that do not provide differentiated accounting of data on goods, as well as the formation in the payment document, in addition to other information specified in the requirements for cash register equipment or software cash registers, of the product name.

Differentiated accounting of data on goods subject to item numbering and barcode scanning is carried out using the GS1 Belarus automatic identification system.

The aforementioned norms do not apply to consumer cooperation facilities located in rural areas.

2. On the Profit Tax Declaration

The deadline for submitting the tax declaration (calculation) on profit tax for the results of 2021 is no later than 21.03.2022. The declaration is submitted to the tax authorities regardless of the presence or absence of taxable objects!

It is not required to submit a tax declaration on profit tax:

• by budgetary organizations, public and religious organizations (associations), republican state-public associations, other non-profit organizations, with the exception of consumer cooperatives and their unions, which are subjects of trade, in the absence of gross profit (loss) for the expired calendar year;
• organizations applying special tax regimes,in the absence of amounts involved in determining the tax base for profit tax.

3. On the profit tax rate

From 01.01.2022, organizations (except for consumer cooperatives) paying profit tax at the rates established by paragraph 1 of Article 184 of the Tax Code of the Republic of Belarus, apply a rate increased by 2 percentage points. For example, the generally accepted rate of 18% is increased to 20%. This decision to increase the profit tax rate was made by the Vitebsk Regional Council of Deputies dated 03.03.200 No. 288.

4. New personal income tax rate – specifically for "lovers" of "envelope" salaries

From January 1, 2022, if the tax authority establishes cases of unlawful non-withholding and non-transfer to the budget of personal income tax amounts by the tax agent, the personal income tax will be calculated using a rate of 20%.

Such situations arise when the tax agent does not reflect the amounts of wages or other payments to individuals in the tax (accounting) records, that is, when the employer pays wages "in envelopes". The facts of payment are established, as a rule, based on collected evidence or data provided by law enforcement agencies. Personal income tax in respect of these "incomes" is paid only from the funds of the tax agent (without withholding from the individual).

5. On the use of electronic invoices

Business entities, when carrying out operations related to the circulation of goods included in the list of goods, information about the circulation of which is subject to traceability, are obliged to use consignment notes and waybills in the form of electronic documents (hereinafter referred to as electronic waybills). From December 1, 2021, tires and pneumatic rubber new tires (hereinafter referred to as tires) are subject to traceability. That is, the use of electronic waybills for the movement of used tires is not required, regardless of the date of their purchase.

When transporting new tires for seasonal replacement by a legal entity to a business entity performing tire installation services, the creation of an electronic waybill is mandatory, as transportation is an operation related to the circulation of goods, within the meaning of the terminology defined by Decree of the President of the Republic of Belarus No. 496 of December 29, 2020 "On Goods Traceability". In the "Consignee" field of the electronic waybill, the data of the business entity performing tire replacement services are indicated.

6. On Reporting

The Ministry of Taxes and Duties Inspectorate for Polotsk District reminds that no later than March 31, 2022, organizations preparing financial statements in accordance with accounting and reporting legislation must submit annual individual financial statements for 2021 and the accounting policy for 2022 to the tax authority.

Reporting is not provided by: budgetary organizations; non-profit organizations not engaged in entrepreneurial activities; foreign organizations not engaged in activities considered as activities in the territory of the Republic of Belarus through a permanent establishment in accordance with Article 180 of the Tax Code of the Republic of Belarus; peasant (farm) households (PFH) keeping a record of income and expenses of PFH as of December 31, 2021; organizations applying the simplified tax system and keeping records in the income and expense register (without maintaining accounting records).

Reporting is provided in the established formats in the form of an electronic document.

Reporting forms are submitted via the "Payer" Automated Workstation ("Reports" / "Create Accounting Reporting").

7. On the provision of a declaration by a tax agent

Since January 1, 2022, tax agents are obliged to submit a tax declaration (calculation) on personal income tax to the tax authority (hereinafter referred to as the tax declaration).

The tax declaration is submitted quarterly no later than the 20th day of the month following the expired reporting period (calendar quarter) to the tax authority. The form of the tax declaration (appendix 6-1) and the procedure for its completion are established by the Resolution of the Ministry of Taxes and Levies of the Republic of Belarus dated 03.01.2019 No. 2 (as amended on 31.01.2022).

At the same time, reference indicators regarding the amounts of labor remuneration and personal income tax have been excluded from the forms of tax declarations on profit tax, on personal income tax of an individual entrepreneur (a notary carrying out notarial activities in a notarial bureau), on tax under a simplified taxation system, on a single tax from individual entrepreneurs and other individuals, on a single tax for agricultural producers.

The declaration form includes:

Part I "The amount of personal income tax to be transferred to the budget by the tax agent, excluding the amount of personal income tax to be transferred to the budget by a foreign organization operating in the territory of the Republic of Belarus, a bank, a non-bank credit and financial organization (their branches) from income in the form of interest on savings certificates, bank deposits, on funds held in a current (settlement) bank account";

Part II "The amount of personal income tax calculated by the tax agent, a bank, a non-banking credit and financial institution (their branches) from income in the form of interest on savings certificates, bank deposits, on funds held in a current (settlement) bank account, subject to transfer to the budget";

Part III "The amount of personal income tax calculated by a foreign organization operating in the territory of the Republic of Belarus".

The tax agent fills in only those parts, sections, and annexes for which information is available. The declaration is submitted in writing or in the established formats as an electronic document.

Regarding Part I, the following should be noted:

• filled out by organizations in respect of all income paid to individuals, including payments under labor and civil law contracts, dividends, etc. (without breakdown by individuals);
• Section I reflects the amount of tax subject to transfer to the budget from individuals for the quarter, broken down by month;
• branches registered with the tax authority provide their own tax declaration; the "head" organization does not include information on the branch in its declaration;
• in cases of transferring personal income tax to the budgets of different administrative units (for example, the budgets at the place of registration of the organization and at the location of its divisions not registered with the tax authorities), information on the amounts of personal income tax subject to transfer to the respective budgets is reflected in Section II, broken down by month;
• Section III of the tax declaration should reflect other information on the payroll fund amount (cumulatively from the beginning of the year as of the 1st day of the month following the reporting quarter), as well as information on the amounts of accrued dividends (equivalent income) actually paid to founders for the reporting quarter.

The general rules for filling out a tax declaration are set out in Chapter 7-1 of the Instructions on the Procedure for Filling Out Tax Declarations (Calculations) for Taxes (Levies), approved by Resolution No. 2 of the Ministry of Taxes and Levies of the Republic of Belarus dated 03.01.2019. The declaration is submitted in electronic format by all organizations, except for non-profit organizations not engaged in entrepreneurial activities, foreign organizations not conducting activities through a permanent establishment, as well as organizations in the process of liquidation (bankruptcy).

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On electronic invoices in the circulation of goods

From July 8, 2021, amendments dated 06.01.2021 to Decree of the President of the Republic of Belarus No. 243 dated 10.06.2011 "On Goods Marking" (hereinafter referred to as Decree No. 243) came into force, providing, among other things, for the introduction of a mechanism for marking goods with identification means. The following are subject to marking with identification means: dairy products (from 08.07.2021, 01.09.2021, 01.12.2021 depending on the type), footwear (from 01.11.2021), new pneumatic rubber tires and inner tubes (from 01.12.2021), certain light industry goods (from 01.03.2022). The full list is established by Resolution No. 1030 of the Council of Ministers of the Republic of Belarus dated 29.07.2011 "On Goods Subject to Marking".

In accordance with paragraph 3 of the Regulations on Marking Goods with Identification Means, approved by Decree No. 243, it is provided that business entities engaged in the circulation of goods with an identification means applied directly to the goods or their packaging, or to a material carrier not containing anti-counterfeiting elements (means) or a security mark (hereinafter referred to as unprotected identification means), are obliged to use cargo and (or) commodity invoices created in the form of electronic documents (hereinafter referred to as electronic invoices), which contain information about the applied identification means.

Turnover of goods means the import, storage, transportation, use, receipt, and transfer of goods, including their acquisition, offer for sale, and sale within the territory of the Republic of Belarus, as well as cross-border trade (para. 10 of Annex 3 to Decree No. 243).

The requirement for mandatory use of electronic invoices for the turnover of goods with unprotected identification means applies to all business entities engaged in the acquisition and/or sale of goods subject to identification marking.

Administrative liability is established for the absence of electronic invoices in mandatory cases: a fine in the amount of 50% of the value of the subject of the administrative offense, the amount of revenue received from the sale of goods (Art. 13.12 of the Code of the Republic of Belarus on Administrative Offenses).

Taking into account the clarifications of the Ministry of Taxes and Levies, this liability will not be applied until September 1, 2022. However, organizations must still take exhaustive measures to transition to the use of electronic invoices; the moratorium on applying liability does not exempt them from this obligation (Letter of the Ministry of Taxes and Levies No. 8-2-10/04440).

To participate in electronic document flow regarding electronic invoices, participants must:

* Obtain an international business entity identification code (Global Location Number (GLN)) assigned by the GS1 Belarus automatic identification system.

* Obtain an electronic digital signature (hereinafter referred to as EDS) for the person(s) responsible for receiving goods and signing invoices (if they do not have one).

For reference. An EDS key and an attribute certificate can be obtained from two organizations: RUP "Information and Publishing Center for Taxes and Levies" (RUP IIC) and the Republican Certification Center of the State System for Public Key Management of EDS Verification of the Republic of Belarus (RCenterStateSCA).

* Determine the electronic document management operator (EDI provider) whose services will be used for electronic document management in terms of electronic invoices, and conclude an agreement with it.

For reference. Currently, the operators of electronic document management (EDI providers) engaged in the transmission and receipt of electronic invoices are 6 legal entities of the Republic of Belarus: LLC "Sovremennye tekhnologii torgovli", LLC "Elektronnye dokumenty i nakladnye", LLC "Informatsionnye proizvodstvennye arkhitektury", RUP "Izdatel'stvo "Belblankavyyd", RUP "Proizvodstvennoe ob"edinenie "Belorusneft'" and LLC "Bidmarts".

* Based on the results of consultations with the selected EDI provider, prepare a workstation and establish information interaction between the accounting system used by the enterprise and the electronic document management information system of the EDI provider (if necessary).

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Application of the Simplified Taxation System (STS) in 2022

The basic tax rate under the STS has been increased to 6%. The application of the STS with payment of value added tax (VAT) is no longer provided, in connection with which the reporting period for the STS tax is a calendar quarter.

The following restrictions are established for organizations:

Organizations are entitled to apply the STS in 2022 if their gross revenue and (or) number of employees as of the end of 2021 did not exceed 2,150,000 rubles and 50 people, respectively (before 2022, 2,159,235 rubles and 100 people).

For those who decided to switch to the STS from January 1, 2022, and submitted a notification of switching to the STS from October 1 to December 31, 2021, such a switch is possible if for the first nine months of 2021, gross revenue and (or) the number of employees did not exceed 1,612,500 rubles and 50 people, respectively.

1. Turnover of traceable goods

From December 1, 2021, the subject of traceability is the turnover* of goods:

household refrigerators and freezers (hereinafter – refrigerators), classified under the codes of the unified Commodity Nomenclature of the Eurasian Economic Union's Foreign Economic Activity (hereinafter – CND FEA) 8418 10 200 1, 8418 10 800 1, 8418 21 100 0, 8418 21 510 0, 8418 21 590 0, 8418 21 910 0, 8418 21 990 0, 8418 30 200 1, 8418 30 800 1, 8418 40 200 1, 8418 40 800 1;

new pneumatic rubber tires and inner tubes (hereinafter – tires), classified under the CND FEA codes 4011 10 000 3,

4011 10 000 9, 4011 20 100 0, 4011 20 900 0, 4011 40 000 0, 4011 50 000 1, 4011 50 000 9, 4011 70 000 0, 4011 80 000 0, 4011 90 000 0.

*Operations related to the circulation of goods include: shipment or receipt of goods from points of sale or storage under sale and purchase agreements, exchange agreements providing for the sale and (or) transfer of goods within the territory of the Republic of Belarus and (or) the EAEU member states.

The circulation of such goods is carried out only using electronic consignment notes (ETTN)!

As of December 1, 2021, an inventory of tire and refrigerator stocks is being conducted, and an inventory record is compiled in free form. Information from the inventory record is to be transferred to the "Goods Traceability System" software package (hereinafter – PTS) of the "Tax Calculation" Automated Information System (hereinafter – AIS) before operations related to the circulation of stocks of such goods are carried out, but no later than February 1, 2022 – for refrigerators and no later than April 1, 2022 – for tires. Information on goods stocks is submitted by business entities in the form of an electronic document through the taxpayer's personal account; using the "Taxpayer" Workstation; by sending an XML document to the Ministry of Taxes and Duties portal.

"Step-by-step algorithm of actions for business entities when submitting information on the balances of goods subject to traceability" is posted on the website of the Ministry of Taxes and Duties of the Republic of Belarus (http://www.nalog.gov.by/ru/).

2. On correcting information in the marking system

When marking goods with unified control marks (hereinafter referred to as UCM), there are situations when, after the business entities transmit information about the used UCMs to the marking system, errors are detected in the transmitted information*. For example, an incorrect range of UCM numbers is specified, the same UCM number is specified twice, one type of goods is indicated for a range of UCMs, while in fact two or more types of goods were marked, etc. These errors occur for a number of reasons, both due to the technical imperfection of the accounting systems of business entities for interaction with the marking system, and due to the so-called "human factor" when information is transmitted manually.

*the composition of information is defined in subclause 1.1.3 of clause 1 of annex 2 to the resolution of the Ministry of Taxes and Duties of the Republic of Belarus dated 03.05.2021 No. 17

Correction (clarification) of information about used UCMs transmitted by business entities to the marking system, in terms of changing information about the series or number of UCMs, the name of the type of goods to which UCMs are applied, etc., is not prohibited by law.

If business entities detect errors in the information previously transmitted to the system, **RUE "Publishing House "Belblankavyyd"**, as the operator of the marking system, which collects, transmits, receives, processes, accounts for, controls, stores, obtains and accumulates information in the marking system, **has the right to correct erroneously transmitted information based on incoming requests** from business entities.

Thus, for consideration of issues related to the correction of erroneously transmitted information to the marking system, business entities should contact RUE "Publishing House "Belblankavyyd".

At the same time, we draw your attention to the fact that the marking system's functionality currently does not technically allow specifying more than one product name in the information about the used UKZ, neither for a single used UKZ nor for a range of used UKZs in the information provided by business entities.

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1. On uploading information about vehicles to the taxpayer's personal account

The Ministry of Taxes and Levies Inspectorate for the Polotsk District reports that information from the State Automobile Inspectorate (GAI) on vehicles registered to organizations as of 01.01.2021, manufactured since 1992, has been uploaded to the "Taxpayer's Personal Account" service.

This information is posted, and by clicking on it, you can view

Information about vehicles owned by the organization can be viewed in the "Vehicle Information" section. If it is necessary to correct such information, you should contact the registration department of the GAI.

We remind you that taxpayers of the transport tax must pay the last (third) advance payment for 2021 no later than September 22 of the current year, calculated based on the vehicles available as of July 1. The deadline for submitting the tax return (calculation) for the transport tax from organizations for 2021 is no later than February 21, 2022; the deadline for payment (if there are amounts to be paid in addition to advances) is no later than February 22, 2022.

2. On the use of cash registers

Due to the fact that from October 10, 2021, business entities are prohibited in certain cases* from accepting cash without using cash registers, the Ministry of Taxes and Levies Inspectorate for the Polotsk District recommends taking care in advance of:

• purchasing cash registers (hereinafter referred to as CR) or software cash registers;
• concluding an agreement with the Republican Unitary Enterprise "Information and Publishing Center for Taxes and Levies" (RUE IPC) for the registration and information service of cash registers in the cash register control system.

At the same time, it is necessary to conclude an agreement in advance: in the case of using a cash register (for its maintenance and repair) with the Cash Register Maintenance and Repair Center, and in the case of using a software cash register with the software cash system operator.

Information on the models of cash registers allowed for use is contained in the State Register of models (modifications) of cash registers and special computer systems used in the Republic of Belarus.

Information about software cash system operators, software cash systems and software cash registers allowed for use in the Republic of Belarus is posted on the Internet on the official website of RUP IIС (info-center.by).

Please note that purchasing a software cash register will help minimize current expenses, as existing electronic devices (tablets, smartphones, and others) are used for its placement. In addition, there is no need to pay a security deposit for the tax authority's control means, as it is not used in software cash registers.

The sale of goods (works, services) in violation of the requirements of the legislation (without the use of cash equipment) entails a fine of up to fifty basic units, up to one hundred basic units for an individual entrepreneur, and up to two hundred basic units for a legal entity (Art. 13.15 of the Code of Administrative Offenses of the Republic of Belarus).

*For reference: the following are prohibited without the use of cash equipment:

• sales at fairs and market stalls.
• retail sale of goods in retail outlets of consumer cooperatives located in rural settlements, where sales are carried out by a single seller.

• - acceptance of cash for work performed (services rendered) outside the permanent place of business. The only exceptions are cases where such work (services) is performed
• - acceptance of cash for services rendered for the provision of residential premises (parts thereof) in dormitories and for the lease of residential premises, garden houses, dachas, including for short-term stays.
• acceptance of cash for educational services rendered to minors.

3. On property tax deduction

Tax agents providing a property tax deduction for personal income tax for the construction (acquisition) of housing are provided with the package of documents stipulated by clause 2 of Article 211 of the Tax Code of the Republic of Belarus.

Both spouses who were registered as needing to improve their housing conditions and who are payers of personal income tax can exercise the right to receive such a deduction. The property tax deduction is provided at the place of primary employment of each of the spouses. The total amount of the deduction provided to the husband and wife must not exceed the amount of expenses incurred for the construction (acquisition) of housing.

Each taxpayer can receive a deduction (including partially) only once. That is, in a situation where, for example, due to an increase in family size, a second dwelling is built (acquired), and the taxpayer has already received a deduction (even partially) for the first one, then no deduction is due to him for the second acquisition.

We also note that the deduction applies even if all the necessary documents for the benefit for earlier periods are provided. For example, an apartment was purchased in January 2013, and the package of documents was provided in September 2021. The accountant accepts all documents. In this case, a recalculation of personal income tax may be made from the moment the right to the benefit arose – January 2013 (the moment of incurring expenses), but the refund of personal income tax will be made only for the five years preceding September 2021 (effectively from September-October 2016, depending on the date of tax payment in that period). Alternatively, the benefit can be granted from the moment the taxpayer submits the documents – in relation to income paid starting from the period in which these documents are provided.

4. On Personal Income Tax Withholding

The Ministry of Taxes and Duties Inspectorate for the Polotsk District reminds of the obligation of organizations and individual entrepreneurs paying income to individuals to withhold and transfer personal income tax to the budget.

It does not matter on what terms this income is paid – within the framework of labor or civil relations. For example, if you hire an individual to sew workwear under a contract, personal income tax at a rate of 13% should be withheld when paying income, even if this individual, while simultaneously providing sewing services to individuals, pays a single tax.

We remind you that since 2021, if the controlling body establishes facts of non-withholding and non-transfer of personal income tax by the tax agent, its payment is made at the expense of the employer's own funds without subsequent withholding from the employee.

If the error is identified by the tax agent itself, then the amount of tax is withheld from the individual (if there are no payments to this person, they can independently deposit funds into the cash desk (account) of the organization or individual entrepreneur, or the tax amounts can be recovered through the tax authority).

5. To Business Entities Engaged in the Production,

Wholesale and (or) Retail Trade of Footwear

The Ministry of Taxes and Levies Inspection for Polotsk District reminds that from November 1 of the current year, the circulation (import, storage, transportation, trade, including cross-border, transfer, receipt, use, acquisition, offer for sale) of footwear not marked with identification means in the established manner is prohibited.

Business entities engaged in the production, wholesale and (or) retail trade of footwear should suspend such activities from 01.11.2021 and conduct an inventory of their remaining unmarked identification means. Based on the results of the inventory, an inventory record is drawn up, the mandatory details (information) of which are: the date and number of the record, the total quantity of goods remaining according to it.

Information about the remaining goods is transferred to the marking system by the business entity no later than the day following the day of drawing up the inventory record.

The legislation allows for the inventory of remaining goods and the acquisition of identification means before the date of marking introduction (before 01.11.2021)!

Marking of remaining goods according to the inventory record can be carried out until 01.03.2022, while it is not allowed to sell these remaining goods before actual marking. The sale of footwear (including remaining goods) after 01.11.2021 will be possible after its marking and the entry of reliable information about the goods and identification means into the marking system.

When conducting cross-border trade, the relevant information (including about remaining goods) should be entered into the information system "Database of Electronic Product Passports", the marking code should be purchased from the operator, and the goods should be marked with the mandatory entry into the marking system of information about the application of the identification means.

If goods residues are marked with identification means of the EAEU member states, they are not re-marked, if information about the identification means applied to such goods is contained in the marking system. To confirm the presence of this information in the marking system, business entities have the right to transfer information about the marking code and the name of the goods to the marking system. If the presence is confirmed by the operator, then such goods are recognized as marked and can be circulated in the territory of the Republic of Belarus.

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1. Sale of goods through vending machines

A vending machine is a mobile means of peddler trade, which is a special equipment for selling goods by self-service, allowing payments for purchased goods using cash and (or) non-cash.

Vending is the exclusive domain of legal entities and individual entrepreneurs (IEs); individuals cannot conduct such activities.

When selling goods, cash is accepted using automatic electronic devices, vending machines with a tax authority control device (SKNO) installed or with a built-in cash register (KSA) with an SKNO installed, which generate and issue a payment document to the buyer (consumer).

Installation, maintenance, removal of SKNO, as well as the functions of the data processing center of the vending machine control system and the cash register control system are carried out by RUP "Information and Publishing Center for Taxes and Levies".

Cash is withdrawn from vending machines at least once every 7 days. Business entities using vending machines, when selling goods, must ensure separate accounting of cash received, withdrawn from the vending machine, in the format of their choice, broken down by each vending machine.

The use of vending machines is not allowed:

• if the vending machine does not provide for the accounting of cash received; the vending machine does not have a built-in KSA or SKNO is not installed (it is faulty or turned off);
• if the automated machine is equipped with a Cash Register System (CRS) whose model does not meet the requirements and is not included in the State Register (the Register), which is confirmed by a certificate of technical inspection of the CRS issued by a competent legal entity.

Taxes are paid as in ordinary retail trade, at the choice of the taxpayer: a tax under a simplified system or the application of a general system with payment of profit tax.

2. Employee salaries for remote work are included in expenses in the usual manner.

Currently, remote work has become the norm. With this mode of work, a Belarusian employer does not restrict their employee in choosing the place of actual work performance: within the Republic of Belarus or outside its borders.

Tax legislation, in turn, does not restrict the inclusion in expenses taken into account for taxation purposes of amounts of employee labor remuneration, depending on the location of their work (in Belarus or abroad), and does not provide for any special features compared to the remuneration for "stationary" labor. Like ordinary salaries, salaries of remote workers, if they are related to the economic entity's activities (production, sales), are subject to inclusion in expenses used in calculating profit tax, in the manner established by the Tax Code*.

* the general rules for attributing expenses (non-operating expenses) and exclusions from them of amounts paid by the employer to the employee are defined by Articles 169, 170, 173, 175 of the Code.

3. Social tax deduction for education

An individual taxpayer of personal income tax has the right to a social tax deduction if they incur expenses for payment of:

• - their own education;
• - the education of their children (for parents of children);
• - the education of persons related by close kinship (for close relatives of the students).

The condition for applying the deduction is obtaining the first higher education, first secondary vocational education, or first vocational-technical education in educational institutions of the Republic of Belarus.

The deduction is also provided for the amounts of expenses incurred in connection with the payment (repayment, return) of bank loans, loans from Belarusian organizations or individual entrepreneurs, and interest on these loans (with the exception of interest for late payments), provided that the amounts of these loans (borrowings) have been actually spent for the purposes of the aforementioned education.

1. On the taxation of lawyers.

Changes have been made to the legislation on advocacy, as a result of which lawyers who carried out advocacy activities individually are leaving the tax relations. Due to the termination of individual activities of lawyers, the procedure for their taxation and record-keeping is losing its relevance. Thus, from 30.11.2021, the category of taxpayers mentioned has already been excluded from the instructions on the procedure for filling out the book of accounting for income and expenses of organizations and individual entrepreneurs applying the simplified taxation system.

2. Sale of goods through vending machines (vending)

A vending machine is a mobile means of street trade, which is special equipment for selling goods using self-service, allowing payments for purchased goods to be made using cash and (or) cashless payments.

Vending is the domain exclusively of legal entities and individual entrepreneurs (IEs); individuals cannot conduct such activities.

When selling goods, cash is accepted using automatic electronic devices, vending machines with a tax authority control device (SKNO) installed, or with a built-in cash register (KSA) with an SKNO installed, which generate and issue a payment document to the buyer (consumer).

Installation, maintenance, removal of the cash register control module (SKNO), as well as the functions of the data processing center for the vending machine control system and the cash register equipment control system are carried out by the RUE "Information and Publishing Center for Taxes and Levies".

Cash withdrawal from vending machines is carried out at least once every 7 days. Business entities using vending machines when selling goods must ensure, in an arbitrary form, separate accounting of cash received, withdrawn from the vending machine, for each vending machine.

The use of vending machines is not allowed:

• if the vending machine does not ensure accounting of cash received; if a cash register system (KSA) is not built into the vending machine or the SKNO is not installed (it is faulty or disconnected);
• if a KSA is built into the vending machine, the model of which does not meet the requirements or is not included in the State Register (Register), which is confirmed by the conclusion on the results of the technical inspection of the KSA issued by a competent legal entity.

Taxes are paid, as in ordinary retail, at the choice of: a single tax, personal income tax, or simplified tax system tax.

3. Salaries of remote employees are included in expenses in the usual manner.

Currently, working remotely has become the norm. With this method of work, a Belarusian employer does not restrict their employee in choosing the actual place of work: within the Republic of Belarus or outside it.

Tax legislation, in turn, does not restrict the inclusion in the expenses taken into account for taxation of labor costs of an employee, depending on the place where they perform their work (in Belarus or abroad), and does not provide for any special features compared to the payment of "stationary" labor. Like ordinary salaries, the salaries of remote workers, if they are related to the business entity's activities (production, sales), are subject to inclusion in the expenses involved in calculating profit tax, in the manner established by the Tax Code*.

* The general rules for attributing to expenses (non-operating expenses) and the exclusion from them of amounts paid by an employer to an employee are defined by Article 205 of the Code.

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1. Not all ice cream is subject to labeling now

Amendments have been made to the Resolution of the Council of Ministers of the Republic of Belarus, which defines the list of goods subject to identification labeling, and therefore, from July 8, 2021, ice cream and desserts without milk fat and (or) milk protein in their composition are not subject to labeling.

2. On the moratorium on the application of liability measures for failure to use electronic invoices

Starting from July 8, 2021, and further (depending on the established deadlines for labeling and traceability of certain types of goods), business entities engaged in the circulation of goods with applied identification means that do not contain anti-counterfeiting elements (means) or a protection mark, and the circulation of goods subject to traceability, are obliged to use waybills (invoices) created in the form of electronic invoices (hereinafter referred to as electronic invoices).

We remind you that the following are subject to identification labeling: dairy products (from 08.07.2021, 01.09.2021, 01.12.2021 depending on the type), footwear (from 01.11.2021), new pneumatic rubber tires and inner tubes (from 01.12.2021), certain light industry goods (from 01.03.2022). The full list is established by the Resolution of the Council of Ministers of the Republic of Belarus dated 29.07.2011 No. 1030 "On goods subject to labeling". Household refrigerators and freezers, new pneumatic rubber tires and inner tubes are subject to traceability from 01.12.2021.

Due to certain organizational and technical issues related to the use of electronic invoices, liability measures* for the failure of business entities to ensure the use of electronic invoices in the circulation of goods marked with unprotected identification means, as well as the circulation of traceable goods, will not be applied until 01.09.2022.

*under Art. 13.12 "Violation of the procedure for acquisition, storage, use in production, transportation, release, and sale of goods" of the Code of Administrative Offenses of the Republic of Belarus

However, the introduced moratorium does not exempt Belarusian business entities from the obligation to take exhaustive measures to transition to the use of electronic invoices in the circulation of the specified goods.

3. On the transfer of information about the use of unified control marks

From 08.07.2021, goods are considered marked if unified control marks (UCM) have been applied to them or their packaging in the prescribed manner, and reliable information about them is contained in the state information system for marking goods with unified control marks or identification means (marking system).

Information on the use of UCM is transferred to the marking system no later than the 20th day of the month following the reporting quarter (for individual entrepreneurs paying a single tax from individual entrepreneurs and other individuals – quarterly no later than the first day of the second month following the reporting quarter).

To establish the most comfortable conditions for business entities, the Ministry of Taxes and Levies of the Republic of Belarus considers it permissible for the period from 08.07.2021 to 30.09.2021 to recognize the submission of information on the use of UKZ (or unused control (identification) marks) to the marking system as a right, not an obligation of business entities. However, business entities must submit information on the use of UKZ (KIZ) for the period from 08.07.2021 to 30.09.2021 to the marking system no later than 20.10.2021 (individual entrepreneurs paying a single tax – no later than 01.11.2021). During the period until 20.10.2021 (IEs paying a single tax until 01.11.2021), they may circulate goods marked during the period from 08.07.2021 to 30.09.2021, regardless of the presence or absence of information about UKZ (KIZ) in the marking system.

4. Attention to business entities engaged in retail trade, as well as those purchasing goods in retail outlets!

The Ministry of Antimonopoly Regulation and Trade (MART) by order dated 10.06.2021 No. 130 approved the Methodological Recommendations for the documentary оформление and accounting of commodity operations, the composition and accounting of sales costs in trade and public catering organizations (hereinafter – Methodological Recommendations), which entered into force on 08.07.2021 (posted on the official website of MART in the section "Legislation", rubric "Local legal acts of MART").

In accordance with subparagraph 10.1 of paragraph 10 of Section 5 of the Methodological Recommendations, organizations engaged in retail trade have the right, independently or in agreement with buyers, to set prices for goods for which state price regulation does not apply, and to sell such goods from retail outlets (contracts for the supply of goods, invoices, waybills and other documents) at prices formed for such goods when sold to the public through these retail outlets.

The sale of goods subject to state price regulation is carried out at prices formed in accordance with the legislation.

It is advisable to account for goods intended for supply to third-party organizations and individual entrepreneurs on sub-account 41-1 "Goods in warehouses", as the cost of such goods is not included in the calculation of trade markups (discounts, markups) on the balance of unsold goods. In the accounting records of the organization, the accounting valuation of such goods changes: from retail price to purchase price. For internal movement of goods, a primary accounting document is drawn up, the form of which is developed and approved by the organization.

That is, when selling goods from a retail outlet to legal entities and individual entrepreneurs, their cost is not included in the VAT calculation based on the tax base and the share of VAT amount when selling goods at retail prices (the "calculated" rate). Turnover from the sale of these goods will be subject to VAT in the generally established manner at the rate applicable to the given goods. In other words, the "calculated" rate does not apply to such sales.

This approach has been in effect since 08.07.2021 (since the Methodological Recommendations came into force).

If, before 08.07.2021, business entities, when selling goods from a retail outlet to legal entities and individual entrepreneurs, did not apply the accounting procedure provided for in the Methodological Recommendations, then, taking into account the opinion of the Ministry of Antimonopoly Regulation and Trade (MART) for the period before 08.07.2021:

• accounting records are not subject to adjustment;
• these goods are not excluded from the definition of the "calculated" rate;
• tax declarations with amendments and additions for past reporting (tax) periods are not submitted.

In the case of selling goods from a retail outlet at retail prices to legal entities and individual entrepreneurs purchasing goods through an accountable person, the seller does not change the accounting valuation of goods from the retail price to the purchase price in accounting records and does not lose the right to apply the "settlement" VAT rate in respect of the specified sold goods.

This approach is justified by the absence of an obligation to indicate the purpose of purchasing goods from a retail outlet, in connection with which the seller at the time of sale can reasonably assume that the goods are purchased by the buyer for personal use.

Please also note that the sale of alcoholic beverages and tobacco products to legal entities and individual entrepreneurs, including through retail outlets, must be carried out on the basis of a special permit (license) for wholesale trade and storage of alcoholic, non-food alcohol-containing products, non-food ethyl alcohol, in compliance with the requirements of the legislation regulating the circulation of alcoholic beverages and tobacco products (part 4, subparagraph 10.1, paragraph 10 of the Methodological Recommendations on circulation).

5. On amendments to taxation issues (VAT).

By Decree of the President of the Republic of Belarus No. 285 of July 22, 2021 "On Taxation," amendments have been made to the application of the 10% value added tax (VAT) rate:

From August 1, 2021, an additional list of food products for infant nutrition has been introduced, subject to a VAT rate of 10%. These include: sweet dry biscuits (from EAEU TN VED* code 1905 31 300 0), homogenized vegetables (from EAEU TN VED code 2005 10 001 0), homogenized prepared products (from EAEU TN VED codes 2007 10 101 0, 2007 10 911 0, 2007 10 991 0), fruits, nuts, and other edible plant parts, prepared or preserved (from EAEU TN VED code 2008), fruit and vegetable juices, beverages (from EAEU TN VED codes 2009, 2202 99 190 0). For the application of the 10% rate, homogenized vegetables and other products included in the list are identified solely by their EAEU TN VED code (the short name is provided for convenience); other goods are identified by both their EAEU TN VED code and their short name.

* EAEU TN VED is the unified Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union

6. On taxation of income of trade union employees

The Ministry of Taxes and Levies Inspectorate for the Polotsk District informs about the procedure for taxing income received by trade union employees.

Trade union employees are divided into:

• those released from work due to election to elective positions in trade union bodies (hereinafter referred to as released trade union employees) and, accordingly, performing their duties in accordance with the rules and requirements established by the trade union organization, which is their employer;
• those elected to trade union bodies and not released from work (hereinafter referred to as non-released trade union employees) and, accordingly, performing functions related to the activities of the trade union (public duties).

Thus, full-time trade union employees receive remuneration from the trade union organization for performing their duties, and part-time trade union employees receive remuneration for performing public duties. Consequently, the remuneration paid by the trade union organization to both full-time and part-time trade union employees is subject to income tax in the generally established manner (without applying the benefits provided for in paragraph 38 of Article 208 of the Tax Code, as the payment of these remunerations is, in any case, directly related to the performance of duties by the taxpayer: labor duties for full-time trade union employees, and other duties for part-time employees).

7. On amendments to taxation issues (income tax).

Decree of the President of the Republic of Belarus No. 285 of July 22, 2021 "On Taxation" introduced changes to the procedure for calculating personal income tax (income tax) regarding insurance payments:

With regard to income paid after January 1, 2021 by insurance organizations under voluntary life insurance contracts and voluntary additional pension insurance contracts, concluded before January 1, 2021, for a term of less than 3 years, for which insurance contributions (insurance premiums) for these individuals were paid from the funds of organizations, individual entrepreneurs, individuals not related to the taxpayer by close kinship, guardianship, or trusteeship, such insurance organizations do not calculate or withhold income tax. If such payments were made in the current (2021) year, and income tax was withheld from them, it is subject to refund to the individual in the manner prescribed by Article 223 of the Tax Code.

It should be noted that insurance payments under contracts concluded after January 1, 2021, for a term of less than 3 years, are subject to income tax in the generally established manner. Previously (in 2019 and 2020), these payments were not subject to taxation, regardless of the contract term.

8. On amendments to taxation issues (land lease).

By Decree of the President of the Republic of Belarus No. 285 of 22.07.2021 "On Taxation", certain amendments have been made to the Decree of the President of the Republic of Belarus of 12.05.2020 No. 160 "On Rent for Land Plots Owned by the State" and the Regulation approved by this Decree:

With regard to land plots leased for the placement of shopping centers (including their service parking lots), retail facilities that are part of a retail chain (hereinafter referred to as retail facilities), Decree No. 160 establishes a norm for applying a coefficient of 0.015 to the cadastral value of the land plot when determining the land rent from 01.01.2021 to 01.01.2023. The norm is transferred from the Law of the Republic of Belarus of 29.12.2020 No. 72-Z "On Amendments to the Tax Code of the Republic of Belarus" and applies to relations that arose from January 1, 2021.

Moreover, the coefficient of 0.015 is applied by lessees of land plots:

• by organizations – regardless of the existence of an agreement to amend the land lease agreement regarding the rent amount;
• by citizens and individual entrepreneurs – when leasing a land plot, extending the lease term, amending the lease agreement regarding the rent amount, concluding a lease agreement with the auction winner.

If there are other facilities on the leased land plot besides retail facilities, the area attributable to retail facilities is determined based on its proportion in the total area of all capital constructions located on the plot.

If the grounds for applying the coefficient of 0.015 arose during the current year, then changes in the land rent calculation are made on the 20th day of the month following the month in which the grounds arose.

The rent exemption for land plots provided for the construction of roadside service facilities and their engineering infrastructure, and occupied by roadside service facilities, has been canceled. In addition, the preference for organizations carrying out construction (reconstruction) of housing and reconstruction of facilities into residential premises, in the form of a reduction in the calculated rent payable, is no longer applied.

Additionally, land plots occupied by capital structures transferred for gratuitous use to registered religious organizations, as well as provided to dacha cooperatives, horticultural partnerships, and other non-profit organizations for purposes related to collective gardening and (or) vegetable gardening, are now subject to benefits. This applies to land actually used by preferential categories of individuals designated in subclauses 12.2 and 12.3 of clause 12 of the Regulation approved by Decree No. 160 (large families, pensioners, etc.).

In case of the need to make adjustments due to changes in the relevant norms, organizations should, no later than 08.20.2021:

• calculate land rent for 2021;
• calculate the difference between the amount of land rent taking into account the introduced changes related to the due payment dates (no later than 02.22.2021 and 05.24.2021), and the amount of rent previously calculated for these payment dates;
• make amendments (additions) to the calculation of the land rent amount for 2021.

The additional payment of land rent shall be made no later than 08.23.2021.

9. On the payment of contributions to extrabudgetary funds for the development of the construction industry (funds).

For facilities whose construction begins on 01.09.2021, customers, developers (hereinafter referred to as the customer) when forming an immutable contract price, should provide for deductions to the funds for the development of the construction industry. Deductions are set at 1% of the cost of construction work performed (performed by contracting organizations, taking into account the current and targeted advances paid to them). The transfer of funds to the created republican, regional and Minsk city extra-budgetary funds is carried out by the customer no later than the 30th day of the month following the reporting period to the respective current (settlement) bank accounts of the main departments of the Ministry of Finance for the regions and the city of Minsk.

This norm was introduced by Decree of the President of the Republic of Belarus of 06.07.2021 No. 259 (hereinafter referred to as Decree No. 259).

At the same time, copies of payment orders for the transfer of funds no later than the 5th day of the second month following the reporting period, the customer sends to the contracting organization that performed the work, and the contractors monthly no later than the 10th day of the second month following the reporting period, submit information on the transfer of funds to the fund managers (regional executive committees and the Minsk city executive committee).

The provisions of the Decree do not apply to customers who are residents of free (special) economic zones (SEZ), as well as construction work performed by contractors who are residents of SEZ.

In addition, deductions are not made:

• during the construction of residential buildings, engineering and transport infrastructure facilities to residential areas, including individual ones;
• during the construction of facilities financed using budget, state and equivalent funds.

The amounts of deductions are included in the cost of construction work and are not taken into account in taxable profit.

In case of non-inclusion of deductions in the consolidated estimate of the construction cost and (or) the immutable contract price, deductions are made from the customer's net profit.

The funds of the funds can be directed (strictly for their intended purpose) to financing:

• acquisition of construction machinery and equipment, vehicles and technological equipment (including under financial lease agreements), necessary for carrying out construction activities);
• measures for modernization and technical re-equipment of industrial housing construction capacities, production of reinforced concrete products.

Allocation of funds from the funds to legal entities of the Republic of Belarus engaged in construction activities and the production of reinforced concrete structures will be carried out on a non-repayable basis by the respective administrator based on the decisions of commissions following the review of written applications justifying the need for funds.

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I. Step-by-step algorithm of actions for retail entities selling goods subject to marking (except for dairy products) and (or) traceability, for the implementation of electronic invoices

1. Analyze the range of products sold to determine if it is included in the list of goods subject to marking with identification means*, and (or) the list of goods whose turnover is subject to traceability**.

*The list of goods subject to marking with identification means is defined in Annex 2 to the Resolution of the Council of Ministers of the Republic of Belarus dated July 29, 2011 No. 1030,

** The list of goods whose turnover is subject to traceability is defined by the Resolution of the Council of Ministers of the Republic of Belarus dated April 23, 2021 No. 250.

2. Inquire with suppliers of the products sold about their planned method of applying the identification means to the goods:

• without using typographically protected material carriers or security marks (hereinafter referred to as security means);
• using security means.

If identification means are applied without using security measures, all such products (including by retail organizations) must use electronic invoices.

The circulation of goods, the information about the circulation of which is subject to information exchange with the EAEU member states, and goods, the information about the circulation of which is subject to traceability, is carried out only using electronic invoices.

!!!The circulation of goods subject to marking and (or) traceability, produced (supplied) in (from) the Russian Federation, is carried out only using electronic invoices.

3. Obtain an international identification code for a business operator* (Global Location Number (GLN), assigned by the GS1 Belarus automatic identification system).

* is mandatory for completion when creating electronic invoices.

GLN is obtained from the GS1 Belarus association

(Minsk, Sudmalisa str., 22, 4th floor, tel: (017) 249-09-75, (017) 227-09-13, (017) 224-06-60, (017) 317-89-52; fax (017) 244-03-01,

e-mail:

info@gs1by.by, http://gs1by.by/).

4. Obtain an electronic digital signature (hereinafter referred to as EDS) for the person (persons) responsible for accepting goods and signing invoices (if they do not have one).

This can be done at the Republican Unitary Enterprise "National Center for Electronic Services" (hereinafter referred to as NCES) (Minsk, Masherova ave., 25, room 200, tel. (017) 311 30 00 (ext. 707)) or at other regional registration centers, a list of which is posted on the NCES website www.nces.by.

5. Determine the electronic document management operator

(EDI provider) whose services will be used for electronic document management regarding electronic invoices, and conclude an agreement with them.

Information on accredited EDI providers is posted on the official website of the RUE "Inter-branch Scientific and Practical Center for Identification Systems and Electronic Business Operations" of the National Academy of Sciences of Belarushttps://ids.by/index.php?option=comcontent&view=article&id=226&Itemid=40#ABOUT.

6. Based on the results of consultations with the selected

EDI provider, prepare the workstation and establish information interaction between the accounting system used by the enterprise and the electronic document management information system of the EDI provider (if necessary).

Regulatory legal acts:

Decree of the President of the Republic of Belarus of 10.06.2011 No. 243

“On product labeling”;

Decree of the President of the Republic of Belarus of 29.12.2020 No. 496

“On product traceability”;

Resolution of the Council of Ministers of the Republic of Belarus

of 23.04.2021 No. 250 “On the implementation of Decree of the President of the Republic of Belarus of December 29, 2020 No. 496”;

Resolution of the Council of Ministers of the Republic of Belarus

of 30.12.2019 No. 940 “On the functioning of the electronic invoice mechanism”;

Resolution of the National Academy of Sciences of Belarus, the Ministry of Finance of the Republic of Belarus, the Ministry of Taxes and Duties of the Republic of Belarus, the Ministry of Communications and Informatization of the Republic of Belarus of 19.12.2019 No. 12/76/42/20 “On approval of the structure and format of electronic invoices”.

II. Step-by-step algorithm of actions for retail entities selling dairy products on the implementation of electronic invoices

1. Analyze the range of dairy products sold for the deadlines for the introduction of mandatory labeling with identification means and the list of suppliers of such products.

Labeling of dairy products is introduced in stages:

From 08.07.2021 – for cheeses, ice cream and other types of edible ice, not containing or containing cocoa;

from 01.09.2021 – regarding dairy products with a minimum shelf life of more than 40 days;

from 01.12.2021 – regarding dairy products with a minimum shelf life of less than 40 days.

!!! The following dairy products are not subject to marking:

• with a volume of 20 liters or more, or weighing 20 kilograms or more in packaging intended for repeated use (reusable packaging) before being packaged into consumer packaging by industrial means;
• whose net weight is 30 grams or less, as well as those packaged by non-industrial means in retail outlets, infant food for children under 3 years of age, and specialized dietary therapeutic and dietary preventive nutrition.

2. To find out from the suppliers of the dairy products being sold their planned method of application of the identification means to the goods:

without using polygraphically protected material carriers or security features (hereinafter – security features);

using security features.

If identification means are applied without using security features, all such products (including retail organizations) must use electronic invoices.

!!!The circulation of dairy products produced (supplied) in (from) the Russian Federation is carried out only using electronic invoices.

3. To obtain an international identification code for a business operator* (Global Location Number (GLN), assigned by the GS1 Belarus automatic identification system).

* is mandatory for completion when creating electronic invoices.

GLN is obtained from the GS1 Belarus association

(Minsk, Sudmalisa str., 22, 4th floor, tel: (017) 249-09-75, (017) 227-09-13, (017) 224-06-60, (017) 317-89-52; fax (017) 244-03-01,

e-mail:

info@gs1by.by, http://gs1by.by/).

4. Obtain an electronic digital signature (hereinafter referred to as EDS) for the person (persons) responsible for receiving goods and signing waybills (if they do not have one).

This can be done at the Republican Unitary Enterprise "National Center for Electronic Services" (hereinafter referred to as NCES) (Minsk, Masherova Ave., 25, room 200, tel. (017) 311 30 00 (ext. 707)) or at other regional registration centers, the list of which is available on the NCES website www.nces.by.

5. Determine the electronic document management operator

(EDI provider) whose services will be used for electronic document management regarding electronic waybills, and conclude an agreement with them.

Information about accredited EDI providers is available on the official website of the Republican Unitary Enterprise "Interbranch Scientific and Practical Center for Identification Systems and Electronic Business Operations" of the National Academy of Sciences of Belarus https://ids.by/index.php?option=comcontent&view=article&id=226&Itemid=40#ABOUT.

6. Based on the results of consultations with the selected

EDI provider, prepare the workstation and establish information interaction between the accounting system used by the enterprise and the information system of the EDI provider's electronic document management (if necessary).

Regulatory legal acts:

Decree of the President of the Republic of Belarus dated June 10, 2011 No. 243

“On goods marking”;

Resolution of the Council of Ministers of the Republic of Belarus

dated December 30, 2019 No. 940 “On the functioning of the electronic waybill mechanism”;

Resolution of the National Academy of Sciences of Belarus, the Ministry of Finance of the Republic of Belarus, the Ministry of Taxes and Duties of the Republic of Belarus, the Ministry of Communications and Informatization of the Republic of Belarus dated December 19, 2019 No. 12/76/42/20 “On approval of the structure and format of electronic waybills”.

III. On the implementation of the Decree of the President of the Republic of Belarus of 10.06.2011 No. 243 "On Goods Marking"

The relations associated with the introduction of the goods marking mechanism are regulated by the Resolution of the Ministry of Taxes and Duties of the Republic of Belarus of 03.05.2021 No. 17 (enters into force on 08.07.2021).

The Resolution defines the composition of information subject to transfer to the marking information system; the list of warehouses for storing goods and marking them with unified control marks, identification means (authorized warehouses), and the requirements for them are unified.

In addition, the Resolution approves:

• The Instruction on the procedure for marking goods;
• The Instruction on the procedure for marking goods residues;
• The Instruction on the procedure for the circulation of unified control marks;
• The Instruction on the procedure for the circulation of marking codes, identification means, protected material carriers, protected material carriers with applied identification means, security marks, and the characteristics of identification means;
• The Instruction on the procedure for storage, transportation, and sale of goods subject to marking with unified control marks or identification means.

IV. On the cost of identification means

By the Resolution of the Council of Ministers of the Republic of Belarus of 04.06.2021 No. 31, as of 01.08.2021, the cost (excluding value added tax) is determined as follows:

1. unified control mark in the amount of 2 Belarusian kopecks;

2. marking code in the amount of 2 Belarusian kopecks;

3. protected material carrier with applied identification means in the amount of 2 Belarusian rubles;

4. security mark in the amount of 2 Belarusian kopecks.

V. On the goods marking system

The source of information for the marking system regarding goods produced, sold, and imported into the territory of the Republic of Belarus (excluding goods imported under cross-border trade and recognized as marked with identification means) is the Bank of Electronic Goods Passports (BEGP). In this regard, for an economic entity to be able to mark goods with identification means within the territory of the Republic of Belarus, it is necessary to describe the goods subject to marking with identification means in the BEGP. Such information will be entered by economic entities carrying out:

• production of relevant goods within the territory of the Republic of Belarus,
• import into the territory of the Republic of Belarus (excluding goods imported under cross-border trade and recognized as marked with identification means in the Republic of Belarus),
• wholesale and (or) retail trade of residual goods intended for export to EAEU member states, as well as trade in goods purchased within retail trade and returned to sellers by buyers;
• commission trade within the territory of the Republic of Belarus of non-food goods based on commission agreements concluded with individuals who are not individual entrepreneurs (in case of damage to the integrity (absence) of the protected material carrier with applied identification means or the identification means itself).

VI. On Marking of Residual Goods

If marking of residual goods is necessary from the date of introduction of marking with unified control marks (UCM) or identification means (IM), economic entities engaged in production, wholesale and (or) retail trade shall suspend wholesale and (or) retail trade of such goods and conduct an inventory of their residual goods as of the date of introduction of marking.

The results of the inventory shall be documented in an inventory record, information about which shall be transferred to the marking system no later than the day following the date of its compilation.

Residual goods with an expired shelf life as of the inventory date are not included in the inventory list.

Residual goods in an opened consumer, group packaging, set, or kit of goods are included in the inventory list, indicating the volumes (mass) of residual goods.

Please note that control (identification) marks purchased before the Regulation on Marking Goods with Unified Control Marks came into force (before 08.07.2021) are valid until their complete use (re-marking is not required)!

Residuals of dairy products are also not subject to marking in the new format!

For the circulation of residual goods available as of the date of introduction of goods marking by identification means of the EAEU member states, re-marking is not required if the information about the identification means applied to such goods is contained in the marking system. To confirm the presence of such information in the marking system, business entities have the right to transfer information about the marking code and the name of the goods to the marking system. Upon confirmation of the presence of such information, the circulation of goods is carried out in the usual manner using electronic waybills (if the economic transaction is subject to оформление of a document for shipment (sale) of goods).

Mandatory information about residual goods is entered into the marking system before trading them begins.

Inventory of residual goods can be carried out before the date of introduction of marking.

Storage of residual goods without marking is allowed until the established deadlines for marking residual goods, provided that:

• an inventory list (or its certified copy) is available at the storage location,
• information about residual goods is available in the marking system.

VII. On Marking Goods with Identification Means

Dairy products, tires, fur clothing, outerwear (coats, jackets), bed linen, table linen, toilet linen, kitchen linen, and footwear* are subject to marking with identification means.

* The specific List is established in Annex 2 to the Resolution of the Council of Ministers No. 1030 dated 29.07.2011 (as amended by Resolution No. 230 dated 22.04.2021)

In order for a business entity to mark goods with identification means on the territory of the Republic of Belarus, it is necessary to describe the goods subject to marking with identification means in the Bank of Electronic Product Passports. Such information will be entered by business entities carrying out:

production of relevant goods on the territory of the Republic of Belarus,

import to the territory of the Republic of Belarus (except for goods imported under cross-border trade and recognized as marked with identification means in the Republic of Belarus),

wholesale and (or) retail trade of residual goods intended for export to EAEU member states, as well as trade in goods purchased within retail trade and returned to sellers by buyers;

commission trade on the territory of the Republic of Belarus of non-food goods based on commission agreements concluded with individuals who are not individual entrepreneurs (in case of violation of the integrity (absence) of a protected material carrier with applied identification means or identification means).

The methods of applying identification means to goods are defined in clause 5 of the Instructions on the procedure for marking goods, approved by the Resolution of the Ministry of Taxes and Levies of the Republic of Belarus dated 03.05.2021 No. 17.

One of the conditions for acquiring marking codes, identification means, protected material carriers, protected material carriers with applied identification means, and security marks is the presence of information about the business entity in the State Register of Taxpayers (other obligated persons).

VIII. Marking of Goods with Unified

Control Marks (UCM).

The circulation of goods subject to marking with UCM on the territory of the Republic of Belarus is prohibited:

• without UCM applied to the goods (packaging) in the established manner,
• with UCCs applied to goods in violation of the established procedure,
• in the absence of information about goods and UCCs applied to goods in the marking system,
• discrepancy between information about goods and UCCs and information contained in the marking system.

The list* of goods subject to UCC marking is practically identical to the list of goods currently marked with control (identification) marks (CIMs): beer, low-alcohol beverages, liquids for electronic cigarettes, coffee, tea, vegetable oil, canned fish, caviar, fruit juices, mineral and carbonated water, motor oils, antifreeze, detergents, printers, monitors, computers, televisions, watches, mobile phones, information carriers.

* The specific List is established in Appendix 1 to the Resolution of the Council of Ministers No. 1030 dated 29.07.2011 (as amended by Resolution No. 230 dated 22.04.2021)

Control (identification) marks purchased before the entry into force of the Regulation on marking goods with unified control marks (before 08.07.2021) are valid until their complete use; after 06.01.2021, CIMs are not subject to return, except for the return of unused marks due to manufacturing defects.

The circulation of goods marked with UCCs is carried out only from 08.07.2021!

The marking system includes:

• type of mark (unified control mark or control (identification) mark);
• type code (for control (identification) marks);
• name of the goods to which the unified control mark or control (identification) mark is applied, in accordance with the list of goods subject to marking with unified control marks;
• series and number (range of numbers) of unified control marks (control (identification) marks).

All goods subject to marking with unified control marks will be marked according to the same principle: purchase of marks, application to goods, and transfer of relevant information to the marking system.

One of the conditions for acquiring unified control marks is the presence of information about the business entity in the State Register of Taxpayers (other obligated persons).

IX. On the Use of Electronic Invoices

The Ministry of Taxes and Duties draws attention to the fact that information about applied identification means for dairy products, in accordance with the norms of the joint resolution of NAS of Belarus, the Ministry of Finance, the Ministry of Taxes and Duties, and the Ministry of Information dated 03.05.2021 No. 2/37/20/7, is indicated in electronic invoices if business entities have the necessary software and technical means to indicate such information.

In this regard, for organizations involved in the circulation (including acquisition and receipt) of dairy products marked with identification means applied directly to the product or its packaging, or to a material carrier that does not contain anti-counterfeiting elements (means) or a security mark, the procedure for using electronic invoices is temporarily simplified, providing for the absence of an obligation for piece-by-piece accounting of such products.

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1. Land Tax for Gardeners

Dacha cooperatives, horticultural associations, non-profit organizations established for collective gardening and (or) vegetable gardening and carrying out their activities on the basis of citizens' membership, both in 2021 and in the period before 2021, are entitled to use land tax preferences for land plots:

• of common use;
• free (unoccupied, not allocated among the members of the organization);
• of preferential categories of individuals in actual use, which include members of large families; conscripts; persons undergoing alternative service;participants of the Great Patriotic War and other persons entitled to preferential taxation in accordance with the Law of the Republic of Belarus "On Veterans"; persons who have reached the generally established retirement age, or persons entitled to an old-age pension with a reduction in the generally established retirement age; Group I and II disabled persons; minor children; persons recognized as legally incompetent.

2. Research, experimental design and experimental technological works (R&D) – are included in the costs for profit tax.

In accordance with subparagraph 2.3 of paragraph 2 of Article 170 of the Tax Code of the Republic of Belarus, the costs of production and sales, taken into account when taxing profits, include expenses for R&D registered in the state register of R&D, using an increasing coefficient of up to 1.5 (inclusive) in the manner determined by the Council of Ministers of Belarus. Since 01.01.2021, such a procedure has been determined by the resolution of the Council of Ministers of the Republic of Belarus dated 13.05.2021 No. 268.

Thus, the application of an increasing coefficient to R&D expenses is carried out under the condition of:

• their reflection in accounting records;
• accounting for expenses by the R&D performer for profit taxation as part of taxable production and sales costs;
• the presence of a decision by the head of the organization, approving the specific size of the increasing coefficient for the corresponding period.

The costs incurred with the application of a multiplier by customers and performers of R&D may include both the direct expenses for their execution and/or acquisition, and depreciation charges for assets created and/or acquired as a result of R&D execution.

3. Dairy Products: New Circulation Rules

A new product marking mechanism will be operational from 08.07.2021.

The following will be marked with identification means: milk and cream under EAEU TN VED codes (codes) 0401, 0402, buttermilk and whey under codes 0403, 0405, cheeses and curd cheese under code 0406, ice cream under code 2105 00, dairy-based beverages under codes 2202 99 910 0, 2202 99 950 0, 2202 99 990 0.

The following are subject to marking:

• cheeses (except curd cheese) and ice cream from 08.07.2021;
• dairy products with a shelf life: over 40 days from 01.08.2021; up to 40 days (inclusive) from 01.12.2021.

Inventories of the specified goods are not subject to marking!

Goods marking is carried out by business entities engaged in their production and/or import.

Business entities engaged in the circulation (production, wholesale or retail trade, import)* of products marked with unprotected** identification means are obliged to use electronic consignment notes.***

* circulation includes import, storage, transportation, use, receipt and transfer of goods, including their acquisition, offer for sale and sale within the territory of the Republic of Belarus, as well as cross-border trade

** not containing anti-counterfeiting elements (means) or a security mark

*** cargo and/or consignment notes created as electronic documents

Identification means of Russian design applied to such goods and imported from the territory of the Russian Federation will be recognized as valid on the territory of the Republic of Belarus. Marking in the Russian Federation is carried out with unprotected identification means, in connection with which the circulation of products with Russian marking is carried out only using electronic consignment notes.

The creation, transmission, and receipt of electronic invoices are carried out through the electronic data interchange system based on agreements concluded with electronic document management operators (EDI providers).

For reference. Currently, the EDI providers are: OOO "Sovremennye tekhnologii torgovli", OOO "Elektronnye dokumenty i nakladnye", OOO "Informatsionnye proizvodstvennye arkhitektury", RUP "Izdatelstvo "Belblankavyid", RUP "Proizvodstvennoe ob"edinenie "Belorusneft" and OOO "Bidmarts".

Information about accredited EDI providers is posted on the official website of RUP "Mezhotraslevoy nauchno-prakticheskiy tsentr sistem identifikatsii i elektronnykh delovykh operatsiy" of the National Academy of Sciences of Belarus https://ids.by/index.php?option=comcontent&view=article&id=226&Itemid=40#ABOUT.

4. Bath and sauna services: correct application of value added tax (VAT) exemption

Business entities selling bath and sauna services to individuals have the right to apply for a value added tax (VAT) exemption. The exemption applies to all types of baths, including Russian (traditional) baths, Turkish baths, Finnish baths (saunas), mobile (movable) baths, and pass-through baths. The right to the exemption arises when such services are classified under code 96.04.10.100 "Services of baths, saunas and shower rooms" (General State Classifier of the Republic of Belarus OKRB 007-2012 "Classifier of products by types of economic activity", approved by the Resolution of the State Committee for Standardization of the Republic of Belarus dated 28.12.2012 No. 83).

At the same time, for taxation purposes, these services should be distinguished from spa services*, provided in conditions of increased comfort (according to OKRB 007-2012, they are classified under code 96.04.10.400 "Spa services for ensuring physical comfort"), which include: water procedures (bath, shower, swimming, Kneipp path); balneotherapy services; thalassotherapy services; cryotherapy services, including ice grotto and snow room; banya services (Russian, Finnish, Turkish, Japanese, and other types of baths); manual, relaxing, and other services provided using spa technologies. Conditions of increased comfort are achieved through functional planning and zoning of the spa facility, rational placement of technological equipment, furnishing with comfortable furniture, and a spa interior using audio and visual components that contribute to creating a relaxing atmosphere. Taxation of spa services is carried out at a VAT rate of 20%.

* spa service – is a service of general health, cosmetic, relaxing, or complex impact, provided in conditions of high comfort and relating to one or more spa technologies (a combination of natural, manual, and pre-formed (artificially created) factors, through which an impact is exerted on the consumer (subclause 3.1.3 of clause 3 of STB 2412-2015)).

5. On the use of SCS in passenger transportation

For the acceptance of funds when providing services by road transport organizations when selling tickets for regular passenger road transport, selling goods and (or) providing other services related to the carriage of passengers and baggage by road transport, as well as services ancillary to transportation, the use of a special computer system is currently provided. This provision of legislation regulating the procedure for accepting cash allows for avoiding additional expenses for the purchase of additional cash registers and their maintenance.

According to information from a number of road transport organizations, when providing services for the sale of tickets for regular passenger road transport using a special computer system, it becomes necessary to simultaneously sell socially significant information and reference goods (services), such as luggage storage services, baggage receipts, etc., as well as goods (services) that enhance passenger safety in accordance with the Traffic Rules, for example, reflective elements (flickers). The sale of such additional paid services and related goods is another of the most effective ways to increase the profitability of road transport organizations.

6. On the Use of Cash Registers in Passenger Transportation

The obligation to use cash registers and (or) payment terminals is not established for legal entities and individual entrepreneurs who accept payment methods using QR codes and (or) mobile applications that, in accordance with the requirements of banking legislation, allow the formation of payment instructions when making cashless payments in vehicles during:

• regular passenger road transport;
• irregular passenger road transport (with the exception of passenger road transport by taxi);
• passenger transportation by urban electric transport.

To pay for travel using such a service, passengers need to scan the QR code located on the doors or inside the vehicle using the mobile application installed on the passenger's mobile device. Upon successful payment of the fare, the driver's mobile device, for example, in a "route taxi," receives a corresponding notification, and an electronic ticket is automatically generated and saved in the passenger's mobile application (which is subject to presentation if necessary). When using such mobile payment services, the passenger pays the fare without direct service from the driver related to receiving payment.

Consequently, such payment is not processed through cash registers.

7. On marking remainders of prohibited goods with special control marks

From 05.05.2021, the import and sale of certain types of goods* on the territory of the Republic of Belarus are prohibited.

* perfumery, cosmetic or toilet preparations, plastic products of the "BEIERSDORF" group of companies (trademarks "NIVEA", "EUCERIN", "LA PRAIRIE", "LABELLO", "HANSAPLAST", "FLORENA", "8X4", "SKIN STORIES", "GAMMON", "TESA", "CHAUL", "COPPERTONE", "HIDROFUGAL", "STOP THE WATER WHILE USING ME") – from EAEU TN VED codes 3304, 3305, 3307, 3923

passenger cars of the "SKODA AUTO" group of companies from EAEU TN VED code 8703;

chemical and petrochemical products of the "LIQUI MOLY" group of companies from EAEU TN VED codes 2710, 2711, 3214, 3402, 3403, 3405, 3506, 3811, 3824.

Remainders of prohibited goods can be sold by marking them with special control marks.

Special control marks (SCM) are applied to the product, label, or any surface of the product packaging intended for sale, or to the primary packaging of the product sold together with the product. SCM must be applied in such a way that their series and numbers, allowing for identification, are clearly visible. In addition, the applied mark must not hinder the communication of information about the consumer properties of goods subject to SCM marking to consumers. When marking a passenger car, a special control mark is applied to the inner side of the fuel filler neck cap.

Goods remaining in opened consumer packaging can be sold and used without marking within 60 calendar days from the date of inventory.

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1. "Envelope" salary: measure seven times, cut once?

Unfortunately, the practice of paying "envelope" salaries is not new. The Tax Code of the Republic of Belarus establishes that income tax must be withheld and transferred to the budget by the tax agent from all income paid by an economic entity to an individual. Naturally, unofficially paid wages are sums hidden from taxation, and consequently, underpaid budget revenues.

The tax service regularly conducts both preventive work (informing about the consequences of participating in such remuneration schemes: from the loss of social guarantees to complicity in an offense) and measures (analytical, control) to stop tax evasion by paying income to individuals without reflecting it in accounting records and reporting.

A person may not pay attention to the illegality of actions as long as these actions suit them, but at the moment when the realization of the helplessness of the situation comes, this person turns to a state body (including the tax authority) for help. At the same time, the appeal is accompanied by testimony about the amounts of wages paid "in envelopes".

Please note! Since 2021, the Tax Code stipulates that if the fact of unlawful non-payment of personal income tax is established by the tax authority in relation to the payment of wages "in envelopes", the tax will be recovered solely from the tax agent (without subsequent withholding from the individual who actually received the income). Moreover, it is impossible to withhold and present the tax to an individual even in relation to income received, according to testimony, in periods prior to 2021.

Since the employee actually gets the opportunity to legalize his income, it is unlikely that he will consider the interests of the employer who deprived him of social guarantees.

And since for unlawful non-withholding and non-transfer to the budget of personal income tax, both administrative liability in accordance with Articles 14.3, 14.5 of the Code of Administrative Offenses of the Republic of Belarus, and criminal liability in accordance with Article 243 of the Criminal Code of the Republic of Belarus are provided, there is a serious reason to think: is "envelope" salary so profitable and is it really so harmless?

This does not mean that the inspection initially sees a malicious violator working according to the rules of the "black market" in every taxpayer. To be fair, it should be noted that most employers are aware of the importance of the employee's need for guarantees for a decent life, especially during periods of global turmoil, such as, for example, a pandemic. Official salary, vacation pay, sick leave – this is the minimum that every self-respecting employer provides. We appreciate people who consider those who work for them as people!

2.On the online sale of jewelry

In accordance with the Decree of the President of the Republic of Belarus dated 01.02.2021 No. 36 "On the sale of jewelry through online stores", in the period from 12.04.2021 to 31.08.2022, business entities with a special permit have the right to carry out online trade of jewelry and other household items produced in the Republic of Belarus and marked with identification codes*.

*identification code – a unique sequence of characters in machine-readable form, presented as a two-dimensional DataMatrix barcode, which serves as a link to the automated information system for marking jewelry of the Republic of Belarus, containing information about the product

This activity is carried out in accordance with the requirements of the Regulation on the specifics of online trade in jewelry and other household items produced in the Republic of Belarus and marked with identification codes, approved by the Resolution of the Council of Ministers of the Republic of Belarus of April 5, 2021 No. 193 (hereinafter referred to as the Regulation).

Thus, the Regulation defines that to carry out online trade in jewelry, the seller must register as a participant in the pilot project implemented in accordance with the Resolution of the Council of Ministers of the Republic of Belarus of July 29, 2019 No. 492 "On the implementation of a pilot project for marking jewelry".

The mandatory conditions for online trade in jewelry are:

• the seller having one or more stationary retail outlets;
• storage of jewelry sold through the online store in stationary retail outlets;
• the buyer's ability to scan the identification code applied to the product tag (label) upon receipt of the jewelry;
• entry of information about all stages of jewelry circulation, including sales through the online store, into the automated information system for marking jewelry of the Republic of Belarus in the manner established by the Ministry of Finance,
• delivery to the buyer and shipment by the national postal operator of jewelry.
• the possibility of payment both in advance and upon receipt of the items, including in stationary retail outlets.

The Regulation also establishes a list of information that the seller must provide to the buyer before concluding the contract by posting it on the main page of the online store website (on the online store website).

The regulation is published on the National Legal Internet Portalhttps://www.pravo.by.

3. On the Use of Cash Registers and Terminals

The Ministry of Taxes and Duties Inspectorate for the Polotsk District draws the attention of business entities involved in cash circulation that amendments have been made to the procedure for using cash and other equipment when accepting payment instruments, established by the Resolution of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus dated 06.07.2011 No. 924/16 (Resolution of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus dated 07.04.2021 No. 203/4), concerning the expansion of the scope of use of cash equipment, the reduction of cases where cash can be accepted without the use of cash equipment, the exclusion of norms providing for the obligation to register cash registers, including those combined with taximeters and ticket printing machines (hereinafter referred to as CRs), with the tax authority:

• the concept of "payment terminal" has been introduced (for the purposes of the said Resolution) as a software and hardware device, a mobile device with a payment application, installed in accordance with an acquiring agreement and intended for registering operations when using bank payment cards with subsequent generation of a card receipt. It should be recalled that the Resolution establishes the obligation to install and use payment terminals, which ensure, among other things, the acceptance of payment by bank payment cards of international payment systems Visa and MasterCard, the domestic payment system "BELKART", issued by banks of the Republic of Belarus, in facilities and (or) when carrying out types of activities in accordance with Appendix 1 to the Resolution;
• the threshold for the trading area of retail facilities has been reduced from 650 square meters to 200 square meters regarding the obligation for business entities to use cash registers in these retail facilities that provide differentiated accounting of goods data, and in this regard, the need to install cash registers in such facilities that provide differentiated accounting of goods data. Differentiated accounting of goods data subject to commodity numbering and bar coding is carried out using the GS1 Belarus automatic identification system;
• clause 35 of Regulation No. 924/16, the norms of which provide for cases when cash is accepted without the use of cash registers and terminals, has undergone significant changes and from 10.10.2021 (except for individual cases, which are marked with (~) in the text of this message with the date from which the adopted norm will take effect) will be in the following version:

35. Legal entities and individual entrepreneurs are entitled to accept cash when selling goods, performing work, providing services, and conducting lottery activities without using cash registers and (or) payment terminals in cases:

35.1. repair of cash registers or temporary absence of electricity;

35.4. carrying out retail trade, including agricultural products, at fairs, and trading places;

Sale of non-food products – only with the use of cash registers!

35.5. carrying out door-to-door trade (except for the sale of fruit and vegetable products);

Sale of fruit and vegetable products – only with the use of cash registers!

35.6. sale of travel documents, tickets, travel passes, suburban, season and international tickets, reserved seat tickets and additional receipts, coupons, tokens in road transport carrying out urban passenger transportation in regular service, urban electric transport, trains of city, regional, interregional, international, commercial lines and at railway stations (stopping points) of the state association "Belarusian Railway", at their points of sale;

Sales in the metro transport are excluded!

35.7. provision of services and sale of goods (except for alcoholic beverages and tobacco products) on trains of city, regional, interregional, international, commercial lines in the assortment approved by the state association "Belarusian Railway";

35.8. retail trade by medical workers of state healthcare organizations or their structural divisions located in rural settlements where there are no pharmacies;

~ 35.9. sale of non-alcoholic beverages, kvass, vegetable oil by the glass (except for their sale in shops, pavilions and public catering establishments), as well as live fish from tanks;

Sale of draft beer is only with the use of a cash register! - enters into force from 10.04.2021

35.10. trade in religious items (except for precious metal and gemstone products) and religious literature, provision of services for religious rites and ceremonies in places of worship and structures and on their adjacent territories, as well as in other places provided for these purposes to religious organizations registered in the prescribed manner in the Republic of Belarus;

35.11. provision of services at home, as well as trade with home delivery of goods by postal and telecommunication operators, mobile teams of household and utility service organizations;

35.12. performance of work, provision of services outside the permanent place of business activity;

Implementation of such works, services outside rural areas – only with the use of a cash register!

35.13. carrying out legal and notarial activities;

~ 35.15. provision of one-time services, sale of used property, when cash is accepted into the cash desk of an organization, individual entrepreneurs;

Cash is accepted not only into the organization's cash desk, but also into the individual entrepreneur's cash desk! – enters into force from 10.04.2021

~ 35.16. provision of household services (except for maintenance and repair of vehicles, machinery and equipment, storage of vehicles) in facilities located in rural settlements, with the number of employees directly providing such services not exceeding one person per shift;

The number of employees has been reduced from three to one! – enters into force from 10.04.2023

~ 35.17. carrying out retail trade of goods in facilities of public services (except for facilities intended for maintenance and repair of vehicles, machinery and equipment, storage of vehicles) located in rural settlements, with a staff of no more than one person;

The number of employees has been reduced from three to one! – enters into force from 10.04.2023

35.18. carrying out insurance activities, insurance brokerage activities with the issuance of insurance policies (certificates, vouchers), receipts for cash acceptance in forms established by the Ministry of Finance;

35.19. provision of library services for issuing literature;

35.20. sales (except for sales in retail outlets) of livestock, crop, beekeeping, and fishery products, provision of paid services to the public by a legal entity or individual entrepreneur engaged in agricultural production, provided that payment for the sold products and rendered services is made in cash directly to the cash desk of the legal entity or individual entrepreneur;

~ 35.22. sales of goods, performance of work, provision of services to legal entities and individual entrepreneurs in accordance with the legislation;

For goods without a cash register, the provision "except for their sale in retail outlets, wholesale outlets selling goods to legal entities and individual entrepreneurs" has been excluded! – effective from 10.04.2021

35.23. operation of children's entertainment and prize machines (crane machines) equipped with one or more cash-receiving devices, with prize winnings without cash winnings;

35.24. sale of lottery tickets;

35.25. sale of tickets (season tickets) for cultural and entertainment events through individuals engaged in such sales in accordance with the legislation on behalf of cultural organizations under civil law contracts concluded with them.

! Please note that from 10.10.2021, the possibility of operating without a cash register has been excluded in the following cases:

• retail sale of goods in retail outlets of the consumer cooperation system located in rural settlements, where sales are carried out by a single seller;
• provision of training for minors;
• provision of services for the use of residential premises (parts thereof) in dormitories and rental of residential premises (except for residential premises in hotels, sanatoriums, holiday homes (bases), health resorts (complexes), hunter's lodges), garden houses, dachas, including for short-term stays.

4. On the tax accounting of exchange rate differences

In accordance with the provisions of the Decree of the President of the Republic of Belarus "On Amendments to the Decree of the President of the Republic of Belarus" dated February 18, 2021 No. 51 (hereinafter - Decree No. 51), commercial organizations (with the exception of banks, OJSC "Development Bank of the Republic of Belarus", non-bank credit and financial organizations) (hereinafter - organizations) have the right, in the manner and terms established by the head of the organization, but no later than December 31, 2022, to include in non-operating income (expenses) accounted for in the calculation of profit tax, the amounts of differences arising from the recalculation of assets and liabilities expressed in foreign currency into the official monetary unit of the Republic of Belarus (hereinafter - exchange rate differences).

In 2020, the procedure for attributing exchange rate differences to income (expenses) of future periods and writing them off to income (expenses) from financial activities was regulated by the Decree of the President of the Republic of Belarus dated May 12, 2020 No. 159 "On the recalculation of the value of assets and liabilities" (hereinafter - Decree No. 159) and was applied only for accounting purposes.

Organizations that exercised the right in 2021 to attribute exchange rate differences to income (expenses) of future periods, in the manner established by Decree No. 159:

make changes to the accounting policy (regarding the establishment of the procedure and terms for including exchange rate differences in non-operating income (expenses) accounted for in the calculation of profit tax) as of the date Decree No. 51 enters into force (February 20, 2021), with the effect extending to relations that arose from January 1, 2021;

include exchange rate differences that arose from January 1, 2021, in non-operating income (expenses) when calculating profit tax on the date they are recognized in accounting as income (expenses) from financial activities.

Organizations have the right to apply a similar procedure for the tax accounting of exchange rate differences as part of non-operating income when calculating a single tax for agricultural producers.

5. On the inclusion of transport tax amounts in the cost of organizations

The amounts of transport tax are included by organizations-payers in production and sales costs (Art. 307-10 of the Tax Code of the Republic of Belarus (hereinafter referred to as the Code)).

Production and sales costs are the cost valuation of natural resources, raw materials, materials, fuel, energy, fixed assets, intangible assets, labor resources used in the production and sale of goods (works, services), property rights, and other expenses for their production and sale, reflected in accounting records (Para. 1, Art. 170).

Taxation objects are accounted for by payers, and the tax base for taxes is determined by maintaining tax accounting, which is based on accounting data and (or) other documented data on taxable objects, and is carried out by means of calculated adjustments to accounting data (Art. 39 of the Code).

The transport tax reflected in accounting records is included in the costs taken into account for taxation in one of the following ways:

1) quarterly in the amount of the calculated transport tax for the reporting quarter, based on the number of vehicles subject to transport tax in each month of the quarter, and the tax rates;

2) in the I, II, and III quarters – in the amount of advance payments for the I, II, and III quarters, respectively;

in the IV quarter – in the amount of the cumulative increase or decrease in costs by the amount determined as the difference between the annual amount of transport tax, according to the tax return (calculation) for transport tax for the calendar year, and the amount of advance payments for the I-III quarters.

6. On the transport tax of branches

As a general rule, organizations act as payers of transport tax (Para. 1, Art. 307-1 of the Tax Code of the Republic of Belarus (hereinafter referred to as the Code)), and the taxation object is vehicles registered to organizations with the traffic police of the Ministry of Internal Affairs.

A branch, representative office, or other separate subdivision of a legal entity of the Republic of Belarus, having a separate balance sheet, for which a bank account has been opened by the legal entity to enable operations, granting officials of these separate subdivisions the right to dispose of funds in the account, calculate the amounts of taxes, fees (duties), and fulfill the tax obligations of this legal entity within their scope of activity (para. 3, art. 14 of the Code).

Consequently, if a branch is indicated as the owner of a vehicle in the vehicle registration certificate within the meaning of para. 3, art. 14 of the Code, such a branch fulfills the tax obligations of the legal entity, including for the transport tax (calculates, submits a tax declaration (calculation), and pays to the budget). In this case, branches benefit from the preferences established by para. 2, art. 307-1 (defines the circle of non-payers of tax), para. 2, art. 307-2 (absence of an object), art. 307-3 (exemption from tax) of the Code.

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1. On Value Added Tax (VAT)

1) On VAT rates from 01.01.2021

From 01.01.2021, a VAT rate of 10% will be applied to the sale of goods on the territory of the Republic of Belarus and their import into the territory of the Republic of Belarus. Previously, the sale (import) of such goods was exempt from VAT.

The application of the 10% VAT rate depends on the registration of medicinal products and medical devices in the relevant state registers (including registration in the EAEU according to EAEU rules). If previously, for the application of the benefit, the key factors were the compliance of the EAEU commodity code with the list of exempt goods and the intended use of the goods (otherwise, a 20% rate was applied), then now the 10% rate is applied without reference to such positions.

From 01.01.2021, a VAT rate of 20% is applied to the import into the territory of the Republic of Belarus of:

• raw materials and materials for the production of medicinal products, medical devices (including prosthetic and orthopedic devices);
• component parts for the production of medicinal products, medical devices (including prosthetic and orthopedic devices);
• of semi-finished products for medicinal products, medical devices (including prosthetic and orthopedic products).

At the same time, due to the cancellation of the previously established tax exemption, taxpayers have the right to independently allocate VAT amounts for deduction from the balances of goods available as of 01.01.2021:

• based on an electronic digital signature signature;
• by independently allocating for deduction the VAT amounts presented upon acquisition or paid upon import of these goods and attributed to the increase in their cost or included in the taxpayer's expenses, taken into account for taxation.

The deduction of "input" VAT amounts attributable to goods taxed at a rate of 10% is carried out in full, regardless of the amount of tax calculated on sales.

The new VAT calculation procedure applies to goods accepted for accounting from the moment the VAT calculation procedure changes, i.e., from 01.01.2021.

If amounts are received by the taxpayer in 2021 that increase the tax base (amounts received in excess of the sales price, penalties, additional profit of the agent), in relation to assets sold by him in 2020, taxation is carried out:

• in the manner in which sales were made in 2020 – if, according to the accounting policy, the taxation of such amounts is provided for both in 2020 and 2021 upon their receipt;
• in the manner applied from 2021 – if, according to the accounting policy, the taxation of such amounts is provided for in 2020 upon their receipt, and in 2021 – upon accrual.

If amounts accrued in 2020 are received in 2021 in a situation where, according to the accounting policy, they were reflected using the accrual method, they are reflected in tax accounting for 2020.

2) Sale of remaining goods due to the cancellation of benefits and changes in the VAT rate on certain food products, goods for children, medicinal products, and medical devices (hereinafter – goods)

For organizations engaged in retail trade of such goods, a transitional provision has been established, allowing them not to apply the provisions of the new edition of the Tax Code until February 1, 2021, for goods remaining in stock as of January 1, 2021. This means that during January, until 02/01/2021, goods in stock can be sold at the previously established price, and no later than February 1, 2021, taxpayers are obliged to bring prices, in terms of VAT inclusion, into compliance with the new requirements.

The sale of goods in stock at "old" prices until 02/01/2020 is possible regardless of when these goods were received in the retail outlet (public catering facility or other facility for retail trade) during internal movement within the same taxpayer (e.g., from a warehouse to a retail outlet). "Old prices" also apply to the sale of medicines and/or medical devices to individuals, separately from medical services rendered, when providing such services.

For goods received from suppliers after January 1, 2021, taxpayers engaged in retail trade shall set prices in accordance with the new provisions of the Code as such goods are received.

3) VAT Rate on the Sale of Bakery Products

From 01/01/2021, the List of food products and children's goods subject to a VAT rate of 10% upon their import into the territory of the Republic of Belarus and/or upon sale within the territory of the Republic of Belarus has been reduced and included in Appendix 26 to the Tax Code.

For the purpose of applying the 10% rate, one should exclusively rely on the EAEU commodity codes listed in the Appendix, despite the brief product name contained in the Appendix. Thus, for flour confectionery products, for which EAEU commodity codes are listed in the Appendix, a 10% rate applies to the "bread and bakery products" item.

4) On Certain Issues of Applying VAT Exemption for Specific Medical Services.

Services for conducting mandatory and extraordinary medical examinations of employees, as well as services for mandatory medical examination of candidates for drivers of motor vehicles and mandatory medical re-examination of drivers of motor vehicles, are not included in the medical services listed in sub-paragraphs 1.2.1 – 1.2.7 of paragraph 1 of Article 118 of the Tax Code of the Republic of Belarus (hereinafter referred to as the Tax Code), and therefore, the turnover from the sale of these services is subject to VAT in the generally established manner.

If, in addition, laboratory diagnostic services are provided to persons undergoing medical examination, medical examination (re-examination), they are considered as independent services, since they are provided additionally (they can also be provided by third-party organizations). Accordingly, the turnover from the sale of laboratory diagnostic services is exempt from VAT on the basis of the provisions of sub-paragraph 1.2.1 of paragraph 1 of Article 118 of the Tax Code.

This position has been developed as a result of joint consideration of issues of service classification and provision procedures by the Ministry of Taxes and Duties with the Ministry of Health.

5) On value added tax in respect of freight forwarding services.

Since 01.01.2021, exported transport services subject to VAT at a rate of 0% include, among others, freight forwarding services that the forwarder undertakes to perform and (or) organize the performance of under a freight forwarding agreement with the client (consignor, consignee, or forwarder if the forwarder engages another forwarder), if such services are related to the organization and (or) provision of international carriage of goods by one or more modes of transport along established routes.

It is specified that auxiliary services such as electronic pre-notification of customs authorities, as well as consulting, information, and cargo storage services provided under a separately concluded agreement that does not provide for the organization and/or provision of international cargo transportation, are not considered exported transport and forwarding services. At the same time, as before, the zero VAT rate applies to the aforementioned services if such services are provided by forwarders as part of exported transport and forwarding services under a transport forwarding agreement.

2. Attention to payers of environmental tax for emissions of pollutants into the atmosphere and discharge of wastewater into the environment (hereinafter referred to as environmental tax) who apply benefits in the form of tax exemption (reduction of the tax base or tax amount) or in the form of a reduced rate.

When filling out the tax return (calculation) for environmental tax, please note that the Information on the amount and composition of benefits used (Appendix 1 to the return), filled out once a year (based on the results of the calendar year), is subject to reflection for each of the exempt items in Part I of the Appendix or for each applied reduction coefficient in Part II of the Appendix (regardless of the fact that the tax return itself (column 7) only reflects the applied coefficients).

3. To sponsors of physical culture and sports organizations.

The validity of the Decree of the President of the Republic of Belarus of April 15, 2013 No. 191 "On providing support to physical culture and sports organizations" has been extended, in connection with which expenses for gratuitous (sponsorship) assistance provided to physical culture and sports organizations (taking into account the specifics established by the Decree) are included in non-operating expenses for taxation purposes until December 31, 2024.

4. On electronic interaction.

From 01.01.2021, due to amendments and additions to the Tax Code of the Republic of Belarus, the list of taxpayers obliged to submit tax declarations (calculations) in electronic form has been supplemented by organizations obliged to submit annual individual reports to the tax authority in established formats as electronic documents. These organizations must report (submit tax declarations) electronically, regardless of the average number of employees for the previous year and recognition as a VAT payer.

We remind you that the deadline for submitting annual reports for 2020 is 31.03.2021!

5. On amendments (extensions) to the provisions of Decree of the President of the Republic of Belarus No. 143 of 24.04.2020 "On Support of the Economy".

*Amendments made by Decree of the President of the Republic of Belarus No. 512 of 31.12.2020

1) Granting of installment payment of taxes, fees (duties).

In 2021, local authorities are entitled to grant only installment payments for taxes, fees (duties) fully payable to the respective local budgets, and rental payments for land plots in state ownership (hereinafter referred to as property taxes) due for payment from April 1 to December 31, 2020.

Such installment payments are granted to legal entities and individual entrepreneurs whose main type of economic activity is included in the list approved by the Decree, as well as to landlords (lenders) who have provided real estate to business entities, tenants (borrowers) providing household services to the population, in the manner prescribed by clause 6 of the Decree.

2) Granting of benefits for property taxes.

The period during which it is possible to reduce the amounts of property tax, land tax, and rent for land plots has been extended based on decisions of local regional Councils of Deputies or, by their instruction, local Councils of Deputies of the basic territorial level, the Minsk City Council of Deputies, local executive committees, administrations of free economic zones (hereinafter referred to as local authorities).

At the same time, the reduction of tax amounts is made based on decisions of local authorities adopted during the II-IV quarters of 2020. Previously, the application of preferences for property taxes was limited to the III quarter of 2020. Given that decisions of local authorities were not made in the IV quarter of 2020, the actually established preferences were not applied in the IV quarter of 2020.

3) Offset of the difference between the amount of tax deductions and the total amount of VAT calculated on the sale of goods (works, services), property rights.

The validity of the norm allowing the offset of the difference between the amount of tax deductions and the total amount of VAT calculated on sales within 10 working days from the date of the tax authority's decision on refund (full or partial refusal to refund) such difference in respect of taxpayers listed in the list approved by the Resolution of the Council of Ministers of the Republic of Belarus dated 14.05.2020 No. 282, adopted in the prescribed manner has been extended.

4) Features of calculating VAT, profit tax, tax under a simplified taxation system (STS) due to the extension of the moratorium on increasing the basic rental rate.

The moratorium on increasing the basic rental rate and rent for the use of real estate (hereinafter referred to as rent) has been extended until 03/31/2022. The provisions of this subparagraph apply to relations that arose from October 1, 2020.

When recalculating the rent downwards for October, November, December 2020, the VAT tax base adjustment is made by the lessor in the current period (i.e., in 2021) based on the agreed reduction in rent by the lessor and lessee, an additional (corrected) electronic invoice (hereinafter - ESI) issued by the lessor, signed by the lessee with an electronic digital signature (hereinafter - EDS), if the previously issued ESI was signed by the lessee with an EDS.

The reflection in the VAT tax return (calculation) of the amount of reduction in sales turnover in relation to the date of signing by the lessee of the EDS of the additional (corrected) ESI issued by the lessor is carried out in the manner established by paragraph 4 of Article 129 of the Tax Code.

The adjustment of tax deductions downwards is made by the lessee based on paragraph 18 of Article 133 of the Tax Code in the reporting period to which the agreed reduction in the cost of services (rent) falls.

When recalculating the rent for the IV quarter of 2020, based on the norms of the subparagraph, the tax base for income tax purposes for the lessor and the lessee is adjusted in the reporting period in which the rent recalculation was made, i.e., in 2021.

Lessors who applied and are applying the simplified tax system (STS) in 2020 and 2021, in 2021, when recalculating the rent downwards for October, November, December 2020, reduce the amount of STS tax in 2021 in the manner established by subparagraph 2.1 of paragraph 2 of Article 331 of the Tax Code.

For taxpayers who switched from the general taxation system to special taxation regimes and vice versa from 2021, the reduction in rent for October, November, December 2020 is taken into account when forming the tax base of the tax for which the rent for October, November, December 2020 was accounted for (by making changes to the corresponding tax return).

5) Features of determining the moment of actual realization for VAT.

Subparagraph 1.7 of paragraph 1 of Decree No. 512 provides for a preference in the form of shifting the moment of actual realization for VAT purposes.

When the lessor grants the lessee a deferral of rent payment for the lease of real estate, as provided for by the Decree.

Thus, if the day of handing over such real estate for lease falls within the period from January 1 to June 30, 2021, then the day of handing over for lease for VAT purposes (established date of MRF) is recognized as 12.31.2021.

6) Accounting for payments to employees when calculating profit tax.

The employer is granted the right:

• to grant an employee, with his consent, leave to be in self-isolation in a location determined by the employer, with the employee retaining wages for the leave period at a rate not lower than the established tariff rate (tariff salary), salary, unless otherwise established by a collective agreement, agreement;
• to release an employee from work due to his illness for a period of up to three calendar days in total during the period of validity of Decree No. 143 without the employee providing a sick leave certificate. Retention of average earnings for the period of release from work may be provided for by a collective agreement, other local legal act of the organization, with the exception of budgetary organizations and other organizations receiving subsidies, whose employees are equated in terms of remuneration to employees of budgetary organizations.

Such payments to employees engaged in the production and sale process are subject to inclusion in the cost of production and sale of goods (works, services), property rights (subparagraph 2.9 of paragraph 2 of Article 170 of the Tax Code) when calculating profit tax from 2021. These payments to employees engaged in the social sphere are subject to inclusion in non-operating expenses (subparagraph 3.28 of paragraph 3 of Article 175 of the Tax Code) from 2021.

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Tax benefits for "new technologies"

Manufacturers of innovative and/or high-tech products may be eligible for tax incentives regarding the profit derived from the sale of these products.

Main conditions for obtaining profit tax exemption:

1) the manufactured goods must be products of own production. Compliance with the conditions and criteria for products of own production is confirmed by a certificate. A copy of the certificate is provided to the tax authority at the place of registration;

2) the goods must be produced during the period of validity of the certificate;

3) the products must be included, respectively, in the list of innovative products of the Republic of Belarus, approved by the Resolution of the Council of Ministers of the Republic of Belarus dated 05.12.2013 No. 1042 (for innovative products), or in the list of high-tech products of the Republic of Belarus, approved by the Resolution of the Council of Ministers of the Republic of Belarus dated 23.06.2012 No. 574 (for high-tech products). The list is constantly updated;

4) the goods must be sold during the period they are included in the respective list;

5) the organization must maintain separate accounting for the preferential production volumes.

For high-tech products, there is an additional feature: profit tax exemption can be applied if the share of revenue from their sale exceeds 50% of the total revenue from sales, including rental income; if the share of such revenue is 50% or less, then in this situation, the taxpayer cannot use full exemption but is entitled to apply a profit tax rate of 10% (instead of the generally established rate of 18%).

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The list of expenses for sanitary and anti-epidemic measures has been updated

The Ministry of Taxes and Duties Inspectorate for the Polotsk District reports that the Ministry of Taxes and Duties and the Ministry of Finance, taking into account the information from the Ministry of Health, have refined the position on the procedure for applying subparagraph 2.5 of paragraph 2 of the Decree of the President of the Republic of Belarus dated 24.04.2020 No. 143 "On Support of the Economy" (hereinafter referred to as Decree No. 143).

In accordance with subparagraph 2.5 of paragraph 2 of Decree No. 143, expenses for sanitary and anti-epidemic, including restrictive, measures according to the list determined by the Ministry of Health, are included by legal entities and individual entrepreneurs in non-operating expenses.

The Recommendations of the Ministry of Health (letter dated 21.09.2020 No. 7-19/15320) for the prevention of coronavirus infection COVID-19 in organizations (hereinafter - the Recommendations) establish a minimum, but not exhaustive, list of sanitary and anti-epidemic measures, the implementation of which is aimed at reducing the risks of COVID-19 spread, preserving the health of employees, and ensuring the safety of service provision to the public in the context of a pandemic. Additionally, by the letter of the Ministry of Health dated 21.09.2020 No. 7-19/15357, laboratory tests for COVID-19 infection for employees of organizations, regardless of the research method (including PCR diagnostics), are also classified as sanitary and anti-epidemic measures.

The measures listed in the Recommendations and the diagnostics of employees for COVID-19 infection will be included in non-operating expenses for tax purposes starting from 21.09.2020 and until the Recommendations are canceled (which will be announced additionally).

In addition, during the period of the Recommendations, depreciation charges for fixed assets and intangible assets acquired and (or) created within the framework of implementing the Recommendations and used for the prevention of COVID-19 infection are also taken into account as non-operating expenses. After the cancellation of the Recommendations, such depreciation charges will be accounted for in taxation as part of production and sales costs in accordance with the provisions of the Tax Code.

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Use of cash registers in the organization and provision of public catering in educational institutions.

In order to prevent errors when accepting cash by business entities organizing meals for students in educational institutions, the Ministry of Taxes and Levies Inspectorate for the Polotsk District reminds:

When selling goods for cash, the payer is obliged to ensure the acceptance of cash funds using cash register equipment (cash registers, software cash registers) with a tax authority control device (hereinafter referred to as the SKNO) installed. Since 07.07.2018, this also applies to public catering organizers in facilities located in general secondary education institutions, vocational and technical education institutions, special general education schools (special general education boarding schools), Olympic reserve secondary schools, and specialized educational and sports institutions. It should be noted that in such institutions, the installation of payment terminals is currently not mandatory, but not prohibited either.

In other public catering facilities located in capital structures (buildings and structures), legal entities and individual entrepreneurs must install and use payment terminals.

The Code of the Republic of Belarus on Administrative Offenses (KoAP) provides for liability for the non-use of cash register equipment in cases established by law, as well as for its use without the SKNO.

Thus, for the sale of goods (works, services) for cash without cash register equipment, a fine of 2 to 30 base units may be imposed on the facility employee; up to 100 base units on a legal entity; from 5 to 50 base units on an individual entrepreneur.

Violation of the procedure for using cash register equipment when selling goods (works, services), as well as the absence of such equipment in accordance with Part 1 of Article 12.20 of the KoAP, entails a fine of up to 50 base units on the facility employee; up to 200 base units on a legal entity; up to 100 base units on an individual entrepreneur.

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1. On changes in recycling fee rates

The Ministry of Taxes and Duties Inspectorate for the Polotsk District draws attention to the fact that from 01.01.2021, in connection with the entry into force of Resolution of the Council of Ministers of the Republic of Belarus of 16.11.2020 No. 647 "On Amendments to Resolution of the Council of Ministers of the Republic of Belarus of 01.07.2019 No. 437", the list of types and categories of vehicles subject to the recycling fee (hereinafter - the fee) and the fee rates have been clarified.

Currently, rates are determined for vehicles whose production date is no more than three years ago and more than three years ago. From January 1, 2021, the rates are tied to the production date within three periods: no more than 3 years; from 3 to 7 years; more than 7 years. Rates differentiated depending on the type of vehicle and engine displacement are also changing.

We remind you that payers of the recycling fee are recognized as individuals, including individual entrepreneurs, organizations, regardless of the tax system (regime) they use. The fee (taking into account established benefits) is paid once for each vehicle produced (manufactured, completed on the basis of a customer's chassis) in the Republic of Belarus, and (or) imported (being imported) into the Republic of Belarus, within the deadlines established by clause 2 of Article 306 of the Tax Code. The types and categories of vehicles subject to the fee, and the rates are determined by Resolution of the Council of Ministers of the Republic of Belarus of 01.07.2019 No. 437.

2. On including the cost of organizing the collection, neutralization and (or) use of waste of goods and packaging in expenses

The Ministry of Taxes and Duties Inspectorate for the Polotsk District draws attention to the fact that from 01.07.2020, Decree of the President of the Republic of Belarus of 17.01.2020 No. 16 "On improving the handling of waste of goods and packaging" (hereinafter - Decree No. 16) entered into force.

In accordance with subparagraph 1.3 of paragraph 1 of Decree No. 16, the amounts of the fee paid for the organization of collection, disposal and (or) use of waste of goods and packaging (hereinafter referred to as the fee) are included in the costs of production and sale of goods (works, services), property rights, taken into account for taxation.

At the same time, paragraph 7 of the Regulation on the procedure for calculating the amount and terms of payment for the organization of collection, disposal and (or) use of waste of goods and packaging, the procedure for refunding overpaid (collected) fees and penalties, approved by the Resolution of the Council of Ministers of the Republic of Belarus dated June 30, 2020 No. 388, stipulates that the payment to the special account of the "Operator of Secondary Material Resources" (hereinafter referred to as the operator) is made by taxpayers no later than the last day of the month following the reporting period.

Thus, from July 1, 2020, the amounts of the fee are included in the costs taken into account for taxation in the reporting period when they are transferred to the operator's account, i.e., only after their transfer to the operator's account. The basis for reflecting the amounts of the fee in tax accounting will be the payment document confirming the payment to the operator's account.

3. On the date of preparation and execution of the primary accounting document

for one-time works (services)

From January 1, 2019, the date of performance of individual economic operations when carrying out works, providing services is determined in accordance with the Resolution of the Ministry of Finance of the Republic of Belarus dated August 8, 2018 No. 55 "On the date of performance of individual economic operations" (hereinafter referred to as Resolution No. 55). When providing services (works), the results of which cannot be used before their completion, the date of the economic operation is the date of preparation of the primary accounting document.

Tax accounting is based on accounting data.

According to clause 1 of Article 10 of the Law of the Republic of Belarus dated 12.07.2013 No. 57-Z "On Accounting and Reporting" (hereinafter referred to as Law No. 57-Z), each economic transaction is subject to documentation by a primary accounting document. A primary accounting document is drawn up at the time of the economic transaction, or immediately after its completion if it is not possible (clause 5 of Article 10 of Law No. 57-Z). The list of mandatory information that primary accounting documents must contain is provided in part 1 of clause 2 of Article 10 of Law No. 57-Z: the date of its compilation is one of the mandatory requisites. The date of compilation of a primary accounting document is the date of its full completion, i.e., the reflection in the primary accounting document of all information provided for by part 1 of clause 2 of Article 10 of Law No. 57-Z.

In cases where a date (dates) different from the date indicated at the top of the document is (are) placed on the primary accounting document near the signature (signatures) of the parties, the date of compilation of the primary accounting document for the purpose of determining the date of the economic transaction (date of work completion, date of service provision) shall be the latest of the dates indicated in the document.

For one-off works, the performer indicated the date 25.09.2020 in the upper part of the primary accounting document. The performer received the completed (signed by the customer) primary accounting document on 05.10.2020.

If the customer indicated the signing date as 05.10.2020 on the primary accounting document, then the date of compilation of the primary accounting document and, consequently, the date of work completion (service provision) for VAT and profit tax purposes is 05.10.2020.

If the customer has not indicated the signing date on the primary accounting document, then the date of compilation of the primary accounting document and, consequently, the date of work completion (service provision) for VAT and profit tax purposes is 25.09.2020.

4. New rules for filling out the application for import of goods from the EAEU and payment of indirect taxes

Since November 1, 2020, the Protocol on Amendments to the Protocol on Electronic Exchange of Information between Tax Authorities of the Eurasian Economic Union Member States on Paid Indirect Tax Amounts dated December 11, 2009, signed on November 6, 2019 (hereinafter referred to as the Protocol), has entered into force, according to which:

the exchange of registers of applications for the import of goods and payment of indirect taxes (hereinafter referred to as the application) is carried out weekly, on the first business day of the week;

an application in replacement of a previously submitted one is filed in the following cases:

1) when the price increases (indicating the reason for the document's occurrence as value 5 "price increase"),

2) upon partial return of goods (indicating the reason for the document's occurrence as value 6 "in replacement of withdrawn due to partial return"),

3) for other reasons (indicating the reason for the document's occurrence as value 4 "in replacement of withdrawn").

*For reference: The first application is always submitted as primary (1). All subsequent applications must have the reasons for occurrence "in replacement of withdrawn" (4) or "price increase" (5) or "in replacement of withdrawn due to partial return" (6). The details of a previously submitted application are always taken from the previous application submitted by the taxpayer and registered with the tax authority.

New formats and rules ensuring information exchange in accordance with the amendments made have been implemented in "ARM Taxpayer" version 4.0.1.31 and on the Ministry of Taxes and Levies Portal in the taxpayer's personal account in the "Working with EAEU Documents" section.

Detailed information for users of "ARM Taxpayer Customs Union", including the new version of "ARM Taxpayer", is posted on the official website of the Ministry of Taxes and Levies in the "Software" section "ARM Taxpayer Customs Union and Reference Data" at the link http://www.nalog.gov.by/ru/arm-platelschik/.

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1. On the transition to the Simplified Tax System from 01.01.2021

The Ministry of Taxes and Levies Inspectorate for Polotsk District reminds business entities that have decided to apply the simplified tax system (STS) from January 1, 2021, of the need to submit a notification of transition to the STS to the tax authority at their place of registration between October 1, 2020, and December 31, 2020 (the notification form is established in Appendix No. 36 to the Resolution of the Ministry of Taxes and Levies of the Republic of Belarus dated January 3, 2019 No. 2).

Transition to the STS is possible if, for the first 9 months of 2020, the average number of employees in organizations does not exceed 100 people, and the gross revenue is no more than 1,538,843 Belarusian rubles.

2. On the payment of bonuses and remuneration to heads and chief accountants of organizations.

The Ministry of Taxes and Levies Inspectorate for Polotsk District reports that in accordance with Decree of the President of the Republic of Belarus No. 381 dated October 26, 2020 "On ensuring settlements with budgets" (hereinafter referred to as Decree No. 381), the head, chief accountant (their deputies) of an organization (separate subdivision) shall not accrue or pay bonuses, incentives, and remuneration for the performance of labor duties in case of arrears in payments to the republican or local budgets and the Social Protection Fund budget (hereinafter referred to as arrears). An exception is made for organizations that have been granted a deferral (installment plan) for debt repayment in accordance with the law, provided that current payments are made on time.

It should be noted that the procedure for accruing the specified payments applies to the heads and chief accountants of any form of ownership.

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On the crediting of state duty

The Ministry of Taxes and Duties Inspectorate for the Polotsk District reports that from January 1, 2021, the procedure for paying state duty when applying to all courts of the Republic of Belarus (with the exception of payers who are non-residents of the Republic of Belarus) is changing. From the specified date, the state duty collected by the courts for performing legally significant actions is to be credited to the republican budget (Appendix 2 to the Resolution of the Ministry of Finance of the Republic of Belarus dated December 3, 2019 No. 71 "On the distribution of state duties and fines between the republican and (or) relevant local budgets").

We additionally draw attention to the fact that from January 1, 2021, state duty is also payable (recoverable) to the republican budget based on writ of execution or other enforcement documents issued by the court before the specified date.

The details required for paying the state duty can be found on the website of the Ministry of Taxes and Duties at http://www.nalog.gov.by/ru/news_ministerstva_ru/view/svedenija-dlja-zapolnenija-platezhnyx-dokumentov-v-respublikanskij-i-mestnyj-bjudzhety-27092/.

Details for Miory:

Beneficiary: Main Department of the Ministry of Finance of the Republic of Belarus for the Vitebsk Region

UNP 301312008

Account No. BY97AKBB36029130100020000000 at JSC "ASB "Belarusbank" Minsk BIC AKVVB Y2X

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1. On the application of fuel consumption norms.

From August 13, 2020, Resolution of the Council of Ministers of the Republic of Belarus No. 470 dated August 10, 2020 "On the procedure for establishing fuel consumption norms" (hereinafter referred to as the Resolution) came into force.

The Resolution stipulates that fuel consumption rates for motor vehicles, vessels, machines, mechanisms, and equipment shall be established by the heads of organizations and individual entrepreneurs independently or based on the results of tests conducted by an accredited testing laboratory (laboratory tests). During the period from 12.07.2015 until this Resolution comes into force, the application of fuel consumption rates established during this period by the heads of organizations and individual entrepreneurs (IEs) independently or based on the results of laboratory tests, provided that such rates are not established by legislative acts or local acts of republican government bodies and other state bodies (organizations) subordinate (accountable) to the President of the Republic of Belarus or the Council of Ministers of the Republic of Belarus.

In light of these changes, for the purposes of calculating profit tax, the cost of fuel is included in the normalized expenses:

from 2020 within the limits of rates established by the head of the organization (IE) independently or by contacting an accredited testing laboratory (Part 1, Clause 6 of Decree of the President of the Republic of Belarus No. 503 dated 31.12.2019 "On Taxation");

from July 12, 2015, to 2020, within the limits of rates established by the head of the organization (IE) independently or based on the results of laboratory tests, if there are no legislative acts or local acts equivalent to those established by law regarding these rates.

2. On the taxation of certain operations of gratuitous transfer with value added tax.

In accordance with clause 12 of Decree of the President of the Republic of Belarus No. 503 of 31.12.2019 (hereinafter referred to as Decree No. 503), for tax purposes, the gratuitous transfer of property (works, services) transferred and accepted in accordance with the legislation to the Republic of Belarus or its administrative-territorial units in the person of state bodies and other legal entities is not recognized as a sale. The procedure for transferring (accepting) property into state ownership is regulated by the norms of Decree of the President of the Republic of Belarus No. 169 of 10.05.2019 (hereinafter referred to as Decree No. 169). That is, property gratuitously transferred in compliance with the norms of Decree No. 169 is not a taxable object for value added tax.

*Clause 12 of Decree No. 503 applies to relations that arose from May 15, 2019.

At the same time, it should be borne in mind that other special norms of the Tax Code of the Republic of Belarus (hereinafter referred to as the Code) apply to the gratuitous transfer of certain objects (categories of taxpayers). Thus, the transfer of goods (works, services), property rights (including payment for them) to budgetary organizations of healthcare, education, culture, physical culture and sports is not recognized as a VAT object on the basis of subclause 2.5.5 of clause 2 of Article 115 of the Code. At the same time, in accordance with subclause 24.9 of clause 24 of Article 133 of the Code, a limitation on the deduction of VAT amounts presented upon their acquisition (paid upon import) is provided for such objects.

Example 1: In August 2020, a non-state-owned organization transferred a fixed asset (car) purchased in 2020 to a republican unitary enterprise (RUE). The acceptance of the vehicle into state ownership was formalized by the decision of the head of the RUE, as provided for by subclause 4.3 of clause 4 of Decree No. 169. In this case, the gratuitous transfer is not recognized as a sale, and the transferring party does not have a VAT object in accordance with Decree No. 503.

If the recipient of the property in a similar situation is a healthcare organization funded from the budget, then the transferring party has no VAT object. However, the amounts of "input" VAT (charged upon acquisition or paid upon import) are not accepted for deduction (subject to restoration) in accordance with the provisions of subclause 2.5.5 of clause 2 of Article 115 and subclause 24.9 of clause 24 of Article 133 of the Code.

Example 2: An open joint-stock company (hereinafter referred to as OJSC) gratuitously transfers property acquired in the Republic of Belarus in 2018 and 2020 to a healthcare organization funded from the budget in 2020.

In this situation, according to the provisions of subclause 2.5.5 of clause 2 of Article 115 of the Code, the transferring party has no VAT object. At the same time, the amounts of "input" VAT charged upon acquisition of the property or paid upon its import in 2020 are not accepted for deduction (subject to restoration). As for the amounts of "input" VAT on property acquired in 2018, the deduction limitation established by subclause 24.9 of clause 24 of Article 133 of the Code does not apply due to the provisions of clause 28 of Article 133 of the Code.

Example 3: A Republican Unitary Enterprise (RUE) performs work on the development of design and estimate documentation for a Communal Unitary Enterprise (CUE) based on a gratuitous (sponsorship) aid agreement.

The procedure for accepting gratuitously performed work and services by the Republic of Belarus or its administrative-territorial units is not defined by legislation in a manner similar to the procedure for property established by Decree No. 169. The transfer of work and services to a state organization based on a gratuitous (sponsorship) aid agreement cannot be considered as the transfer of work and services in accordance with the legislation of the Republic of Belarus or its administrative-territorial units.

In the described situation (taking into account the clarification of the Ministry of Economy), it is observed that:

the transfer of civil rights and obligations for design and estimate documentation is carried out from one participant of civil turnover to another participant of civil turnover on the basis of one of the types of civil law contracts of gratuitous (sponsorship) assistance (para. 1) part. 2 para. 1 art. 7 of the Civil Code of the Republic of Belarus, hereinafter referred to as the CC);

no acts of state bodies and local self-government bodies have been issued that provide for the transfer of works (services) to the Republic of Belarus or its administrative-territorial units (based on para. 3 of art. 125 of the CC).

Accordingly, with the gratuitous transfer of works in this case, the norm of para. 12 of Decree No. 503 is not observed.

Given the foregoing, for RUP, the gratuitous performance on the basis of a gratuitous (sponsorship) assistance agreement of work on the development of design and estimate documentation for KUP is subject to VAT in the generally established manner.

3. On VAT benefits in the housing and communal services sector

From January 1, 2021, in addition to the preferences for housing and communal services from value added tax established by the Decree of the President of the Republic of Belarus of March 26, 2007 No. 138 "On some issues of value added tax", the following sales will be exempt from value added tax:

works on the maintenance (operation) of external improvement facilities of settlements, carried out at the expense of budget funds, according to the list determined by the Council of Ministers of the Republic of Belarus;

services for receiving and controlling the execution of applications from citizens, as well as their claims for the quality of housing and communal services;

services for the implementation of the functions of the state customer in the housing and communal services sector;

services for the implementation of functions of accounting, calculation, accrual and collection of debt for:

• payment for housing and communal services;
• payment for the use of residential premises;
• reimbursement of expenses incurred by organizations managing housing stock and (or) providing housing and communal services for electricity consumed for lighting common areas and operating equipment in apartment buildings.

The new norms are established by Decree of the President of the Republic of Belarus No. 342 of 10.09.2020 "On Amendments to the Decree of the President of the Republic of Belarus".

4. On the fulfillment of tax obligations based on the results of desk audits

In order to assist the taxpayer in independently rectifying violations identified by the tax authority, a desk audit is conducted, which consists of two stages (preliminary and (or) subsequent).

A directive for conducting such an audit is not issued (Article 73 of the Tax Code). The audited period is not limited. The tax authority may refer to documents of any age, but if it is necessary to draw up an act of a desk audit, it will indicate violations for the last 5 years.

If a violation (discrepancy) is found at the preliminary stage of the desk audit, the taxpayer is sent an informational notice containing a list of established errors. This notice proposes that the taxpayer make corrections to the tax return or provide explanations no later than 5 business days.

If violations are detected during the subsequent stage of the desk audit, the taxpayer is sent a notification with a proposal to submit additional documents, a declaration, or provide explanations on the situation, and if the errors are agreed upon, to fulfill tax obligations no later than 10 business days from the date of its dispatch.

The countdown for the response to the notice (notification) begins on the day after its receipt.

The notice (notification) is sent in electronic or written form.

Receiving a message (notification) by the taxpayer is essentially an offer from the tax authority to clarify the reasons for the discrepancies that have arisen. If the established discrepancies are not due to a taxpayer's error, but are caused by the specifics of economic activity, this must be further explained. In this case, the taxpayer may submit additional information (explanations), additional documents, and (or) a tax return (or amendments to a previously submitted return). If amendments are made independently or information is submitted that reliably substantiates the discrepancies, an act of desk audit is not drawn up.

You can clarify whether the documents have been accepted or not by contacting the tax inspector who sent the notification, whose contact details are indicated in the notification.

Explanations are submitted in an arbitrary form and must contain information about the taxpayer (UNP, taxpayer name, responsible official, contact details). Documents may be attached to the explanations:

• in electronic form (scanned);
• on paper (certified copies).

The response of business entities to the notifications of tax authorities helps to avoid significant amounts of penalties.

If, after receiving the notification, no explanations or documents are received from the taxpayer, the tax authority has the right to request documents and (or) other information from the taxpayer under certain circumstances. In this case, the taxpayer is obliged to submit the documents within the period specified in the request.

In case of failure to submit documents (explanations), failure to submit a tax return (failure to make amendments to it), the tax authority draws up an act of desk audit.

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1. On the financing of the construction of dairy farms

In order to complete the construction (reconstruction) of dairy farms in 2020, the President of the Republic of Belarus adopted Decree No. 269 on July 17, 2020.

The Decree provides for targeted lending from budget funds to organizations of the processing industry from an approved list. Processing organizations are obliged to direct the funds received under budget loans to finance the completion of dairy farm complexes in agricultural organizations by transferring funds directly to the accounts of suppliers, contractors, and executors involved in the construction.

Agreements must be concluded between processing and agricultural organizations on the terms established by the Decree. Interest on these agreements is not included by processing organizations in non-operating income for taxation purposes, and interest on budget loans is not included in expenses taken into account for taxation and non-operating expenses.

2. On the confirmation of the permanent establishment of the foreign organization "Uber ML B.V.".

On the website of Yandex.Taxi LLC (a related party of Uber ML B.V.), a certificate of tax residency of Uber ML B.V. is posted, as well as its translation into Russian (https://driver.yandex/by-ru/uber-docs). This certificate is a scanned confirmation of the permanent establishment of Uber ML B.V. in the Kingdom of the Netherlands, issued on January 14, 2020, by the competent authority of the Netherlands on paper.

Accordingly, tax agents have the right to submit to the tax authority a graphic image of the certificate of tax residency of Uber ML B.V., posted at the above link, for the application of preferences provided for by the Agreement between the Government of the Republic of Belarus and the Government of the Kingdom of the Netherlands for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Property dated March 26, 1996.

3. On the Unified Register of Licenses

The Ministry of Taxes and Levies Inspectorate for the Polotsk District informs about the formation of the Unified Register of Licenses (hereinafter referred to as the Register, ERL), the regulation on the procedure for its functioning, approved by the Resolution of the Council of Ministers of the Republic of Belarus No. 365 dated June 24, 2020, and which comes into force on July 1, 2020.

The information contained in the Register is publicly available, with the exception of information about individuals who have licenses for the collection and exhibition of weapons and ammunition, as well as other information access to which is restricted by legislative acts. Open access to the ERL is available at: https://url.nces.by/.

Information search is provided via the Internet through the unified portal of electronic services of the general state automated information system using the following details:

• license registration number in the ERL;
• license number;
• generated QR code;
• name of the legal entity licensee, foreign organization, or surname, given name, patronymic of an individual, including an individual entrepreneur;
• registration number in the Unified State Register of Legal Entities and Individual Entrepreneurs or taxpayer registration number;
• name of the territorial bar association;
• license status (valid, suspended, etc.);
• licensed activity;
• work and/or service constituting the licensed activity;
• licensing authority (code, name);
• special license requirements and conditions;
• license territory of validity;

In addition, the following options are available:

• licensees, through the functions of the ERL personal account, can view licenses issued to them and registered in the ERL, obtain the license registration number, generated QR code, and printed form of the license, monitor the status of licenses issued to them, view reference information, ask questions to the ERL operator within the framework of the ERL functioning, and save the history of questions and answers;
• licensing authorities to register licenses in the ERB, make changes to relevant information and view it with history, search the ERB, generate reports, control interaction between the ERB and the licensing authority systems, view reference information, ask questions to the ERB operator or owner and save the history of questions and answers, obtain a printed copy of the license;
• registered users who have created an account, to use the ERB search functions, access the history of their ERB requests, ask questions to the ERB operator and save the history of questions and answers, view reference information;
• unregistered users to verify a license by using search functions, create an account provided that an email address is specified.

4. On confirmation of the country of origin of goods for the purpose of applying a VAT rate of 10%.

In accordance with subparagraph 2.1 of paragraph 2 of Article 122 of the Tax Code of the Republic of Belarus (hereinafter referred to as the Code), a VAT rate of 10% is established for the sale of goods produced in the territory of the Republic of Belarus, as well as for the import and (or) sale in the territory of the Republic of Belarus:

• crop production (except for floriculture, ornamental plants);
• wild berries, nuts and other fruits, mushrooms, other wild products;
• beekeeping products;
• livestock products (except for fur);
• fish farming products.

The following documents may be considered, among others, as documents confirming the production of goods in the EAEU member states for the purpose of applying the specified provision of the Tax Code:

• declaration of conformity,
• declaration of origin of goods,
• certificate of origin of goods,
• veterinary certificate,
• phytosanitary certificate,
• other documents issued by competent authorities (or agreed with them) in accordance with the legislation of the EAEU member states.

The supplier's indication of a 10% VAT rate in the accompanying documents without the presence of documents confirming the origin of the products is not a basis for the subsequent seller to apply a 10% VAT rate.

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The Inspection of the Ministry of Taxes and Duties of the Republic of Belarus for the Polotsk District informs

On Innovation Policy

The promotion of the production of innovative and high-tech goods (works, services) is an integral part of the state policy of the Belarusian state. Decree of the President of the Republic of Belarus No. 156 of 07.05.2020 approved the priority directions of scientific, scientific-technical and innovative activities for 2021-2025, which include digital information and communication and interdisciplinary technologies, biological, medical, pharmaceutical and chemical technologies, energy, construction, ecology and rational use of natural resources, mechanical engineering, mechanical engineering technologies, instrument engineering and innovative materials, agro-industrial and food technologies, ensuring the safety of individuals, society and the state.

Favorable economic conditions for the development of innovative activity of all elements of the innovation system are ensured, including through tax incentives. Thus, from 01.07.2020, the list of innovative goods of own production for the purposes of applying profit tax benefits has been supplemented (Resolution of the Council of Ministers of the Republic of Belarus No. 284 of 14.05.2020 "On Amendments to the Resolution of the Council of Ministers of the Republic of Belarus No. 1042 of 05.12.2013").

On Foreign Gratuitous Aid.

From 27.08.2020, Decree of the President of the Republic of Belarus No. 3 of 25.05.2020 "On Foreign Gratuitous Aid" comes into force. The Decree defines the recipients of foreign gratuitous aid and the purposes of its use. Aid subject to registration may be exempted from taxes, duties (levies) by decision of the Administration of the President of the Republic of Belarus or the Interdepartmental Commission, depending on the purpose of its use. Exemption may be granted for value added tax, profit tax, simplified tax system tax, single tax for individual entrepreneurs and other individuals, income tax. The tax benefit applies to the further gratuitous transfer to secondary and subsequent recipients of exempted imported goods, as well as goods (works, services) purchased with funds registered as foreign gratuitous aid and exempted from taxes. Aid not exempted from taxation is included in other income.

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On the marking of product groups introduced by the Russian Federation.

The Ministry of Taxes and Duties Inspectorate for the Polotsk District reports that from 12.06.2020, decisions of the Eurasian Economic Commission Council (hereinafter referred to as the EEC) of 18.11.2019 "On the introduction of marking of light industry goods with identification means" (No. 127), "On the introduction of marking of perfumes and toilet water with identification means" (No. 128), "On the introduction of marking of tires and pneumatic rubber new tires with identification means" (No. 129), "On the introduction of marking of photographic cameras (except cinema cameras), photographic flashes and flash lamps with identification means" (No. 130) come into force.

The text of the documents is available on the EEC website http://www.eurasiancommission.org/ in the "Documents" tab (legal portal of the Eurasian Economic Union).

The Government of the Russian Federation has already introduced mandatory marking with identification means for perfumes and toilet water, tires and new pneumatic rubber tires, photographic cameras (except cinema cameras), photographic flashes and flash lamps, and certain items of light industry products.

The marking is defined for goods classified under the following codes of the Harmonized Commodity Description and Combined Nomenclature of the Eurasian Economic Union (HS EAEU):

• perfumes and toilet waters 3303 00;
• tires and inner tubes, pneumatic, rubber 4011 10 000 3, 4011 10 000 9, 4011 20 100 0, 4011 20 900 0, 4011 40 000 0, 4011 50 000 1, 4011 50 000 9, 4011 70 000 0, 4011 80 000 0, 4011 90 000 0
• photographic cameras (other than cinematographic cameras), flashlight apparatus and flash bulbs 9006 30 000 0, 9006 40 000 0, 9006 51 000 0, 9006 52 000 1, 9006 52 000 9, 9006 53 100 0, 9006 53 800 8, 9006 59 000 1, 9006 59 000 8, 9006 61 000 0, 9006 69 000 1, 9006 69 000 9
• light industry goods 4203 10 000 0, 6106, 6201, 6202, 6302

The ban on the circulation of unmarked light industry goods will be introduced no earlier than January 1, 2021; for tires and pneumatic rubber inner tubes, no earlier than December 1, 2020; for photographic cameras (other than cinematographic cameras), flashlight apparatus and flash bulbs, as well as perfumes and toilet waters, no earlier than October 1, 2020.

The decisions provide for the possibility for business entities of other member states of the Eurasian Economic Union to obtain Russian-standard marking codes for goods of the corresponding HS EAEU classification supplied (exported) to the territory of the Russian Federation.

The issuance of Russian-standard marking codes on the territory of the Republic of Belarus is carried out by the operator of the national system for marking goods of the Republic of Belarus, RUE "Publishing House "Belblankavyyd".

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Amendments have been made to regulatory documents regarding the determination of the number of employees

The Ministry of Taxes and Levies Inspectorate for the Polotsk District draws attention to the fact that from 19.02.2020, the Resolution of the Ministry of Statistics and Analysis of the Republic of Belarus of 29.07.2008 No. 92 has lost its force due to the adoption of the Resolution of the National Statistical Committee of the Republic of Belarus of 20.01.2020 No. 1. Therefore, starting from February 2020, taxpayers must be guided by the Instructions for filling in statistical indicators on labor in the forms of state statistical observations, approved by this resolution.

The changes are also important for the correct determination of the list number of employees of an organization, the average number of employees of an organization per month, and the average list number of employees for the purposes of applying tax legislation (including a single tax on imputed income, a simplified tax system).

The procedure for filling out tax declarations (calculations) has been changed.

By the Resolution of the Ministry of Taxes and Levies of the Republic of Belarus of January 28, 2020 No. 1 (hereinafter referred to as Resolution No. 1), amendments and additions have been made to the Resolution of the Ministry of Taxes and Levies of the Republic of Belarus of January 3, 2019 No. 2 "On the calculation and payment of taxes, fees (duties), and other payments" (hereinafter referred to as Resolution No. 2).

Resolution No. 1 entered into force on 15.02.2020.

This resolution changes some forms of tax declarations established by Resolution No. 2, and also clarifies the procedure for their completion.

Deadlines for submitting annual financial statements for 2019.

Subparagraph 1.4.2 of paragraph 1 of Article 22 of the Tax Code of the Republic of Belarus establishes the obligation for taxpayers to annually submit annual individual reports to the tax authorities at the place of registration, compiled in accordance with the legislation of the Republic of Belarus on accounting and reporting.

We remind you that such reporting is submitted to the tax authority at the place of registration no later than March 31 of the year following the reporting period (for 2019, March 31, 2020).

The need for taxpayers to submit annual reports to the tax authority is absent:

• when, based on the legislation of the Republic of Belarus on accounting and reporting, there is no obligation to prepare such reporting (para. 2, Art. 2 of the Law of the Republic of Belarus of July 12, 2013 No. 57-Z "On Accounting and Reporting");
• when, based on the legislation of the Republic of Belarus on accounting and reporting, such reporting is prepared, but the Tax Code does not contain requirements for organizations to submit it to the tax authorities (part two of subparagraph 1.4.2 of paragraph 1 of Article 22 of the Tax Code of the Republic of Belarus).

“Information for citizens”:

The Ministry of Taxes and Duties Inspectorate for the Polotsk District reminds: March 31, 2020 is the deadline for citizens to submit income tax returns for 2019.

Declarations are accepted at the taxpayer services department of the Ministry of Taxes and Duties Inspectorate for the Polotsk District at the address: Miory, Komunisticheskaya St., Bldg. 9, office 1 for residents of Miory and the Miory District.

Reception schedules are posted on the notice board at the tax authority.

Declaration acceptance hours: until April 1, 2020: on weekdays from 8:00 to 19:00, as well as on March 21 and 28, 2020 from 9:00 to 13:00. Inquiry phones: 5-15-23, 5-14-64 (8 02152).

The tax must be paid no later than June 1, 2020.

More detailed information can be obtained on the website of the Ministry of Taxes and Duties in the section "Submission of income tax returns by individuals for 2019", at the tax inspectorate, as well as in the Contact Center of the Ministry of Taxes and Duties by phone 189 (landline) or +37517 229 79 79.

Information and explanatory work sector

Ministry of Taxes and Duties Inspectorate for the Polotsk District

Deputy Head of the Inspectorate N.S. Shalamaeva

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1. On the procedure for fulfilling tax obligations through the Automated Information System for the Execution of Monetary Obligations (AIS EDO) and the application of administrative responsibility under Article 13.6 of the Code of Administrative Offenses

In accordance with the Decree of the President of the Republic of Belarus of October 16, 2018 No. 414 "On improving cashless payments" (hereinafter referred to as Decree No. 414), a new automated information system for the execution of monetary obligations (AIS EDO) has been operational in the republic since January 1, 2020.

The introduction of the specified mechanism is primarily aimed at developing the automation of undisputed recovery of funds when executing payers' obligations, as well as at eliminating instances of multiple debiting of the same amount of funds from all accounts of a payer, and simplifies the procedure for payers* to make payments to the budget in case of insufficient funds in their bank accounts and electronic money in electronic wallets to fully meet their obligations to the budget.

*For the purposes of Decree No. 414, payers are understood to be legal entities, including branches, representative offices, and other separate divisions of legal entities that execute their monetary obligations, organizations that are not legal entities, as well as individuals, including individual entrepreneurs.

The system's operation in a simplified order is as follows.

Upon receipt of payment demands from creditors and payment instructions from payers by the AIS EDO, the total debt amount of the payer is determined, after which an electronic document containing the total amount of the payer's unfulfilled monetary obligations is generated and sent to each of the payer's banks.

Based on the information received from banks about the availability of funds in the payer's accounts and its payment instruction, the system generates an AIS EDO payment instruction (including for partial payment) and sends it to the bank for execution in the order established by law. If funds are available, it is executed.

Under the current conditions, in order to exclude grounds for applying administrative responsibility in accordance with Article 13.6 of the Code of the Republic of Belarus on Administrative Offenses (hereinafter referred to as the Code of Administrative Offenses), the taxpayer must timely send a payment order (orders) to the bank for the full payment of the tax liability:

to one or more accounts – if there are sufficient funds on them to fully fulfill the tax liability;

· to one of the accounts (with subsequent dispatch by the bank for execution through the AIS IDO) – if there are insufficient (no) funds on its accounts to fully fulfill the tax liability.

For reference: in accordance with the conditions of note 2 to Article 13.6 of the Code of Administrative Offenses, the non-payment or incomplete payment by the taxpayer, or other obligated person, of the amount of tax, duty (fee) shall not be an administrative offense if they have not fulfilled their tax obligation due to the absence of sufficient funds on their current (settlement) bank accounts to fulfill the orders timely sent by the taxpayers (other obligated persons) for the transfer of tax, duty (fee) amounts in full.

Let's consider conditional situations with the following examples.

Example 1. The taxpayer has 3 accounts in banks. The amount of funds on the account in bank No. 1 is 10 rubles, on the account in bank No. 2 – 5 rubles, there are no funds on the account in bank No. 3.

The amount of tax (VAT) payable by the deadline of 22.01.2020 is 10 rubles.

In this case, on 22.01.2020, the taxpayer can send a payment order to bank No. 1 for the payment of VAT in the amount of 10 rubles, or payment orders to bank No. 1 for the payment of VAT in the amount of 5 rubles and to bank No. 2 for the payment of VAT in the amount of 5 rubles.

Example 2. The taxpayer has 3 accounts in banks. The amount of funds on the account in bank No. 1 is 2 rubles, on the account in bank No. 2 – 3 rubles, on the account in bank No. 3 – 5 rubles.

The amount of tax (VAT) payable by the due date of 22.01.2020 is 10 rubles.

In this case, the taxpayer can send to the bank on 22.01.2020:

Option 1 – a payment order to bank No. 1 for the payment of VAT in the amount of 2 rubles, a payment order to bank No. 2 for the payment of VAT in the amount of 3 rubles, a payment order to bank No. 3 for the payment of VAT in the amount of 5 rubles;

Option 2 – a payment order to bank No. 1, or bank No. 2, or bank No. 3 for the payment of VAT in the amount of 10 rubles.

Example 3. The taxpayer has 3 accounts in banks, with no funds in any of the accounts, or with 2 rubles in one account.

The amount of tax (VAT) payable by the due date of 22.01.2020 is 10 rubles.

In this case, the taxpayer sends a payment order to any of the available accounts on 22.01.2020 to pay VAT in the amount of 10 rubles.

2. ATTENTION ORGANIZATIONS AND INDIVIDUAL ENTREPRENEURS RECEIVING CASH PAYMENTS CONNECTED TO THE CASH REGISTER EQUIPMENT CONTROL SYSTEM!

Since 18.12.2019, the automated information system for cash register equipment control (hereinafter referred to as AIS KKO) has implemented the report "Sales by Payment Documents for the Period by Cash Register Equipment (detailed by dates)" (revenue according to check data) and the report "Sales according to Z-reports by Cash Register Equipment (detailed by dates)" (reports 34 and 35), which are available for use and testing in January – March 2020.

In the report "Sales by Payment Documents for the Period by Cost Center (Date Detail)" (revenue according to check data), the column "Advance Payment Amount (Certificates)" has been implemented. The reflection of advance payment amounts, for example, when selling gift certificates, is possible when cash-registering summing devices (hereinafter referred to as CRSDs) are configured by maintenance and repair centers (hereinafter referred to as MCCs) in cash-registering summing devices (hereinafter referred to as cash registers) with appropriate identification for gift certificate sales checks (other advance payment funds). Entities working with gift certificates and other types of advance payments need to contact the MCC for configuration in the cash registers used with the appropriate identification for gift certificate sales, and receipt of other advance payments.

Taking into account the testing of new reports in January – March 2020, and the provision of the opportunity for business entities to configure cash equipment for accounting for advance payments in the Automated Information System of Cash Registers (hereinafter referred to as AIS CR), the moratorium is extended until April 1, 2020 regarding the submission of information provided for in clause 8 of the Regulation approved by the Resolution of the Council of Ministers of the Republic of Belarus and the National Bank of 06.07.2011 No. 924/16, i.e., in case of detecting a discrepancy between the information on the amount of funds reflected in the daily (shift) report (Z-report) and the information on the amount of funds for that working day (shift) reflected in the AIS CR, until 04/01/2019, they may not notify RUP "IIC" about this.

Also, during the period until 03/31/2019, tax authorities, when carrying out камеральный control in accordance with Art. 73 of the Tax Code of the Republic of Belarus regarding the completeness of revenue reflection by business entities, will not analyze the data contained in the AIS CR.

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December 31, 2019 is the last day for submitting a notification to the tax authority on switching to a simplified taxation system

The Ministry of Taxes and Levies Inspectorate for the Polotsk District reminds that December 31, 2019 is the deadline for submitting a notification to the tax authority at the place of registration on switching to a simplified taxation system in 2020.

Organizations are entitled to apply the simplified tax system if their average employee count for the first nine months of 2019 does not exceed 100 people, and their cumulative gross revenue for these nine months is no more than 1,465,565 Belarusian rubles;

Please note that organizations engaged in certain types of activities, as specified in paragraph 2 of Article 324 of the Tax Code of the Republic of Belarus, are not eligible to apply the simplified tax system.

MNS Inspectorate for Polotsk District 74 18 25 (8 0214).

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On Profit Tax Exemption

for the Sale of Innovative Goods

A new List of Innovative Goods has been approved and is effective from 01.07.2019 (approved by Resolution of the Council of Ministers of the Republic of Belarus No. 1042 dated 05.12.2013, as amended by Resolution No. 447 dated 02.07.2019). For such goods, the Tax Code of the Republic of Belarus (paragraph 7 of Article 181) provides for exemption from profit tax. The conditions for applying the exemption are:

• the goods of own production are included in the said List,
• the goods must be produced during the validity period of the certificate of own production (a copy of the certificate is provided to the tax authority at the place of registration),
• the sale of goods is carried out during the period in which they are included in the List,
• legally protectable results of intellectual activity are used in the creation of goods, but only those that were not involved in the production of other goods previously included in the List, and no more than 3 years have passed since the date of issuance of patents for them (with the exception of patents for inventions),
• the period from the 1st day of the month of recognition of revenue from the first sale of goods in accounting to the 1st day of the month of submission of the set of application documents for inclusion of goods in the List to the State Committee on Science and Technology does not exceed 2 years,
• separate accounting of goods eligible for exemption.

Organizations manufacturing innovative goods excluded from the List lose the right to exempt profits from their sale from 01.07.2019. Organizations producing new types of goods included in the List, from the specified date, subject to all conditions, can take advantage of the profit tax benefit.

Deputy Head of Inspection N.S. Shalamaeva

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FEATURES OF VAT DEDUCTION

BY AGRICULTURAL ORGANIZATIONS

The amounts of value added tax presented upon acquisition or paid upon import of goods (works, services), property rights at the expense of gratuitously received budget funds or state extra-budgetary fund budgets are not subject to deduction (part 1, subparagraph 24.4, paragraph 24, Article 133 of the Tax Code of the Republic of Belarus (hereinafter referred to as the Code)). The specified VAT amounts are attributed to these sources or to the increase in the cost of goods (works, services), property rights.

If fertilizers, pesticides, fuel and lubricants were initially purchased at the expense of own funds (before the transfer of funds from the budget to the organization, or before the repayment of debt to the supplier with budget funds), the related VAT amount can be deducted on the basis of electronic invoices (hereinafter referred to as E-invoices) received from sellers and signed by the recipient of the E-invoice (subparagraph 5.1, paragraph 5, Article 132 of the Code). However, after receiving budget financing or a notification that the debt to the supplier has been repaid with budget funds, deductions must be reduced by the corresponding VAT amounts.

To do this, on the E-invoice portal, in your personal account, you need to place the cursor on the required E-invoice and select the "Manage deductions" action (in the context menu or by the button of the same name). In the opened list of possible deduction management options, you need to select the "Not subject to deduction" indicator and specify the date from which this indicator is valid (the date of receipt of budget financing).

Similarly, deductions are reduced when financing is received for the subsidization of seeds. Deductions are reduced by agricultural organizations whose debt to the supplier for purchased seeds has decreased.

First Deputy

Head of Inspection

I.V. Akulinicheva

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If you have not been conducting business activities for a long period…

A business entity that is unable to continue its business activities should consider terminating its activities, for which it should independently submit an application for liquidation. Based on such an application, a decision will be made to initiate the liquidation procedure.

In case of failure to submit an application, the taxpayer's activities shall be terminated (liquidated) by the registering authority due to the non-commencement of entrepreneurial activities for two consecutive years, based on the submission of the tax authority.

During a tax audit for liquidation purposes, the entity is obliged to provide documents related to its activities.

In case of failure to provide documents, including their loss, the responsible official of the organization (individual entrepreneur) shall be brought to administrative responsibility.

If the taxpayer evades appearing at the inspection and fails to provide documents for the inspection, the tax authority has the right to conduct an inspection based on information on cash flow in bank accounts or information received from third parties. Such inspections usually lead to significant additional charges of taxes and fines. Non-payment of taxes in large amounts is grounds for sending audit materials to financial investigation bodies and may result in criminal proceedings against the responsible officials of the organization (individual entrepreneur) who committed the violation.

Carrying out operations on the entity's bank accounts, entering into transactions not related to liquidation (termination of activities) is prohibited. For violation of this procedure, administrative responsibility is provided in the form of a fine with confiscation of up to 100% of the income received as a result of such activities, as well as the tools and means of committing the administrative offense.

In case of submitting a proposal (suggestion) for the liquidation of an organization, termination (suspension) of the activities of an individual entrepreneur, the tax inspectorate at the place of taxpayer registration has the right to issue an order to cease the use of issued forms of strict accountability, which are assigned the status "Invalid" in the electronic database, after which the forms are not subject to restoration.

Avoiding negative consequences (including administrative and criminal) is primarily the taxpayer's task, therefore, it is the taxpayer who bears the responsibility for timely decision-making on liquidation (termination of activities), as well as for the preservation and submission to the tax authority of all documents necessary for the audit.

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On July 4, 2019, a new version of the "Taxpayer's Personal Account" was posted on the portal of the Ministry of Taxes and Duties of the Republic of Belarus, intended for all categories of taxpayers. Access to it is provided via a link located on the main page of the official website of the tax authorities.

The new version provides electronic services for all categories of taxpayers – organizations, individuals, and individual entrepreneurs, with the ability to authorize using an account and password, an electronic digital signature (EDS), or a mobile EDS.

The service now operates on a new technological platform. Everything is designed to be as convenient and simple as possible for taxpayers. When entering the personal account, an additional notification about debt or overpayment of tax payments to the budget appears.

For organizations and individual entrepreneurs, a new service "Inquire about a Complaint" is provided, which allows viewing information about submitted appeals to the tax authority and the status of their consideration.

For legal entities, access to the "Taxpayer's Personal Account" is carried out only using an EDS.

Individual entrepreneurs can submit tax declarations (calculations) and applications for administrative procedures to the tax authorities in electronic form only when signed with an EDS.

Please note that using the new version of the taxpayer's personal account with an electronic digital signature (EDS) key requires the installation of Internet Explorer version 11 on the user's workstation. Older browser versions (versions 8, 9, and 10) are not supported in this case.

Until the end of the current year, the previously existing version of the personal account for organizations and individual entrepreneurs will be supported and available on the Ministry of Taxes and Duties portal (http://portal.nalog.gov.by/)

Information and Outreach Sector

First Deputy

Head of Inspection

I.V. Akulinicheva

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On resort fees

On submission of reporting

Taxes as a tool to stimulate the investment attractiveness of the Republic

The main drivers of the economy are, first and foremost, the knowledge, skills, and results of human labor, presented in the form of new products or processes. Today, video conferencing, cloud data transmission technologies, and WiFi communication are perceived as commonplace.

Society needs to understand the importance of state policy aimed at supporting the national innovation system, as the creation and use of innovative products, covering various spheres of life (medicine, pharmaceuticals, construction, environmental protection, energy and resource conservation, industrial biotechnology, etc.), provides an opportunity to involve young people in these processes. State support in the form of tax benefits increases the accessibility and attractiveness of scientific and innovation processes, thereby ensuring the development of "person – business – state" relations.

Tax preferences for business entities that produce innovative and high-tech products, as well as carry out scientific research and invest in relevant activities, are presented in the form of exemption from calculation and payment of taxes, reduced rates, and reduction of the tax base.

Thus, the profit of organizations received from the sale of innovative and high-tech products of their own production is exempt from taxation if the share of revenue from such sales is more than 50% of the total revenue, and is taxed at a rate of 10% if the share of revenue is 50% or less. A reduced profit tax rate of 10% is provided for science and technology parks (hereinafter referred to as technoparks) and their residents, technology transfer centers.

Technoparks and their residents are exempt from paying up to 50% of the profit tax and the tax under the simplified taxation system (STS) in the amount of funds actually transferred by them in the relevant reporting (tax) period to the innovation development fund.

The costs taken into account for taxation include expenses for conducting research, experimental design and experimental technological work, registered in the established manner in the state register (hereinafter referred to as R&D), one and a half times (if the created product is not depreciable property, for example, a fixed asset, an intangible asset).

Turnover from the sale of R&D within the territory of the Republic of Belarus is exempt from value added tax.

Until January 1, 2020, capital structures (buildings, structures), their parts, as well as land plots (hereinafter referred to as objects) of scientific organizations and technoparks are exempt from property tax and land tax. In addition, until January 1, 2020, organizations transferring objects for rent (other paid or gratuitous use) to scientific organizations and technoparks also have the right to a benefit on property tax and land tax for these objects.

Residents of the High-Tech Park are entitled to apply exemption from value added tax and profit tax, and the personal income tax for employees of companies that are residents of the Park is 9%.

At the same time, the existence of special benefits does not deprive subjects of the right to apply generally established tax preferences.

MNS Inspection for Polotsk District

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On Preferences for Entities in the Orsha Region

To define the most comfortable conditions and develop the most rational approaches to the development of the republic's regions, the President of the Republic of Belarus signed Decree No. 506 of December 31, 2018. The experimental object of the program approved by this Decree was the Orsha district. The main task is to stimulate entrepreneurial activity, create attractive conditions for its implementation, which, ultimately, should lead to stability and increased budget revenues. The main incentive is tax benefits.

Thus, business entities in the Orsha district are exempt from paying VAT on the import of technological equipment. The tax rate for them under the simplified system is reduced to 2% for the sale of works, services and to 1% for the sale of own manufactured goods. Deferral of tax payments will occur without interest for its use. The maximum limits of investment deduction have been increased. In addition, until December 31, 2023, a moratorium on unscheduled inspections is introduced in the Orsha district, and a list of cases for conducting unscheduled inspections has been established.

To use the preferences within the Program, the following are required:

• registration in the Republic of Belarus with a location (residence) in the Orsha district,
• production of own manufactured goods (works, services) in the territory of the Orsha district,
• a valid certificate of own manufactured goods (works and services).

More complete information can be found on the website of the Ministry of Taxes and Duties of the Republic of Belarus at http://www.nalog.gov.by in the section "On the Development of the Orsha District of the Vitebsk Region", as well as in the section "IMNS for the Vitebsk Region" "Press Center" "News".

MNS Inspection for Polotsk District

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On SCNO

On June 29, 2018, the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus adopted Resolution No. 514/9 "On Amendments to the Resolution of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus of July 6, 2011 No. 924/16" (hereinafter referred to as the Resolution).

Thus, the deadlines for the prohibition of the use of cash registers and ticket printing machines (hereinafter referred to as CRs), for which 6 years have passed since the date of their first registration with the tax authority, have been extended until 01.01.2020.

The Resolution also provides for the extension of the deadlines for accepting cash and (or) bank payment cards using CRs without the established tax authority control device (hereinafter referred to as SCNO) for legal entities that have concluded a civil law contract for the installation, maintenance, and removal of SCNO, as well as for individual entrepreneurs (with the exception of stages in accordance with which business entities and the cash registers used by them are already connected to the SCKO).

Deadlines for installing SCNO on cash equipment

Entities obliged to install SCNO	DEADLINE
	for concluding a contract for SCNO installation	for installing SCNO on cash equipment (provided that a contract is concluded with RUP "IIC")
Legal entities in cities of regional subordination and Minsk	until February 1, 2018	until May 1, 2019
Legal entities in cities of district subordination	until June 1, 2018	until September 1, 2019
Legal entities throughout the territory of the Republic of Belarus	by July 1, 2018	by October 1, 2019
Individual entrepreneurs in cities of regional subordination and Minsk city	by September 1, 2019	by November 1, 2019
Individual entrepreneurs in cities of district subordination	by October 1, 2019	by December 1, 2019
Individual entrepreneurs throughout the Republic of Belarus	by November 1, 2019	by January 1, 2020

The 10 cities of regional subordination include: Brest, Baranovichi, Pinsk, Vitebsk, Novopolotsk, Gomel, Grodno, Zhodino, Mogilev, Bobruisk.

The 102 cities of district subordination include:

Brest region: Berezа, Belozersk, Gantsevichi, Drogichin, Zhabinka, Ivanovo, Ivacevichi, Kossovo, Kamenec, Vysokoе, Kobrin, Luninec, Mikashevichi, Lyahovichi, Malorita, Pruzhany, Stolin, David-Gorodok;

Vitebsk region: Braslav, Verkhnedvinsk, Glubokoe,

Gorodok, Dokshitsy, Dubrovno, Lepel, Miory, Disna,

Orsha, Barаn, Polotsk, Postavy, Senno, Tolochin, Chashniki, Novolukoml;

Gomel region: Buda-Koshelevo, Vetka, Dobrush, Yel'sk, Zhytkavichy, Turov, Zhlobin, Kalinkovichi, Mozyr, Narovlya, Petrykov, Rechitsa, Vasilevichi, Rogachev, Svetlogorsk, Khoiniki, Chechersk;

Grodno region: Volkovysk, Skidel, Dyatlovo, Ivye, Lida, Berezovka, Mosty, Novogrudok, Ostrovets, Oshmyany, Svisloch, Slonim, Smorgon, Shchuchin;

Minsk region: Berezino, Borisov, Vileyka, Volozhin,

Dzerzhinsk, Fanipol, Kletsk, Kopyl, Krupki, Logoisk, Lyuban, Zaslavl, Molodechno, Myadel, Nesvizh, Maryina Gorka, Slutsk, Smolevichi, Soligorsk, Starie Dorogi,

Stolbtsy, Uzda, Cherven;

Mogilev region: Bykhov, Gorki, Kirovsk, Klimovichi, Klichev, Kostyukovichi, Krichev, Mstislavl, Osipovichi, Slavgorod, Chausy, Cherikov, Shklov.

Information and Explanation Sector

of the Ministry of Taxes and Duties Inspectorate for the Polotsk District"

First Deputy Head of the Inspectorate I.V. Akulinicheva

Procedure for accepting cash when selling goods (works, services) for cash: what's new?

On 07.07.2018, Resolution No. 1040/17 of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus "On Amendments and Additions to Resolution No. 924/16 of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus dated July 6, 2011" came into force.

The procedure for using cash registers, payment terminals, automatic electronic devices, vending machines, as well as accepting cash, funds in case of cashless payments using bank payment cards when selling goods, performing work, providing services, carrying out gambling business, lottery activities, conducting electronic interactive games has undergone some changes.

Thus, business entities providing services for the provision (rental (sublease)) of residential premises, when providing services for the provision of residential premises (parts thereof) in dormitories, and renting out (subleasing) residential premises (with the exception of residential premises in hotels, sanatoriums, rest houses (bases), health centers (complexes), hunter's lodges), garden houses, dachas, including for short-term stays, may accept cash without using cash registers and (or) payment terminals.

At the same time, the obligation to use cash registers when accepting cash has been introduced for:

• Catering organizers in catering facilities located in general secondary education institutions, vocational-technical education institutions, special general secondary schools (special general secondary boarding schools), secondary schools of the Olympic reserve, specialized educational and sports institutions;
• Individual entrepreneurs providing services for the use of paid toilets;
• Medical workers of structural divisions of state healthcare organizations located in rural settlements, engaged in retail trade of medical equipment, medical devices, and other pharmacy assortment goods.

At the discretion of the entity, in addition to conventional cash registers, which must now be equipped with tax control tools, a software-based cash register system will be used for cash transactions. This system is a complex that includes software cash registers, hardware and software of the software-based cash register system operator, and other elements intended for accounting of cash transactions and interaction with the cash register control system.

Attention taxpayers!

On June 29, 2018, the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus adopted Resolution No. 514/9 "On Amendments to the Resolution of the Council of Ministers of the Republic of Belarus and the National Bank of the Republic of Belarus of July 6, 2011 No. 924/16" (hereinafter referred to as the Resolution).

In order to reduce the costs of legal entities and individual entrepreneurs for replacing cash registers, including the possibility of switching to software cash registers, the Resolution **extends the deadlines for the prohibition of the use of cash registers and ticket printing machines (hereinafter referred to as cash registers), for which 6 years have passed since the date of their last registration with the tax authority, until January 1, 2020.**

The Resolution provides for:

• extending the period for accepting cash and (or) bank payment cards using cash registers without a registered control and accounting device (SCNO) (provided that a civil law contract for the installation, maintenance, and removal of SCNO is concluded) for legal entities specified in the sixth subparagraph of sub-point 2.6 of the first part of point 2 of Resolution No. 924/16, from six to fifteen months;
• changing the deadlines for connecting cash registers to SCNO (concluding a civil law contract with RUP IIC for the installation, maintenance, and removal of SCNO) for individual entrepreneurs specified in the seventh subparagraph of the first part of sub-point 2.6 of point 2 of Resolution No. 924/16, to 9 months.

Taking into account the amendments, the right to accept cash and (or) bank payment cards using cash registers without a registered control and accounting device (SCNO) (provided that a civil law contract for the installation, maintenance, and removal of SCNO is concluded) is granted to legal entities engaged in activities:

• in cities of regional subordination and Minsk - until May 1, 2019;
• in cities of district subordination - until September 1, 2019;
• throughout the territory of the Republic of Belarus - until October 1, 2019.

Individual entrepreneurs operating in cities of regional subordination and the city of Minsk will be required to connect to the cash register equipment control system by September 1, 2019, in cities of district subordination – by October 1, 2019, and throughout the Republic of Belarus – by November 1, 2019.

The connection of cash register equipment to the SKKO will be carried out within the deadlines established by the schedules formed by the RUE "Information and Publishing Center for Taxes and Levies", taking into account the agreements signed with business entities, which provide for a specific connection deadline for each unit of cash register equipment to the SKKO.

The schedules for connecting cash register equipment to the SKKO are posted on the website of the Republican Unitary Enterprise

"Information and Publishing Center for Taxes and Levies" http://skko.by/.

Sector for Information and Explanatory Work

of the Ministry of Taxes and Levies Inspectorate for Polotsk District"

Deputy

Head of Inspectorate

N.S. Shalamaeva

On Tax Consulting

Attention Taxpayers!

Articles 188 and 201-1 of the Tax Code of the Republic of Belarus establish the right of local Councils of Deputies to increase, by no more than two and a half times, the rates of property tax and land tax for certain categories of taxpayers, as well as to increase (but by no more than ten times) the rates of property tax for unused (inefficiently used) capital structures (buildings, structures) and land tax for plots occupied by such structures.

To stabilize the financial activities of organizations and individual entrepreneurs, subparagraph 5.1 of paragraph 5 of Decree of the President of the Republic of Belarus of November 23, 2017 No. 7 (hereinafter referred to as Decree No. 7) establishes a ban on increasing tax rates and introducing new taxes, fees (duties) until 2020. These provisions of Decree No. 7 are universal in nature and apply to tax payments and their rates established at both the republican and local levels.

Thus, from the date of entry into force of Decree No. 7 (from 26.02.2018) until 31.12.2019 (inclusive), only basic rates increased based on relevant decisions of local authorities that entered into force before 26.02.2018 shall apply. A reduction in rates based on decisions of local Councils of Deputies is possible.

Information and Explanation Sector

of the Ministry of Taxes and Levies Inspectorate for Polotsk District

8 0214 74 18 25

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