207 Condominiums of Chernivtsi received “unnatural” status of performers of housing and communal services ("managing a building, structure or group of buildings and maintenance of buildings, structures and surrounding areas") through an unlawful decision of the executive committee of Chernivtsi City Council No.517/14 of 23.8.2011 “On the definition of performers of housing and communal services in housing fund in Chernivtsi and recognition as being invalid, the decision of the Executive Committee on these issues.”
Appeals on such violations of rights to the central executive bodies were so numerous that the Ministry of regional development, construction and housing and communal services of Ukraine published a clarification “On the status of condominiums as a participant of the housing and communal services” of 26.04.11 No.7/15-4687, which, apparently, hasn’t reached the executive committee of Chernivtsi city council. Even though the clarification was given in April and the resolution was adopted in August.
A mentioned clarification with reference to the certain legislative acts, states: “… Condominium is not a management entity and can’t be a producer or performer of housing and communal services …”, “… Condominium can only be a consumer - as a collective customer (subscriber)."
Experts stress on the following negative consequences for Condominiums, in case it will be recognized as a performer of housing and communal services:
- Condominium is opposed to co-owners
- Costs paid by owners are considered as payment for services, subject to corporate income tax and VAT
- The control of Condominiums on consumer rights protection, the compliance with laws on economic competition protection etc
It seems that Chernivtsi statesmen consider themselves wiser than the rest, or are so incompetent that they can barely comprehend the meaning of explanation of the ministry “On the status of condominiums as a participant of the housing and communal services” of 26.04.11 No.7/15-4687. Or do they really hope that these 207 Condominiums will take as granted, for example, the necessity of paying VAT in case contributions and payments of co-owners will reach 300 thousand UAH in a year? Whereas, regardless of the amount of contributions and payments, condominium association is neither a VAT payer nor profit tax payer.
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