To the attention of retail trade entities that sell excisable products and excise tax payers that sell fuel or ethyl alcohol

In connection with numerous requests from taxpayers and in order to avoid disrupting the declaration campaign of excise tax liabilities from the sale of excisable products by retail trade entities, the State Tax Service of Ukraine informs the following!

Sub-paragraph 212.1.11 Paragraph 212.1 Article 212 of the Tax Code of Ukraine (hereinafter – the Code) stipulates that payer of excise tax on the sale of excisable products by business entities is a person – retail business entity that sells excisable products.

According to Paragraph 49.1 Article 49 of the Code, the tax declaration, particularly the excise tax declaration (hereinafter – the Declaration) is submitted for reporting period within the time limits established by this Code to the controlling body where the taxpayer is registered.

According to Sub-paragraph 212.3.1¹ Paragraph 212.3 Article 212 of the Code, individuals – retail trade entities that sell excisable products are subject to mandatory taxpayers’ registration at the controlling body at location of the product sales unit not later than the deadline for submission of Declaration for the month when business activity is carried out.

According to the First paragraph of Paragraph 2 Section I of the Procedure for filling in and submitting the excise tax declaration, approved by Order of the Ministry of Finance of Ukraine dated 23.01.2015 № 14 with amendments (hereinafter – the Procedure), individuals specified in Article 212 of the Code as excise tax payers must draw up and submit the Declaration.

According to Paragraph 10 Section V of the Procedure, Annex 6 “Calculation of excise tax on the sale of excisable products by retail trade entities” to the Declaration is filled in separately for each administrative-territorial unit, within which there are places of excisable product sales, with mandatory indication of the relevant code of local self-government according to Classifier of objects of the administrative-territorial organization of Ukraine.

In order to properly distribute amounts of excise tax on the retail sale of excisable products between local budgets, section “D” (operation code D 1.1) and Annex 6 to the Declaration are related to codes of the administrative units under Classifier of objects of the administrative-territorial organization of Ukraine.

Until the end of period of separate fulfillment of budgets by merged territorial communities, all functions of merged local financial authorities of territorial communities are performed by:

relevant local financial authorities established before the merging of territorial communities;

relevant local financial authorities established before the merging of territorial communities; 

village, settlement, city mayor elected by the joint territorial communities, if in the relevant territorial communities local financial authorities were not established according to the law.

List of accounts for crediting revenues to the state and local budgets is posted on the official web portal of the State Tax Service in section “Budget Accounts”.

Business entity of the retail sale of excisable products that has sales units in one or more settlements that are part of the territorial community, which belongs to the controlling body at the main place of payer’s registration, must submit Declaration and fill in one Annex 6 to the Declaration with code under Classifier of objects of the administrative-territorial organization of Ukraine at the main place of registration, which indicates all sales of excisable products and tax liabilities that arose as a result of activities on the territory of territorial community. Herewith, in Annex 10 to the Declaration, the payer must indicate the accrual of excise tax in the context of each code according to Classifier of objects of the administrative-territorial organization of Ukraine, which was before the merging of territorial communities.

Business entity of the retail sale of excisable products that has sales units in one or more settlements that are part of the territorial community, which does not belong to the controlling body at the main place of payer’s registration, must submit one Declaration and one Annex 6 (indicating the independently selected code of Classifier of objects of the administrative-territorial organization of Ukraine, according to which there are sales units of excisable products, which was before the merging of territorial communities). In this case, in Annex 10 to the Declaration, payer indicates the accrual of excise tax in the context of each code of the Classifier of objects of the administrative-territorial organization of Ukraine, which was before the merging of territorial communities.

According to Article 64 of the Budget Code of Ukraine, revenues of the general fund of budgets of rural, settlement and city territorial communities include excise tax on the sale of excisable products by he retail trade entities.

In this case, the First paragraph of Part 9 Article 8 of the Law of Ukraine as of 05.02.2015 № 157-VIII “On voluntary association of territorial communities”, with amendments (hereinafter – the Law № 157), it is established that budgets of territorial communities are fulfilled separately until the end of budget period, taking into account features determined by Part 9 Article 8 of the Law № 157.

As of declaration of tax liabilities from excise tax on the sale of fuel and ethyl alcohol, please note that according to changes made to the Procedure by Order of the Ministry of Finance of Ukraine dated 08.12.2020 № 747, for excise tax payers who sell fuel or ethyl alcohol (Sub-paragraph 212.1.15 Paragraph 212.1 Article 212 of the Code), there are changed order of reflection in Annex 1¹ (amount of excise tax on the sale of fuel) and in Annex 1² (amount of excise tax on the sale of ethyl alcohol) to the Declaration of sold / received fuel for indicators of excise invoices / calculation adjustments to excise invoices.

In particular:

Columns 4 and 5 indicate volumes of received / sold / fuel or ethyl alcohol by the business entity in the reporting period, specified in second / first copies registered in the Unified Register of Excise Invoices:

Excise invoices drawn up in the reporting period;

Calculation adjustments to excise invoices, which adjust indicators of excise invoice drawn up in the reporting period.

According to Paragraph 46.4 Article 46 of the Code, in Annex 10 to the Declaration, the taxpayer may provide a transcript to Annex 1¹ and / or Annex 1² regarding the volumes of received / sold excisable products for which excise invoices were drawn up in previous reporting periods, as well as according to excise warehouses / mobile excise warehouses indicating their unique number in terms of goods (products) by codes according to Ukrainian classification of the FEA goods.

Reminder! According to Paragraph 120.1 Article 120 of the Code, for the non-submission or late submission of tax declarations (calculations) by the taxpayer or other persons obliged to accrue and pay taxes and fees, as well as other reporting and obligation to submit them to controlling bodies provided by the Code, there is envisaged imposition of a fine in amounts provided for in this Article, for each such non-submission or late submission.