To the attention of taxpayers - electricity producers
Electricity producers with entry into force on 16.04.2022 of the Law of Ukraine as of 01.04.2022 № 2173-IX "On amendments to the Tax Code of Ukraine and other legislative acts of Ukraine on the administration of certain taxes during the martial law, state of emergency" must take into account innovations calculating excise tax and compiling the Excise tax declaration.
Provisions of Paragraph 38-1 Sub-section 5 Section XX "Transitional Provisions" of the Code temporarily, from 01.03.2022 until termination or abolition of the martial law, state of emergency in Ukraine, stipulate that date of occurrence of excise tax liabilities for electricity sales is the date of crediting (receiving) funds to the bank account or the date of receipt of other types of compensation for sold electricity.
Further, at the end of the temporary validity of above specified rules, it is provided that for all electricity producers:
from the first tax period following the period of termination or abolition of the marital law, state of emergency in Ukraine – date of drawing up a document certifying electricity supply according to Paragraph 216.10 Article 216 of this Code (for electricity sold starting from the first tax period following the period of cessation or abolition of the martial law, state of emergency in Ukraine) and date of crediting (receiving) funds to the bank account or the date of receiving other types of compensation (for electricity sold in a period from 01.03.2022 to the last tax period when the martial law, state of emergency in Ukraine inclusively was terminated or canceled).
In addition, for all electricity producers, the date of occurrence of tax liabilities for the supply of electricity has been changed. This date is the date of the document certifying electricity supply, while previously it was the date of signing an act of transfer and transmission of electricity. This norm will continue to apply after an end of the martial law.
In view of the above specified and on the date of entry into force of the Law № 2173, in order to ensure completeness of declaration of the excise tax liabilities on electricity sales, starting from the reporting period of April 2022, it is suggested for electricity producers to make appropriate changes to the current form of excise tax declaration and to submit Annex 10 to the excise tax declaration in the form given in Annex 1 to letter of the State Tax Service as of 02.02.2022 №209 / 99-00-21-03-03-07, posted at the link:
Please note that as occurrence of the excise tax liability on electricity involves simultaneous existence of two events: crediting (receiving) funds to the bank account or receiving other types of compensation and the sale of electricity as operation in the customs territory of Ukraine, which provides shipment, in this case the sale of electricity and tax liability are determined in the reporting period in which occurred:
crediting (receiving of funds to the bank account or received other types of compensation and realization – sale of electricity in previous reporting periods subject to Paragraph 38-1 Sub-section 5 Section XX of the TCU;
realization – sale of electricity and crediting (receiving) of funds to the bank account or received other types of compensation in previous reporting periods;
simultaneous crediting (receiving) of funds to the bank account or receiving other types of compensation and realization – sale of electricity.
