Taxpayers, attention!
Law of Ukraine № 1914 as of 30.11.2021 "On amendments to the Tax Code of Ukraine and other legislative acts of Ukraine to ensure balance of budget revenues" amended the Tax Code of Ukraine (hereinafter – Code) in terms of the VAT taxation procedure for supply of tobacco products.
Article 189 Section V of the Code is amended with Paragraph 189.18, according to which the tax base for supply of tobacco products in the customs territory of Ukraine, as well as tobacco and industrial tobacco substitutes, liquids used in electronic cigarettes (hereinafter – tobacco products) for which the maximum retail prices are set, is the maximum retail price of such products without the value added tax.
Therefore, procedure established by Paragraph 189.18 for determining tax base is applicable exclusively to three categories of taxpayers:
- business entities – producers of tobacco products;
- business entities related to control relations with producers within the meaning of the Law of Ukraine "On protection of economic competition" (hereinafter – controlled business entities).
List of controlled business entities is approved by the Cabinet of Ministers of Ukraine;
- importers of tobacco products.
Business entities that carry out supply of such tobacco products but which do not belong to category of tobacco producers or to category of controlled entities, or to importers of such products (hereinafter – "Other entities"), apply regime of exemption from taxation from 01.01.2022 established by Paragraph 197.27 Article 197 of the Code regardless of the date of purchase of such products.
Given above specified, the State Tax Service of Ukraine draws attention of business entities to the need of "Other business entities" registered as the VAT payers from 01.01.2022 in following requirements for reflection of required requisites (in tobacco trade) in the settlement documents (checks RRO / software RRO), according to Regulations on the form and content of settlement documents / electronic settlement documents, approved by Order of the Ministry of Finance of Ukraine № 13 as of 21.01.2016, in particular:
name (title) of products (services), cost, lettering of the VAT rate (separate for products exempted from taxation and separate for products subject to the VAT) (line 10);
in a separate line the letter designation of the VAT rate, size of the VAT rate in percent, total amount of VAT on all products subject to the VAT in a check at the beginning of a line must contain printed capital letters "VAT" (line 21).
With adoption of the Law of Ukraine № 2218-IX as of 21.04.2022 "On amendments to the Law of Ukraine" On the state budget of Ukraine for 2022 " and amendments to the Budget Code of Ukraine№ 2456-VI as of 08.07.2010 with changed and amendments (hereinafter – BCU), from 01.05.2022 certain provisions of the Law № 1914 come into force regarding the transfer to producers and importers of an obligation to pay 5% of the excise tax on the sale of tobacco products by retail trade entities.
Paragraph 40 Sub-section 5 Section XX "Transitional Provisions" of the Code stipulates that temporarily until 01.01.2023 the excise tax payment on the sale of excisable products (tobacco products) by retail trade entities produced before 01.04.2022, including foreign producers and not sold to end consumers until 01.04.2022 is carried out in manner and under conditions in force until 01.04.2022.
Given above specified, the State Tax Service informs business entities about the need to ensure requirements for reflection (in the trade of tobacco products) in the settlement documents (checks RRO / program RRO) of mandatory requisites according with Regulation № 13, in particular:
for retail trade entities that carry out sale of tobacco products produced before 01.04.2022, including by foreign producers and not sold to end users by 01.04.2022 to reflect a separate line lettering with amount of excise tax rate, total amount excise tax on all products specified in a check at the beginning of a line must contain printed title of such tax (line 22).
