Taxpayers, attention!

Regarding excise taxation during legal regime of the martial law on the territory of Ukraine, taking into account requirements of the Law of Ukraine № 3219-IX as of 30.06.2023 "On amendments to the Tax Code of Ukraine and other laws of Ukraine regarding taxation peculiarities during the martial law"

1. Regarding repayment of the excise tax bills, taking into account renewal of the time limits specified by the Tax Code of Ukraine from August 1, 2023 (hereinafter – Code)

Law № 3219 terminates validity of norms regarding suspension of periods specified by the Code and other legislation, control of compliance with which is entrusted to the controlling bodies, which were provided for by Paragraph 102.9 of Article 102 and Sub-paragraph 69.9 of Paragraph 69 Sub-section 10 Section XX "Transitional Provisions" of the Code until August 1, 2023.

Until August 1, 2023 for taxpayers and controlling bodies passage of time is stopped, determined by tax legislation and other legislation, control of compliance of which is entrusted to controlling bodies, except for cases determined by Sub-paragraph 69.9 of Paragraph 69 Sub-section 10 Section XX of the Code.

At the same time, during repayment of the excise tax bills, provisions of Sub-paragraph 69.1 of Paragraph 69 Sub-section 10 Section XX "Transitional provisions" of the Code should be taken into account, which, in particular, provides for:

in case that the taxpayer does not have opportunity to fulfill tax obligation in a timely manner regarding compliance with the payment terms of taxes and levies, registration of excise invoices, taxpayers are exempted from the responsibility provided for by this Code with obligatory fulfillment of such obligations within six months after termination or cancellation of the martial law in Ukraine;

taxpayers, including in relation to their branch, representative office, separate or other structural unit, whose opportunity to fulfill tax obligations has been renewed, deadline for fulfillment of which falls on a period starting from February 24, 2022 until day the taxpayer's opportunity is renewed, shall be released from liability for the untimely performance of such obligations provided for by the Code, provided that they fulfill such tax obligations regarding payment of taxes and levies within 60 calendar days from the first day of a month following the month of renewal of such opportunities for taxpayers.

Tax bill endorsed by a bank (tax receipt) (hereinafter – tax bill for purposes of Section VI of this Code) is a simple bill endorsed by a bank, issued by the drawer: for receipt from the excise warehouse of ethyl alcohol, for receipt from an oil refinery of petroleum products, substances, that are used as components of motor fuels, or before the import of oil products to the customs territory of Ukraine and are a guarantee of fulfillment of the obligation to pay the excise tax amount within a period specified by Articles 225, 229 of this Code (Sub-paragraph 14.1.176  Paragraph 14.1 Article 14 of the Code).

To repay tax bills issued by the drawer before receiving ethyl alcohol from the excise warehouse, before receiving petroleum products from an oil refinery, substances used as components of motor fuels, or before importing petroleum products to the customs territory of Ukraine, the drawer is obliged within the time limit specified in the Articles 225, 229 of the Code to:

whether pay the excise tax amount;

or documentally confirm the fact of intended use of excise products according to Sub-paragraphs 229.1.8, 229.2.11, 229.3.13, 229.4.11, 229.5.13, 229.6.10, 229.7.12 of the corresponding Paragraphs 229.1, 229.2, 229.3, 229.4, 229.5, 229.6, 229.7 of Article 229 of the Code by submitting certificate of its intended use, which is agreed by the representative of tax office established at the enterprise and confirms its use, and repayment of bills for aviation gasoline or fuel for jet engines is carried out on the basis of registered excise invoices in the Unified Register of Excise Invoices and, in cases provided for by the law, copies of primary documents, contracts.

Taking into account above specified, for taxpayers who have opportunity to timely fulfill their tax obligations regarding payment of the excise tax amount, taking into account renewal from August 1, 2023 of the course of terms determined by the tax legislation, course of the repayment terms of excise tax bills, payment term is renewed which came into effect during the martial law on the territory of Ukraine, by the excise tax payment or documentary confirmation, including taking into account excise invoices registered in the Unified Register of Excise Invoices in the prescribed cases (for aviation gasoline or fuel for jet engines).

Taxpayers who have regained ability to fulfill their tax obligations, deadline for which falls on a period starting from February 24, 2022 until the date of renewal of the taxpayer’s ability – repay tax bills that are security for obligation to pay the excise tax amount within 60 calendar days from the first day of a month following the month of renewal of such taxpayers’ opportunities.

2. Regarding cancellation of temporary procedure for shipment of ethyl alcohol for the disinfectants production (Paragraph 29³ Sub-section 5 Section XX "Transitional Provisions" is excluded)

Temporary procedure for shipment of ethyl alcohol for the disinfectants production will be canceled from August 1, 2023 in connection with end of the quarantine on July 1, 2023, which was introduced to prevent spread of the acute respiratory disease COVID-19 caused by the coronavirus SARS- CoV-2 on the territory of Ukraine (COVID-19). Taking this into account, general procedure for taxing ethyl alcohol, which is used in the disinfectants production, with the excise tax at the rate of 0 UAH has been accordingly renewed, provided that ethyl alcohol is used for the intended purpose and tax bills are repaid.

3. Regarding provision of safe conditions for the actual audit

From August 1, 2023 until termination or abolition of the martial law on the territory of Ukraine, requirements of Sub-paragraph 69.2¹ of Paragraph 69 Sub-section 10 Section XX "Transitional provisions" of the Code must be taken into account regarding the availability of safe conditions for conducting actual audits, in particular safe:

access, admission to territories, premises and other property, which is used for carrying out economic activities and/or are taxation objects, or are used to receive income (profit), or are related to other taxation objects of such taxpayers;

access, admission to documents, certificates on financial and economic activity, received income, expenses of taxpayers and other information related to the calculation and payment of taxes, levies, payments, on compliance with requirements of the law, implementation of control of which is entrusted to the controlling bodies, as well as to financial and statistical reporting in manner and on grounds determined by the law;

conduction of inventory of fixed assets, tangible assets, funds, withdrawal of residual assets, cash.

Actual audits that have been initiated but cannot be completed due to occurrence of the specified circumstances, or due to the submission of notifications by the taxpayer and taking into account requirements provided for by Sub-paragraph 69.28 of Paragraph 69 Sub-section 10 Section XX "Transitional provisions" of the Code , and/or at the taxpayer's reasoned application, it is stopped until the end of such circumstances and/or the removal of obstacles to audit by decision of the head (his deputy or authorized person) of the controlling body.

4. Regarding the taxpayer’s self-correction of errors in tax reporting that led to an understatement of tax liability

From August 1, 2023 and until termination or abolition of the martial law on the territory of Ukraine, if the taxpayer independently corrects errors that led to an understatement of tax liability according to procedure, requirements and restrictions specified in Article 50 of the Code, such taxpayer is exempted from accrual and payment of fines and penalties provided for in Paragraph 50.1 Article 50 of the Code. Accordingly, columns 5, 6 and 7 of Annex 8 to the Excise tax declaration "Calculation of the excise tax amount, which increases or decreases tax liability as a result of correction of self-identified error committed in previous reporting periods" regarding accrual of fines of 3%, 5%, are not subject to filling out and penalty, respectively. This applies to tax declarations that are submitted from August 1, 2023 and until termination or abolition of the martial law.