Excise tax payers, attention!

Cabinet of Ministers of Ukraine adopted Resolution № 717 as of 18.06.2024 "On amendments to Resolution № 1257 of the Cabinet of Ministers of Ukraine as of 27.12.2010" (hereinafter – Resolution № 717), which entered into force on 21.06.2024 (officially published in the newspaper "Uryadovyy kuyer" on 21.06.2024 under № 126).

Main adoption purpose of Resolution № 717 is to bring provisions the Resolution of the Cabinet of Ministers of Ukraine № 1257 as of 27.12.2010 "On approval of Procedure for issuance, circulation and redemption of bank-validated tax bills (tax receipts), issued for receipt from excise warehouse of undenatured ethyl alcohol, ethyl denatured (technical) alcohol and bioethanol, which are used by business entities for production of certain types of products" (hereinafter – Resolution № 1257), into line with norms of the Tax Code of Ukraine (hereinafter – Code), taking into account changes made by the Law of Ukraine № 3193-IX as of 29.06.2023 "On amendments to the Tax Code of Ukraine and some laws of Ukraine on simplifying conditions for production of distillates by small business entities" (hereinafter – Law № 3193).

Law of Ukraine № 3193 amended subparagraph "g" of Sub-paragraph 229.1.1 Paragraph 229.1 Article 229 of the Code in terms of expanding range of business entities subject to a zero rate of excise tax for 1 liter of 100 percent alcohol made from crude ethyl alcohol, used for production of bioethanol with issuance of tax bill.  

Before introduction of norms of the Law № 3193, excise tax was levied at 0 hryvnias rate for 1 liter of 100 percent alcohol from crude ethyl alcohol, used for production of bioethanol only within limits of one business entity.

Law № 3193 also amended Sub-paragraph 229.1.5 Paragraph 229.1 Article 229 of the Code, which provides that tax invoice may be issued by a bioethanol producer who uses crude ethyl alcohol for bioethanol production.

As follows, Resolution № 717 gives the name of Resolution №  1257 and provisions of Procedure approved by it according to norms of the Code regarding extension of procedures for issuance, circulation and repayment of tax bills for operations with raw ethyl alcohol, which is shipped at a zero rate of excise tax with issuance of tax bill as guarantees of its intended use for production of bioethanol and introduction of issuance of tax bill by the bioethanol producer, which uses crude ethyl alcohol for its production.

At the same time, Resolution № 717 eliminated some technical and logical inconsistencies in accounting of tax bills and their repayment.