Violations in the sale of excisable products are detected during every second audit

Press service of the State Tax Service of Ukraine, published 15 December 2021 at 08:55 Chapter: News

More than 11 thousand cases (or during every second audit) of the sale of excisable products (alcoholic beverages, tobacco products and fuel) without reflection of the Ukrainian classification of the FEA product code in a check were established as a result of actual audits during the current year.

According to current legislation, the product subcategory code according to Ukrainian classification of the FEA products is a mandatory requisite and the only unified identifier of products reflected in settlement documents created by registrars of settlement operations during settlement transactions for the sale of products (including alcoholic beverages, tobacco products and fuel).

Business entities’ failure to reflect the Ukrainian classification of the FEA product code in checks from registrars of settlement operations not only leads to the application of financial sanction to such entity in the amount of three hundred non-taxable minimum incomes (or 300 x 17 = 5100.0 UAH) provided for in Paragraph 7 Article 17 of the Law № 265, but also significantly affects crediting of excise tax to the general fund of respective budgets.

At the same time, absence of the Ukrainian classification of the FEA product code in checks from registrars of settlement operations for the retail sale of fuel significantly affects crediting of a part of the excise tax on fuel produced in Ukraine and imported to the customs territory of Ukraine to the general fund of relevant local government budgets (territorial communities). These budgets annually cover the insecurity of education subvention for salaries of secondary school teachers, maintenance of health care facilities (including in remote rural areas) and financing of other powers delegated to local governments.

Given the above specified, the State Tax Service of Ukraine reiterates the need for business entities to comply with requirements of the Law № 265, particularly in terms of conducting settlement transactions through registrars of settlement operations and / or through software registrars of settlement operations for excisable products using programming mode with code commodity subcategory according to Ukrainian classification of the FEA products, name (title) of products, prices and accounting of their quantity.

Reminder! State Tax Service of Ukraine constantly analyzes information available in its information databases regarding the economic activities of business entities whose activities are related to the retail sale of excisable products.

Currently, the only source of information in Ukraine regarding the settlement operations conducted by all business entities (in terms of activities, taxes and products) is accounting data system of registrars of settlement operations. It has a wide practical application in the daily work of the State Tax Service, activities of government agencies, local governments, public organizations and business entities.

During analysis, special attention is paid to business entities that:

have revenues that do not exceed the minimum cost of maintaining facilities;

carry out sale of excisable products (alcoholic beverages) at prices below the established minimum retail prices;

have discrepancies between data from registrars of settlement operations / its software version, other reporting data, etc.

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