To the attention of taxpayers - excise tax bill issuers!

Press service of the State Tax Service of Ukraine, published 26 April 2022 at 14:19 Chapter: News

In connection with introduction in accordance with Decree of the President of Ukraine as of 24.02.2022 №64 / 2022 the martial law throughout Ukraine and in order to enable taxpayers to register and repay excise tax bills during such legal regime, the State Tax Service Ukraine informs.

Bill issuer for purposes of Section VI of the Tax Code of Ukraine (hereinafter – Code) is a business entity – manufacturer who receives (Sub-paragraph 14.1.22 Paragraph 14.1 Article 14 of the Code):

ethyl alcohol from excise warehouse for production of alcoholic beverages defined in Article 225, as well as for production of certain types of products specified in Paragraph 229.1 Article 229 Section VI of the Code;

petroleum products from oil refinery or imports to the customs territory of Ukraine, substances used as components of motor fuels for their use depending on the direction specified in Paragraphs 229.2-229.8 Article 229 Section VI of the Code.

Tax post is a post formed on the territory of enterprises where products are produced using excisable products, for which a zero tax rate is set and which are defined in Article 229 of the Code. There is permanent direct control at the tax post exercised by permanent representatives of the controlling body at its location (Sub-paragraph 14.1.177 Paragraph 14.1 Article 14 of the Code).

Tax bill, endorsed by the bank (tax receipt) (hereinafter – tax bill for purposes of Section VI of the Code), is a promissory note endorsed by the bank issued by the bill issuer: before receiving ethyl alcohol from excise warehouse, petroleum products from oil refinery, substances used as components of motor fuels or importing petroleum products to the customs territory of Ukraine and is securement of compliance with an obligation to pay excise tax on time, defined by Articles 225 and 229 of this Code (Sub-paragraph 14.1.176 Paragraph 14.1 Article 14 of the Code).

Tax bill is considered repaid in case of documentary confirmation of the fact of targeted use of excisable 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 relevant Paragraphs 229.1, 229.2, 229.3, 229.4, 229.5, 229.6, 229.7 of Article 229 of the Code by submitting a certificate of its intended use, which is agreed by representative of the tax post established at the enterprise and confirms its use for:

ethyl alcohol – for production of products specified in Sub-paragraph 229.1.1 of Article 229 of the Code (wine materials, medicines, products of organic synthesis, chemical and technical products, etc.);

light and heavy distillates, as well as liquefied gas and butane, isobutane – as raw materials in the ethylene production;

petroleum products and substances used as components of motor fuels – as raw materials for production in the chemical industry.

Repayment of bills for aviation gasoline or jet fuel is carried out by registering excise invoices in the Unified Register of Excise Invoices for operations in areas specified by the Code. Excise invoices for such operations are drawn up on the basis of primary documents (Sub-paragraph 229.8 Article 229 of the Code).

Paragraph 11 of Procedure for issuance, turnover and redemption of tax bills, endorsed by the bank (tax receipts), issued before receiving from the excise warehouse of undenatured ethyl alcohol, ethyl denatured alcohol (technical) and bioethanol used by business entities for production of certain products, approved by Resolution of the Cabinet of Ministers of Ukraine as of 27.12.2010 №1257, stipulates that for tax bill repayment, the issuer submits to bill holder a certificate of intended use of ethyl alcohol in terms of 100% ethyl alcohol in the form of an electronic document, which according to the Law is approved by the Ministry of Finance of Ukraine. Such Certificate is drawn up on the basis of primary documents and agreed with representative of the tax post established at the enterprise where ethyl alcohol is used at zero rate (in case of establishing such tax post).

Tax posts at enterprises that use ethyl alcohol for production of products specified in Sub-clauses "f" – "i" of Sub-paragraph 229.1.1 Paragraph 229.1 of this Article are not established (Sub-paragraph 229.1.14 Paragraph 229.1 Article 229 of the Tax Code).

In order to preserve life and health of employees of territorial divisions of the State Tax Service of Ukraine there is a downtime in work in some territorial bodies of the State Tax Service.

Given above specified and the fact that registration, repayment of tax bills and confirmation of intended use of excisable goods (products), set at zero excise tax rate or are exempted from taxation or have reduced rate subject to targeted use during legal regime of the martial law in Ukraine, are carried out taking into account the following features:

1) To register tax bill, the issuer must submit it to the controlling body (bill holder) at main registration place.

In case of impossibility of registration of tax bill by such controlling body due to introduction in its work of a downtime or temporary impossibility of performance of such functional powers in connection with military aggression of the Russian Federation, the tax bill for registration can be submitted to Main Directorate of the State Tax Service in Lviv region, which is temporarily determined to be responsible for performing registration function for tax bills of taxpayers registered in certain bodies of the State Tax Service, that are temporarily unable to perform these functions (contact phone number of employees of the Main Directorate for coordination of actions (032) 297-33-43, (032 ) 297-30-12).

2) Repayment of tax bills, term of payment of which fell on a period from 24.02.2022 to termination or abolition of the martial law is carried out according to relevant procedure provided for such excisable products.

Provisions of Sub-paragraph 69.9 Paragraph 69 Sub-section 10 Section XX "Transitional Provisions" of the Code taking into account amendments made by the Law as of 03.03.2022 №2118 – IX "On amendments to the Tax Code of Ukraine and other legislative acts of Ukraine on taxation peculiarities and reporting during the martial law", which entered into force on 07.03.2022, particularly provides that for taxpayers and regulatory authorities the course of terms determined by tax legislation and other legislation is stopped, control over compliance with which is entrusted to the controlling bodies.

Taking into account above specified, the repayment of tax bills, payment term of which fell on the martial law in Ukraine, is carried out after termination or abolition of the martial law.

At the same time, at issuer’s request, the tax bills may be repaid according to procedure provided by the Code for such excisable products and taking into account the following:

1) regarding ethyl alcohol – for production of wine materials, medicines, organic synthesis products, chemical and technical products, etc. (Sub-paragraph 229.1 Article 229 of the Code);

for petroleum products (including light and heavy distillates, as well as liquefied gas and butane, isobutane), substances used as components of motor fuels – for production in the chemical industry (Paragraphs 229.2-229.7 Article 229 of the Code)

Repayment of tax bill is carried out on the basis of Certificate of intended use, which is agreed by representative of the tax post established at the enterprise to confirm such intended use.

In case of impossibility to approve Certificate by representative of the tax post established at the enterprise, due to downtime of relevant controlling body, in order to confirm data provided in such Certificate, the business entity must provide duly certified copies of primary documents confirming intended use of relevant excisable products.

2) regarding ethyl alcohol for production of alcoholic beverages (Article 225 of the Code)

Repayment of tax bill is carried out on the basis of the excise tax amount paid to repay the tax bill, available customs declaration for export, as well as drawn up, according to Procedure for calculating the excise tax amount of reduction approved by Resolution of the Cabinet of Ministers of Ukraine as of 27.12.2010 № 1260, documents – Act on the actual amount of ethyl alcohol received and the excise tax calculation (Annex 1) and Calculation of the excise tax amount of reduction on the amount of tax determined basing on the actual amount of undenatured ethyl alcohol lost during transportation and storage, in the process of production of finished products, as well as the actual returned irreparable defect (Annex 2).

3) regarding aviation gasoline and jet fuel used in operations specified in Paragraph 229.8 Article 229 of the Code

Repayment of tax bill can be carried out:

refueling aircrafts – on the basis of excise invoices registered in the Unified Register of excise invoices in manner prescribed by the Code;

during the sale in cases provided for in Sub-paragraphs 2-4 of Sub-paragraph 229.8 Article 229 of the Code – on the basis of copies of primary documents and contracts for the fuel sale, confirming the fuel sale throughout a chain of fuel sale from manufacturer / importer to the entities, defined in Sub-clauses 2-4 of Sub-paragraph 229.8 Article 229 of the Code, submitted to the controlling body and if possible excise invoices drawn up for such operations registered in the Unified Register of excise invoices.

Repaying tax bills for amount of loss of fuel or ethyl alcohol due to military aggression of the Russian Federation it is obligatory to take into account provisions of Article 231 Section VI of the Code, Sub-paragraphs 69.1 and 69.13 of Paragraph 69 Sub-section 10 Section XX "Transitional provisions" of the Code regarding a need in such cases to restore  data of fuel and ethyl alcohol accounting based on the inventory results, preparation and registration of excise invoices for the volume of lost fuel or ethyl alcohol, etc. 

At the same time, in case of impossibility of fulfillment of above requirements of the Code by the bill issuer regarding payment in certain cases of excise tax and / or submission of relevant documents, registration of excise invoices to confirm intended use of excisable products, taking into account provisions of Sub-paragraph 69.9 Paragraph 69 Sub-section 10 Section XX “Transitional Provisions” of the Code on suspension of time limits, the tax bill repayment term of which fell on a period of the martial law on the territory of Ukraine, is carried out only after termination or abolition of the martial law.