To the attention of 5% excise tax payers on retail sales!

Press service of the State Tax Service of Ukraine, published 29 April 2022 at 16:37 Chapter: News

According to the Law as of Ukraine as of 21.04.2022 № 2218-IX "On amendments to the Law of Ukraine "On the state budget of Ukraine for 2022", signed by the President of Ukraine that will enter into force on the day following its publication and according to Paragraph 3 Section II of the Final Provisions changed the date of entry into force of amendments to the Budget Code of Ukraine to implement procedure for crediting local budgets at 5% excise tax on retail sales of tobacco products, tobacco and industrial tobacco substitutes, liquids used in e-cigarettes paid for by their importers and manufacturers is postponed to 01.05.2022, instead of 01.01.2023.

With amendments to the Budget Code of Ukraine as of 01.05.2022, norms of the Law of Ukraine as of 30.11.2021 № 1914-IX "On amendments to the Tax Code of Ukraine and other legislative acts of Ukraine to ensure balanced budget revenues" came into force regarding the transfer to producers and importers of an obligation to pay 5% excise tax on the sale by retail business entities of tobacco products, tobacco and industrial tobacco substitutes, liquids used in electronic cigarettes, which is currently paid by retail business entities.

At the same time, until an end of 2022, the retailers remain, according to the procedure and conditions in force until 01.04.2022, the 5% excise tax payers on the retail sales of tobacco products, tobacco and industrial tobacco substitutes produced before 01.04.2022 year, including foreign producers and not sold to final consumers until 01.04.2022 (Paragraph 40 of Sub-section 5 Section XX of the Code).

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At present, the Verkhovna Rada of Ukraine is considering a draft Law in edition № 7311 as of 24.04.2022 "On amendments to the Tax Code of Ukraine and other laws of Ukraine on certain taxes and levies during the martial law, state of emergency", which stipulates that tobacco products, tobacco and industrial tobacco substitutes produced before 01.05.2022 instead of the current norm – until 01.04.2022, is paid by retail entities in terms of the excise tax on the retail sales.