Regarding reflection in the RRO/PRRO checks of the product subcategory code according to Ukrainian classification of the foreign economic activity products

Press service of the State Tax Service of Ukraine, published 15 May 2023 at 14:15 Chapter: News

Paragraph 11 Article 3 of the Law of Ukraine No. 265/95-VR as of 07.06.1995 "On the use of registrars of settlement operations in trade, public catering and services" stipulates that economic entities that carry out settlement operations in cash and/or non-cash form (using electronic payment means, payment checks, tokens, etc.) upon the sale of products (provision of services) in trade, public catering and services, as well as cash acceptance operations for payment operations, in particular, are obliged to:

conduct settlement operations through registrars of settlement operations and/or its software version for excisable products using the programming mode with indication of the product subcategory code according to Ukrainian classification of the foreign economic activity products, product title, prices and their quantity accounting, as well as with indication of digital value of the barcode of the excise tax stamp (series and number) in case of retail trade of alcoholic beverages.

Sub-paragraph 14.1.145 Paragraph 14.1 Article 14 of the Tax Code of Ukraine (hereinafter – Code) stipulates that excisable products (goods) are goods under codes according to Ukrainian classification of the foreign economic activity products, on which excise tax rates are set by this Code.

Paragraph 215.1 Article 215 of the Code stipulates that excise products include:

ethyl alcohol and other alcohol distillates, alcoholic beverages, beer (except for kvass of "live" fermentation);

tobacco products, tobacco and industrial tobacco substitutes;

liquids used in electronic cigarettes;

fuel, including products (goods) used as fuel for refueling vehicles, equipment or devices with internal combustion engines with compression ignition, internal combustion engines with spark ignition, internal combustion engines with a crank mechanism and codes which, according to Ukrainian classification of the foreign economic activity products, are not specified in Sub-paragraph 215.3.4 Paragraph 215.3 of this Article (except for natural gas in a gaseous state under code 2711 21 00 00 according to Ukrainian classification of the foreign economic activity products);

passenger cars, their cabs, trailers and semi-trailers, motorcycles, vehicles intended for transportation of 10 people and more, vehicles for the transportation of products;

electrical energy.

Based on the data analysis results of the Data accounting system of registrars of settlement operations, it was established that in some cases, business entities carry out payment operations through registrars of settlement operations and/or its software version for excisable products without using the programming mode indicating the product subcategory code according to Ukrainian classification of the foreign economic activity products.

State Tax Service of Ukraine once again draws attention to the need to reflect in the RRO/PRRO checks all mandatory requisites, including reflection of the commodity subcategory code according to Ukrainian classification of the foreign economic activity products, which is a key identifier for ensuring fair distribution of part of the excise tax on the retail sale of excisable products to the general fund of the respective local self-government budgets.