Regarding taxation novations in 2024

Press service of the State Tax Service of Ukraine, published 16 January 2024 at 15:02 Chapter: News

Regarding income tax

In order to inform taxpayers about changes in legislation and in connection with adoption of the Law of Ukraine № 3474-ХХ as of 21.11.2023 "On amendments the Tax Code of Ukraine regarding special taxation peculiarities of banks and other taxpayers", the State Tax Service has prepared Newsletter № 6 /2023 "Banks: rate change, income tax", which is posted on its web portal at the link: https://tax.gov.ua/en/mass-media/news/740698.html

Regarding novations in the value added and excise taxes

1) New procedure for issuance, circulation and repayment of tax bills is being introduced (according to Clauses 5 – 12 and Paragraph 13 of Section I of the Law of Ukraine № 3173-IX as of 29.06.2023 "On amendments to the Tax Code of Ukraine and other laws of Ukraine in connection with introduction of the electronic traceability of turnover of alcoholic beverages, tobacco products and liquids used in electronic cigarettes").

From January 22, 2024 the following norms will be introduced:

Paragraph 225.5¹ Article 225 Section VI of the Tax Code of Ukraine (hereinafter – Code), which provides for issuance of tax invoices for import of alcoholic beverages to the customs territory of Ukraine in containers that are not consumer containers, for their bottling in consumer containers by the manufacturer of alcoholic beverages;

Paragraph 225.10 Article 225 Section VI of the Code, which stipulates that procedure for issuing, circulating and repaying tax bills is established by the Cabinet of Ministers of Ukraine.

2) From January 1, 2024 the excise tax rate and procedure for calculating tax liability will change.

Specific excise tax rates and the minimum excise tax liability for payment of excise tax on tobacco products are increased by 20 percent (Paragraph 17 Sub-section 5 Section XX "Transitional provisions" of the Code).

Such changes are aimed at bringing rates established by Ukrainian legislation closer to rates defined in provisions of the EU Directive 2011/64/EU as of 21.06.2011 regarding structure and rates of excise duties on tobacco products.

3) Validity period of exemption regime from the VAT of operations provided for by Paragraphs 38 and  38¹ Sub-section 2 Section XX of the Code has expired.

Starting from 01.01.2024, operations involving import to the customs territory of Ukraine / supply of products (medicines, medical devices) to the customs territory of Ukraine are subject to the VAT in general manner, which according to Paragraphs 38 and 38¹ Sub-section 2 Section XX of the Code, that were exempted from the value added tax until December 31, 2023.

Regarding tax benefits

In order to ensure accounting of tax benefits and to inform taxpayers about the list of current tax benefits, their validity period and justification for their provision, information in the Directory of tax benefits, which are losses of budget revenues and the Directory of other tax benefits, which are posted on web portal of the State Tax Service, is updated quarterly.