Regarding procedure for introducing excise tax on nicotine-containing products for oral use and their labeling with excise tax marks from September 1, 2024

Press service of the State Tax Service of Ukraine, published 29 February 2024 at 16:27 Chapter: News

The Verkhovna Rada of Ukraine adopted the Law of Ukraine № 3553-ХХ as of 16.01.2024 "On amending the Tax Code of Ukraine on bringing certain regulations into compliance with the Law of Ukraine "On the Customs tariff of Ukraine" and clarifying certain provisions" (hereinafter – Law).

The specified Law enters into force on the first day of month following the month of its publication, that is, from the review of its publication (Holos Ukrayiny, 2024, 02, 13.02.2024, № 4 (56)) – from March 1, 2024.

According to this Law, starting from September 1, 2024 operations involving import and sale in the customs territory of Ukraine of products under code according to the Ukrainian classification of the foreign economic activity products 2404 91 90 00 "Other nicotine-containing products for oral use" included in the list of excisable products, will be subject to the excise tax at the 2 363.4 UAH rate per 1 kilogram (net) of such product and from January 1, 2025 – 2 836.08 UAH per 1 kilogram (net) of such product.

All excise tax requirements, including the 5 percent excise tax on retail sale of excisable products, as well as excise tax marking of other nicotine-containing oral products included in the list of excisable products, as well as liability for their non-compliance (without excise marks, sale at prices higher than the maximum retail prices) will apply starting from September 1, 2024.

For purposes of introducing excise tax, including the 5 percent excise tax on retail sale of excisable products, including other nicotine-containing products for oral use, from September 1, 2024 the taxpayers have a right according to Articles 220 and 226 of the Code:

not later than two months, to meet the need for marks in September 2024, submit a preliminary application-calculation of the need for excise tax marks "domestic tobacco (other products)" – "imported tobacco (other products)" - "THE OTHERS" in the amount necessary for labeling of other nicotine-containing products for oral use;

not later than August 25, 2024 to submit to the central executive body that implements state tax policy, Declaration on the maximum retail prices for excisable products (goods) regarding establishment of the maximum retail prices for other nicotine-containing products for oral use from September 1, 2024.

In order to ensure the possibility of timely labeling of other nicotine-containing products for oral use for purpose of their import to the customs territory of Ukraine and sale from September 1, 2024, manufacturers and importers of such products may receive excise tax marks by September 1, 2024 only on the condition that seller of such marks submits application-calculation according to the form, approved by the central body of executive power, which ensures formation and implementation of the state financial policy, documents confirming payment of mark duty and payment to relevant excise tax budget at rates that will be valid from September 1, 2024.