Excise tax payers, attention!

Regarding implementation of the Law of Ukraine as of 17.12.2020 № 1117-IX “On amendments to the Tax Code of Ukraine and other Laws of Ukraine to ensure collection of data and information required for declaring certain taxation objects” in terms of excise tax

On the 31^st of December 2020, the Law of Ukraine as of 17.12.2020 № 1117-IX “On amendments to the Tax Code of Ukraine and other Laws of Ukraine to ensure collection of data and information required for declaring certain taxation objects” was published (hereinafter – the Law № 1117).

The Law № 1117 specifically amended the Sub-section 5 of Section XX “Transitional Provisions” of the Tax Code of Ukraine (hereinafter – the Code) which regulate issues related to the assignment from 23.05.2020 according to the Law of Ukraine as of 16.01.2020 № 466-IX “On amendments to the Tax Code of Ukraine to improve tax administration, eliminate technical and logical inconsistencies in tax legislation” (hereinafter – the Law № 466) of liquid fuel, based on gas oils (diesel fuel), as well as solvents or thinners based on methanol to excisable fuel, in part:

-          accounting procedure in system of electronic administration on the sale of fuel and ethyl alcohol of such fuel residues, which were present on 23.05.2020.

In accordance with amendments introduced by the Law № 1117, payers defined in Sub-paragraphs 32 – 33 Sub-section 5 of Section XX “Transitional Provisions” of the Code have a right to:

to submit application for replenishment of fuel balance as of 23.05.2020 by the 31^st of December 2020. Sub-paragraphs 32 – 33 Sub-section 5 of Section XX of the Code define conditions for submitting such applications for replenishment of fuel balance (namely, without paying excise tax given further use of fuel only for own consumption or industrial processing, with excise tax – for fuel that used for other purposes);

to draw up and register excise invoices for total volumes of fuel used in the period from 23.05.2020 to 31.12.2020 inclusively for own consumption and / or industrial processing or sold during this period, for each excise warehouse / mobile excise warehouse and each commodity code subcategories according to the Ukrainian classification of the FEA goods and register such excise invoices in the Unified Register of Excise Invoices by the 15^th of January 2021.

In connection with entry into force of the Law № 1117 on the 1^st of January 202 (ie after the deadline for submission of applications for replenishment of fuel balance as of 23.05.2020) we announce a prolongation of the deadline for submission of applications for replenishment of fuel balance as of 23.05.2020 according to Sub-paragraphs 32 – 33 Sub-section 5 of Section XX “Transitional Provisions” of the Code until the 15^th of January 2021 (inclusively).

Herewith, application for replenishment (adjustment) of fuel balance should be submitted according to Sub-paragraphs 32 – 33 Sub-section 5 of Section XX of the Code and must contain the following:

only one fuel code according to Ukrainian classification of the FEA goods (ie one line of the table is filled);

tax condition or “5” (if application is submitted without the excise tax payment), or “0” (if application is submitted with the excise tax payment).

Further, in case of own consumption or industrial processing, or in case of fuel losses, volumes of which are indicated in the application for replenishment of fuel balance, made according to Sub-paragraphs 32 – 33 Subsection 5 of Section XX “Transitional Provisions” of the Code without excise tax payment (tax condition “5”), the excise invoice under the form “P” is compiled in one copy taking into account the following features:

operation code “1” (own consumption or industrial processing) or “2” (lost, spoiled, destroyed fuel) is indicated in the upper left corner of the excise invoice;

tax condition “5” is indicated in the upper left corner of the excise invoice;

the taxpayer’s requisites as the person realizing fuel are indicated in the left part of the excise invoice;

the “Non-payer” is indicated in the right part of the excise invoice in line “Person – recipient of fuel”. Code from the only state register code of enterprises and organizations of Ukraine of “Person – recipient of fuel” is indicated in line “legal entity”. Registration account number is indicated in agreement on joint activity. For individual there must be indicated surname, name, patronymic and registration number of the taxpayer’s account card or series (if any) and the passport number “enter the conditional code” 1000000000”.

If the taxpayer needs to move (transport) the fuel, amount of which is specified in the application for refueling drawn up according to Sub-paragraphs 32 – 33 Sub-section 5 of Section XX “Transitional Provisions” of the Code without the excise tax payment (tax condition “5”), from the excise warehouse specified in such application  to another excise warehouse or mobile excise warehouse, for such operation the excise invoice under form “P” must be compiled in two copies, taking into account the following features:

operation code “0” and tax condition “5” are indicated in the upper left corner of the excise invoice;

the taxpayer’s requisites as the person realizing fuel are indicated in the left and right part of the excise invoice.

Sub-paragraph 34 Sub-section 5 of Section XX “Transitional Provisions” of the Code:

determines payers and types of fuel to which norms of the specified Sub-paragraph are applicable;

stipulates that payers who submitted applications for replenishment of fuel balance with the excise tax payment (before the adoption of amendments to the Code regarding submission of such applications without the excise tax payment), given the opportunity to make appropriate adjustments in system of electronic administration on the sale of fuel and ethyl alcohol and use the right to apply for replenishment of fuel balance without excise tax payment;

defines mechanism of such adjustment. 

Please note that in case of adjustments made by payers in the system of electronic administration on the sale of fuel and ethyl alcohol according to Sub-paragraph 34 Sub-section 5 of Section XX of the Code, applications for replenishment of fuel balance as of 23.05.2020 without excise tax payment may be submitted by such payers only until the 15^th of January, 2021 (inclusively).