Form of the excise tax declaration and procedure for filling in and submitting the excise tax declaration have been changed

In order to properly declare tax liabilities from the excise tax and take into account in tax reporting the Law of Ukraine as of 18.12.2019 № 391-IX “On amendments to the Tax Code of Ukraine and some other legislative acts of Ukraine to improve administration of the excise tax” and 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”, the Ministry of Finance of Ukraine adopted Order as of 08.12.2020 № 747 “On approval of changes to the form of excise tax declaration and procedure for filling in and submitting the excise tax declaration” which was registered at the Ministry of Justice of Ukraine on 03.02.2021 № 145/35767 (hereinafter – Order № 747 ). Order comes into force from the date of its official publication.

Order № 747 amends the form of excise tax declaration and procedure for filling in and submitting the excise tax declaration, approved by Order of the Ministry of Finance of Ukraine as of 23.01.2015 № 14 (with amendments by Order of the Ministry of Finance of Ukraine as of 26.09.2016 № 841).

Amendments made to the form of excise tax declaration and annexes to it are due to the following changes to the Tax Code of Ukraine (hereinafter – the Code), namely:

the list of excisable goods is amended with liquids used in electronic cigarettes (Paragraph 215.1 Article 215 of the Code) and procedure for taxation of cigars, tobacco-containing products for electric heating was changed (Sub-paragraph 215.3.2 Paragraph 215 Article 215 of the Code and Paragraph 17 Sub-section 5 Section XX);

it is determined that business entities that sell aviation gasoline or jet fuel to aircraft manufacturers, which are subject to the rules of Article 2 of the Law of Ukraine “On development of the aircraft industry” and / or customers who have procured to meet the needs of state or local community according to the Law of Ukraine “On public procurement” have the right to sell aviation gasoline and / or jet fuel to other persons in case of payment of the excise tax accrued on volumes of such fuel, considering the rate which is defined according to Sub-paragraph 229.8.13 Paragraph 215.3 Article 215 of the Code;

list of payers is amended with a new payer of excise tax on fuel, namely a person who uses goods (products) with the codes of which according to Ukrainian classification of the FEA goods are not specified in Sub-paragraph 215.3.4 Paragraph 215.3 Article 215 Section VI of the Code, as fuel for refueling vehicles, equipment or devices with internal combustion engines with compression ignition, with internal combustion engines with spark ignition, with internal combustion engines with crank mechanism (Sub-paragraph 212.1.16 Paragraph 212.1 Article 212 of the Code);

new object of taxation is introduced, namely operations for the use of goods (products) with the codes of which according to Ukrainian classification of the FEA goods are not specified in Sub-paragraph 215.3.4 Paragraph 215.3 Article 215 of this Code, as fuel for refueling vehicles, equipment or devices with internal combustion engines with compression ignition, with internal combustion engines with spark ignition, with internal combustion engines with crank mechanism (Sub-paragraph 213.1.13 Paragraph 213.1 Article 213 of the Code);

taxpayer and object of excise taxation of electricity operations are clarified and brought into the line with current legislation on the electricity market (Sub-paragraph 212.1.13 Paragraph 212.1 Article 212 and Sub-paragraph 213.1.2 Paragraph 213.1 Article 213 of the Code);

new exemptions from excise taxation of vehicles are established 0- this applies to operations on the free transfer of confiscated vehicles, recognized as ownerless, etc. in possession and use, to entities participating in the Joint Forces (JF) operation, the Prosecutor’s office in Donetsk and Luhansk regions (Paragraph 31 Sub-section 5, Sub-paragraph 38.12 Paragraph 38 Sub-section 10 Section XX of the Code and Sub-paragraph 213.3.4 Paragraph 213.3 Article 213 of the Code).

In this regard, the State Tax Service of Ukraine informs.

According to the second paragraph of Sub-paragraph Paragraph 46 of the Code to determine the new forms of declarations (calculations) that come into force for reporting for the tax period following tax period when they were published, there are valid forms of declarations (calculations) valid until such definition.

According to Paragraph 46.1 Article 46 of the Code, the tax declaration and calculation is a document submitted by the taxpayer to controlling body within the time limits established by law, on the basis of which there is accrual and / or payment of tax liability. Annexes to the tax declaration are its integral part.

Article 223 of the Code stipulates that the basic tax period for payment of excise tax corresponds to a calendar month.

Given provisions of Part 2 of Paragraph 46.6 Article 46 of the Code, persons specified in Article 212 of the Code as payers of excise tax, for the first time should submit the excise tax declaration in an amended form for March not later than April 20.

Reminder! According to Paragraph 49.2¹ Article 49 of the Code, taxpayers specified in Sub-paragraph 212.1.15 Paragraph 212.1 Article 212 of the Code, as well as the taxpayers who have valid (including suspended) licenses for the right to carry out activities with excisable products subject to licensing according to the law, are required to submit tax declarations for each reporting period established by the Code, regardless of whether such taxpayers conducted business activities in the reporting period.

Until the entry into force of the new form of excise tax declaration with amendments (Order № 747), we offer excise tax payers to declare tax liabilities in the following way.

Given amendments to Sub-paragraph 215.3.2, 215.3.2¹, 215.3.3 Paragraph 215.3 Article 215 of the Code and Paragraph 17 Sub-section 5 Section XX “Transitional Provisions”, from 01.01.2021 cigars, including cigarillos with cut ends, containing tobacco, allocated in a separate code 2402 10 00 90 according to U Ukrainian classification of the FEA goods, was changed the unit of measurement of cigars from “UAH per 1 kg (net)” for “UAH per 1000 units” and an ad valorem rate (12%) was introduced, as well as a minimum excise tax liability for the payment of excise tax on tobacco products with a double limit.

According to Paragraph 46.4 Article 46 of the Code, the taxpayer may, if necessary, submit additions to such declaration, which are made in any form that will be considered as an integral part of tax declaration. Such addition shall be submitted with an explanation of reasons for its submission. Taxpayer who submits reports in the electronic form submits such addition in the electronic form.

Specified addition to the excise tax declaration is submitted in Annex 10 to declaration (Order of the Ministry of Finance of Ukraine as of 23.01.2015 № 14, with amendments).

We suggest excise tax payers for the reporting periods of January and February to submit the amount of excise tax on cigars (code 2402 10 00 90 according to Ukrainian classification of the FEA goods) in Annex 10 to the excise tax declaration in the following form.

Amount of tax liability for cigars determined in this way is reflected in Section B of the excise tax declaration for the relevant operations according to procedure approved by Order № 14, in the current version.

As of taxation of operations with liquids used in electronic cigarettes and tobacco-containing products for electric heating when they are imported to the customs territory of Ukraine or sold by the manufacturer of goods produced in Ukraine from January 1, 2021:

liquids used in electronic cigarettes (code 3824 90 97 20 according to Ukrainian classification of the FEA goods) are taxed at the rate of 3000 UAH per 1 liter Sub-(paragraph 215.3.31 Paragraph 215.3 Article 215 of the Code);

measurement unit of tobacco-containing products for electric heating was changed from “UAH per 1 kilogram (net)” to “UAH per 1000 pieces”. As follows, tobacco-containing products for electric heating (code 2403 99 90 10 according to Ukrainian classification of the FEA goods) in the period from 01.01.2021 to 31.12.2024 will be taxed at the rates established by Paragraph 17 Sub-section 5 Section XX “Transitional Provisions” and from 01.01.2025 taxation will be carried out at the rates specified in Sub-paragraph 215.3.2 Paragraph 215.3 Article 215 of the Code.

Calculation of excise tax on these goods is carried out by taxpayers in Annex 1 to the excise tax declaration with the transfer of tax amount to Section B of declaration for the relevant operations according to procedure approved by Order № 14, in the current version.

Declaration of other operations in accordance with amendments to the Code

Business entities to which Sub-paragraph 229.8.13 Paragraph 229.8 Article 229 of the Code on the sale of aviation gasoline or jet fuel at a reduced rate of excise tax, before the entry into force of new Annex 14 to declaration (Order № 747) in case of changes in tax conditions have the right to submit to controlling body Annex 10 to the excise tax declaration with calculation of excise tax by the following form.

Taxpayers for fuel, defined in Sub-paragraph 212.1.16 Paragraph 212.1 Article 212 of the Code (which is used as fuel goods, the codes of which according to Ukrainian classification of the FEA goods are not specified in Sub-paragraph 215.3.4 Paragraph 215.3 Article 215 of the Code), in case of occurrence of taxation object submit to the controlling body a declaration of excise tax section B and Annex 1 thereto. According to Paragraph 49.2 Article 49 of the Code, these taxpayers submit declaration only in case of occurrence of the taxation object or in the presence of indicators that are subject to declaration, according to requirements of the Code.

Reminder! According to Paragraph 120.1 Article 120 of the Code, a failure to submit or late submission of tax declaration (calculations) by the taxpayer or other persons obliged to accrue and pay taxes and fees, as well as other reporting, the obligation to submit to the controlling body provided by the Code, entail a fine in the amount provided for in this Article for each such non-submission or late submission.