Excise tax payers, attention!

Regarding accounting of the liquefied gas in the system of electronic administration on the sale of fuel and ethyl alcohol by a conditional code

Paragraph 1 Article 67 Section IV of the Customs Code of Ukraine stipulates that Ukrainian classification of the FEA goods is compiled according to Harmonized commodity description and coding system and is approved by the Law on the Customs Tariff of Ukraine.

Sub-paragraph 230.1.3 Paragraph 230.1 Article 230 of the tax Code of Ukraine (hereinafter – the Code) determines that for the purposes of Articles 230 – 233 of the Code the liquefied gas (propane or a mixture of propane and butane), other gases, butane, isobutane according to Ukrainian classification of the FEA goods codes 2711 12 11 00, 2711 12 19 00, 2711 12 91 00, 2711 12 93 00, 2711 12 94 00, 2711 12 97 00, 2711 13 10 00, 2711 13 30 00, 2711 13 91 00, 2711 13 97 00, 2711 14 00 00, 2711 19 00 00, 2901 10 00 10 are accounted for by a conditional code 2711 in liters, reduced to a temperature of 15°C and this rule is not applicable to the Law of Ukraine as of 04.06.2020 №674-IX “On the Customs Tariff of Ukraine”.

Volumes of fuel or ethyl alcohol imported to the customs territory of Ukraine are automatically credited into system of electronic administration on the sale of fuel and ethyl alcohol on the basis of duly registered customs declarations in terms of taxpayers and taxation conditions of fuel or ethyl alcohol under each commodity code of Ukrainian classification of the FEA goods according to Paragraph 232.1 of the Code.

According to the Procedure for filling in customs declarations in the form of a single administrative document, approved by Order of the Ministry of Finance as 30.05.2012 №651 “On approval of the Procedure for filling in customs declarations in the form of a single administrative document”, the customs declaration must indicate the product code.

As follows, system of electronic administration on the sale of fuel and ethyl alcohol automatically credits volumes of fuel by codes of the commodity subcategory of goods according to Ukrainian classification of the FEA goods, particularly the liquefied gas by codes 2711 12 11 00, 2711 12 19 00, 2711 12 91 00, 2711 12 93 00, 2711 12 94 00, 2711 12 97 00, 2711 13 10 00, 2711 13 30 00, 2711 13 91 00, 2711 13 97 00, 2711 14 00 00, 2711 19 00 00, 2901 10 00 10.

Therefore, the excise invoices drawn up for distribution of liquefied gas imported to the customs territory of Ukraine (propane or a mixture of propane and butane according to Ukrainian classification of the FEA goods codes 2711 12 11 00, 2711 12 19 00, 2711 12 91 00, 2711 12 93 00, 2711 12 94 00, 2711 12 97 00, 2711 13 10 00, 2711 13 30 00, 2711 13 91 00, 2711 13 97 00, 2711 14 00 00, 2711 19 00 00, 2901 10 00 10) between mobile excise warehouses used during such import or excise warehouses, licensed customs warehouses where customs clearance is carried out, the payer shall indicate separate codes of the commodity subcategory of such liquefied gas accordance to Ukrainian classification of the FEA goods.

To ensure compliance with the Code on the accounting of liquefied gas in the system of electronic administration on the sale of fuel and ethyl alcohol by a conditional code, rather than the product subcategory code, it is necessary to change the product code by submitting Application for replenishment (adjustment) of fuel volumes marked “Replenishment (adjustment) of fuel volumes”.

Procedure for drawing up and filling in Application for replenishment (adjustment) of fuel balance was approved by Order of the Ministry of Finance of Ukraine as of 27.11.2020 №729 “On approval of application forms for registration of excise tax payer for sale of fuel or ethyl alcohol and / or excise warehouses, excise invoice, calculation of excise invoice adjustment, application for replenishment (adjustment) of fuel balance, application for replenishment (adjustment) of ethyl alcohol balance, Procedure for filling in the excise invoice, calculation of excise invoice adjustment, Application for replenishment (adjustment) of fuel balance, Application for replenishment (adjustment) of ethyl alcohol balance” (hereinafter – Procedure № 729) and was registered at the Ministry of Justice of Ukraine on 14.12.2020 № 1241/35524.

According to Section VI of Procedure for applications for replenishment (adjustment) of fuel balance, in which the mark “X” is put in fields “Replenishment (adjustment) of fuel volumes” and “main” must be indicated the following:

positive value of fuel volume (marked with a sign “+”) is indicated in the first row of the table;

negative value of fuel volume (marked with a sign “-“) is indicated in any line other than the first (if necessary).

In the case of transfer of liquefied gas volumes by codes according to Ukrainian classification of the FEA goods 2711 12 11 00, 2711 12 19 00, 2711 12 91 00, 2711 12 93 00, 2711 12 94 00, 2711 12 97 00, 2711 13 10 00, 2711 13 30 00, 2711 13 91 00, 2711 13 97 00, 2711 14 00 00, 2711 19 00 00, 2901 10 00 10 to a conditional code 2711 00 00 00, the following should be stated:

in the first line

- 2711 00 00 00 in the column “Product code according to Ukrainian classification of the FEA goods / conditional code for liquefied gas”

- positive value (with a sign “+”) of the volume of liquefied gas in the column “Volume of sold fuel (-) (+)”;

in the second line

- product code according to Ukrainian classification of the FEA goods in the column “Product code according to Ukrainian classification of the FEA goods / conditional code for liquefied gas”;

- negative value (with a sign “-“) of the volume of liquefied gas within the available limit in the column “Volume of sold fuel (-) (+)”.

Herewith, volumes in the first and second lines must match.

A similar Application is also submitted for the liquefied gas volumes received from other business entities – excise tax payers or accounted for in the excise warehouse / payer’s excise warehouse.