Bodies of the State Tax Service in cooperation with the law enforcement agencies organized work to control legislative compliance and determine legality of the fuel origin during its movement on the territory of Ukraine in a framework of interdepartmental working groups to conduct joint activities to combat illicit fuel turnover in Ukraine pursuant to Order of the Prime Minister of Ukraine Denys Shmyhal as of 22.11.2021 № 52566/1/1-2.
Please note that Paragraph 231.6 Article 231 of the Tax Code of Ukraine (hereinafter – TCU) stipulates that registration of the first copy of excise invoice for the fuel sale or ethyl alcohol from excise warehouse in the Unified Register of Excise Invoices is carried out on the day of drawing up such excise invoice but not later than the sale of fuel or ethyl alcohol from excise warehouse.
Sub-paragraph 14.1.212 Paragraph 14.1 Article 14 of the TCU stipulates that the fuel sale is any operation of physical transfer (release, shipment) of fuel with transfer of ownership of such fuel or without such transfer for payment (compensation) or without such payment in the customs territory of Ukraine from excise warehouse / mobile excise warehouse: to excise warehouse; to mobile excise warehouse; for own consumption or industrial processing; to any other person.
Excise invoice for the release of fuel must be registered in the Unified Register of Excise Invoices not later than moment of shipment of such fuel from excise warehouse.
In case of detecting movement of fuel by vehicles not specified in excise invoices registered in Unified Register of Excise Invoices, drawn up for operations in which fuel is moved in such vehicles, the violators may be subject to sanctions under Article 164 of the Code of Administrative Offenses and Article 228.3 of the TCU.
Article 164 of the Code of Administrative Offenses stipulates that administrative offenses regarding movement of fuel by vehicles not specified in excise invoices registered in Unified Register of Excise Invoices, drawn up for operations in which fuel is moved in such vehicles, or in applications for movement of fuel by vehicles that are not mobile excise warehouses, entails imposition of a fine of one thousand to two thousand non-taxable minimum citizens’ incomes with confiscation of fuel or ethyl alcohol and vehicles.
Article 228.3 of the TCU stipulates that in case of detecting movement and / or storage of fuel with use of vehicles not specified in excise invoices registered in Unified Register of Excise Invoices, drawn up for operations in which fuel is moved and / or stored in such vehicles, or in applications for movement of fuel, which are not mobile excise warehouses, as well as sale of fuel from such vehicles, the relevant regulatory authorities temporarily (pending a court decision) seize such fuel or ethyl alcohol and vehicles from free turnover and submit relevant materials to the court for a decision on their withdrawal to the state revenue (confiscation).
RECOMMENDATION: to increase control efficiency in terms of minimizing the delay of vehicle for verifying legality of origin of transported fuel, it is recommended during the fuel shipment from excise warehouse by vehicle to the consignment note to add a copy of the first copy for operations in which fuel is moved in such vehicles.
