Obligatory requisites of excise tax marks

State Tax Service of Ukraine and its territorial bodies, to perform functions specified by the law and within the competence on a permanent basis, conduct analysis of financial and economic operations of business entities that sell alcoholic beverages using registrars of settlement transactions (abb. RRO) and software registrars of settlement operations (abb. PRRO).

In the course of tax control of these entities there are revealed frequent cases of sale of alcoholic beverages with the same requisites of excise tax marks specified in settlement documents.

It should be noted that Order of the Ministry of Finance of Ukraine № 329 as of 08.06.2021 "On approval of Amendments to the Regulations on the form and content of settlement documents / electronic documents", registered in the Ministry of Justice of Ukraine on 24.06.2020 under № 832/36454 (hereinafter – Order № 329 ), made changes to the form and content of settlement documents relating to the presence in the fiscal cashier’s checks of digital value of the bar code of excise tax marks on alcoholic beverages formed all without exception by RRO / PRRO.

One of the mandatory requisites of the new excise tax marks for labeling of alcoholic beverages is the bar code and QR code, which contain information about the mark’s series and number.

Sub-paragraph 14.1.107 Paragraph 14.1 Article 14 of the Tax Code of Ukraine (hereinafter – Code) stipulates that the excise tax mark is a special mark for labeling of alcoholic beverages, tobacco products and liquids used in electronic cigarettes, classified as strict accounting documents confirming the excise tax payment, legality of import and sale of these products in Ukraine.

Paragraph 226.7 Article 226 of the Code stipulates that each excise tax mark on alcoholic beverages must have a separate number, month and year of issue and indication of the excise tax amount paid per unit of branded products, except for the amount of excise tax on sales of alcoholic beverages.

Also Regulation on the production, storage, sale of excise marks and labeling of alcoholic beverages, tobacco products and liquids used in electronic cigarettes, approved by Resolution of the Cabinet of Ministers of Ukraine № 1251 as of 27.12.2010 as amended (hereinafter – Regulation № 1251), define requisites that are applied to excise tax marks.

One of the mandatory requisites that must be contained in excise tax marks is a series of four letters, six-digit number and barcode (indicated on marks for alcoholic beverages). The barcode contains information about the series and brand number.

Third clause of Paragraph 226.9 Article 226 of the Code stipulates that the following are considered unmarked:

alcoholic beverages, tobacco products and liquids used in electronic cigarettes with the counterfeit excise marks;

alcoholic beverages marked with a deviation from requirements of Regulation № 1251, according to which production, storage, sale of excise marks and labeling of alcoholic beverages are carried out;

alcoholic beverages produced in Ukraine with excise tax marks on which the indication of the excise tax amount paid per unit of branded products does not correspond to the amount determined taking into account the excise tax rates, product strength and container capacity in force on the date of bottling;

alcoholic beverages of foreign production with excise tax marks on which the excise tax amount paid per unit of branded products does not correspond to the amount determined taking into account product strength, container capacity and excise tax rates in force at the time of mark’s production.

Presence of frequent cases of sale of alcoholic beverages with the same requisites of excise tax marks specified in settlement documents may be grounds to consider that certain economic entities sell alcoholic beverages with the counterfeit excise tax marks and with excise tax marks marked with a deviation from requirements of Regulation № 1251 or those that are not marked at all.

It should be noted that responsibility for non-compliance with order of labeling, sale of alcoholic beverages, tobacco products and liquids used in electronic cigarettes, non-payment or late payment of tax is applicable to producers (customers), importers, sellers of such goods and their officials according to the law (Paragraph 228.9 Article 228 of the Code).

As follows, in the case of sale of unlabeled alcoholic beverages with the counterfeit excise tax marks, excise tax marks marked with a deviation from requirements of Regulation № 1251, the business entities are subject to measures stipulated by Articles 15 and 17 of the Law of Ukraine № 481/95-VR as of 19.12.1995 "On state regulation of production and turnover of ethyl alcohol, cognac and fruit, alcoholic beverages, tobacco products, liquids used in electronic cigarettes and fuel."