Paragraph 59 of the Law of Ukraine as of 30.11.2021 № 1914-IX “On amendments to the Tax Code of Ukraine and other legislative acts of Ukraine to ensure balanced budget revenues”, which entered into force on 01.01.2022, amended Sub-paragraph 215.3.1 of Paragraph 215.3 Article 215 of the Tax Code of Ukraine (hereinafter – Code) in terms of increasing the excise tax rates on ethyl alcohol and other alcoholic distillates, alcoholic beverages, beer.
Herewith, Sixth clause of Paragraph 1 Section II of “Transitional Provisions” of this Law stipulates that amendments to Sub-paragraph 215.3.1 of Paragraph 215.3 Article 215 of the Code regarding the excise tax rates on alcoholic beverages shall come into force on the first day of the third month following entry into force of this Law.
That is, the increased rates of excise tax are applicable only to alcohol and alcoholic beverages from 01.01.2022; beer – from 01.03.2022.
Business entities – producers of ethyl alcohol, registering an application to replenish balance of ethyl alcohol in the system of electronic administration of fuel and ethyl alcohol, starting from 01.01.2022 apply the excise tax rate set on the date of sale of ethyl alcohol (paragraph “h” of Sub-paragraph 232.4.1 Paragraph 232.4 Article 232 of the Code), ie in the amount of 133.31 per UAH 1 liter of 100 percent alcohol, which is also accounted for tax exemptions from operations exempted from taxation or taxed at zero excise tax rate.
Producers of alcoholic beverages, for production of which ethyl alcohol is used, pay excise tax or submit tax bill to the supervisory authority at their location before receiving ethyl alcohol from excise warehouse at rates for these products valid until 01.03.2022.