On November 3, 2022, the Verkhovna Rada of Ukraine adopted the Law of Ukraine № 2709-IX "On amendments to the Budget Code of Ukraine on updating and improving certain provisions" (hereinafter – Law № 2709).
This Law introduced amendments to the Budget Code of Ukraine, by which the central executive body that implements state tax policy is entrusted with an obligation of determining percentages for crediting part of the excise tax on fuel produced in Ukraine and imported to the customs territory of Ukraine to local self-governments budgets taking into account data of registrars of settlement operations, publishing such parts on web portal of the State Tax Service and providing them to the State Treasury Service of Ukraine.
Pursuant to requirements of the Law № 2709, the Ministry of Finance of Ukraine has developed a draft Resolution of the Cabinet of Ministers of Ukraine approving the Procedure for crediting part of the excise tax on fuel produced in Ukraine and imported to the customs territory of Ukraine to local self-government budgets.
Mechanism is that the specified excise tax is credited to local self-government budgets automatically and proportionally to the volumes of fuel sold by the retail business entities in relevant territory for the previous half-year, taking into account data of registrars of settlement operations (abb. RRO).
Therefore, amount of the excise tax on fuel credited to relevant local self-government budget will depend on the relevance of addresses of economic objects, to which the RRO is registered and completeness of reflection of mandatory requisites in the corresponding columns of settlement documents, in particular, the commodity subcategories codes according to Ukrainian classification of the FEA products.
In order to ensure that the local self-governments budgets receive appropriate amounts of part of the excise tax on fuel produced in Ukraine and imported to the customs territory of Ukraine and to prevent emergence of unnecessary grounds for actual audits of business entities, we ask taxpayers to pay attention to the need to correctly fill in all requisites of settlement documents and registration data.