The Verkhovna Rada of Ukraine adopted the Law of Ukraine № 4014-IX as of 09.10.2024 “On amendments to the Tax Code of Ukraine and other Laws of Ukraine regarding the excise taxation peculiarities of ethyl alcohol and bioethanol” (hereinafter – Law № 4014), which made changes the Tax Code of Ukraine and the Law of Ukraine № 3817-IX as of 18.06.2024 “On state regulation of production and circulation of ethyl alcohol, alcohol distillates, bioethanol, alcoholic beverages, tobacco products, tobacco raw materials, liquids used in electronic cigarettes and fuel”, in terms of establishing certain peculiarities of calculating the excise tax by producers of ethyl alcohol and bioethanol.
Paragraph 1 Section II of the Final and Transitional Provisions of the Law № 4014 stipulates that it has to enter into force on the day following its publication day and has be put into effect on the first day of the fourth month following its publication month.
Law № 4014 was published in the newspaper "Holos Ukrainy" on 31.12.2024 under № 200.
Therefore, Law № 4014 entered into force on 01.01.2025 and is effective from 01.04.2025.
Law № 4014 introduces obligation for producers of ethyl alcohol and bioethanol to determine excise tax liabilities taking into account the guaranteed tax liability for excise tax, which is understood as amount of the excise tax liability calculated based on:
- maximum productivity of equipment for production of ethyl alcohol, bioethanol;
- number of days in the reporting period during which equipment was operating;
- ethyl alcohol and bioethanol residues at the beginning and end of reporting period;
- sales volumes of ethyl alcohol and bioethanol during reporting period, including those that were not subject to the excise tax.
In addition, procedure for determining the maximum productivity of equipment for production of ethyl alcohol and bioethanol and procedure for calculating the excise tax on guaranteed tax liability are also provided.
For reference: maximum productivity of ethyl alcohol and bioethanol production equipment means the maximum volume of ethyl alcohol and bioethanol in liters of 100 percent ethyl alcohol that can be produced per day on equipment that provides full technological cycle of ethyl alcohol and bioethanol production.
Requirements for determining the guaranteed tax liability for excise tax for tax (reporting) period do not apply to business entities that exclusively produce bioethanol and have appropriate license.
Paragraph 2 Section II of the Law № 4014 establishes that the first tax (reporting) period for which the guaranteed tax liability for excise tax is calculated is a calendar month following the month of entry into force of the Law № 4014.
As follows, the first tax (reporting) period for which the guaranteed excise tax liability is calculated is April 2025, the excise tax declaration for which will be submitted by May 20, 2025 inclusively.