Law № 4014, according to which producers of ethyl alcohol and bioethanol are obliged to provide the State Tax Service, as a licensing authority, with a calculation of the maximum equipment productivity for the production of ethyl alcohol and bioethanol, entered into force on April 1, 2025 (hereinafter – Calculation).
Which ethyl alcohol and bioethanol producers are subject to the requirement to provide Calculation and within what timeframe?
Calculation is submitted by all producers of ethyl alcohol and bioethanol within the following terms, if licenses have been obtained:
starting from April 1, 2025 (from the date of entry into force of the Law № 4014) – before the beginning of its activities and within 30 calendar days from the date of making a change to the maximum productivityof such equipment;
until April 1, 2025 (before entry into force of the Law № 4014) – within one calendar month, following the month of entry into force of the Law № 4014 – during May 2025.
Who performs Calculation and in what order?
To determine the maximum equipment productivity for production of ethyl alcohol and bioethanol, the Cabinet of Ministers of Ukraine:
determined state scientific institution "Ukrainian research institute of ethyl alcohol and biotechnology of food products", which is authorized to calculate the maximum equipment productivity for production of ethyl alcohol and bioethanol (Order of the Cabinet of Ministers of Ukraine №108-p as of 11.022025);
approved Procedure for determining the maximum equipment productivity for production of ethyl alcohol and bioethanol (Resolution of the Cabinet of Ministers of Ukraine № 350 as of 28.03.2025).
What is responsibility for failure to submit Calculation?
Failure to provide / untimely provision of Calculation of the maximum equipment productivity for production of ethyl alcohol, bioethanol, including in case of a change in the maximum productivity of such equipment, is grounds for termination of license. In this case, the business entity has a right to submit application for a new license for a right to conduct such activities not earlier than 365 days from the date of decision to terminate license.
Tax reporting, what are the deadlines for submission?
Starting from the reporting period of May 2025, producers of ethyl alcohol and bioethanol must determine their excise tax liabilities taking into account the guaranteed excise tax liability, which is calculated based on the maximum equipment productivity for production of ethyl alcohol and bioethanol.
Requirements for determining the guaranteed tax liability for excise tax for the tax (reporting) period do not apply to business entities that exclusively produce bioethanol and have appropriate license.
For reference:
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” amended the Tax Code of Ukraine and the Law of Ukraine № 3817-IX as of 18.06.2024 “On state regulation over 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 excise tax by producers of ethyl alcohol and bioethanol;
Resolution of the Cabinet of Ministers of Ukraine № 350 as of 28.03.2025 “On approval of Procedure for determining the maximum equipment productivity for production of ethyl alcohol and bioethanol”;
Resolution of the Cabinet of Ministers of Ukraine № 108-p as of 11.02.2025 “On determining state institution authorized to calculate the maximum equipment productivity for production of ethyl alcohol and bioethanol”.