Tax and accounting insights for Ukraine
28.05.24
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Activities of manufacturers and sellers of excisable goods will become more complicated

"The activities of production/import, wholesale and retail trade in excisable goods (fuel, tobacco products and alcoholic beverages) will become much more complicated.

And the tax authorities will receive additional tools (read: corruption opportunities) to influence such business entities," said MP Nina Yuzhanina.

These are the disappointing conclusions of the working group in the Tax Committee, which is preparing draft law No. 10346 for the second reading.

What is proposed:

1. Expanding the list of grounds for license termination, including the actual absence of the entity at the place of registration.

For sole proprietors, this is the place of residence of the individual (while the place of actual activity may be even in another region).

2. Introduce licensing for the storage of fuel for own needs in tanks of more than 60 liters for all business entities, and in case of discrepancies between fuel balances and information in primary documents, the tax authorities will bring charges of trading without a license or storing unaccounted for volumes of fuel.

3. Prohibit the retail sale of tobacco products in retail outlets with an area of up to 20 square meters (this requirement currently applies to the sale of alcoholic beverages), which will lead to the termination of activities of a significant number of legal sellers.

4. Submission to the tax authorities of an additional document on the payment of quarterly (annual) license fees (bank information is no longer sufficient for the tax authorities, it will need to be duplicated by a special notice for each individual license).

5. Appearance of permanent tax representatives at tobacco production facilities (similar to producers of alcohol and alcoholic beverages, which have proven to be completely ineffective, but the tax authorities want them to).

6. Preservation of the centralized sealing system for alcohol producers (with tax representatives at the production sites), which today leads to shutdowns of plants due to the "employment" of employees of the headquarters.

7. Establishing an obligation for existing licensees to submit additional documents to the tax authorities under the new law without the possibility of obtaining an unlimited license (when the current license expires, the documents will have to be submitted anew).

"This is not to mention the increase in license fees and fines.

Once again, the authorities are offering businesses to tighten their belts - this is the fight against the illegal market (at the expense of the legal one)," the MP emphasizes.

Nina Yuzhanina, MP

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