Turnover of excisable goods: answers to questions

Are transactions on the retail sale of cocktails made with alcoholic beverages subject to excise tax, and what is the tax base in this case?

Yes, they are.

In this case, the tax base is the cost (including value added tax and excluding excise tax on the sale of excisable goods by retailers) of excisable goods sold in accordance with sub-clause 213.1.9 of the TCU (sub-clause 214.1.4 of the TCU).

Are nicotine-containing products for oral use subject to excise tax?

Currently, no, but in accordance with the amendments introduced by the Law of Ukraine No. 3553-IX dated January 16, 2024 "On Amendments to the Tax Code of Ukraine on Bringing Certain Provisions in Compliance with the Law of Ukraine "On the Customs Tariff of Ukraine" and Clarification of Certain Provisions" to the Tax Code starting from September 1, 2024, operations on the import and sale of goods under the code 2404 91 90 00 "Other nicotine-containing products for oral use", which are included in the list of excisable goods, will be subject to excise tax at the rate of UAH 2,363.4 per 1 kilogram (net) of such product, and from January 1, 2025 - UAH 2,836.08 per 1 kilogram (net) of such product.

Do business entities that have obtained licenses for the retail sale of liquids used in e-cigarettes need to enter information about storage facilities located at the place of trade into the Unified Register of Storage Facilities?

No, it is not required. According to Art. 15 of the Law of Ukraine No. 481/95-BP dated December 19, 1995 "On State Regulation of Production and Circulation of Ethyl Alcohol, Alcohol Distillates, Alcoholic Beverages, Tobacco Products, Liquids Used in Electronic Cigarettes and Fuel", business entities licensed to retail alcoholic beverages, tobacco products and liquids used in electronic cigarettes shall enter into the Unified Register only those places of storage of liquids used in electronic cigarettes located at a different address than the place of trade.

For the purposes of retail excise taxation, how is the cost of selling goods that have been damaged, destroyed, lost or used for personal needs determined?

For the purposes of excise taxation on the sale by retailers of excisable goods (products) that are damaged, destroyed, lost, or are considered to have been sold directly to citizens and other end consumers for their personal non-commercial use or used for their own needs, except as provided for in clause 216.3 of the Tax Code, the value of such goods shall be their retail price according to accounting data.