New tax for alcohol producers: what will the law signed by Zelensky change

Introduction of a guaranteed tax for producers of alcohol and bioethanol: Zelensky signed the law

President of Ukraine Volodymyr Zelenskyy signed a lawpassed by the Verkhovna Rada in October that provides for the introduction of a guaranteed tax liability for ethyl alcohol and bioethanol producers, which will be calculated as an excise tax based on the maximum possible production volume at the enterprise, UNN reports.

Details

Returned with the signature of the President of Ukraine

Addendum Addendum

The document introduces the concept of a “guaranteed tax liability” on excise tax for ethyl alcohol and bioethanol producers, which means that producers will pay excise tax on the volume corresponding to the maximum productivity of their equipment. This taxation will be in effect until Ukraine joins the EU, but no longer than until January 1, 2030.

Companies that have obtained licenses for the production of ethyl alcohol or bioethanol are required to provide the State Tax Service with a calculation of the maximum productivity of equipment for the production of ethyl alcohol and bioethanol before starting their operations.

In case of changes in the maximum productivity of equipment, companies will be required to provide an updated calculation to the tax authorities within 30 calendar days.

Failure to provide a calculation of the maximum productivity of the equipment or failure to pay the tax liability may result in the suspension of the license for at least 365 days.

Recall

Starting from January 1, 2025, Ukraine will introduce a new licensing procedure for the sale of fuel, alcoholic beverages, tobacco products and e-cigarette liquids. For retailers, the license fee will be paid quarterly in equal installments, while for wholesalers it will be paid annually.