Wine and Spirits

15/ 04/ 2016

The Cabinet of Ministers of Ukraine (CMU) Resolution “On certain issues of excise stamps” No 209 dd 23 March 2016 was officially published and took effect on 29 March 2016. 1. Certain provisions that duplicate Tax Code were excluded. Every time when the Tax Code is amended, companies have to wait for the appropriate changes to the procedure of excise stamps taxes’ turnover, because both documents contain the same provisions. Such expectations could last in average for 3-5 months. Currently it is enough to change only one document. 2. Importers/producers received the possibility to take all prepaid excise stamps of the previous sample without limits. Recently when changing the samples of excise stamps the Cabinet of Ministers of Ukraine sets time limits on the possibility of issuing stamps. Thus, companies lose money and import or production without stamps is suspended. 3. Limit for additional ordering was increased from 40% to 100% of the previous order. In 2014 40% limit on additional order of excise stamps was established. It reduced the possibility to produce more products and pay more excise duties. The Association members repeatedly stressed on the necessity to increase this limit. Now the state will receive additional revenues. 4. Damaged excise stamps for alcohol The stamps are often damaged, and thus bottles are considered to be unmarked by fiscal authorities. Resolution specifically identified the size of damages, under which alcoholic products are considered to be unmarked. Taking into consideration these sizes of damages the intact part of stamp is 60% and the product is considered to be properly marked accordingly be sold. We welcome the adoption and publication of the CMU Resolution #209. Additionally, the Association would like to express its gratitude to the Government and companies that actively participated in the process. Legal background If you have any questions, please contact Christina Linichenko ([email protected]), Wine and Spirits Committee Manager, or call: 044 496 06 01

The Cabinet of Ministers of Ukraine (CMU) Resolution “On certain issues of excise stamps” No 209 dd 23 March 2016 was officially published and took effect on 29 March 2016.

1. Certain provisions that duplicate Tax Code were excluded.
Every time when the Tax Code is amended, companies have to wait for the appropriate changes to the procedure of excise stamps taxes’ turnover, because both documents contain the same provisions. Such expectations could last in average for 3-5 months. Currently it is enough to change only one document.

2. Importers/producers received the possibility to take all prepaid excise stamps of the previous sample without limits.
Recently when changing the samples of excise stamps the Cabinet of Ministers of Ukraine sets time limits on the possibility of issuing stamps. Thus, companies lose money and import or production without stamps is suspended.

3. Limit for additional ordering was increased from 40% to 100% of the previous order.
In 2014 40% limit on additional order of excise stamps was established. It reduced the possibility to produce more products and pay more excise duties. The Association members repeatedly stressed on the necessity to increase this limit. Now the state will receive additional revenues.

4. Damaged excise stamps for alcohol
The stamps are often damaged, and thus bottles are considered to be unmarked by fiscal authorities.
Resolution specifically identified the size of damages, under which alcoholic products are considered to be unmarked. Taking into consideration these sizes of damages the intact part of stamp is 60% and the product is considered to be properly marked accordingly be sold.

We welcome the adoption and publication of the CMU Resolution #209. Additionally, the Association would like to express its gratitude to the Government and companies that actively participated in the process.

Legal background

If you have any questions, please contact Christina Linichenko ([email protected]), Wine and Spirits Committee Manager, or call: 044 496 06 01

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