Law Amending the Tax Code of Ukraine and Introducing a New Excise Tax Calculation System for Ethyl Alcohol and Bioethanol Producers
The law introduces changes to the Tax Code of Ukraine and establishes a new system for calculating excise tax for ethyl alcohol and bioethanol producers. The main innovation is the introduction of the concept of ‘guaranteed tax liability’ for excise tax.
Structurally, the law consists of two sections: the first introduces amendments to the Tax Code, and the second contains final provisions. Changes are also made to the Law on State Regulation of Alcohol Production and Circulation regarding licensing.
Key provisions:
• A formula for calculating guaranteed tax liability is introduced, based on the maximum equipment productivity
• Producers are obligated to provide tax authorities with a calculation of maximum equipment productivity
• New grounds for terminating alcohol production licenses are established
• The provisions will be temporary – until Ukraine’s EU accession, but no later than January 1, 2030
• Producers of bioethanol exclusively are exempt from these requirements
