3. Excise Duty
Legislative and Normative Acts and Statutes that One should Follow:
  1. The Law of Ukraine as of April 16, 1991 No 959-XII «0n External Eco-nomic Activity» with changes and amendments.
  2. The Decree of the Cabinet of Ministers of Ukraine as of December 16, 1998, No 18-92 «0n Excise Duty with changes and amendments.
  3. The Decree of the President of Ukraine as of May II, 1998 No 453/98 «0n Payers and on Procedures of Excise Duty Payment»;
  4. «Regulations on Time-frame of the Excise Duty Payment and Filing of the Excise Duty Calculation, approved by the decree of the GDIP of Ukraine (Gen-eral Directorate on Providing Services to Foreign Representative Offices) as of De-cember 25, 1995 No 99, registered in the Ministry of Justice of Ukraine on De-cember 29, 1995 No 488/1024, taking into account changes and amendments in-troduced by the decree of the State Tax Administration of Ukraine as of February 19, 1997 No 42, registered in the Ministry of Justice of Ukraine on March 12, 1997 No 76/1880, and the decree No 217 as of April 20, 1999 registered in the Ministry of Justice of Ukraine on May 05, 1999 No 284/3577.


Excise duty payers are:
  • non-residents operating through resident representative offices located at the territory of Ukraine and manufacturing goods subject to excise duty;
  • non-residents, international establishments and organizations which import to the customs territory of Ukraine goods subject to excise duty, including customers on the basis of whose commission goods subject to paying excise duty were manufactured outside the customs borders of Ukraine on the give-and-take basis;
  • foreigners and people without citizenship who import (send) to the customs territory of Ukraine goods subject to paying excise duty in volumes evaluating to more than 200 ECU;
  • foreigners, people without citizenship in case of selling on the customs territory of Ukraine goods subject to paying excise duty under the condition of lack of documents (customs declarations, clearing, payment and other documents) which confirm payment of the excise duty.
Chart 4.
The payers of excise duty on alcoholic beverages and tobacco products are defined by the Law of Ukraine «0n Excise Duty on Alcoholic Beverages and Tobacco Products».
The object of taxation is:
  • sales turnover of goods (produce) which are subject to paying excise duty and manufactured in Ukraine, and which were either sold, or exchanged for other goods (produce, works, services), or disposal of goods (produce) with partial or zero payment for their value;
  • sales (disposal) turnover of goods (produce) for personal consumption, industrial processing (except for sales (disposal) turnover for manufacturing of goods which are subject to paying excise duty), as well as for their employees;
  • customs' (if there isn't any then procurement) value of imported goods (produce) purchased with foreign currency or through their disposal with partial or zero payment for their value.


Chart 5.
Sums of excise duty that one has to pay to the budget are calculated:
  • in fixed sums for units of measurement of weight, volume, quantity or other natural index of sold/imported goods;
  • according to rates in percents of sales turnover for domestic production goods);
  • according to rates in percents (for imported goods) of sales turnover which is established deriving from the customs goods value taking into account actually paid sums of fees and customs duties.
Chart 6.
Sums of excise duty due to be paid are determined by taxpayers independently in compliance with the current legislation and are paid to the budget in the following terms:
  1. by enterprises-producers selling alcoholic beverages including drinkable or ethyl spirit, bier - on the third working day after carrying out the turnover from sale;
  2. by enterprises-producers selling tobacco products - monthly before the 16-20th of the following month based on the actual volume of tobacco products sales for the tobacco products for the previous month;
  3. by owners (customers) of the alcoholic beverages including drinkable or ethyl spirit, bier and tobacco products produced within the territory of Ukraine using give-and-take raw materials - not later than the day of receiving finished product;
  4. by enterprises (except for those defined in points 1-3) in which average monthly sums of excise duty for the previous year amounted to over 25,000 hryvnias - by decades on the 15th, the 25th of the current month, on the 5th of the month that follows the accounting month basing on the actual taxable turnover for the past month;
  5. by enterprises (except for those defined in points 1-3) in which average monthly sums of excise duty for the previous year amounted up to 25,000 hryvnias inclusive, as well as by persons engaged in business activity without creating legal entity and have permanent residence on the territory of Ukraine - each month not later than the 15th of the month that follows the accounting month basing on the actual taxable turnover for the past month;
  6. newly created enterprises (except for those defined in points 1-3), as well as enterprises that formerly were not excise duty payers, pay excise duty basing on the actual taxable turnover for each month. After a three month period from the beginning of sale of goods (produce) subject to paying excise duty, the excise duty is paid by them in the time-frame established in points 4 and 5.
Chart 7.
Computations of Excise Duty are Made and Submitted to Local State Tax Offices Where Taxpayers were Registered:
These computations are to be submitted by the payers not later than the 15th of the month that follows the accounting month in form accordingly to Amendment 1 of the mentioned above Regulations. Directions on the proce-dure for making up computations by payers of the excise duty are stated in Amendment 2.