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Business does not support the accounting of alcoholic beverages by bottle

26/ 11/ 2021
  The European Business Association has the information that state authorities are currently discussing and working out changes to the mechanisms for the production, storage, sale of excise stamps, and labeling of alcoholic beverages. On the whole, the EBA experts support the idea of abolishing the current excise tax stamps for alcoholic beverages as well as simplifying or digitalizing the excise tax stamp reporting procedure. This will certainly simplify the administration of these processes. Meanwhile, we strongly oppose the introduction of any instruments aimed at accounting for every bottle of alcoholic beverages at all stages. This is due to the intricacies of the imported alcoholic beverages market as well as the current requirements of Ukrainian legislation on accounting and payment of excise tax. After all, business works with batches, not with an individual bottle. Accordingly, tracking the supply chain of each bottle will require significant additional resources – both human and financial. Moreover, this approach to the accounting of alcoholic beverages will require re-equipment of technical facilities in companies and may lead to significant risks of possible errors related to the human factor. The business draws special attention to the need for a transition period for the implementation of any changes related to the excise tax stamp as required by applicable law (not earlier than 24 months after the entry into force of the relevant changes). It is also necessary to allow the sale of goods with a long and unlimited shelf life that have old stamps before the purchase of such goods by the final consumer. Therefore, while supporting the aspiration to bring more order to the market, the European Business Association calls for cooperation between the state and the business to develop a solution to existing market problems, without creating additional burdens and difficulties for legal producers and importers of alcoholic beverages. Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

The European Business Association has the information that state authorities are currently discussing and working out changes to the mechanisms for the production, storage, sale of excise stamps, and labeling of alcoholic beverages.

On the whole, the EBA experts support the idea of abolishing the current excise tax stamps for alcoholic beverages as well as simplifying or digitalizing the excise tax stamp reporting procedure. This will certainly simplify the administration of these processes.

Meanwhile, we strongly oppose the introduction of any instruments aimed at accounting for every bottle of alcoholic beverages at all stages. This is due to the intricacies of the imported alcoholic beverages market as well as the current requirements of Ukrainian legislation on accounting and payment of excise tax. After all, business works with batches, not with an individual bottle. Accordingly, tracking the supply chain of each bottle will require significant additional resources – both human and financial. Moreover, this approach to the accounting of alcoholic beverages will require re-equipment of technical facilities in companies and may lead to significant risks of possible errors related to the human factor.

The business draws special attention to the need for a transition period for the implementation of any changes related to the excise tax stamp as required by applicable law (not earlier than 24 months after the entry into force of the relevant changes).

It is also necessary to allow the sale of goods with a long and unlimited shelf life that have old stamps before the purchase of such goods by the final consumer.

Therefore, while supporting the aspiration to bring more order to the market, the European Business Association calls for cooperation between the state and the business to develop a solution to existing market problems, without creating additional burdens and difficulties for legal producers and importers of alcoholic beverages.

Be the first to learn about the latest EBA news with our Telegram-channel EBAUkraine.

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