EBA Dnipro FinTax Solutions: Excise Duty and VAT

07/ 04/ 2023

During the third webinar of the EBA Dnipro FinTax Solutions project, with the participation of speakers from the Eastern Interregional Office of the State Tax Service on Transfer Pricing and Tetiana Potopalska, a tax expert and analyst, they discussed business-relevant topics related to excise tax and VAT. The experts provided practical advice on the following topics: ✅ Specifics of using fuel purchased for power generators to avoid the risk of penalties for engaging in fuel-related activities without the appropriate license. ✅ Suspension of tax invoice registrations and their restoration. In case the registration of tax invoices has been suspended, it is necessary to check the correctness of the classification codes of goods or services and prepare documents and explanations confirming the fact and possibility of conducting transactions. Afterward, an application for the restoration of tax invoice registration can be submitted. ✅ Benefits. During the War Tax, numerous benefits and reduced rates have been introduced for taxpayers to take advantage of. However, it is essential to note that some benefits have a limited duration and a final deadline for their application. For example, reduced VAT and excise rates for certain types of fuel apply until 01.07.2023. ✅ Inspections. During tax inspections, attention is paid to compliance with tax legislation, including inspections of actual excisable goods. Emphasis is placed on the potential consequences for taxpayers if the controlling authority is not allowed to conduct an actual inspection. Additionally, attention is drawn to the necessity of proper accounting for relevant transactions and documents. ✅ Legislative changes perspectives. The discussion covered future changes to tax legislation regarding VAT, excise tax, and the export support regime during periods of war or a state of emergency.

The experts provided practical advice on the following topics:

✅ Specifics of using fuel purchased for power generators to avoid the risk of penalties for engaging in fuel-related activities without the appropriate license.

✅ Suspension of tax invoice registrations and their restoration. In case the registration of tax invoices has been suspended, it is necessary to check the correctness of the classification codes of goods or services and prepare documents and explanations confirming the fact and possibility of conducting transactions. Afterward, an application for the restoration of tax invoice registration can be submitted.

✅ Benefits. During the War Tax, numerous benefits and reduced rates have been introduced for taxpayers to take advantage of. However, it is essential to note that some benefits have a limited duration and a final deadline for their application. For example, reduced VAT and excise rates for certain types of fuel apply until 01.07.2023.

✅ Inspections. During tax inspections, attention is paid to compliance with tax legislation, including inspections of actual excisable goods. Emphasis is placed on the potential consequences for taxpayers if the controlling authority is not allowed to conduct an actual inspection. Additionally, attention is drawn to the necessity of proper accounting for relevant transactions and documents.

✅ Legislative changes perspectives. The discussion covered future changes to tax legislation regarding VAT, excise tax, and the export support regime during periods of war or a state of emergency.