The “Fuel and Energy Business” Association actively analyzes new legislative changes affecting the fuel sector. The Verkhovna Rada has passed several important laws that have a significant impact on licensing rules and tax obligations. This has caused many questions and uncertainties in the business environment, especially regarding the adaptation to the new rules and the possible increase in the tax burden.

Tax changes and their consequences for business.
The recently adopted Law No. 3939-IX “On Amendments to the Tax Code of Ukraine” aimed to establish new taxation conditions for enterprises engaged in retail fuel trade. This law, passed on September 3, 2024, provides for “retroactive” taxation from October 1, 2024, however, as of early November, it has not yet been signed by the President, leaving businesses in a state of uncertainty.
The main change is the introduction of monthly advance payments for businesses that sell fuel at retail. The association believes that such a system can lead to significant financial difficulties, especially for small and medium-sized regional networks of gas stations. The requirement to pay tax in advance creates additional pressure on enterprises, which have to work in conditions of limited resources and lack of stability in the market.

The new licensing system and its impact.
Law No. 3817-IX, which entered into force on July 27, 2024, significantly changes the licensing rules for the fuel business. This law, which replaces the previous Law No. 481, introduces stricter requirements for licensing the production, storage and sale of excise goods, including fuel. Until the end of 2024, both laws operate in parallel, but only in parts that do not contradict each other. This creates a transition period during which companies must adapt to the new requirements and streamline their licensing documents.
According to the transitional provisions, by January 1, 2025, enterprises that had valid licenses must renew them or pay off the debt in order to maintain the right to operate. For many businesses, this is a challenge, as during the war, expired licenses were extended without the need to make further payments. Now companies are required to pay all overdue payments to avoid penalties.

Risks for small and medium enterprises.
The new rules have a particularly negative impact on small and medium gas station networks operating in the regions. Increasing financial burden in the form of advance payments and the need to renew licenses create risks of mass closure of small networks that cannot compete with larger operators. This can lead to reduced competition in the market and reduced access to gas station services in remote regions.
The Association of “Fuel and Energy Business” continues to support its members, offering them advice and assistance in solving these challenges. In particular, the Association calls on the government to pay attention to the needs of small businesses and find compromise solutions to reduce the tax burden.

Consultations and support during the transition period.
In the conditions of the transition period, the Association recommends that members familiarize themselves with the provisions of Law No. 3817. For example, licenses issued under the old rules remain valid until the expiration date, if regular payments have been made. However, enterprises that have expired licenses or have not made payments should promptly take measures to update license documents.
Changes in the law also affect the obligations of companies that continued to operate during the war. Enterprises must repay all “debts” for license payments by the end of the transition period (October 31, 2024). This also applies to those who did not pay payments during martial law due to the introduced relaxations.

Recommendations from the Association.
The association advises market participants to carefully monitor changes in legislation and promptly respond to new requirements. It is important for businesses to remain flexible and adapt to complex conditions, as new regulations can have both positive and negative effects on their operations.
For businesses seeking to minimize risk, it is important to seek professional legal support and financial management advice to prevent debt from piling up. The association continues to advise and support its members, providing up-to-date information and assistance in adapting to new legislative requirements.
In future publications, the Fuel and Energy Business Association will highlight other key aspects of Law No. 3817 and explain how the introduced innovations can change the rules of the game in the fuel market.

Alina Potapovich
Head of the Committee on Legal Issues and Legislation of the “Fuel and Energy Business” Association