On July 30, the Cabinet of Ministers of Ukraine approved a draft law amending the Tax Code — introducing new rules for administering the circulation of fuel and ethanol, as well as the excise tax.

Key provisions of the draft law include:

• Enhanced control over the circulation of fuel and ethanol through electronic administration systems (SEA-Fuel and SEA), including the identification of fuel owners, the issuance of excise invoices upon transfer of ownership, and inventory adjustments based on actual volumes after inspections.
• Cancellation of excise warehouse registration in case of violations — such as absence of a license, tanks, meters, or registered equipment — by decision of the supervisory authorities.
• Penalties for data discrepancies: if actual volumes of fuel or ethanol exceed or fall below the figures recorded in SEA, a fine of 500% of the excise tax is imposed on the unaccounted or excessive volume.
• New liability for storing fuel or ethanol without being registered as an excise taxpayer.
• Improved accounting of raw materials: mandatory reporting on the receipt, import, use, and stock of raw materials used in the processing of petroleum products into fuel.

What’s next?

• The draft law will be registered in the Verkhovna Rada of Ukraine and will follow the standard legislative review process.
• Following its adoption, a number of provisions will require additional regulatory acts for implementation.
• The effective date of the law will be announced separately — typically the day after its official publication.

It is important to note that this draft law introduces significant changes in the administration of excise tax, strengthens control over the movement of fuel and ethanol, and establishes new mechanisms of liability for taxpayers. We recommend reviewing the full text of the draft law and the analysis of its key provisions to plan your next steps accordingly.

Please contact the Association for further consultation.