Government follows initiative by Ministry of Finance and adopts decrees implementing electronic management system for fuel sales

2/24/16

In accordance with the initiative of the Ministry of Finance, the Government on February 24 adopted decrees regulating the operation of the electronic administration system for fuel sales and the update of the United register of excise tax bills.

The Ministry of Finance is continuing its work to ensure transparency in the tax administration as well as further simplification of tax reporting. With this purpose, electronic VAT administration was launched on July 1, 2015. This system contributed to the liquidation of "tax gaps” and corruption schemes related to the VAT. The next step in this field is scheduled for March 1, 2016 – a system for the electronic fuel sales administration will be launched and electronic excise tax bills will be implemented. These will be effective tools targeting the illegal fuel sales.

Government decrees which were adopted to implement the Law of Ukraine No. 909-VIII dated December 23, 2015, define the procedure for the registration of fuel excise tax payers in the electronic register, opening and termination of electronic accounts for these tax payers as well as the operation of the electronic fuel sales
administration system.

Excise tax bills shall be issued for all fuel sales transactions within Ukraine. They shall be used the same way as VAT bills, issued electronically by vendors, provided to buyers and registered in the United register of excise tax bills.

Thus, the decrees adopted by the Cabinet of Ministers shall implement an effective mechanism for the electronic monitoring of the turnaround and volume of fuel on the domestic market in Ukraine as well as prevent tax-dodging by oil traders and contribute to the reduction of the share of the black market and smuggled products on the Ukrainian fuel market.

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