SBGS on Facebook explained the application of taxpayers VAT rate of 7% during the legal regime of martial law, state of emergency in the supply of fuel and other petroleum products.
For the period of martial law, state of emergency in accordance with paragraph 82 of subsection 2 of Section XX of the Tax Code of Ukraine at a VAT rate of 7% taxed transactions of import into the customs territory of Ukraine and supply in the customs territory of Ukraine (including those produced at customs territory of Ukraine) of the following goods:
– gasolines of motor, heavy distillates and liquefied gas, classified according to the UKT FEA codes specified in sub-clause 215.3.4. paragraph 215.3 of Article 215 of the TCU for which in accordance with paragraph 41 of subsection 5 of this section set the rate of excise tax in the amount of 0.00 euros per 1000 liters;
– crude oil or petroleum products obtained from bituminous rocks (minerals), classified according to UKT FEA codes 2709 00 10 00 and 2709 00 90 00 (hereinafter – fuel and other petroleum products).
Thus, during the legal regime of martial law, state of emergency in the supply of fuel and other petroleum products ( regardless of when the purchase of such fuels and petroleum products – before the introduction of a VAT rate of 7% on such goods, or after its introduction ) to the value of such goods includes VAT, determined at a rate of 7%.
Formation of a tax credit for transactions for the purchase of goods and services, as well as for the import of goods into the customs territory of Ukraine, for their use in transactions subject to taxation at a rate of 7%, in particular for transactions of fuel and other petroleum products , ie, based on the amount of VAT paid (accrued) on the purchase / import of such goods / services . Also, the tax credit formed in previous tax periods for the purchase of goods and services, as well as for the import of goods into the customs territory of Ukraine, which are used in transactions subject to VAT at a rate of 7%, in particular, in fuel supply and other petroleum products,not subject to adjustment in connection with the application of this VAT rate.
Therefore, based on the above, there is a possibility of forming a negative value of the amount of value added tax, defined as the difference between the amount of tax liability calculated at a rate of 7 percent and the amount of tax credit, which includes the cost of fuel at a higher rate (20 percent ). At the same time, such a negative value is not subject to reimbursement from the state budget to the payer’s account, but will be included in the tax credit and reduce the amount of tax liabilities payable to the budget in subsequent reporting periods.
That is, if the taxpayer who during the reporting period carried out operations for the supply of fuel and other petroleum products specified in paragraph 82 of subsection 2 of Section XX of the TCU, the results of such reporting period, the amount of tax determined in the VAT return under paragraph 200.1 , is negative, such amount of tax cannot be declared (neither in the current reporting period, nor in the following reporting periods) before the budget reimbursement, including the repayment of VAT tax debt or other tax can not be declared in the VAT tax return lines 20.1, 20.2, 20.2.1 and 20.2.2), and is subject exclusively to enrollment in the tax credit of subsequent reporting periods (reflected exclusively in line 20.3 of the VAT tax return).
Regarding the reflection of the amount of VAT in the fiscal check
In accordance with the requirements of paragraph 2 of Article 3 of the Law of Ukraine of July 6, 1995 № 265 /95-VR “On the use of registrars of settlement transactions in trade, catering and services” and further to carry out retail sale of fuel with formation and issue of the corresponding settlement documents, with obligatory reflection of the corresponding VAT rate applicable to such operations on supply (sale).
The form and content of settlement documents is determined by the Regulation on the form and content of settlement documents / electronic settlement documents, approved by the order of the Ministry of Finance dated 21.01.2016 № 13 with changes and additions (hereinafter – the Regulations).
According to the Regulations, the VAT rate is one of the obligatory details of settlement documents, in the absence of which such a document will not be accepted as a settlement document.
Thus, all entities engaged in the retail sale of fuel are required to reprogram their registrars of settlement transactions, changing the VAT rate from 20 to 7%, in order to comply with applicable law, reflect the relevant tax obligations and fees and issuance of relevant settlement documents to consumers.
Regarding the exemption from excise tax on fuel sales
The Law of Ukraine of March 15, 2022 № 2120-IX (date of entry into force 17.03.2022) subsection 2 of section XX “Transitional Provisions” of the Tax Code of Ukraine (hereinafter – the Code) supplemented paragraph 82, according to which, temporarily, for the period of the legal regime martial law, state of emergency, operations on supply in the customs territory of Ukraine and importation into the customs territory of Ukraine of gasoline, heavy distillates and liquefied gas, classified according to UKT FEA codes specified in subparagraph 215.3.4 of paragraph 215.3 of Article 215 of the Code. 41 of subsection 5 of section XX “Transitional Provisions” set the rate of excise tax at 0.00 euros per 1000 liters, as well as crude oil or petroleum products obtained from bituminous rocks (minerals), classified by UKT codes FEA 2709 00 10 00 and 2709 00 90 00,are taxed at a rate of 7 percent.
Until March 17, 2022, the payers of excise tax on fuel were producers and importers of such fuel. The price of fuel imported into the territory of Ukraine by importers before March 17, 2022 and / or sold in the customs territory by its producers and importers up to this date includes the amount of excise tax paid. There is currently no refund of such excise tax.
Starting from March 17, 2022, when importing fuel into the customs territory of Ukraine by importers and selling fuel by producers, the excise tax is not accrued and is not paid to the budget. It should be noted that the amount of such excise tax in the price of fuel, until 17.03.2022 was: in 1 liter of gasoline – 7.08 UAH, diesel fuel – 4.63 UAH, liquefied gas – 1.72 UAH.
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