License for alcohol and tobacco trade

The trade in alcoholic beverages and tobacco in Ukraine is a very profitable business, but requires a prior license.

The procedure for obtaining a license for retail sale of alcohol or tobacco involves many nuances and features, which impact the result – the issuance of a license or refusal to issue it.

Firstly your should note the folowing:

  • a license for alcohol is issued to each cash register installed at the place of trade;
  • tobacco license – for each place of trade.

The amount of the license fee varies depending on the location of the trading venue.

Thus, as a general rule, the annual fee for retail alcohol is UAH 8000 for each cash register, and for retail tobacco -UAH  2000 for each place of trade.

If the place of trade is in the territory of the village, the fee will be respectively UAH 500 and UAH 250 (does not apply to villages located within the territories of cities, places of commerce up to 50 km outside the territories of cities of regional subordination and cities of Kyiv and Sevastopol with an area of more than 500 sq.m.).

The license fee should then be paid quarterly in equal installments and credited to the local budget.

The license is issued by the tax authorities at the place of trade (not the place of incorporation).

 

Cash register

You must purchase and register a cash register (billing registrar) before obtaining a license for retail alcohol and tobacco.

Registration is carried out by the tax authority at the place of registration of the payer.

The list of cash registers and information about them (model, modification, factory number, manufacturer, date of manufacture, registration numbers of certificates and the date of commencement of their registration) is indicated in the application for the license for retail sale of alcohol.

Later, the same information is provided in the annex to the license.

In the case of sale of alcohol through a cash register, which is not specified in the license, the company will pay a fine of 200% of the cost of alcohol, but not less than UAH 10000 .

 

Documents for the license

In order to obtain a license for alcohol and tobacco, the following documents should be prepared and submitted:

License application. The statement must include the following information:

  • type of activity (retailing alcohol or tobacco);
  • place of trade address;
  • list of cash registers and information about them.

A copy of the payment order confirming the payment of the annual license fee.

The license is to be issued within 10 working days of application. In case of refusal, a motivated reason shall be indicated with reference to the rules of the current legislation.

 

Other important information

For the retail sale of alcohol, a minimum of 20 square meters must be met.

If you change your trading venue, you will need to obtain a new license. After all, a license is issued for each place of trade.

However, if the other information specified in the license (other than the reorganization of the entity) changes, the body that issued the license will issue a license to you on the new form within 3 business days, subject to changes.

The Law imposes a considerable fine for trade in alcoholic beverages or tobacco without a license  – 200% of the value of goods sold, but not less than UAH 17000 .

Administrative responsibility for alcohol/tobacco trade without a license is a fine in the amount of 3400 UAH to 10200 UAH with confiscation.

Author
You may like
A new law on virtual assets: the picture is formed, but without details. On September 8, 2021, the Verkhovna Rada has finally adopted the long-awaited law "On Virtual Assets", which clarified many ambiguous points. This is especially true for the status of cryptocurrency and the rules of its circulation in the country. Let`s take a closer look at novelties. An ambiguous term Let's start with what the legislator actually means by "virtual assets". There are the following features:  they are an intangible good (cannot be represented on tangible media)  fall under the list of objects of civil rights (that is, they can be owned and be disposed of)  represent an electronic form of a set of data (essentially, they are blocks of information put in order);  the existence and circulation of assets are due to software tools (specific electronic environment). From these features we can draw the following conclusion: virtual assets are not limited to cryptocurrency. Digital currency is part of the concept, but other instruments, such as tokens, NFTs, or even in-game items, fall under the definition. Actually, the actual existence of most digital products, having a certain value, is due to the software environment (ecosystem), either it is blockchain technology, a trading platform, or an online game server. It should be noted that the attempt to define virtual assets was already made in the adopted Law of Ukraine in counteracting money laundering. In this act, they understand it as digital means of payment, which goes against the new definition. As a result, there are now two different explanations for virtual assets, which causes significant confusion not only in regulation but also in interpretation. It is definitely necessary to expect clarifications from competent state bodies. Let's return to the new law. Its application covers legal relations in which the "Ukrainian element" is present:  provider or recipient of services represented in Ukraine;  an agreement according to which the turnover of virtual assets is carried out in accordance with Ukrainian legislation;  the acquirer of assets (or both counterparties) is a resident(s) of Ukraine. The law also introduces an interesting division of all virtual assets into two groups: secured and unsecured. Here again, there is a problem of interpretation. The first category includes products exchanged for (state) currency, the second category includes instruments that can be exchanged only for other digital assets. There is an alternative opinion: that the turnover of secured assets is supported by real goods (money or other property), while unsecured ones are not supported by anything. The latter interpretation is the most credible, as the new law stipulates that virtual assets are NOT means of payment. Moreover, they cannot be exchanged for real goods, be they property, services or money. This significantly narrows the potential for the use of virtual assets not only for commercial but also for civilian purposes. About obligatory licensing The new law states that in some cases, the use of virtual assets will require licensing. The 4 types of activity are mentioned:  storage and management of virtual assets (or its` keys)  servicing of exchange operations with virtual assets (both for other analogues and for real goods);  translation of digital assets;  any intermediary services. A list is quite impressive, but there are some important exclusions:  if your service works with cryptocurrency wallet (it means users can dispose of accumulations into cryptocurrency independently);  If your service works on smart contracts or decentralized protocol, based on which internal transfers are performed. As to intermediary services, everything is more compicated. Actually, any mediation is based on the public share offering. That is why it is subject to licensing. How to get a license? A company that wishes on legal grounds to engage in virtual assets must satisfy legislative requirements. The key role is played by the minimum amount of the statutory capital, which equals 1,19 million hryvnyas (for non-residents it is 5,95 million hryvnyas) in case of storage and administration. For other types of activity (trading, translation and mediation services) the minimum size of the statutory capital amounts to 595 thousand hryvnyas (for non-residents is 2,98 million hryvnyas). The order of the registration of license:  to compose an application and prepare documents.  to pay state fee (68-136 thousand hryvnyas for residents and 340-680 thousand hryvnyas is for non-residents).  to pend review of the request (30 days).  to get a license. The duration of the license is 1 year. No norms about the continuation of legal force of permission are set (we are expecting amendments or explanations from the Ministry of Digital transformation of Ukraine). Notably that non-residents must pay a far greater sum, than domestic companies. The Ukrainian legislator obviously encourages an internal market, getting rid of a strong foreign presence (that, in fact, coincide with modern politics of the state on the whole). Together with an application, the following documents must be prepared: The access code to the copy of the Statute of the company (or the foundation agreement) kept in an electronic file in the database of the Unified State Register of Enterprises and Organizations (USREO);  Funding sources of the statutory capital (where the money are taken from);  confirmation of the actual injection of money;  information about beneficiaries (special attention must be paid to business reputation);  the information about the director and founders;  the check about payment of state fee;  the internal regulations, in accordance with which ones, the privacy policy rules are regulated. In the terms of volume of necessary documentation of licensing is very alike with complete registration of legal entity. It is understood that the state wants the severe adjusting of activity of organizations that will engage in virtual assets. Is it already possible to get a license? The adoption of the law by the parliament is a significant step forward in adjusting and legal market of virtual assets creation in Ukraine. However, the new rules haven`t come into effect yet - their term of introduction depends on making amendments in the Internal Revenue Code. It is yet unknown, when a legislator will decide to enter the renewed system of taxation for such assets. Being "IT-hub" and territory, where cryptocurrency enjoys large popularity, the question of taxes must be decided maximally safely. Despite the presence of obvious gaps in interpretation, a new law on virtual assets gives the official narrative of what takes place and that, how the legal relationships related to cryptocurrency will be regulated. It is to be hoped that in the nearest time the Ministry of digital information will give out the detailed explanations concerning debatable norms.
20/01/2022

We will
call you