Clarifying Excise Tax Declaration: Which Attachments Need to Be Submitted and When Penalties Are Not Charged
In Ukraine, excise tax payers have the right to independently correct errors in tax reporting. The Tax Service clarified which attachments must be submitted together with the clarifying declaration and in which cases during martial law penalties and interest are not charged.
It is noted that the form of the excise tax declaration, as well as the Procedure for its completion and submission, were approved by the order of the Ministry of Finance of Ukraine dated January 23, 2015, No. 14.
Tax officials stated that if a taxpayer independently detects an understatement of tax liability for previous reporting periods before the start of an audit, they have the right to correct such an error in one of two ways.
The first option involves submitting a clarifying declaration together with Attachment 7, which contains the calculation of the excise tax amount to be increased or decreased. The second option is submitting Attachment 7 as part of the reporting or new reporting declaration for the next reporting period.
At the same time, the State Tax Service drew attention to the fact that special rules apply during the period of martial law. According to subparagraph 69.38 of subsection 10 of section XX of the Tax Code of Ukraine, if a taxpayer independently corrects errors in accordance with the requirements of Article 50 of the Tax Code, which led to an understatement of tax liabilities, they are exempt from the accrual and payment of penalties and interest.
In addition, Attachment 7 to the declaration consists of six sections — A, B, C, D, E, and F, which contain information about the tax amounts for the corresponding sections of the declaration.
When submitting a clarifying declaration, it is necessary to submit only those attachments whose indicators are being clarified, as well as Attachment 7 without fail.
Moreover, from August 1, 2023, until the termination or cancellation of martial law, when filling out Attachment 7, it is not necessary to fill in columns 5, 6, and 7, which relate to the accrual of penalties and interest.
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