Perpetual Licenses: What Entrepreneurs Need to Know About Mandatory Payments
Licensing of certain types of economic activities is carried out in accordance with the requirements of the current legislation of Ukraine. For business entities, a procedure is established not only for obtaining licenses but also for fulfilling the obligations related to their use. Failure to comply with such requirements may have consequences for conducting activities. The tax service reminded which rules apply to licensees in Ukraine.
As reported by the tax service in the Odessa region, from January 1, 2025, licenses for the right to conduct the corresponding type of economic activity are issued without a time limit.
At the same time, Article 54 of the Law of Ukraine dated June 18, 2024, No. 3817-IX "On State Regulation of the Production and Circulation of Ethyl Alcohol, Alcohol Distillates, Bioethanol, Alcoholic Beverages, Tobacco Products, Tobacco Raw Materials, Liquids Used in Electronic Cigarettes, and Fuel" provides that a business entity is obliged, before the beginning of each subsequent annual or quarterly period, to ensure the payment of the next annual fee or the quarterly part of the annual fee for the granted license.
In addition, after making the payment, the licensee must notify the relevant licensing authority about its submission in paper or electronic form in accordance with the procedure defined by Article 42 of the Tax Code of Ukraine. This notification must specify the budget revenue classification code, the amount of the payment made, as well as the number and date of the payment instruction confirming the payment of the annual fee or the quarterly part of the annual fee for the respective license.
Control over the timeliness of payment of the annual fee or the quarterly part of the annual fee for the license is exercised by the licensing authority.
Therefore, licenses for the right to conduct the corresponding type of economic activity obtained from 01.01.2025 are perpetual, however, the business entity is obliged to ensure timely payment of the next annual fee or the quarterly part of the annual fee for the granted license and submit the relevant applications, in accordance with the Resolution of the Cabinet of Ministers of Ukraine dated April 4, 2025, No. 374 "On Certain Issues of Maintaining Unified Registers of Licensees for the Production and Circulation of Ethyl Alcohol, Alcohol Distillates, Alcoholic Beverages, Tobacco Products, Tobacco Raw Materials, and Liquids Used in Electronic Cigarettes, Licensees and Places of Fuel Circulation".
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