How are goods taxed during presentation? The excise tax

How are goods taxed during presentation? The excise tax

An excise tax is an indirect tax must be paid by manufacturers or distributors to maintain demand for certain goods. The article of the Tax Code of Ukraine No. 215 contains a list of these goods:

? Alcoholic products

? Tobacco and its substitutes, tobacco products

? Petroleum products

? Cars, trailers, semi-trailers, motorcycles

Is there the excise tax on goods are provided to buyers for advertising free of charge?

A very effective promotion for new customers is the distribution of free products. This not only attracts the attention of ordinary people (future customers), but is well retained in their memory also. It is not necessary to give out goods for free, it can be accessories with a logo or things necessary for the home. The most popular of these things are:

? Handles

? Umbrellas

? T-shirts

? Cups

? Calendars

? Sweatshirts

Is it possible to distribute cigarettes or their substitutes for free, or present alcoholic beverages as for excisable goods ? According to the norms of the Law of Ukraine No. 481, retail trade is the activity of selling goods to citizens or other consumers for personal (non-commercial) use. It includes selling on tap at catering establishments. The sale of goods (sales contract) provides for the transfer of ownership of the goods.

The free distribution of alcoholic or tobacco products or liquid to replace cigarettes or other products for smoking is a transfer of ownership of the use since another person becomes the owner. Such financial transactions are considered a sale and it can be performed if the seller has the necessary license. A seller – the person or organization transfers ownership of a product or service by paying the cost of the product / service. In the absence of relevant documents, a fine of 200 percent of the value of the received consignment of goods may be imposed, but the amount of the fine cannot be less than 17,000 hryvnia.

It does not charge a fee for the goods if a business entity distributes excisable goods (ethyl alcohol, alcohol-containing products, beer, tobacco products, tobacco substitutes, tobacco) for advertising purposes. It distributes them free of charge. Therefore, there is nowhere to collect tax. This organization must have an appropriate license to distribute excisable goods. Otherwise, there will be a fine of 200% of the cost of the consignment (at least 17,000 hryvnia).