Approved Procedure for Determining the Productivity of Equipment for Bioethanol

The Cabinet of Ministers of Ukraine has adopted Resolution No. 350 “On Approval of the Procedure for Determining the Maximum Productivity of Equipment for the Production of Ethyl Alcohol and Bioethanol.” This decision marks an important step in the implementation of the Law of Ukraine dated October 9, 2024, No. 4014-IX, concerning amendments to the Tax Code of Ukraine and other legislative acts regulating the taxation of ethyl alcohol and bioethanol with excise tax.

This is reported by AgroReview

The resolution comes into effect on January 1, 2025, and its implementation will begin on April 1, 2025. The first tax period for calculating the guaranteed tax obligation (GTO) for excise tax is set for May 2025. The excise tax declaration must be submitted by June 20, 2025.

Main Provisions of the Resolution

The document defines:

• The procedure for determining the maximum productivity of equipment for the production of ethyl alcohol and bioethanol;
• The form that producers must use to provide the State Tax Service with the calculation of the maximum productivity of equipment.

Producers of ethyl alcohol and bioethanol must determine their excise tax obligations in accordance with the guaranteed tax obligation. It is important to note that the requirements for determining the GTO do not apply to those economic entities that only produce bioethanol and hold the appropriate license.

“One of the main priorities of the Ministry of Agrarian Policy is deep processing and the production of bioethanol. Bioethanol is an alternative to conventional fuel, which can be used not only for agricultural machinery. The Ministry of Agrarian Policy is actively working on the development of this important sector,” said the Minister of Agrarian Policy and Food of Ukraine, Vitaliy Koval.

It is also worth noting that the taxation mechanism for producers of alcohol and bioethanol has been changed, which will contribute to the development of this field.