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With the Council’s facilitation single tax taxpayers receive the right to sell cider 

18.02.2019

Subject of complaint: The State Fiscal Service of Ukraine (SFS) 

Complaint in brief: On September 6, 2018, Mykola Devyatov, a pub owner in Kyiv Oblast appealed to the Council. The individual entrepreneur complained about the actions of the tax authority. 
In August, the entrepreneur, as a single tax payer, applied to the tax authority for a cider selling license. At first, the tax authority long refused to accept the Complainant’s documents, and then replied that to sell this beverage the Complainant should switch to general taxation system regime. 

After a series of refusals, unscheduled tax audits and numerous complaints to the SFS hotline, the entrepreneur, overwhelmed with feeling of injustice, turned to the Council for support. 

Actions taken: The Council’s investigator thoroughly examined the details of the complaint and the legislation regulating it.

It is noteworthy that according to the Tax Code (TC), single tax payers of group І-ІІІ, as the Complainant, can sell beer and jug wines. At the same time, selling cider (including pear cider) is possible only provided transition to the general system of taxation. 

Having acknowledged relevance of the entrepreneur’s arguments regarding legal regulation of such beverages sale being disproportionate, the Council addressed the Ministry of Finance and SFS in writing. The investigator asked the authorities to clarify what the reasons for restrictions imposed on single tax payers of group I-III for the sale of cider were. She also proposed to assess the feasibility of granting them this right. The correspondence between the Council and authorities in charge of this issue lasted several months. 

Result achieved: Four months of the BOC’s hard work finally paid off. The Verkhovna Rada adopted the amendments to the TC which enabled single tax payers of group I-III to get a license for selling cider and pear cider. 

Amendments became effective on January1, 2019.