Record fines for PPOs for excise goods in Ukraine: the results of 2024

In 2024, the State Tax Service of Ukraine set a record in calculating fines for individual entrepreneurs (PPOs) working with excise goods. The total amount of fines assessed as a result of inspections amounted to UAH 9.5 million, which is a significant indicator for this sector. In addition, tax officials conducted about 9,000 actual inspections, as a result of which fines of UAH 132.2 million were assessed.

According to "Opendatabot" data, in the current year the tax service conducted 16,119 camera inspections of FOPs that trade in excise goods. Chamber audits are based on the analysis of tax returns of entrepreneurs, in particular, on the detection of reporting errors, overstatement or understatement of taxes. According to the results of the inspections, fines of UAH 9.53 million were assessed, of which more than UAH 9.5 million have already been agreed to be paid.

This year, the rate of fines has decreased compared to last year. In 2023, 21.96 million hryvnias of fines were assessed based on the results of camera checks, which is one and a half times more than the figures of 2021, despite the decrease in the number of checks.

Analyzing the changes over the past five years, analysts note that the most checks were carried out in 2020, when their number reached 33,882. However, after that, in 2021, the number of camera checks decreased by 1.7 times, while the sum of fines increased significantly. At that time, fines amounted to UAH 14.57 million, which is 1.6 times more than in 2020.

Another important result of this year's campaign was actual inspections. They differ in that tax officials conduct them directly at the place of business of entrepreneurs. As a result, fines totaling UAH 132.2 million were assessed, which is a record figure for the past five years. A total of 8,983 fines were imposed.

This year, the average amount of the fine according to the results of inspections decreased by 2.5 times compared to 2021, amounting to UAH 14.7 thousand. For comparison, in 2020-2021, the average number of decisions on fines was about 5,800 per year, and the total amount of fines reached UAH 210 million per year.

Thus, the year 2024 was marked by record fines for violations among entrepreneurs working with excise goods, although the amount of fines compared to previous years decreased somewhat. These data indicate the strengthening of control over the activities of such entrepreneurs and the efforts of tax authorities to ensure a higher level of transparency in the market of excise goods.