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Attorney. Specialist in commercial and labor law. Over 16 years of experience in legal support of businesses - debt recovery, contract enforcement, recovery of damages, commercial property and lease disputes.
License for the sale of tobacco products: cigarettes, electronic cigarettes, vapes
In Ukraine, the activity of trading in tobacco products is subject to mandatory licensing. According to current legislation, tobacco products include cigarettes, cigars, vapes. Such products are excisable goods, and taxation of their sales contributes to the replenishment of the state budget, which also plays an important role. The main provisions on licensing the sale of tobacco products are defined in the Law of Ukraine № 3817-IX dated 18.06.2024.
License for the sale of tobacco products: types and their characteristics
License for retail trade in tobacco products
This license gives the entrepreneur the right to sell directly to citizens (end consumers). Retail trade can be carried out through various outlets, such as shops, kiosks, supermarkets, and catering establishments, subject to compliance with the restrictions established by law. Most often, those who wish to start a business in the field of circulation of excisable goods submit a request for a single license for the sale of tobacco and alcohol.
License for wholesale trade in tobacco products
A wholesale trade license gives the right to purchase, store and further sell tobacco products to other business entities that have a license for retail trade in the relevant products. Wholesale trade involves significant volumes of purchase and sale transactions, and the restrictions on the entrepreneur are more stringent, taking into account the specifics of such activities. There are also strict rules regarding the standards for storing tobacco products and products in the licensee’s warehouses. You can learn more by receiving legal advice from one of the qualified specialists of the company “Prikhodko & Partners”.
Who can obtain a license to sell tobacco products?
Requirements for the applicant
A business entity can apply for a license if:
- firstly, it is officially registered in Ukraine as an individual entrepreneur or legal entity (with KVED 46.17, 46.35, 46.39, 47.11, 47.21, 47.26 or 47.81);
- secondly, it has a specific place of trade located in a separate commercial premises, for which the lease right (under a lease agreement) or the right of private ownership (under a purchase and sale agreement, donation, certificate of acceptance of inheritance, etc.) has been registered with the tax authorities as an object through which activities with excisable goods are carried out;
- thirdly, has cash registers (CVR) or has transaction books, which must record revenue and sales volumes of goods in general;
- fourthly, undertakes to develop an effective system for checking the quality of products (including packaging);
Important to know: The sale of tobacco products is prohibited in premises not adapted for this purpose and on their territories (educational, medical institutions, dormitories, places for holding sports competitions, etc.)!
Documents required for obtaining a license
A business entity must prepare and submit to the State Tax Service of Ukraine (hereinafter referred to as the STS) a certain package of documents:
- an application according to the established form;
- a copy of the certificate of state registration of an entrepreneur (extract from the Unified State Register);
- a copy of a document confirming the right to use or own a place for trading;
- an original payment order, receipt for payment of the state duty for issuing a license;
- a power of attorney for a representative (if necessary).
The application and the documents attached to it can be submitted to the territorial body of the STS by the applicant in person or sent by registered letter with a description of the attachment by postal means. There is also an option to send by e-mail or fill out an online request in “Diya”. The applicant is responsible for the accuracy of the information and the validity of the documentation that he submits. The licensing authority, as a general rule, considers his request within ten working days and sends the appropriate decision by email.
Cost of a license to sell tobacco products
In Ukraine, obtaining a license involves paying an administrative fee in one of the following amounts:
- 2,000 hryvnias per quarter – for each place of trade located within cities (or for those that have trading floors with an area of more than 500 sq. m);
- 250 hryvnias per quarter – for each place of trade located in villages and settlements;
Late or incomplete payment of the quarterly payment for a license to sell tobacco products may lead to its suspension or full cancellation.
To summarize, in Ukraine, trade in tobacco products, such as cigarettes, electronic cigarettes and vapes, is subject to licensing and involves obtaining one of the proposed permits – for retail or wholesale trade, respectively. Entrepreneurs who meet a number of requirements, including the presence of a specific place of trade, RRO equipment, etc., can obtain a license. The sale of tobacco products in places and territories not adapted for this purpose (schools, hospitals, sports grounds, etc.) is prohibited.
Tobacco sales license requires the preparation of proper documents, timely payment of license fees, and the ongoing implementation and updating of a proper quality control system for product packaging, importer, etc. Lawyers Prikhodko and Partners provide a legal support service for businesses, which also includes the service of obtaining the appropriate license. Leave a request, find out the cost of a lawyer, and obtain a license as soon as possible!
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