Violation of the rules of trade in tobacco products

Tobacco products in Ukraine are excise goods, and their sale requires prior obtaining of a license for such activity. If you are just planning to start a business, seek advice from lawyers who specialize in business law. You will find such experts at the Prikhodko & Partners law office.

How we can be useful in the matter of obtaining a license?

We provide our services both face-to-face and remotely. So you can contact us from anywhere in the city without the need to travel to our office if you live far away. We are ready to perform a representative function wherever it can be done without your personal presence and help so that the start of your entrepreneurial activity that requires licensing is successful.

Indeed, when an entrepreneur turns to lawyers in advance, he builds a licensed activity from the beginning in accordance with current legislation. Therefore, in this way, he naturally protects himself from penalties.

About the license for the sale of tobacco products, it is worth knowing that:

• It is issued for a year.
• Payment for the license can be made in a quarterly format.
• After submitting all the necessary documents, the license is issued within 10 days.

You can issue a license not only yourself, but also through a representative. So when you entrust this work to qualified lawyers, you free yourself from spending time and effort.

How DPS representatives check compliance with tobacco trade rules?

As for the mechanism of actual verification of compliance with such rules, it is covered in Article 80 of the current Tax Code of Ukraine. It is worth highlighting the following key theses::

• warning of the taxpayer is not necessary for the actual inspection;
• the decision of the manager or an authorized person representing the controlling body must be duly formalized.

As for the grounds for inspection, they are as follows:

• detection of information regarding a possible violation of the legislation by the taxpayer, which became known during the inspection of other taxpayers;
• receiving information about such possible violations from representatives of local self-government or state authorities;
• receipt of such information from the consumer (it must be in writing);
• non-submission of tax reporting provided by law in the period when it is established.

Clause 20. 1. 9 of the PKU specifies what authorized representatives of the control body may demand from the taxpayer during the inspection. It is about the inventory of fixed assets, tangible assets, funds, removal of residual assets and cash.

What are the most frequent violations during the sale of tobacco products?

Among the common violations are the sale of tobacco products without excise tax stamps according to the established pattern and sale at prices that are higher than the maximum retail prices.

What a taxpayer needs to know about the verification procedure?

It is important that the persons performing the actual verification are able to show the taxpayer:

• referral, which directs them to its implementation;
• a copy of the order regarding the inspection;
• own official certificates, because these documents serve as confirmation of their authority.

The results of the inspection are recorded by tax officials in the relevant act or certificate. If you do not agree with the conclusions of the inspection, you have 10 days to formulate and submit an objection to the supervisory authority. Thus, this term is quite limited.

Taking a risk…

Therefore, violations of the rules of trade in tobacco products are subject to sanctions within the framework of administrative law. In order not to have unnecessary problems, contact specialists in time who are able to help avoid them, or – to solve them with a minimum of negative consequences, if the situation has already happened.

We will provide consulting support, help standardize permit documentation, and be able to defend your rights before the DPS if representatives of this service violated them during the inspection or unfairly covered its result.