The company acquires the fuel for coupons from the seller-payer of value added tax (hereinafter − VAT). The excise tax is included in the fuel price (the price highlighted in a separate line in the invoice). The company is not the excise tax payer. Fuel is used by the company only for its own purposes. How coupons (fuel) should be entered into account properly? Should be the excise tax included into initial cost?
According to the norms of Instructions for use of the Plan of accounting of assets, capital accounts, liabilities and business transactions of enterprises and organizations, approved by the order of the Ministry of Finance of Ukraine of 30.11.1999, № 291, on subaccount 203 “Fuel”, the presence and movement of fuel should be entered into account, including paid coupons for oil and gas.
Thus, paid coupons for fuel and lubricant materials (hereinafter − fuel and lubricants) should be taken into account on the very subaccount.
In accordance with the Accounting Regulations (hereinafter − Accounting Regulations) 9 “Inventories”, the initial value of inventories acquired for payment is their cost, which consists of the following actual costs:
- the amount which shall be paid in accordance with the contract to the supplier (seller), net of indirect taxes;
- the amount of import duty;
- the amounts of indirect taxes in connection with the acquisition of inventories, which are not compensated to the company/institution;
- transportation and procurement costs (expenditures for inventories preparation, payment of tariffs (freight) for the cargo handling works and transportation of inventories by all by all means of transportation to the place of use, including the cost for transportation risk insurance of inventories);
- other expenses directly related to the acquisition of inventories and bringing them to the state in which they are suitable for the intended purpose.
Thus, the initial cost of inventory (in this case − coupons) includes, in particular, indirect taxes, which are not compensated to the company.
According to the paragraphs 14.1.4 of the Tax Code of Ukraine of 02.12.2010, № 2755-VI (hereinafter − TCU), the excise tax is an indirect tax for the consumption of certain types of goods (products) identified as the excisable by TCU, which is included in the price of such goods (products) .
In accordance with paragraphs 212.1.15 of TCU, the payer of the excise tax is a person who sells fuel.
Realization of fuel for the purposes of sec.VI of TCU is any transactions for the transfer (release, shipment) of fuel in the customs territory of Ukraine on the basis of purchase and sale contracts, exchange, delivery, gift, commission, commitment (including transfer to the commission/trust realization), guarantee, other economic and civil contracts or by the court, another competent public authority or local government for a fee (payment) or without it, which provide for the transfer of ownership or the right of disposal, as well as the transfer of (release, shipment) of fuel on the basis of agreements on the production of raw materials of the customer. Transactions for the transfer (release, shipment) of fuel in the customs territory of Ukraine on the basis of storage contracts are not considered to be the realization of fuel (paragraphs 14.1.212 of TCU).
According to the paragraphs 212.3.4 of TCU, persons that carry out the realization of fuel are the subject to mandatory registration as payers of the tax to regulatory authorities at the location of legal entities, the place of residence of individuals - entrepreneurs before the start of the realisation of fuel.
In this case, the company should not be registered by the excise tax payer, because the purchased fuel is used only for its own purposes.
The amount of paid excise tax should not be compensated to the company-buyer. Therefore, the excise tax should be included in the initial cost of purchased coupons, which are reflected in subaccount 203. It should be noted that VAT is compensated to the company and accordingly it should be included in the initial cost of inventories.
The same position with respect to the excise tax is set out in the letter of the Main Directorate of the State Fiscal Service of Ukraine in Rivne region of 22.04.2016, № 914/10/17-00-15-02-10. It stated: “According to paragraph 9 of Accounting Regulations 9 “Inventories”, approved by order of the Ministry of Finance of Ukraine of 20.10.99, № 246, with amendments and additions, the amount of retail excise duty is included in the initial cost of inventories when their entering into account, and then when writing off inventories in the initial cost of the amount of excise tax should be included in costs”.
