Section III of the Tax Code of Ukraine (hereinafter - TCU) does not provide any special regulations on cost accounting for fuel and lubricants. So fuel costs could be depreciated according to accounting regulations. According to Accounting Standards 16 “Expenditures” the fuel costs are correlated to vehicle amortization expenses, where the fuel has been burnt (for example, if the car is used for the purposes of sales – the costs are referred to marketing costs – DO 93 “Marketing expenditures”).
It should be noted that Accounting Standards do not include any requirements for rationing of depreciation of material resources (including fuel).
Before 01.01.15 the tax authorities insisted in their explanations that depreciation of fuel and lubricants for the purpose of tax accounting should be implemented in accordance with actual cost of used fuel inclusive of data on mileage, determined on the basis of motor vehicle trip ticket, and fuel and lubricants consumption norms for motor vehicle, approved by the Ministry of Transport of Ukraine of 10.02.1998, № 43 (hereinafter - the Order № 43).
The fuel depreciation, when car use, is commented today in the letter of the SFS of Ukraine of 09.06.2015, № 11999/6/99-99-19-01-01-15.
It is stated among other things that depreciation of fuel and lubricants is carried out based on data on mileage and fuel consumption norms approved by the Order № 43. But according to para.5 of Accounting Standards 16 expenses are recorded in the accounting records complete with attrition of assets or increase in liabilities.
And the most interesting statement of tax authorities: “... excess of fuel consumption over a linear rate should be carried out in accordance with the accounting regulations based on the relevant document, approved by the company. And Section III of the Code does not provide the adjustment of financial result before imposition of tax on the amount of excess of fuel consumption over a linear rate.
Therefore, today, the fuel could be depreciated based on the actual fuel data. If the fuel consumption norms are not established in the Order № 43, it is necessary to approve them independently on the basis of indicators of vehicle registration certificate or apply to specialized agencies for relevant calculation of norms for fuel consumption by vehicle. Such approved norms could help to control fuel costs per each individual car.
Nota Bene, fuel should be depreciated after making out relevant primary documents. Today we recommend issuing motor vehicle trip tickets. The current legislation does not provide any standard form of motor vehicle trip ticket. Therefore, a company is entitled to use suitable form for accounting of such primary document, approved by the Order on accounting policy of the company, subject to the availability of all features of primary document, information in it about business transaction and confirmation of its implementation.
