Why e-Excise matters?
Dealing with excisable goods like tobacco, alcohol, and e-liquids can be complicated. There is a strong movement toward using digital systems, which would provide better control and transparency.
In Ukraine, this is evident with the new e-Excise system. Producers, importers, distributors, and retailers need to understand this system and adjust their operations accordingly. Failing to meet these requirements can lead to fines between 10% and 100% of the value of unmarked products.
To avoid penalties and ensure seamless business operations under the new regulatory framework, industry experts should start implementing a comprehensive e-Excise transition strategy immediately. This preparation phase should include:
- Assessing the volume of excise products handled by your company
- Determining whether to develop in-house integration capabilities or engage external specialists
- Establishing a timeline for system implementation and staff training
DataMatrix-based electronic coding system
Each excise product is assigned a unique code containing important information such as manufacturer details, date of manufacture, batch numbers and distribution routes. This digital identification system will become mandatory and will eventually replace traditional paper excise documentation.
Real-time monitoring
The system continuously records and registers data on the movement of goods as they pass through the distribution network. Automatic tracking occurs at every stage from production facilities to retail outlets, allowing regulators to instantly monitor product location and identify any compliance issues.
Business system integration
Organisations are required to connect ERP and accounting systems with state tax service digital platforms. This integration facilitates seamless data exchange, minimises manual data entry, reduces reporting errors and ensures regulatory compliance without creating additional administrative costs.
Key integration challenges that may arise
- System complexity. Navigating the Ukrainian e-Excise system presents significant challenges, as its documentation spans over 400 pages, contains more than 5,000 technical requirements, and involves approximately 50 different integration points, requiring a clear mapping to business workflows.
- Modernisation of technological systems. Companies may need to update their financial and inventory management systems to comply with electronic excise control. This typically requires software modifications, creating new data channels, and integrating different platforms, which can result in significant costs and lengthy implementation times.
- Requirements for investment in equipment. The implementation of electronic excise taxation requires specialised equipment for product identification and tracking. Companies need to budget for thermal printers for excise labels, mobile scanners for QR code verification, and devices for real-time data transfer.
Read more about tax software in our blog post: Understanding Excise Tax Software: Features, Benefits, and Implementation Case Study
What are the e-Excise implementation essentials?
Operator registration and user management
First, businesses must complete system registration and establish comprehensive user training programs. Recognise that you are an economic operator. Get comfortable using the electronic cabinet, which acts as your digital control center. This is where you can manage company data, check licenses, and connect warehouses. The electronic cabinet is also important for integration because it helps you create an API token.
Operational process adaptation
Market operators must ensure that the processes of obtaining and applying excise stamp codes and registering the movement of excise goods in the information system are carried out in accordance with the requirements of the law.
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