The parliament of Ukraine adopted amendments to the Tax Code, which introduce the definitions of “electronic cigarettes” and “liquids used in electronic cigarettes”, as well as a separate product subgroup for these products.
Starting from January 1, 2021, for tobacco-containing products for electric heating, the excise tax rate is set at UAH 1,456.33 per 1,000 units. Annually the rate will increase by 20% and will reach 2516.54 UAH per 1 thousand units.
Liquid containers (packaging) used in electronic cigarettes will be marked with the excise tax mark. Since 2021, a tax rate of 3000 UAH per 1 liter has been established for them.
Today, such products are classified as HS Code “Tobacco and tobacco substitutes” and are taxed at a rate of 949.8 UAH per 1 kg (net).
Also, cigarillos (including cigarillos with cut ends) containing tobacco are identified in separate product subgroup with an excise rate of 1,456.33 UAH per 1 thousand units with an annual tax rate increase of 20% – up to 2516.54 UAH per 1 thousand units in 2024. The ad valorem tax rate for cigarillos is set at 12%.