Licenses for the Retail Sale of Alcohol, Tobacco, E-cigarette Liquids, and Fuel: Rules for Businesses

Retail sales of alcoholic beverages, tobacco products, liquids for electronic cigarettes, and fuel are licensed activities. Licenses are issued by the State Tax Service of Ukraine, and the right to trade arises after license information is entered into the relevant state register. Licenses are issued for an indefinite term, but entrepreneurs must make quarterly or annual payments on time and continuously comply with requirements concerning retail locations, ECR/PECR, inventory accounting, labeling, personnel, and sales to minors. The main rules are established by Law of Ukraine No. 3817-IX.

For retail license holders, it is particularly important to monitor employees' average salaries and, for Sole Proprietorships without employees, their own monthly taxable income. In 2026, the general minimum threshold is UAH 17,294, while a special threshold of UAH 12,970.50 applies under certain conditions to small retail facilities in remote locations. In addition, the electronic circulation system for alcoholic beverages and tobacco products and the electronic excise stamp will become fully operational on November 1, 2026. Businesses dealing with these products must therefore take the transition to the new traceability system into account.

Which Retail Activities Require a License?

Law No. 3817 provides for separate licenses depending on the type of goods and activity.

If an entrepreneur already holds a license for retail sales of alcoholic beverages, a separate license for cider and perry without added alcohol is not required for that location. The law also provides special exceptions for certain categories of small wine producers selling their own products.

An important exception applies to fuel: retail sales of fuel in consumer containers with a capacity of up to and including 5 liters do not require licenses for retail fuel sales or storage. This exception does not apply to ordinary filling stations, LPG filling stations, or other licensed fuel retail locations.

Licensing is tied to the retail location. If an entrepreneur has several stores, a separate license must be obtained for each location where the relevant licensed activity is carried out.

What to Do Before Submitting an Application

Before obtaining a license, a business entity must be properly registered and registered with the tax authorities. For facilities where the activity will be conducted, the requirements of paragraph 63.3 of the Tax Code concerning notification of taxable facilities to the supervisory authority must be fulfilled.

Law No. 3817 also links licensing to electronic interaction with the State Tax Service. The business entity must be able to complete electronic identification in the Taxpayer's Electronic Cabinet and communicate electronically with the tax authority. Electronic submissions require a qualified electronic signature and, where available, a qualified electronic seal.

Before applying, it is advisable to check:

• the registration and tax details of the Sole Proprietorship or legal entity;

• the accuracy of the retail location address;

• the facility details submitted to the State Tax Service;

• whether the tax system permits the intended activity;

• registered ECR/PECR devices to be used at the retail location;

• documents for the premises or other facility;

• documents relating to fuel and fuel infrastructure facilities, if the licensed activity concerns fuel.

Minimum Employee Salary and Sole Proprietorship Income Required to Maintain a Retail License

For license holders engaged in retail sales of alcohol, cider and perry, tobacco, liquids for electronic cigarettes, or fuel, Article 42 of Law No. 3817 establishes minimum average monthly employee salary thresholds. For a Sole Proprietorship without employees, the corresponding requirement applies to total monthly taxable income.

In 2026, the minimum wage established as of January 1 is UAH 8,647.

The threshold of 1.5 times the minimum wage applies if all retail locations of the business entity are located outside settlements that serve as administrative centers of regions, Kyiv, and Sevastopol, at a distance of at least 50 km, and have sales areas of up to 500 m².

For employers, the law assesses the average monthly accrued salary across the business entity rather than setting a separate minimum salary of UAH 17,294 for each employee.

If an inspection establishes noncompliance with the relevant requirement for three consecutive full calendar months while the license is valid, this constitutes grounds for terminating the license.

Requirements for Alcohol Retail Locations

Law No. 3817 defines a retail location as commercial premises or a building where payments are accepted from customers and, for distance selling, also the location from which goods are dispatched for delivery to the end consumer.

For retail sales of alcoholic beverages, the sales area must be at least 20 m². This area requirement does not apply to sales of beer, cider and perry without added alcohol, or alcoholic beverages without added alcohol produced by natural fermentation of fruits, berries, and fruit-and-berry materials, with an alcohol content not exceeding 8.5% by volume.

The retail location must comply with general legal requirements for commercial premises, and the entrepreneur must have a lawful basis for using the premises.

Storage of Alcohol, Tobacco, and Liquids for Electronic Cigarettes

Alcoholic beverages purchased for resale must be accompanied by primary documents confirming their purchase. Transfers of goods between facilities belonging to the same business entity must be documented using internal transfer documents.

For holders of retail licenses for alcohol, tobacco products, and liquids for electronic cigarettes, a storage location must be entered into the Unified Register of Storage Locations if its address differs from that of the licensed retail location.

Primary documents for goods must be retained so that their lawful origin and movement from receipt to sale can be verified during an inspection.

How to Obtain a Retail License

Application forms for licensing under Law No. 3817 were approved by Resolution No. 374 of the Cabinet of Ministers of Ukraine dated April 4, 2025.

An application may be submitted in paper or electronic form as provided by law. Electronic documents are submitted using electronic identification tools and a qualified electronic signature.

For retail sales of alcohol, tobacco, and liquids for electronic cigarettes, licenses are issued by the territorial office of the State Tax Service at the location where the relevant activity is carried out. The general decision-making period for these retail licenses is no more than 10 business days. For retail fuel sales, the period is up to 20 business days.

The right to conduct the activity is confirmed by an entry in the relevant state register. The license holder may obtain an extract from the register.

Which Licenses Can Be Issued Automatically?

Law No. 3817 provides an automatic procedure for a specified list of licenses, including:

• retail sales of alcoholic beverages;

• retail sales of tobacco products;

• retail sales of liquids for electronic cigarettes;

• fuel storage exclusively for own consumption and/or industrial processing.

Automatic licensing is based on electronic verification of the conditions defined in Article 47 of Law No. 3817. A license for retail fuel sales is not included in this list.

Documents Required for a Retail Fuel License

Law No. 3817 establishes additional documentation requirements for facilities involved in fuel operations.

Depending on the type of facility and the date it was commissioned, the documents specified in Article 43 must be attached to the application. These include documents confirming ownership or use rights to the land plot, indicating its cadastral number, and, where required by law, an extract from the State Land Cadastre.

For relevant facilities, documents confirming commissioning or technical inventory records are also taken into account. For high-risk work and equipment, a permit or declaration is required where stipulated by law. Article 43 sets special documentation requirements for bunkering vessels and specialized vehicles used to sell liquefied gas.

Retail License Fees in 2026

License fees are calculated based on the minimum wage established on January 1 of the relevant year. In 2026, the minimum wage is UAH 8,647.

Law No. 3817 establishes specific territorial conditions and exceptions for special rates in villages and settlements. In particular, the reduced rate does not automatically apply to every store merely because it is formally located in a village or settlement. Before calculating the fee, the requirements of Article 52 must therefore be checked for the particular retail location.

Licenses are issued for an indefinite term, but periodic fees must be paid on time. Failure to make the next payment is one of the grounds for terminating a license.

ECR and PECR When Selling Excisable Goods

Sales of licensed excisable products are subject to strict requirements under the law governing ECR use.

For excisable goods, the following must be programmed in the ECR/PECR in advance:

• product name;

• price;

• quantity;

• commodity subcategory code according to the Ukrainian Classification of Goods for Foreign Economic Activity (UKT ZED);

• other mandatory details required for the specific product.

When selling alcoholic beverages bearing excise stamps, the fiscal receipt must contain the excise stamp details required by law. The requirements for the format and mandatory details of fiscal receipts are established by the Regulations approved by Ministry of Finance Order No. 13.

Failure to program the name of each excisable product, including its UKT ZED code, price, and quantity accounting, in the ECR/PECR results in a financial penalty of 300 tax-free minimum personal incomes, equivalent to UAH 5,100.

For failing to process a transaction through an ECR/PECR or issue a proper payment receipt, the ECR law provides financial penalties of 100% of the value of goods for the first violation and 150% for each subsequent violation.

Inventory Accounting and Documents for Excisable Products

Holding a license does not replace the obligation to confirm the origin of goods.

Entrepreneurs must retain documents confirming the purchase, movement, and sale of products. For Sole Proprietorships, the requirement to maintain inventory records using a special form is determined by the ECR law and the Tax Code, depending on the tax system and product category.

The State Tax Service explains, in particular, that Sole Proprietorships paying single tax in groups two and three who are not VAT payers and sell only beer, cider, perry without added alcohol, table wines, and permitted fuels and lubricants in containers of up to 20 liters must use an ECR/PECR. However, under these conditions, they are not required to maintain inventory records using the special form established by Ministry of Finance Order No. 496.

This does not eliminate the requirement to hold primary documents wherever required by Law No. 3817, the Tax Code, or accounting regulations.

Online Sales of Alcohol, Tobacco, and Liquids for Electronic Cigarettes

Selling through a website, online store, or other remote channel does not exempt the seller from licensing requirements.

License holders offering beer, alcoholic and low-alcohol beverages, tobacco products, electronic cigarettes, related liquids, and other legally specified goods through e-commerce must notify the State Tax Service of the website addresses through which such sales take place. The notification procedure was established by Ministry of Finance Order No. 34 dated January 14, 2026.

For e-commerce, license holders must comply with Article 71 of Law No. 3817 concerning payment processing, sales, and delivery. Buyers must also receive confirmation of the electronic transaction and an appropriate payment receipt where required by e-commerce and ECR legislation.

Alcohol Delivery and Customer Age Verification

It is prohibited to sell alcoholic beverages, tobacco products, electronic cigarettes, and related liquids to anyone under the age of 18.

If the seller or delivery person has doubts about a buyer's age, they must request a document confirming the buyer's age. The law permits the use of relevant documents or electronic copies, including digital documents recognized by law. If the buyer refuses to confirm their age, the product must not be sold or handed over.

For an online store, the payment arrangement must also be structured correctly.

The State Tax Service explains that if a seller of spirits receives payment directly from the buyer and the delivery service merely transports the goods, the seller remains the party conducting the retail sale and must have the appropriate retail license and retail location and use an ECR/PECR. However, if the goods are transferred to another business entity for subsequent sale to the end customer in that entity's own name, with that entity receiving payment, the licensing arrangement changes: wholesale licensing requirements may arise for the first seller, while the entity selling directly to the consumer must hold its own retail license.

Restrictions on Sales of Alcohol, Tobacco, and Electronic Cigarettes

Article 71 of Law No. 3817 prohibits, among other things:

• sales of the relevant goods by persons under 18;

• sales to persons under 18;

• sales on the premises or grounds of educational and healthcare institutions, except for statutory exceptions;

• sales in specialized retail organizations, departments, and sections intended for children's products or sporting goods;

• certain types of sales in indoor sports facilities as specified by law;

• sales through vending machines;

• sales from self-service shelves, except where expressly permitted by law;

• individual sales of tobacco products, except cigars;

• street vending, sales from trays, and sales at other unauthorized locations;

• sales of cigarettes and cigarillos in violation of statutory requirements concerning the number of units per pack;

• sales in locations not designated for this purpose;

• e-commerce in violation of the special requirements of Article 71.

Local self-government bodies may establish additional restrictions on alcohol sales within their statutory powers, particularly during mass events. Businesses must therefore also consider the current decisions of the relevant local council.

Violations of the restrictions established by Article 71 may result in a financial penalty of three minimum wages. In 2026, this amounts to UAH 25,941.

Can Alcohol and Tobacco Be Sold Under the Single Tax System?

The Tax Code significantly restricts trading in excisable goods for single-tax payers in groups one through three.

Subparagraph 291.5.1 of the Tax Code prohibits such taxpayers from manufacturing, exporting, importing, and selling excisable goods but provides exceptions for retail sales of fuels and lubricants in containers of up to 20 liters and for Sole Proprietorships engaged in retail sales of beer, cider and perry without added alcohol, and table wines.

Therefore, holding a retail license does not in itself mean that the relevant product may be sold under the chosen tax system. Before starting sales, both licensing and tax restrictions must be checked.

Excise Tax on Retail Sales

Retail sales of alcoholic beverages are subject to a 5% retail excise tax.

For tobacco products, tobacco, industrial tobacco substitutes, and liquids for electronic cigarettes, the producer and/or importer of the relevant products, rather than an ordinary retailer, is liable for the 5% excise tax on retail sales.

Therefore, when configuring cash registers, prices, and tax reporting, it is important not to apply the same taxation method to alcohol and tobacco products.

Minimum Alcohol Prices and Maximum Retail Prices for Tobacco Products

Minimum wholesale release prices and retail prices established by the Cabinet of Ministers of Ukraine apply to certain categories of alcoholic beverages. Selling a product subject to this state regulation below the established minimum retail price is prohibited.

For tobacco products and other goods for which producers or importers declare maximum retail prices, the current maximum retail price must be checked before sale. The State Tax Service maintains a public service containing these prices, with information updated continuously.

Selling tobacco products above the established maximum retail price, taking into account applicable taxation rules, may result in a penalty of 100% of the value of the relevant products, but not less than two minimum wages. In 2026, the minimum penalty for this violation is UAH 17,294.

Transition to Electronic Excise Stamps

For alcohol and tobacco products, 2026 is a transitional year for the new electronic traceability system.

The following stages are provided for:

• through October 11, 2026, inclusive, the electronic system operates in test mode;

• from October 12 to October 31, 2026, users are registered, electronic accounts are created, identifiers are assigned to economic operators and facilities, and data exchange is configured;

• on November 1, 2026, all components of the electronic circulation system for alcoholic beverages and tobacco products become fully operational.

The period for ordering and using paper excise stamps has been extended until November 1, 2026. Special transitional rules established by Law No. 4698-IX and subordinate legislation apply to products manufactured or imported before the transition to electronic labeling.

Main Penalties for Retailers

Trading without a license may result not only in financial penalties for the business but also in administrative liability for responsible persons under the Code of Ukraine on Administrative Offenses. During inspections, the State Tax Service applies a financial penalty of 200% of the value of the goods, subject to a minimum of three minimum wages.

When Can a License Be Terminated?

Article 46 of Law No. 3817 contains an extensive list of grounds for terminating licenses. Key grounds include:

• a termination application submitted by the license holder;

• termination of a legal entity or cancellation of the state registration of a Sole Proprietorship's business activity;

• submission of inaccurate information in cases specified by law;

• failure to make the next license payment;

• failure to comply with electronic identification and electronic communication requirements of the supervisory authority;

• violations of rules for labeling and circulation of excisable goods as specified by law;

• sales to persons under 18 and other violations for which Law No. 3817 expressly provides licensing consequences;

• failure to meet the minimum average employee salary or income requirement for a Sole Proprietorship without employees for three consecutive full calendar months.

Entrepreneurs should note that electronic excise stamp legislation changes some grounds for license termination from November 1, 2026. Accordingly, procedures for monitoring inventory, labeling, and traceability of alcohol and tobacco products must be aligned with the electronic system before it becomes fully operational.

Excise Stamp Accounting, PECR, and Excisable Goods Reporting in Torgsoft

Torgsoft allows businesses to organize sales accounting for goods bearing excise stamps. During sales or returns, the software allows users to scan the excise stamp on each product unit and monitor repeated use. Stamp uniqueness checks can be configured within an individual document, for a particular product, or across the entire retail chain. If a stamp is scanned again, the software identifies the document in which it has already been used. After a properly processed return, the stamp may be used again in a subsequent sale.

For entrepreneurs preparing excise reporting, Torgsoft offers the additional «Excise Tax Declaration» feature. It provides a list of excisable products sold during the selected period and allows data to be exported in XML format. To generate the report correctly, products must be configured under the relevant categories — tobacco, spirits, beer, or wine products.

Torgsoft also supports software ECR operation: the software provides PECR creation and configuration, fiscal sales, and related cash register operations. These features help organize internal accounting and fiscalization but do not replace an entrepreneur's obligations to obtain a license, determine the correct UKT ZED code, retain primary documents, register business facilities with the State Tax Service, and comply with the electronic circulation system requirements for excisable goods.

Official Sources

1. Law of Ukraine «On State Regulation of the Production and Circulation of Ethyl Alcohol, Alcohol Distillates, Bioethanol, Alcoholic Beverages, Tobacco Products, Raw Tobacco, Liquids Used in Electronic Cigarettes, and Fuel» No. 3817-IX — particularly Articles 1, 16, 17, 21, 23, 28, 39, 41–47, 52–54, 71, and 73.
   Law No. 3817-IX on the website of the Verkhovna Rada of Ukraine

2. Tax Code of Ukraine No. 2755-VI — paragraph 63.3, Articles 212–215, and subparagraph 291.5.1 concerning simplified taxation restrictions for excisable goods.
   Tax Code of Ukraine

3. Law of Ukraine «On the Use of Registrars of Settlement Transactions in Trade, Catering, and Services» No. 265/95-VR — Articles 3 and 17, ECR/PECR requirements and liability.
   Law No. 265/95-VR

4. Resolution of the Cabinet of Ministers of Ukraine No. 374 dated April 4, 2025 — application forms for licensing the production and circulation of alcohol, tobacco products, liquids for electronic cigarettes, and fuel.
   Cabinet Resolution No. 374

5. Order of the Ministry of Finance of Ukraine No. 13 dated January 21, 2016 — Regulations on the Format and Contents of Payment Documents and Electronic Payment Documents.
   Ministry of Finance Order No. 13

6. Order of the Ministry of Finance of Ukraine No. 34 dated January 14, 2026 — procedure for submitting website addresses used for electronic sales of goods regulated by alcohol and tobacco legislation.
   Ministry of Finance Order No. 34

7. Law of Ukraine No. 4698-IX — changes to the implementation timetable for the electronic circulation system for alcoholic beverages and tobacco products and electronic excise stamps.
   Law No. 4698-IX

8. Law of Ukraine «On the State Budget of Ukraine for 2026» No. 4695-IX, Article 8 — minimum wage of UAH 8,647 from January 1, 2026.
   Law on the State Budget of Ukraine for 2026

9. Resolution of the Cabinet of Ministers of Ukraine No. 957 dated October 30, 2008 — minimum wholesale release and retail prices for certain alcoholic beverages.
   Cabinet Resolution No. 957

10. Law of Ukraine «On Electronic Commerce» No. 675-VIII, particularly Article 11 — electronic contracts and confirmation of electronic transactions.
    Law No. 675-VIII

11. Code of Ukraine on Administrative Offenses, particularly Articles 156 and 164 — administrative liability for violations of excisable goods sales rules and conducting licensed activities without a license.
    Code of Ukraine on Administrative Offenses on the website of the Verkhovna Rada