Ukraine Pushes Digital Excise Tracking Launch to July 1, 2027

Ukraine has pushed back the launch of its digital excise tracking system for alcohol, tobacco products and e-cigarette liquids until July 1, 2027, after a key industry participant said a fully functional offline application is still not ready for use in a market affected by power and communications disruptions.

The delay follows a vote in the Verkhovna Rada on Oct. 13 to approve Bill No. 15532, which postpones the start of e-Excise for a second time, from Nov. 1, 2026, to July 1, 2027. The system is intended to trace excisable goods through the supply chain and will eventually cover the alcohol and tobacco industries, along with distributors and retailers.

Yulia Yushchenko, regulatory affairs manager at JTI Ukraine, told Interfax-Ukraine that the unresolved issue is the lack of a fully functional offline version of the application. She said stable offline operation is critical in Ukraine because businesses still face interruptions in electricity supply and communications. In those conditions, a system that depends on constant connectivity could create problems for companies trying to record the movement of goods and comply with tax rules.

At the same time, Yushchenko said the core functionality of the state platform being developed by the Ministry of Digital Transformation is about 99% complete. She said JTI Ukraine had already taken part in end-to-end testing of the system with a distributor and a retail chain, including checks on the physical movement of products, and that the issues identified during that process were resolved.

Even so, she said it is too early to say the broader market is ready. According to her, only three entities took part in the testing, while more than 54,000 economic operators began preparing for the system from the start. That gap suggests that the pilot work completed so far may not fully reflect the challenges that could arise once the platform is used across the market.

For producers, distributors and retailers of alcoholic beverages, the new timetable could change compliance planning and the pace of investment in software, equipment and staff training. It may also give businesses more time to adapt their operations before digital traceability becomes mandatory, though much will depend on when the offline tool is completed and how widely the system is tested before the new launch date.

The e-Excise project is being implemented by the Ministry of Digital Transformation together with the Ministry of Finance and the State Tax Service, in cooperation with the parliamentary committee on finance, tax and customs policy. According to Interfax-Ukraine, support measures tied to the rollout are being carried out under the Digitalization for Growth, Integrity, and Transparency project, known as UK DIGIT, which is implemented by the Eurasia Foundation and funded by UK International Development, with the Eastern Europe Foundation as a partner.

The mobile applications and website for e-Excise were developed under the EGAP program, which is implemented by the Eastern Europe Foundation with support from Switzerland. Ukrainian authorities have presented the system as a tool to create more equal conditions for legal businesses and to secure stable budget revenue by improving control over excisable goods.