Ukraine launches 'e-Excise' in 2026: how the digital system will combat the shadow market

Introduction of the 'e-Excise' system

According to ХВИЛЯ: Ukraine loses over 30 billion hryvnias due to the illegal alcohol and tobacco market. In 2026, the country will introduce the digital control system 'e-Excise', which will replace paper excise stamps with electronic ones featuring a unique DataMatrix code. This decision aims to reduce the scale of illegal trade and increase revenues to the state budget.

The 'e-Excise' system will start operating in Ukraine on November 1, 2026, after three phases of preparation. The testing environment is scheduled to launch in August 2026, with user registration beginning in October 2026. The Ukrainian law No. 3173-IX, which regulates the implementation of this system, was signed in the summer of 2023. Initially, the system launch was planned for January 1, 2026, but the timelines were reviewed.

Impact on the budget and market

According to data, the share of the illegal tobacco market in Ukraine reached 17.8% in 2025, with annual budget losses from the illegal tobacco market estimated at 26.5 billion hryvnias. In the European Union, the 'Tobacco Track&Trace' system has been in operation since 2019, and in its first year of operation, 600 million cigarettes were brought out of the shadows.

The main goal of the reform, according to Zoriana Stetsyuk, is the complete replacement of paper excise stamps with electronic ones featuring a unique DataMatrix code.

The introduction of the 'e-Excise' system will be an important step in the fight against the shadow market, which, in turn, could significantly improve the financial situation in the state.

The implementation of the electronic control system 'e-Excise' in Ukraine is a crucial stage in combating the illegal alcohol and tobacco market, which causes significant financial losses to the state budget. The introduction of a new system, which has already shown its effectiveness in European Union countries, could act as a catalyst for reducing the scale of shadow trade in Ukraine and increasing state revenues. It may also contribute to the creation of a more transparent market, which, in turn, will positively affect the economic situation in the country.