Consultation concerning inclusion of services in the general declaration on the VAT is given at definition of the right to be the payer of FSN.
Question-answer
The agricultural enterprise renders agricultural services to the enterprises and individuals. Because since May 25, 2006 such services don’t join in the income of agricultural products realization at definition of the right to be the payer of FSN, whether it is necessary to include them in the general declaration on the VAT?
No, agricultural services still in the special declaration on the VAT which is represented according to item 11.29 of the Law on the VAT.
Let’s explain the stated.
According to item 11.29 of the Law on the VAT of agricultural enterprise don’t pay the VAT in the budget by delivery of the goods (services) of own production. As we see, uslugi own production (by which granting the VAT in the budget it is not paid) in the Law on the VAT are allocated separately.
However it is necessary to take into consideration the following.
To use a special mode of payment of the VAT (on the basis of item 11.29 of the Law on the VAT) only those agricultural enterprises at which for last year (in our case of the 2006th) the sum received from realization of agricultural products of own proizyovodstvo and products of its processing, makes not less than 50 % of total amount of a gross income have the right.
And as services aren’t agricultural products, at definition of a right of use by a special mode (item 11.29 of the Law on the VAT) selskokhozyaystvenyony services don’t join in the income of realization of agricultural products.
So, in spite of the fact that agricultural uslugi now don’t join in the income of agricultural products realization for definition of the right to be the payer of FSN, it at all vliyaet on reflection of such services in the declaration on the VAT.
(On Balans-Agro newspaper materials).