Article describes the mechanism of the state support of agricultural producers by means of mortgaging purchases of grain in Agrarian fund of Ukraine on the basis of the Law of Ukraine No. 1877 from 24.06.04. About the state support of agricultural industry of Ukraine. The order of the taxation of mortgaging purchases and their reflection in accounting is described.
Such purchases – the mechanism of the state support of agricultural producers. That they themselves represent also what order of their taxation and reflection in accounting, you learn from this consultation.
Concept essence
The order of carrying out state mortgaging zakupok grains is regulated by Law No. 1877 Art. 12.
This mechanism of state support consists in a predoyostavleniye of the budgetary loans to producers of grain on the security of such grain. How it works?
Let’s say the agricultural producer wanted zarabotat on operations on grain realization. However at present market cost of grain doesn’t suit it. Besides he assumes that in the future the price on zeryono will grow. Under the Law No. 1877 the producer has a possibility to carry out mortgaging sale of grain. It means that behind it the ownership right on grain and the right to obtain on demand grain during opredeyolenny the term contract remains. Having waited rise in prices for grain, the producer can sell it on more vyyogodny conditions, however, thus it should return summu the budgetary loan and pay for using of.
The period of carrying out mortgaging purchases – since July 1 of the next year flowing till April 1.
Granting the budgetary loans
The order of granting to agricultural producers of byudyozhetny loans with application of a mode of the state mortgaging purchases of grain is approved by the Resolution No. 705 (see "BALANS-AGRO", 2008, No. 16).
The budgetary loans on the security of grain are provided by Agrarian fund. To obtain a loan, it is necessary:
1) to transfer grain on the security of which the loan, on storage to a grain warehouse (on an elevator, grain bases, the hlebopriyemny, flour-grinding and formula-feed enterprises undertakes);
2) to conclude the credit agreement with Agrarian fund.
The grain warehouse which has accepted on storage grain, eats away to the agricultural producer warehouse dokumenty (the simple or double warehouse certificate or the warehouse receipt).
On the basis of these documents the producer of grain concludes the credit agreement (its standard form is approved by the Order No. 318) with Agrarian fund. Being guided by the specified contract, fund predostavlyaet I will jam.
The expenses connected with mortgaging purchase of grain, including cost of its delivery to a grain warehouse, storages and insurance, the agricultural producer compensates at own expense.
Besides, the enterprise should pay and for a polyyozovaniye in the budgetary loan. Such payment ustanavlivaetsya at level of 50 % from the average percent on the bank credits which provided for the term up to 12 calendar months and have been completely provided with pledge. Such average percent is defined as of June 1 of the current fiscal year.
According to the Law No. the 1877th size of a payment for polzovayony a loan should be published not later than 15 calendar days prior to the beginning of the annual period of mortgaging purchases (at date of number signing in the press it is not published).
Attention! Have no right to the budgetary I will jam selyyokhozproizvoditel, which (Law No. 1877 item 12.3):
• have an outstanding duty on taxes and fees, including on social and pension contributions;
• have arrears on the budgetary loans or the credits guaranteed by the state;
• of sanitation, bankruptcies or likyovidatsiya is in process;
• have arrears on rent payment for ground shares;
• aren’t agricultural enterprise in understanding of Art. 81 of the Law on the VAT. According to this norm any treats agricultural enterprises legal or the individual, osushchestvlyayuyoshchy an entrepreneurial activity in the sphere of agricultural industry.
Let’s note one more important nuance. To obtain I will jam it is possible only on the security of grain which is objyoekty the state price regulation.
For 2008/09 marketing year only two cultures belong to such objects from among the grain: wheat (including wheat and rye mix – meslin) and a rye (according to the Resolution No. 36).
The size of the budgetary loan is defined in predelax the means provided in the state budget, but 80 % of cost of grain, rasschitanyony proceeding from the minimum purchase price aren’t higher.
The agrarian fund will publish data on the sizes of loans in mass media.
For 2008/09 marketing year the minimum and maksiyomalny prices for grain are established by the Order No. 96.
Let’s show in the table the sizes of the minimum purchase price of grain and the maksiyomalny sizes of the budgetary loan calculated on its basis.
The credit agreement consists for term, opredelenyony the parties in the contract, but no more than for one marketing period.
The agrarian fund should list to a selkhozproizvoyoditel I will jam for three operational days after signing of the credit agreement.
Return of loans
The main sum of the budgetary loan and payment for its use is repaid by uniform payment in time, established in the credit agreement (Zakoyon No. 1877 subitem 12.2.4). Also early repayment of the specified sums is allowed.
After complete repayment of the sum of a loan and a payment for its use to the agricultural producer the simple or double warehouse certificate or the warehouse receipt comes back. On the basis of such documents grain is released from under pledge.
Pay attention: the producer can not return at all the sum of the budgetary loan to Agrarian fund. Then after the loan repayment period:
• grain carries over the state and is enlisted in structure state prodrezerva at the prices operating at the moment of its assessment before pledge;
• mutual obligations of the agricultural producer and Agrarian fund are considered completely executed, so, the producer of grain shouldn’t pay for using a loan.
Taxation
Profits tax
Grain transfer on storage. At this operation there is no transition of an ownership right to grain therefore peredacha grains on a warehouse isn’t operation of sale of the goods (item 1.31 of the Law on profit). Therefore, the gross revenue of agricultural enterprise doesn’t increase (subitem 4.1.1 of the Law on profit).
Receiving the budgetary loan. For taxation on profit the means received as a loan on the security of grain, are debt obyazatelyyostvo. Thus the sum of a loan doesn’t join in valoyovy the income as its return is provided. And here the means paid to Agrarian fund for a polyyozovaniye by the budgetary loan, the agricultural producer can carry on gross expenses, after all they are suffered in connection with implementation of economic activity (subitem 5.5.1 of the Law on profit).
In the gross can be included and the expenses connected with receiving the budgetary loan (on certification, delivery, storage and grain insurance) as they are carried out during carrying out economic activity (subitem 5.2.1 of the Law on profit).
Let’s notice that the budgetary loan in this case isn’t the returnable financial help as for using it provided a payment. Means, norms of subitem 4.1.6 concerning inclusion of such help in a gross revenue aren’t applied.
Grain return. At grain release from under pledge and receiving it from a grain warehouse of nikayoky tax consequences doesn’t arise – such return isn’t operation on grain acquisition. The ownership right on it both earlier, and belongs now to agricultural enterprise.
If the loan doesn’t come back. In this situation the ownership right passes to grain to the state, and on a loan repayment expiry date the enterprise should carry grain cost in structure of a gross income as operation of sale of the goods (subitem 4.1.1 of the Law on profit) is available.
The gross revenue joins the sum calculated isxodya from cost of grain, defined by its transfer on storage (application of the usual prices in this case isn’t provided by the Law on profit), without the VAT.
VAT
Grain transfer on storage. As it was already told above, at this operation of transition of the right of a sobstvenyonost on grain isn’t present, therefore the tax obligations on the VAT aren’t charged – there is no taxation object.
At the same time the enterprise can include in the tax credit of the sum the VAT paid at implementation rasxodov, connected with mortgaging purchase (on insurance, delivery, storage, etc.) as they are suffered for implementation of economic activity a predyopriyatiya (subitem 7.4.1 of the Law on the VAT).
Receiving the budgetary loan. The obtained loan doesn’t influence the account on the VAT as thus there was no delivery of the goods or services.
Grain return. At return of grain and byudzhetnogo no features on an oblozheyoniya of the VAT are present a loan.
If I will jam doesn’t come back. In case the predyopriyaty decided not to return I will jam, grain carries over the state. It means that for the date provided by the contract for return of grain,
the agricultural producer should add the tax obligations on the VAT.
Taxation basis is contractual cost of grain, but not below the usual prices. Then there is a question: for what date it is necessary to define the usual price – the date of receipt of a loan or transition of the right of a sobyostvennost to grain? We consider that it is necessary to define the usual price for date of transition of an ownership right, that is that which is provided by the contract for vozvrata grains. After all for this date operation on pledge of grain got the status of operation on its delivery.
FSN
Grain transfer on a warehouse – it not realization therefore the grain transferred to storage isn’t considered realizoyovanny and isn’t considered when filling Calculation
specific weight from realization of agricultural production of own production and products of its processing in total amount of a gross income.
However if the agricultural enterprise decides not to return I will jam, for the date provided by credit dogovoyory for return of grain, it is considered realized. Means, when filling the mentioned Calculation it will be necessary to consider the income of realization of such grain.
Accounting
The grain transferred to a grain warehouse (there is no ownership right transition), from balance isn’t written off.
It it is possible to transfer to the separate subaccount, for example 2712 Wheat grain on responsible storage.
Besides, the grain accepted on storage is necessary for reflecting at the mortgaging prices and on zabalansovy schete 05 Guarantees and providing provided.
The accounting of operations on mortgaging purchase of grain we will consider on conditional numerical examples.
Example 1
The agricultural enterprise concluded with Agrarian fonyody the credit agreement about transfer on a grain warehouse of 220 t of grain and receiving the budgetary loan by I in the sum of 170 000 UAH. After period of validity of the credit agreement I will jam it was returned, and grain is received back.
(UAH.)
Example 2
The agricultural enterprise concluded with agrarian fund the credit agreement about transfer on a grain warehouse of 220 t of grain and receiving the budgetary loan in the sum of 170 000 UAH. After period of validity of the credityony contract the enterprise I will jam didn’t return and grain carried over the state.
(UAH.)
List of documents
1. The law No. 1877 – the Law of Ukraine from 24.06.04 of No. 1877 About the state support of agricultural industry of Ukraine.
2. The resolution No. 36 – the resolution KMU from 06.02.08 of No. 36 About the approval of the list of objects of the state price regulation for 2008/09 marketing year.
3. The resolution No. 705 – the resolution KMU from 06.08.08 of No. 705 About introduction of a mode of the state mortgaging purchases of grain.
4. The order No. 96 – Minagropolitika Ukrainy’s order from 27.02.08 of No. 96 Questions of activity of Agrarian fund in the orgayonizovanny agrarian market in 2008/09 marketing year.
5. The order No. 318 – Minagropolitika Ukrainy’s order from 15.07.05 of No. 318 About the statement of a form of the credit agreement about the budgetary loans within a mode of the state mortgaging purchases.