GNAU letter from 06.11.07g is published. No. 22539/7/16-1517 – 23 concerning legitimacy of inclusion of operations regulated by the Law of Ukraine About a value added tax in the special declaration on the VAT in a form No. 1.
GNAU letter from 06.11.07 of No. 22539/7/16-1517-23
The public tax administration of Ukraine considered the letter <…> concerning legitimacy of inclusion of operations which are regulated by subparagraph 6.2.6 of article 6 of the Law of Ukraine About a tax on dobavlenyony cost, in the special declaration on the VAT in a form No. 1 and reports.
The law of Ukraine About a value added tax for agricultural producers predusmotrena a zero rate of a tax on operations on delivery to the processing enterprises of milk and meat in live weight.
Besides, by point 11.21 of article 11 of the Law of Ukraine About a value added tax it is provided that the sum of a value added tax which is subject to payment in the budget agricultural enterprises of all forms of ownership for realiyozovanny them milk, cattle, a bird, wool, and also for dairy production and the meat products made in own processing shops, completely remains at the disposal of these selskokhozyaystvenyony enterprises and goes on support of own production of cattle-breeding production and poultry farming production.
Thus mentioned point doesn’t establish any dependence in the accounting of these operations from a rate of a tax which is applied at realization of the specified types of production, from the direction of its realization.
The resolution of Cabinet council of Ukraine from 28.03.07 of No. 596 from an Order approved as a postanovyoleniye of Cabinet council of Ukraine from May 12, 1999 of No. 805 About the Order of charge, payments and uses of the means directed for payment of grants to selskoyokhozyaystvenny producers for put by them to the processing enterprises milk and meat in live weight, excluded the norm, allowing to carry the VAT sum on goods purchased (to works, uslugam), connected with production of milk and meat in live weight which are delivered by agricultural enterprises to the processing enterprises, in structure of the tax credit which was reflected in the declaration by calculation with the budget (the general declaration), and respectively poluchat compensation from the budget for this declaration.
By order of filling and submission of the declaration on a value added tax (the order GNA of Ukraine from 30.05.97 of No. 166, with changes and additions) it is provided that payers of a tax with whom soyoglasno to the current legislation (Law points 11.21, 11.29) the value added tax sums completely remain at their order for target use, represent the tax declaration on a value added tax (reduced).
Therefore, since date of publication of a postayonovleniye of Cabinet council of Ukraine from 28.03.07 of No. of 596 operations on supply of milk and meat in live weight agricultural producers on processing enterprises for a zero rate and the tax credit connected with acquisition of TMTs for production of the specified goods, are subject to reflection in a spetsdeklayoratsiya No. 1 (according to point 11.21 of the Law of Ukraine About a value added tax).
In addition to stated GNA of Ukraine reports that all tax explanations published before coming into effect of the specified resolution, can be applied tolko in a part which is not contradicting this resolution.
Vice-chairman L. BOENKO
AND NEVERTHELESS IN THE GENERAL DECLARATION
In the published letter of GNAU insists on reflection of operations on supply of milk and meat to the pererabatyyovayushchy enterprises (further – software) in the special declaration on the VAT.
We aren’t agree with this conclusion. Let’s explain why. But at first we will remind, what this problem was already shined on pages "Balans-Agro" in article Supply of milk and meat to the processing enterprises – in what declaration to reflect? ("Balans-Agro", 2007, No. 16, page 24).
As it was noted in the publications, that fact that the Resolution No. 596* from the Order No. 805 excluded norm that supply of milk and meat in live weight is reflected in software in the general declaration on the VAT, yet doesn’t mean that now it should be reflected in the special declaration.
The matter is that the Order No. 805 regulates the mechanism of charge and payment of grants to selkhoztovaroproizvodiyotel. And here the mechanism of reflection of operations in declarations on the VAT is regulated by other document – Order No. 166 **. According to item 1.2 of this Order in the reduced declaration include only those operations which concern the special modes established by item 11.21 and 11.29 of the Law on the VAT. At milk and meat realization in live weight on software it is necessary to be guided by not mentioned points, and subitem 6.2.6 of the Law on the VAT.
However GNAU went further away: the made comments letter it extended standards of the paragraph of the second item 11.21 and to supply of milk and meat to software, giving reason for it that the specified norms don’t establish dependence neither on a tax rate, nor on the direction of realization of this production.
It is impossible to agree with it, as in the above-named point it is a question of the sums of the VAT which remain at the disposal of agricultural enterprises after realization of production of animal husbandry. Such means are listed on the special bank account and SHTP on a designated purpose are used.
As to supply of milk and meat to software, no sums of the VAT for target use here can be: these operations provide a zero rate of a tax therefore item 11.21 on them doesn’t extend.
Let’s notice also that before GNAU in the explanations (we will remember Letters No. 15190 ***, No. 1399 ****, etc.) ustanavlivala for SHTP three special tax treatments on the VAT – according to subitem 6.2.6, item 11.21 and 11.29 of the Law on the VAT. That is supply of milk and meat to software wasn’t identified with item 11.21. It is a pity that GNAU changes own opinion, without having for this purpose the sufficient bases.
Thus, our position remains former: corresponding changes won’t be made to the Order No. 166 yet, supply of milk and meat on software, and also the corresponding sums of the tax credit should be reflected in the general declaration on the VAT on which calculations with the budget are made.
Most likely, on places taxing authorities will use made comments letter, therefore to agricultural enterprises remains nothing how to appeal against the decision of tax specialists in a judicial order.
P.S. As we know from authentic sources, the Cabinet council of Ukraine is going to return the norm excluded by the Resolution No. 596 to the Order No. 805. That because of which arose given problema. The draft of the resolution was dispatched to the relevant ministries and departments for coordination. It is necessary to wait for results only…
* the Resolution KMU from 28.03.07 of No. 596 About modification of resolutions KMU from 26.02.99 of No. 271 and 12.05.99 of of No. 805 ("Balans-Agro", 2007, No. 8).
** An order of filling and submission of the tax declaration on a value added tax, approved by the order GNAU from 30.05.97 of No. 166.
*** GNAU letter from 10.08.06 of No. 15190/7/16-1417.
**** GNAU letter from 28.01.03 of No. 1399/7/15-3317.
(On Balans-Agro newspaper materials).