To publications there is a speech about reflection in the account and the taxation of the means received as grants for crops of winter and grain crops.

In the current year many agricultural enterprises receive from the grant budget for crops of winter and summer crops. In this regard they have questions of the taxation and reflection in the accounting of the received sums. We also will answer them in our consultation.

Taxation

VAT

First of all, we will note that no features in taxation of the received grant of the VAT are present. Let’s explain why.

At first some words about tax obyazatelyyostvo. According to subitem 3.1.1 of the Law on the VAT the tax obligations on this tax are charged only at implementation of operation which is object of taxation of the VAT, i.e. deliveries of the goods (us­lug) (further – the goods) in the territory of Ukraine.

Certainly, when receiving from the budget of the specified grant the enterprise doesn’t make delivery tova­rov, so, such operation isn’t object of taxation of the VAT.

Now we will stop on the tax credit. Sometimes there is a question, whether it is necessary to correct for the sum of the received grant the tax credit on the VAT. This problem is apparently connected with that a predyopriyatiya consider the grant as compensation of the expenses suffered by them on acquisition of the goods for crops of agricultural cultures. However it not so.

According to the Resolution No. 256* the specified sredyostvo are allocated from the budget for a financial podyoderzhka of production of plant growing with a dating way on 1 hectare of crops. The grant pre­dostavlyaetsya on the basis of data on the area on which there ascended crops, instead of on the basis of costs of their crops. That is the received grant isn’t compensation ponesenyony the enterprise of expenses.

And even if it would be that, korrektiro­vat the tax credit all the same it was not necessary. Why? The matter is that in the Law on the VAT not oprede­lena dependence of the right to the tax credit on means for which the goods are acquired. Sledovayotelno if the goods were acquired for an ispolyyozovaniye in economic activity at an osushchestvyoleniye of taxable operations, about any correction of the Tax Code when receiving compensation can’t go speech.

So, we found out that the grant received from the budget, the VAT isn’t assessed. In the declaration on the VAT obtaining grants also isn’t reflected.

Let’s pay attention to one moment. Priobreteyoniye of the goods at the expense of the sums of the received grant grants to the enterprise full authority for inclusion uplachenno­go (added) VAT in structure of the tax credit **. GNAU (the Letter No. 1453 ***) adheres to the same opinion also.

Profits tax

Agricultural enterprises – payers of a tax on pri­byl in the period of obtaining grants from the budget dolzh­ny to include their sum of a gross revenue as these sums increase the size of a gross income (subitem 4.1.6 of the Law on profit).

In the declaration on the profits tax the sum of grants is reflected in p. 01.6.

Accounting

The budgetary grants – it means of a target finanyosirovaniye of agricultural enterprises therefore they should be reflected in account 48 Target financing and target receipts.

As this grant is provided for a support okazayoniya to agricultural enterprises without establishment of conditions of its expenditure, target financing pri­znaetsya by receivables with odnovremenyony recognition of the income (item 19 P (C) BU 15 "Income").

On a conditional numerical example we will consider a reflection order in tax and accounting of operayotsiya on obtaining the grant.

Example

The agricultural enterprise received from the budget a dotayotsiya for crops of winter crops at a rate of 50 000 UAH. At the expense of this grant fuels and lubricants for the sum of 36 000 UAH were acquired. (including the VAT – 6 000 UAH.).

(UAH.)

(On Balans-Agro newspaper materials).

* the Resolution KMU from 21.02.07 of No. 256 About the statement of the Order of use in 2007 of means, predusmotyorenny in the government budget for the state support of production of plant growing ("Bayolans-Agro", 2007, No. 5, page 4).

** At performance of the following conditions: 1) such goods (services) should be intended for use in hozyayyostvenny activity within taxable operations; 2) existence of properly issued tax consignment note (item 7.4 of the Law on the VAT).

*** GNAU letter from 27.01.07 of No. 1453/7/16-1517.

Related Posts

• About the list of documents
• About modification of use order in 2007 of the means provided in the government budget for the state support of production of plant growing
• About state support of production of animal husbandry