In a material features of documentary registration, the taxation and accounting of operations of processing of agricultural products on the party on davalchesky conditions and on the basis of the purchase and sale contract are considered.
Agricultural producers often hand over the produkyotsiya for processing to other enterprises. As pokazyvaet practice, two options more often are for this purpose used:
1) the agricultural enterprise transfers own produkyotsiya to the processing enterprise (further – to a pereyorabotchik) and pays its services in processing;
2) the agricultural enterprise sells the production to a peyorerabotchik, and in exchange buys from it production of a peyorerabotka.
Let’s consider features documentary an oformleyoniya, the taxation and accounting of operayotsiya by both options, and also we will specify dostoinyostvo and shortcomings of each of them.
Documentary registration
Option 1. Production is processed on davalchesky conditions.
Operations with raw materials supplied by the customer – it is operations on preliminary delivery of raw materials for its posleduyuyoshchy processing on ready production for a sootvetyostvuyushchy payment (Law No. 327).
In this case the ownership right on a selkhozprodukyotsiya from agricultural enterprise to a pererabotchik not perexodit – it remains in an enterprise-zayokazchika property. Besides, and processing production also belongs to agricultural enterprise, instead of a pererabotchik.
Processing of the specified agricultural products osushhestvlyaetsya on the basis of the contract for processing of the raw materials supplied by the customer concluded between the producer and a pererabotchik. Concepts the contract for production processing in the Civil code aren’t present, however on svoyoy signs it is the hiring work contract, requirements to which oformyoleniye are defined in hl. 61 Podryad Groups.
So, one party (pererabotchik) undertakes to perform on the hiring work contract on the risk a certain work (to carry out agricultural products processing) on a zadayoniya of the second party (agricultural enterprise – the customer).
This contract consists in writing and doesn’t demand the obligatory notarial certificate.
It should contain the following information:
• a subject of the agreement, that is result of work of a pereyorabotchik (for example, processing sugar svekly on sugar);
• terms of performance of processing;
• a procedure of payments for the executed work and a stoyoimost of services in processing;
• rights and duties of the customer and performer;
• data on a site of the parties and their payment requisites, and also other conditions on a soglasovayoniya of the parties.
Fee on processing can be made by money, raw materials (selkhozproduktsiyoy), production of processing or in mixed forme. It should be specified in the contract.
The raw materials are shipped to a pererabotchik on the basis of sleduyuyoshchy primary documents: the delivery-acceptance certificate, the consignment note on holiday (internal displacement) of a produkyotsiya or the commodity consignment note (if the proyoduktsiya is delivered by agricultural enterprise transport).
Such documents should contain: drawing up date, number and the document name, identification codes of the customer and a pererabotchik, the content of economic operation, quantity and cost of the raw materials transferred in a pereyorabotka (without the VAT), positions and signatures of the persons responsible for implementation of operation.
Services in processing are paid on the basis of the act of the executed works. If a pererabotchik yavlyaetsya the payer of the VAT, for cost of data uslug it has to write out the tax consignment note.
Option 2. Production sale to a pererabotchik and acquisition of production of processing at it osushhestvlyayutsya on the basis of purchase and sale contracts.
The agricultural products are transferred to a pererabotchik as well as in the first option: according to consignment notes and commodity consignment notes.
As we see, these options differ only types of contracts. In the first option the contract for processing of davalchesky production, and consists in the second – contracts of purchase and sale of agricultural products and a processing produkyotsiya.
Profits tax
Option 1. As already it was noted above, in this case the ownership right on production remains behind agricultural enterprise. Therefore by agricultural products transfer to a pereyorabotchik and receiving production of processing from it neither the agricultural enterprise, nor at a pererabotchik has no changes in tax accounting.
But on cost of services in processing the pererabotyochik has a gross revenue, and at a selkhozpredpriyayotiya gross expenses increase.
If a pererabotchik – the payer of the profits tax in accordance with general practice, gross expenses at a selkhozyopredpriyatiya arise by a rule of the first event:
• or for date of signing of the act of the executed works (the rendered services) on processing;
• or for date of transfer of money to a peyorerabotchik (if calculations for services are made by money).
If the pererabotchik isn’t the payer naloga on profit, gross expenses at a selkhozpredyopriyatiya will arise only for date of signing of the act of the executed works (subitem 11.2.3 of the Law on profit).
Option 2. For date of shipment of production to a pererabotyochik the agricultural enterprise has a gross revenue on cost of this production (operation on production delivery is executed – the ownership right from a selyyokhozpredpriyatiya passes to a pererabotchik).
At acquisition of production of processing at a selkhozyopredpriyatiya there are gross expenses if danyony production is intended for use in its economic activity (takes place the operayotsiya on production acquisition).
VAT
Option 1. By production transfer pererabotchiku the agricultural enterprise doesn’t charge tax obyayozatelstvo on the VAT as there is no fact perexoda ownership rights on production. At a poluyocheniye of production of processing the agricultural enterprise has no right to the tax credit as there is no fact of acquisition of production (production of processing and so belongs to agricultural enterprise).
Operation on service on processing in this case is subject to VAT taxation. Therefore on cost of the specified services the pererabotchik voznikayut the tax obligations on the VAT (it should vypisat on this cost the tax consignment note), and at agricultural enterprise on the basis of such tax consignment note has a right to the tax credit:
• or for date of signing of the act of the executed works (the rendered services) on processing;
• or for date of transfer of money on account of payment of cost of such services (if this payment osushhestvlyaetsya money).
If the agricultural enterprise uses special modes of payment of the VAT, on uslugam on processing it should reflect the tax credit in a deklarayotsiya on the VAT depending on on what purposes processing production will be used:
• if for animal husbandry production (for example, for feeding of animals), the nalogoyovy credit has to be reflected:
– in the special declaration No. 1, which predstavlyaetsya according to item 11.21 of the Law on the VAT, or
– in the general declaration (if the enterprise sells milk or cattle in live weight on the pererabatyvayuyoshchy enterprises);
• if such production is sold or ispolzovana in other production activity of agricultural enterprise, the tax credit in the special declaration No. 2 which is represented according to item 11.29 of the Law on the VAT.
Pay attention! If production pererabotki is on sale further, the tax obligations on such sale should be reflected in the special declaration No. 2, after all a selkhozpredpyoriyatiya don’t pay the VAT in the budget, including by delivery of production made on davalchesky conditions of own selskokhozyayyostvenny raw materials (item 11.29 of the Law on the VAT).
Let’s note features of taxation of the VAT at agricultural enterprise calculation with a pererabotchik in kind (chastyu agricultural products or processing production).
As the ownership right, both on agricultural products, and on processing production was noted above, at all stages of processing, belongs a selkhozyopredpriyatiya. In this regard on cost of production which remains at a pererabotchik as a payment for the services rendered to them, agricultural enterprise should add the VAT (operation on delivery of production which according to subitem 3.1.1 of the Law on the VAT is object of taxation of the VAT is executed).
The tax obligations in this case need to be reflected in the special declaration No. 2 as the selkhozyopredpriyaty delivers or production of own production, or made of own selyyoskokhozyaystvenny raw materials on davalchesky conditions.
Option 2. For date of shipment of production at a selkhozyopredpriyatiya there are tax obligations – the ownership right passed to production to a pereyorabotchik, and such operation is object of an obyolozheniye of the VAT (subitem 3.1.1 of the Law on profit). Obligations on this operation are reflected by Nalogoyovye in the special declaration No. 2 (the produkyotsiya of own production is put).
If the pererabotchik is the payer of the VAT, for date of acquisition of production of processing at a selkhozpredpriyoyatiya there is a right to the tax credit (in the presence of the tax consignment note). Thus reflection of the tax credit in the declaration on the VAT depends on on what purposes processing production will be used:
• if for sale, in the general declaration, poskolku such production isn’t production of sobyostvenny production;
• if for use in a production deyayotelnost of agricultural enterprise, in the declaration No. 1 (for animal husbandry) or declarations No. 2 (for other production activity).
Accounting
Accounting of operations for both options we will consider on conditional numerical examples.
Example 1
The agricultural enterprise signed with sugar plant the contract for processing of caxarnoj of a beet. According to the contract the enterprise will pay for services in processing with sugar.
(UAH.)
Example 2
The agricultural enterprise signed with caxarnym plant the contract of purchase and sale of a sugar beet for the sum of 3 420 UAH: including the VAT – 570 UAH. (1 754 kg at the price of 1,95 UAH/kg). In exchange the selkhozpredyopriyaty are bought from plant by sugar for the sum of 3 420 UAH. (1 200 kg at the price of 2,85 UAH/kg). Further sugar is realized at the price of 2,95 UAH/kg for the sum of 3 540 UAH.
(UAH.)
Conclusion. From the point of view of the taxation the taxation and on nalogu on profit is much more favorable to the selskoyokhozyaystvenny enterprise zaklyuchat with the processing enterprises contracts for production processing on davalchesky usyoloviya, after all in this case, and on the VAT it is more attractive.
List of documents
1. Group of companies – the Civil code of Ukraine from 16.01.03 of No. 435-VI.
2. The law No. 327 – the Law of Ukraine from 15.09.95 of No. 327/95-BP About operations with raw materials supplied by the customer in the vneshneekonomichesyoky relations.
(On Balans-Agro newspaper materials).