In this article the order of registration of the acquired car by agricultural enterprises, car registration in GAI, the taxation, and also reflection in tax and accounting is stated.
Today we will tell about features of acquisition by agricultural enterprises of cars, and also about reflection of this operation in tax and accounting.
Documentary registration
First of all, we will be defined with concept. As appears from Rules No. 1306, the car – is the car having no more than nine places (including a place of the driver) and intended on the design and the equipment for transportation of passengers and their luggage with ensuring necessary comfort and safety (item 1.10).
The enterprise can become the owner of the car in two ways:
• to get new or former in the use avtomobil at physical or legal entities;
• to receive it as a contribution in authorized kapital.
Way 1. If the car is got at yuridiyochesky or the individual, the transaction is made out by the contract of purchase and sale made in a pismenyony form (Art. 208 of group of companies). The contract with the seller zaklyuchaetsya on the basis of the decision of the director on acquisition of the car issued by the order, or the protocol of general meeting of founders. Notarially to certify such contract unessentially, but at will of the parties it can be done.
If the vehicle is got at SPD – the car dealer (for example, in motor show), in addition to the contract such businessman makes out the reference account which is the basis for car registration in bodies of the State traffic inspectorate (item 1.6 of Rules No. 228). Thus the enterprise should give out to the authorized person a doverenyonost on receiving inventory items which together with the passport the recipient shows to the seller (item 15 of Rules No. 228).
Way 2. For receiving the car as a contribution to authorized capital the protocol of general meeting of founders is necessary. The ownership right to the enterprise passes on the basis of the acceptance transfer act, for example, in a No. OZSG-1 form approved by the Order No. 701.
Car registration in GAI
Within 10 days after acquisition the car is necessary for registering in GAI in a sootyovetstviye with Rules No. 1388. Otherwise it is necessary to pay an administrative penalty at the rate from 34 to 85 UAH. Let’s notice that legal entities register the car on the site (item 24 of the specified Rules).
Don’t forget that before registration it is necessary to pay the taxes and fees established by the legislation, including:
1) tax on owners of vehicles.
We pay attention to a tax discharge order:
• for not the new car which was already registered in the territory of Ukraine – for the months which have remained until the end of the year, since a month of registration;
• for the car which wasn’t before zaregistrirovan in Ukraine (for example, it is imported because of a grayonitsa or it is acquired new) – before registration for all year irrespective of a month of registration;
2) collecting in the Pension fund at a rate of 3 % of cost of the car.
Besides, GAI services for the state checkup, registration, a car assessment, registration of registration documents are separately paid. Cost of forms of registratsionyony documents and registration plates is compensated also.
So, to register the car in GAI, it is necessary a tax (item 8 of Rules No. 1388):
• the statement of the director in which it is specified Full name persons to whom registration (an application form is charged it is possible to receive in GAI office);
• the power of attorney confirming powers of the person on registration of the car, and also an identification paper of the representative;
• copies of the certificate on state registration of the legal person, charter and certificate of a statupravleniye of assignment of an identification code (EGRPOU);
• the document confirming legitimacy of acquisition of the car (the purchase and sale contract, the reference account if the car is acquired at SPD – the car dealer, the acceptance transfer act);
• the document confirming estimation of cost of the car (stands out specialists of division of GAI);
• documents on payment of the established taxes and fees and GAI fee.
After passing of all these procedures the certificate on state registration and two registration plates is granted.
Taxation
Profits tax
The car intended for an ispolyyozovaniye in economic activity (not for sale), belongs to fixed assets. Expenses on its acquisition lead to increase in balance cost of group 2. This cost increases takzhe by the expenses suffered in connection with acquisition (the registration fees in GAI, costs of insurance and delivery, etc.).
At the same time it is necessary to pay attention to ambiguity in an approach of the Law on profit to a vehicle tax and pension collecting. In what it is shown? On the one hand, subitem 5.2.5 allows to include the sums of taxes and fees in structure of gross expenses. On the other hand, subitem 8.4.1 says that the expenses suffered in connection with acquisition of fixed assets, increase balanyosovy cost of the relevant group.
By the way, GNAU in the Letter No. 23881 notes that collecting in the Pension fund can be carried on gross expenses on the basis of subitem 5.2.5 of the Law on profit. Thus such sum is reflected in p. 4.6.18 of annual priloyozheniye R1 to the declaration on the profits tax (for a year it is specified in the declaration in p. 04.6).
How to be in that case? We consider that how the enterprise arrived, the decision should be accepted in its advantage on the basis of norm about the conflict of interests (Law No. 2181 subitem 4.4.1).
Expenses on fuels and lubricants. Cost of fuels and lubricants for automobile avtomobilya joins in VR at a rate of 50 % of the suffered expenses (subitem 5.4.10 of the Law on profit). Besides the enterprise isn’t obliged to prove communication of operation of the car with the economic activity.
VAT
By the law on the VAT it is provided that the VAT sum, uplayochenny at acquisition of the car which is a part of fixed assets of the enterprise, not in the tax credit, and belongs on gross expenses (subitem 7.4.2).
However GNAU objects to inclusion of the sums of the VAT in gross expenses (increases at this sum of balance cost of group 2) (Letters No. 14787 and No. 42 – see "Balans-Agro", 2007, No. 13). She gives reason for the point of view that in Law subitem 5.3.3 about pribyli there is no corresponding norm. That is, according to GNAU, the VAT can’t be included neither in the tax credit, nor in gross expenses.
However, it is possible to give also opinion of committee of the Verkhovna Rada concerning finance and bank activity. In particular, in the Letter No. 06-10 it is noted that the VAT can be carried on VR on the basis of subitem 7.4.2 of the Law on the VAT, using the conflict of interests (Law No. 2181 subitem 4.4.1) and materials of court practice (the resolution of economic court of Kiev from 19.10.06 of No. 32/509-A).
Thus, increasing VR by the sum of the VAT paid at acquisition of the car, remember that the position should be defended in court.
To data: about an order of reflection of operation of purchase of the car in the declaration on the VAT and the Register of tax consignment notes read in the answer of the expert of GNAU, the opubliyokovanny ambassador of this consultation.
Accounting
On balance of the enterprise the car is enlisted at initial cost (to item 7 P (C) BU 7 "Fixed assets"). There are two options of its definition depending on a way of acquisition.
Option 1. If the car is acquired for money, in initial cost join:
• the sums paid to the supplier (seller) of the car;
• the sums suffered in connection with state registration of the car: the registration fees at a capture on the account in GAI, the national duty and other similar payments (pension collecting, a tax on owners of vehicles, etc.);
• expenses on car insurance;
• expenses on its transportation to a basing place;
• other expenses connected with finishing of the car to a condition, suitable for use in the planned purposes.
Besides, as the VAT paid upon purchase doesn’t join in the tax credit, its sum is included also into initial cost of the car (item 8 P (C) BU 7).
Option 2. If the car is received in quality vznosa in authorized capital, fair value taking into account specified above expenses is initial coordinated by founders of the enterprise.
As to collecting in the Pension fund, in our opinion, it too should join in initial cost of the car as it is paid in connection with its acquisition. And here the vehicle tax needs to be carried on expenses of the reporting period as directly it isn’t connected with acquisition, and it is paid annually.
The expenses which have entered into initial cost of the car, carry in the beginning to capital investiyotsiya into subaccount 152 Acquisition (manufacturing) of fixed assets.
When commissioning the car turn on in structure of fixed assets (except cases when it is acquired specially for resale) and otrazhayut on subaccount 105 Cars and the equipment.
This operation is made out by the act of acceptance transfer (internal displacement) of fixed assets, for example, in a No. OZSG-1 form (it is approved as Priyokaz No. 701 and is provided in "Balans-Agro", 2007, No. 20). The act is made in one copy by an inspection appointed by the director. Together with technical documentation it transfer in accounts department for car transfer on balance. The act is signed by the chief accountant and the director argues.
Example
The enterprise got the car VAZ in the 2107th cost of 39 000 UAH., including the VAT – 6 500 UAH. At registration the following payments are paid:
• the registration fees in GAI – 130 UAH.;
• collecting in the Pension fund – 975 UAH.;
• a tax on owners of vehicles – 79 UAH.
Let’s show how to reflect this operation in the account.
(UAH.)
List of documents
1. Group of companies – the Civil code of Ukraine from 16.01.03 of No. 435-IV.
2. The law No. 2181 – the Law of Ukraine from 21.12.2000 of No. 2181 About an order of repayment of obligations of taxpayers before budgets and the state specialized funds.
3. The order No. 701 – the order of the Ministry of an agrarian policy from 27.09.07 of No. 701 About the statement of specialized forms of primary documents according to the accounting of fixed assets and other non-turnaround assets of agricultural enterprises.
4. Rules No. 228 – Rules of home shopping service by vehicles and the number units, the Ministries of Economics approved by the order and concerning the European integration of Ukraine from 31.07.02 of No. 228.
5. Rules No. 1306 – the Traffic regulations approved by the resolution KMU from 10.10.01 of No. 1306.
6. Rules No. 1388 – Rules of the state registration and the accounting of cars, buses, and also the self-propelled cars designed on the chassis of cars, motorcycles of all brands and models, trailers, semi-trailers and the motorized carriages, approved by the resolution KMU from 07.09.98 of No. 1388.
7. The letter No. 06-10 – the VR Committee letter concerning finance and bank activity from 02.03.07 of No. 06-10/10-199.
8. The letter No. 42 – GNAU letter from 30.01.07 of No. 42/2/15-0210.
9. The letter No. 14787 – GNAU letter from 27.07.05 of No. 14787/7/15-1117.
10. The letter No. 23881 – GNAU letter from 19.12.06 of No. 23881/7/15-0317.
(On Balans-Agro newspaper materials).