In this article the explanation about taxation basis is given at production sale at the price of below declared by agricultural enterprises.
Anna BELOCERKOVSKAYA, deputy director of GNA VAT Department of Ukraine
The agricultural enterprise is engaged in poultry farming production. According to the resolution KMU from 17.10.07 of No. of 1222 prices for fowl are subject to declaring in case of their increase within a month more than for 1 %. The last rise in prices declared the enterprise in May of the current year. Since June the price for meat started to decrease. What will be base of taxation of the VAT at fowl sale at the price of below declared?
The taxation basis of operations is determined by delivery of the goods (services) proceeding from their dogoyovorny (contract) cost determined by free prices, but not below the usual prices (item 4.1 of the Law on the VAT).
The term the usual price in the Law on the VAT ispolzuetsya according to its formulation, priyovedenny in item 1.20 of the Law on profit (item 1.18 of the Law on the VAT). So, usual the price of the goods defined by treaty parties is considered. The usual price should correspond to level of fair market prices. In case podlezhat to state regulation according to the legislation, usual the price, ustayonovlenny by principles of such regulation is considered the prices for the goods.
Changes of wholesale selling prices of the prodovolyyostvenny goods (in particular, fowl) in a soyootvetstviye with the resolution KMU from 17.10.07 of No. 1222 are subject to declaring in case of their increase more than for 1 % within a month. Such declaring allows the state to provide control of increase in the prices for some foodstuff.
By Deklayorirovaniye of reduction of prices by the specified postayonovleniye it is not provided. Therefore if in the market there is a tendency to reduction of prices of foodstuff, zadeklarirovanyony earlier the price can’t be considered as the usual. In that case the usual price is defined isxodya from contractual price which corresponds to level of fair market prices.
On Balans-Agro newspaper materials.