The legal entity was on the general taxation system (income tax payer and VAT payer) in 2014.The contract of exchange was signed with the contractor. At the end of 2014 the goods were delivered to the contractor under the contract of exchange. From 1 January 2015 the legal entity transacted to the single tax payment (group III, 2% tax rate with the VAT payment).In February 2015 the contractor delivered goods under the contract concluded last year.If the legal entity was on the general taxation system, this transaction would not cause any issues. But since legal entity now works on a single tax, the quite natural question arises: are there any negative effectsfrom this transaction in such cases (de facto the completion of exchange transaction).
First we note that the receipt of the goods from the contractor under the contract of exchange does not require from the single tax payer to recognize the income.
Let us recall, that in accordance with paragraphs 2 n. 292.1 of the Tax Code of Ukraine of 02.12.2010, № 2755-VІ (hereinafter – TCU) the income for the single tax payers legal entities is any revenue, including revenue of representatives, branches and departments of such legal entity, received during the tax (reporting) period in monetary terms (cash and/or non-cash), tangible or intangible form specified by n. 292.3 of the TCU.
In paragraph 292.3 of the TCU, the incomes in tangible and intangible forms include the cost of goods received free of charged (works, services) and also the amounts of the statute-barred debt.
Whereas, we received the goods under the contract of exchange and while we delivered our goods in return, then, of course, it is out of the question of receiving the goods for free.
As we have determined, the received goods are the charge for previously delivered goods, therefore the issue might arise: should this “goods” payment be included in the income as payment for the goods? Set mind at rest, no, the income should not be recognized (see. pp. 6 n. 292.11 of the TCU). That is because being on the general taxation system in 2014, we have already shown the income under such contract of exchange.
And now let us proceed to the unpleasant point.
According to p. 291.6 of the TCU, the single tax payers of the first, second and third groups should make payments for the shipped goods (done works, provided services) only in monetary terms (cash and/or non-cash). Received goods from the contractor under the contract of exchange are the payment for the previously shipped their own goods. Thus, in fact, the company receives not the monetary payment for the shipped goods. And, therefore, there is a violation of paragraph. 291.6 of the TCU.
Since there is a violation of p.291.6 of the TCU, it should be transacted on the general taxation system from the first day of the month following the tax (reporting) period, when such payment method is allowed (pp. 4 pp. 298.2.3 of the TCU). In fact, the legal entity has to go again to the income tax payment from the second quarter of 2015.
