Sometimes unified tax payers have question, is it possible to offset debts with a contractor? We try to answer this question in the article.
It should be noted that according to the para. 291.6 of the Tax Code of Ukraine of 02.12.2010, № 2755-VI (hereinafter - TCU) payers of the unified tax of the first - third groups should make payments for shipped goods (executed works and provided services) only in monetary form (cash and / or cashless).
In concordance with para.292.6 of TCU the date of income receipt of unified tax payer is the date of funds receipt in monetary form (cash or cashless) to the unified tax payer.
Cashless payments are the transfer of a certain amount of funds from the payers’ accounts on accounts of funds recipients. Also these are the transfer of funds paid in cash of bank or on accounts of funds recipients by banks on behalf of companies and individuals. These payments should be carried out by the bank on the basis of settlement documents in hard copies or in soft copies (para. 1.4 of Chapter 1 of the Regulations on non-cash payments in local currency in Ukraine, approved by the NBU Board dated 21.01.2004, № 22).
According to the paragraphs 14.1.10 of TCU barter (exchanges of commodities) transaction is a business operation which provides for payments for goods (works, services) in kind under a single contract.
Today, it is given an explanation in Public information and reference resource of the SFS of Ukraine about issue: “Do the legal entities- unified tax payers of the third group have the right to perform barter transactions (debts offset)?” The experts of the SFS of Ukraine in their reply to this issue note: “Legal entities-unified tax payers of the third group have no right to perform barter transactions including repaying debts for shipped goods (executed works, provided services) by any means other than monetary.”
Additionally an explanation from the journal “Journal of Tax Service of Ukraine” «Вестник налоговой службы Украины» № 17-18 for 2009 should be reminded. It says that the legal entities-unified tax payers are not entitled to perform barter transactions and to repay debts for shipped goods (executed works, provided services) by any means other than monetary.
As you can see, the controllers stand only for monetary settlements. And it is invariably to their mind. And we believe that such explanations of state financial control should be taken into account by entrepreneurs-unified tax payers.
Additionally a few words should be said about implications for failure to comply provisions of para. 291.6 of TCU.
According to sub-paragraph 298.2.3 of TCU the unified tax payers are obliged to go to the payment of other taxes and duties determined by TCU, particularly in case of applying by unified tax payers other procedure for settlement than specified in para. 291.6 of TCU. It should be done from the first day of the month following the tax (reporting) period when such means of settlements are allowed.
Also, individuals-unified tax payers of the first-third groups should apply the unified tax rate of 15 percent (para. 293.4 TCU) on income received by applying the method of settlement other than specified in Chap. 1 “The simplified system of taxation, accounting and reporting” of section XIV of TCU.
However, legal entities-unified tax payers of the third group should apply a dual rate specified in para. 293.3 TCU (para. 293.5 TCU) on income received by applying the method of settlements other than specified in Chap. 1 “The simplified system of taxation, accounting and reporting” of section XIV of TCU.
According to the paragraph 299.11 of TCU in case of disclosure of violations of requirements established by Chap. 1 “The simplified system of taxation, accounting and reporting” of section XIV of TCU by relevant controlling authority during inspections of unified tax payers of the first-third groups, cancellation of the registration of unified tax payer of the first-third groups should be conducted by such authority decision adopted on the basis of the inspection report, from the first day of the month following the quarter when the violation committed.
