Upon transition to the Unified Social-Economic Tax, an individual entrepreneur is exempted from paying three basic taxes by replacing him with a flat rate. So, a single agricultural payment includes taxes:
- value added;
- at a profit;
- on property.
Thanks to the Unified Agricultural Taxes, an individual entrepreneur can no longer care about paying VAT. However, there are cases that are an exception. An example is the supply of imported raw materials for production. Value added tax is charged as the goods cross customs.
Of course, IP taxation is not limited to three basic taxes. Other obligatory payments to the budget are subject to calculation, accrual and payment in accordance with the procedure established by the Tax Code. In this regard, the business entity is required to calculate the tax amount within the approved period and transfer it to the account of the relevant budget organization, promptly inform about the impossibility of making payments, keep a clear chronology of all transfers to the budget over the past few years and store them.
The UES is very convenient: an individual entrepreneur gets the opportunity to simplify the procedure for filling out documentation, that is, the amount of clerical work is significantly reduced. In addition, it becomes easier to keep accounts, and for a small business this is a significant advantage. However, far from all agricultural entities are entitled to the transition to single taxation. So, in accordance with applicable laws, enterprises that can:
1. Engaged in the sale, production and processing of products included in the general list, officially approved by state bodies.
2. They get a sufficient amount of profit, which makes it possible not only to cover the expenses incurred, but also to ensure the next cycle of the production process. Tax authorities require a revenue of at least 70%.
3. Are not owners or co-founders of companies related to the gambling business. Also, institutions producing excisable goods and budget organizations are not subject to a single tax. If an entrepreneur organizes a company that provides services for processing agricultural products, then he should not qualify for accrual of unified agricultural tax.
An individual entrepreneur can make the transition to a single-use tax registration system immediately after registration. He is given five working days to submit an application to the appropriate authority from the moment he receives official status. The entrepreneur annually confirms the tax system, so at the beginning of each reporting period, he can write an application for the calculation of the single tax in the future. State authorities set a deadline for submitting an application from October 20 to December 20 of the reporting period. A business entity is entitled to carry out the transition from a simplified to a regular taxation system in a free manner and at its sole discretion.
A single agricultural tax is a huge help in the activities of a small enterprise. However, this advantage is not only difficult to obtain, but also not easy to maintain. In case of violation of at least one requirement for such organizations, the entrepreneur will have to notify the tax authority about this within a month and make a full recalculation of the three replaced taxes. Then he must pay the revealed difference, taking into account the late fees. Only in this way will the enterprise be able to avoid the accrual of serious penalties. If everything is done on time, then the enterprise will only use the funds of the reserve fund, but will maintain stable production.