Deputy Chairman of the Tax Administration for Tax Policy Olga Bogdanova held a webinar on "Confirmation of economic activity to avoid accrual of "conditional" VAT on crops losses due to obtaining a CCI certificate of force major."

UAC and the Chamber of Commerce and Industry of Ukraine initiated the event under the patronage of Deputy Minister of Finance of Ukraine Svitlana Vorobey and Deputy Minister of Economic Development, Trade and Agriculture Taras Vysotskyi. Regional CCIs and regional state administrations joined the webinar.

Deputy Minister of Economic Development Taras Vysotskyi thanked all those who joined the organization of the event and noted that up to 90% of issues are removed through education and experience exchange.

Olha Bohdanova mentioned that Ukrainian farmers have been significantly harmed because of the drought and have a number of problems due to crop failure this year.

"Agricultural producers have one risk on the part of the state fiscal service, which, in the case of non-economic use of assets purchased with VAT, tries to accrue contingent tax liabilities. On the other hand, there are farmers who, due to the lack of harvest and income from the sale of homegrown products, are more than 75% of the total amount - they are at risk of losing the 4th group of the single tax. We decided to combine these two issues, because in the first and in the second case, to avoid risks, we need to collect the same package of documents," Olha Bohdanova said.

Thus, according to the expert, there will be no conditional accrual of VAT, if farmers prove that force major is an economic activity and the CCI certificate will confirm it. Also, in order not to lose the 4th group of the single tax, the Tax Code provides a direct rule 298.8.4, which states: if a farmer together with the declaration of the single tax by February 20, 2021 submits to the State Fiscal Service of Ukraine the regional council decision on force major - the 4th group of the single tax will be preserved (even if the 75% criterion will not be there).

In particular, to obtain a CCI certificate and a decision of the regional council, the agricultural enterprise must submit the following documents:

• An Order on the establishment of a commission to inspect crops and record the area where the crops were lost
• Survey report with the inclusion of representatives of local councils or state administrations. It is important to mention the cause of crop loses clearly. If it is due to weather conditions, it is necessary to refer to the information specified in the certificate of the Hydrometeorological Center on weather conditions.
• A copy of the order of the head of the RSA on the establishment of a commission to inspect such fields
• Report about meeting of the regional or district commission of the State Emergency Service of Ukraine or expert’s report on the situation classification on the territory of the farm
• Statistical report on the ratio of harvested and affected crops
• Photo, video materials of fields where the crops were lost
• Order of the head of the enterprise in accordance with the results of the fields survey on the crops write off, resowing, use for green manure, etc.

Practical advice how to make a package of documents was considered on the example of one of UAC enterprises.

Director of the Directorate of Legal Support of CCI Activities Alla Nesterenko spoke in detail about the procedure for obtaining a CCI certificate of force major and explained what documents are required for this. In particular, if we talk about the minimum set, it should be the acts of field inspection, the certificate of the Hydrometeorological Center issued to a particular farm and the decision of district administrations on the emergency report.

We will remind, on December 1 at 3:00 PM the practical online conference "Suspension of tax invoices registration for agricultural producers: how to forget about it forever" will take place. On the practical experience of cooperation between UAC and the State Tax Service of Ukraine on the suspension of tax invoices, we will analyze issues that the payer does not guess about and that the State Tax Service does not see.

Samples of documents presented by Olha Bohdanova during the webinar can be downloaded at the link