Information for fruit and vegetables business in CIS
Farmers to enjoy special taxation approach
Researching on the situation with taxes for farmers, Interfax-Ukraina reported that a special VAT and fixed farm tax covers those farmers whose own crop and products sales minus VAT amount 50% of the gross revenue for the previous term minus VAT, accordingly.
According to the source in the government there is a Cabinet order where farmers who failed to open special accounts for VAT and did not transfer VAT to such, lose the option of enjoying special taxation. This order should straighten out the problem of faked "farmers".
The trick of the said law is that special terms allow farmers to postpone VAT payments until Jan 2004 in case the saved amounts farmers direct on purchasing inputs. This law also says that in case inputs or other purchases were made but were not in line with the production specifications of the said farmer, such farmer should refund the government without arguments.