Unified Agricultural Tax, features of the unified agricultural tax for organizations and individual entrepreneurs

What is Unified Agricultural Tax

The Unified Agricultural Tax is a tax regime created specifically for entrepreneurs and organizations engaged in the production of agricultural products. A feature of the Unified Agricultural Tax, like any other special regime, is the replacement of the main taxes of the general system with one - a single one. The following are not subject to payment on the Unified Agricultural Tax:

Personal income tax (for individual entrepreneurs).
Income tax (for organizations).
Property tax (except for objects for which the tax base is determined as their cadastral value).

note

that from 2021 entities on the Unified Agricultural
Tax must pay VAT .
However, they can receive an exemption from this tax under Article 145 of the Tax Code of the Russian Federation. VAT exemption in 2021 is provided as follows:

for those who applied the Unified Agricultural Tax in 2021 - if the amount of income from activities subject to this tax does not exceed 80 million rubles;
for those who switched to the Unified Agricultural Tax from 2021 - without restrictions on the amount of income for the previous year.

What products are considered agricultural

Agricultural products include products of crop production, agriculture, forestry, and livestock (including those obtained as a result of growing and rearing fish and other aquatic biological resources).

Who has the right to apply the Unified Agricultural Tax in 2021

Individual entrepreneurs and organizations whose income from agricultural activities is more than 70%
of their total income can apply the Unified Agricultural Tax.
Fishery organizations and entrepreneurs also have the right to apply the unified agricultural tax, but their income from the sale of fish products must be more than 70%, and the number of employees must not exceed 300 people
.

Note

: from January 1, 2021, LLCs and individual entrepreneurs that provide services to agricultural producers in the field of livestock and crop production can apply the unified agricultural tax (Federal Law of June 23, 2016 No. 216). More details about this here.

Who cannot apply the Unified Agricultural Tax

Organizations and individual entrepreneurs producing excisable goods (for example, alcohol-containing and alcoholic products, tobacco, etc.).
Organizations involved in gambling.
Budgetary and government institutions.
Individual entrepreneurs and organizations that are not producers of agricultural products, but are only involved in their primary and subsequent processing.
Individual entrepreneurs and organizations whose income from agricultural activities is less than 70% of their total income.

Conditions for using the Unified Agricultural Tax

Organizations that produce and process agricultural products (carry out their primary and subsequent processing) can apply the unified agricultural tax if the following conditions are met:

the organization produces (processes) products from its own raw materials (grown or mined by the organization);

the share of income from the sale of agricultural products, including products of primary processing of raw materials, is at least 70 percent of the total income from sales. This indicator is determined for the year preceding the year in which the organization submits an application for transition to the Unified Agricultural Tax.

This is stated in paragraph 2 of Article 346.2 of the Tax Code of the Russian Federation.

Agricultural consumer cooperatives can apply the Unified Agricultural Tax if the following conditions are met:

cooperatives (members of the cooperative) produce, process and sell agricultural products (including agricultural products from raw materials grown (mined) by members of the cooperative), and also perform work (provide services) to members of cooperatives;

the share of income from the sale of the specified agricultural products (including products of primary processing of raw materials), as well as from the sale of works (services) to members of the cooperative, is at least 70 percent of the total income from sales. This indicator is determined for the year preceding the year in which the cooperative submits an application for transition to the Unified Agricultural Tax.

City- and settlement-forming fishery organizations can apply the Unified Agricultural Tax if the following conditions are met:

the number of employees working in these organizations (including family members living with them) is at least half the population of a given locality;

the share of income from the sale of the catch of aquatic biological resources, as well as products produced from this catch on their own, is at least 70 percent of the total income from sales. This indicator is determined for the year preceding the year in which the organization submits an application for transition to the Unified Agricultural Tax;

organizations use in their activities fishing fleet vessels that are owned by them or on the basis of charter agreements (bareboat charter and time charter).

Other fishery organizations may apply the Unified Agricultural Tax if the following conditions are met:

the share of income from the sale of the catch of aquatic biological resources, as well as products produced from this catch on their own, is at least 70 percent of the total income from sales. This indicator is determined for the year preceding the year in which the organization submits an application for transition to the Unified Agricultural Tax;

organizations use in their activities fishing fleet vessels that are owned by them or on the basis of charter agreements (bareboat charter and time charter);

the average number of employees of the organization does not exceed 300 people. This restriction must be observed for each of the two calendar years preceding the year in which the organization submits an application to switch to paying the Unified Agricultural Tax. The requirement for a maximum number of employees does not apply to agricultural production cooperatives (including fishing cooperatives and collective farms).

When classifying vessels as fishing vessels, one should be guided by the concept of fishing vessels given in paragraph 2 of Article 7 of the Merchant Shipping Code of the Russian Federation.

This procedure follows from the provisions of paragraph 2.1 of Article 346.2 of the Tax Code of the Russian Federation, letters of the Ministry of Finance of Russia dated July 12, 2010 No. 03-11-09/57 (brought to the attention of the tax inspectorates by letter of the Federal Tax Service of Russia dated August 30, 2010) and dated August 3 2009 No. 03-11-11/155.

Attention: if an organization unlawfully switched to the Unified Agricultural Tax, it will have to pay all taxes from which it was exempted due to the use of this special regime.

Taxes will need to be paid for the entire period of unlawful use of the unified agricultural tax. In addition, you will have to pay penalties on these taxes. Penalties are accrued for each calendar day of delay, starting from the day following the day of payment of the relevant tax established by law. Such requirements are established in paragraph 5 of paragraph 4 of Article 346.3 of the Tax Code of the Russian Federation.

Situation: can organizations that produce biofertilizers use unified agricultural tax? The share of income from the sale of biofertilizers exceeds 70 percent of the total income from sales.

Answer: no, they cannot.

One of the conditions for the application of the Unified Agricultural Tax is the production and processing of agricultural products (clause 2 of Article 346.2 of the Tax Code of the Russian Federation). Specific types of agricultural products are determined by the Government of the Russian Federation (clause 3 of Article 346.2 of the Tax Code of the Russian Federation). The list of types of agricultural products was approved by Decree of the Government of the Russian Federation dated July 25, 2006 No. 458. Biofertilizers are not included in this list, therefore, for the purposes of applying the Unified Agricultural Tax, this type of product does not belong to agricultural products. Thus, organizations producing biofertilizers do not have the right to apply this special regime. Similar explanations are contained in the letter of the Ministry of Finance of Russia dated June 30, 2009 No. 03-11-06/1/27.

Situation: can an organization that raises purchased poultry for a short time apply the Unified Agricultural Tax? The period of poultry rearing from the moment of purchase to the moment of slaughter is several days.

Answer: yes, it can, if in the process of raising poultry you create agricultural raw materials of your own production.

For the purposes of the Unified Agricultural Tax, agricultural producers are organizations that sell agricultural products produced by them, as well as products of their primary and subsequent (industrial) processing. At the same time, in the total income of the organization, the share of income from the sale of agricultural products must be at least 70 percent. When determining this share, income from the sale of products of primary processing of agricultural raw materials of own production is also taken into account. This procedure is provided for in paragraph 2 of Article 346.2 of the Tax Code of the Russian Federation.

In the situation under consideration, the organization acquires agricultural raw materials (poultry) and produces primary processed products from it (poultry meat). However, the cost of such products can be taken into account when determining the right to use the Unified Agricultural Tax only if they are made from raw materials of their own production.

Production should be understood as a process during which one or more types of initial products (raw materials, materials, semi-finished products) are transformed into another type of product. Therefore, the process of raising poultry can be recognized as the production of agricultural raw materials if the purchased and raised poultry are different types of products.

The types of products that are recognized as agricultural for the purposes of the Unified Agricultural Tax are determined according to the All-Russian Classifier of Products (clause 3 of Article 346.2 of the Tax Code of the Russian Federation, Decree of the Government of the Russian Federation of July 25, 2006 No. 458). In the OKP, poultry products are presented in subclass 98 4000, which includes the group “Poultry population of all species” (code 98 4800). This group includes several subgroups, each of which consists of specific types of products. For example, the subgroup “Duck stock” (code 98 4840) includes two types of “Young ducks” products:

young ducks from 4 to 9 weeks (code 98 4844);

young ducks from 9 to 26 weeks (code 98 4843).

If during the growing process the product type code of the purchased bird changes, then the grown bird can be recognized as an agricultural raw material of its own production. In this case, the cost of sold products of primary processing of such raw materials (poultry meat) can be included in income from the sale of agricultural products. If the 70% income ratio is observed, the organization has the right to apply the Unified Agricultural Tax. The legitimacy of this approach is confirmed by letter of the Ministry of Finance of Russia dated June 20, 2011 No. 03-11-06/1/8.

If the product type code does not change for the period from the moment the poultry is purchased to its slaughter, then the organization’s activities should be qualified as primary processing of purchased agricultural raw materials. Income received is not included in income from the sale of agricultural products. If without them the 70 percent ratio of sales income is not ensured, the organization does not have the right to apply the Unified Agricultural Tax.

Situation: is it possible to include in income from the sale of agricultural products of one’s own production income from the sale of grain crops grown on a leased land plot? Cereal seeds were sown on the plot before it was leased.

Answer: yes, you can.

For the purposes of the Unified Agricultural Tax, agricultural producers are organizations that sell agricultural products produced by them (including using leased fixed assets). At the same time, in the total income of the organization, the share of income from the sale of agricultural products of its own production must be at least 70 percent. This procedure is provided for in paragraph 2 of Article 346.2 of the Tax Code of the Russian Federation.

The list of agricultural products is determined by the All-Russian Classifier of Products (clause 3 of Article 346.2 of the Tax Code of the Russian Federation, Decree of the Government of the Russian Federation of July 25, 2006 No. 458). Cereals and leguminous crops are included in this list and therefore belong to agricultural products. Income from the sale of grain harvests can be included in income from the sale of agricultural products of one's own production only if such products are produced on one's own.

In the situation under consideration, the organization rented land sown with grain crops, grew them and sold the harvest.

The final stages of the process of production of agricultural products (cultivation of grain crops) are the harvesting of grain crops and their removal from the field (Technological Design Standards (NTP-APK 1.10.10.001-02), approved by the Ministry of Agriculture of Russia on November 20, 2002). Since the organization independently brought the process of producing agricultural products to the final stage and sold the grown grain, such products are recognized as agricultural products of its own production. Therefore, when calculating the 70 percent ratio, income from the sale of grain crops can be included in income from the sale of agricultural products.

Similar conclusions are contained in the letter of the Federal Tax Service of Russia dated March 26, 2010 No. 3-2-09/42. The document is posted on the official website of the tax service in the section “Explanations mandatory for use by tax authorities.”

Transition to EXSN in 2021

If you are just planning to register an individual entrepreneur or organization, then the notification must be submitted either with the remaining documents for registration, or within 30 calendar days
after registration.

note

, that if you do not meet the specified deadline, you will be automatically transferred to the main taxation regime - the most difficult and unprofitable for small and medium-sized businesses.
Existing individual entrepreneurs and organizations can switch to the Unified Agricultural Tax only from January 1 of the next year. To do this, you must fill out a notification in 2 copies and submit it to the tax authority (individual entrepreneur at your place of residence, organizations at your location). Thus, in order to pay the Unified Agricultural Tax in 2021, the notification had to be submitted back in 2020. If this deadline is missed, you will be able to switch to the Unified Agricultural Tax only starting next year.

How to switch to Unified Agricultural Tax

The transition to paying agricultural tax is voluntary and is possible both when registering a business entity, and if an LLC or individual entrepreneur is already operating under some kind of regime. The notification is submitted to the registering tax authority in form No. 26.1-1.

Newly registered individual entrepreneurs and legal entities must submit a notification within 30 days after registration to switch to the Unified Agricultural Tax.
Already operating business entities can submit a notification no later than December 31 of the current year in order to switch to paying agricultural tax from the beginning of the new year. At the same time, they must indicate in the notification data on the share of income from the sale of agricultural products or fishing catch. This share must be at least 70% of total income.

Calculation of the Unified Agricultural Tax tax

The unified agricultural tax is calculated using the following formula:
EXSN = Tax base x 6%
Tax base
is the monetary expression of income reduced by the amount of expenses (expenses for which the tax base can be reduced are listed in clauses 2-4.1, 5 of Article 346.5 of the Tax Code of the Russian Federation ).
The tax base can also be reduced by the amount of loss
(the excess of expenses over income) received in previous years. If losses have been recorded for several years, then they are transferred in the order in which they were received.

Income ratio

One of the main indicators that determine the right to apply the Unified Agricultural Tax is the ratio between income from the sale of agricultural products (including products of primary processing of raw materials of own production) and the total volume of sales. To calculate this ratio, an organization must determine:

what is recognized as agricultural products and products of primary processing of raw materials of own production;

the share of income from the sale of agricultural products (including products of primary processing of raw materials of own production) in the total volume of income from the sale of products (goods, works, services).

Situation: which method - cash or accrual method - is used to determine income to calculate the 70 percent income ratio, subject to which the Unified Agricultural Tax can be applied?

Use the method the organization uses to determine revenue at the time the ratio is calculated.

One of the conditions for applying the Unified Agricultural Tax is compliance with the ratio between income from the sale of agricultural products (including products of primary processing of agricultural raw materials) and the total amount of income from the sale of goods (work, services). This ratio must be at least 70 percent. The value of the ratio must be controlled both during the transition to the Unified Agricultural Tax from other taxation systems, and during the period of application of the Unified Agricultural Tax. This follows from the provisions of paragraph 2 of Article 346.2 and paragraph 4 of Article 346.3 of the Tax Code of the Russian Federation.

There is no special procedure for assessing income for calculating the ratio in Chapter 26.1 of the Tax Code of the Russian Federation. Therefore, an organization must use the method by which it recognizes revenue at the time it determines this indicator.

Before switching to the unified agricultural tax, an organization can apply a general or simplified taxation system.

The use of the general taxation system allows for two options for determining income: the accrual method and the cash method (clause 2 of Article 249, Article 271, Article 273 of the Tax Code of the Russian Federation). Accordingly, if an organization that uses the accrual method switches to the Unified Agricultural Tax, it must use this method when calculating the ratio. If an organization using the cash method switches to the Unified Agricultural Tax, it must also determine income and expenses to calculate the ratio using the cash method.

With simplification, income is determined only by the cash method (clause 1 of Article 346.17 of the Tax Code of the Russian Federation). Consequently, when transitioning to the Unified Agricultural Tax, an organization using the simplified tax system must also use this method when calculating the ratio between income from the sale of agricultural products and the total amount of income from the sale of goods (work, services).

After the transition to the unified agricultural tax, the organization recognizes income on a cash basis (subclause 1, clause 5, article 346.5 of the Tax Code of the Russian Federation). Consequently, in order to calculate the ratio, subject to which it is possible to continue to use the Unified Agricultural Tax, income must also be determined using the cash method.

Similar clarifications are contained in letters of the Ministry of Finance of Russia dated May 24, 2010 No. 03-11-06/1/12 and dated April 24, 2008 No. 03-11-04/1/8.

Tax payment deadlines

The tax period under the Unified Agricultural Tax is a calendar year. Reporting period is half a year. Organizations and individual entrepreneurs must pay an advance payment during the year based on the results of the reporting period. The advance payment deadline is no later than 25 days from the end of the reporting period (six months). In 2021, organizations and individual entrepreneurs must pay an advance payment for the six months from July 1-26 (the deadline has been postponed due to the fact that July 25 is a Sunday). The deadline for paying tax under the Unified Agricultural Tax for the year is April 1 of the next year
. That is, the tax for 2021, taking into account the advance payment, must be paid before April 1, 2021.

Example of calculation and payment of Unified Agricultural Tax

Advance payment

IP Petrov I.M. in the first 6 months of 2021, I received an income of 500,000
rubles.
Expenses amounted to 420,000
rubles.
The advance payment will be equal to: 4,800 rubles.
((RUB 500,000 – RUB 420,000) x 6%). It must be paid by July 26, 2021.

Tax at the end of the year

In the next 6 months (from July to December) IP Kotov I.N. received an income of 600,000
rubles, and his expenses amounted to
530,000
rubles.
In this case, the tax at the end of the year will be equal to: 4,200 rubles.
((RUB 1,100,000 – RUB 950,000) x 6% – RUB 4,800). Unified agricultural tax for 2021 will need to be paid no later than April 1, 2022.

Reporting period

The reporting and tax period for taxpayers of the Unified Agricultural Tax is determined by Article 346.7 of the Tax Code of the Russian Federation:

tax period – calendar year;
reporting period – half a year.

After six months of agricultural activity from the beginning of the year, payers of the Unified Agricultural Tax are required to reimburse the monetary obligation for the advance payment.

Despite the fact that the reporting period for the unified agricultural tax is half a year, companies and individual entrepreneurs are required to fill out a declaration once a year. The document is submitted to the tax authorities no later than March 31 of the year following the tax period.

If a legal entity or individual entrepreneur using the Unified Agricultural Tax has ceased to conduct its activities, they must notify the tax authority employees about this. The deadline for notification of business cessation is the 25th day of the month following the month of cessation of business.

Submission of reports (declarations) by agricultural entities is carried out:

at place of residence - for individual entrepreneurs;
at the place of registration - for legal entities.

Tax accounting and reporting

Tax return

At the end of the calendar year, all individual entrepreneurs and organizations using the Unified Agricultural Tax are obliged no later than March 31

fill out and submit a tax return (in case of termination of activity, the declaration is submitted no later than the 25th day of the next month after the month in which the activity was terminated).

Accounting for income and expenses (KUDiR)

In addition to the tax return, individual entrepreneurs must keep a book of income and expenses received (KUDiR).

Accounting and reporting

Individual entrepreneurs using the unified agricultural tax are not required to submit financial statements and keep records. Organizations on the Unified Agricultural Tax, in addition to the tax return and KUDiR, are required to maintain accounting records and submit financial statements. Accounting statements for different categories of organizations vary. In general, it consists of the following documents:

Balance sheet (form 1);
Statement of financial results (form 2);
Statement of changes in capital (Form 3);
Cash flow statement (form 4);
Report on the intended use of funds (form 6);
Explanations in tabular and text form.

Read more about financial statements here.

Reporting for employees

They rent only to individual entrepreneurs and organizations that have employees. Read more about reporting for employees here.

Cash discipline

Organizations and individual entrepreneurs carrying out operations related to the receipt, issuance and storage of cash (cash transactions) are required to comply with the rules of cash discipline. Read more about cash discipline here. note

, from 2021, individual entrepreneurs and organizations carrying out settlements using cash and electronic means of payment are required to switch to online cash registers.

Additional reporting

Carrying out certain types of activities, as well as owning certain property, requires paying additional taxes and maintaining records. Read more about additional taxes for LLCs here. Read more about additional taxes for individual entrepreneurs here.

Separate accounting

When combining tax regimes, it is necessary to separate
income and expenses for the unified agricultural tax from income and expenses for other types of activities.
As a rule, there are no difficulties with the division of income. In turn, with expenses the situation is somewhat more complicated. There are expenses that cannot be clearly attributed either to the Unified Agricultural Tax or to other activities, for example, the salaries of employees who are engaged in all types of activities at the same time (director, accountant, etc.). In such cases, expenses must be divided
into two parts
in proportion to
the income received on an accrual basis from the beginning of the year.

Transition to other taxation systems

Individual entrepreneurs and organizations located on the Unified Agricultural Tax can voluntarily
switch to a different tax regime only from the beginning of the next calendar year.
To do this, they need to submit a corresponding notification to the tax authority before January 15 (clause 6 of Article 346.3 of the Tax Code of the Russian Federation). must necessarily
switch to the general taxation system from the beginning of the tax period in which the right to use the Unified Agricultural Tax was lost.
You can switch back to paying the Unified Agricultural Tax no earlier than one year
after losing the right to use it.