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How is turnover calculated in agricultural wholesale trade?
How is turnover calculated in agricultural wholesale trade?
Our company is engaged in the wholesale trade of agricultural products (fruits and vegetables). We purchase these products from producers and sell them wholesale, formalizing the transactions in accordance with the requirements of the Tax Code. In this case, when does our obligation to register for VAT arise – when the total turnover (the full value of the supplied goods) exceeds 200,000 manats, or when the trade margin exceeds 200,000 manats?
According to the State Tax Service under the Ministry of Economy, pursuant to Article 155.1 of the Tax Code, persons engaged in entrepreneurial activity whose volume of taxable transactions in any month(s) of any consecutive 12-month period exceeds 200,000 manats, including those engaged in catering activities who do not exercise the right provided by Article 218.1 of this Code (except for those specified in Articles 218.4.1, 218.4.2, and 218.4.3), are obliged to submit an application for VAT registration within 10 days from the date specified in Article 157.3.1 of this Code. For the purposes of this article, the volume of taxable transactions means the total turnover.
Additionally, please note that starting from January 1, 2022, for a period of 5 years, during the wholesale and retail sale of agricultural products (both domestic and imported), VAT is calculated on the amount of the trade margin.
Our company is engaged in the wholesale trade of agricultural products (fruits and vegetables). We purchase these products from producers and sell them wholesale, formalizing the transactions in accordance with the requirements of the Tax Code. In this case, when does our obligation to register for VAT arise – when the total turnover (the full value of the supplied goods) exceeds 200,000 manats, or when the trade margin exceeds 200,000 manats?
According to the State Tax Service under the Ministry of Economy, pursuant to Article 155.1 of the Tax Code, persons engaged in entrepreneurial activity whose volume of taxable transactions in any month(s) of any consecutive 12-month period exceeds 200,000 manats, including those engaged in catering activities who do not exercise the right provided by Article 218.1 of this Code (except for those specified in Articles 218.4.1, 218.4.2, and 218.4.3), are obliged to submit an application for VAT registration within 10 days from the date specified in Article 157.3.1 of this Code. For the purposes of this article, the volume of taxable transactions means the total turnover.
Additionally, please note that starting from January 1, 2022, for a period of 5 years, during the wholesale and retail sale of agricultural products (both domestic and imported), VAT is calculated on the amount of the trade margin.