Agency agreement: content and accounting

Many companies, by virtue of their specific activities, use an agency contract when working with each client (used by entrepreneurs and legal entities, often by real estate agencies). An agency contract or an agency contract is also useful to other organizations: when there are not enough employees to fulfill the entire volume of orders, they hire a specialist from outside.

Of course, the agency contract as a type of contract has its own characteristics and its content must meet the standards described in the law for all types of contracts (article 432 in the civil code) and for certain types (federal laws). Despite the fact that there are no specific requirements to the agency contract in the law, it is possible to single out the following significant features of it (articles 1005-1011 in the civil code).

In an agency contract, a person carrying out a certain activity for a fee is listed as an agent. He can act on behalf of the company (principal), with which he concluded the contract, in matters of his competence. If it is a client and a real estate agency, for example, a realtor acts as an agent. Representative of the principal (agency).

The main distinctive feature of the contract is agency reward. If it is not prescribed, the contract can be considered invalid (difficult, but possible). Since the payment for the work of the agent is an essential condition of the contract, it must be registered and testify about the agreement reached between the parties in important issues of contractual relations (unless the issue of paying for works is not essential ?!)

As in any other agreement, the agency must have the subject of the contract (the activity expected from the agent), the validity period. These clauses of the agency contract are also considered essential conditions of contractual relations. It should be added to it sections on the responsibilities of the parties and their rights. For example, what consequences will occur if one of the parties refuses to fulfill their obligations under the treaty.

The agency contract also differs from other types by the fact that to confirm the work performed, the agent draws up an acceptance certificate or a report. Only after the signing by the principal of this act (after acceptance of the report) the works are considered to be completed and payable in the amount of agency fees. Organizations (and this, as a rule, service agencies), carrying out their activities for the population through agency agreements, do not make such acts.

Signed contracts to organizations that work exclusively with clients through them should be stored and maintained in the accounting department (to confirm costs or revenues). The account of agency contracts is made as follows.

First. The tax code clearly states that under agency agreements (ie with agency fees), VAT is charged.

The second. In the event that the firm takes an agent from the outside, the payment of its services is made as with a "debtor or creditor". The basis for the calculation with the agent is his report on the work performed or the act of acceptance of work (signed by the agent and in case of approval by the principal - the firm of his employer).

If the firm works with clients on the basis of agency contracts - the agency fee is considered the income of the enterprise. At the same time, taxes on profits can be reduced by expenses (but they need to be confirmed by official documents), if you spend this amount, as paid by the customer solely on the company's expenses. Taxes are not levied on the amount of expenses.

Thus, the agency contract is a convenient form of cooperation, and from the point of view of the accounting department, which also makes it possible to make the terms important for the parties to it.