ESKH - individual entrepreneur

When moving to the USCN, the individual entrepreneur is exempted from paying the three main taxes by replacing it with a single rate. So, a single agricultural payment includes taxes:

• To value added;
• at a profit;
• On the property.

Thanks to the ESKN, an individual entrepreneur can no longer take care of paying VAT. However, there are cases that are an exception. An example is the supply of imported raw materials for production. Value added tax is accrued, as the goods cross customs.

Of course, the taxation of individual entrepreneurs is not limited to three basic taxes. Other mandatory payments to the budget are subject to settlement, accrual and payment in accordance with the procedure established by the Tax Code. In this regard, the business entity is required to calculate the tax amount on an approved date and transfer it to the settlement account of the relevant budgetary organization, promptly report the impossibility to make payments, keep a clear chronology of all transfers to the budget for the last several years and their storage.

Very convenient ESKN: an individual entrepreneur has the opportunity to simplify the scheme of filling out the documentation, that is, significantly reduces the amount of clerical work. In addition, it becomes easier to keep accounts, and for a small company this is a weighty advantage. However, not all economic entities engaged in agriculture have the right to transition to a single taxation. So, according to the current legislation, such a right can be used by enterprises that:

1. Engaged in the sale, production and processing of products included in the general list, officially approved by government agencies.

2. Receive a sufficient amount of profit, which makes it possible not only to cover the costs incurred, but also to ensure the next cycle of the production process. The tax authorities require that the revenue side be at least 70%.

3. They are not owners or co-founders of companies related to the sphere of gambling. The institutions that produce excisable goods and budget organizations are also not subject to the transition to a single tax. If an entrepreneur organizes a firm that provides services for processing agricultural products, then it is not worth it to claim the accrual of the ECN.

The transition to an individual entrepreneur can take place immediately after registration. To submit an application to the relevant authority, it is given five working days from the moment of receiving the official status. The entrepreneur annually confirms the taxation system, therefore at the beginning of each reporting period he can write an application for the calculation of a single tax in the future. State bodies have established a deadline for submitting an application from October 20 to December 20 of the reporting period. Transition from the simplified to the usual system of taxation, the economic entity is entitled to exercise freely and at its own discretion.

A single agricultural tax is a huge help in the activity of a small enterprise. However, this advantage is not only difficult to obtain, but it is not easy to retain. In case of violation of at least one requirement for such organizations, the entrepreneur will have to notify the tax authority within one month and make a full recalculation of the three replaced taxes. Then he has to pay the difference, taking into account the penalty fee for delay. Only in this way the company will be able to avoid charging serious penalties. If everything is done on time, then the enterprise will only use the resources of the reserve fund, but will maintain a stable production.