Experts are sure that this is necessary to support the development of seed production in the country, as well as to maintain the quality and range of hybrids and varieties.
“Today, due to the difference in the interpretation of the norms of federal legislation and regulatory legal acts, there are prerequisites for imposing an additional tax burden on agricultural producers,” the National Seed Alliance said. – According to the Tax Code of the Russian Federation, taxation at a rate of 10% is made when selling food products. However, the concept of “food products” itself has not been established for the purpose of applying the reduced VAT rate. At the same time, this rate applies only to goods intended for use in food and feed purposes.
And in this, according to experts, lies the danger. After all, if an agricultural producer (or an organization importing seeds into the territory of the Russian Federation) sells seeds processed and intended exclusively for sowing, then the application of a reduced VAT rate of 10% may be questioned by state authorities. Because of this, there is a risk of liability and additional tax assessment for a period of at least three years.
In connection with the potential tax requirements of the tax authorities, domestic seed growers may be charged additional VAT in the amount of 10% on the entire volume of seeds sold over the past three years. This is 24-30 million tons or about 30 billion rubles of additional taxes.
“In order to eliminate the risks of unreasonable tax claims being made against agricultural producers, the NSA prepared draft amendments to Decree of the Government of the Russian Federation No. 908 and Art. 164 of the Tax Code of the Russian Federation and sent them to the Ministry of Agriculture of the Russian Federation. We hope that the Ministry of Agriculture of the Russian Federation uses these projects for their further submission to the Government of the Russian Federation and the State Duma of the Russian Federation - concluded in the NSA.
We add that the support and introduction of this initiative into the current legislation will help minimize the risks for agricultural producers and the development of domestic seed production and agriculture in general.