Toll processing scheme
This scheme is suitable for companies owning a production company engaged in the production of goods, processing and storage of raw materials. Scheme of production on tolling raw materials – this is production activity related to processing on the terms of a contract of raw materials for the customer with the transfer of finished products to him.
Processing in the customs territory is the customs regime, according to which foreign goods are processed in accordance with the procedure established by law without applying to them measures of non-tariff regulation of foreign economic activity, subject to further re-export of processed products.
The list of documents that the owner of the raw materials (an authorized person) should provide to customs officers for obtaining a Permit is given in Part 2 of Article 141 of the Customs Code of Ukraine. In particular, you will need: a foreign agreement for processing, technological processing schemes, agreements for processing goods with other enterprises (if some other operations or a full cycle of processing will be carried out by another enterprise), other documents at the request of the owner.
The customs officials indicate the terms for processing in the Permit separately for each specific case. At the same time, the period established in the Permit may be extended, but the total processing time can not exceed 365 days. The extension of the processing period takes place on the basis of a written application of the enterprise to which the permit was issued, subject to the availability of documented reasons.
The customs regime for processing ends with:
- re-export of processed products or
- placing them in a different customs regime (for example, in the customs import regime).
In order to export (re-export) the finished products manufactured by the contractor from the processing raw materials of the foreign customer outside the customs territory of Ukraine, it is necessary to carry out its customs clearance.
Customs clearance of products obtained as a result of processing of goods placed in the processing mode in the customs territory of Ukraine, on their re-export, is carried out by the customs body specified in the Permit. A list of Ukrainian goods used during processing, indicating their quantity and cost is attached to the customs declaration for such products.
The taxation of VAT on the import of raw materials is regulated by clause 12 of Article 206 of the TCU. This clause provides that conditional full exemption from taxation applies to operations involving the import into Ukraine of goods in the customs regime of processing in the customs territory - subject to the requirements and restrictions established by Ch. 23 TCU. Therefore, subject to certain requirements — that is, when the processor receives written permission from the customs to process, place imported raw materials into the customs processing regime and timely export of finished products — “import” VAT should not be paid.
However, this does not apply to that part of the raw materials, which, according to the contract, is imported for payment for processing services. Such part of raw materials should be processed immediately in the customs import regime, accompanied by the payment of “import” VAT and other customs payments.
If we supply a non-resident company with a supplier to a scheme, we will get a scheme that allows us to optimize taxes. An offshore company buys raw materials and concludes a contract for the processing of tolling raw materials. VAT is not included in the cost of processing, since services are exported and a zero rate is applied.