Toll processing scheme
This scheme is suitable for the companies that own a production, are engaged in the production of goods, processing and storage of raw materials. The scheme of production on toll processing raw material is a production activity connected with processing on the terms of the contractor’s agreement of customer’s raw materials 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 imposition of VAT on imports of raw materials is regulated by clause 12 of Article 206 of the TCU. This clause stipulates that the conditional full exemption from taxation is applied to the operations for importing goods into Ukraine in the customs regime of processing in the customs territory - subject to the requirements and restrictions set forth in Ch. 23 of CCU. Therefore, if certain requirements are met - that is, when the processor receives a written permission from the customs authorities for processing, placing imported raw materials in the customs processing mode and timely export of finished products - the “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 a non-resident company is placed as the supplier to the tolling scheme, we will get a scheme that allows us to optimize taxes. The offshore company purchases raw materials and concludes a contract for the processing of toll processing raw materials. The cost of processing does not include VAT, since the export of service is carried out and a zero rate applies.
