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April 02 2019

Importers of feed additives have complained about the addition of 2 billion rubles. VAT

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Importers of feed additives have complained about the addition of 2 billion rubles. VAT

The additional charge of VAT for the import of feed additives in Russia can lead to bankruptcy of companies and an increase in prices for Russian livestock products. The president of the Russian Grain Union, Arkady Zlochevsky, warned about this in a letter to Deputy Prime Minister Alexei Gordeyev.
Over the past 14 years, importers of feed additives have been paying VAT at a preferential rate of 10%, declaring their goods when imported as “products used for feeding animals”. They are included in the list of goods approved by a government decree, which are taxed at the 10% rate.
But since 2017, the Federal Customs Service has begun demanding importers of feed additives to recalculate VAT from 10 to 18% and pay the difference over the past three years, Zlochevsky Gordeeva writes (23 has a copy of the letter from 2019 in March). A different approach of the FCS and importers of feed additives in the calculation of VAT may cost the last 2 billion rubles, given in the letter calculations based on estimates of the Ministry of Finance.
Food products and vitamins are part of the premix - vitamin and mineral supplements to animal feed. According to the National Fodder Union, the turnover of the premix market in 2018 amounted to about 63 billion rubles, and the production volume was about 472,7 thousand tons. More than 90% of the ingredients for premixes are imported, said executive director of the union Sergey Mikhnyuk.
The situation may end in bankruptcy of suppliers of imported feed additives, which will lead to price jumps on Russian premixes and adversely affect the cost of domestic livestock products, warns the president of the Russian Grain Union and asks the deputy prime minister to help solve the problem.
RBC sent a request to the representative Gordeev.
Earlier, business ombudsman Boris Titov turned to Gordeev with a request to pay attention to the situation. He said that at the end of December 2018, the Ministry of Finance published a letter stating that when importing feed additives to them, the VAT rate 18% should be applied, and from 1 January 2019 - 20%. At the same time, according to the changes in the government decree of 6 December 2018, the feed additives were included in the list of goods subject to preferential VAT 10%, but the norm takes effect only from the new tax period, which comes 1 April 2019. According to the information of the business ombudsman, the FCS is currently checking the already completed transactions on the import of feed additives for retrospective additional VAT charges up to 2,5 billion rubles. Titov asked the vice-premier to initiate conciliation procedures in the government in order to save importers of feed additives from massive VAT assessment on such transactions.

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