Purchase of agricultural produce from a flat-rate farmer by a non-vat farmer


In a situation where an entrepreneur purchases agricultural produce from a flat-rate farmer exempt from tax on goods and services pursuant to art. 43 sec. 1 point 3 of the VAT Act, such expenditure must be properly documented by him. Read and find out how the acquisition of agricultural produce from a flat-rate farmer should be documented!

If the buyer is an entity that is an active VAT payer, then this type of transaction is documented with a VAT-RR invoice, which should be issued in two copies, the original should be received by the supplier (flat-rate farmer). Additionally, this type of invoice should contain the elements specified in Art. 116 sec. 2 of the VAT Act.

The matter is a bit more complicated in the case of the so-called non-VAT, because the act on tax on goods and services only specifies how such an event is to be documented by an active VAT payer - but it does not mention anything about entities exempt from tax. Therefore, it is worth referring to the Ordinance of the Minister of Finance of August 26, 2003 on keeping a tax book of revenues and expenses, § 14 of which 1 point defines the situations in which the entrepreneur may issue internal evidence. Among them, the legislator allows for the preparation of this type of document, when it is the purchase, directly from a domestic producer or breeder, of plant and animal products, not processed by an industrial method or processed by an industrial method, if the processing consists in ensiling plant products or milk processing or slaughtering animals for slaughter and post-slaughter processing of these animals.

The regulation also specifies the data that should be included in internal evidence, and these are:

  • date,
  • signatures of persons who made the expenses directly,
  • information specifying when purchasing - product name and quantity, unit price and value,
  • information specifying in other cases (than purchase) - the subject of economic operations and the amount of the cost (expenditure).

To sum up, in such a situation, an internal proof should be prepared and based on it, an entry in column 10 of the tax revenue and expense ledger - purchase of commercial goods and basic materials should be made. The list of purchased products with prices should be attached to the prepared DW.