Barter cooperation as an empty pocket

Service Business

Many companies in the initial period of operation struggle with a considerable problem, which is the limited amount of funds that can be spent on the so-called business start-up. In such a situation, barter cooperation turns out to be extremely useful and saving from oppression, which allows you to run and develop your business without the need to involve any cash.

What is barter cooperation?

Barter according to the statutory definition means a non-cash exchange of goods or services. Such an exchange presupposes that each party seeks to ensure that the values ​​of the services or goods exchanged by both parties compensate or be of a similar value.

History of barter cooperation

Barter is the oldest form of exchange. It was used especially in ancient times, when money was not used in trading. Currently, this type of cooperation is still present on the market and is popular, for example, in the case of international trade, especially in situations where the parties to such agreements are entities from countries with non-convertible currencies.

What can be mentioned as part of barter cooperation?

As part of barter cooperation, both goods (goods for goods) or services (service for services) may be exchanged. It is also possible to exchange goods for a service. However, one condition must be met - the values ​​of the products exchanged are of similar value.

Barter cooperation - application and formalities

Nowadays, barter cooperation is used for the purpose of trade. It is a way to bypass currency restrictions or to trade with countries that are struggling with a shortage of money resources.

The barter agreement is an agreement concluded between the parties for the exchange of goods or services of identical or similar value. This type of contract is not governed by the provisions of the Civil Code, therefore there is no exact model. Although it is non-cash, it should be concluded in writing and signed by each of the parties.

What should a barter contract contain?

Despite the lack of legal requirements as to the content of a barter contract, it should contain clearly defined the following elements:

  • place and date of concluding a barter cooperation agreement,
  • specific parties to the contract - full names and their data,

  • the type and value of the goods (or services) being the subject of the barter agreement,

  • the deadline for the performance of services likes the terms of delivery of products to which a given contract applies,

  • terms / rules in the event of failure of any of the parties to the contract,

  • conditions / possibilities to withdraw from the contract,

  • indication of the examining court in the event of a possible dispute,

  • listed attachments,

For the comfort of both parties, the contract can include:

  • a dictionary explaining the terms used in the contract,

  • the rights of each party to the contract, if they are required for the performance of the contract,

  • indication of the consequences of failure to comply with the contract.

Barter cooperation and the tax office

Even though barter relationships are cashless exchanges, similarly to cash transactions, they have tax consequences. The only improvement in this form of cooperation is the settlement between contractors without the need to use financial resources.

Pursuant to the Act on tax on goods and services, such a contract is subject to taxation. This means that both parties are required to issue a VAT invoice.

In the case of concluding barter cooperation agreements, it is particularly important to correctly evaluate mutual benefits so that it cannot raise any doubts of the tax office.