№4(15)(2013)

Under considering accounting issues for postage expenditures we should pay attention to issue of accounting transactions of selling goods by mail

The Law of Ukraine "On Protection of Consumer Rights" from 12.05.1991, № 1023-XII (hereinafter - the Law №1023) at its time received a new version, and then sale of goods by post was legalized. We say "legalized" because new version of the Law №1023 legally fixed so-called remote sales. In particular, definitions were given to terms "contract signed on distance" and "means of distance communication".

Thus, contract signed on distance – is a contract agreed with seller (executor) and the consumer by means of distance communication, ie telecommunications networks, postal services, television, information networks, including the Internet, which can be used for contracts on distance.

In pursuance of the Law №1023 new Rules for sale of goods by post were developed (hereinafter - the Rules), which defined the term "remote sales". It refers to the mode of sale where selection of goods and their order does not coincide with direct transmission of selected goods to the buyer.

Principle of remote sales by post implies that seller specifies a list of consumer goods that are offered for sale by post. But we can not sell products that are prohibited by law, including those that can not be forwarded by post. Seller advertises himself the products offered for sale.

Paragraph 4 of the Rules defines that there is a contract between seller and operator of postal services under which the first undertakes to sell by post the goods of fine quality and safety, exchange of goods, application-defined orders in terms of the Rules, and operator at post offices will accept postal service claims from customers orders, send postal items application request to seller, and send postage of goods ordered to addressee (recipient) in accordance with the Rules of providing postal services. Postal facilities are engaged in providing services to sell goods by post to customers (Section 6 of the Rules).

Consumer buys goods by sending order application through object of postal service for business entity - seller. To purchase goods, which are listed in catalog, prospectus, special list of goods, etc., buyer (consumer) must complete and submit an application order in duplicate to postal service object. First is left with consumer, the second is given to post office to send it further for seller. Application order is filled on the form prescribed by business entity, which is issued free of charge to consumer. Postal worker, receiving application order, signs both copies indicating name and position, and affixes calendar stamp (seal).

After receiving application order, the seller packs ordered goods as a post package, seals it and takes to post office. Packaging and sealing posting may be done at post office for additional fee.

Rules stipulate that seller has to put in posting a payment document of legally established form and content the full amount of transactions performed, confirming sale, and if selling goods under guarantee terms - technical passport or other substituting document, where necessary, notation of date of sale and name of business entity certified stamp (seal) and signed by business entity.

We should keep in mind that sale of goods by post may be prepaid or paid afterwards, when the buyer pays for good when receives it. In this case, seller authorizes post offices to get specified value of goods from buyer. Usually in such cases, buyer pays cost of shipping the goods. If he does not receive an order, the seller must pay the costs to post office for storage and delivery of goods at both ends.

Let’s note that art. 702, 704 of CCU apply on contract of retail sales of goods by post. This agreement is performed after delivery of goods to the place agreed by agreement. Upon transfer of goods the buyer is entitled to withdraw from contract considering compensation of costs associated with commission action on contract for seller.

When selling merchandise by post, one should keep in mind that time gap will occur between dates of shipment, receiving by buyer and giving notice from post office on delivery of goods. It is important to determine income and expenditure, because same goods should be kept in separate sub-account "Goods in transit" (eg, sub account 287).

Income and expenses on sale of goods by post in accounting and tax accounting should be recorded on date of receiving goods by buyer and tax liability of VAT - on the date of delivery of goods to postal operators, as tax officers associate the date of occurrence with date of beginning moving goods to buyer.

Let us find out in what way buyers and sellers should account for costs of transporting goods (depending on who pays these costs).

Thus, in accounting, in accordance with Section 17 of RSA 16 "Expenses", costs related to operating activities that are not included in cost of products (goods and services) are divided into administrative costs, cost of sales and other operating costs. This list of administrative costs is provided in Section 18 of RSA 16. Among them we find cost of communication - postal, telegraph, telephone, telex, fax and so on.

In turn, art. 19 of RSA 16 lists cost of sales only for sellers, including postal costs, which can be attributed to "other costs associated with sale of products, goods".

Thus, debit of account 92 "Administrative expenses" or 93 "Selling expenses" records amount of recognized expenses, and their credit – write-offs on account 79 "Financial results".

Tax accounting for income tax costs for communication services (mail, telegraph, telephone, telex, facsimile and other similar expenses) provides to take into account when calculating tax object within administrative expenses directed at maintenance and management, and they are referred to other expenses in accordance with paragraph "G" of art. 138.10.2 of TCU. However, postage costs associated with sale of goods at the seller, can be considered as cost of sales, which are also included in other expense (paragraph "e" art. 138.10.3 of TCU). However, buyer can prove the following expenses as component of product costs, i.e. operating costs (par. 14.1.228, par. 138.1.1, par. 138.6, par. 138.8 of TCU).

Paragraph 138.5 of TCU determined that other costs are considered an expense in period when they were performed according to rules of accounting. In accordance with Section 138.2 of TCU, costs, taking into account to determine object of taxation are recognized on basis of primary documents confirming fulfillment of payment the expense by taxpayer, mandatory maintenance and storage which is provide with rules of accounting and other documents established by Section II of TCU (e.g., par. 44.2 of TCU). Costs not confirmed by calculation, payment and other primary documents, mandatory maintenance and storage, provided by rules of accounting and tax charges are not included in costs (par. 139.1.9 of TCU). In addition, costs must be related to economic activity of enterprise (par. 14.01.27, par. 139.1.1, par. 14.01.36 of TCU).

Thus, costs of communication services are taken into account when calculating tax object in accounting period when they were made, only if such costs are confirmed with relevant primary documents and their connectedness with economic activity.

Accounting for transactions on sale of goods by post