Procurement of Pesticides and VAT: Key Considerations for Agro Companies

Plant protection products are one of the procurement items for agro companies that should be considered not only in the production budget but also in VAT settlement planning. According to industry reports on delayed tax refunds, purchases of pesticides and other resources can form the company's tax credit.

This does not indicate specific changes in the pesticide market but serves as a reminder for buyers and sellers about the importance of agreed-upon terms and proper documentation.

What to check before procurement

• Compare the payment schedule for pesticides with the production calendar and available working capital.
• Pre-arrange with the supplier the necessary documents for proper accounting of the transaction.
• Clarify whether the product name and delivery terms align with the parties' agreements.

How to evaluate proposal conditions

When comparing offers from suppliers, assess not only the product price but also delivery times, payment terms, and completeness of accompanying documents. This helps the buyer match commercial conditions with farm needs, and the seller to clearly present proposal parameters on AgroPost.

The tax implications of a specific purchase depend on the transaction circumstances and the company's accounting. These should be reviewed with an accountant or tax advisor, rather than assuming they are automatically included in the pesticide price as a universal rule.

What the tax aspect means for pesticide procurement

When planning to acquire plant protection products, it is crucial to see the full picture: production needs, price, payment terms, and documentation. Transparent deal conditions facilitate comparison of proposals and enable more accurate procurement budget planning.