The new “tax” for farmers is fee to the Agricultural Protection Fund (FOR), which, although formally not a tax, practically amounts to an additional expense for entities operating in the agricultural sector. Who is affected by the new fee and what is its amount?
Fee for farmers on FOR: Who does it apply to?
Agricultural Defense Fund was created pursuant to Act of 2023 as a separate bank account managed by the National Center for Agriculture Support. Its main task is to collect funds needed to pay compensation to agricultural producers who have not received payment for their products as a result of the insolvency of buyers.
Therefore, they must pay fees to the Fund entities paying tax on goods and services that purchase, store or process agricultural products purchased directly from producers. The products in question are specified in Annex I to the Treaty on the Functioning of the European Union (e.g. eggs, meat, cereals, vegetables, fruits and nuts).
Fee for farmers on FOR: How much is it?
The fee for the Agricultural Protection Fund was set at 0.125 percent net value of purchased agricultural products. The value of these products is determined on the basis of VAT invoices and VAT declarations. For many companies, this will mean a significant financial burden, especially for larger transactions.
Fee for farmers on FOR: How to pay? (DATES)
Payments must be made for each quarter, until the last business day in the month following the end of the quarter – first deposit should be made until April 30, 2024. However, in accordance with applicable regulations, in the event of if the fee in a given quarter does not exceed twenty times the cost of the reminder (a total of PLN 16 multiplied by 20, i.e. PLN 320), there is no need to settle it immediately – in such a situation you can make the payment in the next quarter.
In addition to making the payment, it is also necessary submitting a declaration to the National Agriculture Support Center. This must be done by the 26th day of the month after the end of the quarter. This means that first declaration must be submitted until April 26, 2024. In case of if the fee for a given quarter is PLN 0, there is no need to submit a declaration. Importantly, failure to submit the quarterly declaration on time is subject to a fine PLN 60 for each day of delay.
