The only negative point in this case would be to still an open question about the need to pay VAT to the Treaty partnership, applying only USN. But this is a topic for another day … Situation 4. The buyer? No agent! Suppose that taxpayer, speaking the customer building, signed a building contract with contractors who have been provided for the contractor to perform the duty of using their own materials. Parallel (outside of the contract Contract) the taxpayer has realized a contractor of the construction materials.
At the same time realized the contractor building materials were purchased taxpayer at the expense of the target revenue in connection with which he has had complications with confirmation of the validity of expenses, which threatened crediting additional amount of significant amounts of VAT and income tax. Given that the probability of resolving disputes in favor of the taxpayer is not 100%, the taxpayer could be invited to the next version of its solution: pass the revised declaration of income tax and VAT, translating materials acquisition by the taxpayer in the plane of agency relations, ie when he carried out the acquisition of materials not their own, and on behalf of and at the expense of the principal (contractor). This will allow delete operations on purchase and sale of materials considered for the taxation of the taxpayer. In addition, if this agency fee amount equal to the amount set margins on implemented building materials, these operations do not entail the need for delivery of the specified declarations by the contractor. Proposed in this paper simulated options for preventing disputes may be applied to real tax disputes. However, it must be remembered that the introduction of any of the above options requires careful consideration, from the rationale for business purposes and to give reality committed transactions (including collateralized counterparties opportunities to sustain counter-checking), ending with meticulous design of contracts and contract documents that mediate these or other business transactions.