GUIDELINES FOR CREATING AN ACCOUNTING MODEL FOR INTERMEDIATE RE-EXPORT TRANSACTIONS OF GOODS

Abstract

Re-export is an important transaction in international trade. It enhances trade between different counterparties, circumvents import quotas and avoids imposed restrictions and sanctions between countries. In accounting terms, it encompasses a set of interconnected business operations, the correct accounting of which is the result of in-depth knowledge and correct application of dynamically changing legal requirements and their current interpretations at a level that goes beyond the national level. In practice, this is a rather complex process, accompanied by unresolved issues in various directions (insufficient and timely interpretation of the regulatory acts regulating the matter; dynamics in the agreements concluded between the countries participating in the transaction; lack of specific tax treatment of the transaction in the Value Added Tax Act; lack of comprehensive scientific research on the subject, etc.). There are also discussions regarding the choice of appropriate accounting for the process. That is why the topic of accounting treatment of re-export transactions is considered relevant and significant, and its study is necessary for both specialized theory and practice. Referring to these circumstances, the scientific work attempts to critically analyze the existing definitions of intermediary re-export transactions of goods and on this basis formulates a definition for them, suitable for accounting needs. It reveals and systematizes the features of the targeted commercial transactions (complexity and multi-component nature, participation in their implementation of an intermediary-re-exporter, import and subsequent export of goods; provision/non-provision of additional processing of re-exported goods, etc.), which serve as a basis for the development of a comprehensive theoretical and applied model for accounting reporting. Variants are also provided for the model in order to expand its applicability.
By testing the proposed theoretical and applied model for accounting of intermediary re-export transactions of goods in a real environment, it is proven that it is flexible, adaptable, legally sound, practically applicable and methodologically sound. The thesis is also argued that its use in the accounting of re-exporting enterprises will significantly facilitate operational accounting work and increase its effectiveness and efficiency.