TRADE MARGIN: ACTUAL ECONOMIC ESSENCE AND LEGAL DEFINITION
Abstract
Introduction. The trade margin is the part of the retail price that is not legally established. The legal definition of the term “trade margin (surcharge)” does not contain all of the necessary essential features. The purpose of the article is to substantiate the components of the trade margin and to formulate its current definition.
Methods. Legal methods of scientific cognition (analysis, synthesis, deductive argumentation, generalization) and content analysis were used in the study.
Results. According to the current legislation, the trade margin is the difference between the purchase and sale (retail) value of goods and has two components: costs incurred when goods are moved within the enterprise and profit.
The analysis of the current procedure for forming the retail price of goods received from a supplier revealed the following structural components: 1) the purchase price of the good; 2) transportation, procurement and other expenses listed in item 9 of National Accounting Regulation (Standard) 9 “Inventories” 3) expenses that arise in the course of the movement of goods at trading enterprise; 4) profit; 5) value added tax; 6) excise tax. It is concluded that the official definition of the trade margin has lost its relevance and thus needs to be changed. In this regard, the new version of subparagraph 12 of part 1 of article 1 of the Law of Ukraine “On Prices and Pricing”. In order to simplify the perception of the text of regulatory legal acts published by the Ministry of Finance of Ukraine, brief logical definitions of the concepts of “purchase price” and “sale (retail) price”, the official definition of which is lacking, have been formulated.
Discussion. The legally established procedure for accounting for trade margins related to realized goods requires the critical analysis.
Keywords
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DOI: https://doi.org/10.35774/ibo2025.03-04.089
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