Term "trade sphere" means not so much activity as social relations in which subjects of "trade activity" enter. For example, relations related to the conclusion of contracts aimed at the sale of goods are the civil law relations.
Please note that concepts of "trade" and "trade activity", within a scope of economic activity, are concepts that are different in their meaning, because "trade activity" is a broader concept than "trade" and includes, in addition to peculiarities that belong exclusively to it, and those signs that are inherent in the "trade" concept.
Article 263 of the Economic Code of Ukraine stipulates that "economic and commercial activity is activity carried out by business entities in commodity circulation, aimed at the sale of products for industrial and technical purposes and consumer goods, as well as auxiliary activities that ensure their sale by providing relevant services".
Tax Code of Ukraine interprets "trading activity" as a retail and wholesale trade, activity in trade and production sphere for cash and non-cash settlement.
State Standard of Ukraine 4303:2004 stipulates that the "Retail and wholesale trade", "trading activity - proactive, systematic, performed at one’s own risk for profit, activities of legal entities and individuals regarding the purchase and sale of goods to the end consumers, or intermediary operations, or activity of providing agency, representative, commission and other services in promotion of goods from producer to consumer".
Part 3 Article 263 of the Economic Code of Ukraine stipulates that economic and commercial activity can be carried out by economic entities in the following forms: material and technical supply and sales; energy supply; provision; wholesale; retail trade and public catering; sale and lease of production means; commercial mediation in the implementation of trade activities and other auxiliary activities to ensure sale of goods (services).
Normative and legal definition of each of the above specified forms is established by the Economic Code of Ukraine, Civil Code of Ukraine and relevant legislative acts.
Under such form of trade activity as "Material and technical supply and sales", including products of industrial and technical purpose and consumer products, both of own production and purchased from other economic entities, should be understood the supply of goods, which in cases, provided for by the Economic Code of Ukraine, is carried out on the basis of sales contracts. Legislation may provide for the specifics of supply of certain types of products for industrial and technical purposes or consumer products, as well as a special procedure for supply of products for priority state needs.
At the same time, "Production" is a process of creating material and social goods necessary for existence and development; "Trade" is a process of exchanging goods, services, values and money. In a broad sense, it is a type of business activity related to the purchase and sale of goods.
Law of Ukraine № 265/95-VR as of 06.07.1995 "On the use of registers of settlement operations in trade, public catering and services" equally extends its effect to both the sale of goods of own production and the sale of goods purchased from other business entities, as is stated in the preamble of the specified Law.
