What is VAT and why is it needed: in simple words about the complex. How to pay VAT to the budget Invoiced VAT

Value added tax or VAT is an indirect payment to the budget for each product or service, which is paid as enterprises sell their products. The cost of this tax is always included in the selling price, so it is generally accepted that it is paid by the end consumer.

The main advantage of using a system with value added tax is the elimination of a cascading increase in price at each stage of sales due to the withdrawal of payments from each link, including intermediaries.

Invented by the Frenchman Maurice Lauret back in 1954, and tested in colonial countries, the system is now used in 137 countries around the world. The exception among highly developed countries is the United States, which uses a sales tax system. VAT rates in different countries range from 5 to 30%; in Russia, since 2004, payment for the main deduction is 18%, for goods on a special list (preferential) - 10%.

Payers of value added tax

The chain of product sales stretches from the manufacturer to wholesale enterprises, from them to individual entrepreneurs and retail enterprises, only after that the products end up in the hands of the consumer. In the VAT system, it is important that the tax is collected once, and then its value is transferred throughout the chain.

VAT payers are recognized:

Financial and industrial enterprises, regardless of their form of ownership and affiliation, carrying out commercial and production activities are producers of goods and services.

Enterprises with foreign capital conducting production and commercial activities in the country

Insurance agencies and banks licensed to operate

Private enterprises created with the right of full management, whose activities include production and wholesale and retail sales of goods

Branches and subsidiaries that do not have a legal entity, but carry out the production and sale of services and goods

Individual entrepreneurs whose sales of goods provide a turnover of at least 2 million rubles per year

Individual entrepreneurs and organizations transporting goods between the countries of the Customs Union

Non-profit organizations involved in the sale of goods and services

In Russia, taxes are not collected from the organizers of international competitions and their foreign partners. Thus, all activities related to the Olympic Games in Sochi and the Eurovision Song Contest in Moscow were not subject to value added tax. Organizations and entrepreneurs may be exempt from paying VAT in cases where their revenue does not exceed 2 million rubles.

Objects of taxation

According to the Tax Code, the objects of VAT taxation are not the services and goods themselves, but transactions associated with a change of ownership:

Sales of services and products on the territory of the Russian Federation, including operations for the sale of collateral, transfer of goods and work performed, property rights

Import of goods into the territory of the Russian Federation

Construction and installation works

Purchasing goods and services for own consumption

Actually, value added tax is imposed on the sale of all goods and services from manufacturers and participants in international trade within the Customs Union, with the exception of situations included in the list of transactions that not subject to taxation:

Sales of medical products and equipment of domestic and imported production

Trade in goods and literature for religious purposes

Provision of medical services, with the exception of cosmetic, sanitary-epidemiological and veterinary private institutions. State organizations providing this range of services are not subject to value added tax.

Sales of food products by public canteens and buffets directly at enterprises

Sale of postage stamps and postcards, excluding collectibles, envelopes and lottery tickets

Sales of goods in duty-free shops

Sale of coins recognized as a payment instrument in Russia, exchanging them for paper

Providing commercial leases to foreign citizens and organizations accredited on the territory of the Russian Federation

All banking operations, with the exception of collection

Research and development activities carried out at the expense of the state budget

Operations with cash loans and securities turnover

Providing firefighting services and assistance to people in need

Carrying out diagnostics and repairs of production equipment abroad, previously purchased from foreign partners

Activities of lawyers

VAT is one of the indirect taxes, payment of which is made in favor of the state. It is charged on goods upon sale or upon provision of services, and may be debited several times, depending on the number of trade transactions performed. Explanation of VAT - value added tax. It is charged on goods and services, and its volume is a certain percentage of the cost of the product. In particular, in Russia, starting from 2019, its size increases to 20%.

In addition to Russia, VAT exists in 130 countries around the world. In states where it does not exist, a sales tax is provided, which is almost a complete analogue. Let’s try to look in more detail and with examples at what VAT is for dummies, since this contribution to the state is paid by every citizen almost every day, when purchasing goods in a store, receiving various services, etc.

Why is VAT needed?

This type of tax collection is sent directly to the state budget and in practice, is the only, most effective and efficient type of collection from producers and end buyers. In practice, accrual for the production of one specific group of goods can be made several times:

• When selling industrial raw materials;
• When selling a finished product to a retail chain;
• When selling in a retail network to the final buyer.

Thus, in some cases, payments can be made up to three times at several production stages. This reduces the risk of tax evasion. In comparison with the same sales tax, which is paid by the end buyer, this cascade scheme is more effective for filling the budget and even if one of the parties evades payment, it is compensated by the other party participating in the subsequent or previous stage of sales of products or services.

Who pays VAT

Value added tax is paid:

• Industrial-production, municipal, economic enterprises and organizations and their branches that do not have their own registration, but have current accounts;
• Banks, insurance organizations;
• Individual entrepreneurs, citizens involved in family business;
• Foreign enterprises operating in the Russian Federation;
• Non-profit organizations when carrying out economic or commercial activities.

In fact, depending on the chosen taxation system, accrual is made for any financial or business transaction that affects the change in working capital, authorized capital with the subsequent crediting of funds to the organization’s personal accounts.

Individuals who are end consumers pay a tax deduction that is already included in the cost of the purchase. If you were wondering what VAT is on a check, then this is the same added value - a percentage paid to the state budget.

Data on added value is entered into a special declaration and submitted to the Federal Tax Service office in the region of registration of the company or individual entrepreneur. Delivery must be made no later than the 25th day of the month following the close of the reporting period. In other words, delivery is made four times during the year at the close of each quarter. In case of delays or errors in filling out the Federal Tax Service declaration, a special check of the payer may be initiated.

Types and volumes of payments

The amount of added value accrued depends on the social significance of the goods. In particular, the following options are provided:

• 20% on goods of low social significance;
• 10% - goods of average social significance, these include food products included in the minimum consumer set;
• 0% is a product group that has high social and humanitarian significance.

You can learn more about the products included in each group in the materials presented on the website or by going to the Federal Tax Service website, where this information is also provided. The gradation of tax deduction percentages is designed to protect buyers from excessive price increases, as well as to support individual production sectors, providing them with competitive development conditions. Also, an increased rate is applied to goods imported from abroad.

In countries where sales tax is applied, the same rules apply when determining its amount. For example, in the United States, the percentage is determined by federal and state authorities, so its rate can vary greatly depending on the region of the country and other conditions. In Russia, the percentage has the same value across regions, but varies for different product groups.

Advantages and disadvantages

The deduction of VAT at several stages of sales or production, as well as the system of conducting this type of taxation itself, has its advantages and disadvantages. The advantages include:

• The risk of payment evasion when selling products is reduced - each party purchasing raw materials, finished products, etc. pays the additional cost. thus, deductions to the budget are made several times, and not just once;
• The level of tax burden on individual groups involved in the production and final consumption of goods is reduced by distributing the burden;
• The system for monitoring tax deductions is simplified by making it a separate parameter when generating reports.

The disadvantage is the possibility of the product becoming more expensive due to the fact that the manufacturer and seller include their own costs for paying for added value at different stages in the final price.

We hope the information above helped you understand what VAT is, who pays it and when. It appeared in the Russian tax system in 1992, and is regulated by the provisions of Chapter No. 21 of the Tax Code of the Russian Federation.

Who is required to pay VAT? First of all, organizations and individual entrepreneurs are required to pay VAT under the general taxation system. VAT for organizations using the simplified tax system. Tax agents and VAT.

Organizations on OSNO

First of all, organizations and individual entrepreneurs are required to pay VAT under the general taxation system. Every quarter, such companies submit VAT reports, and since 2014 this must be done electronically via the Internet. The Kontur.Extern system helps to cope with this task. Everything is simple in Externa - just come in and start working. The extern will review your report before submitting and point out formatting errors if any. Even if you are not at the computer, the system will notify you about the status of the report via SMS.

Organizations combining UTII and OSN

If a company combines UTII and the general taxation regime, the income it receives from activities on the “imputed” basis is not subject to VAT. In order not to pay tax, it is necessary to keep separate VAT records for OSN and UTII, observing the following conditions:

• if, for activities under UTII, an organization or individual entrepreneur buys goods (services) with VAT, then the amount of VAT must be taken into account in the cost of these goods (including fixed assets and intangible assets);
• If, for activities on the OSN, an organization or individual entrepreneur purchases goods (services) with VAT, then the amount of VAT is deducted in accordance with the Tax Code of the Russian Federation.

But there are some costs for which it is impossible to separately account for VAT for UTII and VAT for OSN. Such costs include, for example, office rent or utility bills. In this case, the amount of “input” VAT should be distributed in proportion to how these goods (services) are used in each type of activity.

Also, do not forget to submit a VAT return and pay tax every month, no later than the 25th day of the month following the reporting quarter.

VAT for organizations using the simplified tax system

Entrepreneurs using the simplified tax system are exempt from paying a number of taxes: in particular, organizations do not pay profit tax and VAT, and individual entrepreneurs do not pay personal income tax and property tax. But there are still a number of exceptions in which LLCs and individual entrepreneurs using the simplified tax system are required to pay VAT:

• when importing goods into the territory of the Russian Federation;
• if the taxpayer issues an invoice that includes VAT;
• when carrying out operations under a joint activity agreement or a property trust management agreement on the territory of Russia.

In these situations, it is necessary to pay VAT and submit a VAT return.

If the counterparty (supplier) indicates VAT on the simplified tax system in the invoice, then the recipient of the goods on the simplified tax system can safely pay this invoice, since VAT in this case is the supplier’s tax. A buyer using the simplified tax system (regardless of the taxation option) is not required to pay tax and submit a VAT return. Goods purchased with VAT must be sold excluding VAT.

Organizations on the simplified tax system, UTII, patent, which issued an invoice to the buyer with VAT

Organizations and entrepreneurs using the simplified tax system are not required to pay VAT, but sometimes they are faced with a buyer’s request to issue an invoice with VAT. This is not prohibited, but then it will be necessary to pay this amount of VAT and submit a declaration. This can only be done electronically.

Tax agents

VAT tax agents are required to pay value added tax to the budget and submit a declaration. The duties of a tax agent can also be performed by companies in special regimes.

• purchased goods (services) from foreign companies that are not registered for tax purposes in the Russian Federation;
• sells goods (services) of foreign companies that are not registered in Russia under intermediary agreements;
• rents or buys state property;
• buys property of a bankrupt, etc. (less common cases are described in).

Intermediaries are required to keep a log of invoices

Those agents and commission agents who apply special tax regimes and sell goods (services) of a principal registered under the OSN are required to keep a log of invoices received and issued. These journals must be submitted to the tax office electronically. Reporting in this way must be done no later than the 20th day of the month following the reporting quarter.

If a company works under intermediary agreements with a foreign company that is not registered in the Russian Federation, then it is obliged to send an accounting log received and issued invoices together with the VAT declaration in electronic form.

To make sure that you have submitted all reports and paid all necessary taxes, use the Kontur.Extern online service to request an official reconciliation report with the tax office, which will reflect all the information about your mutual settlements, submitted declarations and payments credited to the budget.

Value added tax(VAT) is a federal, indirect, non-cumulative tax levied on every act of sale, from the production cycle to the sale to the final consumer.

The tax is established by Chapter 21 of the Tax Code of the Russian Federation and has been levied since 1992.

Added value can also be represented as the difference between the amounts of receipts for products sold and costs incurred (material and depreciation):

Based on these methods of determining added value, four different ways of taxing it can be used:

• direct additive, which involves applying the tax rate to the result of adding the components of added value;
• indirect additive, based on applying a rate to each of the components;
• direct subtraction method, based on the application of a rate to the difference in sales and purchase prices;
• indirect subtraction method, or the offset method on accounts, when the rate is applied separately to the sales price of products and to the purchase price of raw materials, materials, etc.

If we conditionally take the tax rate to be , then the tax calculation, according to the listed methods, will look like:

Not all possible methods of calculating VAT are equally convenient and practically feasible. Thus, a significant disadvantage of direct and indirect additive methods is that if it is necessary to apply different tax rates to different goods, it is necessary to maintain very complex analytical and accounting records with a breakdown of the components of added value depending on their relationship to a specific product. Accordingly, the tax administration system becomes much more complicated.

When calculating value added tax, the fourth method is used. Its use does not require determining the actual added value. Instead, the rate is applied to its components (costs (other than wages) and products sold).

This method is convenient because:

• allows you to apply the tax rate directly to the transaction, which provides technical and legal advantages;
• The presence of an invoice, which reflects taxes, becomes the most important and fundamental moment of completing a transaction and information about tax obligations. The use of an invoice indicating the completed transaction makes it possible to control the movement of goods for the purpose of tax audit.

When using the first and second methods of calculating tax, it is necessary to determine profit. But since in the balance sheets of companies, completed sales transactions are not divided into types of commodity products in accordance with the current tax rates, and are not distinguished by types of goods purchased, then in this case only a single value added tax rate is applicable. The fourth method allows you to use a differentiated tax rate.

Thus, the fourth method, or invoice method, is the most practical. The fiscal advantage of VAT lies in the fact that every seller throughout the entire chain of movement of goods at the time of sale is a payer of value added tax.

The difference between the VAT received from the buyer and the VAT previously paid to suppliers when purchasing goods for their production is included in the budget. The meaning of such a scheme for calculating and paying tax is to tax the amount of added value (wages, interest, rent, profit) at each stage. The mechanism of action of the value added tax is relatively neutral in relation to the interests of entrepreneurs, since it involves the reimbursement of VAT paid by the taxpayer by each subsequent consumer, falling as a result on the final consumer of the product (work, services) - the population. Highlighting added value in each sales link is important:

• the price of the product is clearly limited, which encourages the manufacturer to reduce production costs;
• in the process of tax calculations, the state receives information about the rate of turnover of industrial and commercial capital, thereby facilitating the tasks of macroeconomic programming;
• The state receives revenues even before the goods are sold to the public - the only and final payer of VAT.

VAT allows the state to receive income at each stage of implementation, providing the budget with a stable source of income. For political and economic reasons, many countries set multiple tax rates. Reduced rates apply, as a rule, to food products and medical services, and increased rates apply to luxury goods.

In addition, there is a wide range of goods for which the interest rate is zero (for example, for exported goods (works, services)).

Organizations that are foreign organizers of the Olympic Games and Paralympic Games are not recognized as taxpayers in accordance with the Federal Law “On the organization and holding of the XXII Olympic Winter Games and the XI Paralympic Winter Games of 2014 in the city of Sochi, the development of the city of Sochi as a mountain climatic resort and amendments to certain legislative acts of the Russian Federation” in relation to transactions carried out within the framework of the organization and holding of the XXII Olympic Winter Games and XI Paralympic Winter Games of 2014 in Sochi.

In addition, Art. 145 of the Tax Code of the Russian Federation grants the right to an organization and an individual entrepreneur to be exempt from the obligations of a VAT payer if, over the three previous consecutive calendar months, the amount of revenue from the sale of goods (work, services) of these organizations or individual entrepreneurs, excluding tax, did not exceed a total of two million rubles.

Exemption cannot be granted to organizations and entrepreneurs selling excisable goods or importing goods into the customs territory of the Russian Federation.

The right to release is granted for 12 consecutive calendar months upon notification. If during the period in which organizations and individual entrepreneurs use the right to exemption, the amount of proceeds from the sale of goods (work, services) excluding tax for every three consecutive calendar months exceeded two million rubles, or if the taxpayer sold excisable goods, taxpayers starting from On the 1st day of the month in which such an excess occurred or the sale of excisable goods was carried out, and before the end of the exemption period, the right to exemption is lost.

Persons exercising the right to exemption must submit the appropriate written notification and documents confirming the right to such exemption to the tax authority at their place of registration:

• extract from the balance sheet (represented by organizations);
• extract from the sales book;
• an extract from the book of income and expenses and business transactions (represented by individual entrepreneurs);
• a copy of the log of received and issued invoices.

For organizations and individual entrepreneurs who have switched from a simplified taxation system to a general taxation regime, a document confirming the right to exemption is an extract from the book of income and expenses.

The specified notification and documents are submitted no later than the 20th day of the month from which these persons exercise the right to release. Organizations and individual entrepreneurs who have sent a notification to the tax authority about the use of the right to exemption (about extension of the exemption period) cannot refuse this exemption before the expiration of 12 consecutive calendar months, except in cases where the right to exemption is lost by them in accordance with the grounds , established by the Tax Code of the Russian Federation.

After 12 calendar months, no later than the 20th day of the following month, organizations and individual entrepreneurs who have used the right to exemption submit to the tax authorities:

• documents confirming that during the specified exemption period, the amount of proceeds from the sale of goods (work, services), excluding tax, for each three consecutive calendar months in total did not exceed two million rubles;
• notification of the extension of the use of the right to exemption over the next 12 calendar months or of refusal to use this right.

The amount of tax for the month in which the above excess occurred or the sale of excisable goods and (or) excisable mineral raw materials was carried out is subject to restoration and payment to the budget in the prescribed manner.

Organizations (or entrepreneurs) that have received the right to be exempt from VAT include “input” VAT in their costs, i.e., amounts of “input” VAT can no longer be claimed by them for deduction.

Value added tax objects

The object of VAT taxation is transactions for the sale of goods (works, services) on the territory of the Russian Federation, and it is important to know the conditions under which the place of sale is the Russian Federation (Table 9).

Table No. 9 Place of sale of goods (works, services)

The list of specific conditions for exemption from VAT for individual transactions is quite diverse and is specified in relation to the relevant goods (works, services), an exhaustive list of which is given in Art. 149 of the Tax Code of the Russian Federation. These include in particular:

• banking operations, with the exception of collection operations;
• sale of coins made of precious metals (except for collectible coins);
• medical services provided by medical organizations for the population, with the exception of cosmetic, veterinary, sanitary and epidemiological services (except those financed from the budget).

The moment of determining the tax base for the sale of goods (works, services) is the date on which the tax base is recognized as formed in order to calculate and pay tax on it.

The moment of determining the tax base for VAT is the earliest of the following dates:

• day of shipment (transfer) of goods (works, services), property rights;
• day of payment, partial payment for upcoming deliveries of goods (performance of work, provision of services), transfer of property rights.

For some operations there are specifics in determining the moment of determining the tax base:

The tax base for value added tax is calculated by taxpayers independently. The tax base is determined by the taxpayer depending on the specifics of the sale of goods (work, services) produced by the taxpayer or purchased externally.

When taxpayers apply different tax rates when selling (transferring, performing, providing for their own needs) goods (work, services), the tax base is determined separately for each type of goods (work, services) taxed at different rates. When applying the same tax rates, the tax base is determined in total for all types of transactions taxed at this rate.

The tax base when a taxpayer sells goods (work, services) is determined as the cost of these goods (work, services), calculated on the basis of prices determined in accordance with Art. 40 of the Tax Code of the Russian Federation, taking into account excise taxes (for excisable goods) and without including VAT.

When a taxpayer receives payment or partial payment for upcoming deliveries of goods (performance of work, provision of services), the tax base is determined based on the amount of payment received, taking into account tax.

For VAT calculation, a base rate of 18% is applied. A preferential rate of 10% is applied to certain food products (except for delicacies), goods for children, periodicals and book products related to education, science and culture, medicines and medical products.

The Tax Code also provides for a 0% rate, applied in particular when selling:

• goods exported under the customs regime of export, as well as goods placed under the customs regime of a free customs zone, subject to the submission of the relevant documents to the tax authorities, as well as works (services) directly related to their production and sale;
• works (services) directly related to the transportation or transportation of goods placed under the customs regime of international customs transit;
• services for the transportation of passengers and luggage, provided that the point of departure or destination of passengers and luggage is located outside the territory of the Russian Federation, when processing transportation on the basis of unified international transportation documents;
• goods (works, services) in the field of space activities;
• goods (works, services) for the official use of foreign diplomatic and equivalent missions or for the personal use of diplomatic or administrative and technical personnel of these missions, including members of their families living with them, if the legislation of the relevant foreign state establishes a similar procedure, or such a norm provided for in the international treaty of Russia.

To justify the application of a 0% rate in relation to exported goods (work, services) and tax deductions, taxpayers must submit the established documents to the tax authorities (Article 165 of the Tax Code of the Russian Federation).

The amount of tax is determined by taxpayers as the product of the corresponding tax rate by the tax base, and in case of separate accounting - as the amount of tax obtained as a result of adding the amounts of taxes calculated separately as percentage shares of the corresponding tax bases corresponding to the tax rates. The taxpayer has the right to reduce the total tax amount by tax deductions.

Tax amounts presented to the taxpayer upon purchase of goods (work, services) are subject to deductions. Tax deductions are made on the basis of invoices.

The total amount of tax is calculated based on the results of each tax period in relation to all transactions recognized as an object of taxation, the moment of determining the tax base of which relates to the corresponding tax period.

The tax period is set as a quarter.

Payment of tax on transactions recognized as an object of taxation on the territory of the Russian Federation is made at the end of each tax period based on the actual sale (transfer) of goods (performance, including for one’s own needs, work, provision, including for one’s own needs, services) for the expired tax period in equal shares no later than the 20th day of each of the three months following the expired tax period.

When importing goods into the customs territory of the Russian Federation, the amount of tax is paid in accordance with customs legislation.

The amount of tax payable to the budget for sales transactions (transfer, execution, provision for one’s own needs) of goods (work, services) on the territory of the Russian Federation is paid at the place of registration of the taxpayer with the tax authorities.

Tax agents (organizations and individual entrepreneurs) pay the tax amount at their location.

In cases of implementation of work (services), the place of implementation of which is the territory of the Russian Federation, by taxpayers - foreign persons who are not registered with the tax authorities as taxpayers, tax payment is made by tax agents simultaneously with the payment (transfer) of funds to such taxpayers.

A bank servicing a tax agent does not have the right to accept an order from him to transfer funds in favor of specified taxpayers if the tax agent has not submitted to the bank an order to pay tax from an account opened with this bank if there are sufficient funds to pay the entire amount of tax.

Taxpayers (tax agents) are required to submit a tax return to the tax authorities at their place of registration no later than the 20th day of the month following the expired tax period.

Judging by the forums of entrepreneurs, most questions arise regarding VAT. With the help of this article, you are unlikely to be able to fill out a VAT return, but you will learn all the most important things about tax: who pays, how to calculate and receive a tax deduction.

Anastasia Voloshenko

editor of Tinkoff business

Anton Dybov

tax expert

What will you learn

What is VAT

VAT - value added tax. It is paid when the company sells goods, works, services and property rights.

Sells goods, works, services or property rights. For example, a company sold tomatoes or office space - it is obliged to pay VAT.

Donates goods free of charge, works, services or property rights. For example, one legal entity transfers an industrial workshop to another free of charge or gives a microwave oven as a gift in a store when buying a refrigerator - VAT must be paid on all transactions at market value.

Imports goods into the territory of the Russian Federation from abroad. For example, he brings chocolate from Japan or clothes from China to later sell in Russia. VAT must be paid on each delivery.

Performs construction and installation work for himself. Builds a building, a workshop, or makes repairs on premises using his own efforts.

In the law this is called sale, but for simplicity we will call it sale.

VAT is an indirect tax. Typically, the business does not pay it out of pocket, but bills it to the end customer. The buyer pays the tax amount, and the company transfers this money to the tax office. You may have noticed that the store receipt separately indicates the price of the product and separately VAT. But if the goods were not sold, but were given as a gift, the entrepreneur will still have to pay VAT on it - from his own money.

Tax is charged on added value. For example, an entrepreneur bought a kilogram of cucumbers from a supplier for 100 rubles, and sold them for 150 rubles. If the supplier of cucumbers is also a VAT payer, then the entrepreneur will pay tax only on the 50 ruble difference.

Who pays VAT

VAT is paid by companies and individual entrepreneurs using the general taxation system, as well as by everyone who imports goods across the border, that is, who imports.

Who are VAT tax agents?

We said that VAT is paid by companies that operate on a common system. But there is one exception. All companies are required to pay VAT if they become tax agents. Here are some examples of when you will have to do this.

Bought a product or service in Russia from foreign companies that are not registered with the tax authorities. For example, we purchased equipment in Russia from a foreign company.

Bought scrap metal, waste paper or raw animal skins from sellers who are VAT payers.

Sold goods, property or services of a foreigner under a commission, commission or agency agreement. For example, they helped sell an apartment to a foreigner and took a commission from the sale, and payments were made through your account.

Rent state or municipal property. For example, they rented premises directly from the city property management committee.

You are engaged in the sale of confiscated property. If the state has authorized the sale of confiscated property, VAT will have to be paid on the sale price.

Purchased or received government property. In this case, the property should not be assigned to state or municipal institutions.

VAT benefits

There are VAT benefits. Some companies may not pay tax at all, others only on certain transactions.

Not required to pay VAT some companies and individual entrepreneurs:

1. Individual entrepreneur on UTII, simplified tax system and patent.
2. Participants of the Skolkovo project.
3. Individual entrepreneurs and companies are subject to any tax system if their revenue over the last three months is less than 2 million rubles. Even if the company is on the general taxation system. To obtain such an exemption, you will have to submit additional documents.

To receive benefits for the Unified Agricultural Tax, you need to submit documents for exemption. If this is not done, the company will have to pay VAT on any income.

When benefits don't apply

It happens that a company formally qualifies for benefits, but cannot receive them.

When importing. If an individual entrepreneur using the simplified tax system or another special regime wants to import goods across the border, he will have to pay VAT.

If an invoice is issued with VAT. An entrepreneur using a simplified or other special mode, if the client wishes, can issue him an invoice with VAT. But then the entrepreneur will have to file a declaration at the end of the quarter and pay this VAT to the budget.

How is VAT calculated?

In this article we will look at the basic version of VAT calculation. In fact, there are many subtleties that only a professional accountant can understand.

The VAT that must be paid to the tax authorities is calculated using the following formula:

VAT payable = Output VAT − Input VAT + Recovered VAT

Output VAT is the amount of the tax base multiplied by the VAT rate.

The tax base is the amount of goods sold, that is, everything that the company sold or donated. Products that participate in promotions are also taken into account. If you give customers a hairdryer for the purchase of a drill, you will also have to pay VAT on the cost of the hairdryer.

The VAT rate is a percentage of the tax base, which is determined by the state depending on the type of transaction.

Input VAT is the VAT invoiced to you by your suppliers. This is the amount of VAT you must pay to suppliers along with charges for raw materials, supplies or equipment. It can be deducted from tax. It doesn’t matter to the tax authorities whether you paid the invoices from suppliers or not, so formally you can claim the entire amount of the invoices for VAT deduction.

For example, an LLC buys clothing from a supplier and then sells it at retail. The VAT rate for them is 20%.

The LLC purchased the batch for 300 thousand + 60 thousand rubles VAT, and sold it for 500 thousand rubles + 100 thousand rubles VAT.

Output VAT in this case is 100 thousand rubles. The LLC bought goods from a supplier with VAT, so the input VAT is 60 thousand rubles.

LLCs can deduct input VAT from the tax amount: 100 thousand − 60 thousand = 40 thousand rubles. There is no recovered VAT in this example. As a result, you have to pay 40 thousand rubles to the tax office.

How to run a business without fines

Earn more without breaking the law. Once a month - in our newsletter for entrepreneurs

VAT rates. The size of the bet depends on the type of operation:

• 0% - for export;
• 10% - when selling food, goods for children, magazines and books, medical goods;
• 20% - in all other cases.

If there is no input VAT. VAT calculation looks like a chain. Roughly speaking, each subsequent supplier deducts from his tax the money he paid to the previous one.

The problem arises when a company appears in this chain that does not pay VAT, for example, a simplified individual entrepreneur. Then the company that bought from such an individual entrepreneur cannot deduct VAT.

Let's consider the same example as above, but now the invoice for the LLC is issued by an individual entrepreneur using a simplified method, which does not pay VAT. The LLC pays the bill and then resells the product at a higher price to someone else.

The LLC is required to pay VAT on its sales. They sell goods for 500 thousand + 100 thousand rubles VAT. Output VAT - 100 thousand rubles.

The LLC could take away the incoming VAT from the outgoing VAT, but there is nothing to take away: the supplier did not charge them with VAT. Therefore, you will have to pay the entire 100 thousand rubles to the tax office.

Typically, companies on the general taxation system do not like this arrangement, so they try not to work with entrepreneurs without VAT.

What is the difference between a 0% rate and no VAT and what is a VAT refund?

A 0% rate applies to exports. For example, if a company produced something in Russia and sold it abroad. But there is a big difference between a 0% rate and a simple VAT exemption.

Let's look at an example, but first let's remember the simplified formula for calculating VAT:

VAT payable = Output VAT − Input VAT

The company produces mining equipment and sells it abroad. To produce a batch of equipment, they purchase materials for 120 million rubles, of which 20 million are VAT. Input VAT - 20 million rubles.

When they sell equipment to Canada, they pay 0% VAT. Output VAT - 0 rubles.

At the end of the quarter, they fill out a tax return and calculate VAT using the standard formula: 0 − 20 million = −20 million rubles. The amount of tax payable is negative, which means that the tax office must return 20 million rubles to the company. This is called reimbursement.

If the company were simply exempt from paying VAT, it would not have filed a return - no one would have returned the VAT spent before.

To receive a refund, you must submit a package of documents that will confirm that the raw materials and materials were involved in the production of exactly the equipment that was sold abroad, and that this sale actually took place.

The company can also refuse reimbursement - transfer the deduction to the next period or even refuse the 0% rate when exporting. In some cases, this is more profitable than collecting documents and going through checks for a small amount of compensation.

When can you get a refund and when can you not?

Rate 0%

Tax deduction

You can get a refund

Documentation

You must submit a declaration and confirm it with documents

No VAT

Tax deduction

No refund

Documentation

No need to submit reports

VAT payment deadlines

To pay VAT, you need to fill out and submit a tax return. The deadline for submitting the declaration is until the 25th day of the month following the reporting quarter. For example, for the 1st quarter of 2020, you must submit a declaration by April 25.

You do not have to pay the entire tax amount at the same time as filing your return. According to the law, VAT is divided into 3 equal parts and paid before the 25th day of each month of the next quarter. When an entrepreneur submits a return for the first quarter on April 25, he pays only ⅓ of the tax amount. The balance is paid in equal installments until the 25th of the next two months.

For the 4th quarter of 2019

When to make a payment

For the 1st quarter of 2020

When to make a payment

For the 2nd quarter of 2020

When to make a payment

For the 3rd quarter of 2020

When to make a payment

The payment amount is rounded to the nearest ruble. The first two tranches are downward, the last one is upward. If you wish, you can pay VAT ahead of schedule - the entire amount at once or ⅓ part in the first month, and the entire balance in the second.

Tax deduction for VAT

A tax deduction is the right of a company to reduce the amount of VAT tax charged to it by suppliers.

The problem is that some companies enter into deals only on paper in order to pay less, and deceive the tax authorities. It is illegal. To identify such entrepreneurs, the tax office monitors transactions for which deductions are issued.

How exactly the tax office monitors transactions is a topic for a separate article. We won’t talk about this here, but we will give recommendations on how to file a deduction so that the tax authorities are happy.

Conditions for obtaining a VAT deduction. You can include the VAT you paid in your return in the following cases:

1. VAT was presented by suppliers for goods, works or services.
2. You paid VAT to customs when importing goods from abroad.
3. The tax was presented by the sellers of property rights.

To receive a deduction, you must confirm the following conditions with documents:

1. The deal actually took place.
2. Goods were purchased for transactions on which VAT is charged.
3. The goods have been registered.

There is no need to send documents immediately - only at the request of the tax office.

VAT can only be refunded on business expenses

A company can only count on a deduction if it made purchases for business.

For example, if the owner bought new equipment for a business and registered it, he can safely include a VAT deduction in the declaration.

And if an entrepreneur bought his wife a new car so that she could take the children to kindergarten, this purchase does not affect the business. The entrepreneur is the final consumer of this product and pays VAT from his own pocket. It cannot be included in the declaration.

Documents for VAT deduction. To confirm the deduction, you need the following documents:

1. Invoices from suppliers.
2. Primary documents from suppliers that confirm that the transaction took place. These are invoices, certificates of completed work, etc.
3. Documents confirming the registration of goods, works or services. These can be acts of acceptance, extracts from KUDiR.

Invoices from suppliers must be registered in the purchase book, and invoices that you issued yourself must be registered in the sales book.

For deductions for imports and exports, a special procedure for processing documents is provided. It is better to contact a professional, such as a customs broker.

How to get a VAT deduction. To receive a deduction, you need to fill out a tax return electronically. It indicates the incoming and outgoing VAT, the amount of tax to be paid.

The tax office checks declarations as part of a desk audit. It takes place without the participation of the company.

They check it in a special program “ASK VAT 3”. It identifies breaks in the supply chain when information about a transaction in the declarations of the supplier and buyer differs. Gaps are not the only sign by which the tax authorities may consider a transaction suspicious. Inspectors say there are about two hundred such signs.

During verification, several situations are possible.

If everything is clear on the transactions, The tax office simply accepts the declaration and the VAT paid. The company does not need to do anything additional.

If a company or counterparty has aroused suspicion from the tax authorities, The tax office checks the entire chain of partners. He asks you to send supporting documents, explanations, or come to the tax office in person to prove the purity of the transactions.

If the company was unable to explain and confirm the transaction, The tax office comes with an on-site inspection. If during the inspection process the inspector reveals violations, the tax office will go to court with a claim for payment of the hidden part of taxes, fines and penalties.

The larger the deduction, the more suspicious it arouses the tax authorities. But this does not mean that inspectors will immediately come with an inspection. An audit will only occur if the tax authorities suspect a dubious transaction.

How to avoid falling under suspicion from the tax authorities

The tax office does not announce exact criteria when it considers a transaction suspicious. But here are a few rules to help protect yourself.

Do not use the services of companies that offer to conclude fictitious transactions. Some companies offer to conclude a deal on paper, as if they were supplying a product or providing a service. You can use it to deduct VAT. But this is illegal. And if the tax authorities discover such a transaction, there will be problems.

Check the counterparty before the transaction. Collect information about your partner before starting work: how long has the company been in business, is the director real, does the legal address match the real one. If not, are there many other legal entities located at this address? In legal parlance, this is called “exercising due diligence.”

Save all documents that can confirm the fact of verification of the counterparty. Take screenshots from websites that show the date and time. If you have to prove your case in court, you will need to show that you checked the counterparty before the transaction and did not find anything suspicious.

There are cases where companies win in court by proving that they exercised due diligence.

What happens if you don't pay VAT?

If a company does not pay VAT on time, then according to the law it will be charged a penalty. And if she incorrectly calculated the tax downwards, then there will be penalties and fines. If you delay payment or refuse to pay at all, the tax office will forcibly withdraw money from your current account.

Penalties and fines are assessed on the amount of arrears. If the company has paid part of the tax, interest will be calculated only on the balance.

Penalty are charged for each day of delay. The bet size is 1/300 of the key bet. Now the rate is 7%, which means penalties are 0.023% of the non-payment amount per day. For individual entrepreneurs this rate is always valid, for LLCs - up to 30 days. After 30 days, the percentage becomes 2 times greater - 1/150 of the key rate per day.

Fine threatens if the company incorrectly calculated VAT and this fact was discovered by the inspector during the inspection. If an entrepreneur calculated correctly in the declaration, but did not pay on time, there will be no fine, only a penalty.

The size of the fine depends on whether the entrepreneur specifically hid taxes or made a mistake in the calculations. If this is an accidental error, then the fine is 20% of the amount of arrears. If the tax office proves that the entrepreneur deliberately hid taxes, the fine will increase to 40%.

Account blocking. If a company does not pay on time, the tax office issues a demand that specifies the exact deadline by which the debt must be repaid.

If the requirement is not fulfilled, the tax office issues a collection order - sends a request to the bank to write off the amount of debt and blocks the current account until there is enough money on it.

If you do not pay off the collection, the tax office transfers the debt to the bailiffs. They will find a way to take the money: they will sell real estate, equipment, cars and other valuable property.

If there is nothing to take away, the company or entrepreneur is declared bankrupt. It is better never to take things to such extremes.