Hello, dear readers of the blog site. Did you know that when you buy a phone, jeans, bread or a ticket on public transport, you contribute to the budget of the Russian state?

We are talking about VAT - a tax included in the price of any product or service. You can find out how much the treasury receives from a purchase using a receipt issued by the store. Value added tax(this is how the three mysterious letters are deciphered) is highlighted in it as a separate line.

For the buyer Value added tax is a surcharge on the price of a product, collected by the state. The seller sells the goods taking into account the premium. He transfers part of the proceeds in the form of taxes to the budget.

However for the seller this explanation is not enough. The fact is that the process of creating a good (good or service) usually involves several subjects. To sell a stool, you first need to cut down a tree, make boards out of it, assemble it with nails, paint it, and bring it to the store. VAT is paid by each participant in the chain:

1. The logging enterprise will transfer VAT to the treasury when selling logs.
2. Sawmill - after the sale of boards (interest on the difference in the cost of logs and boards).
3. Furniture factory - after sending the products to the store (interest on the difference in the cost of boards and furniture).
4. Freight company - having received payment for transporting goods, etc.

Each subsequent the manufacturer reduces the amount of value added tax on its products by the amount of VAT paid by previous links.

That is, in fact, the payment is calculated only for that part of the cost by which the value of the good increases as a result of the business activity of the entrepreneur.

In other words, VAT- , withdrawn to the budget at all stages of production of products, works, services, as they are implemented.

VAT rates in Russia

The amount of tax is established by Article 164 of the Tax Code of the Russian Federation. In 2018 the following applies:

1. the basic rate is 18% for most goods and services;
2. 10% is the rate for socially significant products (some food products, children's products, medicines);
3. 0% - for exporters, for internal interregional transport.
4. There are transactions that are not subject to VAT, but in this case it is impossible to reimburse it. For details on this point, see the video below.

From January 1, 2019 it is planned VAT increase from 18 to 20 percent. The law on increasing the tax has already been adopted by the State Duma and signed by the President.

Formula and example of calculating value added tax

Tax calculation formula:

VAT = S * 18/100

where, S – price without tax,

18% is the VAT rate valid until January 1, 2019, used for most goods, works, services, except for those specified above.

Let us denote the final cost of the goods together with tax by the letter T.

T = S + VAT
T = S + S * 18/100
T = S * 118/100

Through simple mathematical transformations one can derive formula for separating VAT from the amount cost of goods with tax (T):

S = T *100 / 118
VAT = T *100/118 * 18/100
VAT = T *18 /118

If the tax rate is 10%:

VAT = S *10/100
VAT = T * 10/110

Tax rates 18/118 and 10/110 are called estimated.

Example: how to calculate 18% VAT on sales in an online store

Let’s say an online store sells shirts for 1,500 rubles (the quantity doesn’t matter). He pays the supplier 1 thousand rubles for the products. For convenience of calculations, we will assume that these are prices without VAT. The VAT rate is 18% (let me remind you that from the beginning of 2019 it will become 20%).

The price of the shirt for end customers on the website will be:

VAT: 1500*18/100 = 270

Amount including VAT: 1500 +270 = 1770

The store will pay the wholesaler:

VAT: 1000*18/100 = 180

Amount including VAT: 1000 + 180 = 1180 rub.

The buyer will pay VAT in full - 270 rubles. The online store will transfer 90 rubles (270-180) to the budget. The process shown is called, and thanks to it, in some cases you can even get money from the budget.

The fact is that the state will receive the indicated 180 rubles of tax from previous links in the chain.

As a result, we get that 90 rubles is our tax on the increase in the cost of the shirt by the store:

(1500 — 1000) *18/100 = 90

Thus, VAT is calculated only on the added value of the product. Its full amount will be transferred to the state budget in parts at different times from different participants in the chain.

Naturally, one example is not enough, but I wouldn’t want to expand the article ad infinitum. There is a way out - watch this half-hour video and the knowledge you have just acquired will firmly settle into place:

How to reduce the VAT burden for your company

It is clear that in order to reduce the value added tax (total), it is necessary to increase the input VAT (which is included in the payment to the wholesaler in our example). Then a larger amount will be deducted from the amount of output VAT (which is included in your buyer’s payment) and the final tax will be reduced.

There are many ways to do this and one of them is. Your company, for example, may not buy trucks or cars, but lease them. In fact, this is not much different from if you bought these cars on credit (the same payments spread over several years and interest for using the service).

But the leasing service includes VAT in its price, and it will be incoming for your company, which means it will reduce the tax burden. Any leasing company will tell you in detail exactly how much you will save on this matter (this is their main trump card, which makes leasing profitable for entrepreneurs with a general taxation system).

This example is described in more detail in this video (the author laid it out in detail):

In general, with the proper approach, such things help to save significantly, and for some companies they allow the company to survive in difficult times. Google the topic.

The history of VAT, who pays it and in which countries

Value added tax is actually sales tax modification, which was charged on all proceeds. It was paid only from the final commercial transaction. For the buyer, these types of fiscal payments are no different, representing an increase in the cost of the good due to contributions to the treasury.

VAT is considered a more progressive form of taxation. When calculating it, the result of the entrepreneurial activity of a particular payer is taken into account, while revenue is the result of the work of all links in the chain involved in creating the product.

Sales tax is charged on the final business transaction. However, due to shortcomings in the laws, a cascading effect can occur when the same value is taxed several times. With VAT this situation is minimized.

The benefit for the state is that from paying value added tax it is more difficult for the payer to evade. If one of the participants in the chain does not pay VAT, the amount will be collected from subsequent traders, because they will not be able to make the required deductions.

VAT was introduced for the first time France in 1958 year. Having tested the system on their colony of Côte d’Ivoire, the French considered the experience successful and extended it throughout the country. Currently, 137 states apply the tax.

In Russia, VAT appeared in 1992. Initially, its regulation was carried out in accordance with the law “On Value Added Tax. Since 2001, tax payments have been made in accordance with Chapter 21 of the Tax Code of the Russian Federation.

Interesting fact. In 2017, more than a third of federal budget revenues came from VAT. But without taking into account oil and gas, the share of this tax in budget revenues is about 55%. More than half of the country's total income. Think about it!

Why is there no VAT in the USA?

The United States of America considers itself a conservative state. They adhere to the policy of uniform taxation throughout the entire period of business activity. You cannot change the conditions during the game - the basic principle of the government. Therefore, all innovations go through with difficulty. All attempts to introduce VAT ended in failure.

It should also be taken into account that VAT collection is possible only in a centralized tax system. It involves paperwork and a large army of officials controlling the process.

The United States does not have a cumbersome centralized system for collecting fiscal payments. At the state level, only income taxes are levied here, which requires less administration. Due to the high earnings of citizens, treasury collections are considerable. In other countries that do not have high salaries, it is impossible to form a budget using direct taxes alone.

Who ultimately pays the value added tax?

According to the Tax Code of the Russian Federation, VAT payers are legal entities and entrepreneurs engaged in commercial activities and selling goods, works, and services in Russia. The tax must also be paid by persons importing goods into the country.

However, the consumer pays the seller the cost of products, works, services along with VAT; in fact, he bears the burden of taxation. That is, in essence, the merchant is only a VAT collector. In economic literature, a tax, the amount of which is transferred to the buyer by inclusion in the sales price, is called indirect.

Using an online calculator we calculate the difference between 18 and 20% VAT

From 2019 the VAT rate increases from 18 to 20%. Many people think that this does not concern them. There is an opinion that entrepreneurs will pay more, but for the average person nothing will change. Actually this is not true. Business does not operate at a loss. The burden of taxation falls on the end consumer, that is, on you and me.

At each stage of production of the product, the seller adds tax to the calculated cost and sells the product at a price that includes VAT. Increasing tax rates leads to . Let's consider this process using the example of a popular gadget.

According to data, the most purchased iPhone model in Russia is the iPhone SE. In the online store of a well-known federal network, the cost of a smartphone with 32 GB memory is 18,490 rubles.

In order to highlight VAT in the price of goods, we will use online calculator. There are many such programs on the Internet, you can count any of them. To calculate, in the “Amount” field, indicate the total cost of the phone – 18,490 rubles. In the second field you need to indicate the VAT rate - 18%. It is set by default, as it applies to most goods and services and is valid for cell phones. The checkbox should be opposite the “allocate VAT” operation.

When you have finished entering, click the “Calculate” button. The application will display the calculation result.

This means that without tax the seller's price is 15,669.49 rubles. And the state received 2,820.51 rubles from the goods. If you buy one phone, this is the amount that should be allocated on the cash receipt.

Now let's change the VAT rate to 20%. This increase is provided from January 1, 2019. Let's calculate how much the phone will cost under the new rules if the seller's price (excluding VAT) does not change.

By clicking on the “Calculate” button, we get a new price.

This means that under the same equal conditions, buyers in 2019 will pay 313 rubles more for the iPhone SE. The Russian budget will receive this amount - 3133.9 rubles instead of 2820.51. If the seller's profit remains unchanged, then buyers will end up paying for the increase.

Of course, conditions cannot remain unchanged. As prices rise, demand decreases, manufacturers reduce prices and look for ways to cut costs. It is possible that some of this difference will be compensated in this way. In any case, time will tell. All that's left is to wait a little.

Good luck to you! See you soon on the pages of the blog site

You might be interested

Taxes - what they are (definition), their purpose, types, functions and tax control Invoice: purpose, forms (paper, electronic), types and rules of registration What is the simplified taxation system (simplified tax system) - choosing the Income or Income minus Expenses scheme, switching to a simplified system Self-employed - who is eligible by law, taxation, permitted activities and the My Tax application What is depreciation What is UTII - types of reality, pros and cons, tax calculation and reporting (declaration, KBK, explanatory note) Lump sum payment: definition, purpose What kind of tax is this, why do you need a 2-NDFL certificate, who should fill out the 3-NDFL declaration and how to reduce tax payments What is GDP in simple words

The article contains useful information about VAT: what it is in simple words, what rates the legislation provides, when the deduction is applied, as well as formulas and examples of tax calculation.

VAT payers are required to submit a declaration. It is in the BukhSoft program. The report is always on an up-to-date form, taking into account all changes in the law. The program will fill out the form automatically. All you have to do is download it in electronic format. Before sending to the tax office, the declaration is tested by all verification programs of the Federal Tax Service. Try it for free:

VAT declaration online

VAT: what is it?

VAT has a simple decoding: value added tax. It represents a premium to the cost (added value) of a product (work or service), which the state withdraws from the budget at all stages of production of this product as it is sold (or work performed, services provided).

VAT is imposed on transactions involving the sale of goods, works, services and property rights on the territory of the Russian Federation.

This indirect tax is paid by all participants in the sales chain. The amounts go to the federal budget.

Let's look at the example of furniture manufacturing.

Example

To make furniture, the forest is first cut down. The logs are made into boards. Furniture is assembled from boards. After this, transport companies transport the furniture to stores. And stores, in turn, sell it to individuals.

1. Loggers will pay a tax when selling logs to wood processors.
2. Woodworkers - when selling boards to a furniture manufacturer.
3. Manufacturer - when selling furniture to a trading company.
4. Transport company - from the manufacturer's payment for delivery of furniture to the store.

In each case, VAT will represent the product of the tax rate by the difference between the revenue received from the sale of a product (work or service) and the cost of its production (performance or provision).

The seller acts as a liaison between the budget and the buyer. But, as a rule, the seller himself is the buyer. Therefore, he will transfer to the budget the difference between the tax paid to the seller and withdrawn from the buyer.

Who is required to pay VAT?

Firms and individual entrepreneurs that apply the OSNO regime are required to pay tax. As a general rule, for “simplified” people the legislation does not provide for the need to pay tax. But there are exceptions.

1. When issuing an invoice to the buyer, in which the tax is highlighted as a separate line. In this case, the “simplifier” received tax from the buyer. Its amount should be transferred to the budget.

An invoice is the main document for VAT. The taxpayer is required to compile it for each sale. It states the amount that the buyer must pay to the seller. The seller accrues this amount for payment to the budget.

1. The presence of a company or entrepreneur as a tax agent for VAT. Such persons transfer tax to the budget for another payer. The status of a tax agent arises when carrying out operations on leasing state property. In this case, the tax is paid not by the recipient of the money (the lessor), but by the payer (the tenant).
2. The company is a foreign legal entity that operates in the Russian Federation. If the company is registered with the Russian tax authorities, then it independently transfers the tax to the budget. If a company is not registered in the Russian Federation, then VAT is paid for it by a tax agent - a Russian organization. In this case, the status of a tax agent arises when (Article 161 of the Tax Code of the Russian Federation):

• purchasing goods, works or services from a foreign legal entity;
• sale of goods of a foreigner on the territory of the Russian Federation and the provision of services under an agency agreement, performance of work, as well as the implementation of property rights under agency agreements, agency or commission agreements.

VAT 0, 10, 18 and 20 percent

In 2018, tax legislation provides for three main tax rates:

• 10% (10/110);
• 18% (18/118).

The application of the rate depends on the type of transaction performed. For the list of transactions, rates established for them and conditions of application, see Article 164 of the Tax Code of the Russian Federation.

There is also an estimated rate of 15.25%. The Tax Code provides for two cases for its application:

• sale of the enterprise as a whole as a property complex (Article 158 of the Tax Code of the Russian Federation);
• sale of electronic services by foreign legal entities (Article 174.2 of the Tax Code of the Russian Federation).

Important!

From 01/01/2019, the VAT rate of 18% was increased to 20% (Federal Law dated 08/03/2018 No. 303-FZ). The calculated rate is 20/120. Rates 0 and 10 (10/110)% remained at the same level.

The BukhSoft program will automatically calculate the tax, carry out accounting operations and prepare all the necessary documents. Try it for free

Reflect VAT in accounting

The most commonly used rate is 18 percent. Article 164 of the Tax Code provides for the following cases:

• sales of goods not taxed at rates of 0%, 10% and not at calculated rates of 10/110 and 18/118;
• operations for the performance of work and provision of services (except for operations for leasing with the right to purchase breeding livestock and poultry);
• operations for the transfer of goods, performance of work, provision of services for the company’s own needs (if the costs for them are not included in the calculation of the income tax base);
• when a company carries out construction and installation work for its own needs;
• operations of import of goods that are not taxed at a rate of 10% and are not exempt from taxation.

At a rate of 10%:

• transactions involving the sale of food products from the legally established list on the territory of the Russian Federation are taxed;
• import and sale on the territory of the Russian Federation of children's goods from the legally established list;
• import and sale of scientific, educational and cultural periodicals and books on the territory of the Russian Federation;
• air transportation across the territory of the Russian Federation of passengers and baggage (with the exception of the Kaliningrad region, Crimea and Sevastopol);
• import and sale on the territory of the Russian Federation of medical goods from the legally established list.

The 0% rate is used:

• in relation to operations for the export of goods according to the customs procedure for export and re-export within the framework of the conditions established by law;
• when providing services for the export from the territory of the Russian Federation and the import into the territory of the Russian Federation of goods;
• for transit air transportation of goods over the territory of the Russian Federation;
• for the transportation of passengers and baggage to points of departure and arrival located outside of Russia.

A company or individual entrepreneur has the right to refuse to apply a 0% rate on transactions for the sale of goods for export outside the EAEU and switch to rates of 10% or 18%. This is also possible with regard to individual works and services for the transportation of such goods. To refuse the application, submit an application to the Federal Tax Service no later than the 1st day of the quarter in which the refusal to apply is expected to begin.

What does estimated VAT rate mean?

The estimated rate is used to separate the amount of tax from the total cost of a product, work or service. In 2018, two settlement rates are used:

• 18/118 (when calculating tax on value at a rate of 18%);
• 10/110 (when calculated from the cost at a rate of 18%).

From 2019, instead of 18/118, you will need to use a calculated rate of 20/120.

How to calculate VAT

To calculate VAT, perform the following steps (Article 173 of the Tax Code of the Russian Federation):

1. Calculate the amount of tax due.
2. Determine tax deduction.
3. Find the amount of tax to be restored.

What does VAT mean for calculation?

It is determined for each taxable transaction using the formula:

Calculation of VAT payable to the budget

The amount to be paid is determined based on the results of the tax period (quarter) according to the formula (Article 163 of the Tax Code of the Russian Federation):

What is VAT deduction in simple words

VAT deduction in simple words is the difference paid to the budget between the tax that was paid to the seller and withdrawn from the buyer.

Only companies and individual entrepreneurs on OSNO, which are not exempt from the duties of a VAT payer, have the right to deduction. If these requirements are not met, then the tax amounts are either included in the cost of purchased goods, works or services or reflected separately in expenses.

In addition, the simultaneous fulfillment of four conditions established in the Tax Code is required:

• the supplier submitted the tax, that is, the amount is reflected in the contract, invoice and primary report for the transaction being implemented;
• the buyer purchases goods, works or services to carry out transactions subject to VAT;
• the buyer accepted goods, works or services for accounting after their acquisition;
• the buyer received a correctly executed invoice or a universal transfer document.

What does VAT reinstated in the tax period mean?

The Tax Code provides for buyers the obligation to restore previously accepted tax deductions in the following cases (Article 170 of the Tax Code of the Russian Federation):

1. When previously acquired property, intangible assets, property rights were transferred as a contribution to the authorized (share) capital.
2. A company or individual entrepreneur begins to use the right to tax exemption.
3. When goods, works or services originally purchased for taxable transactions will be used:

• in transactions exempt from taxation (Article 149 of the Tax Code of the Russian Federation);
• for which the territory of the Russian Federation is not the place of sale;
• not recognized as implementation (Article 146 of the Tax Code of the Russian Federation).

1. When a company or individual entrepreneur switches to the simplified tax system, “imputation” or PSN. In this case, the deduction is not restored if the transition is made to the unified agricultural tax regime.
2. If a company or individual entrepreneur received a subsidy or budget investments from the budget of any level to cover the costs of paying for goods, work or services, for paying VAT when importing goods into the territory of the Russian Federation.
3. When an advance was paid for the supply of goods, performance of work or provision of services and when the seller returned the advance.
4. When the cost or quantity of goods, works, services or property rights received has decreased, including due to a price reduction by the seller.

Example of calculation and reflection of VAT in accounting

The publishing house publishes a quarterly scientific journal. A certificate from Rospechat confirms that it belongs to preferential types of printed products, taxed at a rate of 10%.

Expenses for printing services for printing the first issue with a circulation of 1000 copies. in the first quarter amounted to 236,000 rubles (including VAT - 36,000 rubles).

Salary expenses for own personnel (including mandatory insurance contributions) - 98,000 ₽

Second order subaccounts have been opened to account 90.1:

“Transactions taxed at a rate of 10%”;

“Transactions taxed at the rate of 18%.”

The price of one copy of the magazine without VAT is 250 ₽

Subscriber tax amount:

250 ₽ × 10% = 25 ₽/copy.

Price with VAT:

250 ₽/copy. + 25 ₽/copy. = 275 ₽/copy.

The entire circulation was sold by direct subscription. The money has arrived in the bank account.

Postings in the first quarter:

– 200,000 ₽ (236,000 ₽ – 36,000 ₽) – printing costs;

– 36,000 ₽ – input VAT for printing;

Dt 68 subaccount “VAT calculations” Kt 19

– 36,000 ₽ – input VAT is accepted for deduction;

– 236,000 ₽ – payment for printing services;

Dt 20 Kt 70, 69

– 98,000 ₽ – expenses for staff salaries;

– 298,000 ₽ (200,000 ₽ + 98,000 ₽) – the publishing house received the circulation received from the printing house in its warehouse;

Dt 62 Kt 90.1 subaccount “Operations taxed at a rate of 10%”

– 275,000 ₽ (275 ₽/copy × 1000 copies) – sales revenue;

Dt 90.3 Kt 68 subaccount “VAT calculations”

– 25,000 ₽ (25 ₽/copy × 1000 copies) – tax on sales proceeds;

Dt 90.2 Kt 43

– 298,000 ₽ – write-off of the cost of the sold circulation.

The publishing house had no other operations. Based on the results of the first quarter of VAT:

• accrued for payment to the budget in the amount of 25,000 ₽;
• accepted for deduction in the amount of 36,000 ₽

There is a difference:

36,000 – 25,000 = 11,000 ₽ (can be reimbursed from the budget in accordance with Article 176 of the Tax Code of the Russian Federation).

The most significant and most difficult of the taxes of the Russian Federation is the value added tax. It is because of this that many questions and disputes arise between tax authorities and taxpayers themselves.

Some taxpayers, when paying value added tax, make minor errors, which leads to large penalties. In the article we will analyze the concept of VAT, what is its economic essence, why is VAT needed, who is the VAT payer, under what conditions does an organization have the right to receive an exemption from VAT?

VAT payers are faced with the need to correctly calculate and allocate VAT from the amount; the calculation can be done independently or using.

Concept of added tax

Value added tax (abbreviated as VAT) is a state indirect tax, which is established as a surcharge on the price of a product, work or service. VAT is the main budget generator in the Russian Federation. According to the Tax Code of the Russian Federation Ch. 21 “Value Added Tax” establishes the terms and procedure for collecting VAT.

VAT is a small share of added value that arises from the difference between the cost of production of a particular product and the cost of this product, work, service for which they were later sold to the buyer.

An enterprise, when purchasing goods, products (work, services), pays the supplier their cost, taking into account value added tax.

When selling goods or products to a buyer (performing work, providing services), an enterprise charges VAT on their value to pay it to the budget, and issues an invoice to the buyer of the enterprise taking into account the amount of this tax.

In this case, the following situation arises: the amount of value added tax intended for payment to the budget can be reduced by the amount of VAT on purchased assets paid to the supplier. That is, ultimately the tax burden on the enterprise is reduced.

In order to explain the concept of VAT, we will give an example of a VAT calculation scheme.

Example

Organization “A” buys material assets from organization “B” for 50,000 rubles (excluding VAT). Organization “B” issues an invoice in which VAT /18%/ - 9,000 rubles is charged on the cost of purchased materials (50,000 rubles). The total amount payable on the invoice will be RUB 59,000. Organization “A” pays the bill, receives materials, on the basis of which it produces components and sells them to organization “B”. In this case, “A” issues an invoice to “B” in the amount of: total cost of parts - 100,000 rubles, VAT /18%/ - 18,000 rubles, Total amount 118,000 rubles.

In this case, organization “A” will have to contribute to the budget the difference between the VAT amount of 18,000 – 9,000 = 9,000 rubles. In this situation, organization “A” has a tax credit in the amount of VAT of 9,000 rubles. and the amount of tax liability is 18,000 rubles, the difference is paid to the budget.

Who is the VAT payer?

According to Art. 143 of the Tax Code of the Russian Federation, taxpayers of value added tax are:

• organizations;
• individual entrepreneurs, that is, persons who are engaged in private business and do not register their activities as a legal entity;
• persons involved in the movement of goods across the customs border of the Customs Union and recognized as VAT taxpayers in accordance with customs legislation.

Exemption from payment

Some organizations and individual entrepreneurs may be exempt from paying value added tax; for this they must meet certain conditions.

Exemption from VAT is allowed if the following conditions are met:

• in the case when the amount of revenue for 3 consecutive previous months does not exceed 2 million rubles. The exception is payers who import excisable goods into the Russian Federation. To obtain an exemption from value added tax, you must submit a written notification to the Tax Inspectorate, attaching an extract, an extract from the sales ledger, an extract from the ledger for keeping records of income and expenses for business transactions, and providing a copy of the journal of issued and received invoices. These documents are submitted before the 20th day of the month from which the right to exemption from VAT is obtained. The exemption is given for a period of 12 months, after which the organization must confirm its right not to pay value added tax or waive this right,
• if an organization carries out operations that are exempt from VAT, a list of them can be found in Art. 149 Tax Code of the Russian Federation,
• if special taxation regimes are applied: simplified tax system, PSN, UTII, unified agricultural tax.

If an organization meets one of these conditions, then it is exempt from paying value added tax, which is a definite plus for the organization.

But there are not only positive aspects of VAT exemption, but also negative ones. If an organization is not a value added tax payer, then it cannot issue invoices with allocated VAT amounts and make settlements with these amounts. Also, it cannot direct the VAT collected from them by suppliers for reimbursement from the budget; the organization includes the amount of this tax in the cost of goods, works, and services received.

It is also worth noting that the main document on the basis of which an organization has the right to send VAT claimed by suppliers for reimbursement is. Only if this document is available, an organization can exercise its right to deduct the tax amount. Recently, another document on the basis of which VAT can be allocated has become a universal transfer document (UDD), which combines the functions of an invoice and a primary transfer document (bill of lading, delivery and acceptance certificate).

When anyone, even an experienced accountant, hears the word “VAT,” there is a certain trepidation. And there are objective reasons for this, because this is one of the most complex taxes, the calculation and payment of which is regulated by multiple regulatory documents. Let's try to understand the basics of VAT today.

Value added tax is indirect, for the reason that its actual payer is the final consumer. To put it very simply, the end result is that VAT is imposed on ordinary consumers who purchase goods in a store or order any services or work. Let's figure out how this happens?

VAT represents “added” value or, even more simply, a markup in the percentage established by law on goods produced, services provided and work performed. Moreover, the “added” value increases at each stage.

A good example

To understand the “intricacies” of this insidious tax, you need to understand for yourself its mechanism and its meaning.

In order to imagine the whole chain, let’s look at this point using a specific example. To do this, we will trace all stages of production and subsequent sale, for example, of shampoo.

The first stage is the enterprise that supplies raw materials for the cosmetics production plant, i.e. When selling raw materials, the first “added” value was formed, which the manufacturer included in the selling price. Next, the cosmetics factory produced the shampoo, packaged it and sold it to a retailer. Now the price of the product is made up of the cost of purchased raw materials, costs and a percentage of the planned profit of the plant and VAT, which was added by production for “its” part in the price.

Naturally, the trading company marked up the shampoo and also added VAT on it. And now the shampoo has hit the sales counter, the consumer has bought it and paid the cost, including VAT at all stages. Each of the participants in this chain paid their part of the VAT to the budget, and reimbursed it by including it in the sales price.

Now let’s present this same illustrative example, in numbers, and assume that:

• The cost of raw materials is 118 rubles (in this cost, VAT at a rate of 18% is 18 rubles);
• The selling price of shampoo at the factory for a trading enterprise is 236 rubles (in this cost, VAT at the rate of 18% is 36 rubles);
• The selling price of shampoo in a trading enterprise is 302 rubles (of this price, VAT at the rate of 18% is 46 rubles).

Being the primary source, the manufacturer of raw materials for shampoo will pay VAT to the budget in the amount of 18 rubles on the entire sales amount. A cosmetics production plant will already be able to deduct the amount of “input” VAT on raw materials of 18 rubles, which means that VAT will be payable (36 - 18) = 18 rubles. Now a trading enterprise, it will accept for deduction the amount of VAT in the amount of 36 rubles presented by the cosmetic factory in the VAT invoice, and accordingly, will pay 10 rubles (46 - 36) to the budget.

And now, according to the theory presented above, by paying VAT by each participant in the chain, we should get the amount of this tax in the final price of the product.

The amount of VAT in the final price of the product is 46 rubles = 18 rubles (supplier of raw materials) + 18 rubles (cosmetic factory) + 10 rubles (trading enterprise).

We have dealt with the essence of this tax, and now with a full understanding of the matter we can move on to the aspects of the legislation that regulate its payment.

Payers and object of taxation

VAT payers are organizations and entrepreneurs who have chosen the OSNO form of taxation. The object of accrual of this tax is the following operations in accordance with the norms of Article 146 of the Tax Code of the Russian Federation:

• Sale of works, goods and services, collateral and transfer of property rights on the territory of the Russian Federation;
• Transfer of works, goods and services for own needs on the territory of the Russian Federation;
• Construction and installation work carried out for one’s own needs;
• Import of goods into the territory of the Russian Federation.

In case of import of goods, VAT payers become entrepreneurs and organizations that apply other forms of taxation, except for OSNO.

VAT rates

VAT rates are regulated by . There are three bets in total:

• 18% is the largest amount and is set for most tax objects;
• 10% - this rate applies to the bulk of food products, as well as children's products;
• 0% - this rate is applied by exporters who have documented the fact of an export transaction by submitting the necessary set of documents to the tax authorities.

Deductions

When calculating tax, the tax base is the entire amount of revenue, but we remember the principle of this tax, which is the added value generated at each stage. So, in order for the VAT payer to transfer exactly his “added” value to the budget, there is a deduction.

The deduction is the amount of “input” VAT, i.e. VAT paid by you on the purchase of services, goods and works in the course of your business activities. Dedicated to deductions.

Let's return to our example with milk. For a dairy plant, the amount of “input” VAT is the VAT on raw materials from the agricultural enterprise. Those. Taking your revenue for a sold product as a tax base and calculating VAT on it, the amount of VAT paid on the purchase of raw materials will be deducted. Thus, VAT will be payable only on that part of the revenue that was generated at the plant itself. The same thing will happen in a trading enterprise: having charged VAT on the proceeds for sold milk, it will deduct the VAT amount of the dairy plant, and, accordingly, only the VAT amount from the trade margin will have to be paid.

Payment procedure

The timing and frequency of VAT payment are established by Article 174 of the Tax Code of the Russian Federation. The reporting period is a quarter and transfers to the budget of this tax must be made no later than the 20th day of the month that immediately follows the previous quarter. For the first quarter of the year it is April 20, for the second - July 20, for the third - October 20, and for the fourth - January 20 of the next calendar year.

VAT refund

There is also a situation when the amount of calculated VAT is less than the amount of VAT to be deducted. In this case, you are entitled to compensation for the resulting difference. To do this, you need to submit a declaration to the tax authorities in the prescribed form, undergo a desk audit, and if as a result the amount to be refunded is confirmed, then you will be returned to the current account eligible for VAT refund.

The procedure for implementing VAT refunds is regulated.

Each of us pays VAT when purchasing goods. This is one of the main sources of filling the country's budget. Therefore, in order to run a more successful business, every entrepreneur must know what VAT is and who pays it.

Value added tax is a mandatory tax for most businesses. It is important to understand what this is in order to be able to save money and not receive a fine from the tax service.

Value added tax is a tax that arises when an enterprise sells products and provides value-added services. In simple words, VAT is a tax levied on the added value of products (the difference between the sales price and the purchase price from the supplier).

The VAT rate for the Russian Federation is 18%, with the exception of:

• medicines, some food products and goods for children - 10%;
• goods for export - 0%.

VAT is paid by buyers when purchasing products; the selling company is actually an intermediary between the buyer and the budget. But the same company, when purchasing raw materials, is the buyer and payer of VAT to the supplier, and when selling finished products, the company acts as a collector of VAT from consumers. In fact, the difference between the collected VAT from end consumers and the tax paid to the supplier is paid to the budget.

Algorithm for calculating VAT payment in budget:

The company bought a unit of goods from the supplier for 1050 rubles; upon purchase, the company had already paid VAT to the supplier - 160.17 rubles.

The same company sold this unit of goods for 1,550 rubles. and must pay VAT on revenue - 236.44 rubles. In fact, the company must pay to the budget the difference between the amount of VAT received from end customers and paid to the supplier - 236.44-160.17 = 76.27 rubles.

The amount of VAT payment for a sold unit of goods can be calculated in another way - by calculating 18% of the added value - (1550-1050) * (1-1/1.18) = 76.27 rubles.

VAT payers are all legal entities and individuals (IP) who sell products or provide services in the Russian Federation, including importers.

Who can be exempt from paying VAT?

Tax on no added value taxed:

1. Enterprises with a special tax regime:

• simplified taxation system;
• unified agricultural tax;
• patent tax system;
• a single tax on imputed income;
• participants of the Skolkovo project.

• purchase of state-owned enterprises;
• sale of property of bankrupt debtors;
• investments;
• sale of land;
• lending to non-profit organizations;
• performance by government agencies of their functions.

3. Enterprises whose revenue for the last 3 months is less than 2 million rubles are exempt from paying VAT for 12 months. If during the grace period the revenue for any three consecutive months did not exceed 2 million rubles, then the exemption continues. The exception is the sale of excisable goods.

Value added tax is levied on services provided on the territory of the Russian Federation, with the exception of: lease of premises to non-residents, provision of housing for use, medical services, child care in specialized organizations, passenger transportation by public transport, funeral services, sanatorium and resort services, etc. . (more details: paragraphs 1-3 of Article 149 of the Tax Code of the Russian Federation).

Procedure for accounting and payment of VAT

All operations with VAT is reflected on a separate subaccount of the account 68 (calculations according to taxes):

• Kt68 - VAT on revenue (Dt90.3 Kt68);
• Dt68 - VAT paid to suppliers (Dt68 Kt19).

The tax period for calculating VAT is the following quarter:

• VAT calculation documents are submitted to the tax service before the 25th day of the month, which follows the end of the reporting quarter;
• VAT is paid every month of the next quarter in equal installments.

To refund/non-pay part of the VAT that was paid when purchasing raw materials, it is important for the tax authorities to have proof of its payment. This can be an invoice, check or invoice, which indicates the amount of VAT payment. These goods must be included in the company's accounting records. If necessary, you need to have evidence that costs (related to VAT are eligible for reimbursement) are associated with the production of products/services, the sale of which generates a VAT liability.

To recover VAT, it is important that your supplier is also a VAT payer.

If you are an exporter and you do not have sales on which VAT is charged, then in order to refund the VAT paid to the supplier, you need to submit some documents to the state.

If there were no sales during the reporting period, and VAT was paid to suppliers, or the amount of VAT payable is less than the amount of VAT refundable, then you can also turn to the state to reimburse it, only this can trigger a tax audit.

VAT incurred as a result of costs of operations that are subject to this tax is subject to reimbursement. The enterprise needs to keep separate records for transactions subject to and non-taxable with VAT, as well as separate costs and input VAT for them.

Since 2018, the “5% rule” has been introduced:

• if the share of expenses for operations that are not subject to VAT does not exceed 5%, then VAT on all mixed expenses can be claimed for reimbursement, and VAT on expenses for operations that are not subject to tax can be attributed to the company’s expenses;
• if the share of expenses for operations not subject to VAT exceeds 5%, then part of the VAT on mixed expenses can be claimed for reimbursement, which is proportional to the share of revenue from operations subject to VAT, the rest is attributed to the company’s expenses.