Value added tax is mandatory for any enterprise engaged in production or provision of services. In this article we will talk about tax rates, objects of taxation, the VAT calculation system and the importance

Concept of VAT

Value added tax is indirect. It is transferred to the state budget by the seller, but at the exit it is paid by the consumer. VAT is included in the price of any product and is always paid by the last buyer.

VAT components

It will be easier for a “dummies” to understand the essence of VAT if you understand the concepts of tax credit and liability, the difference between which is the actual amount to be paid to the state treasury:

• A tax credit is an amount by which the tax liability can be reduced in a given reporting period, since it has already been paid earlier.
• Tax liability is the total amount of tax for the reporting period. For example, a seller wants to sell a product worth $10,000. with a 15% markup, that is, for 11,500 USD. The VAT rate for it is 20%, that is, the tax is 2300 USD.

Documentation of payments for goods and services occurs using tax invoices. In addition to them, there is another important document - an invoice, which is issued in two copies: one is intended for the seller, the other for the buyer. If you purchase a product, you register your invoice in the purchases ledger; if you sell, then in the sales ledger.

Calculating VAT for a “dummies” will not be difficult if you save all tax documentation. If there is no, incorrect or lost invoice from the seller, you are not entitled to a tax credit, which means you overpay VAT, since you have nothing to deduct from your tax liability.

Calculation

For "dummies" it begins with recording invoices in the sales ledger and purchases ledger. The difference between the tax liability and the total amount of tax credit for the reporting period is the VAT payable. If you carefully keep your accounting records, it is very easy to calculate VAT. For “dummies”, postings can be very complicated, so the entries should be made by a professional, since they are the basis for the final tax calculation at the end of the reporting period.

The value added tax rate depends on the activities carried out by the enterprise, as well as on its annual cash turnover. Let us explain the calculation of VAT using the example of the production and sale of women's dresses in the Russian Federation, for which VAT is 18%. The manufacturer purchased fabric and accessories in the amount of 20,000 rubles, and also paid VAT of 3,600 rubles. He received an invoice, which he entered into the purchase ledger. 3600 rub. - this is a tax credit in this case.

10 dresses were produced from the original materials, which are planned to be sold at a price of 3,500 rubles. each, that is, the total markup on the product will be 15,000 rubles. The tax liability is calculated as follows: (3500*10)*18/100=6300 rub. The formula for mandatory VAT payment for a “teapot” is simple: a tax credit is deducted from the tax liability. In our example, you need to do the following: 6300-3600 = 2700 rubles. The entrepreneur must pay VAT in the amount of 2,700 rubles, since 3,600 rubles. he already contributed when he purchased the fabric and accessories.

Taxpayers and objects of taxation

Individual entrepreneurs, organizations and persons transporting goods across state borders are VAT payers. What is this for dummies? This means that you can find out whether you will pay value added tax as follows: you need to determine your status in accordance with the Tax Code of the country where your business is registered.

The following transactions are subject to taxation in the Russian Federation:

Tax rates in the Russian Federation

VAT for dummies (2014) is 3 rates: 0%, 10% and 18%, determined depending on the type of activity of the enterprise. A 0% value added tax is imposed on the sale of the following goods, services or works:

• Obligations fulfilled by oil products and natural gas organizations.
• Services for international transportation of goods.
• Provision of railway rolling stock.
• Sales of goods exported under the customs export procedure.

The full list of taxation objects is set out in Art. 164 Tax Code of the Russian Federation. VAT of 10% is paid on the sale of food products:

• meat, poultry, seafood, fish;
• salt, sugar;
• grains, cereals;
• pasta;
• dairy products;
• bakery products;
• vegetables;
• children's and diabetic nutrition.

10% is charged when selling the following children's goods:

• clothes and shoes;
• beds and mattresses;
• diapers;
• strollers;
• office supplies.

Book products of an educational nature related to science or culture, as well as periodicals are subject to VAT of 10%. This does not apply to printed products of an erotic or advertising nature. Medical goods: drugs and medical products are also among the goods subject to VAT at 10%.

In all other cases, a tax rate of 18% applies. If we are talking about goods imported into the territory of the Russian Federation, they are subject to a value added tax of 10% or 18%.

Tax rates in Ukraine

VAT rates in Ukraine today are as follows: 0%, 7% and 20%. A 0% VAT rate applies in the following cases:

• operations for the export of goods from the territory of Ukraine under the customs export regime;
• supply of goods for refueling sea vessels in the territorial waters of other states, as well as Ukrainian Navy vessels;
• supply of goods for refueling or maintaining aircraft performing international flights or being part of;
• international transportation of passengers, luggage and cargo by various modes of transport.

A complete list of taxation objects with a 0% rate is set out in Art. 195 Tax Code of Ukraine. A value added tax of 7% is levied on medical products. In all other cases, the VAT rate of 20% is applied. In Art. 196 of the Tax Code of Ukraine lists transactions that are not subject to taxation. VAT for dummies in 2013 and 2014 was not subject to major legislative changes. In 2015, the main rate may be reduced to 17%.

Tax payment and reporting

Registration of invoices is the basis for calculating VAT payable. Tax credit and tax liability are carried out only if these documents are available. It is important that invoices are prepared correctly, otherwise they are invalid. In Russia, VAT is paid to the budget at the end of the reporting period - a quarter, in Ukraine - monthly. The taxpayer has 20 days to complete documents reflecting VAT. What is it for “dummies”: a declaration that is submitted to the tax office. On its basis, a desk tax audit is carried out.

Tax refund

If the tax liability is less than the tax credit, then a VAT refund is provided. The taxpayer declares to the tax authority the amount to be reimbursed, which is determined during a desk audit. If there are no violations, then after 7 days the tax office makes a decision on a refund. Within 5 days after the decision is made, the taxpayer is informed about it in writing. The required amount is returned by the territorial body of the federal treasury within a working week.

If violations are identified during a desk audit, a report is drawn up and sent to the head of the tax department for review. He or his deputy makes a decision on the existence and holding of the taxpayer to appropriate liability. It is worth noting that the amount declared for refund can be reimbursed to pay off arrears, debts and federal tax penalties.

Rules for filing a VAT return in the Russian Federation and Ukraine

At the end of the reporting period, each enterprise registered with the tax office submits a VAT return. For “dummies”, we note: in Russia the reporting period is considered a quarter, and in Ukraine - a month. The quarterly reporting period is used only if the volume of taxable transactions for the last 12 months does not exceed the amount of UAH 300,000. Within twenty days following the last day of the tax period, the declaration must be submitted to the relevant authorities. Payment of contributions in Ukraine must occur within thirty days after the end of the reporting period, and in Russia - within twenty.

Filing a tax return in Ukraine can be carried out personally by the taxpayer, transmitted electronically or sent by mail as a valuable letter with mandatory notification. In Russia, as of January 1, 2014, VAT returns can only be submitted electronically via telecommunications channels. You can select an electronic document management operator on the regional websites of the Federal Tax Service. It is necessary to conclude an agreement with him, receive crypto-protection means and enhanced protection, which will be used to certify invoices and declarations.

Filling out the VAT return must be carried out in strict accordance with the form established on the date of its submission.

Export VAT

Russian companies that promote their products abroad have a benefit from the state - this is a 0% VAT rate, since the full amount of tax for any product is always paid by the end buyer (in this case, a foreign consumer, but to the treasury of their state). Export VAT for dummies: a company providing goods or services abroad can recover VAT paid previously on costs of raw materials, production, labor, since it often exceeds the VAT recorded in the sales book.

To do this, the exporting company must confirm the legality of adopting a zero VAT rate, the fact of the export transaction and the validity of the refundable tax amount. The following documents must be submitted to the tax office:

• VAT declaration;
• invoices and copies of delivery notes;
• contract with a foreign partner;
• confirming shipment of goods abroad;
• copies of documents confirming receipt of goods in another country;
• application for VAT refund.

After this, the tax authority conducts a desk audit and decides on the possibility of returning the declared amount. If inaccuracies or errors are found in any document, this may result in not only a refusal to reimburse the required amount, but also a fine. To return funds, it is important to comply with the deadlines and rules for submitting documents, as well as promptly respond to requests from the tax inspectorate if additional information about the company’s activities is needed.

VAT for the state

VAT is a tax that everyone pays. The seller always includes it in the price of the product sold in order to return his funds that he has already transferred to the budget. Thus, VAT is a significant and constant revenue to the state treasury. A zero VAT rate for exporting companies makes the development of foreign economic relations attractive, and this stimulates the influx of foreign currency into the budget and stabilizes the country's balance of payments.

The system for generating and paying VAT is quite simple; you can read more about this in the Tax Code. The article says everything about VAT; for dummies, this information is quite enough to understand the essence of the tax in question, as well as the rules for its calculation, deductions to the treasury and the generation of relevant documentation.

VAT is an indirect tax. The calculation is made by the seller when selling goods (work, services, property rights) to the buyer.

The seller, in addition to the price of the goods sold (works, services, property rights), presents for payment to the buyer the amount of VAT calculated at the established tax rate. The amount of VAT that a taxpayer-seller pays to the budget is calculated as the difference between the amount of tax calculated by him when selling goods (work, services, property rights) to buyers, and the amount of tax presented to this taxpayer when he purchased goods (work, services, property rights). rights) used for VAT-taxable transactions. VAT is a federal tax.

Taxation VAT

The following are recognized as VAT payers:

organizations (including non-profits)

entrepreneurs

Conventionally, all VAT taxpayers can be divided into two groups:

• taxpayers of “domestic” VAT

  those. VAT paid on the sale of goods (work, services) on the territory of the Russian Federation

• taxpayers of “import” VAT

  those. VAT paid when importing goods into the territory of the Russian Federation

Exemption from the duties of VAT payers

Organizations and entrepreneurs whose total revenue from the sale of goods (works, services) over the previous 3 consecutive calendar months did not exceed 2 million rubles in total can submit a notification and receive an exemption from the duties of a VAT payer for a year (Article 145 of the Tax Code of the Russian Federation).

Organizations and entrepreneurs are not required to pay tax on sales transactions (except for cases of import of goods into the territory of Russia):

• applying the taxation system for agricultural producers (UST);
• applying the simplified taxation system (STS);
• applying the patent taxation system;
• applying the taxation system in the form of a single tax on imputed income for certain types of activities (UTII) - for those types of activities for which UTII is paid;
• exempted from fulfilling the duties of a VAT payer in accordance with Art. 145 Tax Code of the Russian Federation;
• participants of the Skolkovo project (Article 145.1 of the Tax Code of the Russian Federation).

Exception! The listed persons are required to pay VAT if they issue an invoice to the buyer with the allocated VAT amount.

The objects of taxation are:

• operations for the sale of goods (works, services), property rights on the territory of the Russian Federation, including their
• gratuitous transfer;
• import of goods into the territory of the Russian Federation (import);
• carrying out construction and installation work for own consumption;
• transfer of goods (work, services) for one’s own needs, the costs of which are not deductible when calculating corporate income tax.

In general, the tax is calculated based on the cost of goods (work, services) sold and property rights.

Calculation procedure

VAT calculation formula

VAT calculated
when implementing = tax
base* bid
VAT

VAT
due = VAT
counted
when implementing - "input"
VAT,
accepted
for deduction + restored
VAT

As a general rule, the tax base is determined on the earlier of two dates:

on the day of payment, partial payment on account of upcoming deliveries of goods (performance of work, provision of services)

on the day of shipment (transfer) of goods (works, services)

Currently in effect 3 bets value added tax (Article 164 of the Tax Code of the Russian Federation).

0%	A VAT rate of 0% is applied on the sale of goods exported under the customs export procedure, as well as goods placed under the customs procedure of a free customs zone, international transportation services and some other operations (clause 1 of Article 164 of the Tax Code of the Russian Federation).
10%	At a VAT rate of 10%, taxation is applied in cases of sale of food products, goods for children, periodicals and book products, and medical goods. (see list approved by the Government of the Russian Federation) Decree of the Government of the Russian Federation dated December 31, 2004 No. 908;
20%	Decree of the Government of the Russian Federation of September 15, 2004 No. 688;

Decree of the Government of the Russian Federation dated January 23, 2003 No. 41 The VAT rate of 20% is applied in all other cases (clause 3 of Article 164 of the Tax Code of the Russian Federation). The VAT amount is determined as the product of the tax base and the tax rate

Upon receipt of prepayment (advances) (clause 4 of Article 164 of the Tax Code of the Russian Federation) and in cases where the tax base is determined in a special manner (clauses 3, 4, 5.1 of Article 154, clauses 2-4 of Art. 155 of the Tax Code of the Russian Federation), also apply

settlement rates are 10/110 and 20/120.

Example:

Grain was sold for the amount of 110 rubles (including VAT 10 rubles).

Materials were sold for the amount of 120 rubles (including VAT 20 rubles).
Sale of shares of another company in the amount of 200 rubles (excluding VAT) is a preferential transaction.= Tax
base (200 rubles)+ Tax
100 rubles

by grain
based on materials
Tax amount
calculated at= implementation
base (200 rubles)+ (30 rubles)
100 rubles

10 rubles

20 rubles

Tax amounts presented to the taxpayer upon purchase of goods (work, services) are subject to deductions. (Article 171 of the Tax Code of the Russian Federation)

• Deductions
• VAT amounts that are subject to deductions are:
• paid when importing goods into the territory of the Russian Federation from the territory of member states of the Customs Union (clause 2 of Article 171 of the Tax Code of the Russian Federation).

“Input” VAT can be deducted only after goods (work, services) have been accepted for accounting and there are corresponding primary documents and an invoice.

To apply deductions you must have:

• invoices;
• primary documents confirming the acceptance of goods (works and services) for accounting.

In some cases, instead of invoices, other documents confirming tax payment are used.

Upon receipt of prepayment (advances) (clause 4 of Article 164 of the Tax Code of the Russian Federation) and in cases where the tax base is determined in a special manner (clauses 3, 4, 5.1 of Article 154, clauses 2-4 of Art. 155 of the Tax Code of the Russian Federation), also apply

When purchasing building materials in the amount of 120 rubles (including VAT 20 rubles), transportation services in the amount of 59 rubles (including VAT 9 rubles), medical services (preferential operation) for 30 rubles excluding VAT, the amount VAT deductible will be: 20 rubles + 9 rubles = 29 rubles.

Refund procedure

The part of the “input” tax that exceeds the amount of calculated VAT is subject to reimbursement.

Sold goods worth 120 rubles (including 20 rubles VAT).

Purchased goods worth 360 rubles (including 60 rubles VAT).

The amount to be reimbursed is 40 rubles (60 - 20 = 40).

In this case, you may need to submit documents for a desk audit.

3 months

VAT refunds are usually made after the completion of a desk audit, which lasts 3 months.

The amount to be reimbursed can be offset against debts (arrears, penalties, fines) on federal taxes, offset against upcoming payments, or returned to the current account.

A VAT refund can be received either after the completion of a desk audit (clause 2 of Article 176 of the Tax Code of the Russian Federation) or, in the case of applying the application procedure for VAT refund (clause 8 of Article 176.1 of the Tax Code of the Russian Federation), before the completion of the desk audit.

After conducting a desk audit of the VAT return, the taxpayer submits a refund application to the inspectorate and a VAT refund is issued to him.

Exception! taxpayers who paid more than 7 billion rubles over the previous 3 years. taxes may not be provided by a bank guarantee (clause 1, clause 2, article 176.1 of the Tax Code of the Russian Federation).

For fixed assets, VAT is restored in the part related to the residual value of fixed assets (without taking into account revaluations). And for real estate - 1/10 of the amount of tax accepted for deduction, in the share calculated according to rules of Art. 171.1 of the Tax Code of the Russian Federation, annually in the last quarter of each year, for 10 years.

If the fixed asset is fully depreciated or has been used by the taxpayer for more than 15 years, then VAT may not be restored.

Declaration

Deadline for submitting the declaration

The VAT return is submitted by the taxpayer (tax agent) to the tax authorities at the place of registration as a VAT payer no later than the 25th day of the month following the expired tax period. There is no need to draw up and submit declarations for the location of separate units. The entire tax amount goes to the federal budget.

For example, for the first quarter of 2015, the VAT return must be submitted by April 25, 2015.

A fine is provided for failure to submit a declaration (Article 119 of the Tax Code of the Russian Federation).

Starting from the tax period of the 1st quarter of 2014, the VAT tax return is submitted electronically.

From January 1, 2015, the VAT return, which must be submitted in electronic form, but submitted on paper, is not considered submitted (clause 5 of Article 174 of the Tax Code of the Russian Federation).

Attention! If the taxpayer fails to submit a tax return to the tax authority within 10 days after the expiration of the established period, transactions on the accounts may be suspended (clause 3 of Article 76 of the Tax Code of the Russian Federation).

VAT declaration form Procedure for filling out the declaration

The declaration is filled out in rubles without kopecks. Indicators in kopecks are either rounded to the nearest ruble (if more than 50 kopecks) or discarded (if less than 50 kopecks).

The title page and section 1 of the declaration are submitted by all taxpayers. These requirements also apply to those taxpayers whose tax base is zero at the end of the quarter.

Sections 2 - 12 , as well as appendices to the declaration, are included in the declaration only when taxpayers carry out relevant operations.

Sections 4-6 filled in in case of carrying out activities taxable at the VAT rate of 0 percent.

Sections 10-11 filled in in the case of issuing and (or) receiving invoices when carrying out business activities in the interests of another person on the basis of commission agreements, agency agreements or on the basis of transport expedition agreements, as well as when performing the functions of a developer.

Chapter 12 The declaration is completed only if the buyer is issued an invoice with the allocation of the tax amount by the following persons:

• taxpayers exempt from fulfilling taxpayer obligations related to the calculation and payment of value added tax;
• taxpayers upon shipment of goods (work, services), sales operations of which are not subject to value added tax;
• persons who are not taxpayers of value added tax.

Procedure and deadlines for tax payment

VAT is paid based on the results of each tax period in equal shares. no later than the 25th each of the three months following the expired tax period.

Declaration for the 1st quarter of 2015

240 rubles due.

You need to pay:
until April 25– 80 rubles,
until May 25– 80 rubles,
until June 25– 80 rubles.

Exception! Persons who are not VAT payers, but have issued invoices with an allocated VAT amount, pay the entire tax amount before the 25th of the month following the expired tax period.

One of the powerful instruments that regulates the state of the country’s internal economy is the value added tax. Such a tax was invented by a French economist who managed to ensure that it was introduced in France in the middle of the last century. Successful experience has led to the fact that such a tax is now used in many countries.

What is it and when does tax need to be paid? This is a question that arises among many Russians. Its main distinguishing feature is that the tax base is directly dependent on the cost of the goods sold, and different tax rates are established for each product/service. The usual rate that applies in the Russian Federation is 18%, but certain groups of goods are taxed at a rate of 10% and even 0%.

The fact of using differentiated rates does not make it possible to increase the cost of goods that are considered vital. Also, due to this, the country supports the production of domestic products and regulates various business areas. The main difference between VAT is the ability to refund part of the tax that was previously paid.

What it is

All people at certain points in their lives act as buyers, some of them are sellers of certain goods or services. In the store, price tags with and without VAT no longer surprise anyone. However, not every consumer will be able to explain what this is and where such numbers come from. VAT for dummies and practical examples will help you understand this step by step.

This tax is a kind of duty that is included in the price of any product. Regardless of the wishes of buyers, all goods they purchase are sold with VAT added to the price.

For most goods the tax rate is 18%. For those that represent a vital necessity for the population, the rate is set at 10%. These include bread, salt, cereals, milk, etc.

This tax is the largest and most stable income for the state budget. The population will always buy various goods and services; this fact will not be affected even by an unstable economic situation.

When to pay

What is the object of VAT taxation:

• construction and installation work to satisfy personal needs;
• sale of goods/services/work on Russian territory, transfer of property and proprietary rights;
• transfer for personal needs of goods/services, the costs of which were not taken into account when the income tax was calculated;
• importation of imported goods into Russia.

According to the provisions of Article 149 of the Russian Tax Code, the purchase of socially significant goods/services, for example, some medical goods and services, services aimed at caring for children or sick people, the sale of religious goods, passenger transportation, educational services, etc., are not subject to such tax. These are also services provided in the securities market, services of lawyers and insurers, transactions in the banking sector, and utility services.

Imports and exports are taxed at different rates. Export transactions are taxed at a zero rate. The same tax rate applies to the transmission of electricity, transportation by rail, water and air transport; pipeline transport of gas/oil.

A 10% rate applies to food products, most children's goods, medicines and medical products that are not included in the list of essential goods, and breeding livestock. All other goods/services are subject to taxation at a rate of 18%.

Features of the VAT theory for dummies

Actual problems

The main problem of VAT is to correctly calculate the tax base for calculating the tax. There are a number of operations for which calculations can be carried out using several methods.

The situation can be considered using an example: a company was presented with a claim in the amount of 100 thousand rubles for the sale of low-quality goods. Will it be subject to value added tax? The Tax Code says nothing on this matter. However, there is a letter from the Ministry of Finance dated 2013, which clarifies that VAT is not calculated on the amount of the claim.

If the tax base is calculated incorrectly, this will lead to incorrect tax calculation, which means incorrect payment will be made. If the tax amount is underestimated, this will be regarded as a tax offense and will entail liability.

Starting from 2019, VAT returns have increased in volume. Now it includes incoming and outgoing. This was done in order to track companies that evade paying VAT.

Despite the fact that this tax was introduced many years ago, there are still shortcomings in calculating the tax itself and the tax base.

Who pays

It may seem that paying the tax falls only on the producers. But this is far from true; in the end, this tax is paid by the ordinary buyer. Although the company submits a VAT declaration to the tax service.

What does the VAT payment sequence look like:

1. When one businessman orders from a second any raw materials or materials that are necessary for the production of products, it pays the supplier a taxable amount.
2. After this, the question of how much the product that is being manufactured should cost is decided. The price will depend on the cost of the product. At this stage, the amount of tax that goes into the tax credit is calculated.
3. The next stage is determining the final cost of the product at which it will be offered to the final buyer. The final cost will be formed from the cost price, the share of profit from further sales, excise duty, etc. VAT is also included in the final price, which means it is paid directly by the buyer.
4. After the company receives the proceeds as a result of the sale, it is calculated minus the 18% tax paid by the buyer. The final amount is a tax liability.

Recipient information

To better learn everything about the concept of VAT, you should consider the question of who should pay the tax. It must be recalled that any entrepreneur must pay such a tax to the state, except for those who carry out their activities on the basis of USTV or a simplified system. Firms whose revenue for the reporting period was less than 2 million rubles will be exempt from payment. If this minimum income threshold is exceeded, VAT must be paid.

If the structure’s income decreases, it is possible to obtain the status of “VAT defaulter”. To do this, you must submit an application to the tax office, providing accounting books as evidence of the decrease in profits. The defaulter status must be obtained every year; this status can be removed not only by the fact of exceeding the minimum established level of income, but also by the sale of excisable goods.

Small firms most often do not pay this tax, however, this status is a loss for them, since large structures do not want such cooperation. This is disadvantageous for them because as a result they cannot expect to receive compensation from the state. The fact that not everyone agrees to pay taxes for their suppliers leads to a decrease in both the number of transactions and their quality.

Small companies will be able to maintain the profitability of their business only by working with individuals and making retail sales.

Payer in fact

So, it is obvious that the VAT payment scheme assumes that the main burden falls not on the shoulders of businessmen, but on buyers. It turns out that the organization only submits reports to the tax office, and the refund of the tax itself is made at the expense of the buyers. You can consider this situation using an example that will explain what VAT is for dummies.

If one company purchases any materials or goods from a partner organization, then the price set for them already includes value added tax.

In turn, when the price of the final product is determined, it will depend on the initial cost of raw materials. Thus, the cost of a product at which a buyer can purchase it includes both cost and VAT. It follows that it is the buyer who pays the tax.

Options, taxes and rates

How taxation works:

• When it comes to the sale of goods and services, the basis for calculating VAT is the revenue received from the sale of goods, as well as advances received for the goods. The law stipulates that VAT must be paid even if the goods are given away or donated. In such a situation, the tax is calculated from the market value of the product.
• The tax is imposed on goods that are imported into Russia.
• Taxation of construction is provided for in any case, whether it is carried out by contract or by economic means.
• The tax will also be imposed on those goods that are transferred to satisfy one’s own needs.

There are two rates in Russia: 18% is the main rate, 10% is a reduced rate. VAT can be calculated with a deduction if the seller already pays the tax at the time of purchase of the item. To receive a deduction, in addition to the invoice, you must have an invoice for the goods. The absence of one of these documents will result in VAT having to be paid again in full.

This tax is paid on a declaration basis. One payment option is to use a tax agent, in which case the organization acts as an intermediary between the tax payer and the tax authority.

Accounting in accounting

The accounting department is responsible for calculating the tax base for VAT. The work of an accountant will be much easier if the calculations are made using a specialized accounting program. Wiring is something that specialists using the 1C program should know and understand.

When goods are purchased from a supplier, VAT is displayed in the debit of account 19. When VAT is accepted for offset, it is written off from account 19 to debit 68.2. When the goods are sold, VAT is charged to the credit of account 90.3. The final wiring will look like D 90.3 K 68.2.

In the case when the tax base is high when purchasing goods, upon sale a debit balance is formed on account 68.2. It turns out that the tax office must reimburse VAT. Both beginners and experienced accountants are afraid of such a situation, since it may be followed by a desk audit. In such a situation, you need to try to find the mistake made. How to fill out a declaration if it turns out that the accounting was kept correctly? It is necessary to enter only reliable data into the document, otherwise, in addition to verification, you face a significant fine.

When accounting for VAT, the main thing is to keep the primary documents in order. You should pay attention to invoices, as they may incorrectly indicate the tax base and the VAT that is calculated on it. If the error is corrected in a short time, the unpleasant consequences will be minimal or they can be avoided altogether.

Payment deadlines

The wording in legislative acts regarding the deadlines for paying VAT and the boundary terms for filing a declaration are vague. Reporting documentation must be submitted quarterly by the 25th day of the month following the reporting quarter. So, if we are talking about reporting for the first quarter, you need to submit a tax return no later than April 25.

The tax amount is divided into equal parts and paid over three months. For example, a VAT amount of 300 thousand rubles can be paid in 100 thousand increments within three months. However, it is not prohibited to pay the entire amount if such an opportunity exists.

When calculating the tax base, you need to round the amount to the nearest ruble, since pennies are not paid to the budget. When a company operates without profit, it is possible not to pay VAT for a year. The amount can be paid at the end of the year.

Many entrepreneurs are interested in the question of what will happen if trade is carried out without paying VAT or the amount of tax is calculated incorrectly. This threatens that you will have to pay a fine of 10 thousand rubles.

This amount is the minimum, which is assigned when minor violations are detected. For more significant violations, penalties can reach 20% of the total assessed tax.

The most severe punishment that can be applied is criminal liability. As a result, individuals who evade paying VAT can go to prison for 6 years.

Important to keep in mind

In 2019, when calculating and paying VAT, you need to keep in mind the following:

• Those organizations whose revenue exceeds 2 million rubles in 12 months must pay tax.
• The invoice forms that are issued by the tax office are strict reporting forms. If they are lost, the organization faces the imposition of penalties; if the situation is repeated repeatedly, this can lead to administrative and even criminal liability.
• VAT is charged on the total cost of goods, and not just on the profit from their sale.
• If the goods sold were purchased from a supplier who is a VAT payer, part of the amount already paid occurs and, as a result, the amount of tax payable is reduced. This phenomenon is called VAT offset.

Value added tax is the youngest of the taxes that form the main share of budget revenues. The scheme for its collection was proposed by the French economist M. Loret in 1954; it was introduced into the French tax system in 1968. In Russia, value added tax has been levied since 1992.

Value added tax is an indirect multi-stage tax levied on each act of sale, from the production cycle to the sale to the final consumer.

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 the application of 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)).

The introduction of value added tax is a prerequisite for a country's accession to the EU. Value added tax is more effective than retail sales tax in creating preferential tax treatment for certain goods and services. VAT can significantly increase revenues to the country's budget compared to other taxes.

In the Russian Federation, until 2001, VAT was levied on the basis of the law of December 6, 1991 No. 1992-1 “On Value Added Tax”, and from January 1, 2001 it is levied on the basis of Chapter 21 of the Tax Code. In accordance with Art. 143 of the Tax Code of the Russian Federation, VAT payers are organizations, individual entrepreneurs, as well as persons moving goods across the customs border of the Russian Federation.

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)

Goods	Works (services)
Location outside the territory of the Russian Federation (not shipped or transported)	The location of the real estate, if the work (services) is directly related to this property. Such work (services) include: construction, installation, construction and installation, repair, restoration work, landscaping work, rental services.
At the time of the start of shipment or transportation, it is located on the territory of the Russian Federation	Place of actual performance of work (services), if they are related to movable property.
	The place of actual provision of services, if the services relate to the field of culture, art, education (training), physical culture, tourism, recreation and sports.
	Place of economic activity of the buyer of 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:

Moment of determining the tax base	Cases when this procedure applies
Day of shipment (transfer of goods)	In cases where the goods are not shipped or transported, but the transfer of ownership of this product occurs, such transfer of ownership is equivalent to its shipment (sale)
Day of sale of warehouse receipt	Sale by the taxpayer of goods transferred to him for storage under a warehousing agreement with the issuance of a warehouse certificate
The day of assignment of a monetary claim or the day of termination of the corresponding obligation, in the cases provided for in paragraphs 3 and 4 of Art. 155 of the Tax Code of the Russian Federation - as the day of assignment (subsequent assignment) of the claim or the day of fulfillment of the obligation by the debtor, and in the case provided for in paragraph 5 of Art. 155 of the Tax Code of the Russian Federation, - as the day of transfer of property rights	Transfer of property rights in the case provided for in paragraph 2 of Art. 155 of the Tax Code of the Russian Federation (assignment by a new creditor who has received a monetary claim arising from an agreement for the sale of goods (works, services), transactions for the sale of which are subject to taxation.
The last date of the quarter in which the full package of documents provided for in Art. 165 Tax Code of the Russian Federation	Sales of goods (works, services) provided for in paragraphs. 1-3, 8 and 9 p. 1 tbsp. 164 NKRF
The last date of each tax period.	Carrying out construction and installation work for own consumption
Day of transfer of goods (performance of work, provision of services)	Transfer of goods (performance of work, provision of services) for own needs

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 defined 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 works (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.