The current fiscal legislation provides for the right to choose a taxation system. That is, the taxpayer has a legal opportunity to significantly reduce the tax burden when choosing simplified taxation regimes. Of course, officials have identified a circle of people and a significant list of criteria that must be met in order to switch to lightweight tax systems.
Consequently, companies and entrepreneurs have the right to choose exactly the mode that is most beneficial in carrying out their activities. The variety of taxation systems has become a stumbling block for most taxpayers regarding the imposition of value added tax.
Why do you need a certificate?
In most cases, business partners require confirmation of the chosen taxation system in order to correctly calculate and pay fiscal VAT payments. Let us remind you that for violation of the rules, significant fines and liability are provided, including the seizure of accounts and the freezing of activities for up to 90 calendar days.
If the company has received documents from a partner that contain o, then it should request appropriate confirmation that the entity has the right not to allocate value added tax. Your company may receive a similar request. In this case, you will have to prepare a response sample: a certificate about the taxation system.
Why you may need a certificate of a reconciled tax system
A certificate of the applicable taxation system is required to confirm the company’s right to work with or without VAT. It allows other organizations to verify whether they can accept VAT as a deduction after paying for goods and services.
It is worth noting that tax legislation does not contain specific requirements for this certificate and, in general, does not assign the taxpayer an obligation to present it at anyone’s request.
Authorized authorities (for example, the prosecutor's office or extra-budgetary funds), if necessary, can obtain such information directly from the Tax Inspectorate.
If you want to find out how to solve your particular problem in 2021, please contact us through the online consultant form or call:
How to prepare
Taxpayers who have switched to simplified tax regimes confirm their status with an official notification from the Federal Tax Service or provide a special form No. 26.2-7. Consequently, it is enough for “simplified” clients to send a copy of the Federal Tax Service’s notification about the transition to a preferential regime to the business partner. Or request a special information letter from the inspection.
For subjects using the general regime (OSNO), a similar form is not provided. To confirm the selected mode, you will have to notify your partner by letter, drawn up in any form.
Sample certificate of completion of work without VAT - all about taxes
I am an individual entrepreneur and am not a VAT payer. I work according to the simplified tax system. But the customer demands from me an official letter from the Federal Tax Service stating that I am exempt from paying VAT. The fact is that the Federal Tax Service takes a long time to complete this letter.
Is there any way to do without it to conclude a contract? By and large, it is possible to conclude an agreement without such confirmation. It’s just that, apparently, your customer wants to reliably understand the conditions regarding the formation of the contract price.
In fact, it is enough to write everything directly in the contract.
The reasons for the desire to check the counterparty are clear: for example, an incorrect statement of the terms of the contract price can lead the customer to unnecessary expenses in the amount of VAT.
When you notified the Federal Tax Service about the application of the simplified tax system, you should have been given a letter confirming that you notified about the application of the simplified tax system. Do you have this? If not, then, of course, you need to request it from the Federal Tax Service.
In order not to wait a month for the required letter from the Federal Tax Service, you can invite the customer to familiarize yourself with your tax return for the previous period or show the notification itself that you sent to the Federal Tax Service.
If the customer is not satisfied with this and decides not to enter into a contract, that is his right.
But it is important to understand that the law does not provide for any requirement regarding the mandatory provision of such documents confirming the application of the simplified tax system from the Federal Tax Service.
Also, the law does not give the Federal Tax Service the right to authorize or not to authorize the use of the simplified tax system. Therefore, the Federal Tax Service in the information letter only reports that the individual entrepreneur or legal entity has notified of its decision to apply the simplified tax system. Try to talk to the customer from these positions and convince him to either wait or enter into an agreement without a letter from the Federal Tax Service.
Help for OSNO
To compose a letter in any form, use A4 letterhead. Follow the general rules of business correspondence. Do not forget to indicate the required details of the written notification of the chosen taxation system:
- Information about your organization, individual entrepreneur. Enter the full name in accordance with the registration documents. Please indicate your actual and legal addresses. Enter the TIN, KPP, OGRN and other information if necessary.
- Date of registration. Separately indicate the date of registration with the tax authority. It is acceptable to attach a copy of the document.
- Data that the company is a payer of VAT or other fiscal obligation, depending on the request of the business partner.
A copy of the notice of transition to the simplified tax system
The fact of application of the simplified tax system can be proven with a copy of the notice of transition to the simplified tax system. Form No. 26.2-1 of the notification is submitted to the Federal Tax Service Inspectorate in two copies: one remains with the Federal Tax Service Inspectorate, the second is given to the taxpayer with an acceptance stamp. This copy of the notice can be provided to the counterparty to confirm its right to work without VAT.
If for some reason the second copy of the notification has not been preserved, you can order an information letter from the inspectorate about the application of the simplified tax system for the counterparty using form No. 26.2-7: you must submit a free-form request to the Federal Tax Service Inspectorate at the place of registration of the company or individual entrepreneur.
Demand or ask?
The current tax legislation does not provide for the obligation of the simplified tax operator to provide his counterparties with any evidence of the application of the simplified tax system. Therefore, it is impossible to demand such documents from a simplifier. However, he can be asked to provide evidence that he uses a special regime. Moreover, some simplifiers themselves, together with a set of documents, for example, an invoice or an agreement, submit a letter on the application of the simplified tax system for the counterparty. After all, it is easier to submit such documents than to spoil relations with your partners.
What are the sanctions for violating the notice period?
If the deadlines for providing the package of documents and notifications are violated, there may be claims from the tax office. However, it cannot refuse the taxpayer to apply the exemption. This is the position of the judicial authorities (see paragraph 2 of the resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation dated May 30, 2014 No. 33), which is fully shared by the Federal Tax Service. That is, the notification can be issued even after the exemption has been applied (paragraph 3, paragraph 3, article 145 of the Tax Code of the Russian Federation). Also, the Tax Code of the Russian Federation does not establish the consequences of failure to comply with notification deadlines. Consequently, for taxpayers who have already applied for VAT exemption, the tax office cannot refuse to exercise this right solely because of untimely provision of a package of documents and notifications.
See also:
- “Do not delay in submitting documents for exemption under Art. 145 Tax Code of the Russian Federation";
- “Exemption from VAT: can it be used retroactively if UTII turns out to be illegal?”
Let us recall that before the adoption of the resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation, the opinion of the judicial authorities was ambiguous. A number of courts took the view that one of the conditions for applying the right to exemption from VAT under Art. 145 of the Tax Code of the Russian Federation, compliance with the limit on the amount of revenue is considered. Consequently, providing a package of documents with notification later than the appointed time (also during an on-site inspection) does not lead to additional VAT accrual (resolution of the Federal Antimonopoly Service of the North-Western District dated July 20, 2012 No. A44-4183/2011, Federal Antimonopoly Service of the Far Eastern District dated March 2, 2009 No. F03- 188/2009).
A number of other judicial authorities believed that the legislation does not provide for the use of exemptions for the past period (resolutions of the FAS Volga-Vyatka District dated July 20, 2012 No. A28-8169/2011, dated April 20, 2011 No. A29-5471/2010, FAS East Siberian District dated 01.09.2010 No. A33-333/2010).
What document confirms the use of the simplified tax system?
Let us remind you that when switching to the simplified tax system, an organization or individual entrepreneur must submit to its tax office a Notification of the transition to a simplified taxation system (form No. 26.2-1, approved by Order of the Federal Tax Service dated November 2, 2012 No. ММВ-7-3 / [email protected] ) . In general, this must be done no later than December 31 of the previous year (clause 1 of Article 346.13 of the Tax Code of the Russian Federation) in order to become a payer of the simplified tax system from January 1 of the new year.
However, the tax inspectorate does not have the obligation to confirm that the organization (IP) has switched to the simplified tax system; the Federal Tax Service does not send in response either a permit or a notification about the application of the simplified tax system.
However, by order of the Federal Tax Service of Russia dated November 2, 2012 No. ММВ-7-3/ [email protected] Form No. 26.2-7 – Information Letter was approved. With this letter, the inspectorate can confirm that the organization or individual entrepreneur has submitted a Notification of the transition to the simplified tax system (in the form it is called an application), and also submitted declarations under the simplified tax system. Information about submitted declarations may not be available if the deadline for their submission has not yet arrived at the time of preparation of the information letter.
Questions
Taxpayers exempt from VAT or planning a transition often have questions about clarifying accounting rules.
There are a small number of explanatory letters of legislation on this topic.
Release under simplified tax system
Taxpayers using the simplified tax system do not have obligations to calculate VAT. There is no need to issue invoices.
Starting from 2021, it will be necessary to keep a log of received invoices.
The absence of a journal will be considered by the Federal Tax Service as ignorance of one document.
Do I need to submit a declaration?
Upon release, the taxpayer has the obligation to file a return. It is necessary to take into account the fact that it is possible to lose the exemption if the income limit is exceeded, and so on.
Failure to declare may increase penalties upon termination of the benefit.
When VAT is restored, the amount of fines for evading filing a tax return with charges will be added to the accrued tax and penalties.
What is the unified state register of VAT payers, see the article: register of VAT payers.
What is the tax if the donated apartment is sold?
What are the VAT rates on food products?
The amount of the fine for these violations is 5% of the accrued tax. The amount of the fine cannot exceed the 30% limit and be less than 1,000 rubles.
Exemption for import of equipment (import)
Medical equipment included in the list established by Government Decree No. 19 of January 17, 2002 as vitally important is completely exempt from VAT upon import.
The passport of the imported document must contain an OKPO code that matches the number in the resolution.
How is this partial liberation?
Taxpayers who sell excisable goods along with non-excise shipments have the right to receive an exemption from VAT.
The partial exemption used can only be realized if separate accounting is maintained.
This right is granted on the basis of the ruling of the Constitutional Court dated November 10, 2002 No. 313-O.
The partial exemption also includes a change in the rate of 18% to a rate of 10% for the import of medical equipment, medicines and equipment. The composition of the equipment does not apply to vital equipment.
If the subject is on UTII?
When switching to a general taxation regime after UTII, it is difficult to obtain an exemption.
The notice of release includes as part of the attachment documents that are not maintained. Individual entrepreneur on UTII does not keep a book of income and expenses.
It is not possible to prove the amount of revenue from the previous period. In this option, obtaining an exemption is possible only after conducting activities at OSNO for 3 months.
Is it possible for medical equipment?
The law provides exemption from VAT on the sale of vital medical equipment.
The right is established by Art. 149 of the Tax Code of the Russian Federation, approval of the list of equipment is determined by the above Government resolution.
Video: is there a VAT exemption? Use this right at any time!
Exemption from the accrual and payment of VAT is applied by enterprises with small revenues.
The use of benefits allows you to reduce the tax burden and increase the profitability of the enterprise.
To confirm the right to exemption, you must notify the Federal Tax Service and submit supporting financial documents.
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