What non-taxable VAT transactions are included in section 7

When to fill

The current value added tax report form was approved by Order of the Federal Tax Service No. ММВ-7-3/ [email protected] dated 10.29.2014 as amended on 11.20.2019. The same standard establishes the procedure for filling out section 7 of the VAT return - in block XII of Appendix No. 2 of the Order.

Here's who fills out section 7 of the VAT return according to the rules of the Tax Code of the Russian Federation:

• those who carried out sales operations that are not subject to value added tax and are exempt from tax (Article 149 of the Tax Code of the Russian Federation);
• those who carried out transactions not related to objects of taxation (clause 2 of article 146, clause 3 of article 39 of the Tax Code of the Russian Federation);
• those who sold goods, works and services outside the Russian Federation (Articles 147, 148 of the Tax Code of the Russian Federation).

It is mandatory to generate records in Section 7 of the VAT return for taxpayers who have received payment or advance payment (partial payment) for future supplies of goods, works and services that are produced or performed for more than six months. Such information is reflected in line 010 of block No. 7.

IMPORTANT!

Non-operating income does not apply to transactions not subject to value added tax. In such receipts there is no actual sale of goods, works or services: an object of taxation is not formed (clause 1 of article 39, clause 1 of article 146 of the Tax Code of the Russian Federation).

What to pay attention to

An unfilled sample of Section 7 of the VAT return, which is fixed by Order of the Federal Tax Service of Russia dated October 29, 2014 No. ММВ-7-3/558 in the latest edition, looks like this:

On the value added tax return form, Section 7 takes up only one sheet. However, in reality it may be more. It depends on how much the payer of a given tax or VAT tax agent had:

• transactions that are not subject to VAT/exempt from tax;
• transactions that the law does not recognize as subject to VAT;
• sales of goods/works/services, the location of which is not recognized by law as the territory of Russia;
• payment/partial payment for future deliveries of goods/performance of work/provision of services, when the duration of the production cycle for their manufacture is from 6 months.

To be more precise, the number of completed lines in the sample Section 7 of the VAT return directly depends on the number of codes under which the company’s operations (transactions) fall. The values ​​of these codes are taken from Appendix No. 1 to the procedure for filling out these reports, which was approved by Order of the Federal Tax Service of Russia dated October 29, 2014 No. MMV-7-3/558.

Also see “Section 7 of the VAT return: transaction code”.

The remaining lines should not be left blank. They must be filled with dashes.

Depending on the type of transaction, there is a difference in how the sample Section 7 VAT return will be filled out (see table below).

In column No. 2 of Section 7 indicate:

• the cost of goods/work/services that the law does not recognize as subject to taxation in accordance with clause 2 of Art. 146 Tax Code of the Russian Federation;
• the cost of goods/works/services, the place of sale of which is not the Russian Federation according to Art. 147 and 148 of the Tax Code of the Russian Federation, as well as paragraphs 3 and 29 of the Protocol to the Treaty on the EAEU;
• the cost of goods/work/services sold/transferred that are not subject to taxation (exempt) in accordance with Art. 149 and taking into account paragraph 2 of Art. 156 of the Tax Code of the Russian Federation.

As for column No. 3, here for each code the cost of purchased goods is given:

• transactions for the sale of which are not subject to VAT under Art. 149 Tax Code of the Russian Federation;
• when there is an exemption from the obligation to pay tax in accordance with Art. 145 and 145.1 of the Tax Code of the Russian Federation;
• when a person is a VAT non-payer.

Column No. 4 shows the VAT amounts for each code:

• presented;
• paid when importing goods into Russia, which are not subject to deduction in accordance with clauses 2 and 5 of Art. 170 Tax Code of the Russian Federation.

When filling out line 010, you must be guided by the Decree of the Government of the Russian Federation dated July 28, 2006 No. 468. It establishes the List of goods/works/services, the duration of the production cycle of which is from 6 months.

What transaction codes to use

The codes are indicated in the first column of the block. The encoding determines the type of non-taxable transaction. Please indicate all transaction codes of section 7 of the VAT return according to Appendix No. 1 of Order MMV-7-3/ [email protected]

Part No. 7 of the reporting is filled out in accordance with the separate accounting data. The following are classified according to individual codes:

• sales revenue;
• the cost of goods, works and services exempt from taxation by value added contribution;
• value added tax, which is not deducted.

IMPORTANT!

Together with the reporting, they submit the register to section 7 of the VAT return with accompanying documentation. The documents confirm the validity of the application of tax benefits (Letter of the Federal Tax Service No. ED-4-15 / [email protected] dated January 26, 2017).

More information about advances received

Prepayments received from buyers are divided into two groups:

• for transactions that are not subject to VAT;
• for transactions that are subject to VAT and have a deferment of six months.

The second transactions must be reflected in section 7 of the VAT return, but the first transactions are not required to be included in the report.

Similar articles

• Filling out the VAT return for the 3rd quarter
• Transaction code in the VAT return
• Filling out section 7 of the VAT return
• Section 7 of the VAT return
• VAT declaration form

How to fill

The general rules for filling out section 7 of the VAT return are given in block XII of Appendix No. 2 of the Order:

1. The report is completed by taxpayers or tax agents.
2. The contractor indicates the TIN and KPP of the organization, the page number of the reporting form.
3. Codes are entered in accordance with Appendix No. 1.

Problem with another partition? Use the ready-made solution from ConsultantPlus for free. Experts have discussed how to fill out each section of the VAT return.

to read.

Here are instructions on how to fill out block No. 7:

1. In column 1 we indicate the code for each operation.
2. Column 2 reflects the cost of goods, works and services sold without value added tax.
3. The following column 3 of section 7 of the VAT return is intended to indicate the cost of purchased products that are not subject to tax.
4. The last column summarizes the tax on purchased goods, works and services to which the deduction does not apply.

Column 3 and column 4 of section 7 of the VAT return are filled out only by taxpayers. Tax agents put dashes in these cells.

IMPORTANT!

All amounts in tax reporting are filled in rubles.

The procedure for filling out section 7 of the VAT return

So, how to fill out section 7 of the VAT return? All information is taken from the accounting and tax registers of the organization. The submission format is electronic, regardless of the size of the company. To fill out, existing transactions are detailed according to the established codes. If there were several similar transactions in the period, the information must be summarized.

How to fill out section 7 in VAT - data reflection algorithm:

• In gr. 1, the implementation operation code is entered.
• In gr. 2, proceeds according to the specified code from sales are entered without tax.
• In gr. 3, the cost attributable to the cost price is entered.
• In gr. 4, an amount of tax is entered that is not deductible.

Corresponding gr. 3, 4, Section 7, VAT returns are not always generated, but only when reflecting data on transactions in accordance with Art. 149 NK. If information is entered on other types of transactions (for example, on loans provided), dashes should be entered in these columns.

Section 7 of the VAT return – codes:

• Sale of land – 1010806.
• Sale of medical products – 1010204.
• Transportation of passengers – 1010235.
• Housing for rent – ​​1010239.
• Lawyer services – 1010291.
• Issuance of loans – 1010292.
• Assignment of rights of claim – 1010258.
• Sale of goods under customs regime – 1010401.
• Rental of municipal/state property – 1011703.
• Property for own use – 1011802.

Important! From 10/01/16 until the end of 2021, the Federal Tax Service of the Russian Federation exempted from VAT taxation transactions for the sale of waste paper (letter No. SD-4-3 / [email protected] dated 12/14/16). Since the encoding has not been officially approved, it is recommended to use the “waste paper” transaction code in section 7 of VAT at the value 1010230 for sub. 31 clause 2 art. 149.

Sample

A representative of Gosuchetnik.ru LLC purchased a block of shares in the amount of 1,000,000 rubles in the third quarter of 2021. At the end of the third quarter, these securities increased in price. Their cost is 1,500,000 million rubles. The company sold securities at a price of 1,500,000 million rubles. In column 1 of the report we put the operating code from Appendix No. 1 - 1010243. Expenses for the purchase of securities not subject to contribution do not exceed 5%: the tax was deducted. Column 4 in quarterly reporting is not completed.

This is an example of filling out section 7 of the VAT return in 2020.

General requirements for the procedure for filling out the declaration

The tax return is submitted to the Federal Tax Service at the place of registration of the taxpayer in established formats in electronic form, along with documents that, in accordance with the Tax Code of the Russian Federation, must be attached to the tax return.
Note!

On January 1, 2014 , a new version of clause 5 of Article 174 of the Tax Code of the Russian Federation came into force, according to which taxpayers/tax agents are required to submit the corresponding tax return to the Federal Tax Service at the place of their registration:

• according to the established format in electronic form via telecommunication channels through an electronic document management operator ( regardless of the number of employees ).

Until December 31, 2013 When submitting declarations, the company was guided by clause 3 of Article 80 of the Tax Code, according to which, if the average number of employees did not exceed 100 people, reporting could be submitted on paper.