How is VAT calculated if the company is subject to simplified taxation?

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Published: 07/11/2017

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Before concluding a new contract for the supply of goods or services, organizations usually check potential counterparties and request from them a certain set of documents confirming their integrity. The list of such documents often includes an information letter stating that the company pays VAT or is exempt from tax.

• In what cases may a VAT letter be required?
• Is it necessary to provide if a request is received?
• How to write a letter about work without VAT
• What does a letter about working with VAT contain?

How to calculate revenue?

For the purposes of calculating and controlling revenue, the following rules apply:

Rule 1. Control the amount of revenue

The right to exemption is lost from the 1st day of the month in which revenue exceeds RUB 2,000,000.

Example

applies VAT exemption from 1 May. It is necessary to control revenue for:

• May June July
• June July August
• August, September, October
• Etc.

Rule 2. Revenue is calculated according to accounting data

Rule 3. We take into account the nuances of calculation

1. Revenue is calculated without VAT;
2. Advances are not taken into account in the calculation.

Rule 4. Only revenue that is subject to VAT is included in the calculation

According to paragraphs 3 and 4 of the Resolution of the Plenum of the Supreme Arbitration Court dated May 30, 2014 No. 33, receipts from transactions not subject to VAT are not taken into account in revenue.

The following receipts are not subject to VAT:

• From activities in respect of which UTII or PSN is applied;
• From transactions that are exempt from VAT on the basis of Article 149 of the Tax Code of the Russian Federation;
• From transactions that are not recognized as subject to VAT on the basis of Article 146 of the Tax Code of the Russian Federation;
• From the sale of goods (works, services), the place of sale of which is not recognized as the territory of the Russian Federation.

VAT on top of the contract price

“The cost of services under the contract is ___ rubles. without VAT. The customer pays additional VAT.”

VAT – CD * 18%,

Where CD is the cost of services (works, goods) under the contract.

Example No. 4.

Stimul LLC sells computer equipment to Safari JSC. In the section “Cost of goods” in the agreement it is stated: “The cost of services under the contract is 802,450 rubles. without VAT. The customer pays additional VAT.”

RUR 802,450 * 18% = 144.441 rub.

https://www.youtube.com/watch?v=ytaboutru

RUR 802,450 RUR 144,441 = 946.891 rub.

The invoice is drawn up by the Stimul accountant as follows: (click to expand)” style=”fancy”]

We suggest you read: Is an invoice for payment an agreement?

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How to exercise the right to release?

You can start applying the exemption from the first day of any month. To do this, no later than the 20th day of the month from which the exemption applies, you must submit to the Federal Tax Service:

• Notice “On the use of the right to exemption from the taxpayer’s obligations related to the calculation and payment of VAT”;
• An extract from the balance sheet and/or profit and loss statement (of the organization) or an extract from the book of income and expenses (IP);
• Extract from the sales book.

It is also necessary to restore VAT on the residual value of fixed assets (intangible assets) and on the value of inventories that, before the application of the exemption, were not used in transactions subject to VAT.

When is it permissible not to allocate VAT in a contract?

There are situations when an individual entrepreneur and a legal entity work without VAT and have the right not to indicate it in the contract:

• when the company has chosen a special tax regime and is exempt from paying VAT (for example, in connection with the simplified tax system);
• products manufactured or purchased by the company are not subject to VAT;
• when exporting or importing goods not subject to value added tax;
• according to Article 145 of the Tax Code of the Russian Federation, a business with revenue not exceeding 2 million rubles for the previous 3 months is exempt from paying VAT (provided that such exemption was obtained in the manner prescribed by law);

Important!

According to the Ministry of Finance, if a company has zero income, this does not relieve it of its duties as a tax agent. But at the same time, judicial practice shows that companies that have operated for less than 3 months cannot receive VAT exemption, since the main condition for the revenue limit is not met.

• the company is a participant in the Skolkovo project, which gives it the right not to pay this tax for 10 years from the date of obtaining resident status.

There is also a category of transactions to which preferential taxation applies, for example:

• provision of cash loans on terms of urgency, payment and repayment;
• provision of services by non-profit educational and cultural institutions: museums, theaters, concert halls;
• sale of scrap metal;
• if goods or services worth up to 100 rubles per unit are transferred as part of advertising activities.

Companies and individual entrepreneurs carrying out these types of activities may not allocate the amount of VAT in the contract.

Important!

The company must correctly evaluate and interpret each difficult case with the allocation and payment of VAT, with the acceptance of the tax for deduction. Confusion in transactions is fraught with sanctions and additional charges.

What to do with the VAT return?

For the period during which the VAT exemption was applied, declarations are not provided.

If the exemption is applied from the first month of the quarter, then the restored VAT is included in the declaration for the last quarter preceding the application of the exemption.

If the exemption applies from the second or third month of the quarter, then the declaration for this quarter must be submitted according to the general rules. In this case, the declaration reflects only transactions for the period of the first quarter before the start of application of the exemption. Such a declaration also includes the restored VAT.

How to write in the Agreement that VAT is not subject to Usn

Government of the Russian Federation dated September 30, 2015 No. 1042, and when selling accessories included in sets of medical products, separately from this set, VAT exemption is applied if there is a registration certificate for these accessories indicating the codes provided for in the list. 2. Transactions not subject to VAT Make full payment for services provided in the amount and manner provided for in this Agreement. 3. 2.

The Contractor undertakes: 3. 2. 1. Provide equipment repair services. 3. 2. 2. The Contractor has the right to involve non-employees of the Contractor in the provision of services. Responsibility of the parties and resolution of disputes 4. 1. For non-fulfillment or improper fulfillment of obligations arising from this agreement, the Parties bear responsibility, the basis and amount of which are established by the current legislation of the Russian Federation. 4. 2. Rationale for the conclusion: In accordance with paragraphs 2, 3 of Art. 346. 11 of the Tax Code of the Russian Federation, organizations and individual entrepreneurs using the simplified tax system are not recognized as VAT payers, with the exception of VAT payable when importing goods into the territory of the Russian Federation, as well as VAT paid in accordance with Art. 174. 1 Tax Code of the Russian Federation. According to paragraph 1 of Art. 168 of the Tax Code of the Russian Federation, when selling goods (work, services), transferring property rights, the taxpayer, in addition to the price (tariff) of the goods (work, services) sold, transferred property rights, is obliged to present the corresponding amount for payment to the buyer of these goods (work, services), property rights tax From the provisions of paragraph 2 of Art. 346. 11 of the Tax Code of the Russian Federation and paragraph 1 of Art. 168 of the Tax Code of the Russian Federation it follows that individual entrepreneurs who use the simplified tax system and are not VAT payers, in addition to the price of goods (work, services) sold, should not present the corresponding amount of VAT for payment to the buyer. At the same time, tax legislation does not contain a direct prohibition on issuing invoices with an allocated amount of VAT by taxpayers using the simplified tax system. The legislation also establishes cases when “simplifiers must keep a log of received and issued invoices. This obligation arises when an organization carries out intermediary activities in the interests of other persons, when carrying out agency and commission transactions on its own behalf, as well as when operating under a transport expedition agreement in the interests of other persons, if the company takes into account the amounts received under such agreements as part of income under the simplified tax system. For example, the above-mentioned Ajax LLC decided to use the services of a European company that does not have a representative office in Russia.

Thus, a domestic organization is recognized as a tax agent for this transaction: it is obliged to calculate VAT and pay it to the budget. According to the terms of the agreement, payment for services is 354,000 rubles, and it includes all taxes and fees payable in accordance with the legislation of the Russian Federation. Consequently, VAT is already included in the payment, although it is not allocated as a separate amount.

Other cases when: “Before the creation of our department in the company, sales managers were involved in drawing up contracts.

In this regard, contracts with buyers were all inconsistent. If the commercial terms were read and corrected, then no one paid attention to the accounting nuances. As a result, after some time the chief accountant received the signed original contract, in which the clients wrote whatever they wanted.

This led to problems in accounting, updated declarations and disputes with the accounting departments of counterparties. Now, before signing contracts, we make sure to submit them for approval to the accounting department so that accountants have the opportunity to make changes to tax conditions.” Buyers do not always transfer VAT to sellers if, according to the terms of the contract, the price does not include the amount of tax. However, this does not affect the seller’s obligation to pay VAT to the budget. In such cases, the seller will have to transfer the tax from his own funds with subsequent recovery of the paid amount from the buyer in court (for example, the resolution of the FAS Moscow District dated July 23, 2012 in case No. A40-68414/11-60-424, FAS Volgo-Vyatka district dated March 11, 2012 in case No. A43-7468/2011, FAS Far Eastern District dated December 12, 2011 No. F03-6075/2011).

Option 1. VAT in the contract is calculated separately and is indicated in the text along with the cost of goods, work, services, property rights. VAT is highlighted in the contract. In this case, both parties apply a common taxation system.

Accordingly, the buyer and seller agree in advance on all the conditions for payment, execution of the agreement and their obligations regarding taxation. In such a situation, the buyer knows the amount of VAT and will pay the tax based on the invoice presented to him.

How to confirm compliance with the conditions of release?

By the 20th day of the month following the 12th month of application of the exemption, you must provide the following to the Federal Tax Service:

Documents confirming that within 12 months the revenue was within 2,000,000 rubles. for every 3 consecutive calendar months (extract from the balance sheet/profit and loss account and sales ledger);

Notification of the extension of the use of the right to exemption over the next 12 calendar months or the refusal to use this right.

Accounting for input VAT under the simplified tax system

Although simplifiers themselves are not VAT payers, when purchasing goods, works, services from suppliers on the OSN, they pay them with VAT. Such input VAT under the simplified tax system in 2021, as before, is recognized as an expense simultaneously with the cost of purchased goods, work, and services (clause 8, clause 1, article 346.16 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance dated October 27, 2014 N 03-11-06 /2/54127 ).

But VAT on costs that are not included in expenses cannot be taken into account when calculating tax under the simplified tax system.

Drawing up an agreement is an important part of the procedure for formalizing civil legal relations between the parties to a transaction. One of the components of the agreement is the section regarding the cost and amount of VAT. Often VAT is not specified in the contract. Today we will talk about whether it is legal to draw up an agreement without VAT, how to draw up an agreement without VAT for individual entrepreneurs and legal entities, how to calculate the tax if its amount is not included in the agreement.

What happens if you do not provide documents for release?

If the taxpayer does not submit a Notice of transition to exemption and extension of the exemption period for the next 12 months, then he will not lose the right to work without VAT.

However, it is worth filing a notice to avoid blocking accounts due to the fact that the tax authority was not notified of the taxpayer's use of the exemption.

If the taxpayer does not provide documents confirming the legality of the application of the exemption, then he loses the right to this exemption for the entire period of its application. In this case, it is necessary to charge additional VAT, pay penalties and fines.

If VAT is not indicated in the contract, what will be the consequences?

When the “VAT” column of the agreement is empty, the buyer is primarily at risk. After paying the cost of the goods, the seller may make a claim against him for the need to pay VAT above the specified price. Therefore, it is better to protect yourself and discuss this issue at the stage of signing the contract.

As practice shows, most courts place responsibility in such situations on the seller, since it is his direct responsibility to present the tax to the buyer. Thus, the absence of a tax amount in the contract is an indication that the price includes “including VAT.” The buyer must calculate it based on the applicable rate: 20/120 or 10/110 (Article 164 of the Tax Code of the Russian Federation).

"VAT" - what is it?

VAT is a 20% tax (in most cases) on value added. It is levied on organizations operating under the general tax system (OSNO) and creating additional market value. Simply put, this is when organizations add an additional amount to the cost, and then part of this amount is returned to the budget. Organizations offer goods, perform work, provide services at a higher price than their cost.

From 2021, for general cases the rate is 20% (0% for international transport, 10% for the sale of food, newspapers, magazines, medical products, etc., this is stated in Article 164 of the Tax Code of the Russian Federation).

The difference between the cost of production and the price at which it is sold will be considered such a tax.

In our country, VAT has been applied since 01/01/1992. Initially, it was calculated in the manner approved by the law “On Value Added Tax”; since 2001, it has been subject to Chapter 21 of the Tax Code of Russia.

You can calculate VAT on the website https://www.ndscalc.ru/ using the online calculator. VAT calculation is a key accounting criterion for any organization working with OSNO. Beginning businessmen and managers do not understand enough the VAT allocation procedure. However, mistakes are unacceptable here; the fee may be very high. An online calculator will help you allocate and calculate value added tax without delving into mathematical complexities.

State contract with supplier using simplified tax system

The tax is applied in 2 stages:

1. Formation of the initial (maximum) contract price (ICP).
2. Contract price.

If we turn to Order of the Ministry of Economic Development No. 567 dated October 2, 2013, which defines the methods for forming the NMCC, we will see that the ministry does not give recommendations on the inclusion of VAT in the NMCC. But he reports that the cost must correspond to the conditions of the upcoming purchase. That is, if the subject of the order is included in the list of objects of taxation, the auction organizer must take into account this contribution to the NMCC (operations that are not recognized as an object of taxation are listed in Part 2 of Article 146 of the Tax Code of the Russian Federation).

In fact, when the customer specifies the NMCC, he must already take into account the value added tax.

If the contractor, for example, works using the “simplified tax system” (USN), then in the contract, in the price column, a dash is placed, or the wording “VAT is not subject to” is written.

According to the general rule, organizations and individual entrepreneurs operating under the simplified taxation system are not VAT payers. Therefore, when concluding a contract with a customer, they do not charge him VAT (they do not issue invoices).

In this case, the amount of value added tax, which is taken into account by the customer when determining the NMCC, will be an additional income of the procurement participant. This position is held by:

• The Federal Antimonopoly Service in its letter dated October 6, 2011 No. ATs/39173;
• The Ministry of Finance of the Russian Federation in a letter dated 02.02.2011 No. 03-07-07/02;
• Ministry of Economic Development of the Russian Federation in letters dated September 27, 2010 No. D22-1740, No. D22-1741;
• Federal Tax Service in letter No. SD-4-3/ [email protected] dated November 8, 2016.

The FAS letter dated October 6, 2011 No. ATs/39173 states:

From the text of the letter, we can conclude that organizations or individual entrepreneurs working under the simplified tax system are in a more advantageous position, in contrast to participants in the OSNO.

Let's figure it out in practice:

Let’s say 2 applications have been submitted to participate in the request for quotations. The first was submitted by a participant on the simplified tax system with a price of 110 thousand rubles, and the second by a participant on the OSNO with a price of 120 thousand rubles. including VAT.

The procedure was won by the participant who offered the most favorable conditions for the customer, i.e. participant on the simplified tax system with a contract price of 110 thousand rubles.

The second participant immediately included the VAT amount in his price offer. If it were not for VAT, its price would be 100 thousand rubles. and he would be the winner.

It should be noted that comparison of prices excluding VAT is popular among customers under 223-FZ.

In the Letter of the Ministry of Finance of the Russian Federation dated 02.02.2011 No. 03-07-07/02 we find the following opinion:

In Letters of the Ministry of Economic Development of the Russian Federation dated September 27, 2010 No. D22-1740, No. D22-1741 on this issue the following wording:

Federal Tax Service - letter No. SD-4-3/ [email protected] dated November 8, 2016:

Position of judicial practice:

However, the judges do not share the opinion of the above departments. So, for example, in the Resolution of the Supreme Court of the Russian Federation of August 18, 2014 No. A82-3316/2013, the Resolution of the Federal Antimonopoly Service of the Eastern Military District dated May 15, 2014 in case No. A29-6032/2012, the Resolution of the SZO Court of August 6, 2014 in the case No. A21-9158/2013, Resolution of the FAS SZO dated 02.20.2014 in case No. A21-2287/2013, Resolution of the FAS SZO dated 09.25.2013 in case No. A67-294/2013, the court sided with the customer, who paid the contractor for the obligations in the amount of the contract value minus VAT.

In the Decision of the Arbitration Court of the Krasnodar Territory in Case No. A32-32818/2015, the court also ruled in favor of the customer, who in the draft contract indicated the amount offered by the winner of the electronic auction, including VAT, despite the fact that the winner was on the simplified tax system.

Here is a screenshot of a snippet from this solution:

The same decision was made in the Decision of the Arbitration Court of the Kurgan Region in case No. A34-6052/2015.

It should be noted that there are examples when a decision was made in favor of the executor who is on the simplified tax system. An example of this is the Resolution of the Federal Antimonopoly Service No. F03-3381/2013 of August 13, 2013.