Tax agents are business entities who, by force of law, must calculate and pay tax for their counterparties, legal entities or individuals. An example of a tax agency is the obligation of organizations to withhold personal income tax from the income of their employees and transfer it to the budget. There is also a tax agency for VAT - in certain cases, legal entities, regardless of whether they pay this tax themselves or not, are required to perform the functions of a taxpayer for their suppliers.
List of persons recognized as tax agents for VAT (Article 161 of the Tax Code of the Russian Federation)
In accordance with Art. 161 of the Tax Code of the Russian Federation, a person (organization or individual entrepreneur) registered with the tax authorities is recognized as a tax agent for VAT if it:
- purchases goods (work, services) from a foreign person who is not registered as a taxpayer on the territory of the Russian Federation, with the purpose of their subsequent sale on the territory of the Russian Federation (clauses 1 and 2 of Article 161 of the Tax Code of the Russian Federation);
- carries out transactions (rent, purchase, transfer) with property owned by government bodies of the Russian Federation, constituent entities, municipalities and local governments (clause 3 of Article 161 of the Tax Code of the Russian Federation);
For more details, see the material “Tax agent for VAT in transactions with state property .
- sells property by court decision (clause 4 of article 161 of the Tax Code of the Russian Federation);
- sells confiscated property, ownerless and purchased valuables, treasures and valuables belonging to the state by right of inheritance (clause 4 of Article 161 of the Tax Code of the Russian Federation);
- conducts intermediary activities in the sale of goods (works, services, property rights) and participates in settlements with foreign persons who are not registered as taxpayers on the territory of the Russian Federation (clause 5 of Article 161 of the Tax Code of the Russian Federation);
- from 01.10.2018 - when providing railway rolling stock or containers on the territory of the Russian Federation on the basis of contracts of assignment, commission or agency agreements (clause 5.1 of Article 161 of the Tax Code of the Russian Federation);
- owns the vessel on the 46th calendar day after the transfer of ownership of it, if it was not registered in the Russian International Register of Ships within 45 days from the date of transfer of ownership (clause 6 of Article 161 of the Tax Code of the Russian Federation);
- from 01/01/2018 - buyers of raw animal skins, scrap and waste of ferrous (non-ferrous) metals, secondary aluminum and its alloys (Clause 8 of Article 161 of the Tax Code of the Russian Federation);
- from 01/01/2019 - buyers of waste paper (clause 8 of article 161 of the Tax Code of the Russian Federation).
Persons who apply special tax regimes (UTII, Unified Agricultural Tax, USNO, PSN) or persons exempt from paying VAT under Art. also work as tax agents for VAT. 145 and 145.1 of the Tax Code of the Russian Federation (Article 161 of the Tax Code of the Russian Federation, see also letters of the Ministry of Finance of Russia dated December 30, 2011 No. 03-07-14/133, October 5, 2011 No. 03-07-14/96, June 28, 2010 No. 03-07 -14/44, 06/22/2010 No. 03-07-08/181, 05/26/2010 No. 03-07-14/38 and 04/29/2010 No. 03-07-14/30).
How to fulfill the duties of a tax agent for VAT.
Tax agents are persons who are entrusted with the responsibility for calculating, withholding from the taxpayer and transferring taxes to the budget system of the Russian Federation (Clause 1 of Article 24 of the Tax Code of the Russian Federation). Tax agents for VAT are organizations and individual entrepreneurs (as well as individuals who are tenants of federal property) in the cases listed in Article 161 of the Code. Moreover, it does not matter whether these persons are VAT payers or not. Responsibilities of tax agents may arise for organizations and entrepreneurs that apply special taxation regimes or are exempt from VAT on the basis of Article 145 of the Tax Code of the Russian Federation.
Federal Law No. 85-FZ of May 17, 2007 introduced additions to Articles 170 and 171 of the Tax Code of the Russian Federation concerning the procedure for calculating VAT by tax agents. The new rules came into force on January 1, 2008. Rules have been established for accounting for VAT in a situation where a tax agent returns goods to a foreign partner or refuses work (services) performed.
