VAT on advances received in 2021: changes and latest news from 2021

Advance in 2021 at a VAT rate of 18%, shipment in 2021

In 2018

An agreement for the provision of services has been concluded between the parties. The price includes VAT, so the total amount under the contract in 2021 will not change due to changes in the VAT rate (20%).

24.10.2018

The selling organization received a 100% advance payment under the service agreement in the amount of 118,000 rubles. (including VAT 18%), put up the SF for an advance.

15.01.2019

On account of the advance received, the Organization provided services worth RUB 118,000. (including VAT 20%), put up the SF for sale.

Accounting with the Seller

24.10.2018

• VAT was calculated on the advance received at the rate of 18/118 - in the amount of 18,000 rubles. (118,000: 118 x 18).

15.01.2019

• VAT on sales was calculated and presented to the buyer at a rate of 20% - in the amount of RUB 19,666.67. (118,000: 1.20 x 20%).
• accepted for deduction of VAT on advances in the amount of 18,000 rubles. – as calculated in 2021.

SF for advance – VAT 18/118%

SF for sales – VAT 20%

Accounting with the Buyer

24.10.2018

• accepted for deduction of VAT on advances issued at the rate of 18/118 - in the amount of 18,000 rubles. (118,000: 118 x 18).

15.01.2019

• Input VAT was accepted for deduction at a rate of 20% - in the amount of RUB 19,666.67. (118,000: 1.20 x 20%);
• VAT on advances in the amount of 18,000 rubles was restored in the sales book. – how they were accepted for deduction in 2021.

General Audit Department on the procedure for calculating VAT on advance payments in connection with rate changes in 2021

Answer The Federal Law “On Amendments to Certain Legislative Acts of the Russian Federation on Taxes and Fees” dated August 3, 2018 No. 303-FZ (hereinafter referred to as Law No. 303-FZ) introduced amendments to Article 164 of the Tax Code of the Russian Federation concerning the amount of the VAT rate.

Thus, according to subparagraph c) of paragraph 3 of Article 1 of Law No. 303-FZ in Article 164 in paragraph 3, replace the words “18 percent” with the words “20 percent”

.

Paragraph 4 of Article 5 of Law No. 303-FZ provides that the provisions of paragraph 3 of Article 164 of the Tax Code of the Russian Federation (as amended by this Federal Law) apply to goods (work, services), property rights, shipped (performed, rendered), transferred starting from 1 January 2021

.

From the above provisions we can conclude that in relation to goods (work, services) of property rights shipped (performed, rendered) transferred starting from January 1, 2021, a VAT rate of 20% should be applied.

Therefore, until January 1, 2021, a VAT rate of 18% should be applied to transactions involving the sale of goods (works, services) and property rights.

In accordance with paragraph 1 of Article 167 of the Tax Code of the Russian Federation, the moment of determining the tax base is the earliest of the following dates:

1) the day of shipment (transfer) of goods (work, services), property rights;

2) payment day

, partial payment for upcoming deliveries of goods (performance of work, provision of services), transfer of property rights.

Moreover, by virtue of paragraph 14 of Article 167 of the Tax Code of the Russian Federation, if the moment of determining the tax base is the day of payment, partial payment for upcoming deliveries of goods (performance of work, provision of services) or the day of transfer of property rights, then on the day of shipment of goods (performance of work, provision of services) services) or on the day of transfer of property rights against previously received payment, partial payment, the moment of determining the tax base also arises.

Based on the foregoing, we believe that in relation to advance payments received before January 1, 2021,
regardless of the date of sale of goods (works, services) of property rights, the calculated VAT rate of 18/118 is applied
.

Subsequent sale of goods, work, services, property rights after January 1, 2021 entails the calculation of VAT at a rate of 20% on the cost of goods (work, services) sold.

. If in relation to such goods (works, services) the Organization received an advance payment before January 1, 2021, on the amount of which VAT was calculated at the rate of 18/118, then the Organization has the right to deduct such VAT at the time of sale of goods (works, services).

In this case, the Organization will not have the obligation to recalculate the amount of VAT calculated on the advance at the rate of 18/118

.

For example, the Organization received an advance payment for the upcoming delivery of goods in the amount of 118,000 rubles. in December 2021.

In January 2021, the Organization shipped goods in the amount of 240,000 rubles, including VAT - 40,000 rubles.

In this case, the procedure for reflecting transactions for calculating VAT will be as follows:

In 2021, upon receipt of an advance:

In 2021, when selling goods:

College of Tax Consultants, August 24, 2021

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Refund of advance payment to buyer in 2021: VAT

So, when returning an advance payment received in 2021, VAT in the supplier’s accounting is accepted for reimbursement on the date of return of the advance in its amount multiplied by 18/118.

When shipping goods and materials as an advance payment, VAT is deducted on the date of shipment, and the rate of tax accepted for deduction is equal to the rate at which the advance payment was paid.

The same rules apply if a partial refund of the advance payment is issued to the buyer. VAT is accepted for deduction on the date of shipment, the unused part of the advance payment is transferred to the buyer, the tax on it is reimbursed at the rate applied on the date of receipt of the advance payment. In the purchase book, code “22” is used to encrypt VAT when the advance is returned to the buyer.

The Federal Tax Service of Russia explained how to switch from VAT 18% to VAT 20%

Publication date: 10/30/2018 09:30

From January 1, 2021, the VAT rate is set at 20%. The Federal Tax Service of Russia published a letter with clarifications on the most difficult questions that taxpayers have in connection with the innovation. Thus, the VAT rate of 20% applies to goods (work, services), property rights shipped from January 1, 2021, regardless of the terms of the contracts and the date of their conclusion. If the contract is concluded in 2021 and the price in it is formed taking into account the VAT rate of 18%, but the shipment occurs in 2021, the tax must be paid at a rate of 20%.

If in 2021 the taxpayer received an advance for shipment in 2021, then VAT on these amounts is calculated at the old rate (18/118 of the amount of the advance), and for shipment against these advances - at a rate of 20%. In this case, VAT calculated on advance payments is deducted from the seller at the old rate.

In case of return of goods from January 1, the seller will not receive an invoice from the buyer for the return sale, but will issue an adjustment invoice. Tax agents purchasing goods (work, services) from a foreign person who is not registered with the tax authorities calculate VAT when transferring payment. If payment for the supply of goods (work, services) in 2021 is transferred to a foreign person in 2021, then VAT is calculated by the tax agent using a rate of 18/118%, and when shipped against payment, VAT is no longer calculated by the tax agent. If a tax agent in 2021 pays for goods (work, services) shipped in 2021, then VAT is also calculated by the tax agent at a rate of 18/118%. From January 1, 2021, foreign sellers of electronic services must calculate VAT on transactions not only with individuals, but also with organizations and individual entrepreneurs. That is, buyers of electronic services from foreign sellers are not recognized as tax agents. If electronic services are provided in 2021, and payment from buyers is received in 2021, the foreign organization must independently calculate VAT, but at the old rate of 15.25%.

If a foreign organization received payment from organizations and (or) individual entrepreneurs in 2021, and the services themselves are provided in 2021, then VAT is not calculated by the foreign organization. In this case, the responsibility for calculating and paying tax to the budget rests with the tax agent-buyer.

The clarifications were agreed upon with the Ministry of Finance of Russia and communicated to the territorial tax authorities by letter of the Federal Tax Service of Russia dated October 23, 2018 No. SD-4-3/ [email protected]

Is it necessary to pay VAT on advances ↑

There are a lot of nuances with paying advances for goods, work or services. And often accountants do not know what to do in a given situation. On some sites you can find VAT advances for dummies.

Received

The buyer is obliged to take into account the “input” VAT from the advance paid to the seller and the VAT taken into account from the advance.

It is then accepted for deduction when the invoice for all purchased goods is issued and payment is made in full.

This also applies to those transactions that occurred in different tax periods for the payment of VAT.

The buyer accepts VAT for accounting on the basis of an invoice, which is issued by the seller for each advance payment.

In other words, no matter how many advances the buyer pays, the seller is obliged to issue an invoice for each, and the buyer is obliged to register these invoices in his purchase book.

Video: VAT on Advance If the buyer paid an advance, and the amount of goods shipped turned out to be less than the advance payment, then the buyer must restore VAT in the part that is equal to the amount of goods shipped or work and services performed.

Issued (paid)

The situation is similar with issued invoices. The seller pays VAT to the budget on each advance payment that the buyer pays to him.

This is stated in paragraph 1 of Art. 172 of the Tax Code of the Russian Federation.

Then, each advance tax is taken as a deduction when calculating the total tax base for the shipped goods.

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If the advance payment is returned to the buyer, the seller is still entitled to a tax deduction, only within a year from the date of return of the advance payment.

It is worth remembering that the invoice must be drawn up in full accordance with the Rules for the preparation of these documents. Otherwise, problems with deductions may arise for both the buyer and the seller.

However, neither the seller nor the buyer can deduct VAT from the advance payment if the goods sold are taxed at a rate of 0%, or one of the parties applies a preferential tax regime, that is, is not a VAT payer.

VAT is deductible on the basis of invoices. If there is no such document, then the deduction is impossible.

You can deduct VAT on a check that was issued when purchasing goods in cash using an advance report.

Procedure for issuing invoices

The rules for issuing invoices are specified in Decree of the Government of the Russian Federation dated December 26, 2012 No. 1137.

This is still a document of a strict unified form, which must contain many information about both the seller and the buyer.

The “Correction” column has appeared in the new sample invoice. It is intended to correct a previously made mistake.

This column indicates information about the erroneous document, in its place a new one is created.

Other changes:

• in the “seller” column you can now only indicate its full name, without other details;
• in the line “Currency: name, code” it is necessary to enter information in full accordance with the All-Russian Classifier of Currencies;
• all amounts are entered into the document without rounding, together with kopecks and other “hundredths” units;
• The “Units of Measurement” column is divided into 2 columns – “Code” and “Symbol”. Information is entered here in accordance with the All-Russian Classifier of Units of Measurement;
• “Country of origin” is also divided into 2 halves – “Code” and “Short name”. They are filled out in accordance with the All-Russian Classifier of Countries of the World.

In the invoice field you must enter the serial number of the document. If the tax authorities do not find any document numbers during the audit, the taxpayer may have problems.

In the “Corrections” column when filling out the document for the first time, you need to insert “not entered”, then a dash will be automatically added in this column.

If changes were made, then when selecting “Made” you will need to select the serial number of the document that is being corrected and the serial number of the correction.

If an invoice is issued for an advance payment, then in the column “For advance payment” you need to put “Yes”. In this case, in the columns “Consignor and his address”, as well as “Consignee and his address” there will be dashes.

In the “Document currency” you need to select the currency of the transaction, and in the line “To the payment document” you need to enter all the numbers of payments and other documents for which funds were received as payment for this product.

In the “Information about the seller” line, you need to select “Organization”, if the seller is a legal entity, or “Individual entrepreneur”.

You also need to indicate all the details of these parties, including INN and KPP, as well as the full name of the manager and chief accountant.

The remaining fields must be filled out in accordance with the above Procedure.

Calculation examples

In February 2021, ABC LLC enters into an agreement with OPR LLC for the supply of goods for a total amount of 354 thousand rubles (including 54 thousand is VAT). The agreement provides for an advance payment of 40% of the transaction amount.

ABC LLC transfers the advance in February, and the goods are shipped in April. The seller's actions are as follows:

First. He issues an invoice for the advance amount:

354,000 * 0.4 = 141,600 rubles.

The VAT amount is equal to:

(141,600 * 18) / 118 = 21,600 rudders.

These actions must be done in February. 1 copy of the invoice must be given to the buyer, and the second must be registered in your sales book.

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Second. In April, after the entire shipment has been shipped, the seller issues an invoice for the entire transaction amount, that is, 354,000 rubles, including VAT of 54,000 rubles.

Third. Thus, in the 1st quarter of 2021, the seller paid VAT to the budget in the amount of 21,600 rubles, and in the second:

54,000 – 21,600 = 32,400 rudders.