Certification costs under the simplified tax system are written off at a time

Cost structure for certification

There are indirect and direct costs of certification. Indirect ones involve spending on quality assurance. This:

Elimination of detected defects.
Quality control.
Measures to prevent defects.

There are also direct costs for certification. They are specified in paragraph 4.2 of the Certification Rules, approved by Resolution No. 44. Costs include the following:

Work carried out by an accredited center.
Samples needed for testing.
Expenses for the tests themselves, which are carried out in the laboratory.
Checking the state of production and its certification.
Checks performed during control.
Review of the application.
Costs for storing and packaging samples that will be sent to the laboratory.

All expenses considered can be reflected in the costs of certification.

GLAVBUKH-INFO

The basic concepts and rules for certification and declaration of conformity are established by Federal Law of December 27, 2002 No. 184-FZ “On Technical Regulation”.

This Federal Law regulates legal relations with the following objects of technical regulation:

products;
processes of production, operation, storage, transportation, sales and disposal;
works, services.

The requirements for regulated objects are divided into mandatory requirements and requirements applied on a voluntary basis.

Mandatory requirements apply to products and processes associated with their life cycle from production to disposal.

Voluntary requirements apply to products, processes of work and provision of services.

Requirements for regulated objects are established by technical regulations, provisions of standards, codes of practice or terms of contracts.

A technical regulation is a document adopted by an international treaty of the Russian Federation, ratified in the prescribed manner, and establishing mandatory requirements for the application and implementation of technical regulation objects.

A standard is a document that establishes product characteristics, implementation rules and characteristics of the design processes (including surveys), production, construction, installation, commissioning, operation, storage, transportation, sales and disposal, performance of work or provision of services.

A set of rules is a document in the field of standardization that contains technical rules and/or descriptions of the processes of production, construction, installation, commissioning, operation, storage, transportation, sale and disposal of products and is applied on a voluntary basis.

Documentary certification of the compliance of products or other objects, production processes, construction, installation, adjustment, operation, storage, transportation, sales and disposal, performance of work or provision of services with the requirements of technical regulations, provisions of standards, codes of practice or terms of contracts is called confirmation of conformity.

Confirmation of compliance on the territory of the Russian Federation can be voluntary or mandatory.

Mandatory confirmation of compliance is carried out in the following forms:

mandatory certification;
acceptance of the declaration of conformity.

Only products put into circulation on the territory of the Russian Federation can be the object of mandatory confirmation of conformity. The list of objects subject to mandatory certification is established by a decree of the Government of the Russian Federation.

Mandatory certification is carried out by the certification body on the basis of an agreement between the applicant and the certification body.

An applicant is an individual or legal entity who, to confirm compliance, accepts a declaration of conformity or applies for a certificate of conformity and receives a certificate of conformity.

Work on mandatory confirmation of compliance is subject to payment on the basis of an agreement with the applicant. The cost of work on mandatory confirmation of product conformity is determined regardless of the country and/or place of origin of the product, as well as the persons who are the applicants.

Certification is a form of confirmation by a certification body of compliance of objects with the requirements of technical regulations, provisions of standards, codes of practice or terms of contracts.

Product compliance with all established requirements is confirmed by a certificate of conformity issued by the certification body.

Tax accounting

Certification costs require payment of VAT and income tax.

Features of VAT calculation

The company has the right to reduce the total amount of VAT by the amount of tax that was presented to the company when purchasing goods or services for the execution of transactions considered subject to taxation. The deduction is carried out on the basis of invoices issued by product sellers. An invoice can only be issued after the goods have been accounted for. A deduction can be made in respect of VAT amounts accrued on certification expenses if these conditions are simultaneously met:

The corresponding services were recorded in accounting under DT account 97.
Accounting entries were made based on existing primary documents.
There is an invoice that is issued in accordance with the law.
Certification is needed for activities that will be subject to VAT.

The transfer of product samples to the laboratory for testing will not be subject to VAT. This is due to the fact that this procedure does not involve the sale of products. The company is not deprived of ownership of the designs. The subject of taxation is the transfer of products for the needs of the company, if expenses on the goods are not deductible when determining income tax. In this situation, you need to take into account expenses when assessing taxes.

If a company stops producing products before the expiration of the document of compliance, the VAT deduction will not be restored. This is due to the fact that termination of issue with a valid certificate is not included in the list of situations in which VAT can be restored (clause 3 of Article 170 of the Tax Code of the Russian Federation).

Income tax

Certification costs must be taken into account in the structure of other costs arising during production and sales. In this case, the type of certification being carried out is not important: voluntary or compulsory. Related expenses reduce taxable profit only when the requirements of paragraph 1 of Article 252 of the Tax Code of the Russian Federation are met.

For the purpose of taxation of profits, expenses for a voluntary procedure are taken into account only when the event is carried out in the form of quality assurance on the basis of the law on technical regulation.

Voluntary certification cannot duplicate a mandatory event. The exception is inspections during which there is an analysis of various parties.

A company can include expenses for samples provided to the laboratory as expenses that reduce taxable income. They are needed for testing to determine compliance with the requirements. Sample costs include the cost of the sample itself, as well as the costs of storing and packaging it.

The possibility of reducing taxable income is due to the fact that samples are likely to be damaged during testing. That is, it will not be possible to implement them in the future. The corresponding conclusion was made by the FAS in a resolution dated January 23, 2007. If the samples were damaged, it is necessary to draw up an act for their write-off. The corresponding position is given in the letter of the Department of Tax Administration dated April 23, 2001.

IMPORTANT! When carrying out certification, even if it is mandatory, you need to pay a fee. It cannot be included in expenses. The amount of the duty reduces the profit subject to tax.

Taxation will be determined by what methods the company uses:

If a company uses the cash method, certification costs are recognized only after they are actually incurred. For example, research costs are recognized only after actual payment for laboratory services has occurred.
If a company uses the accrual method, expenses are recognized as taxable in the period in which they are incurred. It does not matter when exactly the payment occurred.

The letter of the Ministry of Finance No. 03-03-02/268 states that expenses must be distributed throughout the validity period of the certificate. If the company ceases issuing the document before the document expires, the balance of expenses that have not been transferred is recognized for tax purposes as a lump sum. However, gradual acceptance of spending is only one position. There is another one, according to which losses can be recognized at a time. In this case, there is no distribution among reporting periods. This position is confirmed by paragraphs. 2, paragraph 7 of Article 272 of the Tax Code of the Russian Federation.

Certification costs under the simplified tax system are written off at a time

The costs of certification can be considered as expenses to confirm the enterprise’s compliance with the provisions of the standards
11/14/2017 Author: Expert of the Legal Consulting Service GARANT, professional accountant Iraida Bashkirova
The organization applies the simplified tax system with the object of taxation “income minus expenses”. Forest management assessment certification is carried out in accordance with international forest certification standards. Certification is voluntary. The agreement to the supply contract specifies two costs, which depend on whether the organization has a certificate. The certificate is issued for one year. Then it is planned to extend it.

What is the accounting and tax accounting procedure for certification of forest management assessment by a third party?

Having considered the issue, we came to the following conclusion:

In accounting, the organization has the right to take into account the costs of forest management assessment certification as part of the costs of ordinary activities at a time or during the validity period of the certificate. The chosen accounting procedure must be approved in the accounting policy of the organization. The first method is currently considered more preferable.

In tax accounting, expenses for certification of an organization reduce the tax base when applying the simplified tax system, subject to other conditions provided for in Chapter 26.2 of the Tax Code of the Russian Federation. They should be written off as a lump sum on the date of payment to the organization that carried out the certification.

Rationale for the conclusion:

According to Art. 2 of the Federal Law of December 27, 2002 N 184-FZ “On Technical Regulation” (hereinafter referred to as Law N 184-FZ), certification is a form of confirmation by a certification body of compliance of objects with certain requirements. In other words, this is documentary evidence that products or other objects, design processes (including surveys), production, construction, installation, commissioning, operation, storage, transportation, sales and disposal, performance of work or provision of services comply with the requirements of technical regulations, documents on standardization or contract terms.

Confirmation of compliance on the territory of the Russian Federation can be voluntary or mandatory (Article 20 of Law No. 184-FZ).

Voluntary confirmation of conformity is carried out in the form of voluntary certification (clause 2 of article 20 of Law N 184-FZ). It is carried out at the initiative of the applicant on the basis of an agreement concluded between the applicant and the certification body. With voluntary certification, compliance with standardization documents, voluntary certification systems, and contract terms is established.

The objects of voluntary confirmation of conformity are not only manufactured and sold products, but also work performed, services provided, processes of production, operation, storage, transportation, sale and disposal, works and services, as well as other objects in respect of which standards, voluntary certification systems and contracts establish the corresponding requirements (Article 21 of Law No. 184-FZ).

Forest management certification is a certification of a forestry enterprise, which confirms the compliance of the enterprise’s activities with the principles and criteria of the international FSC standard, which are reflected in the Russian national FSC standard. For more information, see https://ru.wikipedia.org/wiki/Forest_Stewardship_Council, https://ru.fsc.org/ru-ru/o_nas/fsc_in_russia.

Accounting

According to clause 4 of PBU 10/99 “Expenses of the organization” (hereinafter referred to as PBU 10/99), the expenses of the organization, depending on their nature, conditions of implementation and areas of activity of the organization, are divided into:

— expenses for ordinary activities;

- other expenses.

Expenses for ordinary activities are expenses associated with the manufacture and sale of products, acquisition and sale of goods. Such expenses are also considered expenses the implementation of which is associated with the performance of work or provision of services (clause 5 of PBU 10/99). Expenses other than expenses for ordinary activities are considered other.

Based on clause 5 of PBU 10/99, the costs of certification of forest management assessments are included in the costs of ordinary activities.

Expenses are recognized in the reporting period in which they occurred, regardless of the time of actual payment of funds and other form of implementation (clause 18 of PBU 10/99).

Moreover, when expenses determine the receipt of income over several reporting periods and when the relationship between income and expenses cannot be clearly defined or is determined indirectly, then expenses must be reasonably distributed between reporting periods (clause 19 of PBU 10/99).

According to clause 65 of the Regulations on accounting and financial reporting in the Russian Federation, approved by order of the Ministry of Finance of Russia dated July 29, 1998 N 34n (as amended on January 1, 2011), expenses incurred by the organization in the reporting period, but relating to the following reporting periods, are reflected in the balance sheet in accordance with the conditions for recognition of assets established by regulatory legal acts on accounting, and are subject to write-off in the manner established for writing off the value of assets of this type.

Consequently, certification costs can be recognized on a straight-line basis over the life of the certificate.

In this situation, the certificate is issued for a period of one year. Therefore, we believe that the organization has the right to recognize the costs of forest management certification at a time or take them into account as expenses in equal shares during the validity period of the certificate, providing for the chosen procedure in its accounting policies.

If the organization decides to take into account the expenses in question at a time, the following entry is made in accounting:

Debit 20 Credit 60

— costs of forest management assessment certification are taken into account.

This method (method) of writing off these expenses will be correlated with the method of writing off expenses in tax accounting, which is currently recommended by specialists from the Russian Ministry of Finance.

If the organization decides to take into account the expenses in question during the validity period of the certificate, then, let us remind you that in order to summarize information on expenses incurred in the current reporting period, but relating to future reporting periods, the Instructions for the use of the Chart of Accounts for accounting financial and economic activities organizations approved by order of the Ministry of Finance of Russia dated October 31, 2000 N 94n, account 97 “Future expenses” is intended.

In this case, the following entries are made in accounting:

Debit 97 Credit 60

— the cost of services for certification of forest management assessment is reflected as part of deferred expenses;

Debit 20 Credit 97

— the costs of forest management assessment certification are taken into account (in equal shares during the validity period of the certificate).

Tax accounting

Taxpayers who apply the simplified tax system and who have chosen income reduced by the amount of expenses as an object of taxation, when determining the tax base, have the right to take into account the expenses provided for in paragraph 1 of Art. 346.16 of the Tax Code of the Russian Federation, subject to their compliance with the criteria specified in paragraph 1 of Art. 252 of the Tax Code of the Russian Federation (clause 2 of Article 346.16 of the Tax Code of the Russian Federation).

The list of expenses specified in this paragraph is closed in nature and is not subject to broad interpretation.

Expenses not mentioned in clause 1 of Art. 346.16 of the Tax Code of the Russian Federation, are not taken into account when determining the tax base (letters of the Ministry of Finance of Russia dated December 20, 2012 N 03-11-06/2/147, dated December 7, 2012 N 03-11-06/2/144, dated June 4, 2012 N 03 -11-11/175, Federal Tax Service of Russia dated November 8, 2010 N ShS-37-3/14932, Federal Tax Service of Russia for Moscow dated December 9, 2011 N 16-15/ [email protected] , etc.).

At the same time, pp. 5 p. 1 art. 346.16 of the Tax Code of the Russian Federation establishes that taxpayers, when determining the object of taxation, reduce the income received by material expenses.

In turn, paragraphs. 6 clause 1 art. 254 of the Tax Code of the Russian Federation includes as material expenses costs for the acquisition of works and services of a production nature, performed by third-party organizations or individual entrepreneurs, as well as for the performance of these works (provision of services) by structural divisions of the taxpayer.

Works (services) of a production nature include the performance of individual operations for the production (manufacturing) of products, performance of work, provision of services, processing of raw materials (materials), monitoring compliance with established technological processes, maintenance of fixed assets and other similar work.

According to specialists from the Ministry of Finance of Russia, expressed in letters dated 02/16/2012 N 03-11-06/2/25, dated 04/13/2011 N 03-11-06/2/53, the costs of paying for services of a third-party organization are taken into account when determining the taxable base for tax paid in connection with the application of the simplified tax system, provided that the services are of a production nature, aimed at generating income and are documented (that is, they actually meet the criteria established by Article 252 of the Tax Code of the Russian Federation).

It should be noted that receiving a voluntary certificate of forest management assessment for compliance with international standards confirms that the organization is a responsible producer that complies with the law and takes on additional social and environmental responsibilities. Accordingly, certification costs are aimed at attracting potential customers.

Therefore, we believe that in this situation such expenses are of a production nature, aimed at generating income and can be taken into account as expenses when applying the simplified tax system as part of material expenses.

In addition, in accordance with paragraphs. 26 clause 1 art. 346.16 of the Tax Code of the Russian Federation, when determining the object of taxation, the taxpayer reduces the income received for expenses to confirm the conformity of products or other objects, production processes, operation, storage, transportation, sale and disposal, performance of work or provision of services to the requirements of technical regulations, provisions of standards or terms of contracts (letters Ministry of Finance of Russia dated January 31, 2014 N 03-1106/2/3799, dated October 24, 2006 N 03-11-04/2/219, dated November 28, 2006 N 03-11-04/2/250, Federal Tax Service of Russia for the city. Moscow dated February 16, 2009 N 16-15/013702). Note that for profit tax purposes, costs for certification of products and services are included in other costs associated with production and sales (clause 2, clause 1, article 264).

However, the provisions of this norm do not stipulate that expenses must be made without fail. The main condition is that such work must comply with the requirements of technical regulations, provisions of standards or terms of contracts, i.e. the nature of certification (voluntary or mandatory) for the purposes of applying paragraphs. 2 p. 1 art. 264 of the Tax Code of the Russian Federation has no significance.

In our opinion, the costs of certification of forest management assessment, that is, compliance with international standards, can be considered as costs of confirming the enterprise’s compliance with the provisions of the standards and taken into account as part of the costs when applying the simplified tax system on the basis of paragraphs. 26 clause 1 art. 346.16 Tax Code of the Russian Federation. We also believe that establishing the cost of products in the agreement to the contract, depending on whether the organization has the appropriate certificate, can be considered as carrying out certification in accordance with the terms of the contract.

Thus, in our opinion, the organization can accept the expenses in question as expenses when applying the simplified tax system or on the basis of paragraphs. 5 p. 1 art. 346.16 of the Tax Code of the Russian Federation, or on the basis of paragraphs. 26 clause 1 art. 346.16 Tax Code of the Russian Federation. In this case, expenses must comply with the requirements established by Art. 252 of the Tax Code of the Russian Federation, that is, they must be economically justified, documented and produced to carry out activities aimed at generating income.

Let us remind you that when applying the simplified tax system, expenses are recognized on a cash basis, that is, after they are actually paid.

Payment for goods (work, services) and (or) property rights is recognized as the termination of the obligation of the taxpayer - the purchaser of goods (work, services) and (or) property rights to the seller, which is directly related to the supply of these goods (performance of work, provision of services) and ( or) transfer of property rights (first paragraph of clause 2 of Article 346.17 of the Tax Code of the Russian Federation).

Regarding the moment of writing off these expenses, we note the following. Previously, specialists from the Russian Ministry of Finance insisted on accounting for expenses during the validity period of the certificate (declaration). They cited clause 1 of Art. as the basis. 272 of the Tax Code of the Russian Federation, which states: expenses are recognized in the reporting (tax) period when they arise based on the terms of transactions.

Later, the financiers' point of view changed. They turned their attention to pp. 3 paragraph 7 art. 272 of the Tax Code of the Russian Federation, according to which the date of incurring expenses for payment to third parties for work performed (services rendered) is the date of settlements in accordance with the terms of concluded contracts or the date of presentation to the taxpayer of documents serving as the basis for making settlements, or the last date of the reporting (tax) period. With reference to this norm, letters from the Ministry of Finance of Russia dated 07/01/2014 N 03-03-06/1/31600, dated 03/28/2014 N 03-03-RZ/13719 explain that the costs of product certification can be included at a time in other expenses associated with production and sales, as of the date of presentation to the organization of documents serving as the basis for making calculations.

The specified norm, paragraphs. 3 paragraph 7 art. 272 of the Tax Code of the Russian Federation is used by taxpayers who are on the general taxation system. In relation to an organization using the simplified tax system, this means that these expenses should be written off as a lump sum on the date of payment to the organization that provided certification services.

GUARANTEE

Post:

Comments

Antonina Sergeevna StroyServis LLC

March 14, 2021 at 3:42 pm

Our construction company uses the simplified tax system, but income minus expenses...we voluntarily acquired a Certificate of Compliance for the right to participate in tenders and government orders for 1 year..can I include this payment in expenses?

Costs for certification in accounting

Paragraph 4 of PBU 10/99 states that expenses in accounting are recognized either in the structure of expenses for the main forms of activity, or in the structure of other expenses. Expenses for the main form of activity include expenses associated with production and sales. Expenses for certification are included in this composition, since they are needed to establish compliance of the manufactured product with the requirements.

Expenses must be taken into account in the period in which they appeared. It does not matter when the actual payment occurred. Expenses that arose in the current reporting period, but are attributable to subsequent periods, are recorded in the structure of expenses of subsequent periods. They need to be written off. The write-off procedure is determined by the company itself.

Accounting entries

To record expenses for certification, these accounting entries are used:

DT60 KT51. Payment for certification services based on an extract from a banking institution.
DT97 KT43. Write-off of the cost of samples sent for research.
DT97 KT60. Fixation in the expenses of subsequent periods of the cost of work for certification on the basis of an agreement with the center, an act of execution of work.
DT19 KT60. Reflection of VAT on services.
DT68 KT19. Purpose for VAT deduction.

Every month you need to record this wiring: DT20 KT97. Reflection of costs for certification in the cost structure of products.

If the company's accounting policy involves one-time reflection of expenses in tax accounting, this entry is used:

DT68 KT77. Deferred tax liability.
DT77 KT68. Repayment of obligation.

The last entry will be used every month for the duration of the certificate - 3 years. If there are no primary documents confirming expenses, then postings cannot be made.

AUTHOR'S ADVICE

You need to understand that as soon as technical regulations are adopted for a particular product, it is excluded from the corresponding unified list. But what has been said, of course, does not mean that after this it does not need to be declared; it’s just that the requirements for this product and the forms for its declaration are already provided for by the technical regulations. Currently, due to the adoption of the relevant technical regulations, almost all sections of food products are excluded from the unified list of products subject to declaration of conformity, with the exception of products from the fishing industry, feed production products and microbiological industry products.

Accounting for the purposes of applying the simplified tax system

According to paragraphs. 4, 5, 7 PBU 10/99 expenses are recognized in accounting depending on their nature, conditions of conduct and areas of activity of the organization as part of expenses for ordinary activities or as part of other expenses. Those costs that are associated with the manufacture and sale of products are recognized as expenses for ordinary activities, and those that are not associated are recognized as other expenses.

Accounting will depend on:

does the company engage a special certification company, an attorney, or a certification specialist;
or independently carries out certification.

Example 1.

Kalinka LLC carries out certification of personal protective equipment (armored clothing). For this purpose, the company entered into an agreement with Certification LLC for certification.

The following entries will be made in accounting:

Debit	Credit	Sum	Description
76	51	20 000	Advance transferred to intermediary
20	76	40 000	Based on the report and certificate, the costs of certification are recognized in full
76	51	20 000	The final payment has been made in connection with the certification

However, certification and declaration can be carried out independently. In this case, state duties will be reflected in the accounting.

Example 2.

Meteor LLC plans to declare pesticides. To do this, you need to pay a state fee. According to the Tax Code of the Russian Federation, a fee of 5,000 rubles is established for state registration of pesticides and agrochemicals, potentially hazardous chemical and biological substances.

In accounting, the duty will be reflected as follows:

Debit	Credit	Sum	Description
68	51	5000	State duty paid
44	68	5000	State duty is included in the cost of pesticides

However, it is worth noting that self-registration and obtaining certificates and declarations significantly reduces costs, because tests and measurements are required.

Let's imagine a third situation.

Example 3.

purchases products abroad and receives a certificate for a specific batch of products. Certification costs are included in the period in which they are incurred. Costs include tests, measurements, etc., and in the future the products will be used for resale.

In accounting, the duty will be reflected as follows:

Debit	Credit	Sum	Description
44	60	50 000	The costs of product certification are reflected
90	44	50 000	Costs for product certification are written off as expenses for ordinary activities

Let's imagine a situation in which a company is a manufacturer and produces some kind of product that is subject to certification, which involves long-term use. In this case, the issue of cost accounting will arise.

The costs of obtaining a certificate are included in monthly expenses (clauses 25, 26 of PBU 14/2007, clause 9 of PBU 10/99):

if the certificate is issued for a certain period - during this period;
if the certificate is unlimited - for a period determined by the organization itself (more than a year).

GOOD TO KNOW
In contrast to catering products sold outside catering establishments and subject to declaration of conformity, assessment (confirmation of conformity) of food products of catering establishments intended for sale during the provision of services, as well as the processes of its sale, is carried out in the form of state supervision (control) over compliance with the requirements of the technical regulations of the Customs Union TR CU 021/2011 “On the safety of food products” and (or) technical regulations of the Customs Union for certain types of food products (clauses 1, 3, Article 21 TR CU 021/2011).

Tax accounting for the purposes of applying the simplified tax system

Taxpayers applying the simplified tax system with the object “income minus expenses” have the right to recognize expenses for certification of services on the basis of paragraphs. 26 clause 1 art. 346.16 of the Tax Code of the Russian Federation after actual payment and signing of the certificate of completion of work with the certification body (clause 2 of Article 346.17 of the Tax Code of the Russian Federation).

Voluntary confirmation of conformity is carried out in the form of voluntary certification. Mandatory confirmation of conformity is carried out in the forms of acceptance of a declaration of conformity and mandatory certification. There are a number of explanations from officials that also confirm the possibility of accounting for costs of certification and declaration (letter of the Ministry of Finance of Russia dated March 18, 2013 No. 03-03-06/1/8186).

GOOD TO KNOW
When determining the tax base for the tax paid in connection with the application of the simplified system, the taxpayer has the right to reduce the income received by him for expenses associated with obtaining a sanitary and epidemiological report and conducting an instrumental examination.

Judges also consider such expenses to be legitimate in the event of claims from the tax authority. In particular, in the resolution of the Federal Antimonopoly Service of the Moscow District dated 04/02/2010 No. KA-A40/2846-10, the court recognized the costs of certification as justified, since the taxpayer aims to increase the income received by the organization from its activities during the validity period of the issued certificates.

Thus, there are no risks regarding the recognition of expenses when applying the simplified taxation system.

Registration

VAT

Letter of the Ministry of Finance of the Russian Federation No. 03-03-06/1/14731 dated March 15, 2017

05/03/2017 Print

The Russian Ministry of Finance explained how expenses associated with conducting negotiations with potential counterparties are taken into account (even if no agreements are concluded as a result). And he told us how to take into account samples of goods (materials, instruments, components, equipment, etc.) received from potential contractors for testing (trial testing).

Negotiation costs

The costs associated with conducting negotiations on concluding a contract include, for example, costs of transportation, food, translation services, etc.

Income tax

Negotiation costs are entertainment expenses that are included in other expenses associated with production and sales, and are taken into account in an amount not exceeding four percent of the organization’s labor costs for the reporting (tax) period (subclause 22, clause 1 , clause 2 of article 264 of the Tax Code of the Russian Federation).

Please note: the tax base for income tax is determined on an accrual basis from the beginning of the calendar year. Therefore, the amount of labor costs, and therefore the maximum amount of entertainment expenses for the corresponding period, is also determined on an accrual basis. This means that if not all entertainment expenses can be recognized in the current period, perhaps they can be recognized at the end of the next reporting period or at the end of the calendar year, if they do not exceed the maximum allowable amount.

In tax accounting, expenses are recognized as justified and documented expenses (Clause 1, Article 252 of the Tax Code of the Russian Federation). According to the Ministry of Finance of Russia and the Federal Tax Service of Russia, in order to recognize entertainment expenses, in addition to the primary accounting documents confirming the expenses incurred (for example, an invoice for an official reception), it is necessary to draw up a primary document, from the content of which it follows that the expenses were incurred by the organization specifically for entertainment purposes. Such a document could be, for example, a report on entertainment expenses approved by the head of the organization (letter of the Ministry of Finance of Russia dated April 10, 2014 No. 03-03-RZ/16288, Federal Tax Service of Russia dated May 8, 2014 No. GD-4-3/8852).

To recognize entertainment expenses, it does not matter whether, as a result of negotiations, agreements with potential counterparties are concluded or not.

Value added tax

The amount of “input” VAT on entertainment expenses can be deducted only in the part related to entertainment expenses recognized for profit tax purposes (clause 7 of Article 171 of the Tax Code of the Russian Federation).

Accounting

There is no special accounting procedure for the costs of negotiations in accounting. Such expenses are recognized, as a rule, as part of expenses for ordinary activities in the manner provided for reflecting similar expenses (for example, costs for third-party services).

Example 1

. Accounting for entertainment expenses.

The cost of an official lunch in a restaurant with potential suppliers was 118,000 rubles (including VAT - 18,000 rubles). The lunch took place in the first quarter.

The organization's labor costs in the first quarter amounted to 800,000 rubles. This means that entertainment expenses can be taken into account for profit tax purposes in the first quarter in the amount of 32,000 rubles (800,000 x 4%).

The accountant will make the following entries.

DEBIT 26 CREDIT 60

— 100,000 rub. (118,000 – 18,000) – reflects the costs of holding an official dinner with potential counterparties;

DEBIT 19 CREDIT 60

– 18,000 rub. – reflected “input” VAT on the cost of lunch;

DEBIT 68 subaccount “VAT calculations” CREDIT 19

– 5,760 rub. (18,000 x 32,000 / 100,000) – accepted for deduction of “input” VAT in terms of entertainment expenses taken into account for profit tax purposes;

DEBIT 09 CREDIT 68 subaccount “Calculations for income tax”

– 13,600 rub. ((100,000 – 32,000) x 20%) – a deferred tax asset is reflected in connection with the occurrence of entertainment expenses that are not taken into account when determining the tax base for income tax in the first quarter, but can be recognized based on the results of subsequent periods.

Accounting for received samples of goods

The commented letter discusses the situation when potential suppliers provide the organization with samples of materials, instruments, components, etc. for testing (trial check) to make an informed decision on concluding a contract. In this case, the organization carries out destructive testing, and the samples are not returned to the supplier.

Income tax

As a general rule, the value of property received free of charge is taken into account as part of non-operating income (clause 8 of Article 250 of the Tax Code of the Russian Federation). The exception is the cases specified in Article 251 of the Tax Code of the Russian Federation.

Receiving test samples for the purpose of concluding contracts for the future purchase of such property is not one of the cases specified in Article 251 of the Tax Code of the Russian Federation. Therefore, for tax purposes, it is safer to reflect the market value of samples as part of non-operating income - on the date of their receipt (subclause 1, clause 4, article 271 of the Tax Code of the Russian Federation).

When transferring samples for testing, material costs include their cost in the amount of previously recognized non-operating income (subclause 3, clause 1, clause 2, article 254 of the Tax Code of the Russian Federation)

Value added tax

According to the Russian Ministry of Finance, given in the commentary letter, the gratuitous transfer of ownership of test samples of goods is a sale and is subject to VAT (subclause 1, clause 1, article 146 of the Tax Code of the Russian Federation). In this case, VAT is not presented to the organization for payment and is not accepted for deduction by it.

Accounting

Test samples received free of charge are reflected in inventories at actual cost - that is, at market price (clauses 2, 5, 9 PBU 5/01 “Accounting for inventories”, approved by order of the Ministry of Finance of Russia dated 06/09/2001 No. 44n). Data on the market price must be confirmed by documents or experts (clause 23 of the Regulations on accounting and financial reporting in the Russian Federation, approved by Order of the Ministry of Finance of Russia dated July 29, 1998 No. 34n).

The market price of samples is recognized as other income on the date of their receipt (clauses 7, 10.3, 16 PBU 9/99 “Income of the organization”, approved by order of the Ministry of Finance of Russia dated 05/06/1999 No. 32n).

When transferring samples for testing, their actual cost is included in expenses for ordinary activities (clauses 5, 16 of PBU 10/99 “Organization expenses”, approved by order of the Ministry of Finance of Russia dated May 6, 1999 No. 33n).

Example 2.

Accounting for test equipment samples.

The organization, as a test sample, received equipment intended for use in the main production, the cost of which, according to the transfer documents, is 25,000 rubles. The accountant will make the following entries:

DEBIT 10 CREDIT 91-1

— 25,000 rub. – the test sample is accepted for registration;

DEBIT 20 CREDIT 10

– 25,000 rub. – the test sample has been submitted for testing.

How to reflect product certification in accounting

Certifying the quality of a product or product is a costly matter.
It is necessary to conduct tests, ensure transportation of certified samples to the testing site and back, prepare documents for certification, and the like. Sometimes the cost amounts can be large, sometimes not. In which accounts should these costs be recorded and how should they be classified: as assets or as operating expenses? And if assets, what exactly? It all depends on the situation as well as the professional judgment of the individual accountant. So there is no single solution 04/24/2012 "General Book" magazine Author: Elina L.A.
Inexpensive certificates

Each organization decides for itself whether the costs of certification are significant for it or not from the point of view of its impact on financial results. As a reasonable criterion, you can use, for example, an indicator such as the share of certification costs in the cost of goods or products.

The materiality criterion must be enshrined in the accounting policy so that it is clear to inspectors, owners, and everyone else who will get acquainted with your statements why you take into account “certification” expenses one way and not another.

Minor amounts spent on any certification can be immediately written off to current sales expenses, guided by the principle of rationality.

Note. By the way, in tax accounting, many organizations also immediately write off the cost of inexpensive certificates as other expenses <1>. Moreover, despite the fact that the Ministry of Finance often recommends extending it for the duration of the certificate <2>.

Certification costs are significant for you

SITUATION 1. We certify a batch of goods

Obviously, the cost of obtaining a certificate should be included in the cost of your inventory. So if you have not yet accounted for the cost of the certified batch of goods (or your own products), then write off the costs of certification to account 41 “Goods” (or to account 20 “Main production”).

If the cost of goods (products) in your accounting has already been determined, certification costs can be taken into account as distribution costs, reflecting them on account 44 “Distribution costs”.

FROM AUTHENTIC SOURCES

SUKHAREV IGOR ROBERTOVICH — Head of the Department of Accounting and Reporting Methodology of the Department for Regulation of State Financial Control, Auditing, Accounting and Reporting of the Ministry of Finance of Russia

“If the subject of certification is specific units or batches of goods, then the costs of such certification should increase the cost of the certified goods.”

But there is another opinion.

FROM AUTHENTIC SOURCES

EFREMOVA ANNA ALEKSEEVNA - General Director of the Audit Office

“If inventories are purchased for resale, then certification costs must be reflected in account 44 <3>. However, as a rule, often according to the conditions established in the accounting policy, this account is reset to zero at the end of the month (all costs collected on it are transferred to the financial performance accounts). It turns out that expenses recognized at the time of provision of services for obtaining a certificate will be charged to the financial result in the same period, although the goods themselves will not yet be sold <4>. This will create an imbalance between the timing of recognition of revenues and expenses associated with the sale <5>. That is, the financial result will be distorted both in the period of incurring costs (profit is underestimated) and in the period of selling goods (profit is overstated).

In this case, for a reasonable distribution of costs between reporting periods, since the certificate was issued for a specific batch of goods, its cost must be taken into account as deferred expenses (FPR) and written off in proportion to the volume of sales of this batch.”

So, another option is to reflect the costs associated with the certification of a batch of goods or products as deferred expenses, writing them off gradually. But when preparing financial statements, it is no longer recommended to reflect all financial statements on one line. It is better to name your assets (if they are significant) so that all users of the statements understand what is hidden under this or that figure.

SITUATION 2. We certify a certain type of product or product

If you are certifying something that you are going to produce (or sell) over a long period, and cannot relate such certification to a specific batch of goods or products, then “certification” costs must definitely be taken into account separately.

When the period for which you need the certificate falls within the current year, you can write off the costs for it at a time. This will not in any way affect the accuracy of the financial result calculated at the end of the year. But if the certificate you received is needed for a longer period of time, you will have to decide in which account to record the costs for it and how to name them.

OPTION 1. Certificates are deferred expenses.

You can take into account the costs of the certificate in account 97 “Deferred expenses”. And in the reporting they will be reflected like this.

FROM AUTHENTIC SOURCES

EFREMOVA ANNA ALEKSEEVNA, Development Vector LLC

“STEP 1. Determine the period for writing off RBP as part of sales expenses. If the certificate is issued for a certain period, its value is written off using the straight-line method. If the period is unknown, the organization must itself (using an expert method) determine the period during which this type of goods (products) will be sold, and during this period write off costs using the straight-line method.

STEP 2. We determine which line of the balance sheet will reflect the remaining costs for certification of goods. RBP are indicated as a decoding of one of the types of inventories in the line “Inventories” (similar to work in progress) <6>. If the cost of this asset is significant, it should be allocated to a separate line “Certification costs”, located outside the line “Inventories”. We must not forget about the need to divide long-term assets and short-term ones <7>. To do this, in the balance sheet the indicator “BPR” is divided into two decoding entries, as is done, for example, for accounts receivable.”

OPTION 2. Certificates are intangible assets.

You can also use account 04 “Intangible assets”.

FROM AUTHENTIC SOURCES

SUKHAREV IGOR ROBERTOVICH, Ministry of Finance of Russia

“Certification costs generally correspond to the characteristics of the asset. Thanks to them, the organization will receive benefits in the future in the form of revenue from the sale of goods.

If the subject of certification is a type of product and the certificate cannot be correlated with specific lots or units, then such a certificate should generally be recognized as an intangible asset according to PBU 14/2007 “Accounting for Intangible Assets”.

The fact that you do not have exclusive rights to something in this case does not prevent you from doing it. After all, the exclusive right as a criterion for recognizing intangible assets was enshrined in PBU 14/2000, which was applied until 2008. But in the current PBU 14/2007 there is no such condition.

If you take into account the cost of certification as an intangible asset, it will be depreciated over its useful life. To determine it, you need to evaluate your plans for using the certificate. Moreover, even if you make a mistake, you can subsequently revise the period of its use. After all, this period is just an estimate that can be clarified <8>. So, when registering the costs of certification as an intangible asset, we strongly recommend that you establish the SPI - at least based on indicative data. Because otherwise, if you consider that your intangible asset does not have any specific useful life, you will not be able to charge depreciation in accounting <9>.

CONCLUSION

Regardless of which account you record a certificate for a certain type of product or product on - account 04 or account 97, the principle of writing off its value will be the same. The costs for the certificate will not be written off at once, but gradually. This will not affect the financial result.

If you recognize your certificate as an intangible asset, it will be easier for you to fill out reports. Although, of course, most accountants are more accustomed to accounting for certification costs as deferred expenses.

Note. In tax accounting, it is impossible to take into account the costs of certification as an intangible asset. However, for profit tax purposes, the Ministry of Finance recommends that certification costs be written off gradually over the validity period for which the certificate <10> was issued. So the amounts that will be taken into account as part of the expenses of the current period will be the same. This means that there will be no need to reflect differences according to PBU 18/02.

***

If you have serious doubts about how to account for certain costs: as an asset or as an operating expense, it is better to include everything as an expense, based on the accounting principle of prudence. This fully applies to certification costs.

<1> sub. 2 p. 1 art. 264 Tax Code of the Russian Federation; Letter of the Ministry of Finance dated March 1, 2012 N 03-03-06/1/111

<2> Letters from the Ministry of Finance dated November 17, 2011 N 03-03-06/1/764, dated May 25, 2011 N 03-03-06/1/307

<3> clause 9 PBU 10/99; Instructions for using the Chart of Accounts, approved. By Order of the Ministry of Finance dated October 31, 2000 N 94n

<4> para. 2 clause 9 PBU 10/99

<5> para. 2, 3 clause 19 PBU 10/99

<6> clause 20 PBU 4/99

<7> clause 19 PBU 4/99

<8> pp. 3 - 5 PBU 21/2008

<9> clause 23 PBU 14/2007

<10> sub. 2 p. 1 art. 264, paragraph 1, art. 272 Tax Code of the Russian Federation; Letters of the Ministry of Finance dated November 17, 2011 N 03-03-06/1/764, dated May 25, 2011 N 03-03-06/1/307

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Test sample - how to take into account?

Negotiation costs

The costs associated with conducting negotiations on concluding a contract include, for example, costs of transportation, food, translation services, etc.

Income tax

To recognize entertainment expenses, it does not matter whether, as a result of negotiations, agreements with potential counterparties are concluded or not.

Value added tax

Accounting

Example 1

. Accounting for entertainment expenses.

The cost of an official lunch in a restaurant with potential suppliers was 118,000 rubles (including VAT - 18,000 rubles). The lunch took place in the first quarter.

The accountant will make the following entries.

DEBIT 26 CREDIT 60

— 100,000 rub. (118,000 – 18,000) – reflects the costs of holding an official dinner with potential counterparties;

DEBIT 19 CREDIT 60

– 18,000 rub. – reflected “input” VAT on the cost of lunch;

DEBIT 68 subaccount “VAT calculations” CREDIT 19

– 5,760 rub. (18,000 x 32,000 / 100,000) – accepted for deduction of “input” VAT in terms of entertainment expenses taken into account for profit tax purposes;

DEBIT 09 CREDIT 68 subaccount “Calculations for income tax”

Accounting for received samples of goods

Income tax

Value added tax

Accounting

Example 2.

Accounting for test equipment samples.

DEBIT 10 CREDIT 91-1

— 25,000 rub. – the test sample is accepted for registration;

DEBIT 20 CREDIT 10

– 25,000 rub. – the test sample has been submitted for testing.

Recommendations R-49/2014-OK Mechanical engineering

According to the norms of paragraph 4.5 of PBU 8/2010 “Estimated liabilities, contingent liabilities and contingent assets” (hereinafter referred to as PBU 8/2010):

“An organization’s obligation with an uncertain amount and (or) deadline (hereinafter referred to as the estimated liability) may arise ... from the norms of legislation and other regulatory legal acts, court decisions, and contracts.”

“An estimated liability is recognized in accounting if the following conditions are simultaneously met:

a) the organization has an obligation resulting from past events in its economic life, the fulfillment of which the organization cannot avoid. In the event that an organization has doubts about the existence of such an obligation, the organization recognizes a provision if, as a result of an analysis of all circumstances and conditions, including the opinions of experts, it is more likely than not that the obligation exists;

b) a decrease in the economic benefits of the organization necessary to fulfill the estimated liability is likely;

c) the amount of the estimated liability can be reasonably estimated.”

The parallel norm of paragraph 2 of PBU 8/2010 “This Regulation does not apply to ... contracts under which, as of the reporting date, at least one party to the contract has not fully fulfilled its obligations, with the exception of employment contracts ...” applies, obviously, to obligations , arising from the subject of the contract, its economic and civil essence. In particular, the obligation of an economic entity to supply certain types of goods, works, and services cannot be reflected as an estimated liability. At the same time, the estimated obligations of the economic entity, which it still bears after the completion of the transaction, that is, after the sale of products, goods, works, services, must be reflected. As an example of this type of estimated liability, PBU 8/2010 indicates warranty service obligations. This example is not exhaustive, since a necessary and sufficient condition for the recognition of an estimated liability is its compliance with the definition and recognition criteria specified in paragraphs. 4 and 5 PBU 8/2010.

Among the estimated liabilities that must be recognized by an economic entity at the reporting date are obligations to test products, which remain with the supplier after the sale of such products. To verify the validity of this statement, let’s check whether the criteria for recognizing an estimated liability are met.

The obligation to test products is an obligation of the organization with an uncertain amount and (or) deadline. Indeed, even if the amount of testing costs, as well as the timing of the tests, are known in advance, the economic entity may incur additional costs associated with the delivery of the product during testing, its assembly on site, with the involvement of additional consultants, etc.

The obligation to test products for an organization is a consequence of past events in its economic life. This fact is confirmed by the conclusion of the contract, and the final obligation arises no later than the sale of the first copy (batch) of products. Such a realization in most cases should be considered as the occurrence of a past binding event.

Recognition of an estimated liability at an earlier date (for example, on the date of production) in many cases will contradict the norms of PBU 8/2010. This is due to the fact that the manufactured product, for various reasons, may not be subject to PSI (Customer’s refusal of the product before PSI, loss of the product in transit, obsolescence of the product and subsequent termination of the contract, Customer’s refusal of PSI for technical reasons, a decision was made to use PSI results for similar products, etc.). Thus, the inevitability of PSI before shipment (sale) of the product to the Customer is not always obvious.

However, in some cases, the Customer and the Contractor may have quite strict restrictions on the possibility of refusing PSI for the product. These restrictions may be reinforced by unconditional sanctions for refusal, the amount of which exceeds the amount of the PSI, or even lead to the loss of a certain segment of activity for the Organization. The Customer can also pay an advance payment for PSI.

The above conditions may increase the likelihood that there is an obligation to conduct SIP even before the shipment (sale) of products. The inevitability of PSI and the presence of a corresponding obligation before shipment (sale) of the product can thus be accepted as the result of a value judgment. This follows from paragraph 5a) of PBU 8/2010: “If an organization has doubts about the existence of such an obligation, the organization recognizes a provisional liability if, as a result of an analysis of all circumstances and conditions, including expert opinions, it is more likely than not, that there is a duty." It should be noted that, according to this provision, it is necessary to have an expert opinion (for example, the legal services of the Organization) on the existence of an obligation. The organization in this case provides the substantiation of the judgment discussed above by confirming the fact that at the corresponding point in time before shipment (sale) under similar contracts there was always an obligation that the parties considered as existing and which was followed by its repayment. In addition, there may be cases when the sale of products cannot be carried out without PSI. In these cases, the provision is recognized at the time of production, increasing its cost.

An organization cannot recognize a PSI liability until the product is released.

Below is a check of the conditions for recognizing a provision under PSI.

The organization cannot avoid the obligation to test products. This fact follows from the agreement itself, since violation of the relevant norm entails its subsequent restoration in court, as well as penalties and other types of liability.

The obligation to test products entails a likely reduction in the economic benefits of the organization. This fact occurs because the price of product testing is fixed in the contract.

The amount of the provision can be reasonably estimated. In addition to the conditions specified in the previous paragraph, it should be noted that additional testing costs can be estimated based on past practice of conducting them, as well as through calculations generated by economic services.

As a result, the operation in question at the time of product release should be reflected:

– in the assets of the Balance Sheet – as part of work in progress or finished goods (inventories),

– in the Statement of Financial Results – as an expense for ordinary activities;

– in the liabilities of the Balance Sheet – as part of the estimated liability.

Here it is necessary to emphasize that the estimated liability arises for each type of product (or for each batch) for which testing is provided.

Reflection of PSI expenses in the Financial Results Report at the time of sale of a product (batch of products) indicates the implementation of the principle of matching income and expenses, enshrined in PBU 10/99 “Organizational Expenses”. Also, in the reporting of an economic entity, a certain degree of uniformity in the recognition of testing expenses will be achieved, at the same time, such uniformity, due to certain circumstances, will not always be absolute.

Based on the above, when recognizing an estimated liability, it is recommended that its amount be attributed to account 20 “Main production” (25 “General production expenses”), or 44 “Sales expenses”.

Account 20 “Main production” (25 “General production expenses”) is used in the case when the sale of products cannot be carried out without PSI. In other words, accounts 20 “Main production” and 25 “General production expenses” are used if PSI are part of the technological process for manufacturing products, and the product cannot be considered a finished product without PSI.

Account 44 “Sales expenses” can be applied if the sale of products can be carried out without PSI under the terms of the contract.

Account debit	Account credit	Contents of a business transaction
20 “Main production”, 25 “General production expenses”, 44 “Sales expenses”	96 “Reserves for future expenses”	When shipping (or manufacturing) products, the Contractor records expenses for ordinary activities as a Debit, and an estimated liability as a Credit.
96 “Reserves for future expenses”	10 “Materials”, 70 “Settlements with personnel for wages”, 69 “Calculations for social insurance and security”, etc.	When the tests are actually performed, the costs of conducting them are compensated by the previously created estimated liability.

Contents of business transactions	Corresponding accounts
Contents of business transactions	Debit	Credit
1	Reflects payment for work on mandatory certification of own products (including VAT)	76	51
2	Expenses for mandatory certification of own products (excluding VAT) are reflected in deferred expenses	97	76
3	The amount of VAT presented by suppliers of work on mandatory certification of their own products is reflected	19	76
4	The cost of a unit of product transferred to the certification body for testing has been written off	97	43
5	The amount of VAT paid on work performed for mandatory product certification was submitted for deduction.	68-1	19
6	Part of the costs of mandatory certification attributable to the past reporting month was written off as production costs.	26	97
7	Certification expenses are written off to cost of sales (these expenses are written off at the end of the reporting month as part of similar expenses)	90-2	26