When concluding a contract with a Russian organization, the director wants to tie the cost of the contract to the dollar or euro exchange rate, or even fix the exchange rate in order to insure himself against its fluctuations. In this case, the accountant must remember that this will require additional study of the legislation, because it is necessary to correctly reflect these transactions in accounting and tax accounting and correctly determine the base for VAT and income tax. Indeed, in some cases they will differ.
So, the terms of the contract may stipulate that the price of the contract is a conventional monetary unit, dollar or euro, subject to conversion into rubles on the date of payment and tied to the official exchange rate or another rate fixed in the contract. This allows us to do paragraph 2 of Article 317 of the Civil Code of the Russian Federation.
The ruble exchange rate is fixed in the contract
Let's consider a situation where the ruble exchange rate in the contract is not specified as the official rate of the Central Bank of the Russian Federation, but is fixed
somehow differently - with a certain value, or is set, for example, as the rate of the Central Bank of the Russian Federation + 2%. What will happen to the tax base for value added tax (VAT) and income tax?
VALUE ADDED TAX
In this case, everything depends on the date of payment and the date of fulfillment of obligations under the contract. Therefore, we will consider 3 options for the development of events. But first, let’s highlight the main legislative norms relating to VAT calculations in conventional units, dollars and euros.
Clause 1 of Article 167 of the Tax Code of the Russian Federation and clause 14 of Article 167 of the Tax Code of the Russian Federation.
Determines the moment of the tax base. It turns out that in our situation this is the earliest date: receipt of advance payment, or provision of a service (shipment of goods). Moreover, if the moment of determining the tax base is the date of payment, then on the date of shipment, on account of the previously received payment, the moment of determining the tax base also arises.
Clause 4 of Article 153 of the Tax Code of the Russian Federation.
Gives us the right to consider the moment of determining the tax base for VAT the day of shipment of goods, while when determining the tax base, the conventional monetary unit is recalculated into rubles at the rate of the Central Bank of the Russian Federation on the date of shipment of goods. Upon subsequent payment, the tax base will not be adjusted, and the resulting differences will have to be attributed to non-operating income or expenses.
These are the main legislative norms on which we rely. In addition, we mention the Letter of the Ministry of Finance dated 07/06/2012 No. 03-07-15/70, which should be used in the work and brought to the attention of taxpayers and tax authorities. The main essence of the letter: the received full prepayment (100%) gives the right not to recalculate the tax base for VAT at the rate of the Central Bank of the Russian Federation on the day of shipment of the goods.
All other letters from the Ministry of Finance and tax authorities devoted to this issue do not contain legal norms and are not addressed to a wide range of taxpayers, and therefore cannot be used in our conclusions.
1. We have received 100% prepayment to the settlement account for the future shipment of goods (performance of work, provision of services).
Using the Letter of the Ministry of Finance dated July 6, 2012 No. 03-07-15/70, we can conclude that upon receipt of 100% prepayment, we can use As a tax base for VAT, our fixed rate established by the agreement
, on the date of payment.
An example of VAT calculation with 100% prepayment.
A contract for the provision of services has been concluded. The cost of services is 1000 dollars, while the ruble exchange rate against the dollar is set at 54 rubles per 1 dollar. The contract provides for 100% prepayment. On the date of payment, the exchange rate of the Central Bank of the Russian Federation was 59 rubles per 1 dollar.
The customer pays 100% of the cost of the service in the amount of $1,000 at the rate of 54 rubles per $1.
The contractor receives 54,000 rubles into the account. VAT in the amount of 54,000*18/118=8,237 rubles will be charged on the prepayment amount. The cost of services provided after receiving full prepayment will no longer change for VAT purposes. The VAT amount will be fixed and on the date of service provision will remain at the level of 8,237 rubles. 2. Partial payment has been received to the bank account for the future shipment of goods (performance of work, provision of services).
If partial payment is received, then for the purposes of calculating VAT it is necessary to use only the official exchange rate of the Central Bank of the Russian Federation
and calculate VAT on the date of payment at the official rate, despite the fixed rate stipulated in the contract. At the time of provision of the service, the tax base will be determined for the unpaid part of the service at the rate on the date of provision of the service, and the prepaid part of the service, for the purpose of calculating VAT, has already been recorded as an advance payment.
Example of VAT calculation for partial payment
A contract for the provision of services has been concluded. The cost of services is $1,000, while the ruble/dollar exchange rate is fixed in the contract at 54 rubles per $1. The contract provides for 50% prepayment. On the date of prepayment, the official exchange rate of the Central Bank of the Russian Federation was 59 rubles per 1 dollar. On the date of service provision, the official exchange rate of the Central Bank of the Russian Federation is 60 rubles per dollar. On the date of subsequent payment for services, the official exchange rate of the Central Bank of the Russian Federation is 62 rubles per dollar.
The customer pays 50% of the cost of the service in the amount of 500 dollars at the rate of 54 rubles per 1 dollar (the rate fixed in the contract). The contractor receives 54*500=27,000 rubles into the account. But, for the purposes of calculating VAT, the tax base will be calculated from the cost of 500 dollars multiplied by the official exchange rate of the Central Bank of the Russian Federation
59 rubles/dollars, i.e. from the amount of 29,500 rubles. VAT in the amount of 4,500 rubles will be charged on the prepayment amount.
At the time of service provision, the official exchange rate of the Central Bank dollar is 60 rubles and the balance of our unpaid amount is 500 dollars. For the purposes of calculating VAT, it is necessary to take the official exchange rate of the Central Bank on the date of provision of the service
, therefore, the tax base for the purposes of calculating VAT will be 60*500=30,000 rubles and VAT on this cost will be 4,576 rubles.
The customer will pay at the rate fixed in the contract, i.e. 54 rubles per dollar, and an amount of 27,000 rubles will be credited to the current account. When paying after the service is provided, VAT will not be recalculated
on the date of payment 62 rubles/dollar, its amount is calculated
at the official exchange rate of the Central Bank of the Russian Federation on the date of service provision - 60 rubles ./Doll.
and will amount to 4576 rubles.
3. The goods are shipped in full (work completed, service provided) and only after that payment is received.
In this case, the rule of paragraph 4 of Article 153 of the Tax Code of the Russian Federation applies. VAT will be calculated on the date of sale of goods (rendering of services) at the official rate of the Central Bank of the Russian Federation
and its amount will not change in the future.
An example of VAT calculation for payment after shipment.
A contract for the provision of services has been concluded.
The cost of services is $1,000, while the ruble to dollar exchange rate is fixed in the contract at 54 rubles per $1. The contract provides for postpayment. On the date of service provision, the exchange rate of the Central Bank of the Russian Federation was 59 rubles per 1 dollar. On the date of subsequent payment for services, 62 rubles per dollar. At the time of provision of the service, VAT will be calculated on the amount of 59,000 rubles in the amount of 9,000 rubles, based precisely on the official exchange rate of the Central Bank, although the act in rubles will be issued in the amount of 54,000 rubles, precisely at a fixed rate. This tax amount will not change in the future, upon receipt of postpayment. INCOME TAX
Clause 8 of Article 271 of the Tax Code of the Russian Federation. We calculate income on the date of service provision
(shipment of goods, performance of work)
at the rate specified in the contract
.
If the company received an advance, then the amount of proceeds from the sale is determined at the official rate established by the Central Bank of the Russian Federation on the date of receipt of the advance
or the rate fixed in the contract, depending on which rate is linked to in the contract.
Payments in foreign currency, payment in rubles: exchange rate differences
In this situation, you will have significant differences between accounting and tax accounting, since in accounting, income and expenses are reflected in the form of exchange rate differences, but in tax accounting for the purposes of applying the simplified tax system, they simply will not exist.
In tax accounting, for the purposes of applying the simplified tax system, revaluation of claims (obligations), the value of which is expressed in foreign currency, is not carried out due to changes in the official exchange rate of foreign currency to the ruble established by the Central Bank of the Russian Federation. Income and expenses from this revaluation are not determined and are not taken into account (clause 5 of Article 346.17 of the Tax Code of the Russian Federation).
According to sub. 1 item 2 art. 346.17 of the Tax Code of the Russian Federation, expenses for the purchase of raw materials and supplies are taken into account as expenses at the time of repayment of the debt by writing off funds from the taxpayer’s current account, paying from the cash register, and if there is another method of repaying the debt - at the time of such repayment. Moreover, by virtue of clause 3 of Art. 346.18 of the Tax Code of the Russian Federation, expenses expressed in foreign currency are converted into rubles at the official exchange rate of the Central Bank of the Russian Federation established on the date of expenses.
Thus, in tax accounting, the cost of purchased materials will be determined based on the ruble amounts paid.
Now regarding the procedure for reflecting exchange rate differences in accounting. Note that in the situation under consideration, payment for materials is made after they are accepted for accounting.
Taking into account the provisions of clause 9 of PBU 3/2006 “Accounting for assets and liabilities, the value of which is expressed in foreign currency,” materials must be accepted for accounting in the ruble amount specified in the supplier’s shipping documents (for example, in invoices). Based on clauses 4, 5, 6 of PBU 3/2006, payables for payment, which are defined in euros in the agreement and accounts, should be reflected in the same ruble amount.
After such an initial reflection, the cost of materials in accounting will no longer be recalculated due to changes in the exchange rate of the Central Bank of the Russian Federation (clause 10 of PBU 3/2006).
According to clauses 7, 8 of PBU 3/2006, amounts of accounts payable for capitalized materials must be recalculated at the rate of the Central Bank of the Russian Federation:
- on the date of its repayment. In case of partial repayment of debt, recalculation occurs only in relation to the repaid part;
- on the reporting date (end of the month), if as of this date the debt has not yet been fully repaid.
If on the date of recalculation of the debt the exchange rate differs from the rate on the date the debt arose, then the resulting exchange rate difference is attributed to other income or expenses (clauses 11, 13 of PBU 3/2006).
Accordingly, the following entries must be recorded in accounting:
1) on the date of receipt of materials:
Debit 10 Credit 60
— purchased materials are accepted for accounting (in the ruble amount indicated in the shipping documents, which is actually equal to the amount in currency converted into rubles at the exchange rate of the Central Bank of the Russian Federation on the date of posting);
2) on the date of partial payment:
Debit 60 Credit 51
— partial payment for materials has been made. Its amount is determined as follows:
Amount in euros from the invoice for payment x 60% x euro exchange rate established by the Central Bank of the Russian Federation on the date of partial payment.
In relation to the paid part of the accounts payable as of the date of partial payment, the exchange rate difference is reflected. Its amount is determined as follows:
Amount in euros from the invoice for payment x 60% x (euro exchange rate on the date of posting – euro exchange rate on the date of partial payment).
Accordingly, the exchange rate difference will be negative if the euro exchange rate has increased compared to the date of capitalization, and positive if the euro exchange rate has fallen:
Debit 91-2 Credit 60
— other expenses are reflected in the form of a negative exchange rate difference due to the increase in the euro exchange rate;
Debit 60 Credit 91-1
— other income is reflected in the form of a positive exchange rate difference due to the depreciation of the euro;
3) on the reporting date (that is, on the last day of the calendar month), if the debt has not yet been fully repaid, the exchange rate difference is also reflected (one of the above entries is made depending on the sign of the exchange rate difference). Its amount is determined as follows:
Amount in euros from the invoice for payment x 40% x (euro exchange rate as of the posting date – euro exchange rate as of the reporting date);
4) on the date of final repayment of the debt:
Debit 60 Credit 51
— final payment for materials has been made. Its amount is determined as follows:
Amount in euros from the invoice for payment x 40% x euro exchange rate established by the Central Bank of the Russian Federation on the date of final payment.
In relation to the remaining part of the accounts payable on the date of final payment, the exchange rate difference of one of the above transactions is reflected, depending on the sign of the difference. Its amount is determined as follows:
Amount in euros from the invoice for payment x 40% x [euro exchange rate on the date of posting (if partial and final payment fall within the same month) or on the previous reporting date - euro exchange rate on the date of final payment].
Exchange differences are reflected in accounting separately from other types of income and expenses of the organization, including financial results from transactions with foreign currency (clause 21 of PBU 3/2006).
According to clause 22 of PBU 3/2006 in your financial statements, in particular, you need to disclose:
— the amount of exchange rate differences resulting from transactions of recalculation of the value of assets and liabilities expressed in foreign currency, payable in rubles;
— the official exchange rate of foreign currency to the ruble, established by the Central Bank of the Russian Federation, as of the reporting date.
The ruble exchange rate in the agreement is tied to the official exchange rate of the Central Bank of the Russian Federation
Let's consider a situation where the rate in the contract is tied to the official rate of the Central Bank of the Russian Federation. In this case, everything is simple: the exchange rate is taken by the official Central Bank of the Russian Federation on the date of prepayment in the case of prepayment, on the date of shipment in the case of postpayment:
- with 100% prepayment, VAT and income tax are calculated at the rate of the Central Bank of the Russian Federation on the date of prepayment;
- in case of partial payment, VAT and profit tax on prepayment are calculated at the rate of the Central Bank of the Russian Federation on the date of prepayment, VAT and profit tax on postpayment - at the rate of the Central Bank of the Russian Federation on the date of shipment (performance of work, provision of services);
- for postpayment - VAT and income tax on postpayment - at the rate of the Central Bank of the Russian Federation on the date of shipment (performance of work, provision of services).
How to set the price in currency
In order to correctly prepare procurement documentation and register foreign currency, the customer organization can use the OK classifier (MK (ISO 4217) 003-97) 014-2000. Also, the documentation must include information about the foreign currency and its official exchange rate to the ruble (Letter of the Ministry of Economic Development No. D28i-3643 dated December 7, 2015). This rule is applicable both in 44 Federal Laws and 223 Federal Laws.
IMPORTANT!
It is not worth noting in the procurement documentation that the Central Committee is formed for performers in the Russian Federation in ruble values, and for foreign ones - in the specified currency. This contradicts the requirements of the current legislation (clause 3, part 1, article 50 44-FZ).
According to the norms of 223 Federal Law, the customer organization has the right to establish payments in foreign currency in the order documents, without fixing the procedure for applying its exchange rate in relation to the ruble exchange rate, in the event that mutual settlements with the contractor will be carried out at the expense of funds available in foreign currency the customer’s account (clause 7, part 10, article 4 223-FZ).
Examples of wording of payment terms in foreign currency may be as follows:
- The price of services provided under this contract is ______ euros. Payment is made in rubles at the euro to Russian ruble exchange rate established by the Bank of Russia on the date of service provision.
- The price of the goods supplied is ____ US dollars. The contract price is fixed in US dollars and remains unchanged throughout the duration of the contract.
Double VAT
The specifics of calculating VAT should be discussed separately.
For the seller, the moment for determining the tax base for VAT is the earliest of the dates - the day of shipment or the day of payment (clause 1 of Article 167 of the Tax Code of the Russian Federation). However, the tax base is increased by income associated with payment for goods, works, and services sold (clause 2, clause 1, article 162 of the Tax Code of the Russian Federation). As a result, the seller calculates VAT twice - at the time of sale and at the time of payment if a positive exchange rate difference is detected. According to the Russian Ministry of Finance, a negative difference does not reduce the amount of tax (Letter dated March 26, 2007 N 03-07-11/74). The opposite point of view can be defended in court (Resolution of the Federal Antimonopoly Service of the Moscow District of March 26, 2008 in case No. KA-A40/13934-07). Exchange differences are subject to VAT at calculated rates of 10/110 x 100% or 18/118 x 100% (clause 4 of Article 164 of the Tax Code of the Russian Federation).
Example 4 . Let's use the conditions of example 1. The seller of Mercury CJSC will charge VAT three times: upon receipt of partial prepayment, on the date of shipment and on the date of final settlement with the buyer. In the latter case, the accountant will make the following entry:
Debit 91 Credit 68
- 4615.38 rub. — VAT is charged on the positive exchange rate difference.
If the seller issues an invoice in conventional units, then he re-registers it in the sales book - on the date of formation of the exchange rate difference and only for the amount of the exchange rate difference. If the shipment invoice was issued in rubles, then a separate invoice must be issued for the exchange rate difference. It is drawn up in a single copy and is not issued to the buyer (clause 19 of Resolution No. 914).
In the VAT return approved by Order of the Ministry of Finance of Russia dated November 7, 2006 N 136n, the amounts of exchange rate differences are reflected on lines 160 and 170.
But the buyer has the right to adjust VAT deductions in connection with exchange rate differences, both upward and downward (clause 2 of the Letter of the Federal Tax Service of Russia dated April 19, 2006 N ШТ-6-03/ [email protected] ). However, he will be able to do this only on the basis of an invoice. If the invoice is issued by the seller in That is, the buyer will use it again. But if the invoice received is drawn up in rubles, then you will have to contact the seller to make corrections to it on the date of payment. The buyer cannot use an invoice drawn up separately for exchange rate differences. In the sales book, the deduction adjustment is reflected as a cancellation of the original invoice - through an additional sheet (clause 7 of Resolution No. 914).
Example 5 . Let's continue with example 4. Due to the positive exchange rate difference, the buyer of Rotor LLC will increase the VAT deduction by the same amount that the seller will simultaneously add to the budget:
Debit 68 Credit 91
- 4615.38 rub. — additional VAT deduction was added due to the positive exchange rate difference.
