VAT in case of shortage: how tax authorities will look into your empty pocket

Restoration of VAT previously accepted for deduction - what is it?

When purchasing goods (works, services), the buyer-taxpayer takes the VAT presented as a deduction.
However, input VAT must be reinstated under certain conditions. What is VAT recovery? Restoration of VAT previously accepted for deduction is an operation in which VAT previously accepted for deduction must be restored, that is, paid to the budget.

Note that cases in which VAT restoration is necessary are regulated by law (clause 3 of Article 170 of the Tax Code of the Russian Federation).

For details, see the material “When to restore VAT” .

See also “The list of grounds for VAT restoration has been adjusted .

To restore or not to restore VAT in case of shortage?

In case of shortage of goods and materials, one should proceed from the contents of Art. 171 of the Tax Code of the Russian Federation , where an important criterion for the legality of a VAT deduction application is the use of inventory and materials for activities subject to this tax. Accordingly, if goods were initially purchased for further sale, VAT was legally claimed for deduction.

In the future, the loss of goods and materials does not make it possible to receive income from their resale (if these are goods) or to use them in activities (if these are fixed assets or materials). Accordingly, the VAT accepted for deduction on this property ceases to meet the eligibility criteria specified in Art. 171 Tax Code of the Russian Federation.

Restoration of VAT on goods (works, services, property rights) when their value decreases

If after the acquisition of goods (work, services, property rights) there is a decrease in value, quantity, tariff, then the VAT previously accepted for deduction for this transaction must be restored (clause 4, clause 3, article 170 of the Tax Code of the Russian Federation). Restoration must be made to the earliest date:

the date of receipt of the adjustment invoice for the reduction in the cost of goods (work, services, property rights);

For details, see the material “What is an adjustment invoice and when is it needed?”

the date of receipt of primary documents confirming the decrease in the value of goods (work, services, property rights).

In this case, the difference between the VAT amounts before and after the change in value is restored (paragraph 2, paragraph 4, paragraph 3, Article 170 of the Tax Code of the Russian Federation).

Restoration of VAT on goods (works, services) used in transactions taxed at a rate of 0%

From 01/01/2015, the norm was excluded from the Tax Code of the Russian Federation, according to which previously, when using goods, works, services, fixed assets and intangible assets in transactions subject to VAT at a rate of 0%, tax restoration was required (clause 3 of Article 170 of the Tax Code of the Russian Federation) .

At the same time, input tax on goods, works, services and property rights that are involved in the production of a new product, taxed at a zero tax rate, must be deducted according to special rules. The deduction occurs at the time the tax base is determined in accordance with Art. 167 of the Tax Code of the Russian Federation, subject to the conditions of paragraph 3 of Art. 172 of the Tax Code of the Russian Federation.

If, when purchasing goods (works, services, property rights) involved in transactions taxed at a zero rate, VAT was accepted for deduction, then such tax, according to officials, will have to be restored and accepted for deduction later (letter from the Ministry of Finance of Russia dated February 13, 2015 No. 03-07-08/6693). The restored VAT must be accepted for deduction at the time of determining the tax base in accordance with Art. 167 Tax Code of the Russian Federation.

Reflection of shortfalls in tax accounting

When purchasing inventory items that are subsequently lost, invoices received from sellers are included in the purchase ledger. The amount of VAT on this property as part of the total amount of VAT for the period is accepted for deduction. The total amount is reflected in the quarterly tax returns in the “Tax Deductions” section.

VAT is calculated in case of shortage at the same rates at which it was accepted for deduction when purchasing goods. In relation to fixed assets, VAT subject to recovery is calculated based on the residual value. An accounting certificate-calculation is drawn up indicating the following data on lost inventory items for each of their names:

Name;
unit of measurement;
quantity;
cost without taxes;
tax rate;
VAT amount;
price including VAT.

In the certificate, the data for all items of inventory items are summarized , and the total amount of VAT to be recovered is calculated. Based on the data in the calculation certificate, a line in the sales book is filled in. Completion of shortfalls in tax accounting ends with the submission of an updated tax return. The amount of the restored tax is reflected on line 090.

In judicial practice on the issue of VAT restoration in the event of a shortage, there are different positions. In order to make the right decision in a particular case, minimize tax risks and, at the same time, not overpay taxes, it is necessary to consult with specialists.

Restoration of VAT on property contributed as a contribution or contribution

In transactions with property used as a deposit or contribution, VAT is restored:

When using property, intangible assets to contribute to the authorized capital of business companies, partnerships or contributions to mutual funds of cooperatives. The exceptions are contributions of property to mutual investment funds (letter of the Ministry of Finance of Russia dated January 15, 2008 No. 03-07-11/09) and contributions under a simple partnership agreement (Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated June 22, 2010 No. 2196/10).
When using property and intangible assets for contributions under an investment partnership agreement.
When using property to replenish the target capital of a non-profit organization in accordance with Federal Law dated December 30, 2006 No. 275-FZ “On the procedure for the formation and use of target capital of non-profit organizations.”

VAT is restored in the period that corresponds to the date of the document on the transfer of property in full.

Fixed assets and intangible assets are an exception to this rule: for this type of property, restoration occurs in a part proportional to the residual value without revaluation (paragraph 2, paragraph 1, paragraph 3, article 170 of the Tax Code of the Russian Federation). At the same time, Chapter 21 of the Tax Code of the Russian Federation does not establish rules for determining the residual value of fixed assets. The Ministry of Finance of Russia believes that it is necessary to form the residual value in accounting by reducing the residual value by the amount of the revaluation, adjusted to take into account depreciation (letter of the Ministry of Finance of Russia dated 02.08.2011 No. 03-07-11/208).

The restored VAT must be indicated in documents on the transfer of property (property rights) and intangible assets. These documents are the basis for accepting an object for accounting and VAT amounts for deduction if the object is used in transactions subject to VAT (paragraph 3, paragraph 1, paragraph 3, Article 170, paragraph 11, Article 171, paragraph 8 Article 172 of the Tax Code of the Russian Federation, letters of the Ministry of Finance of Russia dated November 21, 2011 No. 03-07-11/317 and November 11, 2009 No. 03-07-11/294). The seller of the property cannot take into account the amount of restored VAT in income tax expenses (letter of the Ministry of Finance of Russia dated 02.08.2011 No. 03-07-11/208).

The seller does not issue an invoice for the transferred property, so it is not required to deduct VAT (Clause 3, Article 169, Clause 1, Clause 2, Article 146, Clause 4, Clause 3, Article 39, Clause 1, Art. 172, paragraph 1, paragraph 3, article 170 of the Tax Code of the Russian Federation). However, this does not relieve the obligation to register in the purchase book the documents on the basis of which the transfer is made.

You can argue

An analysis of arbitration practice shows that the courts are completely on the side of VAT payers, and at the highest level. An example is the decision of the Supreme Arbitration Court of the Russian Federation dated October 23, 2006 No. 10652/06, which considered the issue of invalidating the provision of the letter of the Federal Tax Service of Russia dated October 19, 2005 No. MM-6-03/886 regarding the requirement to restore VAT when a shortage of goods is identified during the inventory.

The senior arbitrators indicated that clause 3 of Art. 170 of the Tax Code of the Russian Federation provides for cases of restoration of VAT previously accepted for deduction. However, a shortage of goods discovered during the property inventory process is not one of these situations.

But it is not in the Tax Code. Therefore, the point of view is that the taxpayer must restore the VAT previously accepted for deduction in situations not expressly stated in paragraph.

3 tbsp. 170 of the Tax Code of the Russian Federation, is not in compliance with the current legislation on taxes and fees.

The arbitrators came to the same conclusions in the decision of the Supreme Arbitration Court of the Russian Federation dated May 19, 2011 No. 3943/11 regarding the restoration of VAT on expired goods.

Despite the legal position set out by the Supreme Arbitration Court of the Russian Federation back in 2006, local tax authorities still continued to demand the restoration of VAT in the situation under consideration. This is confirmed by judicial practice at the level of lower courts.

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Expert opinion

Musikhin Viktor Stanislavovich

Lawyer with 10 years of experience. Specialization: civil law. Member of the Bar Association.

39, 146, 168, 170 and 173 of the Tax Code of the Russian Federation and taking into account the economic nature of VAT, if there was no sale of goods to the final consumer, which is recognized as a VAT-taxable transaction, then this is the basis for restoring the previously deductible VAT.

Taking into account these recommendations of the Ministry of Finance of Russia and the legal position set out in the decision of the Supreme Arbitration Court of the Russian Federation dated October 23, 2006 No. 10652/06, specialists of the Federal Tax Service of Russia in a letter dated May 21, 2015 No. GD-4-3 / [email protected] came to the following conclusion. Amounts of VAT previously legally accepted for deduction upon disposal of property in cases not provided for in paragraph.

3 tbsp. 170 of the Tax Code of the Russian Federation (for example, as a result of a fire), cannot be restored.

A similar approach regarding the restoration of VAT on property lost due to an emergency situation was expressed by the tax service in a letter dated June 17, 2015 No. GD-4-3 / [email protected]

As a result of the inventory, a shortage of material assets was identified in the organization. We are talking not only about shortages, but also about damage to goods and materials. A decision was made to write them off. VAT was previously legally accepted for deduction. Should VAT be restored on the shortfall?

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

The organization is not obliged to restore VAT that was previously legally accepted for deduction on inventory items written off as a result of a shortage. In this case, disputes with the tax authority are possible.

Judicial practice shows that the restoration of VAT only on the basis that inventory items disposed of as a result of write-off are not used in transactions subject to VAT is not based on the norms of tax legislation.

According to the norms of Chapter 21 of the Tax Code of the Russian Federation (as applied to the situation under consideration), the deduction of VAT amounts is conditional on the fulfillment of three basic requirements:

goods (work, services) purchased for carrying out transactions subject to VAT (clause 1, clause 2, article 171 of the Tax Code of the Russian Federation);

purchased goods (work, services) are capitalized on the basis of the relevant primary accounting documents (clause 1 of Article 172 of the Tax Code of the Russian Federation);

the taxpayer has properly executed invoices issued by sellers of goods (works, services) (clauses 1, 2 of Article 169, clause 1 of Article 172 of the Tax Code of the Russian Federation).

Accordingly, for the application of VAT deduction, what matters is not the fact of using purchased goods (works, services) to carry out transactions subject to VAT, but their purpose. Moreover, for a number of cases, the provisions of Chapter 21 of the Tax Code of the Russian Federation provide for the need to restore VAT (clause 3 of Article 170, Article 171.1 of the Tax Code of the Russian Federation).

A closed list of situations in the event of which VAT amounts previously legally accepted for deduction are subject to restoration is established in clause 3 of Art.

Expert opinion

Musikhin Viktor Stanislavovich

Lawyer with 10 years of experience. Specialization: civil law. Member of the Bar Association.

170 Tax Code of the Russian Federation. Write-off of inventory items as a result of both the loss of their consumer properties (damage, defects) and due to their shortage in the number of cases listed in paragraph.

3 tbsp. 170 of the Tax Code of the Russian Federation, does not apply.

Consequently, the taxpayer does not have the obligation to restore the amounts of VAT previously claimed for deduction on such inventory items.

In letters from the Federal Tax Service of Russia dated 06/17/2015 N GD-4-3/ [email protected] , dated 05/21/2015 N GD-4-3/ [email protected] the tax authorities took into account the existing judicial practice * (2) regarding the absence of an obligation to restore VAT and agreed that the amounts of VAT previously legally accepted for deduction upon disposal of property as a result of a fire or accident are not subject to restoration, since these cases are clause 3 of Art.

170 of the Tax Code of the Russian Federation are not named.

In conclusion, we consider it useful to provide the explanations given in paragraph 10 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation dated May 30, 2014 N 33 “On some issues that arise in arbitration courts when considering cases related to the collection of value added tax.”

In particular, it is noted that when determining the tax consequences of the disposal (write-off) of property as a result of the occurrence of events beyond the will of the taxpayer (loss of property due to damage, battle, theft, natural disaster and similar events), it is necessary to keep in mind that based on the content of paragraph 1 of Art.

146 of the Tax Code of the Russian Federation, such disposal is not an operation taken into account when forming a taxable object.

However, the taxpayer is obliged to record the fact of disposal and the fact that the property was disposed of precisely on the specified grounds, without transferring it to third parties, since by virtue of clause 1 of Art.

54 of the Tax Code of the Russian Federation, he is obliged to prove the presence of those facts of his economic activity that affect the formation of the financial result, which serves as the basis for determining the scope of the tax liability.

We also recommend that you read the following materials:

— Encyclopedia of solutions. Restoration of VAT deductions in cases of loss, damage, or shortage of property;

— Encyclopedia of solutions. Accounting for disposal of materials as a result of theft, damage, shortage;

— Encyclopedia of solutions. Accounting for write-off of goods as a result of damage, shortage, theft;

— Encyclopedia of solutions. Accounting for losses from natural disasters, fires, accidents and other emergencies.

Answer prepared by: Expert of the Legal Consulting Service GARANT auditor Marina Pivovarova

The material was prepared on the basis of individual written consultation provided as part of the Legal Consulting service. For detailed information about the service, contact your service manager.

The value added tax is indirect and is calculated by the seller when selling products. In addition to the price for goods, the payment amount is presented, which is calculated at the appropriate rate. Payers are companies and entrepreneurs. Payers of import and internal taxes can be distinguished.

To calculate the value payable to the budget, it is necessary to establish the amount that was calculated during the sale, the amount of deductions and indicators for recovery. This procedure is required for amounts previously accepted for deduction. A popular question is whether VAT should be restored when writing off damaged goods.

Recovering VAT from advances received

The prepaid payment system involves receiving an advance payment and paying VAT on these amounts by the seller. The buyer has the right to accept these amounts for deduction (clause 1 of Article 154, clause 12 of Article 171, clause 9 of Article 172 of the Tax Code of the Russian Federation).

From 01.10.2014, the procedure for VAT restoration has been changed: the amount of VAT previously claimed for deduction on the basis of an advance invoice received from the seller is restored by the buyer in full if the shipment is equal to or exceeds the amount of the advance, and is restored in accordance with the invoice for shipment, if it is less than the advance payment.

You will find all the nuances of recovering VAT from an advance payment in the article “When and how can a buyer recover VAT from a transferred advance payment? ”

VAT recovery - how and when it is carried out, postings and examples

In the course of their activities, some enterprises are faced with the need to restore VAT, which was previously accepted for deduction.
In what cases does it become necessary to restore deductible VAT, how the procedure is drawn up, what entries are made in accounting.

What is VAT recovery?

This is the process of returning funds to the credit of account 68 on the balance sheet. During these actions, the previously accepted value added tax will be re-assessed for payment.

To carry out such a procedure, it is necessary to perform certain actions in a step-by-step manner. Below we discuss in what cases it is necessary to restore VAT, as well as step-by-step instructions for an accountant on how to carry out the procedure.

When does VAT need to be restored?

Reasons why there is a need to restore VAT:

Identification of shortages or facts of theft from the enterprise of fixed assets or inventories.
Damage and loss of property due to fires or natural disasters.
In case of loss of presentation of the released product.
Write-off of fixed assets due to wear and tear or liquidation before the expiration of the useful life.
Disposal of products due to expired shelf life.
Write-off of goods or materials used for their manufacture if a defect has been identified.
When transferring intangible and tangible assets to the authorized capital. In order to receive a tax deduction, an organization restores VAT, indicating it in transfer documents.
If a company is entitled to a 0% VAT tax rate when using a certain type of asset. It must have documentary evidence. The list of assets is regulated by the legislation of the Russian Federation.
In case the enterprise is subsidized by the state to cover the costs associated with the purchase of necessary goods or necessary services.
When operating property that is involved in processes that are not subject to VAT. This also includes operations carried out abroad, as well as when selling services or goods to citizens of another state. In such a situation, there is a need to restore VAT, and the tax on intangible assets is carried out according to the same scheme as the restoration of the residual value of the object.
The company's transition to a special regime, for example, from OSNO to UN. The recovery process occurs before the start of the quarter in which the enterprise switches to a special regime.
If the price per unit of product or service has decreased significantly, the supplier or service organization. In the calculations it will be necessary to indicate VAT with the old cost and with the new one. In addition, highlight the difference between these values. This is done in the same quarter in which documentation confirming the reduction in amount was received or in the quarter in which the adjustment type invoice was received.
When reselling a product.
When selling goods or selling property rights, or in case of termination of contracts.
In case of transfer of advance payment.

Step-by-step procedure for tax restoration

List of steps to restore VAT:

Carry out an inventory check with convening a commission and issuing a corresponding act.
Analyze and calculate the total value of assets for which it is necessary to restore the added tax.
Make and generate the accounting entries necessary for this procedure, as well as document the accounting certificate.
Declaration of information about the actions taken in quarterly reporting (in the VAT return). Then provide them to the tax office at the place of registration of the enterprise.
Make payment of the fee to the state budget.

VAT is subject to restoration within three months.

The balance sheet records the postings of other taxes. In tax accounting, a declaration is drawn up indicating the amounts, after which it is submitted to the Federal Tax Service. It is also recorded in the sales book. The tax amount is taken from the invoice and registered in the document.

When carrying out the procedure, the supplier makes corrective transactions, which are reflected in the invoice, this serves as the basis for displaying it as part of the sales book.

In addition, primary documentation that reflects changes in the cost of goods or services provided can also serve as a basis.

Recovering VAT from advances issued

When calculating the tax levy on the advance payment, the seller issues an invoice and sends one copy to the buyer. In accordance with paragraph 1 of Art.

171 of the Tax Code of the Russian Federation, the buyer has the right, on the basis of this document, to take into account the allocated amount in deductions. Deductions are made voluntarily, at the request of the buyer.

Therefore, it is best to enshrine a decision on a position on this issue in a document defining the policy of the enterprise.

But despite the presence of these two factors (invoice and fact of payment), this is not enough to deduct VAT.

The accompanying conditions are clearly regulated in the Tax Code of the Russian Federation, as well as the further actions arising from them:

The possibility of making an advance payment must be specified in the text of the concluded supply agreement.
The date of issue of the invoice for the advance payment must correspond to the five-day period allocated for issuing such documents. In addition, the act must contain all the necessary details according to the standards established by the Tax Code of the Russian Federation. Clause 5.1 art. 169.

Postings for VAT recovery from advances:

Dt68/2 Kt 76/VA, where:

D68/2 – subaccount for displaying settlements with budgetary organizations on VAT issues on account 68.
76/VA – subaccount for advances paid on account. 76.

On the restoration of VAT from advances issued

Accounting entries for VAT restoration

During VAT recovery operations, transactions are generated as follows:

Dt 19 Kt 68 - restoration of VAT on goods, work and services;

Dt 912 Kt 19 - inclusion of the restored VAT amount in other expenses.

Example:

LLC Ladoga purchased in February 2021 from the supplier Kenon LLC a batch of materials worth 219,000 rubles, including VAT - 36,500 rubles. The tax was accepted for deduction based on the invoice of Kenon LLC and reflected in the VAT return for the first quarter of 2021.

In April, there was a change in the price of the supplied material, and Kenon LLC decided to provide a discount of 5% of the total cost. An adjustment invoice was submitted for this fact.

The adjusted cost of the consignment amounted to 203,300 rubles, including VAT - 33,883 rubles.

According to tax legislation, Ladoga LLC must restore the difference in VAT amounts:

36,500 - 33,883 = 2,617 rubles.

This amount must be included in the declaration in the second quarter of 2020.

The accounting entries for VAT restoration are as follows:

In the 1st quarter of 2021:

Dt 60 Kt 51 - 219,000 rub. (batch of materials paid);

Dt 10 Kt 60 - 182,500 rub. (a batch of materials was received from Kenon LLC);

Dt 19 Kt 60 - 36,500 rub. (input VAT on purchased materials is reflected);

Dt 68 Kt 19 - 36,500 rub. (input VAT is accepted for deduction);

In the 2nd quarter of 2021:

Dt 10 Kt 6 — 2,617 rub. reversal (the cost of materials received is reduced in accordance with the supplier’s notification of the discount provided and the adjustment invoice);

Dt 19 Kt 60 — 2,617 rub. reversal (reduced input VAT on purchased materials in accordance with the supplier’s notification of the discount provided and the adjustment invoice);

Dt 19 Kt 68 — 2,617 rub. (the VAT amount on the adjustment invoice was restored).

If VAT is restored on property transferred as a deposit or contribution, then the transferring party takes the restored tax into account as part of financial investments (debit Dt 58).

The receiving party, according to the recommendations of officials (letters of the Ministry of Finance of Russia dated October 30, 2006 No. 07-05-06/262 and the Federal Tax Service of Russia for Moscow dated July 4, 2007 No. 19-11/063175), should reflect the amount of the restored tax with the entry “Dt 19 Kt 83".

These recommendations were made on the basis of the Accounting Regulations “Accounting for Financial Investments” PBU 19/02, approved by Order of the Ministry of Finance of Russia dated December 10, 2002 No. 126n, and the Accounting Regulations “Accounting for Fixed Assets” PBU 6/01, approved by Order of the Ministry of Finance of Russia dated March 30, 2001 No. 26n.

Restoration of VAT when writing off shortages during inventory: postings

Is it necessary to restore VAT when writing off shortfalls in excess of the norm? Shortages can no longer be used in the activities of the enterprise, therefore, in accordance with paragraph 2 of Art. 171 of the Tax Code of the Russian Federation, VAT on this property must be restored (letters of the Ministry of Finance of Russia No. 03-04-11/308 dated November 18, 2005; No. 03-04-11/132 dated May 6, 2006;

Question from Clerk.Ru reader
Nadezhda (Moscow)
Good afternoon! During the inventory, a shortage was identified. The perpetrators have not been identified. Is it necessary to restore VAT when writing off inventory? Thank you in advance!

According to the official position of the Ministry of Finance, VAT is subject to restoration if the purchased goods (work, services) are no longer used in activities subject to VAT.

For example, the Letter of the Ministry of Finance of the Russian Federation dated July 20, 2009 No. 03-03-06/1/480 explains that when property is disposed of for reasons related, for example, to shortages, the amounts of VAT previously accepted for deduction are subject to restoration and payment to the budget.

The Letter of the Ministry of Finance of the Russian Federation dated August 14, 2007 No. 03-07-15/120 explains that if the perpetrators are not identified, then upon disposal of property due to loss, damage, battle, theft, natural disaster and other similar reasons, the amounts of VAT previously accepted for deduction are restored in the tax period in which the missing property is deregistered; for depreciable property, VAT amounts are subject to restoration in the amount proportional to the residual (book) value of the property without taking into account revaluation.

Please note: when writing off inventory items, for example, due to theft, further use of inventory items for any operations is not expected, since the inventory items data is not available and they cease to be used at all. The list of cases of VAT restoration is established in clause 3 of Art. 170 Tax Code of the Russian Federation. This list is closed. Such a basis as a shortage identified during the inventory, among the cases listed in paragraph 3 of Art. 170 of the Tax Code of the Russian Federation, does not apply.

In the Decision of the Supreme Arbitration Court of the Russian Federation dated October 23, 2006 No. 10652/06), the court indicated that Article 170 of the Tax Code of the Russian Federation does not provide for the restoration of VAT previously accepted for deduction in the event of a shortage of goods identified during inventory.

There are numerous court decisions supporting this point of view. For example, in the Resolution of the Federal Antimonopoly Service of the Volga-Vyatka District dated June 29, 2009 No. F17-2257/2008-05-21, the court indicated that Article 170 of the Tax Code of the Russian Federation does not provide for the obligation to restore and pay VAT on inventory items that are not used in activities subject to VAT due to shortage.

In the Resolution of the Federal Antimonopoly Service of the North-Western District dated September 15, 2009 in case No. A56-6495/2009, the court explains that in paragraph 3 of Art. 170 of the Tax Code of the Russian Federation provides circumstances in which the taxpayer has an obligation to restore, when making settlements with the budget, the amounts of VAT previously accepted for deduction.

The disposal of inventory items as a result of a shortage does not change the purpose of their acquisition. Established in paragraph 3 of Art. 170 of the Tax Code of the Russian Federation, the list of grounds for VAT restoration is exhaustive. It does not contain such a basis for recovery as writing off inventory items as a result of a shortage.

Thus, the Tax Code of the Russian Federation does not provide for the taxpayer’s obligation to restore the amounts of VAT previously legally accepted for deduction when writing off inventory items as a result of a shortage. Based on the above, I believe that there is no need to restore VAT in this case.

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Every day two or three of the most interesting questions will be selected, the answers to which you can read in Natalia Lobanova’s consultations. If significant shortages are identified, the organization is obliged to conduct an inventory of goods and materials stored in the warehouse. In this case, shortages are reflected in accounting as of the date of inventory (clause 4 of Article 11 of Law No. 402-FZ) by posting:

Debit 94 Credit 10(41, 43…)

The cost of shortages identified during inventory is reflected

Write-off of the shortage in case of loss/theft is reflected by the following posting:

Debit 91-2 Credit 94

– a loss from a shortage of property is written off due to the absence of the guilty party (refusal to recover damages), or as a result of force majeure circumstances.

That. The writing off of shortages directly to the account 84 is not provided for by the norms of accounting legislation.

According to the Russian Ministry of Finance, input VAT on lost/stolen inventory items must be restored. However, you may not do this if you are ready for disputes with regulatory authorities. Arguments that allow organizations not to restore VAT previously accepted for deduction on property lost due to theft (if the perpetrators have not been identified), fire, damage, etc. are given below.

How to take inventory

In the accounting accounts, reflect the shortage at the time of completion of the inventory (drawing up the act) or on the date of preparation of the annual financial statements (i.e. no later than December 31 of the reporting year) (clause 5.5 of the Methodological Instructions approved by Order of the Ministry of Finance of Russia dated June 13, 1995 No. 49).

Accounting: write-off as expenses

Accounting for the shortage depends on the reason for which it arose:

due to natural loss (for inventories (MP));
through the fault of the financially responsible person;
as a result of force majeure (flood, fire, etc.).

If the cause of the shortage was force majeure, take into account the shortage of property as part of the losses of the reporting year at book value. Do the following wiring:

Debit 91-2 Credit 94

– loss from a shortage of property resulting from force majeure is written off.

In what cases is it necessary to restore input VAT previously accepted for deduction?

Situation: is it necessary to restore input VAT on property lost as a result of theft (fire, damage, etc.). The shortage was identified during the inventory

Yes need.

Input VAT on property lost due to theft (if the perpetrators have not been identified), fire, damage, etc., must be restored. This is due to the fact that such property was not used by the organization in transactions subject to VAT. And VAT deduction is possible only on property that is used in transactions subject to VAT (). The tax must be restored in the quarter in which the missing property is deregistered based on inventory results.

Commenting on similar situations, such clarifications are provided by regulatory agencies (letters of the Ministry of Finance of Russia dated May 15, 2008 No. 03-07-11/194, dated November 1, 2007 No. 03-07-15/175, dated August 14, 2007 No. 03-07-15/120, dated July 31, 2006 No. 03-04-11/132 and dated May 6, 2006 No. 03-03-04/1/421, Federal Tax Service of Russia dated November 20, 2007 No. ШТ -6-03/899).

The chief accountant advises: there are arguments that allow organizations not to restore VAT previously accepted for deduction on property lost due to theft (if the perpetrators have not been identified), fire, damage, etc. They are as follows.

An organization must restore VAT only in cases expressly specified in paragraph 3 of Article 170 of the Tax Code of the Russian Federation. Shortage of property (loss of property in the event of theft in the absence of perpetrators, fire, damage, etc.) is not mentioned in this paragraph. The Tax Code does not provide any other grounds for VAT restoration.

In addition, input VAT on property lost due to theft, damage, fire, etc. was previously legally accepted for deduction. By the time the deduction is applied, it is not necessary that the property has already been used to perform taxable transactions. It is sufficient that the organization has the intention to use it in this way. This follows from Article 171 of the Tax Code of the Russian Federation.

Since the loss of property does not change the original purpose of its acquisition, the organization has no grounds for restoring the VAT previously accepted for deduction.

Similar clarifications are contained in the letter of the Federal Tax Service of Russia dated May 21, 2015 No. GD-4-3/8627 with reference to the position of the Supreme Arbitration Court of the Russian Federation set out in the decision dated October 23, 2006 No. 10652/06.

The correctness of this approach is confirmed by numerous arbitration practice (see, for example, decision of the Supreme Arbitration Court of the Russian Federation dated May 19, 2011 No. 3943/11, determinations of the Supreme Arbitration Court of the Russian Federation dated October 21, 2009 No. VAS-13771/09, dated November 9, 2007 No. 13787/07, resolution of the FAS Moscow District dated July 15, 2014 No. F05-7043/2014, dated October 4, 2013 No. A40-149597/12, Central District dated October 18, 2012 No. A35-10180/2011, North -Caucasian District dated February 21, 2011 No. A63-13595/2009, Far Eastern District dated November 2, 2011 No. F03-4834/2011, Volga-Vyatka District dated September 9, 2011 No. A17-5842/2010).

It should be noted that law enforcement agencies can identify those responsible for the disposal of property. Court decisions may oblige these individuals to compensate the organization for damage or return lost property. If the guilty person returns the property and the organization uses it in transactions subject to VAT, adjust the previously restored tax amounts. To do this, submit an updated declaration to the tax office for the period in which tax deductions for this property were restored.

If the guilty person compensates for the damage with money, there is no need to adjust the amounts of previously restored tax deductions. This is explained by the fact that the compensation paid is not related to payment for goods (work, services) sold. Therefore, when receiving compensation, the organization does not become subject to VAT (clause 1 of Article 146 of the Tax Code of the Russian Federation).

Such clarifications are contained in the letter of the Ministry of Finance of Russia dated November 1, 2007 No. 03-07-15/175, which the Federal Tax Service of Russia sent to the tax inspectorates for use in their work (

During the annual inventory, a large shortage of goods was revealed. At the time of their acquisition and registration, the company accepted the “input” VAT for deduction. Do we now need to restore this tax amount and transfer it to the budget?

The question of the need to restore VAT on the amount of identified shortages of goods still remains controversial. The list of cases when tax legislation obliges organizations to restore VAT previously accepted for deduction is contained in clause 3 of Art. 170 Tax Code of the Russian Federation. There is no identification of shortages of inventory items. However, experts from the Russian Ministry of Finance believe that in the situation under consideration, the tax must be restored and paid to the budget. Let's tell you in more detail.

Fiscal approach

The point of view of financiers on the need to restore VAT is clearly illustrated by letter dated January 21, 2016 No. 03-03-06/1/1997. Let us present the logic of reasoning of the financial department specialists.

As a general rule, VAT amounts charged to an organization when purchasing goods are subject to deduction if these goods are used to carry out operations that are recognized as subject to VAT. Grounds - clause 2 of Art. 171 Tax Code of the Russian Federation. The object of VAT taxation is, in particular, operations for the sale of goods (work, services) in the territory of the Russian Federation. At the same time, the transfer of ownership of goods, results of work performed, and the provision of services free of charge is also recognized as a sale and, accordingly, is subject to taxation (subclause 1, clause 1, article 146 of the Tax Code of the Russian Federation).

Experts from the Ministry of Finance of Russia, based on the above provisions of the Tax Code, indicated that the disposal of goods for reasons not related to sale or gratuitous transfer is not subject to VAT taxation. Accordingly, when writing off inventory items due to the fact that for some reason they cannot be used in the future, the amounts of VAT previously legally accepted for deduction on these items must be restored and paid to the budget.

A similar position is contained in the letter of the Ministry of Finance of Russia dated March 19, 2015 No. 03-07-11/15015.

As you can see, when resolving this issue, the financial department does not proceed from the provisions of paragraph 3 of Art. 170 of the Tax Code of the Russian Federation, which lists cases of restoration of VAT previously accepted for deduction, and from the concept of the object of taxation for VAT and the procedure for accepting tax deduction.

You can argue

Article 23 of the Tax Code of the Russian Federation states that the taxpayer has the obligation to pay legally established taxes. Consequently, the obligation to pay to the budget the amount of VAT previously legally accepted for deduction must be provided for by law. But it is not in the Tax Code. Therefore, the point of view is that the taxpayer must restore the VAT previously accepted for deduction in situations not directly stated in paragraph 3 of Art. 170 of the Tax Code of the Russian Federation, is not in compliance with the current legislation on taxes and fees.

The tax authorities argued this fiscal approach by the fact that the goods disposed of as a result of shortages were not used in carrying out transactions subject to VAT. Tax officials pointed out that, based on the cumulative interpretation of the provisions of Art. 39, 146, 168, 170 and 173 of the Tax Code of the Russian Federation and taking into account the economic nature of VAT, if there was no sale of goods to the final consumer, which is recognized as a VAT-taxable transaction, then this is the basis for restoring the previously deductible VAT.

But the courts did not support the tax authorities and canceled the additional assessments, recognizing the demand for VAT restoration as unlawful. Such decisions are contained, for example, in the decisions of the Central District Court dated February 24, 2016 No. F10-43/2016 in case No. A09-4959/2015, the Ural District dated February 8, 2016 No. F09-203/16 in case No. A60-19040/2015 , FAS Moscow District dated July 15, 2014 No. F05-7043/2014 in case No. A40-135147/2013, dated December 25, 2013 No. F05-16440/2013 in case No. A40-34818/13, dated August 14, 2013 in case No. A40 -150879/12-20-680, dated November 16, 2010 No. KA-A40/13770-10 in case No. A40-17811/10-127-67, North Caucasus District dated February 21, 2011 in case No. A63-13595/2009 .

And the Federal Antimonopoly Service of the North Caucasus District, in a resolution dated 06/07/2013 in case No. A32-20948/2012, noted that the disposal of inventory items as a result of shortages, loss, damage does not change the original purpose of their acquisition. Therefore, there are no grounds for restoring previously accepted tax deductions in the event of loss of goods.

As you can see, if a dispute arises with inspectors, the company has every chance of winning the trial. But, in our opinion, today the risk that tax authorities will file claims against the organization is minimal. The fact is that in letter No. 03-01-13/01/47571 dated November 7, 2013, specialists from the Ministry of Finance of Russia, in order to form a unified law enforcement practice and reduce the number of tax disputes arising in connection with different interpretations of certain provisions of the legislation on taxes and fees, gave the following instructions to the tax authorities. In the event that written explanations of the Ministry of Finance of Russia (recommendations, clarifications of the Federal Tax Service of Russia) on tax issues are not consistent with decisions, resolutions, information letters of the Supreme Arbitration Court of the Russian Federation and (or) the Supreme Court of the Russian Federation, the tax authorities must be guided by the position of the courts. The above letter from the Ministry of Finance of Russia was communicated to lower tax authorities by letter of the Federal Tax Service of Russia dated November 26, 2013 No. GD-4-3/21097.

Taking into account these recommendations of the Ministry of Finance of Russia and the legal position set out in the decision of the Supreme Arbitration Court of the Russian Federation dated October 23, 2006 No. 10652/06, specialists of the Federal Tax Service of Russia in a letter dated May 21, 2015 No. GD-4-3/ came to the following conclusion. Amounts of VAT previously legally accepted for deduction upon disposal of property in cases not provided for in clause 3 of Art. 170 of the Tax Code of the Russian Federation (for example, as a result of a fire), cannot be restored.

A similar approach regarding the restoration of VAT on property lost due to an emergency situation was expressed by the tax service in a letter dated June 17, 2015 No. GD-4-3/

Results

VAT must be restored if the assets on which VAT was claimed for refund began to be used for non-taxable transactions. All cases when it is necessary to restore VAT are named in Art. 170 Tax Code of the Russian Federation.

Sources:

Tax Code of the Russian Federation
PBU 19/02, approved. by order of the Ministry of Finance of Russia dated December 10, 2002 No. 126n
PBU 6/01, approved. by order of the Ministry of Finance of Russia dated March 30, 2001 No. 26n

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