Structure and subaccounts
In order to carry out the correct conduct of the business activities of an enterprise, to identify indicators of control and analysis of financial statements, one should adhere to a certain structure for constructing accounts. Account 19 (Value Added Tax) includes several subaccounts:
- 19.1 - for the purchase of fixed assets (fixed assets) - takes into account the total amount of deductions for the acquisition or repair of fixed assets;
- 19.2 - for the purchase of intangible assets - indicates payment of tax for purchased intangible assets;
- 19.3 - for the purchase of inventories - reflects the amount of tax deduction paid to the budget for the purchase of inventories (raw materials, materials, semi-finished products);
- 19.4 - VAT on import or export.
An approximate form for compiling the structure of accounts is provided for by the approved Regulations of the Ministry of Finance. The structure of the account may change in accordance with the industry of the enterprise. Depending on what kind of activity the organization conducts and whether it has foreign partners, the structure and subaccounts for value added tax will be adjusted.
Basic business transactions and postings
Postings for value added tax on acquired assets are made both by debit and by credit. First, let's look at the debit entries:
- D 19 K 60 – receipt of funds from the supplier taking into account his invoice;
- D 19 K 76 – receipt of funds from a third party.
Credit entries are made based on other business transactions:
- D 08 K 19 – increase in the cost of an asset subject to input VAT not being deducted;
- D 20, 23, 29 K 19 - reflection of the write-off of tax on purchased works or services that are not taxed;
- D 68 K 19 – VAT deductible;
- D 91 K 19 – reflection of the write-off of VAT on non-operating income.
How to close an account and why it may not close
In order to close the account, the accumulated amounts are written off from debit to credit. The account can be closed when recovering value added tax from the budget, writing off VAT on purchased assets in non-taxable transactions, writing off VAT as expenses in the event of non-receipt of an invoice from the supplier or its loss.
Enterprises that operate under a simplified taxation system include VAT in the cost of purchased products. In the case of the simplified tax system, VAT is not reflected in account 19, which complicates tax calculations when switching to a general taxation system. Financial analysts still recommend keeping tax records and subsequently deducting (writing off) it in accordance with the rules of the Tax Code.
VAT on advances issued
To account for VAT attributable to the advance payment transferred to the supplier, it may be possible to use account 19. For this, a separate sub-account “VAT on advances issued” is opened for account 19.
So, based on the advance VAT invoice received from the supplier, the buyer will reflect the tax as follows:
Debit of account 19, subaccount “VAT on advances issued” - Credit of account 60, subaccount “Advances issued”
And, accordingly, it accepts it for deduction using the usual posting (clause 12 of article 171, clause 9 of article 172 of the Tax Code of the Russian Federation, Order of the Ministry of Finance dated October 31, 2000 No. 94n):
Debit of account 68, subaccount “VAT” - Credit of account 19, subaccount “VAT on advances issued”
Account 19 “Value added tax on acquired assets” is intended to summarize information on the amounts of value added tax paid (due for payment) by the organization on acquired assets, as well as works and services.
Sub-accounts can be opened to account 19 “Value added tax on acquired assets”:
19-1 “Value added tax on the acquisition of fixed assets”;
19-2 “Value added tax on acquired intangible assets”;
19-3 “Value added tax on acquired inventories”, etc.
Subaccount 19-1 “Value added tax on the acquisition of fixed assets” takes into account the amounts of value added tax paid (due) by the organization related to the construction and acquisition of fixed assets (including individual fixed assets, land plots and environmental management facilities) .
Subaccount 19-2 “Value added tax on acquired intangible assets” records the amount of value added tax paid (due) by the organization related to the acquisition of intangible assets.
Subaccount 19-3 “Value added tax on acquired inventories” takes into account the amounts of value added tax paid (due) by the organization related to the acquisition of raw materials, materials, semi-finished products and other types of inventories, as well as goods.
The debit of account 19 “Value added tax on acquired assets” reflects the amount of tax paid (due) by the organization on acquired inventories, intangible assets and fixed assets in correspondence with settlement accounts.
The write-off of value added tax accumulated on account 19 “Value added tax on acquired assets” is reflected in the credit of account 19 “Value added tax on acquired assets” in correspondence, as a rule, with account 68 “Calculations for taxes and fees”.
Account 19 “Value added tax on acquired assets” corresponds with the accounts
| by debit | on loan |
| 60 Settlements with suppliers and contractors 76 Settlements with various debtors and creditors | 08 Investments in non-current assets 20 Main production 23 Auxiliary production 25 General production expenses 26 General business expenses 29 Servicing production and facilities 44 Selling expenses 68 Calculations for taxes and fees 91 Other income and expenses 94 Shortages and losses from damage to valuables 99 Profits and losses |
Application of the chart of accounts: account 19
- Security costs.
Accounting and tax accounting Reflected in the debit of account 19 “Value added tax on acquired assets”, subaccount, for example, 19-4 “Value added tax on acquired input... - Purchase of a car under a leasing agreement
Bank statement on the current account The cost of the leased asset received is reflected in the off-balance sheet account 001 1180000 ... Bank statement on the current account On the date of return of the leased asset to the lessor The cost of the returned item... in this case, the initial cost of the object for the purposes of calculating income tax is 800 ... payment under the agreement to the lessor is reflected in the debit of account 19 “Value added tax on acquired assets” and the credit of account 76 ... - Correction of significant errors
For September 2015; Debit of account 19 “Value added tax on purchased values”, Credit of account 60 “Settlements with suppliers... account 68 “Settlements with the budget for taxes and fees”, subaccount “Calculations for VAT”, Credit of account 19 “Value added tax on purchased values... account 68 “Calculations with the budget for taxes and fees”, subaccount “Calculations for VAT”, Credit to account 19 “Value added tax on acquired values... - Tachograph.
Accounting and taxation Transferred to employees” at the actual cost of acquisition (manufacturing). Tax accounting Value added tax (VAT) The amount... VAT presented by the manufacturer of passes is reflected in the debit of account 19 “Value added tax on acquired values...” in correspondence with the credit of account 60. Organization... - Logistics costs: accounting and taxation
The cost of transporting materials separately on account 15 “Procurement and acquisition of material assets” (with subsequent attribution to the account ... 16 “Deviation in value ... with storage 19 “Value added tax on acquired assets” * 60 “Calculations with suppliers... - VAT in 2021.
Explanations of the Ministry of Finance of Russia ... /7275 When carrying out operations for the supply (stacking) of material assets to the state reserve ... located in a special account are not subject to taxation with value added tax. Letter dated February 19, 2021 ... amounts of value added tax in respect of goods purchased in retail trade without invoices ... . No. 305-КГ16-9537 to the amounts of value added tax on purchased goods used only for non… - Income tax in 2021.
Explanations of the Ministry of Finance of Russia Bases for value added tax. At the same time, for the purposes of calculating the tax base for income tax... of the Russian Federation, the tax value of property (property rights) created (acquired) at the expense of targeted revenues, ... calculating the tax base for corporate income tax. Letter dated May 19, 2021 ... the perpetrators of the theft of material assets, thereby does not limit ... October 19, 2021 No. 03-03-06/2/68503 Upon acquisition ... as economically unjustified. Letter dated December 19, 2021 No. 03 ... - Review of letters from the Ministry of Finance of the Russian Federation for October 2021
.... No. 305-КГ16-9537 to the amounts of value added tax on purchased goods used only for non... tax base for value added tax are not included. Since the funds received to compensate... those responsible for the theft of material assets, thereby does not limit the taxpayer... dated October 19, 2021 No. 03-03-06/2/68503 Upon acquisition... in the generally established manner. Other taxes Letter dated October 19, 2021 No. 03 ... - VAT disputes (Practice of the Supreme Court of the Russian Federation for 2018)
Products have consumer value for the recipient, have a market value and can... be given by the court. Definitions of October 19, 2021 No. 308-KG18 ... the possibility of obtaining benefits through the ownership of 19.99% of the share capital of a foreign ... and the purchase price of the relevant work (services) is subject to value added tax in general ... twice. Resolution dated March 19, 2018 No. 310-KG17 ... does not have the right to claim tax deductions on invoices submitted by contractors ... - Important legal positions of the Constitutional Court and the Supreme Court on taxation issues for the 4th quarter of 2021.
The purchase of cognac spirit, and also refused the taxpayer to apply deductions for the “customs” value added tax... by the taxpayer of the value added tax, then the tax amounts previously accepted for deduction by the reorganized organization for purchased works... metals located in an unallocated metal account do not belong to currency values, therefore, with... reservoir pressure). The Company, referring to the provisions of Article 19.1 of the Law of the Russian Federation... - Practice of the Supreme Court of the Russian Federation on tax disputes for December 2016
Approved by Order of the Ministry of Health of Russia dated June 19, 2003 No. 266, Rules ... December 29, 1998. Determination dated 12/19/2016 No. 305-KG16- ... the Taxpayer’s lack of the right to claim a deduction for value added tax on corrective invoices in 1 ... in accounting, acquired inventory items, the Taxpayer’s references to his acceptance ... and issued an order. Resolution dated December 19, 2016 No. 309-KG16- ... recognizing the obligation to pay disputed taxes as fulfilled. Determination dated 12/19/2016... - Practice of the Constitutional Court of the Russian Federation on tax issues for 2018
Since it would make it possible to level out the practical value and significance of written explanations of financial... The Russian Federation allows the buyer, upon receipt of an invoice from the seller of goods (work... for the purpose of exemption from paying value added tax on work (services) for servicing sea vessels... the contested legal provisions contradict Articles 15, 19, 34, 35, 46, 50, 54... from the formal conditions (sources) of its acquisition. Position of the Court: Article 25... - Practice of the Supreme Court of the Russian Federation on tax disputes for November 2017
As a result, the right to compensation from the budget for value added tax arose in... The taxpayer includes indirect expenses for the acquisition of spare parts associated with... located on an unallocated metal account are not classified as foreign currency values and not... 333.9 of the Tax Code of the Russian Federation, Article 19.1 of the Subsoil Law,... - The courts found that the Taxpayer’s actions in acquiring a share in the authorized capital of the LLC... in acquiring its debts under the agreement of assignment of the right of claim were not aimed at... - Practice of the Constitutional Court of the Russian Federation on tax issues for the second half of 2021
Since it would make it possible to level out the practical value and significance of written explanations of financial... in the meaning given to them by law enforcement practice, they oblige the taxpayer to restore the amount of value added tax not... The Russian Federation allows the buyer upon receipt of an invoice from the seller of goods (work... N 8-P; Determination of May 19, 2009 N 815... from the formal conditions (sources) of its acquisition. Position of the Court: Clause 25 of Article... - Practice of the Supreme Court of the Russian Federation on tax disputes for January 2019
of the Federation in the ruling dated January 19, 2018 No. 305-... the implementation of which is subject to value added tax. Determination of January 23... the property of the Khabarovsk city administration of the value of acquired municipal property. The courts proceeded... – Museum objects and museum valuables not included in the Museum Fund... responsibilities. In addition, through the accounts of organizations, a transit circular... chain of transactions for processing, sales and repurchase of extracted minerals is carried out...
Consolidated account 19 in accounting is used to summarize data on “input” VAT presented by suppliers of goods (works) when purchasing various values or services. Proper recording of VAT transactions is necessary in any organization, even if it is not a direct payer of value added tax. Let's figure out how to close account 19 depending on the applicable tax regime.
