Payment and deduction of VAT by tax agents

Who is a VAT tax agent?

At the same time, the company that actually pays the money is called the tax agent. To put it another way, it is she who acts as an intermediary between the company that received the actual profit and the tax service itself, which collects funds and transfers them to the budget. This way of handling money arose due to the fact that some organizations, for legal reasons, are not able to pay taxes on their own.

Who is the VAT tax agent?

There are a number of situations in which the state imposes agent duties on a company. They are listed in Article 161 of the RF NU.

In simple terms, an insurance agent is considered to be:

• If you buy foreign-made goods, services or work that are registered in the Russian Federation. Moreover, the place of sale is located in Russia.
• If you rent premises from government agencies, or purchased it.
• If you are selling property that is tied to treasure hunting: coins or other treasure contents, or other wealth.
• If you acquire the property of an organization that has been declared bankrupt.
• If you are an intermediary who sells services or goods whose owners are not located in the Russian Federation.
• If, after the transfer of ownership rights to you, you managed to build a vessel, but did not have time to register it in the International Register of Ships.

What VAT entries are reflected in the tax agent’s accounting?

As for VAT, the accountant uses only two entries:

• Debit 90, Credit equal to 68 - indicates that VAT is charged on the sale of goods and services provided in the main activity of the enterprise.
• Debit 91, Credit equal to 68 - if tax was calculated on the sale of a certain product or service, for additional activities. For example, if a company produces dairy products and simultaneously rents out refrigeration equipment to stores.

Postings for processing input VAT:

• Debit 19, Credit equal to 60 is used to take into account taxes on purchased goods and services.
• Debit 68, Credit 19 is used if VAT on purchased goods and services is accepted for deduction.

To account for input VAT and write it off as expenses, the following entries are used:

• Debit 19, Credit equal to 60 - this scheme is used if VAT on purchased goods is taken into account.
• Debit 19, Credit equal to 60 - an entry that is used if the tax on goods is included in their cost.

In some cases, it is impossible to calculate VAT on a certain group of goods or services. For example, you purchase slot machines that will be used in the gambling business. It is not subject to taxes, so there is nothing to charge VAT on. In such cases, the tax can be calculated into the cost of the machine by hiding it there.

For transactions that are used to recover VAT:

• Debit 60, Credit 68 This entry is used to recover the tax from the advance payment transferred to it. In this case, the reason why VAT is restored does not matter.
• Debit 91, Credit 68 - used to restore VAT on the balance of goods when switching to a special regime, or if a company or enterprise has received tax exemption.

If a tax that was previously accepted for deduction needs to be returned, then a lot depends on the reason for this action

In order for VAT to be transferred to the country’s budget, there is only one entry: Debit 68, Credit 51.

How to reflect VAT withholding?

Tax payment is required to be reflected in the financial statements. In order to fill out a VAT declaration to an agent, the issue must be approached with the utmost care and responsibility.

The declaration is submitted in electronic form. This must happen no later than the 25th day of the billing month, or at the end of the quarter.

Attention! From January 2021, the declaration is submitted on an updated form, which is approved by the Federal Tax Service. Be sure to fill out the title page, where you carefully enter all the basic data. Before submitting the form, double-check the cover page.

Next, the agent must fill out paragraphs 1 and 2. If you are not a tax payer, then paragraph 12 will be added to the previous paragraphs. As for paragraph 2, dedicated to agent taxes, they must be filled out separately for each company in relation to which the tax payer considered an agent. This means that if you pay tax not for one organization, but for several, then you will need to fill out all the fields about each of them on a separate sheet.

In paragraph 3, line 180, the tax agent can indicate tax deductions after paying VAT to the country's budget. You can immediately fill out sections 2 and 3 if the purchase of goods or services and the payment of tax on this transaction occurred in the same billing period.

When drawing up a document, the tax agent must rely on the norms for calculating the tax base. The declaration is filled out on the basis of information from the book of sales and purchases, and information obtained from accounting registers.

Payment of VAT to the budget by a tax agent

Payment of VAT by the tax agent when renting to the budget should be carried out in the usual manner, i.e. in equal shares no later than the 25th day of each of the three months following the expired tax period (clause 1 of Article 174 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance of the Russian Federation 07.07.2009 N 03-07-14/64).

Payment of VAT to the budget is reflected in the document Write-off from the current account transaction type Payment of tax in the Bank and cash desk section - Bank - Bank statements - Write-off.

The document fields are filled in as follows:

• Tax - VAT;
• Type of obligations - Tax;
• Accounting account - 68.32 “VAT when performing the duties of a tax agent”;
• Amount - the amount of VAT paid on the statement, which must be at least 1/3 of the calculated VAT amount by the tax agent on the declaration.

For settlements with the budget in 1C, the tax agent uses account 68.32 “VAT when performing the duties of a tax agent.”

The account has three sub-accounts:

• Counterparties;
• Agreements;
• Calculation documents.

This analytics must be completely filled out in the document Write-off from the current account in the Reflection in accounting . Otherwise, VAT will not be automatically deducted in the future.

Be careful with the execution of the Payment order - when issuing a payment order for the payment of VAT to the budget, in field 101 “Compiler status”, code 02 “tax agent” is filled in. PDF

Postings according to the document

Conditions for tax agent VAT deduction in 2016-2017

VAT paid by the agent can be credited to him. But in order to carry out this procedure, you need to decide on some questions that arise from the situation:

• Is the fact that the agent paid the tax even important?
• Is it necessary to capitalize the object, or is this procedure not necessary?
• Is it worth considering the place where the service was provided?

So, when filing a return as a tax agent, he should be extremely careful. You need to remember that the document must be submitted, like other taxpayers, before the 25th of the current month, or before the end of the billing period.

The declaration is submitted electronically and filled out in any place convenient for you where there is a computer and access to the Internet. Thanks to this service, you no longer need to stand in endless queues wasting time.

The tax agent fills out only the title page and paragraph 2.3 in the declaration. Most often, a tax agent acts as such not for one company, but for several. In this case, when filling out paragraph 2, you will need to work on several sheets, separate for each individual organization.

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If the tax agent, for some reason, does not pay tax, or is exempt from it due to the nature of his activity, but at the same time regularly issues invoices to taxpayers, allocating a certain amount of tax, then he will need to fill out additional paragraph 12, in addition to the mandatory first section and title page.

Submission of VAT return from 2020

In addition to transferring the amount of the obligation to the country's budget, the VAT tax agent is required to submit a report to decipher the essence of the charges. This applies not only to value added tax payers, but also to those who are not in these ranks (“special regimes” and those who are exempt from the obligation to register in this capacity).

The declaration form itself is presented in the Order of the Federal Tax Service dated October 29, 2014 No. ММВ-7-3/. The tax agent must fill out:

• title page;
• section 1 – general information about the obligation;
• section 2 - it indicates the contacts and details of the counterparty, for each of them you need to fill out a separate sheet (according to the number of partners who are not registered with the Federal Tax Service);
• section 3 – if the agent wants to receive a deduction;
• Section 12 – when a report is submitted by a VAT defaulter, clause 5 of Art. 173 Tax Code of the Russian Federation.

Reports are submitted within the deadlines provided for all taxpayers - before the 25th day of the month following the end of the next quarter.

Documents for download (free)

• VAT declaration

Who is recognized as a tax agent for VAT?

According to the Tax Code (161 Tax Code of the Russian Federation), there is a certain list of situations in which even persons who are not obliged to pay VAT and report on it must pay tax for their partners. These include the following situations:

• in case of receiving supplies from foreign persons who have not received tax resident status in the Russian Federation;
• in case of receiving federal and municipal facilities for rent;
• when selling ownerless property, confiscated property, property that must be sold by court;
• in case of sale of a vessel that is not registered in the Russian International Register;
• in the case of the sale of raw scrap metal, hides and waste paper (except for entities on a special regime).

Important! A tax agent is understood as any business entity paying remuneration to a non-resident who is not registered with the Federal Tax Service. The exception is taxpayers who use special regimes such as UTII, simplified tax system, PSN and unified agricultural tax.

The main responsibility of the tax agent is the timely withholding of the tax liability from the remuneration due to a non-resident or a VAT defaulter. It is necessary to withhold the tax in full, and then submit written information to the Federal Tax Service in accordance with 24 of the Tax Code of the Russian Federation.

Tax agent obligations for VAT from January 1, 2021

The main change of the new year was the increase in the VAT rate to 20%. In addition, the settlement rate has also increased, which is now 20/120. Innovations also include the fact that since 2019, foreign organizations that provide services in electronic form in the Russian Federation are required to independently organize the payment of VAT and submit the appropriate reports (rate 16.67%) in accordance with Law 303-FZ. This can be done in one of the following ways:

• when sales are carried out by an agent under a contract, the VAT report and payment are made by the representative;
• when a foreign company is directly involved in sales, it is necessary to register with the Federal Tax Service, obtain a Taxpayer Identification Number (TIN) in the Russian Federation, and then pay VAT independently.

In the second case, refusal to register as a Russian taxpayer does not oblige the buyer to become his tax agent and pay fines. That is, an organization or entrepreneur will not receive a VAT deduction, even if one of them decides to pay VAT on their own.

In this case, electronic services mean the following types of services provided in the customs territory of the Russian Federation:

• providing access to programs and computer facilities via the Internet;
• hosting and data storage abroad;
• advertising and promotion of goods on the Internet;
• design, support, and website administration remotely;
• access to repositories of electronic books and publications;
• search, delivery of information.

Important! It should be remembered that electronic services do not include services for ordering goods online, consultations by e-mail, software implementation, or organizing access to the Internet.

Let's look at the tax agent's VAT transactions using a specific example. Let’s assume that a non-resident supplier provided services worth RUB 200,000 to a Russian entrepreneur in 2010. At the same time, the agreement concluded between them does not say anything about the inclusion of VAT in the cost of products. According to current legislation, an entrepreneur must withhold and pay to the budget an amount of 40 thousand rubles.

The main problems that have arisen as a result of the transition period and the increase in the VAT rate in 2021 relate to transactions carried out between VAT payer organizations. Tax agents are required to pay the obligation in full on the day the remuneration for goods and services is paid. That is, there are two options for calculating and paying VAT:

1. An advance transferred before the beginning of 2021 is subject to VAT at a rate of 18%, VAT on goods in 2021 is charged at a rate of 20%.
2. If products delivered before 2021 are paid for only in the new year, then the tax rate will be 20%.

This scheme does not apply to the following entities:

• carrying out transactions with confiscated property sold in court or ownerless valuables;
• works through a representative (agent) in the Russian Federation with a foreign entity;
• carries out railway transportation within the Russian Federation in the interests of a non-resident;
• buys and then sells animal skins, nonferrous and ferrous metal scrap, and waste paper.

These entities will pay VAT (20%) on sales from the beginning of 2021. Compensation of the 2% rate is carried out at the expense of the buyer.

Step-by-step instruction

Attention! The VAT rate has been changed from 01/01/2019 from 18% to 20% and from 18/118 to 20/120.

On February 25, the Organization entered into a lease agreement for municipal non-residential premises with the Moscow Property Department. The organization acts as a tax agent for VAT (paragraph 1, clause 3, article 161 of the Tax Code of the Russian Federation).

According to the agreement, the monthly rent is 224,200 rubles. in view of VAT. Rent is paid in advance on a monthly basis no later than the 10th day. In this case, the first payment must consist of rent for the first and last month of rent.

Read also:  Innovations for 2021 on corporate income tax

On March 1, the rental property was transferred by the lessor under the acceptance certificate.

On March 09, the Organization transferred to the landlord an advance payment for the first and last month of rent in the amount of 380,000 rubles.

On March 31, the landlord submitted a certificate for rental services.

Let's look at step-by-step instructions for creating an example. PDF

Responsibility for failure to fulfill obligations

If a tax agent untimely or intentionally fails to withhold VAT from remuneration to a supplier who is not registered with the Federal Tax Service and does not have resident status, then he is subject to the following penalties:

• 20% of the amount of unwithheld and unpaid tax (123 Tax Code of the Russian Federation);
• penalties for each day of delay (75 Tax Code of the Russian Federation);
• 200 rubles for failure to submit a VAT return on time upon fulfillment of the duties of a tax agent (126 Tax Code of the Russian Federation);
• 5% of the amount of the unpaid obligation for each month of delay in case of failure to submit or late submission of the declaration, but not less than 1000 rubles and not more than 30% (119 Tax Code of the Russian Federation).

From the point of view of tax legislation, it is considered incorrect if the unrecovered VAT is paid at the expense of the buyer. In this case, a fine of 20% will be charged, as well as penalties for the entire time of non-payment of the obligation. In this case, the agent must withhold VAT from the remuneration amount for the subsequent delivery and transfer the non-payment to the budget. If the transaction was a one-time transaction, then the law does not explain further actions in such a situation. That is, repaying the debt with the buyer’s funds will still be preferable. Bring the tax agent to criminal liability under Art. 198 of the Criminal Code of the Russian Federation should not, since this measure provides for fairly large amounts of fines, forced labor, as well as imprisonment for repeated intentional violations on a large and especially large scale.

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Example.

You sell TVs. You bought a TV from the manufacturer for 1000 (one thousand) rubles and sell it for 1100 (one thousand one hundred) rubles. Your added value is one hundred rubles. You pay VAT on them. Added value is what you add to the cost of a product or service to make your profit. You bought a TV for 1000 rubles, including VAT (18%) - 152 rubles 54 kopecks. Sold for 1100 rubles, including VAT (18%) - 167 rubles 80 kopecks. Next, from your VAT (167 rubles 80 kopecks) you subtract the VAT of the seller-manufacturer (152 rubles 54 kopecks)

and get 15 rubles. 26 kopecks This is the VAT that you must pay to the state. How to find out how much VAT is included in the price of a product? If the price is indicated with VAT, then take this price as 118%, find the cost of 1% and multiply to determine how much 18% will be. (1100 rubles: 118 x 18 = 167 rubles 80 kopecks) Every quarter you calculate how much VAT is in all your sold goods and services. You deduct all VAT that you purchased (raw materials, rent of premises, purchase of goods, etc.). And you give the difference to the state - this is your VAT.

Bottom line.

VAT remitted to the state is calculated as the difference between purchase VAT and sales VAT. Therefore, if you work according to a simplified tax system (without VAT), and your customers are in the classical taxation system (with VAT), then they cannot reduce their VAT by the amount of your VAT (you do not have it). And they are forced to pay more taxes to the state. If your competitor works with VAT, and you work with a simplified system (without VAT), then your client-buyers (other things being equal) will choose not you, but your competitor, because the customer-buyer will be able to reduce his VAT by the competitor’s VAT.

VAT offset from tax amounts to be refunded

Expertise of the article: Olga Monaco, Legal Consulting Service GARANT, auditor

The VAT tax agent company can offset the tax payable against the refundable amounts. If the inspectorate refuses credit, the company may go to court. The arbitrators side with the companies, allowing such offsets to be made.

As a general rule, VAT amounts declared for reimbursement in a tax return can, upon application, be returned to the company’s bank account or sent to pay upcoming payments for VAT or other federal taxes (Article 176 of the Tax Code of the Russian Federation). Such options are possible if the amount of the deduction is confirmed by the tax office and the company has no arrears in payments to the federal budget. Is it possible to offset VAT amounts recognized for reimbursement against tax payments if the company acts as a tax agent for VAT? Experts examined this issue in the journal “Actual Accounting” No. 11, 2011.