Explanations to the tax office about discrepancies in VAT and profit returns

Payment of tax contributions always involves the provision of tax reports, which are subsequently verified for the correctness of tax calculations. During this audit, tax officials identify errors and compare the indicators provided in various types of reports. As a result of these checks, tax inspectors may have various kinds of questions that must be answered correctly.

Explanations to the tax office regarding discrepancies in VAT and profit returns must be provided within five working days without fail and in writing.

Let's look at ways to write explanatory notes on income tax and VAT.

Note to accountants! Revenue in the income tax return does not always coincide with the tax base reflected in the VAT return. In addition, the expenses displayed in the income statement almost never coincide with the financial statements.

Why compare income based on profit and VAT?

The answer is very simple - the tax office does this, which means we, accountants, need to do this too =)

Tax officials compare VAT and profit returns to find income that the company forgot to charge with VAT.

In the simplest case (if we are analyzing the 1st quarter of the reporting period and we have no accounting difficulties), to reconcile we just need to carefully look at both declarations and check lines 010 + 020 (Sheet 02) in Profit and line 010 (Section 3) in VAT returns.

And this is quite easy to do.

Difficulties begin if we need to compare indicators over 9 months or over a year. Profit is easy to calculate - it is indicated in the declarations on an accrual basis. But with VAT there is already a problem - reporting is quarterly, which means we need to take all declarations from the beginning of the year and summarize their indicators.

Now let’s add some more truths of life:

• refunds to suppliers (increase the VAT base, but no profit)
• customer returns (reduce income in profit, but not in VAT)
• VAT-free income
• different periods of income recognition for export sales

All this leads to the need to understand the discrepancies between VAT and profit

- becomes a very difficult task, requiring a deep dive into accounting, drawing up additional tables and additional checks.

Specialists have a lot of experience in finding VAT and profit differences using Excel tables and “working weekends,” but we are tired of searching everything by hand. We used all our knowledge and experience and developed a special report that allows you to automatically check the convergence of the VAT and Profit base

and take into account common discrepancies. And we are ready to share our findings.

Important: in addition to the adequate reasons for the differences between VAT and Profit, we often find accounting errors that distort the tax base. Our report removes all “resolved” discrepancies and allows you to focus on the actual errors.

Sample of writing an explanation about discrepancies in the VAT and profit returns

After examining the error code stated in the tax request, it is necessary to provide a reasoned answer, which will be supported by relevant digital data.

A company that has been operating for several years has probably at least once encountered the requirements of the Federal Tax Service. A Federal Tax Service inspector can make demands for various reasons: due to errors in declarations, low tax burden, or during a counter audit of your counterparty.

Whatever the reason, you should not ignore the requirement from the tax office. Otherwise, the company’s account may be blocked or they may come with an audit.

Almost every company received a requirement to provide explanations as part of a desk audit regarding VAT. Fiscal officials are often asked to explain the reasons for the discrepancies between the indicators that make up the revenue in the annual income tax return and the size of the tax bases reflected in the VAT returns for all four quarters of the reporting year.

Having recalculated the share of deductions due to VAT amounts from advances issued and received, the company came to the conclusion that prepayment amounts are the main reason influencing the level of the share of deductions. That is, activities related to sales in the billing period actually do not produce deviations in the share provided for by the Concept.

The company sent these explanations, along with counter-calculations, to the inspectorate. With my help, the organization prepared a letter refusing to comply with the inspection requirement. In response to a request for clarification, the company indicated that tax legislation does not provide for chambers in relation to accounting statements.

At the same time, fiscal officials do not have the authority to control it. Therefore, the society decided to refuse this part of the requirement. The fact is that inspectors most often require clarification in connection with errors or contradictions in declarations (clause 3 of Article 88 of the Tax Code of the Russian Federation).

And the company asked the tax authorities to indicate what these errors or contradictions were. We also asked the inspectors to provide a link to the regulatory legal act, which states that revenue for the purposes of calculating income tax must be equal to the VAT tax base. In the letter, the company emphasized that Chapters 21 and 25 of the Tax Code of the Russian Federation established different procedures for the formation of these indicators.

1. The identified error is reflected in the explanatory note, but always with reference to the correct data;
2. The presence of an error is refuted, explanations and relevant data are provided that confirm the inclusion of this information in the declaration. An example of this situation could be discrepancies in reconciliation between the enterprise and its counterparties.

But this is rather an exception. In most cases, these indicators will not be equal. Firstly, there will always be transactions that lead to the appearance of income included in the income tax base, but do not form an object of taxation for VAT (Clause 1 of Article 146 of the Tax Code of the Russian Federation). For example: - receipt of property during the liquidation of decommissioned fixed assets (Clause 13 of Article 250 of the Tax Code of the Russian Federation);

- identification of surpluses during inventory (Clause 20 of Article 250 of the Tax Code of the Russian Federation); - receipt of income in the form of positive amount and exchange rate differences (Clause 2, 11 of Article 250 of the Tax Code of the Russian Federation); - restoration of reserves (Clause 7 of Article 250 of the Tax Code of the Russian Federation); - write-off of accounts payable after the expiration of the limitation period (Clause 18 of Article 250 of the Tax Code of the Russian Federation);

- sale of works, services, the place of sale of which is not recognized as the territory of the Russian Federation (Articles 147, 148, paragraph 1, paragraph 1, Article 248, paragraph 1, Article 249 of the Tax Code of the Russian Federation; Letter of the Ministry of Finance of Russia dated January 29, 2010 N 03-07- 08/21). By the way, this implementation can be seen in the VAT return in section. 7 on line 010, column 2 with codes 1010811 and (or) 1010812 (Clause 44.

3 Procedure for filling out the value added tax declaration, approved. By Order of the Ministry of Finance of Russia dated October 15, 2009 N 104n (hereinafter referred to as the Procedure); Appendix No. 1 to the Procedure); - receiving interest on loans issued or even interest accrued on the balance of money in a bank account (Clause 6 of Article 250 of the Tax Code of the Russian Federation). After all, the latter are accrued monthly to almost all organizations if there is a certain amount of money in the account.

This amount is included in the income tax return, but not in the VAT return. Secondly, it may be the other way around - some transactions are subject to VAT, but do not create “profitable” income. For example, the gratuitous transfer of goods (work, services) (Subclause 1, clause 1, Article 146, clause 2, Article 154 of the Tax Code of the Russian Federation) or the transfer of goods (performance of work, provision of services) for one’s own needs (Subclause 2, clause 1, Art. 146, clause 1 of article 159 of the Tax Code of the Russian Federation).

We suggest you read: How to prove in court that an employer has not paid wages

In these cases, it is not necessary to reflect income for profit tax purposes, because the transfer of ownership of goods (works, services), including free of charge, is recognized as a sale only when it is expressly stipulated in the Tax Code (Clause 1, Article 39, Art. 41 Tax Code of the Russian Federation). Therefore, such transactions are not reflected in the income tax return, but are shown on line 010 (or 030) of column 3 of section.

3 VAT declarations (Clause 38.1 of the Procedure). And if you are an exporter of goods, then the declarations cannot coincide at all. After all, export revenue is reflected in the “profit” and “VAT” declarations in different periods: - for income tax - in the period of sale of goods (work, services) (Clause 1 of Article 249, paragraph 3 of Article 271 of the Tax Code of the Russian Federation);

These explanations must be submitted to the Federal Tax Service within 5 working days from the day following the day you received a message (notification) from the tax authorities with a requirement to submit them (Clause 2, 6, Article 6.1, paragraph 3, Article 88 of the Tax Code of the Russian Federation). Submit It is better to give explanations in writing (in any form) and personally to the tax inspector (he needs to mark their receipt) or to the office of the Federal Tax Service, rather than verbally or by mail.

To the Head of the Federal Tax Service of Russia No. 21. Moscow from Rosa LLC, TIN 7721025156, KPP 772101001, OGRN 1107712345674 Tel. (495) 111-22-33 Contact person: Ch. accountant Zinnia L.V.

Explanations of discrepancies between income in income tax and VAT returns

In response to the request dated 08/05/2011 N 2357 for the provision of explanations, we report the following. The discrepancies between the indicators in the income tax returns for the first half of 2011 and the VAT returns for the first and second quarters of 2011 are explained by the different taxation procedures for certain transactions for the sale of goods (works, services) for the purposes of calculating income tax and VAT.

In particular, in the second quarter of 2011, our organization donated goods. Based on paragraphs. 1 clause 1 art. 146 of the Tax Code of the Russian Federation, the cost of goods transferred free of charge is recognized as an object of taxation for VAT. Therefore, it is reflected in the VAT return in the amount of 155,000 rubles. And for the purposes of calculating income tax, the cost of goods transferred free of charge is not income in accordance with Art. Art.

General Director of LLC "Rosa" ————— Vasilkov V.P. August 10, 2011

If you give the tax authorities a competent answer about the reasons for the discrepancies in the information in the declarations submitted to the Federal Tax Service, it is unlikely that they will subsequently send similar requests for reporting for the following periods. They will understand that they are dealing with an experienced accountant who will not be intimidated by such pieces of paper from the tax office.

must be provided within five working days without fail and in writing. Let's look at ways to write explanatory notes on income tax and VAT.

Information load of the “tax requirement” Get 267 video lessons on 1C for free: After studying the presented requirement, you can start writing an explanation. Procedure for writing an explanatory note Frequently asked question: VAT discrepancies associated with the discovery of an error when calculating VAT between the data of the company and the supplier.

The occurrence of these discrepancies may be due to a number of reasons: The supplier’s declaration lacks information about shipment

Theoretically, someday equality may be observed for someone: But this is rather an exception.

250 Tax Code of the Russian Federation); — restoration of reserves (Clause 7 of Art.

250 Tax Code of the Russian Federation); - write-off of accounts payable after the expiration of the limitation period (Clause 18 of Art.

250 Tax Code of the Russian Federation)

This is, first of all, profit that was received as a result of the sale of goods or the provision of services in-house or through intermediary services. Such income includes:

1. Proceeds received from the sale of property and securities.
2. Revenue received from the sale of goods or services.

Concept of a report comparing VAT and Income Tax indicators

• During the analysis, we compare data from regulated reports. Moreover, the report includes the latest adjustment declarations
• Program credentials are used to calculate allowed differences
• Indicators are calculated in full rubles
• “Allowed differences” are divided into two groups:
• Carryover differences (differences in the moment of income recognition)
• Constant differences

Examples of using the report

Video review of the development
Let's consider the work of the report using the example of one year of the organization's work

1st quarter

In the 1st quarter we see the following situation:

• adjustment declarations are used for analysis (k/1)
• in this quarter, the VAT rate of 0% was confirmed for the amount of 10,878,485 rubles (for income tax purposes, these sales were taken into account in previous quarters)
• For sales in the amount of 3,730,529 rubles, the 0% rate has not yet been confirmed

Result: there are no erroneous differences, all differences are “allowed”

2nd quarter

This quarter we see a similar situation with differences, but the indicators are already considered both quarterly and cumulatively - to facilitate reconciliation. Please note that indicators that are obtained by calculation are highlighted in gray (you will not find these figures in the declarations).

3rd quarter

In the 3rd quarter we see a difference of 33,700 rubles. If you analyze all the data, you can find the reason for the difference - the presence of non-operating income not subject to VAT.

Setting up other income not subject to VAT

There is a special setting in the VAT and Profit reconciliation report that allows you to specify a list of non-operating expenses that should not be subject to VAT and that must be included in the “allowed” differences.

If an item of other income is added to this list, then the detail “Not subject to VAT” is filled in (it can also be set in the directory itself).

This allows you to build SALT for the 91st account, grouped by VAT taxability. By default, this list is filled with unambiguously “allowed” differences. The user can independently supplement the list. In this case, we will add the article “Insurance compensation (MTPL)” to the exceptions.

As a result, we will receive a report in which there are no unresolved differences

4th quarter

In the 4th quarter we see that a whole range of “allowed” differences have been taken into account:

• unconfirmed export 0%
• returns of goods to the supplier
• returns of goods from customers
• non-operating income not subject to VAT

And still we get an unresolved difference. In this case, it means the presence of an accounting error in the VAT or Profit return. Additional data analysis (outside the scope of this report) is required to identify the error. But our primary recommendation is to update the closing of months, the formation of a sales book and refill tax returns.

Discrepancies between profit and VAT, accounting and profit reporting

Details Category: Selections from magazines for an accountant: 11/23/2015 00:00

With warmth, Sergey Mordvin

In practice, tax authorities are not limited to comparing indicators within one declaration. They also compare the data provided by the company in its VAT and income tax reports. The goal is the same - to identify the underestimation of one or another tax.

for VAT - from column 3 on line 010 of section 3 of the declarations (in order for the data to be comparable with income tax reporting, the inspectors summarize these indicators for all periods from the beginning of the year); for income tax - proceeds from sales from line 010 of Appendix 1 to Sheet 02 plus non-operating income (line 100 of the same Appendix).

However, even here equality should not always be observed. First of all, there are transactions that are subject to VAT, but no income arises from them for income tax purposes. A typical example is that your company donated goods to another organization for free. You must charge VAT on the cost of such products.

The cost of development is 6,000 rubles.

One year of free support (if the configuration is updated or the form changes, we will fix everything)

A year of additional support costs RUB 3,000.

Other information: The report was tested on versions: 1C: Enterprise Accounting 3.0.53 and higher

If necessary, we can provide paid consultations on identifying the differences between income tax and VAT.

If it is necessary to take into account individual nuances and modifications to work in changed configurations, the work is paid by the hour.

What are the VAT requirements?

After calculating data for 12 months, the company concluded that the share of deductions exceeds 89 percent. To find out what affects this indicator, we examined VAT returns in detail.

It turned out that the inspection included in the calculation the entire VAT, taking into account advances, both accrued for payment to the budget and declared for deduction. However, the Federal Tax Service of Russia believes that the share of VAT deductions should be calculated without taking into account accruals and deductions for advances (letter No. AS-4-2/12722 dated July 17, 2013). By recalculating the share of deductions, you can see how much the result will change if you take into account in the formula only the indicators of VAT accrued and presented on completed transactions and operations.

In our case, the recalculation gave an adjustment in the right direction. Without taking into account advance VAT, the share of deductions decreased by 2 percent and the deviation in the fourth quarter of 2015 was only 1 percent. Having recalculated the share of deductions due to VAT amounts from advances issued and received, the company came to the conclusion that prepayment amounts are the main reason influencing the level of the share of deductions.

Income tax requirements are often no less mysterious and even more time-consuming to explain than VAT. The company received a request as part of a desk audit of the income tax return for 2015 with a request to explain the discrepancies between the expenses reflected in the statement of financial results (Appendix No. 1 to the order of the Ministry of Finance of Russia dated 02.07.

The approach to writing explanations on such issues depends on the desire and scrupulousness of the chief accountant. If the amount of expenses in tax accounting is less than in accounting, then we can limit ourselves to a short answer that the difference was formed due to expenses that are not accepted for tax purposes. The company itself decides whether to attach documents or not. After all, the inspectorate can demand documents in a camera room only in a limited number of cases.

The company explained that the increase in expenses occurred at the end of 2015 due to the creation of a reserve for doubtful debts in tax accounting. Because of this, a difference arose between accounting and tax accounting and the tax base for income tax did not increase significantly.

Updates

We provide new development versions free of charge within a year after purchase.

One year of additional support - 3,000 rubles. Attention, we do not guarantee the functionality of the development for which the additional support period has not been paid for.

The current version of the development can be obtained by writing to us by email. Managers will check whether you have access to support, send a new version or send an invoice.

Version 1.2

• interface fixes

Version 1.3

• the report has been prepared for use in cloud versions
• Fixed errors in report generation for users with limited rights

Version 1.4

• New indicators have been added to the allowed differences: Unconfirmed sales 0% (in case of additional VAT charges)
• Sales according to 90.01.1 without VAT
• Implementation according to 90.02.2 UTII and Patent

• the year-end closing mechanism was taken into account when analyzing accounts 90 and 91
• fixed determination of differences in returns to suppliers and from customers

Version 1.5

• Adjustments to sales taken into account (downward)
• Adjustments to sales downwards from sales from previous years have been taken into account

Version 1.6

• Added control for discrepancies in revenue and other income according to accounting data (90.01 and 91.01) and according to the profit declaration data

Version 1.7

• The 2021 analysis shows a VAT rate of 20%
• Corrected the indicator “Confirmed export sales” (Section 4 line 020) in the 2021 reports
• The difference of 1 ruble between SALT and the Profit Declaration is not controlled

Version 1.8

• We added revenue data for other operations (Appendix No. 3 to Sheet 02) to the analysis of the convergence of accounting and reporting data - this is usually the sale of fixed assets or intangible assets
• Added the ability to open regulated reports via hyperlink (in one click you can open everything you need for reconciliation)
• Added a description of the “Difference” column - the main reasons and necessary actions

Version 1.9

• This release adds checking for discrepancies in gratuitous transfer transactions

Version 1.10

• Added a new indicator “Shipment without transfer of ownership”
• Identified errors have been corrected

Version 1.11

• Added a new indicator “Sales of shipped goods” (actual transfer of ownership)
• We have finalized indicator 040 of section 4 of the VAT return. Now all the lines of this column are summed up

Version 1.12

We decided to make development even more convenient and transferred the functionality to the Extension. This will allow:

• more convenient to open development
• It’s more convenient to set up other income and expense items
• improve checking the compatibility of development with future versions of 1C:Accounting

But we haven’t forgotten about the development of functionality:

• We show differences only if there is something to show
• simplified setting up the item of other income from expenses (the “Not subject to VAT” flag)
• added a certificate for the indicator “Sales at a rate of 0%” (to open you need to click the “?” sign)

Version 1.13

• The extension is adapted to version 1C: Accounting 3.0.75

Version 1.14

The extension has been adapted to the new form of the regulated Profit report from the 4th quarter of 2021 (1C: Accounting 3.0.75)

Version 1.15

• added analysis of returns to the supplier (if it is made on the basis of an adjustment invoice)
• identified errors have been fixed

Version 1.16

• the long-awaited decoding of discrepancy indicators
• other income “Return of goods sold in the previous tax period” has been added to the default exceptions

Version 1.17

• Fixed minor inconvenience of adding other income
• Improved determination of the required declaration in the presence of separate divisions

Version 1.19

In this version, we have updated the declaration forms, corrected several important details and made working with the report even more convenient:

1. The report has been updated for the Profit and VAT declaration forms from the 4th quarter of 2021, the diagnosis of filling errors has been improved due to the update of reporting forms 2. The verification of amounts in the Profit declaration and in accounting data for complex transactions has been corrected 3. The line “ has been highlighted in the analysis Proceeds from the sale of other property" 4. Simplified the work with setting the flag "Not subject to VAT" for other income. After setting the flag, you no longer need to re-open the discrepancy analysis; the new settings will be accepted automatically. 5. Added the ability to quickly open OSV for 91.01 from the report settings form

Result of checking

If the discrepancies described above are identified during the cameral, the tax authorities will most likely require clarification or amendments to the declaration. 3 tbsp. 88 Tax Code of the Russian Federation. They are required to do this before carrying out other control activities and drawing up an inspection report. 2.7 Recommendations sent by Letter of the Federal Tax Service dated July 16, 2013 No. AS-4-2/12705. In addition, you may be called to give explanations under clause. 4 paragraphs 1 art. 31 Tax Code of the Russian Federation.

If you ignore the request of the tax authorities and do not provide an explanation, this may be one of the reasons for ordering an on-site audit. This is stated in clause 9 of the Publicly Available Risk Assessment Criteria for Taxpayers, Appendix No. 2 to the Federal Tax Service Order No. MM-3-06 dated May 30, 2007/ [email protected]

Based on the amounts of discrepancies, tax authorities, as part of the pre-audit analysis, will calculate the estimated amounts of additional assessments based on the results of the on-site audit. Based on the results of the cameras, the violation will be considered proven and a report will begin to be drawn up. So you need to prepare explanations in any case if you do not want to immediately be subject to additional charges.

Sometimes tax authorities try to impose fines under paragraph 1 of Art. for the lack of explanations. 126 of the Tax Code of the Russian Federation. This, of course, is wrong: a message requesting explanations is a procedural document adopted as part of a desk audit of the declaration. It cannot even be appealed in court, since it does not give rise to any rights or obligations for the taxpayer (for example, to submit documents) established by law Resolution of the FAS ZSO dated 10.09.

We invite you to read: Personal income tax for a child

2013 No. A27-21708/2012; FAS VSO dated August 28, 2012 No. A10-355/2012; FAS MO dated August 26, 2013 No. A40-126256/12-107-616. This means that failure to comply cannot serve as a basis for taking any repressive measures against the company. And according to the Federal Tax Service, the inspectorate may impose an administrative fine on the head of the company for failure to appear at the tax office. 5 hours 2 tbsp. 28.3, part 1 art. 19.4 of the Code of Administrative Offenses of the Russian Federation, but not for refusal to give explanations. 2.3 Recommendations sent by Letter of the Federal Tax Service dated July 17, 2013 No. AS-4-2/12837.