Every company needs income to pay off current debts and ensure the subsequent uninterrupted functioning of the company. There are several types of income. Classification, as well as accounting for each of them, has another goal - determining the tax base and paying taxes. Sales revenue is the main source of cash flow for most companies.
Definition
Information about what income is and what it is is presented in detail in the Tax Code of the Russian Federation. In particular, sales income is considered to be receipts for goods and property sold. Article 249 of the Tax Code states that sales income is revenue from goods sold (directly produced by the company) and services sold, which are the main activities of the company. It could also be revenue from resold goods. In addition, this article includes income received for the provision and sale of property rights.
What is not included in sales income?
First of all, these are incomes that are not taken into account for taxation due to the direct instructions of the Tax Code of the Russian Federation. Among the most common:
- the amount of prepayment received for goods and services, property rights (for taxpayers recognizing income and expenses using the accrual method);
- amount of the deposit or deposit (also using the accrual method);
- contributions to the authorized capital;
- receipts under intermediary agreements (commission, agency agreement, etc.), except for the amounts of the intermediary’s remuneration, which, as a rule, is revenue, i.e. basic income;
- borrowed funds received (credits, loans), etc.
For more information about non-accounted income and issues related to them, read the article “List of income not taken into account when establishing the profit base in accordance with Art. 251 of the Tax Code of the Russian Federation."
Also, non-operating income is not included in revenue. These are side incomes that accompany the main activity. Their list is contained in Art. 250 Tax Code of the Russian Federation. At the same time, when classifying income in accounting, it is necessary to keep in mind the type and specifics of the business. For example, income from leasing property can be both non-operating income (clause 4 of Article 250 of the Tax Code of the Russian Federation) and revenue from sales (if leasing is the direct business of the company).
Read more about non-operating income in the material “How to take into account non-operating income when calculating income tax?” .
You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.
Selling goods
Goods mean products, services or works. They are considered realized when a certain reward is received for the right to use and dispose of them. Usually in monetary terms. But sometimes the reward may be another product or service. Depending on the agreement of the parties. If income from the sale of goods is not received in any form, that is, provided free of charge, they are not considered realized and do not fall into the tax base.
The amount of revenue is determined based on accounting for all income received from the sale of goods and services in the form of cash, non-cash and in kind. In the case where payment occurs in the form of goods or property, it must be set off in monetary terms. Usually it is the equivalent of the amount for which the company planned to sell its products.
To determine the base from which profit tax will be calculated from the revenue indicator, it is necessary to subtract the amount of VAT, excise taxes and export customs duties.
Definition of income and their types
What is income? What is your definition?
To be smart:
Income represents economic benefit (more precisely, its increase), resulting either from the receipt of assets or the repayment of liabilities and leading to an increase in the organization’s capital.
In simple words:
Income is a certain benefit expressed in monetary (directly in the form of money) or in kind (some property) form.
So, for the purpose of calculating income tax, all income is divided into three types:
- Income from sales;
- Non-operating income;
- Income not included in the tax base.
What happens? The first two groups of income are directly involved in the calculation of tax; for this they are taken into account using one of the selected methods - either cash or accrual. The third group does not participate in the calculation in any form and under any conditions - these incomes do not affect the tax in any way.
Now let's take a closer look at each group.
Property rental
This item of income, in accordance with the law, usually refers to non-operating income of the company. If they are taken into account by the taxpayer as income from sales, this means that the rental of premises (sublease) is the main or one of the main sources of cash receipts and is carried out on an ongoing basis. In the event of a one-time rental, financial income is classified as non-operating. At the same time, the legislation does not define the frequency of rentals to classify income into one or the second group. Therefore, each organization can decide independently which rules to follow for accounting for income received under rental agreements.
Letter dated October 27, 2020 No. SD-4-3/ [email protected]
Federal Tax Service in connection with incoming requests from taxpayers regarding the accounting of income from the sale of goods (works, services) by a taxpayer who has switched from paying a single tax on imputed income for certain types of activities (hereinafter referred to as UTII) to the use of a simplified taxation system (hereinafter referred to as the simplified taxation system) ), reports the following.
In accordance with paragraph 1 of Article 346.15 of the Tax Code of the Russian Federation (hereinafter referred to as the Code), taxpayers, when determining the object of taxation for the tax paid in connection with the application of the simplified tax system, take into account income determined in the manner established by paragraphs 1 and 2 of Article 248 of the Code.
According to paragraph 1 of Article 248 of the Code, income includes income from the sale of goods (work, services) and property rights and non-operating income. In this case, income from sales is determined in the manner established by Article 249 of the Code, and non-operating income - in the manner established by Article 250 of the Code.
Based on paragraph 1 of Article 249 of the Code, income from sales is recognized as proceeds from the sale of goods (work, services) both of one’s own production and those previously acquired, and proceeds from the sale of property rights.
Sales proceeds are determined based on all receipts associated with payments for goods sold (work, services) or property rights expressed in cash and (or) in kind (clause 2 of Article 249 of the Code).
The sale of goods, works or services by an organization or an individual entrepreneur is recognized, respectively, as the transfer on a compensated basis (including the exchange of goods, works or services) of ownership of goods, the results of work performed by one person for another person, the provision of services for a fee by one person to another person, and in cases provided for by the Code, transfer of ownership of goods, results of work performed by one person for another person, provision of services by one person to another person - free of charge (clause 1 of Article 39 of the Code).
Paragraph 1 of Article 346.17 of the Code establishes that the date of receipt of income from taxpayers applying the simplified tax system is the day of receipt of funds into bank accounts and (or) cash, receipt of other property (work, services) and (or) property rights, as well as repayment of debt (payment) to the taxpayer in another way (cash method).
Thus, in the event of a taxpayer switching from paying UTII to using the simplified tax system, the tax base for the tax paid in connection with the application of the simplified tax system includes income from the sale of goods (work, services) received by the taxpayer during the period of application of the simplified tax system for goods (work, services) , sold (that is, actually transferred on a reimbursable basis) during the period of application of the simplified tax system.
At the same time, if the sale of goods (work, services) was carried out during the period of application of the UTII, then income from the sale of these goods (work, services) received by the taxpayer during the period of application of the simplified tax system is not taken into account when determining the tax base under the simplified tax system.
Acting State Advisor of the Russian Federation, 2nd class D.S. Satin
Finance lease
There are no discrepancies in matters relating to the rules for accounting for proceeds under leasing agreements. These are the same income from sales. This is written in Letter of the Ministry of Taxes of Russia No. 02-3-08/13 dated April 22, 2004. But if the agreement indicates the final redemption value of the leased item, which will ultimately become the property of the lessee, then it will be taken into account separately. Since this applies to transactions relating to purchase and sale. Therefore, when indicating the total amount, you will need to correctly divide it and correctly post it to income items.
Determination of sales indicators
Products
Revenue is the amount of money received from the sale of goods, both self-produced and purchased for resale.
Profit from sales is a value representing the difference between revenue received from the sale of core activities and the cost of goods sold, commercial and administrative expenses.
Works
Revenue - the amount of money received from the organization's performance of work, represents the volume of work performed multiplied by the tariff.
Profit from sales is the amount of money received from performing work, minus the full cost of work.
Services
Revenue - the amount of money received by an organization from the provision of services, represents the volume of services performed by the organization multiplied by the tariff.
Profit from sales is the amount of money received from the provision of services, minus the full cost of the services provided.
Fixed assets
Revenue is the amount of money received from the sale of fixed assets.
Profit is the amount of cash received from the sale of fixed assets minus the costs of selling these assets and their residual value.
Fixed assets can be buildings, structures, equipment, machinery, vehicles, tools, devices, that is, all the property that is used by the enterprise in the process of selling products or services.
Municipal property
Income from the sale of property that is municipal and received for economic management is not subject to taxation. This is due to the fact that the funds have already been transferred to the municipal budget.
In situations where property belongs to an enterprise on the basis of economic ownership, the possibilities for disposing of it are very limited and are prescribed in Civil Legislation. In particular, there is a ban on selling and leasing, using it as collateral, or contributing it as part of the authorized capital. These actions require permission from the owner.
If such property is sold, the taxpayer may reduce income by the cost of goods sold and property rights. When selling property that is subject to depreciation costs, accounting for income from the sale must be kept taking into account its possible adjustment (reduction) to the residual value of such property.
Ways to earn income
Payment through electronic payment systems
If payment for goods (work, services) is made through electronic payment systems (for example, through an online store), then the date of receipt of income from the sale of goods is the day the goods (work, services) are paid for using electronic money (letter of the Ministry of Finance of Russia dated June 5, 2013 No. 03-11-11/163, dated January 24, 2013 No. 03-11-11/28).
Financiers noted that when paying for goods through electronic payment systems, the seller is registered in one of such systems as a payee. In this case, a document confirming the fact of payment for the goods may be an account statement from the payment system operator or a message from the payment system operator.v
Read also “How to take into account income under the simplified tax system”
Often, individual entrepreneurs who use the simplified tax system with the object “income” use bank terminals for settlements with customers. Money from buyers goes to their current account minus bank commission. What amount is considered income?
The Ministry of Finance believes that the entire amount transferred by the buyer, including the bank commission (letter dated September 19, 2021 No. 03-11-11/54526). The financiers' explanation is as follows.
Income under the simplified tax system includes income from the sale of goods (work, services), property rights and non-operating income (Article 248 of the Tax Code of the Russian Federation). Revenue from sales is determined based on all receipts associated with payments for goods (work, services) sold (clause 2 of Article 249 of the Tax Code of the Russian Federation). Since “simplified” people use the cash method, the date of receipt of income is considered to be the day funds are received in bank accounts or cash desks.
Read also “Income not taken into account under the simplified tax system”
This means that when buyers pay for “simplified” goods with plastic cards through a bank terminal, their income is calculated based on all receipts for goods sold without reduction for expenses. That is, an entrepreneur using the simplified tax system in this case must pay tax based on the entire amount transferred by the buyer, without deducting a bank commission from it.
Income in kind
If income is received in kind, then it is taken into account at market prices, determined taking into account the provisions of Article 105.3 of the Tax Code (clause 4 of Article 346.18 of the Tax Code of the Russian Federation). Let us recall that the price applied by the parties to the transaction is recognized as market price unless the Federal Tax Service of Russia, during the inspection of transactions between related parties, has not proven otherwise, and if the organization has not independently adjusted prices.
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General approach to tax accounting of sales income in foreign currency
Income from the sale of products received in another currency for tax purposes must be accounted for in rubles. To do this, you must use the official rate of the Bank of Russia. In this case, income can be recognized on the day of actual payment (cash method) or the day of shipment (sale), when the transfer of ownership occurs. According to the law, both options are legitimate. The choice depends on the accounting policy that is established at the enterprise.
Moreover, if the payment is divided into parts and the taxpayer receives a partial prepayment (advance), then it is recalculated at the official rate established on the date of receipt of the corresponding payment.
When working with foreign counterparties, another difficulty arises. When paying for services or goods in another currency and converting them into rubles, an exchange rate difference arises, which is included in non-operating income.
If prices for goods are fixed in conventional units, then the proceeds received in foreign currency must be recalculated into rubles on the day of sale. Exchange differences are included in income from non-operating activities if they are positive. If the amount is negative, it is included in non-operating expenses.
Determination of income: features
There are certain features with the definition of proceeds from sales for individual persons obliged to pay taxes, and certain types of income from sales, which are associated with separately arising circumstances.
Such amounts from profits include
- Equity interests related to other companies. The proceeds transferred to pay for equity shares put up for sale within the framework of internal exchange trading among existing shareholders are excluded.
- Exchange rate differences (negative and positive) arising as a result of daily fluctuations in the exchange rate officially set by the Central Bank of the Russian Federation (Central Bank of the Russian Federation).
- The appearance of debt obligations with a court decision; These are fines, penalties and/or other imposed sanctions that arose after non-compliance with the obligations stipulated in the Agreement; these can also include damage or loss caused indirectly or directly.
- Transfer/letting of movable and immovable property (land plots) for rent and sublease by the lessor, excluding income established by Article 249 of the current tax code.
- Intellectual activity, use of rights to it. The following can be considered intellectual activity: patents for industrial inventions, samples, models, as well as useful inventions.
- Interest accrued due to the existence of a bank deposit/s, a bank current account, both in foreign currency and in national equivalent, loans, loan agreements, as well as other debt obligations.
- OS (fixed assets) and intangible assets (intangible assets) related to gratuitous assistance received to establish general safety and modernize production. Only for nuclear power plants,
- Property transferred into the ownership of government agencies based on a decision made by executive bodies.
- Acceptance by a Russian company of property as a gift from:
- a company whose authorized capital depends 50% on the company receiving property free of charge,
- an individual who has invested 50% of his share.
Property received as a gift is not income taken into account for company taxation if, after the current year, it has not been re-registered to third parties.
- Guarantee contributions paid to intermediary funds considered special. The main activity of which is to reduce risks when, in certain cases, these obligations are not fulfilled. This applies to securities trading and clearing companies.
- Special-purpose financing. In this case, it is mandatory to maintain separate accounting records for the enterprise. Failure to comply with these conditions will lead to the fact that during an audit/tax audit, funds received that are not properly accounted for will be subject to taxation. In this case, taxes will be calculated from the date of receipt.
These and other points described in Art. 250 of the Tax Code of the Russian Federation are recognized as non-operating income of an enterprise.
Calculation of profit from sales
The main goal of every company on the market is to obtain significant profits, which will cover all costs that arise in the process of activity. By using certain methods for calculating sales income over time, it is possible to realistically assess the effectiveness of the financial and economic activities of an enterprise and subsequently eliminate shortcomings and increase the level of sales.
Formula
TxV = B, where C is the price per unit of production, V is the sales volume, and B is revenue.
If there is more than one product, then each item will be taken into account in the calculation.
C₁ x V₁+ C₂xV₂….p = B (total).
Net profit is the deduction of all taxes and expenses incurred.
Similar articles
- Income and expenses from ordinary activities
- Profit before tax
- Non-operating income and expenses
- Income reduced by expenses
- Loan agreements on the simplified tax system
Non-operating income
When calculating the amount of income tax, in addition to income received from the sale of goods, services, property and property rights, non-operating income is also taken into account. These include the following articles:
- rental payments, if they do not relate to sales income;
- equity participation in other organizations;
- when receiving goods free of charge;
- interest received on loan agreements and overdue payments;
- positive result when recalculating exchange rate differences;
- purchase and sale of currency;
- written off accounts payable;
- any other income, the receipt of which is in no way directly related to the production and sale of core goods;
- income from previous periods received in the current reporting period.
Thus, accounting for income from sales is necessary for calculating and paying income tax, as well as analyzing the current state of the enterprise. Depending on the field of activity of the company, their composition may vary. In addition, the taxes that must be paid to the budget depend on the chosen taxation scheme. All issues related to taxes are set out in the Tax Code of the Russian Federation.
Expenses
Proceeds from sales can be reduced by costs associated with production and sales (subclause 1, clause 3, article 315 of the Tax Code of the Russian Federation). Such expenses include:
- expenses associated with the manufacture (production), storage and delivery of products, performance of work, provision of services;
- expenses for maintenance and operation, repair and maintenance of fixed assets and other property, as well as for maintaining them in good condition;
- expenses for the development of natural resources;
- research and development expenses;
- expenses for compulsory and voluntary insurance;
- other costs associated with production and (or) sales.
The list of expenses by which sales revenue can be reduced is specified in paragraph 1 of Article 253 of the Tax Code of the Russian Federation.
At the same time, according to paragraph 2 of Article 253 of the Tax Code of the Russian Federation, expenses associated with production and sales are divided into groups:
- material costs;
- labor costs;
- the amount of accrued depreciation;
- other expenses.
The list of other expenses associated with production and sales is given in Article 264 of the Tax Code of the Russian Federation.
