Is VAT charged on non-operating income?

When imposing taxes, legislators give relief to socially significant enterprises, industries with priority development, public projects, international agreements, etc. This is expressed in non-taxation, the use of various deductions, and a reduction in the tax rate. Value added tax is one of the largest federal taxes. Preferential transactions on it are very diverse. However, providing tax relief does not always imply a lack of reporting. Business entities must submit a declaration if their activities include transactions not subject to VAT. The VAT report for non-taxable transactions provides for section 7 of the declaration. What are non-taxable VAT transactions For section 7 of the VAT report, non-taxable transactions are transactions for which VAT is not charged or is charged at a rate of 0%.

How tax authorities cameralize section 7 of the VAT return

There is no object of VAT taxation: is it necessary to confirm the right not to pay tax with the Federal Tax Service?, No. 24
Purchase of fixed assets + taxable and non-VAT-taxable transactions + error in revenue: should the deduction be recalculated?, No. 18
Trade organizations could apply the “five percent” rule for VAT before 01.10.2011, No. 17
How multi-industry companies can divide input VAT in the presence of tax-free transactions, No. 16
VAT was charged on non-taxable goods: deductions from the seller and buyer, No. 15
For everyone who wants to be exempt from VAT, No. 13
Is it necessary to clear income from VAT when distributing expenses and input VAT between UTII and OSNO, No. 12
What is considered a tax benefit and when does it matter, No. 7
We divide agency VAT for taxable and non-taxable activities, No. 6
2011

Correspondence between “profitable” and “VAT” indicators

Theoretically, at some point someone might have equality:

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 emergence 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, Article 250 of the Tax Code of the Russian Federation); — receipt of income in the form of positive sum and exchange rate differences (Clause 2, 11, 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 of the 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, p.

How to display non-implemented transactions in the VAT declaration?

E.A. answered questions. Sharonova, economist In the previous issue we answered questions about how to fill out the different columns of Section 7 of the VAT return. And now we will tell you when you need to bring documents to the inspectorate as part of a desk audit of a VAT return, and when this is not necessary.

Info

For failure to submit Section 7 as part of the declaration, N.I. may be fined. Samarkova, Vologda The tax office sent us a letter demanding to explain why the income in the income tax return is greater than the cost of selling goods in the VAT return. And the income is greater because we issued a loan and I accrue interest on it, which I reflect in the income statement in the line “Non-operating income”.

We explain to tax authorities the reasons for the discrepancies

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 of Article 6.1, paragraph 3 of Article 88 of the Tax Code of the Russian Federation). It is better to provide 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. After all, your oral explanations may be misinterpreted by tax authorities. And explanations sent by mail may reach the inspector late - after the completion of the desk inspection. Here is a sample explanatory note.

To the head of the Federal Tax Service of Russia No. 21 of Moscow from LLC “Rosa”, INN 7721025156, KPP 772101001, OGRN 1107712345674 Tel. Contact person: Ch. accountant Zinnia L.V.

Explanations of discrepancies between income in income tax and VAT returns

In response to the request dated 05.08.2011 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 involving 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. 249, 250 of the Tax Code of the Russian Federation and Letters of the Ministry of Finance of Russia dated 05/31/2007 N 03-04-06-01/166, dated 03/14/2007 N 03-03-06/2/47. Therefore, it is not included in the income tax return.

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.

Tax disputes, Tax return, VAT, Income tax

2018-07-2121.07.2018 12:50

For the purpose of calculating income tax, non-operating income is recognized as income not specified in Art. 249 of the Tax Code of the Russian Federation, that is, not related to revenue from the sale of goods (work, services) both of one’s own production and those previously acquired, revenue from the sale of property rights (Part 1 of Article 250 of the Tax Code of the Russian Federation). The list of non-operating income is specified in Art. 250 of the Tax Code of the Russian Federation, but it is not exhaustive. The following operations are recognized as the object of VAT taxation (clause 1 of Article 146 of the Tax Code of the Russian Federation): - sale of goods (work, services) on the territory of the Russian Federation, including the sale of pledged items and transfer of goods (results of work performed, provision of services) under an agreement on granting compensation or novation, as well as transfer of property rights; — transfer of goods on the territory of the Russian Federation (performance of work, provision of services) for one’s own needs, expenses for which are not deductible (including through depreciation charges) when calculating corporate income tax; — carrying out construction and installation work for own consumption; — importation of goods into the territory of the Russian Federation and other territories under its jurisdiction. In paragraph 2 of Art. 146 of the Tax Code of the Russian Federation provides a list of transactions that are not recognized as an object of VAT taxation, and Art. 149 of the Tax Code of the Russian Federation - a list of transactions exempt from taxation. When determining the tax base for VAT, proceeds from the sale of goods (work, services), transfer of property rights are determined based on all income associated with settlements for payment for the specified goods (work, services), property rights. The specifics of determining the tax base for various operations have also been established. In addition, according to paragraph 1 of Art. 162 of the Tax Code of the Russian Federation, the VAT tax base increases by amounts, including: - received for sold goods (work, services) in the form of financial assistance, to replenish special-purpose funds, to increase income or otherwise related to payment for sold goods (work, services) services); - received in the form of interest (discount) on bonds and bills received as payment for sold goods (work, services), interest on a trade loan in the part exceeding the amount of interest calculated in accordance with the refinancing rates of the Bank of Russia in force in the periods for which interest is calculated. Thus, VAT is levied on those non-operating income that falls under the conditions provided for in paragraph 1 of Art. 146 and paragraph 1 of Art.

Non-operating income in the VAT return

NPO; organizational services for the Olympics and World Cup; sale of bankrupt property and other foreign transactions Art. 147, 148 sales of goods that are located abroad at the time of shipment and transportation; real estate transactions outside the Russian Federation; services provided abroad; services for foreign buyers:

when transferring patents, copyright licenses;
development of computer programs;
consulting, legal, accounting services;

transport services in foreign territories states advances for goods with a long cycle List of goods with a long cycle. cycle Prepayment (full or partial) for goods with a long production cycle (more than 6 months) according to the list established by the Government of the Russian Federation. The obligation to reflect data in Section 7 Section 7 of the report is required to be completed by all VAT payers and tax agents.

Automatic completion of section 7 of the VAT return for non-taxable transactions

Section 7. If, having collected the tax base for all sections of VAT returns for the required period, you do not receive the amount reflected in the income tax return, then we begin to understand the reasons for this phenomenon. There may be several reasons: 1) An error actually crept into one of the declarations. For example, there is often a situation where, after sending the VAT report, data adjustments begin to prepare the income tax report. The documents are retransmitted, corrections are made, after which the amounts in the VAT return may also change, but the report has already been sent with the same data. In order to check the current situation in the VAT accounting registers, you can create a new tax return for the quarter of interest and try to refill it , and then compare the data with the original report (under no circumstances try to refill the original report!).

What non-taxable VAT transactions are included in section 7

IV carried out by tax agents 1011 700 sale of goods (works, services) of foreign persons 1011 701 rental of state and municipal property 1011 703 V for real estate 1011 800 real estate for own consumption 1011 802 With what accounting data can we compare the data reflected in section 7 Compliance of accounting data with section 7 of the VAT Declaration: 2 columns - credit to account 90 in terms of revenue from non-taxable transactions; Column 3 - debit 20, 23, 40, 41, 44 accounts regarding the formation of the cost of non-taxable operations (only used non-taxable goods, work and services are included); Column 4 - credit 19 of account in correspondence with accounts 01, 04, 10, 20, 23, 26, 29, 44 when including input VAT in the cost of tangible and intangible assets, works, services used for non-taxable transactions. Tax Code of the Russian Federation. Moreover, the taxpayer has the right to refuse to use the benefit. 2 tbsp. 56 Tax Code of the Russian Federation. However, keep in mind that tax authorities often request these documents as part of desk audits of VAT returns. The fact is that they are being cunning and equate the opportunity not to charge VAT when providing services, the place of sale of which is not the territory of the Russian Federation, to the use of benefits. This is done in order to seem to legally demand documents from you within the framework of the Cameroon Keep. 6 tbsp. 88

Tax Code of the Russian Federation. But if, at the request of the tax authorities, you do not provide documents confirming the legality of non-assessment of VAT, then, based on the results of a desk audit, they may charge you additional VAT and penalties. About what is considered a tax benefit and when it matters, read: 2012, No. 7, p.

79 Of course, if you don’t want to quarrel with your Federal Tax Service, you can submit all the documents requested during the chamber meeting.

Warranty repairs: we calculate the VAT proportion and fill out the declaration, No. 24
VAT exemption received: should I submit a declaration?, No. 20
How tax authorities cameralize section 7 of the VAT return, No. 13
Section 7 of the VAT return: what to write down and where, No. 12
Exemption from VAT retroactively upon leaving the special regime, No. 4
Exchange of experience: VAT deduction for taxable and non-taxable transactions, No. 3
2013

Taxable + non-taxable: divide and restore VAT, No. 20
For special regime - with VAT exemption: there are features, No. 20
We purchase OS in parts for taxable and non-taxable transactions: how to divide VAT, No. 8
Calculation of revenue for VAT exemption purposes: what to include and what not to include, No. 7
Quarter without shipments: how to divide VAT by taxable and non-taxable activities, No. 1

2012

What is non-operating income?

According to Art.
172 of the Tax Code of the Russian Federation when purchasing goods (works, services), property rights under contracts, the obligation to pay for which is provided in rubles in an amount equivalent to a certain amount in foreign currency, or in conventional monetary units, tax deductions for subsequent payment of these goods (works, services), property rights are not adjusted. The difference in the amount of tax that arises for the buyer upon subsequent payment is taken into account as part of non-operating income. In accordance with Article 250 of the Tax Code of the Russian Federation, non-operating income is the following income:

Income
From equity participation in other organizations	With the exception of income allocated to pay for additional shares (shares) placed among the shareholders (participants) of the organization
In the form of a positive (negative) exchange rate difference resulting from deviation of the sale (purchase) rate of foreign currency from the official rate established by the Central Bank of the Russian Federation	On the date of transfer of ownership of foreign currency
In the form of fines, penalties and (or) other sanctions recognized by the debtor or payable by the debtor on the basis of a court decision that has entered into legal force	For violation of contractual obligations, as well as amounts of compensation for losses or damages
From leasing property (including land plots) (subleasing)	If such income is not determined by the taxpayer
From granting for use rights to the results of intellectual activity and rights to equivalent means of individualization	If such income is not determined by the taxpayer
In the form of interest received under loan agreements, credit agreements, bank accounts, bank deposits, as well as on securities and other debt obligations
In the form of amounts of restored reserves, the costs of the formation of which were accepted as part of expenses
In the form of gratuitously received property (work, services) or property rights	When receiving property (work, services) free of charge, income is assessed based on market prices
In the form of income distributed in favor of the taxpayer with his participation in a simple partnership
In the form of income from previous years identified in the reporting (tax) period
In the form of a positive exchange rate difference	With the exception of positive exchange rate differences arising from the revaluation of advances issued (received). For the purposes of this chapter, a positive exchange rate difference is an exchange rate difference that arises when revaluing property in the form of foreign currency assets (except for securities denominated in foreign currency) and claims, the value of which is expressed in foreign currency, or when devaluing liabilities, the value of which is expressed in foreign currency. currency.
In the form of fixed assets and intangible assets received free of charge in accordance with international treaties of the Russian Federation or with the legislation of the Russian Federation by nuclear power plants to improve their safety, used for non-production purposes
In the form of the cost of received materials or other property during dismantling or disassembly during the liquidation of decommissioned fixed assets
In the form of property (including funds) used for other purposes than for its intended purpose, works, services received as part of charitable activities (including in the form of charitable assistance, donations), targeted income, targeted financing, with the exception of budgetary funds
In the form of funds used for purposes other than their intended purpose by enterprises and organizations that include especially radiation-hazardous and nuclear-hazardous production and facilities, funds intended for the formation of reserves to ensure the safety of these production and facilities at all stages of their life cycle and development
In the form of amounts by which in the reporting (tax) period there was a decrease in the authorized (share) capital (fund) of the organization, if such a decrease was carried out with a simultaneous refusal to return the cost of the corresponding part of the contributions (contributions) to the shareholders (participants) of the organization
In the form of refund amounts from a non-profit organization of previously paid contributions (contributions) in the event	If such contributions (contributions) were previously taken into account as expenses when forming the tax base
In the form of amounts of accounts payable (liabilities to creditors), written off due to the expiration of the statute of limitations or for other reasons	Does not apply to the write-off by a mortgage agent of accounts payable in the form of obligations to the owners of mortgage-backed bonds, as well as to the write-off by a specialized company of accounts payable in the form of obligations to the owners of bonds issued by it
In the form of income received from transactions with derivative financial instruments
In the form of the value of surplus inventories and other property that are identified as a result of inventory
In the form of the cost of media products and book products, subject to replacement upon return or write-off of such products
In the form of adjustments to the taxpayer’s profit due to the application of methods for determining for tax purposes the conformity of prices used in transactions with market prices (profitability)
In the form of the cash equivalent of real estate and (or) securities transferred to replenish the endowment capital returned to the donor or his legal successors	The cost at which the securities were taken into account in the tax accounting of the donor on the date of their transfer to replenish the target capital of a non-profit organization
In the form of the difference between the amount of tax deductions from the excise tax amounts
As profit of a controlled foreign company

Non-operating income in the VAT return in section 7

as for failure to provide information necessary for tax control. 126

Attention

Tax Code of the Russian Federation. Can the Federal Tax Service Inspectorate request documents under Section 7 at a desk? M.N. Smirnova, Lipetsk Since this year, invoices for non-taxable transactions under Art.

149 of the Tax Code of the Russian Federation can not be written out, then they will not be in the book of purchases and sales. Previously, to fill out Section 7, I took data from them. And what documents will now have to be brought to the inspectorate for a desk audit of Section 7, after all, the tax authorities require them every quarter? : As for the need to submit documents to the Federal Tax Service for a desk audit of Section 7, the issue is controversial. Important

Taxpayers are required to keep separate records of taxable and non-taxable VAT transactions. Section 7 of the Declaration allows you to track companies that conduct both taxable and non-taxable activities, as well as monitor the correctness of tax calculation by such organizations. The main operations reflected in section 7 are presented in the table.

“Profitable” income ≠ “VAT” income

non-taxable transactions Art. 149 sale of medical services, vital products and products for the prevention of disability; care for the sick, elderly, and disabled; care for children; archival services; transportation of passengers (except taxis); funeral services; sale of securities, shares, shares, shares; depository services; warranty service of goods; public services; services of organizations in the field of culture and art; and other operations that are not recognized as subject to VAT, clause 2 of Art.

2018-07-2121.07.2018 12:50

Accounting for non-operating income

Part of the income received in the bank accounts of enterprises (organizations, institutions) is not related to their core activities. For tax purposes they are called “non-operating income”. When calculating the amount of income tax, such income is taken into account in a separate line. In this article we will look at how accounting and tax accounting of other income is carried out.

Income received by the income tax payer from sources not related to the main activity is called non-operating income.

In accordance with the requirements of the Tax Code, to account for income not included in the list of Article 249 (income from sales), a separate article is used - 250th. The list of other income (this is the name that should be used in accounting) is given in PBU 9/99:

income received after the sale of fixed assets;
exchange difference;
income from the gratuitous transfer of property;
expired contract or contract.

In addition to the above, the Ministry of Finance of the Russian Federation allows the inclusion of other revenues that are not directly related to the main activities of the enterprise. In this case, only one condition is set: before the start of the audit by the tax authority (that is, within the audited period), information about this must be included as a separate paragraph in the current order on accounting policies.

Accounting

Clause 10 of the Accounting Regulations 9/99 establishes that the amount of proceeds from the sale of fixed assets, interest for the use of the enterprise’s finances, and income from participation in the capital of other legal entities is determined in a manner similar to income from core activities. Fines are taken into account in the amounts specified in the court decision or settlement agreement with the debtor. The value of gratuitously received assets is accepted as market value.

Creditor amounts are included in income at the price indicated in the accounting records. Other income is accounted for based on the actual amounts appearing in the accounting documentation at the time of declaration. Additional assessment of assets is carried out according to the rules established for such cases.

An example of how income received by an enterprise from renting out property is accounted for in accounting.

Dt 76.5, 62.1 Kt 91.1 – the amount of income for the leased property was accrued

Dt 91.2 Kt 68.2 – VAT charged

Dt 50.1 Kt 76.5 – accounting of cash receipts to the company’s account from the tenant of the property was made.

However, there are exceptions to the accounting rules that apply to some cases of non-core income of the enterprise. For example, fixed assets received free of charge are accounted for in account 98. That is, account 91 is used to account for income that has a direct monetary value.

Ideally, the amounts of non-operating income (tax accounting) should coincide with similar income included in PBU as other income.

This should be carefully monitored due to the fact that regulatory organizations have the right to verify the correctness of the attribution of income to tax and accounting records.

The difference, that is, those other accounting incomes that are not included in non-operating income for tax accounting, is the amount under Article 251 of the Tax Code. From an economic point of view, the income indicated in it does not increase the company’s benefits from directly conducting business, that is, they are not taken into account when determining the income portion and drawing up a declaration.

What is included in non-operating income?

Income is an economic benefit received by a participant in economic relations (business) in kind or in monetary terms (clause 1 of Article 41).

All receipts to the company’s accounts that are not directly related to revenue from the sale of goods and products of its own production are considered other receipts. This category has its own definition - non-operating income.

They appear in tax accounting in accordance with the list given by the legislator in Article 250 of the Tax Code. Here is a complete list of cases when income is recognized as non-operating and is included in the income declared by the enterprise for the reporting period. Which receipts relate to non-operating income are indicated in table No. 1.

As a rule, the amount at which the above revenues are taken into account in tax accounting is similar to the accounting requirements. But there are some exceptions, for example, the sale of fixed assets with different monthly depreciation amounts.

To make it easier to comply with the requirements, the legislator has included in a separate article in the Tax Code (Article 251) income that cannot be included in the income portion when preparing the income tax return. Income corresponding to the list specified in the article cannot be considered non-operating.

Tax accounting

Since the income in question represents an independent element that forms the tax base for the reporting period, they are separated from ordinary income. In the declaration they are shown in line 100 (Appendix 1 to Sheet 02). The Federal Tax Service document that approved the declaration form, as well as the procedure for filling it out - order dated 10/19/2016 No. ММВ-7-3/ [email protected]

Line 100 of Appendix No. 1 is the total expression of income that is not directly related to the sale of the enterprise’s products for the reporting period. Next, the taxpayer is obliged to make a mathematical decoding of certain types of income determined by him on the basis of the requirements of Article 250 of the Code (lines 101-106).

In other words, the sum of the lines must correlate (that is, completely converge) with the indicator indicated in line 100. Then the data is transferred to the second sheet, line 020. When generating a declaration for the reporting period, this is where the total amount of the income in question is indicated.

Reflection in the VAT return

Differences in the amounts of income according to profit and VAT declarations may be due to the fact that the first includes income items, receipts for which to the accounts of the enterprise should not appear in the second:

transfer of goods into ownership or use free of charge;
fines not related to payment of the cost of goods;
write-off of a bad creditor;
providing a discount that is not related to a change in the price of the product;
bank interest on the account balance;
positive exchange rate differences;
dividends;
reserve restoration;
capitalization of inventory items after dismantling or inventory.

There is no direct connection between profit reporting and VAT in terms of indicating the amounts considered in the income item of the reporting period in the latter.

Source: https://alaws.ru/nerealizacionnye-dohody/