VAT is levied on products or services sold at a price higher than their cost. The tax is calculated based on the difference in price between the cost of the product and its sale. Article 164 of the Tax Code of the Russian Federation establishes VAT rates: 0%, 10%, 20%.
The amount of the fee paid depends on the category of goods . The law provides several opportunities to obtain VAT exemption.
Grounds for release
Entrepreneurs receive VAT exemption:
- Article 145 of the Tax Code of the Russian Federation: organizations and individual entrepreneurs have the right to count on exemption from paying taxes if, for 3 calendar months preceding payment, income from the sale of products (services) excluding taxes does not exceed 2 million rubles.
- Article 145 of the Tax Code of the Russian Federation: participants in the Skolkovo project.
- Article 18 of the Tax Code of the Russian Federation: tax payers who use special regimes in their work.
- Article 149 of the Tax Code of the Russian Federation: when selling certain categories of goods (services).
Exemption from the obligation to pay tax applies to the enterprise as a whole and to individual transactions carried out by a businessman. Exemption is obtained according to certain conditions: volume of revenue, number of personnel, number of assets, areas of activity.
Payment of VAT during the transition period
In practice, a situation may arise that the company purchased goods before it began to use the right to exemption, and will sell them during the period when the VAT exemption is already in effect.
In this case, the VAT accepted for deduction before receiving the exemption will have to be restored. For unsold goods and unused materials, VAT is refunded in full. From January 1, 2015, the procedure for VAT restoration is as follows (clause 8 of Article 145 of the Tax Code of the Russian Federation):
- if the exemption is applied from the first month of the quarter, then VAT is restored in the last quarter before the exemption is used;
- if the exemption is applied from the second or third month of the quarter, then VAT is restored in the quarter from which the exemption is applied.
In tax accounting, the restored VAT is included in other expenses (clause 2, clause 3, article 170 of the Tax Code of the Russian Federation).
EXAMPLE On September 5, Aktiv JSC purchased a batch of goods from a supplier for 118,000 rubles. (including VAT - 18,000 rubles). The amount of VAT on goods received was accepted for deduction in accordance with the generally established procedure. From October 1, “Active” uses the right to exemption from VAT. In September, no goods were sold. Consequently, in the third quarter (September), the amount of VAT on goods (18,000 rubles) must be restored and included in other expenses. The Aktiva accountant will make the following entries: September 5 DEBIT 60 CREDIT 51 - 118,000 rubles. – money is transferred to the supplier in payment for goods; DEBIT 41 CREDIT 60 – 100,000 rubles. (118,000 – 18,000) – goods are capitalized on the company’s balance sheet (at purchase price excluding VAT); DEBIT 19 CREDIT 60 – 18,000 rub. – VAT paid to the supplier of goods is taken into account; DEBIT 68 subaccount “Calculations for VAT” CREDIT 19 – 18,000 rubles. – VAT is accepted for deduction. September 30 DEBIT 68 subaccount “Calculations for VAT” CREDIT 19 – 18,000 rubles. – the amount of VAT accepted for deduction before the start of the exemption was restored; DEBIT 91-2 CREDIT 19 – 18,000 rubles. – the restored VAT amount is included in other expenses. Please note: to simplify the records, in this situation you can make one entry: DEBIT 91-2 CREDIT 68 subaccount “VAT Calculations” – 18,000 rubles. – the restored VAT amount is included in other expenses.
For fixed assets and intangible assets, VAT is restored from their residual value (according to accounting data). Such explanations are provided by financiers and tax service specialists (letter of the Ministry of Finance of the Russian Federation dated April 12, 2007 No. 03-07-11/106, letter of the Department of Tax Administration of the Russian Federation for Moscow dated May 5, 2003 No. 24-11/23897).
But the judges do not agree with this position. They believe that if fixed assets have already been used for some time for operations subject to VAT, then there is no need to restore the tax. Moreover, the Tax Code does not contain rules for restoring the tax for depreciable property during the transition to VAT exemption (Resolution of the Federal Antimonopoly Service of the North-Western District dated May 18, 2005 No. A52/7134/2004/2).
However, the legitimacy of such a position will most likely have to be proven in court. Therefore, if you want to completely exclude possible claims during the audit, follow the requirements of the tax authorities.
note
VAT must be reinstated in the last quarter preceding the exemption. However, the Tax Code does not specify in which month of the quarter this should be done. Therefore, the company will not violate anything if it restores the tax on the last day of a particular quarter: March 31, June 30, September 30 or December 31.
This means that if, for example, you began to apply the VAT exemption in April, then you will need to restore the tax from the residual value calculated as of March 31 (that is, taking into account January, February and March depreciation). This way you will pay less VAT to the budget.
Who is exempt from paying VAT
- Small businesses . Businessmen who have small revenue turnover may not pay VAT. If the amount of revenue for the three previous months does not exceed 2 million rubles. Enterprises that sell excisable goods and those that pay VAT in connection with the import of goods into the Russian Federation are not entitled to use the benefit.
- Businessmen who use a special tax regime in their work . Currently there are five of them: they are established by Article 18 of the Tax Code of the Russian Federation. The exemption applies to unified agricultural tax, simplified tax system, UTII, PSN. Within the use of these regimes at enterprises, the benefit does not apply if entrepreneurs carry out the following operations: importing goods, fulfilling the duties of a tax agent, conducting operations under a simple partnership agreement.
- Participants of the Skolkovo project . A resident of the Skolkovo project can count on exemption from VAT for 10 years from the date of receipt of this status. As part of this relaxation, Skolkovo residents are not exempt from paying taxes when importing goods into Russia.
- Sales of certain categories of goods . These are goods that belong to the social sphere, significant products. The essence of applying the benefit is that categories of socially significant goods should not be involved in competition, otherwise this may affect financially vulnerable segments of the population. In addition, at the moment, the use of this fee is irrelevant for those areas of business activity that require support from the state.
Goods not subject to VAT:
- nutrition;
- envelopes for mail;
- brands;
- postcards;
- ores;
- valuable metals;
- rough diamonds;
- goods from Duty Free;
- precious coins that are not a means of payment;
- medical products according to a special list;
- goods that are used to provide gratuitous assistance;
- books and goods for religious purposes.
How to calculate revenue indicator
When calculating the limit, you need to include only revenue from VAT-taxable transactions.
Example 1. Determination of revenue for VAT exemption A company on the general system plans to exercise the right to VAT exemption from August 2021.
For the three previous consecutive calendar months, revenue from the sale of non-excisable goods amounted to:
- May – 600,000 rub. (including VAT – 100,000 rubles);
- June – 720,000 rub. (including VAT – 120,000 rubles);
- July – 960,000 rub. (including VAT – 160,000 rubles).
In addition, in May the company sold a plot of land it owned for RUB 340,000.
The total amount of revenue for the three indicated months excluding VAT amounted to 2,240,000 rubles. (600,000 – 100,000 + 720,000 – 120,000 + 960,000 – 160,000 + 340,000).
Operations for the sale of a land plot are not recognized as subject to VAT taxation (subclause 6, clause 2, article 146 of the Tax Code of the Russian Federation). Therefore, this amount does not need to be taken into account when determining revenue for applying VAT exemption.
Since 1,900,000 (2,240,000 – 340,000) is less than 2,000,000, the company has the right to send a notification to the tax office about the use of the right to VAT exemption from August.
When determining the amount of revenue, income received from the sale of excisable goods is not taken into account, since exemptions cannot be applied to such transactions. The list of such goods is in Article 181 of the Tax Code of the Russian Federation.
If a company sold both excisable and non-excise goods, then it can receive an exemption from VAT. However, only transactions involving the sale of non-excisable goods do not need to be taxed. In this case, the company must keep separate records of sales of such goods.
Registration and receipt
If an entrepreneur knows that he falls under conditions that allow him not to pay VAT, he can apply for a benefit from the first day of any month . The tax authority must be notified of this. No later than the 20th day of the month from which the organization or individual entrepreneur began to use the tax benefit.
IP
The entrepreneur provides an extract from the balance sheet, a ledger of income and expenses. Extracts are compiled in any form, but in such a way that the tax authority understands the amount of revenue from these documents. It is calculated for the previous three months .
Legal entities
Organizations also notify the tax authority, and also collect an invoice, constituent documents, an extract of forms No. 1 and No. 2 from the balance sheet to clarify the amount of VAT, and legal documentation.
In both cases, documents are submitted in person or via mail .
The notification submitted to the tax authority is a unified form. It must be completely filled. Requisites:
- indicate the registration number in the header;
- Company name;
- TIN, checkpoint, contacts;
- legal address of the company.
The detachable part is filled out by an official of the Tax Service and given to the taxpayer.
The contents of the document must indicate from which month the grace period begins, reflect the total amount of income for the previous 3 months, record the amount of revenue, and sign the entrepreneur and his chief accountant.
What to do if you lose your right to VAT exemption? Instructions are provided below.
List of goods exempt from VAT
Is uniform throughout the Russian Federation
7. For purchased company cars, VAT tax deduction:
Not applicable
8. Turnover for the sale of advertising periodicals:
Not exempt from value added tax
9. Fee for participation in trading on the exchange:
Value added tax is assessed at a rate of 15.25%
10. A tax rate of 35% for personal income tax is established for the following income:
Winnings paid by competition organizers for advertising purposes in amounts exceeding RUB 4,000
11. The tax agent is obliged to inform in writing the tax authority at the place of his registration about the impossibility of withholding the tax and the amount of the taxpayer’s debt:
Within 1 month from the end of the tax period
12. If during the tax period the property tax deduction was not used in full, then its balance:
Can be carried forward to subsequent tax periods until it is fully used
13. When selling a residential building, a property tax deduction is provided in the amount received upon sale, if:
The house was owned by the taxpayer for more than 3 years
14. The objects of taxation of the mineral extraction tax are:
Minerals extracted from waste (losses) of mining production, if such extraction is subject to separate licensing in accordance with the legislation of the Russian Federation on subsoil 2
15. Actual losses of minerals under the mineral extraction tax are recognized as:
The difference between the estimated amount of minerals by which mineral reserves are reduced and the amount of actually extracted minerals, determined upon completion of the full technological cycle for the extraction of minerals
16. The tax period for corporate property tax is:
Calendar year
17. In relation to property located on the continental shelf of the Russian Federation, tax calculations for advance payments of tax and a tax return for tax are submitted to the tax authority at the location:
Russian organizations
18. Establishment of differentiated tax rates:
Allowed depending on the categories of taxpayers and (or) property recognized as an object of taxation
19. The following are exempt from corporate property tax:
Religious organizations - in relation to property used for religious activities
20. The legislative body of a constituent entity of the Russian Federation when establishing a property tax for organizations:
Has the right to provide for certain categories of taxpayers the right not to calculate and not pay advance tax payments during the tax period
21. If a taxpayer simultaneously belongs to different categories of taxpayers for insurance contributions, then he is obliged to:
Pay tax on each basis separately
22. The reporting period for insurance premiums is:
Calendar year
23. The base of insurance premiums for copyright contracts is determined as:
Total income under the contract
24. The tariff for insurance contributions to the Pension Fund of the Russian Federation has been established since 2011:
26%
25. Costs associated with production and (or) sales include:
Material expenses, labor costs, accrued depreciation and other expenses
26. Expenses for voluntary types of property insurance for income tax include:
-included in other expenses in the amount of actual costs
27. When selling depreciable property, the taxpayer has the right to reduce income tax income by the amount:
Costs for storage, maintenance and transportation of property sold
27. Interest on state and municipal securities, the terms of issue and circulation of which provide for the receipt of income in the form of interest, is taxed at the rate:
15%
28. Income received by a Russian organization from sources outside the Russian Federation:
Taken into account when determining its tax base for income tax
29. The maximum amount of the reserve for future expenses for the repair of fixed assets for profit taxation cannot exceed the average amount of actual expenses for repairs, which has developed:
Over the past three years
30. Mandatory forms of tax accounting documents for taxpayers:
Does not have the right to establish tax and other authorities
31. In relation to fixed assets acquired before the transition to a simplified taxation system, with a useful life from 3 to 15 years inclusive, the following is accepted as expenses:
During the first year of application of the simplified taxation system - 50% of the cost, the second year - 30% of the cost and the third year - 20% of the cost
32. Optional elements of the tax law include: (option 2)
Tax benefits
33. Tax control includes:
Desk and field tax audits
34. When establishing a regional tax by legislative (representative) bodies of constituent entities of the Russian Federation, tax benefits:
May be provided
Arrears are
The amount of tax or fee not paid within the period established by the legislation on taxes and fees
36. Federal taxes include:
Mineral extraction tax
37. In case of violation of the deadlines for the return of the VAT amount after the completion of a desk tax audit, based on the results of which a decision (full or partial) on the amount of tax was made:
Interest is accrued without fail, based on the refinancing rate of the Central Bank of the Russian Federation
38. When selling goods (work, services) in foreign currency on the territory of the Russian Federation, value added tax is charged:
In ruble equivalent at the rate of the Central Bank of the Russian Federation effective on the day of payment
39. VAT amounts calculated by the taxpayer from amounts of payment, partial payment received on account of upcoming goods (work, services) under the following conditions are subject to deductions:
At the time of shipment of goods (works, services)
40. For goods imported into the customs territory of the Russian Federation and for which interest rates are established, the excise tax base is determined as:
Customs value increased by the amount of customs duty
41. The date of sale of excisable goods for tax purposes is:
Day of shipment (transfer) of excisable goods
42. The income of individuals who are not tax residents of the Russian Federation is subject to taxation if:
They are received from sources on the territory of the Russian Federation in foreign currency and in kind
They were received from sources on the territory of the Russian Federation in cash and in kind
43. The total annual income of an individual does not include:
Rewards to donors for donated blood
44. Income tax for resident individuals on remuneration received outside the Russian Federation:
Withheld from the source of payment
45. Income of individuals in the form of interest received on deposits in banks located in the Russian Federation is not subject to taxation if:
The established rate does not exceed 9% per annum on deposits in foreign currency
46. Tax deductions for child support expenses from taxpayers are carried out for each child:
Up to 18 years of age, as well as for each full-time student, graduate student, resident, student, cadet under the age of 24
47. The amount of extracted mineral resources is determined:
By the taxpayer himself
48. Taxpayers of mineral extraction tax are subject to registration at the place:
At the location of the subsoil plot provided to the taxpayer for use
49. The property tax of organizations is established:
The Tax Code of the Russian Federation and the laws of the constituent entities of the Russian Federation
50. The object of taxation for property tax for Russian organizations is:
Movable and immovable property recorded on the balance sheet as fixed assets in accordance with the established accounting procedures
51. Religious organizations are exempt from taxation:
In relation to property used by them for carrying out religious activities
52. Land plots and other environmental management facilities:
are not recognized as objects of taxation
53. When determining the tax base, property recognized as an object of taxation is taken into account:
According to its residual value, formed in accordance with the established accounting procedure approved in the accounting policy of the organization
54. The billing period for insurance premiums is determined as:
Calendar year
55. The cost of an insurance year is:
The product of the minimum wage and the insurance premium rate, increased by 12 times
56. Reduced insurance premium rates are provided for:
Persons with resident status of a technology-innovation special economic zone
57. The basis for calculating insurance premiums for persons making payments to individuals depends on:
Number of employees
58. Payment of insurance premiums by persons who do not make payments in favor of individuals for the billing period is carried out:
Until December 31 of the current year
59. The tax base determined on the basis of income received by foreign organizations in the form of dividends from Russian organizations is subject to the following rate:
15%
60. The tax period for income tax is:
Calendar year
61. Loss received by a taxpayer upon the sale of fixed assets for profit tax purposes:
Included in other expenses
62. Non-operating income for income tax is recognized as follows:
Income in the form of income from previous years identified in the reporting (tax) period
63. When determining taxable profit, the following income is not taken into account:
In the form of a positive difference obtained when revaluing securities at market value
64. Justified expenses mean:
Economically justified costs, the assessment of which is expressed in monetary form
65. When taxing profits, the following expenses are not taken into account:
In the form of a contribution to a simple partnership
66. Expenses incurred by the taxpayer, the cost of which is expressed in conventional units:
Taken into account in conjunction with expenses, the cost of which is expressed in rubles in the appropriate conversion
67. The object of taxation by the taxpayer during the entire period of application of the simplified taxation system:
May change annually upon notification of the tax authority in the manner prescribed by law
68. If the object of taxation under the simplified taxation system is income, the tax rate is set at:
6%
69. Taxpayers - individual entrepreneurs, following the results of the tax period, according to the simplified tax system, submit tax returns:
No later than April 30 of the year following the tax period
70. The objects of transport taxation are:
Air vehicles
71. The procedure for conducting settlement and cash transactions in cash and non-cash forms, established in accordance with the legislation of the Russian Federation, taxpayers of the single tax on imputed income:
Obligated to comply
72. When establishing fees, mandatory (essential) elements of taxation for taxes: (option 3)
Can't be absent
73. The market price of goods (works, services) is the price:
Formed by the interaction of supply and demand on the market of identical goods in comparable economic conditions
74. On-site tax audit is carried out on the basis of:
Decisions of the head (his deputy) of the tax authority
75. The following are not recognized as sales of goods, works, services:
Seizure of property through confiscation
76. The obligation to pay tax is considered fulfilled by the taxpayer from the moment:
Submitting an order to the bank to pay tax if there is a sufficient cash balance in the taxpayer’s account
77. The tax base for VAT for the sale of services for the production of goods from customer-supplied raw materials and materials is determined as:
The cost of their processing, processing or other transformation, taking into account excise taxes (for excisable goods) and without including value added tax
78. The following are not subject to excise taxes:
Perfume and cosmetic products that have passed state registration with the authorized federal executive body
79. As a contribution to a joint activity (under a simple partnership agreement), one party contributed fixed assets that were in operation, for which VAT was reimbursed from the budget. Contribution to shared value:
Not subject to value added tax
80. If the sale of works (services) is of an auxiliary nature in relation to the sale of the main works (services), then for VAT purposes the place of such auxiliary sale is recognized as:
Place of implementation of main works (services)
81. The application of a tax rate of 0% for VAT is carried out on the sale of the following goods (works, services):
Goods placed under the customs export regime, subject to the provision of relevant documents to the tax authorities
82. The date of actual receipt of income by an individual in the form of wages in a calendar year is:
The last day of the month for which the taxpayer was accrued income for work duties performed
83. The total income of individuals under personal income tax includes:
Amounts of financial assistance to retired employees exceeding 4,000 rubles.
84. Payments under voluntary pension insurance contracts concluded by individuals in their own favor are not subject to personal income tax in the following cases:
In full amount upon the onset of pension grounds in accordance with the legislation of the Russian Federation
85. Payments of daily allowance as part of an employee’s travel expenses are subject to personal income tax if:
Payments exceed 700 rubles per day
86. Income received in the current calendar year outside the Russian Federation by individual residents of the Russian Federation:
Not included in income subject to personal income tax in the Russian Federation if the Russian Federation has concluded a treaty (agreement) on the elimination of double taxation valid during the relevant tax period (or part thereof)
87. The amount of extracted mineral resources is determined for the mineral extraction tax:
Direct or indirect method in accordance with accounting policies
88. Indirect expenses for mineral extraction tax incurred by the taxpayer during the reporting (tax) period:
Distributed between the costs of mining and the costs of other activities of the taxpayer in proportion to the share of direct costs related to the extraction of minerals in the total amount of direct costs
89. Payers of property tax of organizations are recognized as:
Organizations that own real estate recognized as the object of property tax
90. The object of taxation for foreign organizations operating in the Russian Federation through permanent representative offices is recognized as:
Movable and immovable property
91. Bodies carrying out accounting and technical inventory of real estate objects of foreign organizations are obliged to report to the tax authority at the location of these objects information about their inventory value:
Within 10 days from the date of assessment (revaluation) of these objects
92. If an object of real estate subject to taxation has its actual location in the territories of different constituent entities of the Russian Federation, the tax base for the property tax of organizations is determined:
Separately and accepted when calculating tax in the corresponding subject of the Russian Federation in a part proportional to the share of the book value of the real estate object in the territory of the corresponding subject of the Russian Federation
93. Property transferred into trust management for the purposes of corporate property tax:
Subject to taxation by the trust founder
94. Payers of insurance premiums who do not make payments to individuals calculate:
Contributions paid by the Pension Fund and Compulsory Health Insurance Funds
95. Insurance premiums are not subject to:
Income of an individual in the form of dividends
96. Separate divisions of the organization, having a separate balance sheet and current account, making payments in favor of individuals:
Fulfill the organization's responsibilities for paying insurance premiums at its location
97. The following amounts are not subject to insurance premiums:
Payment of expenses to improve the employee’s professional level
98. The amount of insurance premiums paid by farms that do not make payments to individuals is calculated as:
Cost of an insurance year for the head of a farm
99. The tax base determined by income received in the form of dividends from Russian organizations by Russian organizations is subject to the following rate:
9%
100. When taxing profits, the initial cost of a fixed asset is determined as the amount of expenses:
For its acquisition, construction, production, delivery and bringing it to a state in which it is suitable for use, excluding VAT and excise taxes
101. The useful life of depreciable property for profit tax purposes is the period:
During which the object serves to fulfill the objectives of the taxpayer’s activities
102. The amount of the created reserve for future expenses for warranty repairs and warranty service for income tax:
Cannot exceed the maximum amount, defined as the share of the expenses actually incurred by the taxpayer for warranty repairs and maintenance in the volume of proceeds from the sale of goods for the previous three years, multiplied by the amount of proceeds from the sale of these goods for the reporting period
103. For profit tax purposes, debt obligations issued on comparable terms mean debt obligations issued:
In the same currency for the same terms in comparable volumes, against similar collateral
104. The date of travel expenses under the accrual method of income tax is recognized as:
Date of approval of the advance report
105. Only quarterly advance payments of income tax based on the results of the reporting period are paid by:
Organizations whose sales income over the previous three quarters did not exceed an average of 1 million rubles. for each quarter
106. The amount of WIP balances at the end of the current month is included in the next month as part of:
Next month's direct expenses
107. For organizations and individual entrepreneurs using the simplified taxation system, the current procedure for conducting cash transactions:
Saved
108. The following are not entitled to apply the simplified taxation system:
Organizations whose value of depreciable property in their ownership exceeds 100 million rubles.
109. A taxpayer using a simplified taxation system should switch to a general taxation regime:
Has the right from the beginning of the calendar year, notifying the tax authority no later than January 15 of the year in which it intends to switch to the general taxation regime
Rights and obligations of the taxpayer
Exemption from VAT is in the nature of a notification. Therefore, consent to the benefit from the tax authority is not required. An entrepreneur who is exempt from the fee in question must not:
- calculate and pay VAT: exceptions are cases when he generates an invoice;
- submit a tax return with VAT.
A payer who does not pay VAT cannot be exempted:
- from issuing invoices to customers: in the documents he does not highlight the tax, but simply uses the inscription - without VAT;
- from maintaining a sales book;
- if VAT is included in the cost of goods when presented to suppliers.
Package of documents
When applying for a benefit or wishing to extend it, businessmen collect documents.
Notification of the use of the right to exemption is sent to the tax authority upon initial or secondary application. The list of papers for entrepreneurs and individual entrepreneurs was indicated above. Extracts from the balance sheet, as well as a declaration, can serve as supporting documents.
Release Features
Issues related to the procedure for paying VAT, as well as the tax exemption algorithm, are regulated by Federal Law No. 117.
- Budgetary institution : they can receive benefits by analogy with ordinary entrepreneurs under Article 145 of the Tax Code of the Russian Federation. There are no special features, despite the budgetary status of the enterprise.
- Unified agricultural tax : the determining factor in acquiring benefits is revenue (annual). For example, farms whose income without VAT for the year amounted to 100 million rubles in 2021 can apply for an exemption. Next, in 2021 and 2021. 90 million and 80 million respectively.
- UTII, OSNO, simplified tax system are special regimes, with the transition to which the taxpayer has the right to be exempt from paying VAT. But to apply the special regime itself, the taxpayer must meet the criteria that exist for each tax regime. Basically, they relate to the number and volume of revenue of a small enterprise.
- When importing equipment : tax exemption when importing goods into Russia is possible if they are not taxed, and technological equipment is also imported, the analogues of which are not available in Russia.
- Partial exemption : Article 149 of the Tax Code of the Russian Federation provides for the possibility of exempting some transactions of an entrepreneur from VAT. For example, some intermediary operations and sales of products related to the result of intellectual activity are not subject to this tax (only with a license).
- Medical equipment : preferential treatment is provided for vital medical goods. The obligatory criterion for exemption is a registration certificate issued by the Ministry of Social Health Development.
Reinstatement of input VAT
If an organization decides to use the VAT exemption, then the input tax previously accepted for deduction will have to be restored (in whole or in part). After all, after the organization “switches over” to the exemption, it will use previously purchased goods (work, services) in operations not subject to VAT. But deductions cannot be applied to such resources.
VAT must be restored, in particular, on the balances of unsold goods, on materials not transferred to production, on under-depreciated fixed assets and intangible assets listed on the balance sheet on the 1st day of the month in which the organization began to use the VAT exemption.
The tax on under-depreciated fixed assets must be restored in the manner prescribed by subparagraph 2 of paragraph 3 of Article 170 of the Tax Code of the Russian Federation, that is, in proportion to their residual value as of the date the tax exemption began to be used (clause 25 of the resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation dated May 30, 2014 No. 33) .
Reflect the amount of the restored tax in your VAT return:
- for the last quarter before the start of using the exemption - if the organization has been using the exemption since the beginning of the quarter. For example, if an organization begins to use the VAT exemption in April, the tax must be restored in the declaration for the first quarter;
- for the quarter in which the organization “switched” to the exemption - if the organization began using the exemption from the second or third month of the quarter. For example, if an organization begins to use the VAT exemption in June, the tax must be restored in the declaration for the second quarter.
This procedure is established by paragraph 8 of Article 145 of the Tax Code of the Russian Federation.
How to calculate revenue for VAT exemption
The amount of revenue under the application of Article 145 of the Tax Code of the Russian Federation is calculated only in relation to transactions related to the sale of products and services . Reducing the tax burden is important for those entrepreneurs who have a small amount of revenue. Thus, the calculation of income for the year applies only to transactions that are subject to VAT.
Amounts received from retail trade on UTII, provided that it is combined with the payment of imputed tax, are not included.
What services are not subject to VAT?
The legislation also provides for the possibility of providing a number of services without charging a tax rate. The list includes:
- Medical care from budgetary medical institutions, hospitals, clinics, dispensaries, etc. An exception is made for veterinary and cosmetology services;
- Supervision and care of children in schools and preschool educational institutions;
- Funeral services from government organizations involved in organizing funerals and other related events;
- Caring for elderly people with disabilities of various categories;
- Lessons and activities in out-of-school sports and educational institutions;
- Activities of budget cinemas, planetariums, theaters, and other cultural and entertainment institutions;
- Maintenance of river, sea, and air transport;
- Warranty and maintenance services that do not involve payment for work performed;
- Legal assistance from state-appointed or private lawyers;
- Transport passenger transportation by public transport;
- Pharmacological services in pharmacies, production of glasses in optics, fitting of hearing aids;
- Renting premises for foreign citizens and organizations;
- Services in the field of deposits and securities.
The listed services are paid for without accruing additional encumbrances, which makes them more affordable for citizens.
Operations
Users often have a question: what transactions are not subject to VAT? Let's look at their list:
- Issuing loans, both in cash and in securities, goods and other natural products;
- Banking operations carried out by organizations that have the appropriate license. Collection services are not included in this list;
- Transfer of ownership of enterprises as part of privatization;
- Providing infrastructure facilities, households and other real estate at the disposal of local government bodies;
- Transfer of other operations related to precious metals, unprocessed precious and semi-precious stones;
- Conducting auctions;
- Sale of land plots;
- Insurance services, provision of pensioners with funds from non-state funds and organizations.
The operations included in this list comply with the standards of the tax legislation of the Russian Federation.
Also, types of activities related to charity, support for people with disabilities and low-income people, research and development activities implemented with funding from the budget are not taxed. This also includes research in the field of space exploration and activities of strategic importance in the development of science and technology, supporting the needy segments of the population, and other social services.
Organizations engaged in export activities from Russia to other countries are exempt from payment, since VAT is an internal tax obligatory for residents of the country.
Renewal procedure, advantages and disadvantages
If the conditions and criteria that facilitated the entrepreneur upon receiving the benefit remain the same, he has the right to extend the benefit over time and notify the tax authority accordingly.
If revenue exceeds 2 million during the period of the exemption or the entrepreneur begins to sell excisable goods, the exemption ends. An entrepreneur is obliged to charge and pay tax from the 1st day of the month in which the specified limits were exceeded or an excisable product was sold.
Advantages:
- reducing the tax burden on the organization;
Flaws:
- The economic benefit of an entrepreneur associated with exemption from VAT is determined by the specific conditions for the implementation of his activities.
Release period
Once you start using the VAT exemption under Article 145 of the Tax Code of the Russian Federation, you will not be able to refuse it within 12 calendar months (clause 4 of Article 145 of the Tax Code of the Russian Federation).
When this period expires, you must submit to the inspectorate:
- documents confirming that during the release period your revenue for every three consecutive calendar months did not exceed 2 million rubles;
- notification of the extension of the VAT exemption for the next 12 calendar months or of its refusal.
At the same time, in some circumstances the right to exemption from VAT can be lost (clause 5 of Article 145 of the Tax Code of the Russian Federation):
- if revenue for any three months exceeds 2 million rubles;
- if you sell excisable goods.
The right not to pay VAT is lost from the 1st day of the month in which the excess revenue occurred or the sale of excisable goods began (clause 5 of Article 145 of the Tax Code of the Russian Federation).
