To account for VAT calculations, use account 68 “Calculations for taxes and fees” and account 19 “Value added tax on acquired assets”. A special subaccount 68.VAT is created for account 68. The credit of this account records accrued VAT, and the debit reflects the tax paid and amounts reimbursed from the budget. Account 19 in accounting is used to reflect input tax received from suppliers, but not yet reimbursed from the budget. Sub-accounts are also opened for account 19 “Value added tax on acquired values” depending on the type of values received.
VAT postings. Basic Rules
Enterprises in their economic activities face VAT when selling products, goods, providing services, performing work to their customers and contractors (and then it is necessary to charge VAT on their cost), as well as when purchasing goods, works, services from suppliers (taking VAT as a deduction ).
In general, VAT calculation on sales will look like this:
Debit 90 Credit 68 (if account 90 “Sales” was used when selling the asset).
Debit 91 Credit 68 (if the sale was carried out through account 91 “Other income and expenses”).
As we can see, VAT payable to the budget actually accumulates in the credit of account 68.
When we purchase a product, we have the right to reimburse the tax from the budget. In this case, the rules for accounting for VAT are as follows: the tax is allocated from the purchase amount and is accounted for in account 19 “VAT on purchased assets.” The wiring looks like this:
Debit 19 Credit 60 - VAT on purchased assets is reflected.
Debit 68 Credit 19 - VAT is deductible.
Thus, the refundable VAT is collected in the debit of account 68. And as a result, the amount of tax to be transferred to the budget is formed, defined as the difference between debit and credit turnover on account 68: if credit turnover is greater than debit, then the difference must be transferred to the budget, if vice versa - the difference is subject to compensation by the state.
We talk about typical transactions related to the deduction of VAT in the special material “Posting “VAT accepted for deduction”: how to reflect it in accounting?” .
Shipped but not sold goods: accounting according to the rules - BDO Unicon
09 April 2021
Practical Accounting (No. 2, 2021)
Authors: Svetlana ZOTOVA Director, tax and legal consulting of BDO Unicon JSC Elena SITNIKOVA
Assistant manager, tax and legal consulting at BDO Unicon JSC
Recently, the geography of goods supply is becoming wider and wider. However, goods can be delivered within Russia from several days to several weeks.
And sellers are not always in a hurry to transfer ownership of such goods to the buyer - there are often situations when ownership transfers on the date of delivery of the goods ordered to the buyer.
And here the seller’s accountant has a question about how to correctly account for these goods and whether it is possible to immediately recognize income and expenses in accounting and tax accounting, and how to calculate VAT. We will talk about all this in the material we bring to your attention.
Has the item been sold?
It's no secret that the data contained in primary accounting documents is subject to timely registration and accumulation in accounting registers (Clause 1, Article 10 of the Federal Law of 06.12.
2011 N 402-FZ “On Accounting” (hereinafter referred to as the Law on Accounting)).
Accordingly, the requirements of the legislation of the Russian Federation will be met if the accountant reflects all the facts of economic life in strict accordance with the primary accounting documents (for example, they bought a product - reflected it in accounting, sold it - the same thing).
In order to reflect revenue in accounting, it is necessary that the right of ownership (possession, use and disposal) of the product (goods) is transferred from the organization to the buyer or the work is accepted by the customer (service is provided).
This is directly stated in paragraph 12 of PBU 9/99 “Income of the organization” (approved by Order of the Ministry of Finance of Russia dated 06.05.99 N 32n).
In our case, the goods are shipped, but ownership of them does not transfer; accordingly, there is no revenue and there is no reason to record the goods as sold.
Accordingly, reflecting goods as sold before this happens means a violation of the Russian legislation on accounting. Let's explain this in more detail. As everyone remembers, every fact of economic life is subject to registration with a primary accounting document.
It is not allowed to accept for accounting documents documents that document facts of economic life that have not taken place (Clause 1, Article 9 of the Accounting Law).
Therefore, it is unlawful to recognize revenue on the basis of a shipment document if the transfer of ownership has not taken place, since such a document does not reflect the real fact of economic life.
And for such cases, there is precisely Article 15.11 of the Code of Administrative Offenses of the Russian Federation, which includes among the gross violations of accounting requirements, including accounting (financial) reporting, the registration of a fact of economic life that did not take place.
Such a violation may entail for officials, when committed for the first time, an administrative fine in the amount of 5,000 to 10,000 rubles, and for a repeated violation - an administrative fine in the amount of 10,000 to 20,000 rubles.
or disqualification for a period of one to two years (Article 15.11 of the Code of Administrative Offenses of the Russian Federation).
Many may skeptically argue that the violation is too minor and difficult to detect, so why should an accountant invent additional problems for himself, complicating accounting, which is well-established and works perfectly.
We hasten to disappoint such specialists, since sometimes even little things create an impression of the work of the organization as a whole, and against the backdrop of many ambiguities and varied interpretations of our legislation, clear and precise rules should not be neglected.
Besides, we haven't talked about taxes yet.
Typical VAT entries for purchased assets
VAT on purchased assets and services is accounted for using the following entries:
Debit 19 Credit 60 - reflection of the “input” VAT on purchased fixed assets, intangible assets, materials, goods, capital investments, works, services. Posting is done based on the received invoice.
Debit 68 Credit 19 - reflection of VAT deductible on inventories and services, including in the case of confirmation of the fact of export. Posting is done on the basis of invoices, and when confirming exports, after submitting the documents listed in Article 165 of the Tax Code of the Russian Federation to the Federal Tax Service and receiving the appropriate decision.
See also “What are VAT tax deductions?” .
In some cases, “input” VAT cannot be deducted.
For more information about situations when VAT deduction is impossible, and how to take it into account for tax purposes, read the Ready-made solution from ConsultantPlus. Trial access to the system can be obtained for free.
In accounting, tax that is not deductible is written off to cost or financial results accounts:
Debit 20 (23, 25, 26, 29, 44) Credit 19 - write-off of VAT on acquired assets and services that will be used in transactions not subject to VAT. The posting is made on the basis of an accounting calculation prepared by a certificate.
Debit 91 Credit 19 - write-off of VAT on other expenses if the invoice from the supplier was not received, lost or filled out incorrectly.
See also the material “What are the grounds and how to write off VAT on 91 accounts?” .
Debit 20 (23, 29) Credit 68 - restoration of VAT previously claimed for reimbursement of inventories and services used for transactions not subject to VAT. The basis of the posting is again a reference calculation.
For reasons for VAT restoration, see this material.
If you have made an advance payment to the supplier, you can see what transactions should be made for VAT in the Ready-made solution from ConsultantPlus experts. Get a free trial access to K+.
How not to fall victim to VAT “on shipment”
Stock up on deductions for two years
...you can use a friendly company with which you have one (for example, you belong to the same holding). It is important that the current VAT accounting policy of this company is different from yours.
The difference in the rules established for the transition period for companies that now calculate VAT “on payment” and “on shipment” (Article 2 of Law No. 119-FZ of July 22, 2005) allows you to create a reserve of deductions. The latter will deduct input VAT on all purchases not paid as of December 31 during the first half of 2006 (1/6 each month or half each quarter, depending on the length of the tax period). And the former may not charge VAT on shipments made in 2005 until they receive money for them from buyers. If they do not pay for the products supplied to them by the end of 2007, the tax will still need to be assessed - in January or in the first quarter of 2008.
Imagine that a product is delivered in December 2005, and the money for it is transferred only in January 2008. Then the second company will fully deduct the amount of VAT presented in the cost of the goods by mid-2006. And the first company will pay this amount to the budget only a year and a half later - in January 2008.
This is the source of money for paying VAT on shipments this year and a half. It is clear that the higher the cost of supply, the greater this source will be. Perhaps as a result, the second company will receive VAT reimbursement from the budget. It is known that it is not so easy to get it from there, so the first company can transfer part of its activities to the second. Then she will offset the VAT accrued on shipments against the amount of tax to be refunded. If this is not possible and the first company needs the money as a result of applying deductions, the second company can transfer the amount to it, for example, under a loan agreement. Then, in January 2008, it will be convenient to offset mutual claims between companies for payment for goods and repayment of the loan.
It is clear that the December delivery, in addition to the task of finding money for the upcoming payment of VAT “on shipment,” must have some other underlying business goal. Otherwise, there is a high risk that tax authorities will accuse both companies of dishonesty. Or worse, they will declare that the deal is aimed solely at “pumping” money from the budget, which means it contradicts the foundations of the rule of law, and, therefore, both parties must give everything received under it to the state (Article 169 of the Civil Code). For example, inspectors will probably do this if the company in our example sells its fixed asset to another and then takes it on lease or loan. And although this is just one of the options for completely legal attraction of working capital, you may have to justify yourself in court.
Who will support you with a deduction in difficult times?
An invoice from the supplier and the posting of goods supplied by him is all that the buyer will need to deduct VAT from January 1, 2006. Payment for goods will no longer be a necessary condition. “This simplifies the optimization of the amount of VAT paid to the budget, since, if necessary, it is possible to retroactively issue an invoice, a certificate of work performed or services rendered and an invoice, but it is impossible to make a bank transfer for the past days,” notes auditor Vladimir Kalinin from the legal . Simply put, it becomes possible to redistribute VAT deductions between periods. For example, when filling out a declaration for the past month, you see that the amount of VAT payable to the budget is obtained for yours. Then in the current month you can make some of your purchases in the previous month. If, of course, the suppliers agree.
But they may not agree, because for them this will mean an increase in accrued VAT for the previous month. Moreover, they will also probably begin to distribute their shipments by month so that the VAT accrued in each of them does not significantly exceed the deductions. Therefore, you may receive a refusal to supply your company with the goods it needs at the end of the month with an offer to purchase it at the beginning of the next. Most likely, those suppliers who pay VAT quarterly will agree, provided that both months between which you want to redistribute purchases are within the same quarter.
Someone in such situations will prefer to resort to one-day or cash-out fictitious goods, works or services for any amounts, “drawing” invoices, invoices and acts with the dates you need.
For those who are friendly with the law, Artem Kuzminykh, managing partner, advises to interact with other companies - those that are not afraid of charging VAT in the month you need. “In addition to banal one-day companies, the role of auxiliary companies can also be completely “white” companies, which in the periods you are interested in had VAT refundable from the budget. These are exporters, companies that have just purchased expensive fixed assets or large quantities of raw materials, materials, goods and have declared all VAT paid to their suppliers to be deducted, manufacturers of products subject to VAT at a rate of 10 percent, raw materials for the production of which are taxed at an 18 percent rate and etc.,” clarifies Mr. Kuzminykh. By the way, a company that, together with yours, will stock up on deductions for the next couple of years using the “transitional” provisions of Law No. 119-FZ is also suitable for the role of such a company.
These auxiliary companies can become a source of deductions necessary to reduce the amount of VAT in the period when your company has a lot of unpaid shipments.
“Different schemes are possible, but the basis is the same for all. A subsidiary company supplies your company with goods. At the same time, she, of course, accrues VAT, but does not pay - it is offset by the tax refund due to her from the budget. Having capitalized this product, your company deducts VAT on it, thereby compensating for the amount of tax accrued on shipments not paid by the end of the period. In the future, when the money for them comes in and there is enough to pay VAT from, your company sells the goods purchased from an auxiliary company with a symbolic markup to it. VAT arises on sales, and your company pays it with the appropriate money. And the auxiliary company deducts this tax, that is, in the end it loses nothing.
Naturally, there is no need to transfer real money from your company to the auxiliary one, and then back - it’s enough to arrange an offset,” explains Artem Kuzminykh. The sale of a product purchased from the same company to a subsidiary company can be easily explained to the inspectors: it was not useful and you returned it. Tax officials themselves have long insisted that the return of a quality product to the seller is nothing more than its reverse sale (see the October 2004 issue of Calculation, p. 32). And so that the question does not arise at all, it is possible in the contract for the supply of goods to you to initially provide for the obligation of the auxiliary company to buy it back from your company if, for example, you cannot sell it to anyone.
But such companies will not always be able to come to your aid. After all, for them, delivery to you will mean not only the accrual of VAT, but also an increase in the tax base for income tax. And if such a company has a reserve of VAT deductions, then it is not a fact that it has enough expenses in tax accounting. However, there will be no problem if you carry out both the delivery and the return sale within the same quarter, because income tax is paid quarterly.
Special condition with judicial perspective
You can defer the accrual of VAT until you receive money from buyers by stipulating in contracts with them the transfer of ownership of the goods or the result of work at the time of payment. Then only at the moment of payment will the VAT object arise, that is, sales (clause 1 of Article 146 of the Tax Code). But this is a direct path to court. Tax officials are convinced that, regardless of the moment of transfer of ownership, VAT in 2006 must be charged at the time of physical transfer of goods or results of work (Calculation wrote about this in the September issue on page 52). You can argue with them. Indeed, in this case, it turns out that it is necessary to determine the tax base and calculate the tax before its object - sales - arises. Meanwhile, the tax base is a cost characteristic of the tax object (Clause 1, Article 53 of the Tax Code). That is, as long as there is no object, there cannot be a tax base. This means that it can be determined no earlier than the object itself appears; in the case of VAT, only at the moment of transfer of ownership. In addition, the obligation to calculate the tax base and pay the tax exists only if its object exists (this follows from paragraph 1 of Article 44 and paragraph 1 of Article 38 of the Tax Code).
Tax officials now require those who calculate VAT “on shipment” to charge VAT at the time of physical transfer of goods. Despite this, so far there have been no arbitration disputes with them on this score, apparently because it is easier to choose a “payment” accounting policy than to go to court. Since the choice will disappear in 2006, arbitration will likely emerge over time. If you decide to participate in its creation, start small. Provide for the transfer of ownership after payment in the contract for any one supply of small value. Charge VAT when you receive money for the goods. When the inspectors do not agree with this, challenge their decision in court. It is known that judges are more courageous in making decisions not in favor of the budget when the dispute is about a small amount. If you manage to defend your case in all instances, including the cassation, you can thus postpone the accrual of already large amounts of VAT until the moment of payment.
However, it will be inconvenient to do this all the time, if only because your company will then most likely have to sue the inspectors continuously. Therefore, waiting to calculate VAT before payment only makes sense when we are talking about significant amounts of VAT for your company. In addition, not every buyer will agree to such a condition, fearing that then before payment he will not be able to do anything with the purchased goods - the ownership of it remains with your company. But the contract can provide for the buyer’s right to dispose of the goods and alienate them during this period (Article 491 of the Civil Code). Please also pay attention to the fact that there is no particular difference between a deferred payment with the condition of transfer of ownership at the time of payment and a regular deferment. Indeed, in the latter case, the goods are held as collateral by the seller from the moment of shipment until the day of payment, which means that the buyer cannot sell it or use it in any other way without a special clause in the contract (Clause 5 of Article 488 of the Civil Code ).
Tax authorities will agree that at the time of transfer of goods there is no need to charge VAT only if the contract concluded with him does not imply the transfer of ownership rights to the recipient (this was confirmed by the deputy head of the Department of Indirect Taxes of the Federal Tax Service Vsevolod Levi, details are in the last issue of “Calculation” on p. 85). Similar agreements are based on two more ways to obtain a deferment in the calculation of VAT until the receipt of money for the shipped goods.
Ubiquitous middlemen
The transfer of ownership does not involve the transfer of goods to an intermediary, who must sell it on behalf of your company. This means that VAT will not have to be charged at the time of such transfer. This will need to be done only when the intermediary transfers the goods to the buyer he has found. Until this moment, your company receives a deferment in calculating VAT. If such a buyer pays for the goods no later than he receives it, then the intermediary company will immediately transfer to you the money received from him, withholding his remuneration from it, and you will have something to pay the accrued VAT.
That is why in 2006 Artem Kuzminykh proposes to work with regular customers as commission agents or agents. “This, of course, is only possible if your company’s buyers are resellers and not end users of its products,” he notes. – You can get them interested in becoming intermediaries by offering a discount or explaining that their taxes will be lower as a result. Thus, they will have to pay taxes only on their intermediary remuneration (in the form of which they will receive their usual markup). Moreover, they will include only the amount of remuneration in their income, and will probably be able to switch to a simplified system. Note that by making your buyers agents, you can persuade their buyers to become subagents. This will further delay the time for your company to charge VAT on shipped goods.”
In a more daring version, also proposed by Artem Kuzminykh, yours becomes the mediator.
Submit VAT for storage or rental
Alexander Elin, director, advises taking advantage of the opportunities offered by responsible storage of goods with the issuance of a warehouse certificate. The transfer of goods to the custodian also does not imply the transfer of ownership rights to him. This means that there is no need to charge VAT at the time of such shipment.
The method proposed by Mr. Elin is as follows. Your company transfers the goods to the buyer not under a supply agreement, but under a warehousing agreement (Article 907 of the Civil Code). It assumes that the custodian is obliged, for a fee, to store the goods transferred to him and return them safely. The buyer, upon accepting the goods, issues a warehouse receipt to your company. It is a security certifying the rights to a product (Article 912 of the Civil Code). The certificate must indicate the value of the goods. It is better to enter there the amount that you are going to earn for it (including VAT). Indeed, in the event of loss of goods, the keeper will pay its owner the amount recorded in the warehouse receipt. The custodian is obliged to release the goods to the bearer of the certificate. Your company can sell it, thereby actually selling the product itself. The date of sale of the certificate will be the moment of accrual of VAT on the shipped goods (clause 7 of Article 167 of the Tax Code as amended by Law No. 119-FZ).
The custodian cannot dispose of the received goods. Therefore, as soon as he finds a buyer for the goods, your company will have to sell the certificate - either to the custodian or directly to the buyer. You will be able to pay VAT from the money received for the certificate. Even if the person who buys the certificate asks for a deferred payment, this method will still allow you to postpone the VAT calculation to another tax period, in which, perhaps, your company will receive the money necessary to pay the tax from some other sources or “collect” deductions .
Its price depends on who your company sells the certificate to. If it is for a custodian, then it will be equal to the face value (in this case, a nominal fee must be provided for storage). If the buyer he finds, then the denomination needs to be increased by the markup that under normal conditions the custodian would receive as a reseller of your goods. Then he will receive this extra charge from you in the form of a remuneration for storage, on the amount of which he will pay VAT. Your company will be able to deduct this VAT. “The disadvantage of the latter option is that it increases the amount of revenue for your company. This, for example, may make quarterly payment of VAT impossible,” warns Alexander Elin.
This method is also only suitable when your customers do not consume the goods purchased from you, but resell them. “First of all, it is suitable for those who sell their products through a dealer network,” notes Alexander Elin.
But if the buyer will use the goods purchased from your company as a fixed asset or inventory, then another option is possible. You will sell the certificate of value of the goods to the custodian only when he is ready to pay for the purchase. And in the agreement with him you indicate that the custodian has the right to use the things received (Article 892 of the Civil Code allows this). It is better to provide a nominal fee for use.
Lease does not involve transfer of ownership rights. This means that for a buyer who wants to pay for the product later, you can rent it out until the money is received. Then your company will not have to charge VAT at the time of transfer of goods, and the buyer will be able to legally use the received property. When he is ready to pay, enter into a purchase and sale agreement with him and charge VAT, which you can transfer to the budget from the money received. This scheme can be justified by the buyer’s desire to test the property before purchasing it.
Good old “accidental” mistakes
There is always a “fire” method that few accountants have not used. Until now, they resorted to it when an advance was paid into the current account at the end of the month, which is why a large amount of VAT to be paid to the budget “came out” in the declaration. In the new year, this method will also be useful for deferring the payment of tax on shipped goods, the money for which the buyer will transfer only in one of the following months. The accountant will not show the unpaid shipment in the declaration and, accordingly, will not charge VAT on it. When the buyer pays, the company will have money to remit the tax. The accountant will transfer VAT to the budget and submit an updated declaration for last month, entering the correct data into it - they say, we made a mistake, we will correct it.
The price of such a deferment is penalties that will add up to the amount of arrears on VAT for the time it will exist. They must be transferred to the budget before clarification is submitted. True, if tax authorities suddenly discover an arrears before they receive an updated declaration, then a fine cannot be avoided (Article 122 of the Tax Code). The risk is less if you defer the calculation of VAT only for a short time in this way. For example, the likelihood that inspectors will have time to study the initial declaration in a month, demand the entire primary declaration with invoices and check them as well is small. Especially if the accountant sends the declaration by mail.
But by constantly resorting to this method, the accounting department risks drowning in clarifications, and the inspectorate will quickly figure out what’s what and one day they will raid the company with an on-site inspection. And it’s also good if they are alone, and not together with the “tax” police. After all, by not showing VAT in your return, you are including deliberately false information in it. And for this (if, of course, you “accumulate” a large amount of arrears as defined by Article 199 of the Criminal Code) there is criminal liability. True, both “knowledge” and intent are not so easy to prove, because unreliable information in the declaration can be the result of anything - for example, a technical error by an accountant or the fact that the shipping documents were handed over to the accounting department by slob managers late. However, you must agree, there is a risk.
From this point of view, another better way is to honestly show in the declaration all accrued VAT, but pay as much tax as the company can afford, and pay the rest, along with penalties, as money is received from customers. The amount of penalties, by the way, can initially be included in the contract price of the company’s products shipped with deferred payment. Such non-payment of tax will no longer be a crime.
As for tax fines, when assessing their likelihood, you again need to proceed from the speed with which your inspectorate checks the declarations received. Having discovered an underpayment, inspectors can not only assess a fine, but also unquestionably write off the arrears from the company’s bank accounts, and if there is not enough money there to repay the debt, block them. But first, they are obliged to send the company a demand for payment of arrears and wait until it fulfills it within the period specified in it. So you will have some time reserve. Although it is difficult to predict its duration. The Tax Code establishes only a maximum period for submitting a claim - three months from the date of discovery of the arrears. And the deadline for its execution is generally left to the discretion of the inspector.
No frills
Planning shipments and purchases will also help to avoid the diversion of working capital to pay VAT. Of course, it is impossible, and not necessary, to subordinate the entire activity of a company to the goal of VAT optimization. However, such a factor as the need to charge tax at the time of shipment must now be taken into account. One-time measure: having agreed with buyers, postpone the maximum possible number of shipments planned for the next year to December. This will allow you to delay the accrual of VAT on them until the money is received (but no later than January 2008). However, buyers who now consider VAT “on payment” may not agree. After all, for December purchases they will deduct tax no earlier than they are paid, and for next year’s purchases - immediately at the time of capitalization.
In the future, it makes sense to plan shipments and purchases for each month (or quarter, depending on what tax period the company has) so that, based on its results, they provide an amount of VAT payable to the budget that is acceptable for your company. “Until now, companies have worked on a cash basis - “money arrived, payments were made to suppliers and to the budget.” Next year, it is better to build relationships with suppliers and buyers based on the need to comply with the “minimum balance in warehouse” rule, when sales during the tax period for VAT are approximately equal in value to purchases, notes Alexander Elin. “In addition, it will be necessary, if possible, to move the date of shipment to the tax period in which payment is expected, including after the fact, that is, replacing, with the consent of buyers, the documents previously issued to them.”
It is clear that it is easier to maneuver if the tax period is a quarter. For example, then there is a greater chance that by the time VAT is charged on a delivery, your company will already have received money for it from the buyer. Therefore, if you have the opportunity to switch to paying VAT once a quarter, you should not neglect it. Moreover, legislators doubled the limit of three months' revenue, which gives the right to a quarterly tax period, for 2006 - to two million rubles.
The problem of VAT on shipments not paid by the end of the period can be solved by requiring prepayment from buyers. And not necessarily one hundred percent. After all, the company will have a source of money for transferring VAT on a specific shipment if the buyer pays in advance only the amount of tax presented to him in the cost of the goods, work or service. Your company will charge VAT on the advance payment, which will be deducted at the time of shipment. However, if your suppliers switch to prepayment work, then you may have to demand 100% advances from buyers.
If your company can afford to pay interest on loans and borrowings, then they will become a source of funds for transferring VAT on shipments not paid by the end of the period. Short-term loans, in particular overdraft, are more suitable for this purpose. Its essence is this: when receiving a payment order from a company, for which there is not enough money in its account, the bank automatically adds the missing amount from its own, providing it to the company on credit. Then the money that goes into her account goes to repay the loan and accrued interest. An overdraft usually does not require collateral, and its limit depends on the average monthly inflows into the account. The bank will open an overdraft if some time has passed since the opening of the account (usually from several months to six months) and money is received regularly.
Another way out is the assignment of the right to claim debt from the buyer who has received the goods but has not yet paid for it, as well as factoring as its type. Under a factoring agreement, a company transfers to the bank an existing or future debt of its buyer, and the bank, for a fee, finances it in the amount of the receivables received. The money received from the bank will allow you to pay the VAT accrued on the shipment that was not paid for by the buyer.
Don’t forget to include fines and interest for late payments in contracts with customers. Although this does not guarantee timely receipt of money, it increases its likelihood. And finally, you need to remember that the tax burden does not only consist of VAT. Artem Kuzminykh draws attention to this: “To optimize income tax, property tax, unified social tax, personal income tax, much more funds have been invented than for VAT. Therefore, you can honestly charge VAT on all shipments not paid by the end of the period, saving this amount or postponing its payment to the budget by reducing other taxes.”
You can defer the calculation of VAT until you receive money from the buyer if you formalize the transfer of goods with contracts that do not imply the transfer of ownership to the recipient - commission, storage, lease.
In order to “collect” deductions and use them to compensate for VAT on unpaid shipments, it is not necessary to turn to the help of fly-by-night or cash-out companies. The source of deductions can also be “white” companies, which are not afraid of charging VAT in the period you are interested in.
Natalia MARTYNYUK
Typical entries for accounting for VAT on sales
Debit 90 Credit 68 - VAT accrual on sales of assets, works, services. The basis of the entry is the outgoing invoice.
Debit 76 Credit 68 - accrual of VAT on advances received. The basis is an advance invoice.
Debit 68 Credit 76 - reflection of the offset of VAT on advances upon completed shipment (performance of work, provision of services). The basis is the issued invoice.
Debit 08 Credit 68 - accrual of VAT on construction and installation works carried out in-house. The basis is an accounting certificate.
Debit 91 Credit 68 - VAT accrual for gratuitous transfer of assets. The posting is made on the basis of the issued invoice.
Debit 68 Credit 51 - VAT debt has been repaid. The basis is a bank statement.
If you have received an advance from the buyer, you can see what entries should be made for VAT in the Ready-made solution from ConsultantPlus experts. Get a free trial access to K+.
If VAT is calculated by tax agents
Example 1. Lease of state property:
Debit 20 (23, 25, 26, 44) Credit 60 (76) - accrual of costs for renting state property.
Debit 60 (76) Credit 68 - VAT accrual from the tax agent.
Debit 19 Credit 60.76 - accrual of input VAT specified in the agreement.
Debit 68 Credit 51 - reflection of VAT transferred to the budget.
Debit 68 Credit 19 - VAT on rent to be refunded at the time of tax payment.
See the material “ Tax agent for VAT in transactions with state property ” for more details.
Example 2. Services provided by a foreign company on the territory of the Russian Federation:
Debit 44 (20, 25, 26) Credit 60 (76) - a reflection of services provided by a foreign company to a Russian organization in the Russian Federation.
Debit 19 Credit 60 (76) - accounting for VAT paid on the income of foreign legal entities.
Debit 60 (76) Credit 68 - VAT withholding from a foreign partner.
Debit 68 Credit 51 - VAT paid by the tax agent.
Debit 68 Credit 19 - VAT of the tax agent to be deducted after its payment.
See also the material “ How can a tax agent deduct VAT when purchasing goods (work, services) from a foreign seller .”
VAT on scrap metal in 2021: clarifications
If the tax agent uses metal in an activity that is subject to value added tax, then the VAT paid as a tax agent can be claimed as a deduction. If for some reason the transaction price has changed or the amount of scrap metal in the primary documentation has changed, the amount of value added tax must be adjusted.
Also read: Contract for the purchase and sale of an apartment for cash
How it became. So far, new rules have been introduced only for buyers of raw animal skins, scrap and waste of ferrous and non-ferrous metals, secondary aluminum and its alloys. The exception is “physics” buyers. If officials’ expectations are met and budget revenues increase, the rules will be extended to others. Such clarifications were provided by the Ministry of Finance in letter No. 03-07-14/51894 dated August 14, 2017. The seller will issue invoices excluding VAT. On the document he will put o. The buyer will calculate the VAT himself, regardless of whether he is a VAT payer or not. He has the right to deduct VAT from the transferred payment.
Typical VAT transactions when returning goods
From 2021, postings for returning goods depend on how the return occurs: within the framework of the original contract or as a resale under another contract, and does not depend on whether the goods are returned of high quality or defective.
If the item is returned under the original contract, the postings will be as follows.
Important! ConsultantPlus warns If you are returning a product for which “input” VAT was previously deducted, the tax must be restored. This is done on the basis of the seller's adjustment invoice or primary documents on the reduction in the value of goods shipped, whichever came first. See K+ for more details. Trial access is available for free.
From the buyer:
Debit 60 Credit 76 - adjustment of settlements with the seller.
Debit 76 Credit 41 - return of defective goods to the seller.
Debit 76 Credit 68 - restoration by the buyer of VAT previously accepted for deduction, attributable to the cost of the return.
From the seller:
Debit 62 Credit 90.1 - reversal of revenue.
Debit 90.2 Credit 41 - reversal of cost.
Debit 90.3 Credit 19 - reversal of accrued VAT on returned goods.
Debit 68 Credit 19 - deduction by the seller of VAT on the returned goods.
In case of reverse sale, taxation will be the same as for a regular sale, only the buyer and seller change places.
Example. Postings when returning goods of proper quality from ConsultantPlus The organization received 100 units of goods worth 120,000 rubles, including VAT - 20,000 rubles. Of these, 10 units were returned to the supplier for 12,000 rubles, including VAT - 2,000 rubles. You can view the entire example in K+, getting free full access.
New VAT rate: difficulties of the transition period
Due to changes in the VAT rate, the risk zone includes transactions whose obligations as of January 1, 2021 will not be fulfilled or not fully fulfilled.
In addition to situations where the receipt of money and the shipment of goods (performance of work, provision of services) occur in different years, difficulties may arise with those contracts that were signed in the current year, but will be fulfilled in full or in part only in the next year.
Regulations:
When the sale took place in the current year, and the money arrived in the next year, the tax base will be finally determined on the day of shipment and should not be adjusted further on the date of payment (clause 1, clause 1, article 167 of the Tax Code of the Russian Federation). Such transactions are subject to VAT at a rate of 18% and will not cause any difficulties to the accountant due to changes in the rate.
However, if not all goods (work, services) provided for in the contract have been shipped this year, the VAT rate will need to be determined for each shipment separately, based on the date of sale. Consequently, for goods (works, services) shipped after 01/01/2021, a new tax rate will be applied (clause 4 of article 5 of the Federal Law of 08/03/2021 No. 303-FZ).
Let's say the parties entered into a supply agreement providing for the shipment of the first batch of goods in November 2021, and the second in March 2021. Then, when drawing up documents for the first shipment, you will need to indicate the VAT rate of 18%, and for the second - 20%. The tax is charged on the cost of goods actually shipped in each shipment (clause 1, article 154 and clause 1, clause 1, art.
167 of the Tax Code of the Russian Federation).
Money 18, shipment 20
The situation with the calculation of VAT is much more complicated when the obligations of the parties are distributed between years in reverse order. If money for a product (work, service) was received in 2021, and shipment occurs only after 01/01/2021, the recipient of the money will have to calculate and pay VAT on it at the rate that is in effect on the date of receipt (clause 2, clause 1, article 167 and etc.
4 tbsp. 164 Tax Code of the Russian Federation, paragraph 4 of Art. 5 of Law No. 303-FZ). Therefore, the tax will be calculated at the rate of 18/118, and the tax amount determined in this way will be reflected in the invoice sent to the buyer (customer) and in the declaration. This means that the VAT determined at this rate will be transferred by the seller (performer) to the budget, and accepted for deduction by the buyer (customer).
In 2021, after shipment of goods (performance of work, provision of services), both parties will have to perform the reverse operation - deduct and restore advance VAT.
And here we must remember that the amount that was calculated is accepted for deduction and restoration. Therefore, an increase in the rate at the time of shipment does not affect this part of the tax calculation operation.
Since 303-FZ did not establish any special rules in this part, we are guided by the general rules: clause 8 of Art. 171, paragraph 3 of Art. 170 Tax Code of the Russian Federation.
Moreover, the procedure described above applies to both full and partial prepayment.
If the agreement stipulates that only part of the money is transferred in 2021, and the rest after the new year, then money received in the current year will be taxed at a rate of 18/118, and those received after the holidays - at a rate of 20/ 120.
And here it is important for the accountant to clearly separate the financial flows so that there is no confusion with the amounts of VAT that are restored and accepted for deduction - in all cases we are talking about calculated amounts, albeit at different rates.
XVI Kontur.Conference “Accounting Innovations 2021–2021”: one of the key topics is the change in VAT in 2021. It will be held in Moscow on November 21–22, online broadcast and recordings of some reports will be available from any region.
To learn more
Let's look at the situation using an example. Suppose a contract has been concluded, according to which the customer transfers payment in installments: in December 2021 and January 2021, 10,000 rubles each. The work completion certificate will be signed in March 2021.
In this case, the contractor will calculate VAT in December on the received advance payment in the amount of 1,525 rubles (10,000 × 18/118) and indicate this amount in the advance invoice. Based on this document, the customer will deduct 1,525 ₽.
From the second part of the payment, the contractor will calculate VAT at the new rate: 1,667 ₽ (10,000 × 20/120) and reflect this amount in the invoice issued to the customer. The customer will accept it for deduction.
In March, after signing the act, the contractor will deduct all previously calculated advance VAT in the amount of 3,192 rubles (1,525 + 1,667). The customer will restore the same amount of VAT.
Even in a situation where shipment is carried out in parts and occurs in different years, this rule will remain unchanged, since when restoring and deducting tax on prepayment, only amounts that are offset against the goods shipped, work performed or services rendered are taken into account (Clause 6 of Art. 172 of the Tax Code of the Russian Federation and clause 3 of Article 170 of the Tax Code of the Russian Federation). Partial shipment of goods will lead to a split of the prepayment amount for VAT purposes, but the calculated tax amounts will be taken into account.
For example, a supply agreement has been concluded under which payment is made in November 2021 and February 2021 for 10,000 rubles.
The goods are shipped in batches: in December 2021 for the amount of 5,000 ₽ (including VAT at the rate of 18% - 763 ₽) and in March 2021 for the remaining amount.
The supplier, having received the first prepayment in November, will calculate VAT in the amount of 1,525 ₽ (10,000 × 18/118) - the buyer will deduct this amount. After delivery of the first batch of goods, the supplier will deduct 763 ₽, and the buyer will restore this amount.
In 2021, regarding the second payment, both parties will carry out a similar operation, but at a new rate: the supplier will calculate VAT in the amount of 1,667 ₽ (10,000 × 20/120), and the buyer will deduct it on the basis of the second “advance” invoice - textures. After shipping the second batch in March, the supplier will deduct advance VAT in the amount of 2,429 rubles (1,525 - 763 + 1,667). The same amount will be reimbursed by the buyer.
When all the money under the contract is received in 2021, and the goods are sold in 2021, the difference of 2% between the previous and current VAT can be made up if you agree with the counterparty to reduce the cost of a unit of goods, so that the amount of goods increased by the new VAT rate became equal to the prepayment.
Looking for a source
The issue of paying an additional 2% tax is especially acute if all the money under the agreement was received in 2021, and the implementation will take place in 2021. Then the prepayment includes VAT at a rate of 18%, and it must be paid at a higher rate. There are two options to solve this problem.
At the expense of the seller
You can agree with the counterparty to reduce the cost of a unit of goods so that the amount of goods increased by the new VAT rate becomes equal to the prepayment.
For example, if the contract price was 118,000 rubles (VAT at the rate of 18% - 18,000 rubles, cost without VAT - 100,000 rubles), you can agree on a price reduction to 98,333.3 rubles.
The total cost will not change and will be the same 118,000 rubles (VAT at the rate of 20% - 19,666.7 rubles). The 118,000 ₽ received as an advance payment will be enough to pay tax at the new rate.
At buyer's expense
Clause 1 of Art. allows the buyer to present an additional amount of VAT. 168 Tax Code of the Russian Federation. Moreover, this can be accomplished precisely during implementation. Thus, if on the date of sale the tax rate has increased, the seller is obliged to submit additional VAT to the buyer.
However, neither the Tax Code of the Russian Federation nor the Civil Code of the Russian Federation established a corresponding obligation of the buyer to pay additional VAT to the seller. Therefore, it is advisable to agree on an increase in the amount of VAT separately by drawing up an additional agreement to the contract, from the moment of signing which the buyer will have an obligation to pay the corresponding amount.
If it is not possible to conclude an additional agreement, you need to officially notify the counterparty of the change in VAT obligations even before executing the contract. Making a demand for additional payment of VAT is illegal if both parties incorrectly determined VAT obligations during the period of concluding and executing transactions (determination of the Supreme Court of the Russian Federation dated November 23.
2021 No. 308-ES17-9467 in case No. A32-4803/2015).
State and municipal contracts deserve special attention. Prices of contracts concluded before the VAT rate increase are not subject to change in connection with such an increase (letter of the Ministry of Finance dated 08/28/2021 No. 24-03-07/61247).
This means that suppliers (performers) under such contracts will not be able to either reduce the cost of a unit of goods or charge an additional 2% to the buyer (customer).
This means that they will actually have to pay this tax at their own expense, “throwing” it on top of the cost of the goods.
https://www.youtube.com/watch?v=c_rBg8MbJJw
To avoid unnecessary friction with counterparties and tax authorities due to the fact that the documents indicate VAT at the old rate, you need to redo contracts and invoices in advance for those shipments that will occur next year and indicate the new VAT rate in them.
Civil side
Since the VAT rate is indicated both in contracts and in invoices issued to counterparties, we recommend that for those shipments that will occur next year, the contracts and invoices should be revised to indicate VAT at the new rate. This approach not only fully complies with paragraph 1 of Art.
168 of the Tax Code of the Russian Federation, which requires adding VAT to the price of the goods sold, but will also allow you to avoid unnecessary friction both with counterparties and with tax authorities due to the fact that VAT is indicated in the documents at the old rate.
Please note that changes to the agreement can only be made if, on the date of signing the additional agreement, it has not yet been fully fulfilled by both parties, which means that changes need to be taken care of in advance (clause 3 of Article 425 of the Civil Code of the Russian Federation).
When drawing up agreements in 2021 that will be executed in the new year, the parties can now include in the text of the agreement VAT at the new rate a reference to clause 4 of Art.
5 of Law No. 303-FZ, indicating that the shipment will occur in 2021, when the VAT rate will be equal to 20% (letter of the Ministry of Finance of Russia dated September 18, 2021 No. 03-07-11/66752). The terms of contracts can be formulated similarly when shipments are made in parts in 2021 and in 2021.
In this case, the parties have the right to separately indicate prices for each batch of goods (stage of work, services), including the appropriate VAT rate.
Alexey Krainev, tax lawyer
Source: https://kontur.ru/articles/5288
