Second half of 2021: changes in the VAT area

Recipients of regional and local subsidies will restore VAT

Starting this year, legal entities receiving subsidies from regional and local budgets will submit applications for the restoration of VAT amounts previously accepted for deduction. The innovation will affect those organizations that receive subsidies for reimbursement of costs (including tax) associated with payment for purchased goods (work, services), including tax, as well as for reimbursement of costs for paying tax when importing goods into the territory of the Russian Federation and other territories located under its jurisdiction.

Recipients of subsidies from the federal budget already have such an obligation. Legal entities that use financial assistance from other budgets will have to restore VAT from July 1, 2021. The corresponding amendments are provided for by Federal Law dated November 30, 2016 N 401-FZ.

New VAT from July 1, 2021 for a limited number of persons

A relatively small number of people are affected by 2 more changes that led to:

• Changes in the requirements for a document confirming the right to exemption from tax or to apply its reduced (10 percent) rate to products for medical purposes (subclauses 1 and 4 of clause 2 of Article 149 of the Tax Code of the Russian Federation have been adjusted). From July 1, 2017, such a document becomes a registration certificate issued in accordance with the law of the Eurasian Economic Union. At the same time, until December 31, 2021, a similar document drawn up in accordance with the legislation of the Russian Federation is valid.
• Expanding the list of situations in which the amount of tax already accepted for deduction must be restored (subclause 6, clause 3, article 170 of the Tax Code of the Russian Federation has been added). The text of this subclause, which was in force before the amendments, required the restoration of the tax upon receipt of subsidies from the federal budget intended to compensate for the costs incurred. According to the new edition, restoration will be required when receiving a subsidy from any budget.

Read about all situations requiring VAT restoration in the material “Art. 170 of the Tax Code of the Russian Federation (2017): questions and answers.”

The period of the bank guarantee for VAT refund on request has been increased

Law N 401-FZ also introduced a rule according to which the validity period of the guarantee provided by the bank for VAT refund in the application form must be at least 10 months from the date of filing the declaration with the amount of tax to be refunded. Such changes were made to paragraphs. 1 clause 4 of article 176.1 of the Tax Code of the Russian Federation.

Let us remind you that since 2014, the guarantee period for accelerated VAT refunds has been 8 months. At the same time, it remains possible to reimburse the tax without providing a guarantee if the organization has transferred 7 billion rubles or more in taxes to the budget system of the Russian Federation over the past three years. This amount does not include taxes paid in connection with the movement of goods across borders and as a tax agent.

Second half of 2021: changes in the VAT area

Traditionally, most changes are made to the Tax Code with the chiming clock.
However, the beginning of the second half of the year also often becomes a reason for innovation. Thus, from July 1, 2017, important changes related to VAT will come into force. 06.06.2017 Author: Kocherzhenko Anna Evgenievna, consultant on accounting and taxation
Situations in which it is necessary to restore VAT constantly become the subject of tax disputes.

Currently, the tax norm is in force. 6 clause 3 art. 170 of the Tax Code of the Russian Federation, according to which, when receiving a subsidy from the federal budget to reimburse the costs of paying for goods, works or services, the input VAT previously accepted for deduction on these goods, works, or services must be restored. When receiving subsidies from the regional or local budget, VAT is not required to be restored.

However, from July 1, 2021, Federal Law dated November 30, 2016 N 401-FZ will come into force, introducing changes to this norm, according to which even if the subsidy is received from the regional or local budget, it will be necessary to restore the “input” VAT adopted earlier for deduction.

When deciding which subsidies are subject to the new tax rule and which are subject to the old one, it is necessary to keep in mind that the moment the obligation to restore VAT arises is determined by paragraph. 4 pp. 6 clause 3 art. 170 of the Tax Code of the Russian Federation as the quarter in which the subsidy was received by the taxpayer. In other words, from the point of view of VAT restoration, the moment of acceptance for accounting of purchased goods (works, services) or payment for them does not play a role. The tax is subject to restoration (if applicable) in the quarter in which the subsidy is received.

Therefore, if a subsidy from the regional or local budget is received before July 1, 2021, then there is no need to restore input VAT, since the period before July 1, 2021 is subject to a legislative norm requiring VAT restoration only when receiving a subsidy from the federal budget.

If a subsidy from the regional or local budget is received after July 1, 2021, then input VAT will have to be restored. The amount of recovered VAT is reflected as part of other expenses taken into account when determining the income tax base.

The good news for taxpayers is that, according to paragraphs. 6 clause 3 art. 170 of the Tax Code of the Russian Federation (both currently in force and in the new edition from July 1, 2021), the tax is restored only in the case of receiving subsidies, including VAT. In other words, if the subsidy was received without VAT, the tax cannot be restored. Employees of the Ministry of Finance and the Federal Tax Service agree with this conclusion.

The second important change to Chapter 21 of the Tax Code of the Russian Federation is related to the declarative procedure for VAT reimbursement.

The declarative procedure for tax refund is the implementation of an offset (refund) of the amount of tax declared for reimbursement in the tax return in an expedited manner - before the completion of the desk audit.

The list of organizations entitled to the application procedure for VAT refund is defined in Art. 176.1 Tax Code of the Russian Federation. In particular, organizations that have secured a bank guarantee providing for the bank’s obligation to pay to the budget on behalf of the taxpayer the amounts of tax that were excessively received by him (credited to him) have the right to a VAT refund before the completion of the desk audit, if the decision to refund the amount of tax claimed for refund in the application order will subsequently be canceled in whole or in part.

According to the legislation currently in force, only banking structures can act as a guarantor when interacting with the MIFTS.

However, in accordance with the innovations provided for by Federal Law No. 401-FZ of November 30, 2016, taxpayers wishing to obtain the right to a VAT refund on an application basis, from July 1, 2021, for this purpose, will be able to use not only a bank guarantee, but also a guarantee from a non-banking organization sectors. In this case, the third party - the guarantor will have to meet the following requirements (clause 2.1 of article 176.1 of the Tax Code of the Russian Federation):

— be a Russian organization;

- the total amount of VAT, excise taxes, corporate income tax and mineral extraction tax paid by the guarantor during the three years preceding the year in which the application for concluding a guarantee agreement was submitted, excluding the amounts of taxes paid in connection with the movement of goods across the border of the Russian Federation and in as a tax agent, amounts to at least 7 billion rubles;

— the amount of the guarantor’s obligations under existing surety agreements (including a surety agreement secured by the obligation to pay VAT, refundable to the taxpayer on an application basis) as of the date of submission of the application for the conclusion of a surety agreement does not exceed 20% of the value of the guarantor’s net assets, determined as of December 31 of the calendar year , preceding the year in which such application was submitted;

- the guarantor is not in the process of reorganization or liquidation as of the date of submission of the application for concluding a guarantee agreement; no insolvency (bankruptcy) proceedings have been initiated against him; he has no debts to pay taxes, fees, penalties and fines.

In this case, the validity period of the guarantee agreement must expire no earlier than 10 months from the date of filing the declaration in which the amount of tax to be reimbursed is declared, and must not exceed one year from the date of conclusion of the guarantee agreement (subclause 1, clause 4.1, article 176.1 of the Tax Code as amended, valid from July 1, 2021

Thus, from 2021, a taxpayer who wants to refund VAT in an accelerated manner can use the services of a guarantor organization in the non-banking sector (meeting the requirements established by Article 176.1 of the Tax Code of the Russian Federation). To exercise this right, the surety agreement must be concluded no earlier than July 2017.

Making changes to the Tax Code is a natural and constant process. Often the entry into force of new tax rules causes questions and doubts. But don't lose optimism. The SPS Consultant Plus system will help you navigate the innovations and provide you with all the necessary information.

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Preferential VAT rates: new and old users

Rail transportation of passengers and baggage in any direction will be subject to a zero value added tax rate. The benefit provided for by Federal Law No. 401-FZ of November 30, 2016 will last 13 years – from January 1, 2021 to January 1, 2030.

Another amendment relating to the amount of VAT rates is contained in Decree of the Government of the Russian Federation dated December 17, 2016 N 1377. This document updates the list of food products to which the tax rate reduced to 10% is applied. We are talking about such food products as livestock and poultry in live weight, meat and meat products, milk and dairy products, eggs, vegetable oil, salt, sugar, bread and bakery products, cereals, flour, pasta, seafood and fish products, vegetables . New items include mushrooms and truffles, asparagus, garlic, rutabaga, and turnips.

Changes to the VAT rate

The number of organizations that will be able to pay VAT at a rate of 10% from 2021 has increased. A 10% tax is now paid by companies selling periodical literature, namely:

• collections;
• magazines;
• newsletters;
• much more.

The only exceptions will be advertising publications, the share of paid content in which exceeds 45% of the volume of the publication. Until the beginning of 2021, the share was 40%.

From this year, long-distance rail freight and passenger transportation across the country is subject to a zero VAT rate. Previously, such transportation was subject to a 10% tax. Confirming the zero rate, carriers submit a unified register of transportation documents to the tax authorities. It requires you to indicate:

• places of departure and destination;
• transportation cost;
• serial numbers of transportation documents;
• price for services.

In connection with this innovation, the question arises as to whether it is possible to deduct tax on tickets purchased by employees last year for a business trip this year. After consulting with tax inspectors, it turned out that the organization has the right to claim a deduction, because the new resolution was not yet in effect at the time of purchasing the tickets.

Amendments to the VAT return have been approved. The VAT return will change.

This year, taxpayers will be offered a new VAT return form. The corresponding draft amendments are now at the stage of discussion and approval. It was planned that the updated version of the declaration will come into force on January 1, 2021. But the Federal Tax Service did not have time to approve the document, so it is possible that you will have to report according to the new rules based on the results of the first quarter of this year, and for 2021 you must submit the form approved by Order of the Federal Tax Service of Russia dated October 29, 2014 N ММВ-7-3/ [email protected]

As the St. Petersburg Legal Portal has already said, the new declaration will update:

• Section 3 “Calculation of the amount of tax payable to the budget for transactions taxed at the tax rates provided for in paragraphs 2 - 4 of Article 164 of the Tax Code of the Russian Federation”;
• Section 4 “Calculation of the amount of tax on transactions for the sale of goods (works, services), the validity of applying a tax rate of 0 percent for which is documented”;
• Section 6 “Calculation of the amount of tax on transactions involving the sale of goods (works, services), the validity of applying a tax rate of 0 percent for which is not documented”;
• Section 9 “Information from the sales book on transactions reflected for the expired tax period”;
• some other norms provided for by the Procedure for filling out a VAT return.

These are the main changes to VAT planned for 2021, which entrepreneurs operating in Russia need to know about. What amendments have we forgotten about? Write in the comments to this material, and we will definitely add detailed information about the innovations that have entered into force or are planned for the current year.

What is KBK and what do the numbers in it mean?

The budget classification code or BCC is one of the mandatory details that are entered by payers making payments to the state budget. BCC is indicated in the payment order (field 104).

The KBK system is approved by Russian legislation for the purpose of conducting payments in the state treasury. The numbers in the budget classification codes help tellers of banks and other institutions to credit payments to the accounts of those organizations specified in the payment order.

Thanks to these numbers, the tellers transfer money to the organization whose details are indicated in the payment documents. BCCs have the following format: XXX X XX XXXXX XX XXXX XXX . Budget classification codes contain 20 digits.

Let us give in the table an example of decoding the BCC for VAT on imports for Belarus and Kazakhstan - 182 1 0400 110

Filling out a VAT payment order should be taken seriously. All responsibility for correctly filling out the payment form lies entirely with the taxpayer.

If the BCC is filled out incorrectly in the payment order, the money will not be credited to the recipient's account. They may be stuck with uncertain payments, and this, in turn, threatens with fines and penalties.