Gifts for contractors for the New Year: what documents to prepare

Who can I give a gift to?

Most commercial organizations in their activities are faced with the need for gifts for their employees, business partners, and third parties. But according to the law, a company cannot make a gift to any person; there are certain restrictions in this matter.

You cannot give anything:

• state and municipal employees;
• commercial enterprises;
• employees of medical and educational institutions, enterprises providing social services;
• other categories of recipients in accordance with Article 575 of the Civil Code of the Russian Federation.

How to properly formalize a donation

Before purchasing anything to give as a gift, you should make a list of people for whom the gift is planned. Gifts for employees of an organization will differ from gifts intended for business partners or clients of the company. Therefore, the next step will be to draw up a cost estimate for gifts, which will reflect the types and costs of all gifts.

After the preliminary expenses for this item have been calculated, the head of the organization must issue an order with the obligatory indication in it:

• persons responsible for organizing gifts;
• delivery deadlines;
• cost of gifts.

The purchase of gifts is formalized by a sales contract with the seller. The purchase must be confirmed by primary documents such as invoice, check, acceptance certificate.

Are gifts always subject to VAT?

Donation involves the gratuitous transfer of the thing serving as a gift to the donee. And for the purposes of applying VAT, a gratuitous transfer is equated to a sale and is recognized as subject to taxation by this tax (subclause 1, clause 1, article 146 of the Tax Code of the Russian Federation).

The moment of sale (tax accrual) coincides with the moment of transfer of the gift and is issued with an invoice for shipment, which must be drawn up no later than 5 calendar days from the date of transfer of the gift (clause 3 of Article 168 of the Tax Code of the Russian Federation). The tax is calculated on the market value of the gift without taking into account excise taxes and VAT (clause 2 of Article 154 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance of the Russian Federation dated July 12, 2019 No. 03-07-11/51818).

But VAT is not always charged on gifts. Exceptions are situations when:

• The gift is given by a VAT evader.

Non-payers include organizations and individual entrepreneurs exempt from paying tax under Art. 145 and 145.1 of the Tax Code of the Russian Federation, as well as those operating in special modes (USN, UTII, PSN).

• The gift is made for advertising purposes and its value does not exceed 100 rubles. (Subclause 25, Clause 3, Article 149 of the Tax Code of the Russian Federation).

A gift becomes an advertisement when it is not intended for a specific person and there is an indication of an item (a product, its manufacturer or seller) that should attract the attention of the recipient (clauses 1, 2, article 3 of the Law “On Advertising” dated March 13, 2006 No. 38 -FZ).

Tax accounting of expenses for gifts

Let's look at the procedure for tax accounting for expenses on gifts using a conditional example. The company purchased 200 notebooks depicting its symbols for a total amount of 23,600 rubles (including VAT 3,600 rubles) to hand them over to its clients. How to reflect these transactions in tax accounting?

From a legal point of view, the provision of gifts by a commercial enterprise to its customers is regarded as a gratuitous transfer . Therefore, VAT in the amount of 3,600 rubles is charged on the cost of the gift, which is subsequently subject to offset. It should be noted that the cost of gifts (20,000 rubles) cannot be recognized as an expense to determine the amount of income tax. It does not matter to whom the gifts were given.

When calculating income tax, it is necessary to take into account the need to tax income in the form of a gift, the value of which exceeds 4,000 rubles. Exceeding the value of the gift entails the obligation of the donor company to submit a declaration f. to the tax service. 2-NDFL.

Free transfer

In accordance with the norms of tax legislation, the gratuitous transfer of gifts is equated to sale, so VAT must be charged (clause 1 of Article 39, subclause 1 of clause 1 of Article 146, clause 1 of Article 167 of the Tax Code of the Russian Federation). The amount of tax must be calculated based on the market price of the transferred gift, determined according to the rules of Chapter 14.2 of the Tax Code of the Russian Federation.

One invoice is issued for all gifts. In lines 6 “Buyer”, 6a “Address” and 6b “TIN/KPP of the buyer” you need to put dashes. The document must be drawn up no later than 5 days from the date of transfer of gifts. The issued invoice must be registered in the sales book (clauses 1, 3 of Section II of Appendix 5 to Government Resolution No. 1137 dated December 26, 2011).

Accordingly, the input tax presented by the supplier can be taken as a deduction, since the purchased gifts are used in activities subject to VAT (subclause 1, clause 2, article 171 of the Tax Code of the Russian Federation).

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10.12.2017

How to account for gifts to employees in the form of alcoholic beverages and food packages

Many domestic employers practice giving alcoholic beverages (champagne or stronger versions) to their employees on holidays, such as the New Year. The costs of their acquisition can be documented as expenses for organizing an official reception, i.e. entertainment expenses. The presentation of such gifts requires the execution of an order and an estimate for the reception.

The amount of such expenses is limited and cannot exceed 4% of labor costs in the reporting period.

Gifts for company employees may include food products, such as tea, coffee, and sweets. In this case, the costs of their acquisition can be reflected in different ways. If it is possible to personalize the recipient of the gift, then in this case the employer becomes obligated to withhold personal income tax.

The economic benefit of recipients, if they cannot be identified, cannot be determined, therefore, income tax on gifts in the form of food baskets cannot be withheld. However, such a situation may lead to a dispute with the tax authorities during an audit. Costs incurred when purchasing food products for gifts to employees can be taken into account as expenses for their food.

Any items with a company logo or symbols intended for transfer to an indefinite number of counterparties can be taken into account as part of advertising expenses. The purpose of such gifts is to stimulate interest in the company and its products (works or services). Typically, advertising costs take into account the costs of calendars, T-shirts, mugs, planners and similar overtly promotional products.

As for documenting gifts to contractors for the New Year, the company must have the following documents:

• internal regulations on advertising (marketing policy) or a plan of advertising activities, approved by order of the director;
• order for the distribution of advertising materials.

Gifts for business partners

Accounting for expenses for gifts to business partners depends on the method of documenting them and the sources from which they were financed. Gifts can be formalized as a gratuitous transfer at the expense of the net profit of the donor legal entity. The cost of purchasing gifts is not included in income tax expenses.

Since a gratuitous transfer is considered a sale under the law, the cost of gifts is subject to VAT. You can formalize the delivery of a gift to partners by deed. You can reflect the costs of gifts to partners as entertainment expenses if the following conditions are met:

• during the period when the gifts were given, the donor actually held some official receptions;
• documents for holding receptions and making entertainment expenses are drawn up in accordance with the requirements of the law.

How to take into account prizes and gifts for clients?

Verstakova E.V., practicing accountant

Prize drawings can rightfully be called one of the most effective ways to attract customers in any business. Moreover, the prize can be both household goods and expensive items, such as a car or an apartment.

Providing incentives (sweepstakes or contests) or drawings is one way to ensure sales growth. An event participant - a buyer - gets the opportunity to participate in a competition, the winners of which receive prizes, or in a prize draw for an incentive lottery or promotion.

The conduct of incentive lotteries is regulated by Law No. 138-FZ “On Lotteries” and requires the organization to comply with certain conditions and requirements. The holding of incentive competitions or other promotions is not subject to the Law “On Lotteries”.

Accounting for the awarding of prizes for “simplified” has its own characteristics, including in terms of writing off costs. But even in the first steps, things don’t always go smoothly.

Accounting for future prizes

According to PBU 10/99, costs for the purchase of prizes not related to the production and sale of goods, works, services should be recognized in accounting as other expenses and reflected in the debit of account 91 “Other income and expenses” with the following entries:

The gift itself is not taken into account on the balance sheet, but is written off immediately to other expenses, so when the gift is given, there are no transactions associated with its disposal. The fact is that it is impossible to account for gifts initially as purchased goods or low-value items in accounts 41 or 10. Paragraph 2 of PBU 5/01 states that assets used as raw materials, materials, etc. in the production of products intended for sale (performance of work, provision of services) are accepted for accounting purposes as inventories. Since it is known from the very beginning that the goods are not intended for sale, they are immediately credited to account 91.2.

GOOD TO KNOW

If the promotion is promotional in nature, the cost of gifts can be taken into account as advertising expenses.

There are opinions that prizes purchased to be awarded to the winners of the drawing can be taken into account as part of inventories as goods at actual cost. In this case, different interpretations of the same PBU 5/01 arise.

Since gifts must also be taken into account before they are delivered, the accountant makes an entry in the off-balance sheet account:

Debit 012 – future prizes are taken into account. When prizes are awarded, these goods are written off using Credit 012.

Tax accounting of future prizes

From the closed list of “simplified” expenses established by Art. 346.16 of the Tax Code of the Russian Federation, the most suitable for accounting for the costs of purchasing prizes are advertising expenses. But they reduce the income received in the manner prescribed by Art. 264 of the Tax Code of the Russian Federation, that is, no more than 1% of the profit received from the provision of services. Therefore, if a company distributes or gives away prizes to an unlimited number of people, then it can take into account the costs associated with the promotion within the established limit. If a “gift” event is held among regular customers, then it will not be possible to take into account the costs of purchasing prizes as advertising. It is hardly possible to take into account such expenses on other grounds (for example, as material), since they do not meet the criterion of economic justification, which also applies to the expenses of the “simplified” (clause 2 of Article 346.16 of the Tax Code of the Russian Federation).

GOOD TO KNOW

Advertising expenses, depending on their type, can be standardized or accepted in full.

Personal income tax

Winnings received by an individual are taxed at a tax rate of 35% (clause 2 of Article 224 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated October 30, 2013 No. 03-04-05/46287).

At the same time, as we said above, based on para. 6 paragraph 28 art. 217 of the Tax Code of the Russian Federation, the cost of any winnings and prizes received in competitions, games and other events for the purpose of advertising goods (work, services) is not subject to personal income tax if their value does not exceed 4,000 rubles. Thus, winnings received by an individual are taxed at a rate of 35% in an amount exceeding 4,000 rubles.

In relation to winnings transferred to individuals, the organization is a tax agent (letter of the Ministry of Finance of Russia dated August 22, 2013 No. 03-04-06/34518).

If the winnings are given in kind and the organization does not have the opportunity to withhold personal income tax, the taxpayer must independently calculate and pay the amount of tax on the value of the winnings received in excess of 4,000 rubles. (Clause 4, Clause 1, Article 228 of the Tax Code of the Russian Federation). In this case, the tax agent is obliged, no later than one month from the date of the end of the tax period in which the corresponding obligations arose, to inform the taxpayer and the tax authority at the place of his registration in writing about the impossibility of withholding the tax and about the amount of the tax (clause 5 of Article 226 of the Tax Code of the Russian Federation).

ORIGINAL SOURCE

Under a gift agreement, one party (the donor) gratuitously transfers or undertakes to transfer to the other party (the donee) an item of ownership or a property right (claim) to himself or to a third party, or releases or undertakes to release it from a property obligation to himself or to a third party.

Clause 1 of Art. 572 of the Civil Code of the Russian Federation.

The recipient of the gift must also be warned about this, since he, in turn, must submit a declaration to the tax office in form 3-NDFL.

Documenting

The drawing of prizes and gifts must be documented, like any operation. Otherwise, this drawing will not be considered a promotion and the transfer of prizes will be considered a gratuitous transfer and will be subject to taxes. In this case, we are talking specifically about a drawing, and not about a lottery (to conduct a drawing in the form of a lottery, mandatory state registration of the lottery is required). It is necessary to issue an order to carry out an advertising campaign. The order specifies the terms, conditions for the drawing, gifts for the winners and the conditions for receiving them. In addition, as with any order, it is necessary to justify the reason for the order, for example, the order may sound like this:

Alpha LLC

Saratov

01.09.2014

Order No. 10

In order to increase sales volume and attract new customers, I order:

1. Conduct an advertising campaign about the upcoming car draw.
2. Prepare a plan and procedure for conducting the draw.
3. Hold the draw on September 25, 2014.
4. Appoint PR manager I. I. Ivanov as responsible.
5. I reserve control over the implementation of this order.

General Director of Alpha LLC _____P e tr o v_________ /P. I. Petrov/

M.P. (organization seal)

If promotions are carried out repeatedly, the manager can approve the Regulations on Marketing Policy, where one of the sections will be devoted to ongoing promotions. In addition, the manager needs to approve a plan (or program) for the event, which will accurately describe the conditions for issuing gifts, time, place, procedure for determining the winners, the beginning of the promotion as a whole and its end.

In order to confirm in accounting the expenses for prizes, gifts and the actual conduct of the drawing, it is necessary to collect all documents justifying the expenses. For example, if information about the upcoming drawing was published in the media, then the supporting document will be an act of services rendered, for example, newspapers and the newspaper itself with confirmation of the advertisement given in it. If the promotion was advertised on billboards - an act of services rendered and a photo report; if there was a promotion - an acceptance certificate for services, an estimate for promotions, a schedule of events, photo reports, etc.

IMPORTANT IN WORK

If the provision of goods subject to the buyer fulfilling certain conditions is part of the seller’s marketing strategy, then the transfer of individual goods will not be considered free of charge in accordance with paragraph 1 of Art. 572 of the Civil Code of the Russian Federation.

In addition, gifts and prizes are not given out just like that. It is necessary to draw up invoices for the release of distributed valuables or acts of transfer of goods, which indicate the value of the prize and information about the recipient.

Based on the results of the drawing, a report is compiled. It sums up the results of the promotional campaign, the number of gifts issued, cost, recipients and other information.

In order to avoid claims from the tax authorities that these expenses are not recognized as advertising, but are recognized as the free distribution of goods, you can conduct preliminary advertising of the upcoming promotion, or at least place an advertisement about the event.

GOOD TO KNOW

Expenses, depending on their nature, as well as the conditions of implementation and areas of activity of the taxpayer, are divided into expenses associated with production and sales, and non-operating expenses.

Reflection of transactions in the Income and Expense Book

The cost of prizes and gifts must be reflected in the Income and Expense Book. The date of recognition of expenses for prize drawings is the later of the following dates: the date of payment or the date of signing the act of conducting an advertising campaign (or the date of payment for goods to the supplier or the date of transfer of promotional goods to recipients).

Fragment from KUDR: