Construction of fixed assets by contract

One of the ways to receive fixed assets into an organization is their construction (manufacturing). An organization can build (manufacture) a fixed asset on its own or use the services of specialized organizations (contractors).

With the contract method of construction (manufacturing), the organization that will use the fixed asset in its activities can act either as a customer, or as a customer and investor at the same time (Parts 1–2 of Article 4 of the Law of February 25, 1999 No. 39 -FZ). The accounting procedure for operations related to the construction (manufacturing) of fixed assets depends on what functions the organization performs.

For organizations that have the right to conduct accounting in a simplified form, a special procedure for recording income and expenses is provided (Parts 4, 5, Article 6 of the Law of December 6, 2011 No. 402-FZ).

Initial cost

Fixed assets constructed by contract are accepted for accounting at their original cost (clause 7 of PBU 6/01). Include in the initial price:

amounts paid to the contractor in accordance with the contract;

amounts paid for information and consulting services related to the creation of fixed assets;

the amount of VAT claimed (if the fixed asset will not be used in activities subject to this tax);

other expenses directly related to the creation (for example, the cost of purchased materials; equipment intended for installation at the facility; costs of examining the safety of the facility, etc.).

This procedure is provided for in paragraph 8 of PBU 6/01, paragraph 5.1.1 of the Regulations approved by the Ministry of Finance of Russia dated December 30, 1993 No. 160, paragraphs 11–15 of PBU 2/2008.

A detailed list of expenses that form the initial cost of constructed (manufactured) fixed assets is given in the table.

During the operation of a fixed asset, its initial cost does not change. The exceptions are cases of completion (retrofitting), reconstruction, modernization, partial liquidation and revaluation of fixed assets. Therefore, if any costs associated with the construction (manufacturing) of an object (for example, interest on a loan) are incurred by the organization after its inclusion in fixed assets, do not change the original cost. And consider the costs as part of current expenses. This procedure follows from paragraph 14 of PBU 6/01.

VAT deduction during construction: order and procedure, documents

The construction of capital construction projects for use for production purposes can be carried out using the enterprise’s own funds and capabilities or involving contractors.

In this case, all work, from the formation of the project and estimate to the final cycle - turnkey delivery - is carried out by highly specialized specialists - professionals.

But in any situation, this event lies in the sphere of state interests.

The construction of facilities is the basis for taxation, one of the main state taxes that fill the budget.

Actually we will talk about value added tax and filling out the corresponding declaration.

And today we will consider the refund (deduction) of VAT during the construction of residential buildings, fixed assets by contract, as well as the deduction of VAT from the developer during shared construction and other cases of compensation.

General rules

So, let's look at VAT refunds for capital construction, refunds for the construction of a private house, VAT for writing off unfinished construction, and other cases of the possibility of such deductions. The production of a complex of construction and installation work in connection with the conditions for deducting VAT in modern legislation is considered as follows:

Contracting organizations. At the same time, the organization that accepts the constructed object as a fixed asset on its balance sheet also accepts the amount of VAT on construction for deduction, which the contractor presents to it.
Construction using one's own resources or in an economic way. Art. 116 of the Tax Code of the Russian Federation regulates the procedure for deducting VAT during the construction of facilities for one’s own needs. The deduction amount is formed from VAT on materials and goods purchased, services used and work performed.
Mixed construction method. The deduction is formed by the amounts presented by the involved organization, the costs of purchasing the necessary materials, goods and services, as well as those accrued in the process of carrying out the work by its own team and purchased building materials.

This video will tell you about VAT calculation in construction:

Method of purchasing building materials

The method of purchasing building materials is also important.

If the materials are provided by the contractor, then VAT is included in the cost of the work.
When transferring materials from the customer to the contractor, a separate deduction for work and materials is accepted.
In the case of the supply of building materials at the expense of the contractor, the investor deducts the consolidated VAT on work and materials.
When a customer sells building materials to a contractor, after completion of construction the customer causes VAT to be deducted from the sales volume.

No deduction possible

Both the possibility of deduction and its absence are stipulated by a number of legislative acts. Thus, it is impossible to deduct VAT in the following cases:

Clause 1 Art. 172 of the Tax Code of the Russian Federation. Payment documents that actually confirm the payment of import VAT amounts when crossing the border of the Russian Federation are missing or collected incompletely.
Clause 1 Art. 171 Tax Code of the Russian Federation. The constructed facility is not subject to transactions subject to VAT.
The development cannot be registered in accordance with Art. 172 clause 1 of the Tax Code.

We will tell you below how to get VAT benefits in construction.

This video will tell you about VAT in construction under the simplified tax system:

Required documents

In order to carry out the VAT deduction procedure, it is necessary to submit to the local tax authority an application of the established form and a package of necessary documents confirming the right to deduction. A standard application form can be found on the website of the Federal Federal Service of the Russian Federation or at the local tax authority.

The legally approved grounds for claiming VAT deduction are:

When construction is carried out by a contractor - form KS-2, which confirms the fulfillment of contractual obligations for development, completed individual installation, commissioning and other work inextricably linked with the facility.
When constructing using an economic method or a mixed method, in order to deduct VAT, you will need invoices, delivery notes and accompanying shipping documentation, bank statements with attachments in the form of payment orders for payment for materials and work, a selection of acts of work performed and estimates for services consumed.
Financial documents confirming payment of input VAT when goods cross the border of the Russian Federation.

Construction and its taxation is one of the most complex and time-consuming accounting tasks. Therefore, if you have insufficient experience, it is better for a novice accountant to resort to the services of specialized firms and bureaus.

Documenting

Determine the amount of expenses that form the initial cost of the object based on:

primary accounting documents used in construction (act of acceptance of work performed in form No. KS-2, certificate of the cost of work performed and expenses in form No. KS-3, etc.);

other primary documents confirming the costs incurred (customs declarations, business trip orders, etc.).

For registration, accept documents that contain the mandatory details provided for in Part 2 of Article 9 of the Law of December 6, 2011 No. 402-FZ.

To accept the created fixed assets, the organization should create a commission, which should determine:

whether the fixed asset meets the technical specifications and whether it can be put into operation;

whether it is necessary to bring (rework) the fixed asset to a state suitable for use.

If the organization's staff consists only of a director, do not create a commission. In this case, its functions must be assumed by the director.

This procedure follows from the instructions approved by Resolution of the State Statistics Committee of Russia dated January 21, 2003 No. 7.

After examining the object, the commission must give an opinion on the possibility of its use. This conclusion is reflected in the act in form No. OS-1.

Fill out the act in form No. OS-1 when accepting the object for accounting (at the time of reflection on account 01 “Fixed Assets” or 03 “Income Investments in Material Assets”) (paragraph 2 of the instructions approved by the Decree of the State Statistics Committee of Russia dated January 21, 2003 No. 7, Part 3, Article 9 of the Law of December 6, 2011 No. 402-FZ). Draw up the report on the basis of primary accounting documents and technical documentation attached to the construction contract.

Do not fill out the details of the donating organization, which are provided at the beginning of the act, as well as the sections “Information on the condition of the fixed asset object on the date of transfer” and “Passed over”. This is explained by the fact that for the contractor the constructed facility is not a fixed asset. Consequently, he is not obliged to draw up an act in form No. OS-1 (paragraph 8 of the instructions approved by Resolution of the State Statistics Committee of Russia dated January 21, 2003 No. 7, letter of Rosstat dated March 31, 2005 No. 01-02-09/205).

In the act in form No. OS-1, indicate:

number and date of its compilation;

full name of the fixed asset;

place of acceptance of the fixed asset;

factory and assigned inventory numbers of the fixed asset;

depreciation group number and useful life of the fixed asset;

information about the content of precious metals and stones;

other characteristics of the fixed asset (total area, number of floors, etc.).

In addition, the act must contain the conclusion of the acceptance committee (for example, the entry “Can be used”). The executed act is approved by the head of the organization.

If a building or structure was manufactured under a contract, when accepting it for registration, fill out an act in form No. OS-1a. When filling it out, apply the same rules as when drawing up form No. OS-1.

If, under a contract, fixed assets (a group of homogeneous fixed assets) other than buildings and structures were manufactured, when accepting them for accounting, fill out a report in form No. OS-1b. When filling it out, apply the same rules as when drawing up form No. OS-1.

This procedure follows from the instructions approved by Resolution of the State Statistics Committee of Russia dated January 21, 2003 No. 7.

Simultaneously with drawing up the act in form No. OS-1a (OS-1, OS-1b), fill out the inventory card in form No. OS-6a (OS-6) or the inventory book in form No. OS-6b (intended for small enterprises) in one copy. Prepare an inventory card (book) based on the data in the act and primary documents. In the future, enter into the card (book) information about all changes that affect the accounting of fixed assets (revaluation, modernization, disposal). Reflect this information on the basis of primary documents (for example, on the basis of the acceptance certificate for modernized fixed assets in form No. OS-3).

This procedure is provided for by the instructions approved by Resolution of the State Statistics Committee of Russia dated January 21, 2003 No. 7.

Situation: is it necessary, in addition to form No. KS-14, to also draw up form No. OS-3? The organization carried out technical re-equipment of production buildings, the acceptance committee drew up only an act in form No. KS-14.

Answer: yes, it is necessary.

Form No. KS-14 indicates that the customer accepted the work that the contractor performed for him, that is, the construction of the facility is completed. This act provides general information about who carried out the work at the site, indicates the author of the design and estimate documentation, and the cost of the order. The commission’s conclusion on the condition of the fixed asset is also given here. This conclusion can be drawn from the instructions for filling out the KS-14 form, approved by Resolution of the State Statistics Committee of Russia dated October 30, 1997 No. 71a.

Form No. OS-3 reflects other information: on the condition of objects before repairs (reconstruction, etc.), data on the costs of reconstruction or modernization. As well as the conclusion of the commission that carried out the acceptance and transfer of the fixed asset. In form No. OS-3, they record whether the restoration work has been completed and list the changes that have occurred. This follows from the instructions for filling out form No. OS-3, approved by Resolution of the State Statistics Committee of Russia dated January 21, 2003 No. 7.

Thus, Act No. OS-3 is a document on the basis of which the initial cost of a fixed asset increases after reconstruction or modernization.

Therefore, it is necessary to draw up both Form No. KS-14 and Form No. OS-3.

Attention: the absence (failure to submit) primary documents for accounting for fixed assets is an offense (Article 106 of the Tax Code of the Russian Federation, Article 2.1 of the Code of Administrative Offenses of the Russian Federation), for which tax and administrative liability is provided.

VAT by contract method

VAT based on invoices issued by the customer If the customer and the investor are different organizations, the tax deduction is carried out by the investor based on the invoices presented by the customer.

The customer, in turn, draws up invoices based on the documents presented by the contractor.

Clause 6 of Article 171 of the Tax Code establishes that tax amounts presented by contractors and customer-developers when carrying out capital construction work are deducted.

The deduction is carried out in the usual manner on the basis of received invoices after the work has been accepted for accounting. VAT deduction is possible only after the object has been accepted for accounting. Thus, the contractor issues invoices to the customer for its work. Based on them, the customer issues invoices for the investor.

VAT on the construction of fixed assets in 2021

Further, Article 753 “Deliverance and acceptance of work” states that the customer begins acceptance of work from the moment he receives a message from the contractor about readiness for handover of the object.

In the event that the customer accepts individual stages of work, the risk of accidental death passes to him if the damage and death did not occur through the fault of the contractor.

Article 746 of the Code establishes the procedure for settlements between the parties, when payment for contract work is made in the amount specified in the estimate and in the manner established by the contract, or, if this is not provided for in the contract, in accordance with the legally established procedure.

Analyzing the norms of civil legislation, we come to the conclusion that either stages of completed work or a finished building after the final completion of capital construction can be transferred under the act.

Procedure for VAT refund during construction

Important Value added tax paid to the seller can be reimbursed in the following way:

at the time of the transaction under the purchase and sale agreement;
after completion of construction, commissioning of the asset and depreciation.

When a commercial organization, to complete the construction of fixed assets, involved contracting companies, and also purchased various materials, then VAT will be reimbursed after the first depreciation charges are reflected in the accounting and tax records.

Reimbursement by the investor Commercial organizations that are engaged in various investment projects have the opportunity to reimburse the paid value added tax from the state budget.

What is the procedure for accounting and deducting VAT during the construction of fixed assets?

Experts from the Ministry of Finance recommend that customers, when preparing invoices, separately highlight in the document the cost of construction and installation work for each contractor and the cost of construction materials and goods separately for each supplier.

At the same time, the customer attaches to the invoice transferred to the investor copies of the invoices on the basis of which it was compiled, as well as copies of all primary documents confirming the amounts indicated in the invoices and copies of documents confirming payment of tax amounts to the customs authorities, if any importation of materials or goods into Russia.

copies of the contractor's invoices and primary documents are attached to the invoice. The customer transfers the invoice to the investor once either at the time or within five days after the transfer of the building or other object for which capital construction has been completed to the investor's balance sheet.

VAT for the construction of fixed assets by contract and economic methods

But, if an organization simply made repairs in its office, then these works are not included in the taxation. An organization, having carried out construction and installation works on its own at its own facility which it will use in its activities, can claim the amount of VAT for deduction (clause 5 of Art.

172 Tax Code of the Russian Federation), accrued on the cost of work performed and registered in the purchase book, the basis for this will be the issued invoice. Let's also consider a situation where a company builds a facility for itself under a contract method and engages an individual as a performer under a civil law agreement.

When submitting documents for desk audit, these services were highlighted (debit 08 credit 76). The inspectors demanded that VAT be charged.

VAT during construction - calculation and deduction procedure

Attention: Distribution of risk between the parties” of the Civil Code of the Russian Federation, the contractor bears the risk of accidental loss or accidental damage to a construction project that is the subject of a construction contract until acceptance of this project by the customer.

Article 753 “Delivery and acceptance of work” stipulates that the customer, having received the contractor’s message about the readiness for delivery of the result of the work performed under the construction contract or, if provided for by the contract, the completed stage of work, is obliged to immediately begin accepting it.

The customer, who has previously accepted the result of a separate stage of work, bears the risk of the consequences of death or damage to the result of work, which did not occur through the fault of the contractor. The procedure for payment for work is established by Art. 746 of the Civil Code of the Russian Federation.

VAT deductions for capital construction

One of the options for acquiring fixed assets for an organization is their construction and construction, both economically and through the involvement of contractors.

In a situation where an enterprise erects buildings and structures on its own for further use and independently carries out construction and installation works, the organization is obliged to charge VAT on the cost of work performed at the end of each tax period, or rather each quarter, then issue an invoice and register it in the sales book in accordance with subclause 1.3 clause 1 of article 146 of the Tax Code of the Russian Federation. is included in the VAT tax base at the time of the act of acceptance of the transfer of the object to another person.

VAT contract construction

In accordance with this standard, payment for work performed by the contractor is made by the customer in the amount provided for in the estimate, within the time frame and in the manner established by law or the construction contract. In the absence of appropriate instructions in the law or contract, payment for work is made in accordance with Art.

711 »

Procedure for payment for work" of the Civil Code of the Russian Federation. A construction contract may provide for payment for work at a time and in full after acceptance of the project by the customer. Based on the stated norms of the Civil Code of the Russian Federation, it is concluded that the contractor transfers the work performed under the act either in stages, or after completion of construction of the facility as a whole.

Accordingly, invoices that entitle the investor to deductions are issued either as stages are completed or upon completion of the entire construction.

Source: https://redtailer.ru/nds-podryadnym-sposobom/

Accounting: cost reflection

In accounting, all costs associated with the construction (manufacturing) of an object (the cost of the contractor’s work, materials consumed, equipment transferred for installation at the site, etc.) are reflected in account 08-3 “Construction of fixed assets”. In this case, make the following entries:

Debit 08-3 Credit 60 (76)

– the cost of contract work for the construction of fixed assets is reflected (based on forms No. KS-2 and No. KS-3);

Debit 08-3 Credit 07

– reflects the cost of equipment transferred for installation to the contractor in the facility under construction;

Debit 08-3 Credit 23 (25, 26, 70, 76...)

– reflect other costs associated with bringing the object to a state suitable for use;

Debit 19 Credit 60 (76)

– VAT charged by the contractor is reflected, as well as on other costs associated with the creation of a fixed asset.

Situation: how to reflect the cost of construction work performed by a contractor in accounting? The construction contract provides for phased delivery of work.

The construction contract may provide for phased delivery of work (Articles 740 and 753 of the Civil Code of the Russian Federation). This means that as each stage is completed, the organization and the contractor must sign an act in form No. KS-2 and a certificate in form No. KS-3. Such rules follow from the instructions approved by Resolution of the State Statistics Committee of Russia dated November 11, 1999 No. 100.

At the moment when the act is signed, include the cost of the completed stage in the capital investments for the construction (manufacturing) of the fixed asset. That is, take into account account 08 “Investments in non-current assets”. This follows from the Instructions for the chart of accounts.

At this moment (subject to other conditions required for deduction), the input VAT presented by the contractor upon completion of this stage can be deducted (clauses 1 and 6 of Article 171, clauses 1 and 5 of Article 172 of the Tax Code of the Russian Federation, letters from the Ministry of Finance Russia dated March 5, 2009 No. 03-07-11/52, dated February 19, 2007 No. 03-07-10/06).

Include the finished object in fixed assets upon completion of the last stage of construction (manufacturing) (Instructions for the chart of accounts). In this case, draw up an act in form No. OS-1a (OS-1, OS-1b) (Part 1 of Article 9 of Law No. 402-FZ of December 6, 2011, instructions approved by the Resolution of the State Statistics Committee of Russia of January 21, 2003. No. 7).

Situation: how to reflect in accounting the cost of own materials transferred to the contractor for the construction (manufacturing) of a fixed asset?

In accounting, the cost of materials purchased for use in the construction (manufacturing) of a fixed asset is included in its initial cost. In this case, only those materials that are actually used can be included in the initial cost. This procedure follows from paragraph 8 of PBU 6/01.

The mere transfer of materials to the contractor does not mean that all of them were used in construction. Therefore, it is impossible to include the cost of all transferred materials in the initial cost of the object. You need to know how much materials were actually consumed. This information may be reflected in the contractor's report. There is no standard template for such a report, so it can be compiled in any form. The main thing is that it contains the mandatory details specified in Part 2 of Article 9 of the Law of December 6, 2011 No. 402-FZ. The contractor's obligation to prepare such reports, as well as the frequency of their submission, should be stipulated in the contract. The right to demand the organization’s reports from the contractor is given by Part 1 of Article 748 of the Civil Code of the Russian Federation, according to which the customer can control, among other things, the contractor’s use of the materials transferred to him.

In accounting, the receipt of materials purchased for use in construction (manufacturing) is reflected in account 10-8 “Building materials”. When transferring materials to the contractor, transfer their cost to account 10-7 “Materials transferred for external processing”:

Debit 10-7 Credit 10-8

– reflects the cost of materials transferred to the contractor for the construction of the facility.

This procedure is provided for in paragraph 157 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n.

After the contractor submits a report on the materials used, include their cost in the costs that form the initial cost of the facility under construction:

Debit 08-3 Credit 10-7

– reflects the cost of materials spent on the construction of the facility.

This procedure is provided for in the Instructions for the chart of accounts.

Situation: how can a developer reflect in accounting the transfer of an unfinished construction project to conservation?

The decision to mothball an unfinished facility is made by the head of the organization (which is the construction developer). It is formalized by an order (instruction) in any form. In this document, indicate the time frame within which the documentation necessary to carry out the work and ensure the safety of equipment, structures and materials at the site will be prepared. An order for the conservation of an unfinished construction object is issued in the same way as an order for the conservation of a fixed asset object. Notify the contractor of your decision.

During conservation, an inventory of unfinished construction is carried out (clause 26 of the Regulations on Accounting and Reporting). The procedure for its implementation is established by paragraphs 3.32–3.35 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated June 13, 1995 No. 49. For unfinished capital construction, the inventories indicate the name of the object and the volume of work performed on this object, for each individual type of work, structural elements, equipment, etc. Inventory is carried out through control measurements. At the same time, the actual volumes of construction and installation work performed must be compared with the data of local estimates, as well as with the accounting data of the developer and contractor. After the inventory, the developer accepts from the contractor mothballed objects, as well as material assets that the contractor cannot use in the construction of other objects. For more information on conducting an inventory, see How to conduct an inventory.

After this, the parties must sign:

estimates for work related to conservation and construction safety;

act on suspension of construction in form No. KS-17 (approved by Resolution of the State Statistics Committee of Russia dated November 11, 1999 No. 100).

This procedure is confirmed by the letter of the USSR State Construction Committee dated August 18, 1986 No. 61-D.

A design organization is engaged to develop an estimate for the conservation and protection of a construction site. According to this estimate, the contractor performs construction and installation work on the basis of an additional agreement to the general contract. The developer pays the contractor for all work performed and costs associated with conservation. These rules follow from the provisions of Articles 452, 740, 752 of the Civil Code of the Russian Federation, paragraph 17.10 of the Methodological Recommendations, approved by Protocol No. 12 of January 5, 1999.

The costs associated with the conservation of an unfinished construction project, including the costs of its maintenance, should not be included in the cost of construction. Such costs in accounting form other expenses of the customer (clause 14 of PBU 2/2008). Reflect them on account 91 “Other income and expenses”. This procedure follows from paragraph 11 of PBU 10/99, Instructions for the chart of accounts (account 91) and letter of the Ministry of Finance of Russia dated January 13, 2003 No. 16-00-14/7.

In accounting, reflect this operation by posting:

Debit 91-2 Credit 10 (23, 60, 68, 69, 70...)

– the costs of conservation and maintenance of mothballed property are taken into account.

For the convenience of tracking information about the condition of the property for account 08, open a separate sub-account - “Objects of unfinished construction under conservation.” This approach is consistent with the Instructions for the chart of accounts (account 08).

Reflect the transfer to mothballing of an unfinished construction project by posting:

Debit 08 subaccount “Unfinished construction objects under conservation” Credit 08 subaccount “Construction of fixed assets”

– an unfinished construction site was transferred for conservation.

An example of reflecting the costs of conservation of an unfinished construction project in a developer’s accounting

Last year, Alpha LLC (developer) entered into an agreement with Proizvodstvennaya LLC (contractor) for the construction of an office for a period of two years. This year, construction has been stopped due to a lack of funds to cover costs. At the time of construction termination, the total cost of the work performed was RUB 1,852,000.

For the development of an estimate for the conservation of the facility, Alpha paid the design organization 11,800 rubles. (including VAT (18%) - 1800 rubles).

An additional agreement was concluded with “Master” to carry out conservation work. The “Master’s” expenses for these works amounted to 118,000 rubles. (including VAT (18%) - 18,000 rubles). Alfa bears monthly expenses for the maintenance of the mothballed facility in the amount of 50,000 rubles. (watchman's salary including insurance premiums).

To make it easier to track information about the condition of property, Alpha’s accountant opened separate sub-accounts for account 08:

“Object of unfinished construction under conservation”;
"Construction of fixed assets."

This year, the accountant made the following entries in the accounts:

Debit 08 subaccount “Object of construction in progress” Credit 08 “Construction of fixed assets” – 1,852,000 rubles. – the unfinished office building was transferred for conservation;

Debit 91-2 Credit 60 – 10,000 rub. (RUB 11,800 – RUB 1,800) – reflects the costs of preparing estimate documentation for the conservation of the office building;

Debit 19 Credit 60 – 1800 rub. – VAT is taken into account on the amount of costs for preparing estimate documentation;

Debit 91-2 Credit 60 – 100,000 rub. (RUB 118,000 – RUB 18,000) – reflects the costs of paying the contractor for the conservation of the office building;

Debit 19 Credit 60 – 18,000 rub. – VAT is taken into account on the cost of the contractor’s work on conservation of construction;

Debit 60 Credit 51 – 129,800 rub. (RUB 11,800 + RUB 118,000) – bills of the design organization and contractor have been paid;

Debit 91-2 Credit 70 (69) – 50,000 rub. – the salaries of the guards guarding the mothballed facility were accrued, as well as contributions for compulsory pension (social, medical) insurance and contributions for insurance against accidents and occupational diseases from it.

VAT for the construction of fixed assets by contract

Deduction of VAT in construction Procedure for calculating VAT during construction and installation works To calculate VAT when performing construction and installation work for the taxpayer’s own consumption, the following steps are performed sequentially:

The tax base for completed construction and installation works is calculated.
The tax period in which VAT must be calculated and the tax amount must be calculated is determined.
An invoice is drawn up for the cost of construction and installation work performed.
The amount of VAT on purchased materials, works, services necessary to carry out construction and installation work, and the amount of VAT accrued on the volume of construction and installation work performed are subject to deduction.
A completed VAT return is submitted to the tax authority.
Tax is paid to the budget if the declaration reflects the amount of VAT payable.

Determination of the tax base for VAT during construction and installation work The tax base for VAT during construction and installation work is determined as the cost of this work.

VAT on construction of fixed assets

Attention A natural question arises: does the contractor include the received compensation amounts in the VAT tax base? Financiers express an unambiguous opinion on this matter; the contractor charges VAT on the amounts received as reimbursement of expenses (see.

letter No. 03-07-11/300 dated August 15, 2012). In fact, by issuing invoices for reimbursement of additional expenses, the contractor acts as a seller; the reimbursement amounts received must be included in income and charged VAT at the rate of 18/118, in accordance with paragraph 4 of Art. 164 Tax Code of the Russian Federation.

In this case, the organization deducts the amounts of input VAT on additional expenses in the usual manner. See letters of the Ministry of Finance No. 03-07-11/37 dated March 2, 2010, No. 03-07-11/37 dated February 26, 2010 and others.

And so, receipts in the form of reimbursements and other additional expenses are also subject to inclusion in the VAT tax base.

VAT for the construction of fixed assets 2021: posting VAT deductions

In turn, the investor, after accepting the work for accounting, accepts VAT as a deduction. Completion of capital construction and the procedure for issuing invoices And so, having completed the capital construction of an object, the customer organization transfers the completed construction object, for example, a building, to the investor.

The customer, after transferring to the investor a building or other object on which construction work has been completed, issues an invoice in accordance with the generally established procedure.

The customer prepares the invoice on the basis of invoices received from contractors for construction and installation work performed by them, and on the basis of invoices received from suppliers when purchasing construction materials.

Procedure for joining the self-regulatory organization

The data on the amount of input VAT on goods (work, services) purchased for construction and installation work, and the amount of tax presented by contractors, are necessary to calculate the indicator on line 120 of section. 3 VAT declaration forms (paragraph 6, clause 38.11 of the procedure for filling out the declaration, approved.

by order of the Federal Tax Service of Russia dated October 29, 2014 No. ММВ-7-3/). It is necessary to deduct VAT, which was accrued on the amount of expenses incurred during the construction of a fixed asset using one’s own resources, on the last day of the tax period at the time the tax base is determined.

This procedure for accepting deductions is established in paragraph. 3 paragraph 6 art. 171 and para. 2 clause 5 art. 172 of the Tax Code of the Russian Federation. Thus, VAT on completed construction work can be claimed for deduction in the same quarter in which it was accrued for payment to the budget (letter of the Federal Tax Service of Russia dated March 23.

2009 No. ШС-22-3/).

VAT for contract construction of fixed assets

To do this, taxpayers must fulfill a number of conditions:

have correctly executed expense documents;
put into operation fixed assets and charge depreciation on them;
the erected buildings must be used in the economic activities of a commercial organization and cannot be used for their own needs.

Compensation for shared construction The legislation in force in the Russian Federation allows shareholders to transfer building materials to developers (for the construction of a private house) on a toll basis.

Since 2001, Russian commercial companies have been able to assign all amounts of value added tax paid on materials received for construction work to expenses. In accordance with Art.

Accounting: acceptance of ready-made objects for accounting

Reflect the acceptance of ready-made objects for accounting on account 01 “Fixed Assets” or account 03 “Profitable Investments in Material Assets”, to which open the subaccounts “Fixed Assets in Warehouse (In Stock)” and “Fixed Assets in Operation”. If the time of registration of a fixed asset and its commissioning coincides, make the following entry:

Debit 01 (03) subaccount “Fixed assets in operation” Credit 08-3

– the created fixed asset was accepted for accounting and put into operation at its original cost.

If the moments of registering a fixed asset and its putting into operation do not coincide, make the following posting:

Debit 01 (03) subaccount “Fixed asset in warehouse (in stock)” Credit 08-3

– the created object is taken into account as part of fixed assets at its original cost.

This procedure is provided for in paragraph 20 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated October 13, 2003 No. 91n, and the Instructions for the chart of accounts.