Specifics of accounting for organizations (IPs) involved in the car service system

How to reflect car engine overhaul in accounting

Date of publication 07/29/2019
Due to a breakdown of the engine in the car, the organization purchased and installed a new engine in the car at a cost of RUB 126,000.00. (including VAT 20% – RUB 21,000.00). How to reflect an engine replacement operation in accounting and tax accounting?

To reflect in accounting and tax accounting operations to replace a car engine, it is necessary to understand what was done - a major overhaul of a fixed asset or its modernization.

The engine is inoperative, i.e. its further operation is impossible. If, as a result of replacing the engine with a new one, the initial technical and economic characteristics of the car have not changed, we can talk about repairing the fixed asset. If, as a result of replacing the engine, qualitative (functional) changes occurred in the car (engine power increased, vehicle acceleration time decreased, etc.), then we can talk about modernizing the fixed asset.

If the power of the new engine is greater, then even if there is a defective statement and a written opinion from an expert or a car service about the impossibility of operating the car without replacing the engine, it is safer to regard such a replacement as a modernization (technical re-equipment, reconstruction). For example, the Russian Ministry of Finance included the replacement of broken units on an aircraft with new ones with improved technical characteristics as expenses for technical re-equipment (letter of the Russian Ministry of Finance dated April 18, 2006 No. 03-03-04/1/358). Judicial practice on this issue is ambiguous.

At the same time, the cost of the engine and the cost of installing it in a car is not a criterion for distinguishing between repair and modernization of a car (letter of the Ministry of Finance of Russia dated March 24, 2010 No. 03-03-06/4/29).

An engine purchased for a car belongs to the organization's inventory and is accepted for accounting at the actual cost minus VAT and other refundable taxes (clause 2, clause 5, clause 6 of PBU 5/01).

After repair work, the cost of the engine itself and the costs of its installation are included:

• into expenses for ordinary activities, if the car is used in production activities or for the management needs of the organization (clause 5, clause 7 of PBU 10/99);
• for other expenses in other cases (clause 11, clause 12 of PBU 10/99).

In tax accounting, expenses for car repairs (including the cost of the engine and the amount of costs for installing it in the car) are recognized at a time in the reporting (tax) period in which they were carried out (regardless of payment), in the amount of actual costs (Article 260 , clause 5 of article 272 of the Tax Code of the Russian Federation).

The costs of repairing a car that is not used in activities aimed at generating income are not taken into account when calculating income tax (Clause 1, Article 252 of the Tax Code of the Russian Federation).

In accounting and tax accounting, the costs of upgrading a car (including the cost of the engine and the amount of costs for installing it in the car) increase the initial cost of the fixed asset item (clause 26, clause 27 of PBU 6/01, clause 2 of Article 257 of the Tax Code of the Russian Federation) and are repaid by calculating depreciation (clause 17 PBU 6/01, clause 1 article 256 of the Tax Code of the Russian Federation).

Input VAT on an engine accepted for registration and work on its installation in a car (regardless of whether it is a repair or modernization) can be deducted in the usual manner if the car is used in an activity subject to VAT (clause 2 of Article 171, clause 1 Article 172 of the Tax Code of the Russian Federation).

Purchasing a parking space

The purchase of a parking space represents the purchase of part of a land plot.

But in this area there is a marking for cars or a canopy. If not, then the company can complete what it considers necessary for a convenient location of the machine.

The costs of constructing and purchasing a parking lot form its initial price (both in tax and accounting). But in each of the accounts, this type of asset such as parking is classified as fixed assets if it meets the criteria established by PBU 6/01.

The occurrence of car expenses and their current accounting

The organization operating the car can carry out repairs on its own, or it can outsource maintenance and repair work to specialists. In tax accounting, such expenses are classified as other expenses in accordance with clause 1 of Art. 260 Tax Code of the Russian Federation. They should be recognized in the period in which they were implemented. Accounting is carried out on the basis of primary documents confirming expenses incurred.

Let's look at accounting for repairs using OSNO as an example.

Third Party Repair and Maintenance

The legislation does not provide for an exhaustive list of documents. Practice has developed the following procedure for processing work:

• concluding an agreement with a service station or service center, usually for a year;
• drawing up a repair request with a list of work and necessary spare parts;
• certificate of acceptance and transfer of the car for repair with a description of defects and problem areas;
• drawing up a work order with a detailed description of the work and its cost;
• work acceptance certificate after completion;
• invoice (if necessary);
• act of acceptance and transfer of the car in kind.

Let Zvezdochka LLC decide to contact a third-party organization to repair the KamAZ vehicle. The cost of the work, according to the invoice, amounted to 175,000 rubles, including VAT.

The postings will look like this:

• Dt 25 Kt60 - 175,000.00 rub. Service station debt;
• Dt 19 Kt 60 — 26694.92 rub. VAT reflected;
• Dt 60 Kt 51 - 175,000.00 rub. Paid to the service station for the work;
• Dt 68 Kt 19 — 26694.92 rub. Submitted for VAT deduction.

In-house repair and maintenance

As a rule, the following documents are used within the organization to record and confirm repairs:

• repair plan;
• defective statements;
• applications from persons responsible for the condition of the fleet for the purchase of spare parts, primary invoices, invoices and other documents;
• invoice requirements for the issuance of spare parts;
• acts for writing off spare parts and materials for repairs;
• inventory cards and books with notes on repairs.

Let Zvezdochka LLC repair KamAZ on its own. The cost of spare parts was 75,000 rubles, and the wages of workshop workers involved in repairs were 25,000 rubles.

The postings will be like this:

• Dt 25 Kt 10/5 - 75,000.00 rub. Spare parts written off for repairs;
• Dt 25 Kt 70 - 25,000.00 rub. Salary accrued;
• Dt 25 Kt 68.69 - 7500 rub. Deductions to funds from wages.

Creating a reserve for repairs

Reserving funds for future repairs is the right of the organization, not its responsibility. It is necessary to specify the need for such a reserve in the accounting policy. The calculation of contributions to the reserve is based on the data of defective statements, the cost of the car, its service life and technical characteristics. An annual estimate for vehicle repairs and maintenance is drawn up.

Let the estimated cost for the year be 360,000.00 rubles, for the month - 30,000.00 rubles.

The postings and calculations used are as follows: Dt 25 Kt 96 RUB 30,000.00.

Zvezdochka LLC repaired a KamAZ truck at a service station in January for the amount of 75,000 rubles, including VAT of 11,440.68 rubles. The reserve amounted to RUB 30,000.00. Amount excluding VAT RUB 63,559.32:

• Dt 60 Kt 51 - 75000.00 rub. Service station repairs were paid for;
• Dt 96 Kt 60 - 30000.00 rub. Repairs at the expense of the fund.

63779,32 — 30000,00 = 33779, 32

• Dt 97 Kt 60 — 33779.32 rub. The remaining amount is included in deferred expenses;
• Dt 19 Kt 60 - 11440.68 rub. VAT included;
• Dt 68 Kt 19 - 11440.68 rub. VAT is claimed for deduction.

It should be said about the features of accounting for repairs in cases where a car is rented or taken under a leasing agreement.

Car wash accounting

The operation of a car wash is the provision of services, so your accounting entries will always involve costly accounts 20, 25, 26. It is provided to both individuals and legal entities.

When working with individuals, a legal entity (car service) is obliged to use a cash register, on the basis of the Regulation of the Central Bank of the Russian Federation dated October 12, 2011 No. 373-P “On the procedure for conducting cash transactions.” Upon completion of the service, the car service must hand over to the individual a primary document confirming the fact of the service: Invoice, Certificate of Work Completed and Cash Receipt Order (CRO) with a cash receipt.

— Car service was provided to an individual, a work certificate was issued Dt 62 Kt 90

— Paid according to the previously issued act Dt 50 Kt 62.

In addition to serving individuals, legal entities can also use car wash services. Legal entities can conduct non-cash payments. In this case, the car service center needs to open a bank account.

— Paid according to a previously issued invoice to a legal entity Dt 51 Kt 62.

Car for rent

There are two types of car rental agreement:

• without crew;
• with crew (temporary charter).

In the first case , according to Art. 642 of the Civil Code of the Russian Federation, the tenant receives the right to temporarily use the car, including driving it, and maintaining it in proper condition. The lessor receives a fee for using his car. Further, in accordance with the provisions of Art. 644 of the Civil Code of the Russian Federation, current and major repairs of the car are required to be carried out by the lessee. He also maintains the proper technical condition of the car, recognizing the costs according to the law.

Article 264 (clause 11-1) allows organizations using the OSNO to do this, and Article 346.16 (clause 12) allows those using the simplified tax system. All expenses must be documented, based on properly executed primary documents.

Expenses for repairs and maintenance of rental cars are recognized without problems for organizations using OSNO:

• if the car is depreciable - on the basis of Art. 260 of the Tax Code of the Russian Federation, regardless of whether it is stated in the contract or not;
• if the car is not subject to depreciation (for example, rented from a private person or organization on a special regime) - on the basis of Art. 264 of the Tax Code of the Russian Federation (clause 1-49).

How to keep records of repairs in an enterprise's fleet

In any case, you need to keep records of repairs in your fleet. This does not depend on who performs the repair work - the organization’s employees or contractors.

Accounting for vehicle repairs at an enterprise allows you to control the expenditure of funds for maintaining the vehicle fleet.
A list of necessary documents for repair work in the vehicle fleet.

• A defect sheet that reflects a list of damages and the amount of work required. Or an act of technical condition of the car.
• An estimate that specifies the parts to be repaired and their cost.
• A vehicle registration form in which it is noted when the car is being repaired and cannot fulfill requests.
• Work orders for workers based on estimates or an agreement with the contractor for them to begin completing tasks.
• Certificate of completed car repair work. The act notes the completeness and quality of the work performed, and the costs incurred for repairs. Separately reflect the results of testing vehicles after the work performed.
• A vehicle inspection report that confirms the condition of the vehicle after repair.
• Logbook for vehicle maintenance and repairs.
• The act of acceptance and transfer of the vehicle to the driver, without which the driver will not be able to go on line after the car is repaired.

If the color or number of the body, car, chassis, or engine has changed, this must be recorded on the inventory cards. These changes are registered in the traffic police.

You can keep records of vehicle fleet repairs on paper using prepared journal forms and inventory cards. Or you can conduct document flow automatically in a program for recording vehicle repairs.

Car on lease

According to Law No. 164-FZ dated 10/29/98, which deals with issues of leasing (financial lease), the lessee is obliged to repair, perform maintenance, and protect the property accepted by him under the contract. Unless otherwise stated in the contract, the provisions of Art. 17-1 Federal Law 164 are the basis for including these costs in calculations for tax purposes. This rule is also confirmed by the instructions of Art. 260 of the Tax Code of the Russian Federation (clauses 1.2). In this case, it does not play a significant role whether the car is on the balance sheet of the lessor or the lessee - as a general rule, the costs for it lie with the organization that received the property.

Attention! Primary documents and accounting data must not only confirm the fact of expenses for the car, but also contain an indication of the use of this car for production purposes, to generate income for the organization, and confirm the economic justification of the expenses.

Source

Accounting subtleties of car repair

If an organization has the opportunity to repair a vehicle on its own (there is a repair base and personnel with appropriate qualifications), then the primary documents evidencing the transfer of the vehicle for repair can be:

• order of the organization’s management to repair the car (issued in accordance with the repair plan or on the basis of a defective statement);
• act on acceptance and delivery of repaired, reconstructed, modernized fixed assets (according to form No. OS-33).

In this case, the costs of repairs are reflected in the accounting registers by the following entries:

• Debit
  23
  Credit
  10, 70, 69, 02, 60, etc.

The primary documents that serve as the basis for reflecting these costs in accounting can be acts on the installation of spare parts on the car being repaired, orders (acts, time sheets) for calculating wages, etc.

If depreciation of equipment used in car repairs is calculated in the same amount in the accounting registers and for profit tax purposes, then there will be no differences in accounting. In the case when, for profit tax purposes, depreciation on equipment is accrued in a larger amount than in the accounting registers, then the amount of repair costs will be correspondingly higher.

Upon completion of the repair, an appropriate document must be drawn up (for example, an act in form No. OS-3), on the basis of which repair costs are subject to write-off as expenses of the organization both in the accounting registers (clause 7 of PBU 10/99) and for tax purposes profits (Article 260 of the Tax Code of the Russian Federation). In this case, in the accounting registers, the write-off of costs is reflected by the posting:

• Debit
  26 (20, 44)
  Credit
  23.

If the costs of car repairs for profit tax purposes turn out to be higher than those reflected in the accounting registers (depreciation on equipment used in repairs is accrued in tax accounting in a larger amount), then, according to clause 12 of PBU 18/02, a taxable temporary difference arises. As a result, according to clause 15 of PBU 18/02, it is necessary to accrue a deferred tax liability, which is reflected by the posting:

• Debit
  68 subaccount “Calculations for income tax”
  Credit
  77.

The above applies to the situation when the organization does not create a reserve for the repair of fixed assets. When forming such a reserve, repair costs should be attributed not to expenses that reduce the financial result and taxable profit, but to the reduction of the monthly reserve created. In the accounting registers, this operation is reflected by the entry:

• Debit
  96
  Credit
  23.

Spare parts removed from the vehicle being repaired and suitable for further use or suitable only for delivery as metal are subject to receipt at the warehouse.

In our opinion, usable spare parts remaining after car repairs, as well as scrap metal, can be considered returnable waste. After all, according to paragraph 6 of Art. 254 of the Tax Code of the Russian Federation, returnable waste is recognized as the remains of material resources generated during the production of goods (performance of work, provision of services), which have partially lost the consumer qualities of the original resources (chemical or physical properties) and, therefore, are used with increased costs (reduced product yield) or not used for their intended purpose. The spare parts remaining after the car was repaired, that is, during the work process, have partially lost their consumer qualities and can be used either in the repair of other cars (but as used ones), or for another purpose - as hardware, sold as scrap metal, etc.

In this case, the cost of spare parts is determined by the price of their possible use, that is, by the cost reflected in the accounting registers (clause 9 of PBU 5/014). There are no permanent differences when these spare parts are subsequently written off.

However, the Russian Ministry of Finance claims that the cost of such spare parts should be recognized as non-operating income for profit tax purposes (letters dated June 15, 2007 No. 03-03-06/1/380, dated September 10, 2007 No. 03-03-06/1 /656). That is, the cost of spare parts when accepted for tax accounting must be equal to the amount of tax paid to the budget when they were capitalized in accordance with clause 13 of Art. 250 of the Tax Code of the Russian Federation (see Example 1). This approach was legislatively approved on January 1, 2009 as a result of amendments to Art. 254 of the Tax Code of the Russian Federation by Federal Law of November 26, 2008 No. 224-FZ.

How is it different from ongoing renovation work?

Reconstruction and modernization include measures that contribute to the improvement or, as an option, the targeted formation of updated technical and economic characteristics of the equipment used.

Repair work implies a set of activities that involve the replacement of certain parts, components, structures of a specific OS object, as well as actions aimed at ensuring its normal functioning.

Repair work, in turn, can be current or capital.

If we judge the purpose of the current repair, it should be noted that it is aimed at eliminating, relatively speaking, minor breakdowns, preventing possible malfunctions, and generally maintaining the current performance of the equipment used.

As for the overhaul, it is carried out to maintain the working condition of the fixed asset by restoring its technical and economic parameters to the required level.

Thus, capital repairs usually involve more serious costs than, for example, routine repairs.

Accordingly, a certain approach is required to the accounting of expenses for major repairs, provided, however, by the current norms and standards.

What's happened?

As mentioned earlier, a major overhaul of an operating system usually involves a significant amount of work that significantly contributes to a noticeable improvement in the technical condition of such objects.

As a rule, this repair requires a lot of time. If you follow the generally accepted regulations, it is carried out at the enterprise once every few years.

Current repairs, as is known, are carried out in organizations regularly - much more often, according to the established schedule.

It should be noted that for the purposes of accounting, it is not at all necessary for an accountant to distinguish between the types of repair work carried out in relation to fixed assets.

In addition, OS repair is not specifically differentiated either in accounting or tax accounting.

You should know that major repairs of the operating system can be carried out comprehensively, that is, completely covering the entire object being restored, or, alternatively, selectively, that is, providing for the elimination of breakdowns of individual parts (elements) of equipment.

Maintenance of fixed assets: accounting and tax accounting

In practice, it is not always easy to determine where to attribute certain costs associated with maintaining an object in working condition: to repairs or maintenance. The technical documentation available at the enterprise for fixed assets can help in this matter. If these are machines or equipment, the technical documentation usually specifies the necessary maintenance activities. The list of operations for the maintenance and repair of road vehicles is contained in the “Regulations on the maintenance and repair of road vehicles of motor transport”, approved by order of the Ministry of Transport of Ukraine dated March 30, 1998 No. 102, registered with the Ministry of Justice of Ukraine on April 28, 1998 under No. 268/2708 (hereinafter referred to as the Regulations). The regulations regulate the frequency of various types of maintenance: daily (EO), first (TO-1), second (TO-2), seasonal, as well as an approximate list of operations related to a particular type of work. The letter of the Ministry of Infrastructure of Ukraine dated 02/03/2012 No. 1075/25/10-12 “On the clarification of the term “car maintenance” provides an explanation of the distinction between car maintenance and repair.

In particular, the letter states: “The work performed relates to either maintenance or repair based on the lists and procedures for performing work regulated by the developer (manufacturer) of road vehicles and their components and (or) according to the records developed in the operating instructions and/or in service books, as well as in regulatory documents. If there is no operational documentation for road vehicles, the assignment of work performed is carried out in accordance with the “Regulations on the maintenance and repair of road vehicles of motor transport, approved by order of the Ministry of Transport of March 30, 1998 No. 102, registered with the Ministry of Justice on April 28, 1998 under No. 268/2708". As for the maintenance of buildings and structures, the list of maintenance services is indicated in the “Approximate list of services for the maintenance of houses and structures and local areas and services for the repair of premises, houses, structures”, approved by order of the State Committee of Ukraine on Housing and Communal Services dated 10 August 2004 No. 150, registered with the Ministry of Justice of Ukraine on August 21, 2004 No. 150. Some clarifications are also contained in letters from the State Committee of Ukraine on Housing and Communal Services dated January 26, 2005 No. 4/3-102 and the State Committee of Ukraine on Construction and architecture dated April 30, 2003 No. 7/7-401

Maintenance accounting

In accordance with Accounting Regulation (standard) 16 “Expenses”, approved by order of the Ministry of Finance of Ukraine dated December 31, 1999 No. 318 and registered with the Ministry of Justice of Ukraine on January 19, 2000. under No. 27/4248, with amendments and additions, expenses for the maintenance and servicing of fixed assets are included: • in the cost of finished products (account 23 - for fixed assets directly used in the production process); • as part of general production expenses (account 91 - for fixed assets for general production purposes); • included in administrative expenses (account 92 - for fixed assets for general economic purposes); • as part of sales expenses (account 93 - for fixed assets related to the sale of products); • as part of other operating expenses (account 94 - for social and cultural facilities). Tax accounting for maintenance

In tax accounting, the costs of maintenance and technical inspections are considered expenses of the enterprise. Depending on the direction of use of fixed assets, expenses are taken into account as part of the cost of goods manufactured and sold, work performed, services rendered in accordance with clause 138.8 of the Tax Code of Ukraine dated December 2, 2010 No. 2755-VI (hereinafter - NKU), or in the composition of general production, administrative, sales expenses, other operating expenses in accordance with clause “g” clause 138.8.5, clause “c” clause 138.10.2, clause “d” clause 138.10.3, clause 138.10.4 of Article 138 of the Tax Code.

Source: Elena Krotova - independent auditor specifically for Accountant 911

Cost accounting

Important! When the management of an organization makes an informed decision about the need to perform a major overhaul of the operating system, it is necessary to choose the appropriate method for carrying it out.

Typically, this activity can be carried out according to one of the following two approaches:

• restoration of a technical object using our own resources, that is, the internal resources of the enterprise itself;
• attracting resources from external (third-party) organizations through the conclusion of contract agreements.

Correct registration of all processes and procedures associated with the overhaul of fixed assets at an enterprise is of great importance for the correct accounting of relevant costs.

You should be aware that documentary evidence of the repairs carried out often becomes the object of close attention from tax officials.

At different stages of OS overhaul, the following documents must be drawn up:

• Justification of the need for this repair. For an OS object, an act of recording identified faults or, as an option, a defective statement is drawn up.
• If an object is transferred to the enterprise’s own division for repairs, an invoice is issued certifying the fact of internal movement.
• If the repair of a fixed asset is entrusted to an external organization, a corresponding contract and a certifying acceptance certificate are drawn up.
• The fact of completion of major repairs and return of the object to its intended place is also documented in the acceptance certificate.
• All paid expenses and incurred expenses must be confirmed by payment documents, estimate and technical documentation.

Read about documentation of repairs here.

Accounting entries

OS repair costs are taken into account as part of production costs or, alternatively, sales costs.

This position is reflected in the methodological recommendations regulating the accounting of fixed assets and approved by the administrative act of the Ministry of Finance of the Russian Federation. The tables below highlight typical transactions.

The first situation is that the enterprise has its own division authorized to carry out repair work. In this case, it is appropriate to use account 23:

Repair costs are taken into account

Costs incurred by the repair department are included in production costs or distribution costs.

The second situation is when the organization independently repairs fixed assets, but does not have its own repair unit:

Repair costs are taken into account

The third situation is when repair work is carried out entirely by a third-party contractor:

The cost of OS repair services is taken into account

VAT is reflected for ordered repair work

Creating a reserve

Tax accounting regulations require the inclusion of repair costs as part of other costs.

Such expenses are recognized precisely in the reporting period in which they were actually incurred.

In addition, the legislation allows the formation of target reserves intended to finance future repairs.

If such a reserve is nevertheless created by the enterprise, this makes it possible to evenly distribute (show) repair costs in the tax accounting system over a number of reporting periods.

The method of reflecting (fixing) repair costs is fixed in the accounting policy of the organization.

It should be clarified that such reservation and distribution of repair costs is allowed exclusively for tax accounting. This practice is not provided for in accounting.

Expenses for a company car: accounting details

From the article you will learn:

1. Which expenses for the maintenance and operation of a company car are accepted for tax purposes and which are not.
2. In what order are expenses for fuels and lubricants, maintenance, insurance of a company car and others taken into account for calculating income tax and under the simplified tax system.

3. How to document the costs of maintaining a company car.

Most organizations and entrepreneurs in their activities cannot do without transportation costs for the delivery of goods, for official trips of employees, etc. At the same time, each manager solves the “transport issue” in his own way, based on the needs and capabilities of the business. In this article, I propose to consider the option of using a company car owned by an organization or individual entrepreneur and used in business activities. More precisely, we will analyze the procedure for accounting for expenses associated with the operation of a company car for tax purposes. As you know, using a car, and even more so intensively, is a rather costly process, so it is important to understand which of these costs reduce the tax burden and which do not.

Expenses for fuel and lubricants

Expenses that cannot be avoided during the operation of a car, of course, are the costs of fuel and lubricants. When calculating income tax, expenses for the maintenance of official vehicles, which include expenses for fuel and lubricants, are taken into account as part of other expenses associated with production and sales (clause 11, paragraph 1, article 264 of the Tax Code of the Russian Federation). When applying the simplified tax system with the object “income - expenses”, the taxpayer also has the right to take into account the costs of gasoline, since the costs of maintaining official vehicles are directly listed in the closed list of expenses under the simplified tax system (clause 12, clause 1, article 346.16 of the Tax Code of the Russian Federation).

Expenses for tax purposes must be documented. Therefore, the basis for taking into account gasoline costs for a company car are supporting documents: waybills, gas station receipts, an order for the use of a company car and establishing fuel consumption standards (or another similar local document that sets out the procedure for calculating the fuel consumed).

A frequent question that taxpayers face is: what standards should be used to calculate the costs of fuel and lubricants in order to accept them for tax accounting. The Tax Code of the Russian Federation does not directly establish the obligation to ration the costs of fuel and lubricants for official transport; accounting according to the standards is provided only for compensation to employees for the use of personal transport. In addition, Order of the Ministry of Transport of Russia dated March 14, 2008 No. AM-23-r “On the implementation of methodological recommendations “Consumption standards for fuels and lubricants in road transport” contains fuel consumption standards that are mandatory for use only by motor transport organizations. Based on this, we can conclude that the taxpayer has the right to independently develop and approve norms for the consumption of fuel and lubricants, while he can use the norms of the Ministry of Transport (Letters of the Ministry of Finance of the Russian Federation dated January 27, 2014 No. 03-03-06/1/2875, dated June 3, 2013 No. 03-03-06/1/20097, dated 01/30/2013 No. 03-03-06/2/12). The safest option is to take into account the costs of fuel and lubricants according to the standards of the Ministry of Transport, but it is not always the most profitable. Therefore, if you decide to take into account gasoline costs according to independently developed standards that are as close as possible to actual consumption, pay attention to the justification of these standards (technical documentation for the car, official information from the vehicle manufacturer, control measurements of fuel consumption, etc.). The applied standards, their justification and the procedure for calculating costs for fuel and lubricants must be fixed in the order of the manager and the accounting policy for tax purposes.

Technical inspection

Passing a technical inspection is a necessary condition for operating a car in accordance with the legislation of the Russian Federation (Article 17 of the Federal Law of December 10, 1995 No. 196-FZ “On Road Traffic Safety”). Therefore, there is every reason to classify the cost of technical equipment as the cost of maintaining official vehicles and, accordingly, include them in the costs taken into account when calculating income tax and the simplified tax system. Documents confirming the costs of a technical inspection can be a copy of a diagnostic card, a technical inspection coupon, a cash register receipt, a payment order or another document confirming payment for the services of the technical inspection operator. If the results of maintenance reveal violations, then the costs of eliminating them can also be taken into account for tax purposes.

Car repair costs

Expenses for repairing a company car are taken into account when calculating income tax as part of expenses associated with production and sales (clause 2, clause 1, article 253 of the Tax Code of the Russian Federation). If the simplified tax system is used, the cost of car repairs also reduces the tax base (clause 3, clause 1, article 346.16 of the Tax Code of the Russian Federation). Repairs can be carried out either in-house (repair department, repair specialist) or by a third party. The Tax Code does not contain any restrictions on the method of carrying out repairs; the main thing is that there are documents confirming the expenses incurred. If the repair is carried out by a third party, then a contract for car repair, a certificate of completion, calculation or cost estimate are required. If repairs are carried out on your own, then cost estimates and invoices for the internal movement of materials (limit cards) can serve as confirmation of expenses. In addition, a prerequisite for accounting for expenses under the simplified tax system is their payment, so payment orders, cash register receipts or payment receipts will be added to the number of supporting documents.

Washing costs

Despite the fact that operating a car without washing is theoretically possible, washing costs can be taken into account as part of the cost of maintaining official vehicles to calculate income tax, as evidenced by Letter of the Ministry of Finance of Russia dated June 20, 2006 No. 03-03-04/1/ 530. A similar conclusion can be drawn regarding accounting for washing costs when applying the simplified tax system. Particular attention should be paid to supporting documents. If payment is made by bank transfer, then there should be no problems with confirmation: payment order, certificate of services rendered. However, most often drivers pay for car wash services in cash; in this case, it is necessary to check the availability of a cash register receipt and a correctly executed sales receipt or receipt (if the car wash station does not use cash register services). The sales receipt and receipt must contain the mandatory details of the primary documents (Clause 2, Article 9 of the Federal Law of December 6, 2011 No. 402-FZ “On Accounting”), in addition, the receipt issued in exchange for a cash register receipt must meet the requirements for forms strict reporting (clause 3 of the Decree of the Government of the Russian Federation of May 6, 2008 No. 359 “On the procedure for making cash payments and (or) settlements using payment cards without the use of cash registers”). It is better to familiarize the employees operating the vehicle with these requirements so that they can check the correctness of the paperwork on the spot.

Costs for paid parking services

For the purpose of calculating income tax, the taxpayer has the right to take into account the costs of paid parking for a company car as part of the costs associated with its maintenance (Letter of the Ministry of Finance of Russia dated April 27, 2006 N 03-03-04/1/404). Thus, there is reason to take into account parking costs for calculating tax under the simplified tax system. The supporting documents and the procedure for their execution in this case will be similar to those discussed in the previous paragraph.

Car insurance costs

To reflect the costs of car insurance in tax accounting, the type of insurance is of great importance: compulsory (MTPL) or voluntary (CASCO).

When calculating income tax, the tax base can be reduced by expenses for both compulsory and voluntary insurance of a company car (Clause 1, Article 263 of the Tax Code of the Russian Federation). Costs for voluntary insurance of company vehicles against theft and damage are taken into account in the amount of actual costs under the insurance contract (Letter of the Ministry of Finance of Russia dated February 20, 2008 No. 03-03-06/1/119). And expenses for compulsory insurance can be accepted for tax accounting only within the limits of the tariffs established by the legislation of the Russian Federation (clause 2 of Article 263 of the Tax Code of the Russian Federation). Currently, tariffs for compulsory motor liability insurance contracts are established by Decree of the Government of the Russian Federation dated December 8, 2005 No. 739 “On approval of insurance tariffs for compulsory civil liability insurance of vehicle owners, their structure and the procedure for application by insurers when determining the insurance premium.”

Expenses under a company car insurance contract are taken into account for the purpose of calculating income tax in the period of actual payment of the insurance premium. However, if the insurance period covers several reporting periods, and payment is made in one or several one-time payments, then such expenses must be taken into account for tax purposes evenly throughout the entire term of the insurance contract. The amount of expenses accepted in the reporting period will be calculated in proportion to the number of days the insurance contract is valid in this reporting period (clause 6 of Article 272 of the Tax Code of the Russian Federation).

Under the simplified tax system, only payments under a compulsory insurance agreement can be taken into account in tax expenses (Clause 7, Clause 1, Article 346.16 of the Tax Code of the Russian Federation), since payments under voluntary insurance agreements are not included in the closed list of accepted expenses. At the same time, expenses under the MTPL agreement reduce the taxable base for tax under the simplified tax system in the same manner as for calculating income tax (clause 2 of Article 346.16 of the Tax Code of the Russian Federation), that is, within the limits of the tariffs established by the Decree of the Government of the Russian Federation of December 8, 2005 No. 739. The insurance premium under the MTPL agreement is accepted for accounting at a time at the time of payment, regardless of the validity period of the agreement; Even write-off as expenses is not allowed (clause 2 of Article 346.17 of the Tax Code of the Russian Federation).

Traffic police fines

On the one hand, fines for violating traffic rules are not a necessary condition for operating official vehicles, but, on the other hand, if the vehicle is used intensively, traffic police fines are difficult to avoid even for the most experienced driver. Moreover, the cost of paying fines can reach very significant amounts. What to do: accept or not accept such expenses? The answer is clear - traffic police fines are not taken into account either for calculating income tax or for calculating tax under the simplified tax system.

Firstly, fines are directly indicated among the expenses not taken into account when taxing profits (clause 2 of Article 270 of the Tax Code of the Russian Federation), and they are also not included in the closed list of expenses taken into account under the simplified tax system. Secondly, expenses are accepted for tax accounting provided they are justified, that is, economically feasible (clause 1 of Article 252 of the Tax Code of the Russian Federation). Obviously, the costs of paying traffic police fines are not justified, since they are not aimed at carrying out income-generating activities.

So, we have looked at the main expenses that taxpayers incur in connection with the operation of a company car. Now I propose to summarize which expenses can be taken into account for tax purposes and which cannot.

Thus, most of the costs of maintaining and operating a company car used in business activities reduce the tax base. This is the main advantage of using your own car over, for example, using the personal transport of employees and paying them compensation, the amount of which is only partially included in tax expenses.

Do you think it is beneficial to use a company car?

What are the most significant costs of its maintenance?

Please share in the comments!

Legislative and regulatory acts:

1. Tax Code of the Russian Federation

2. Federal Law of December 10, 1995 No. 196-FZ “On Road Safety”

3. Federal Law of December 6, 2011 No. 402-FZ “On Accounting”

4. Decree of the Government of the Russian Federation dated May 6, 2008 No. 359 “On the procedure for making cash payments and (or) settlements using payment cards without the use of cash register equipment”

5. Decree of the Government of the Russian Federation dated December 8, 2005 No. 739 “On approval of insurance tariffs for compulsory civil liability insurance of vehicle owners, their structure and procedure for application by insurers when determining the insurance premium”

Codes, Federal laws and Decrees of the Government of the Russian Federation are posted on the Official Internet portal of legal information https://pravo.gov.ru/

6. Order of the Ministry of Transport of Russia dated March 14, 2008 No. AM-23-r “On the implementation of methodological recommendations “Consumption standards for fuels and lubricants in road transport”

7. Letters from the Ministry of Finance of the Russian Federation

You can familiarize yourself with the documents of the financial department on the official legal portal of the Ministry of Finance of the Russian Federation https://mfportal.garant.ru/

conclusions

It is obvious that repair costs, including capital repairs of fixed assets, do not lead to an increase in the book value of the corresponding objects.

They are simply included in the costs of the enterprise, which is typical for both accounting and tax accounting. It is noteworthy that for accounting purposes there is no need to separate repair work into the areas of current and major repairs.

The option to reserve repair costs in tax accounting allows you to distribute them evenly over several periods.

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