Accounting for incoming advance payment under the simplified tax system
When using the simplified tax system as a taxation system, advances received must be taken into account in income when determining the amount of the single tax at the time the money is received (Letter of the Ministry of Finance of the Russian Federation No. 03-11-11/204 dated 07/06/2012).
Example 1:
According to the concluded agreement, Info LLC is obliged to transfer an advance payment in the amount of 250,000 rubles to Breeze LLC. The advance amount is divided into two equal parts. The first payment in the amount of 125,000 rubles was transferred on June 1, 2015. The second prepayment payment is due July 7, 2015.
Breeze LLC applies a simplified taxation system and pays advance payments for a single tax.
The amount of income for the second quarter will increase by 125,000 rubles.
The amount of income for the third quarter will increase by 125,000 rubles.
In July 2015, goods were sold for the amount of 200,000 rubles.
Consequently, the amounts of the advance received and expenses incurred are included in the tax base when calculating the advance payment.
Note that advances received increase income and are taken into account when determining the maximum allowable income for using the simplified taxation system (Letter of the Ministry of Finance of the Russian Federation No. 03-11-06/2/42282 dated 08/25/2013). The threshold value for applying the simplified tax system is 60 million rubles. and is adjusted by the deflator coefficient for the corresponding year.
On accounting for advances when applying the simplified tax system
Letter of the Ministry of Finance of the Russian Federation dated May 24, 2005 No. 03-03-02-04/1/128 [ON ACCOUNTING FOR ADVANCES WHEN APPLYING A SIMPLIFIED TAX SYSTEM]
Expert of the “PEB” series of berators V.A. Kashirin
Question. Should an organization applying a simplified taxation system (single tax base – income minus expenses) include in taxable income the amounts of advances returned from the supplier? Among the income not included in income for the purposes of income taxation in accordance with Article 251 of the Tax Code, this type of income is not named. However, according to Article 41 of the Tax Code, for the purposes of calculating taxes, “income is recognized as economic benefit in cash or in kind.” In this case, the organization did not receive any economic benefit. In addition, the specified prepayment amount was not included in the organization’s expenses.
