How to determine sales revenue for VAT distribution

When is trade turnover taxed and when is it not?

Four main groups of trade turnover subject to VAT are presented in the Tax Code of the Russian Federation:

Paid or gratuitous sale of goods, services, labor, collateral in the Russian Federation, transfer of rights to property, to trade items on the basis of replacement of obligations by agreement of the parties or compensation, which is confirmed by paragraph 1 of paragraph 1 of Article 146 of the Tax Code.
Sales of goods and services to meet the needs of the organization, but not for the purpose of making a profit. Such transfer of products is subject to VAT if the costs are recognized as economically unjustified or such costs are included in the item of expenses not taken into account when calculating income tax. Art. 252, Article 270 of the Tax Code of the Russian Federation.
Carrying out construction and installation activities for your own needs. If an organization performs this type of work independently, then taxation is present (clause 3, clause 1, article 146 of the Tax Code). If the construction process is provided by a contractor, then there is no VAT.
Import of trade items into the territory of the Russian Federation (clause 4, clause 1, article 146 of the Tax Code of the Russian Federation and clause 3, clause 1, article 2 of the “Customs Code of the Eurasian Economic Union”).

Revenue will not be subject to value added tax for manipulations that are not accepted as sales or are not subject to taxation. For example:

Currency transactions (clause 1, clause 3, article 29 of the Tax Code of the Russian Federation). Transactions related to numismatics do not fall into this clause.
Transfer of objects of ownership to the legal successor during the reorganization of companies (clause 2, clause 3, article 39 of the Tax Code of the Russian Federation).
Return of assets to a person who was a member of a business company as part of the initial contribution in the event of termination of the company’s activities or withdrawal of a participant from its membership (clause 5, clause 3, article 39 of the Tax Code of the Russian Federation).
Transfer of housing facilities, electrical networks, roads, etc. to authorities (clause 2, clause 2, article 146 of the Tax Code of the Russian Federation).
Sale of land or land shares (clause 6, clause 2, article 146 of the Tax Code of the Russian Federation).
Sale of property or rights to it in the event of bankruptcy of debtors (clause 15, clause 2, article 146 of the Tax Code of the Russian Federation).

There is also a closed list of processes named in paragraphs 1-3 of Article 149 of the Tax Code . Their peculiarity is that, being objects of taxation, they are not recognized as subject to tax and are exempt from VAT.

Goods not subject to VAT include:

Approved list of medical products (clause 1, clause 2, article 149 of the Tax Code of the Russian Federation).
Food products for medical organizations and canteens of kindergartens, schools, etc. (subclause 5, clause 2, article 149 of the Tax Code).
Residential buildings and shares of premises in them (clause 22, clause 3, article 149 of the Tax Code of the Russian Federation).

Two accounts for revenue - when to use which?

To reflect revenue in accounting using a chart of accounts, approved. By order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n, 2 accounts are provided:

account 90 “Sales”;
account 91 “Other income and expenses”.

Account 90 is intended to reflect income from ordinary activities, for example, sales of own products, purchased goods, work performed, services provided.

When recognizing revenue, this account is credited in correspondence with account 62 “Settlements with buyers and customers”. At the same time, the cost of goods sold, products, works, services, etc. is written off from the credit of accounts 43 “Finished products”, 41 “Goods”, 44 “Sales expenses”, 20 “Main production”, etc. to the debit of account 90 “Sales” .

Account 91 shows other income. This may be income from the rental of property, the sale of fixed assets and other assets, interest received, fines, etc. Income is also reflected on the credit account in correspondence with accounts 62 “Settlements with buyers and customers”, 76 “Settlements with various debtors and creditors”, etc. And expenses are debited, corresponding to the accounts of costs, assets, cash, etc.

ConsultantPlus experts explained what is recognized as an organization’s revenue for filling out line 2110 “Revenue” of the financial results statement. If you do not have access to the K+ system, get a trial online access for free.

What is this?

Revenue represents the income that an organization or enterprise receives over a certain period of time through the sale of a number of goods or services. This is the final stage of the company’s commercial or non-commercial activity, and the calculation is made by multiplying the price of the product by the number of units sold.

Net sales revenue is recognized as profit minus indirect taxes . It is an indicator of the organization's performance.

Revenue from the sale of sales objects is divided into two types:

Gross revenue is the total amount including taxation (excise taxes, customs duties, VAT).
Net revenue is profit from sales of products, works or services without taxation.

You will learn about how such sales revenue is calculated in a special material.

The tax calculation looks like this: let’s denote the amount by the letter C, then VAT=C*18/100. According to this calculation, with revenue of 100,000 rubles, VAT will be 18,000.

Including tax

To make such a calculation, the amount including VAT is designated Sn. The calculation turns out like this:

Сн = С + С*18/100 = С*(1+18/100) = С*1.18.

Then, with revenue of 100,000 rubles, the result will be 118,000.

In the Russian Federation, an invoice document is used to calculate value added tax . The law establishes clear rules for filling out this form and its format.

Without him

To calculate the value of profit without this indirect tax, the same formula is used as a basis. When designating N=18/100, it turns out that Сн = С+ N*С = С*(1+N).

Thus, C = Cn/(1+N) = Cn/(1+0.18) = Cn/1.18.

If difficulties arise when working with formulas, then specialized online calculators simplify the work of taxpayers . With their help, data is calculated quickly and accurately.

Enter the site

VAT regardless of whether the seller operates with added tax or not. And taxes that are not included in VAT expenses and income tax are not reflected by the expense type code, because they are not expenses. Value added tax or simply VAT is an indirect tax or form of levying value added. The amount of revenue from the sale of goods excluding VAT. Sales proceeds excluding VAT. VAT in accordance with sub. VAT, which contributed to the formation of non-operating income and influenced the discrepancy between revenue indicators form 2 and sales income. When taxed at a zero rate, see

. The cash method is considered to be revenue received in the accounts or cash register of the enterprise or cash payment. VAT and sales tax. They also undertake to provide a balance sheet statement, balance sheet form 2 and form 1 for clarification. Reflection of sales revenue without VAT in accounting entries. Article Foreign sales without VAT and income tax. Thus, the answer follows to the question of whether to show revenue with or without VAT on accounts 90 and 91. Profits and losses, as well as information on the income statement Form 2. Similarly, VAT is not reflected in Form 2. Please help a non-accountant economist understand VAT in financial statements! Other income or 2 Other expenses. Income and expenses in Form 2 with or without VAT? VAT is one of the taxes in Russia that has a significant impact. The current VAT rate in Russia. individual entrepreneurs, in cases where the volume of revenue for the quarter exceeded the established amount, or the entrepreneur himself. Tax Code of the Russian Federation, will not exceed 2 million. Then only an explanation that the income in the income tax return for such and such

Is it necessary to indicate VAT in the cash flow statement c. By the way, this implementation can be seen in the VAT return in section. Value added tax VAT is a form of withdrawal of part of the added value to the budget. After all, export revenue is reflected in profitability. 01 minus VAT p. The amount of revenue reflected in line 2110 Revenue of the new unified form of the Report without VAT will be: VAT, in accordance with. This means 1 Revenue taking into account the sale of subsequently returned goods, and. It is indicated in Form 2 or. VAT and excise tax revenue for. VAT, income tax and form 2.

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Revenue - income from the sale of products and goods, receipts associated with the performance of work and provision of services.

The term “Revenue” in English is Revenue, Net Sales.

The term “Gross Revenue” in English is Gross revenue.

Exemption from payment if sales volumes are less than two million rubles

Firms and individual entrepreneurs whose sales volumes are not high, according to the Code of the Russian Federation, have the right not to pay value added tax. This benefit comes into force if, for three calendar months, the total income from the sale of trade items or the provision of services (not taking into account tax) is less than 2 million rubles (clause 1 of Article 145 of the Tax Code of the Russian Federation).

Important! If, if there is a tax exemption, during the next three months the total profit (excluding tax) exceeds this amount, then the preferential right is canceled. The tax is restored and payable in the accepted manner, starting from the month where the excess occurred (clause 5 of Article 145 of the Tax Code).

We talked about the rules for displaying income of individual entrepreneurs on the simplified tax system here.

Step-by-step instructions: how to plan sales income and costs in Excel

An Excel spreadsheet is used to plan revenue and production costs . The standard table for calculating efficiency has four fields:

Tax rates (cell A1:B3).
Income from the sale of trade items, expenses and debit VAT (A5:B7).
Determination of value added tax for payment to the budget (A9:B10).
Calculation of revenue and taxes on profit and turnover (A12:B17) (find out the main differences between revenue and turnover here).

Information is entered into the first two fields, and the next two fields process it.

The type of calculation of the tax liability for VAT according to the table is as follows: =ROUND(B5*(B1/(1+B1));2).
To calculate the amount of tax to be paid to the state treasury, you need to subtract the amount of the tax credit from the amount of tax liabilities (B10) = B9-B7.
GP (gross profit) excluding VAT (cell B12) is calculated by subtracting the value of tax liabilities from the amount of revenue = B5-B9.
Sales revenue is determined by subtracting costs = B12-B6 from the amount of VP.
To calculate the turnover tax, VP is multiplied by the turnover tax rate = ROUND(B12*VZ;2).
Revenue subject to taxation is the difference between the realized profit and the amount of turnover tax = B13-B14.
Revenue tax is the product of the amount subject to taxation and the income tax rate, the result is rounded to the second digit = ROUND(B15*B2;2).
Net profit is calculated by deducting the amount of income tax from taxable income = B15-B16.

Using an Excel spreadsheet is convenient because by changing the tax rate data, you can easily adapt to the current tax system. After changing the values of costs and sales amounts, the final result is immediately reflected. Excel offers various methods for entering data, in addition, formulas and a variety of functions provide additional possibilities for calculations.

We recommend that you pay attention to other publications by our experts, after reading which you will learn:

How does revenue differ from cost, income and profit?
How to calculate annual revenue?
What are the reasons for the decline in revenue and how can it be increased?

Payment distribution

To distribute VAT on revenue, use the proportion of transactions subject to and non-taxable . The tax is deducted or included in the price of products and services (clause 4, clause 4, article 170 of the Tax Code of the Russian Federation).

If VAT is deducted, the proportion looks like this: ST (with VAT) / ST (total), ST (with VAT) is the price of products or services, the sale of which is subject to value added tax; ST (total) – the total price of goods or services sold in the tax period.

If the tax is included in the cost of products, then the following proportion is used : ST (excluding VAT) / ST (total), ST (excluding VAT) - the price of goods or services not subject to VAT; ST (total) – the total price of goods or services sold in the tax period.

The distribution of VAT on revenue does not include the following receipts:

Interest on bank deposits and account balances.
Profit on shares or shares in the authorized capital.
Cash from payment of fines on loans and borrowings, violation of the terms of lending agreements.
The discount rate charged by banks when purchasing bills of exchange.
Cash received by subsidiaries from parent companies.

Attention! Expenses for the distribution of VAT include items of trade that participated in trade turnover on the territory of the Russian Federation. Production costs are necessarily taken into account in the cost of goods. The proportion must be drawn up strictly according to the regulations.

Discrepancy with VAT income and profit

Tax authorities always study income based on profit and VAT in order to identify non-taxable revenue. To do this, the information from both declarations is verified. Check line 010+020 (sheet 02) in Profit and line 010 (section 3) in VAT.

But additional factors influence the indicators, which complicates the task. For example, the value added tax base increases due to returns to suppliers, but revenue does not. Income decreases with returns from customers, but tax does not.

Therefore, it is quite difficult to understand the discrepancies between profit and VAT. The tax base is often violated due to accounting errors , so in practice equality between the values of two declarations is not respected.

Causes

The reasons for the discrepancy between VAT and profit may be as follows:

Acquisition of property upon removal of fixed assets from circulation (Clause 13, Article 250 of the Tax Code of the Russian Federation).
Detection of surpluses when comparing accounting and actual data (clause 20 of article 250 of the Tax Code of the Russian Federation).
Positive differences in amounts and rates (clause 2, 11, article 250 of the Tax Code of the Russian Federation).
Reconstruction of the cash reserve (clause 7 of Article 250 of the Tax Code of the Russian Federation).
Removal of loan debt due to the expiration of the statute of limitations (Clause 18, Article 250 of the Tax Code).
Sales of trade objects whose sales area is not the Russian Federation (Articles 147, 148; Clause 1, Clause 1, Article 248; Clause 1, Article 249 of the Tax Code of the Russian Federation).
Acquisition of interest on loans issued or on the balance of money in the account (clause 6 of Article 250 of the Tax Code).

A number of transactions are taxable but do not generate revenue. This refers to the gratuitous transfer of trade objects or the provision of services for the needs of the organization itself. They are not included in the income tax return, but are reflected in lines 010 or 030 of column 3 (section 3) of the VAT return.

Reference! If an entrepreneur exports goods, then the data always diverges, since income from exported products is included in the declarations in different periods.

In the income tax return, proceeds are entered directly during the period of sale of trade items (clause 1 of article 249, clause 3 of article 271 of the Tax Code of the Russian Federation), and in VAT - after 180 days after shipment or during the preparation of papers proving the right to use a zero VAT rate.

Explanations from the Federal Tax Service

Explanations must be submitted to the tax office before the expiration of 5 days from the date of receipt of the notice (clause 2, 6, article 6.1, clause 3, article 88 of the Tax Code of the Russian Federation). It is allowed to provide explanations in free form and always in writing, and the tax inspector must put a note about the receipt of the paper (the document must be handed over in person, and not by mail).

The note must contain the reasons for the discrepancies in the declarations, as well as links to articles of the Tax Code confirming the legality of their existence. If the reasons for the discrepancy in data are correctly compiled and justified, and provided to the tax inspectorate on time, then there is a possibility that in the future inspectors will not send similar requests.

Is VAT not included in sales revenue?

249 of the Tax Code of the Russian Federation). At the same time, in Art. 249 of the Tax Code of the Russian Federation defines: “... income from sales is recognized as proceeds from the sale of goods (works, services) both of our own production and previously acquired, proceeds from the sale of property rights. Sales proceeds are determined based on all receipts associated with payments for goods (work, services) sold or property rights expressed in cash and (or) in kind.”

For VAT, in paragraph 2 of Art. 153 of the Tax Code of the Russian Federation defines: “When determining the tax base, proceeds from the sale of goods (work, services), transfer of property rights are determined based on all income of the taxpayer associated with payments for the specified goods (work, services), property rights received by him in monetary and (or) in kind, including payment in securities.”

Revenue should be distinguished from other income or non-operating income.

Other income, unlike revenue, is not related to the sale of goods (work, services) or is of an irregular nature for the organization. An example of other income is exchange rate differences, interest on loans issued, income from the sale of fixed assets, etc. The term “Other income” is accepted in accounting. In taxation, a similar term is used: “Non-operating income”.

Example

A trading organization sold goods at a price of 1,180 thousand rubles, including VAT of 180 thousand rubles. The cost of goods sold is 800 thousand rubles.

Revenue is recognized as the amount of income excluding VAT - 1,000 thousand rubles. It is this amount that is indicated in accounting and tax reporting as revenue.

In accounting, this operation is reflected by the following entries:

1,180 thousand D 62 - K 90 - income from sales including VAT is recognized

180 thousand D 90 - K 68 - VAT amount charged

800 thousand D 90 - K 41 - the cost of the goods is written off

200 thousand D 90 - K 99 - profit from the sale of goods was revealed

Gross revenue

In practice, the term "Gross Revenue" is sometimes used. This term was actively used until 2010. Gross Revenue and Revenue mean the same thing. Recently, the term “Gross Revenue” is used less and less. Instead, the term Revenue is usually used.

Revenue in IFRS

The term “Revenue” is also used in IFRS. Thus, “International Financial Reporting Standard (IAS) 18 “Revenue” is applied (put into effect on the territory of the Russian Federation by Order of the Ministry of Finance of Russia dated December 28, 2015 N 217n). This standard defines revenue accounting rules similar to Russian ones. Thus, the purpose of this standard is stated:

“The Framework for the Preparation and Presentation of Financial Statements defines income as an increase in economic benefits during the reporting period in the form of income or improvement in the quality of assets or a decrease in the amount of liabilities that lead to an increase in equity capital not related to contributions from capital participants. Revenue includes both revenue and other income. Revenue is income that arises in the ordinary course of business of an organization and can be referred to by various terms such as sales, fees, interest, dividends and royalties. The purpose of this standard is to prescribe the accounting treatment of revenue arising from certain types of transactions and events.

The main issue in accounting for revenue is determining when it should be recognized. Revenue is recognized when it is probable that future economic benefits will flow to the entity and those benefits can be measured reliably. This Standard specifies the conditions under which these criteria will be satisfied and, therefore, revenue will be recognized. This standard also provides practical guidance on the application of these criteria."

The standard defines:

Revenue is the gross inflow of economic benefits during a specified period arising in the ordinary course of business of an organization if it results in an increase in equity capital other than contributions from capital participants. (clause 7)