VAT is perhaps the most complicated tax, which has a lot of legislative exceptions in the order of its calculation and payment. Much has been said about him, a lot of situations have been considered, and subjects of entrepreneurial activity tirelessly continue to pay penalties due to incorrect accounting due to misunderstanding of the current legislation. In this article we will try to deal with this complex tax.
The essence of the value-added tax
In the theory of tax accounting, there are two broad groups of fiscal obligations - one-time retention and cumulative.
The first, and what their name says, imposes a burden on a certain list of goods and services once, and this occurs at a clearly established stage of pricing. The latter have a complex structure and are subject to withholding for each trade operation.
And the VAT - what is it? This is the aggregate union of the above groups. The burden on value added, undoubtedly, should be attributed to the most complex and multistage, therefore it has such a significant share in the fiscal policy of the Russian Federation.
So, the VAT - what is it? This is an indirect tax of a traditional nature, which represents an allowance for a certain group of goods and services, which ultimately is paid off by the consumer. Although the obligations are imposed on the business entity, but more on this later.
Who is the payer of the tax?
VAT payers are legal entities, individual entrepreneurs, and also those persons engaged in moving goods across the state border of the Russian Federation and recognized as native speakers of the obligations under the value added tax in accordance with the Customs code of the Russian Federation.
At the same time, an enterprise can achieve exemption from a fiscal duty on legal grounds. Or, to apply for a change in the rate (after all, as you know, there is a VAT of 18, 0 and 10%).
With regard to exemption from payment of tax, the business entity must independently take care of the implementation of this right. To do this, it is necessary before the 20th day of the proposed month to apply to the fiscal authorities with all the necessary documents, including extracts from the journal of business transactions and balance sheets, as well as all the necessary primary documents in the form of invoices.
Object of taxation
VAT - what is it? This is an indirect fee, the object of which is a list of certain operations:
- ordinary sale of goods;
- gratuitous sale of property, property rights or sale in accordance with a compensation contract;
- transfer of goods and services for personal use, while their value is deducted when calculating the fiscal burden on profits;
- performance of construction and installation works intended for own use;
- crossing goods state border of.
It is important to understand that to impose a tax burden on VAT, the sale of goods must be carried out on the territory of the Russian Federation. In the case of export operations, the initial loading of the object of taxation should take place within the state border.
Base of taxation
VAT – what is it? It's a fiscal obligation, as a base of which is the cost of sold goods and services, and in its total amount does not include excise duty and sales tax. This denomination accepted the price stated in the contract of purchase and sale, regardless of whether it is above or below cost and fair market value. Therefore, under current law, it is the base of VAT until until proven otherwise.
Value added tax is a fiscal fee with a lot of reefs, so it happens that government agencies take control of the pricing of a particular product (service). Often this happens when transactions are concluded between related parties, if barter transactions are involved or the market price fluctuates significantly in its nominal value.
The calculation of value added tax today is made according to three rates - 18, 10 and 0%.
0% VAT is used in the following cases:
- export sales of goods, which is carried out by crossing the state border of the Russian Federation in cooperation with the customs service;
- the provision of services and works aimed at the production of goods, the export of which is planned to be carried out outside the country for further sale;
- direct transportation of goods for further export.
The 10% rate is applied in a number of the following cases:
- at sale of the goods of the food purpose specified in art. 164 of the Tax Code of the Russian Federation;
- sale of periodicals;
- manufacturing of consumer goods;
- literature of educational and scientific nature;
- goods for medical use.
The VAT rate of 18% applies to the sale and manufacture of other goods and services.
Like other varieties of tax burden, fiscal obligation with respect to value added has a clear calendar attachment set by law. Thus, the VAT is limited to one calendar month. However, there are a number of specific business entities for which the period is one quarter. This group includes those enterprises whose net profits do not exceed two million rubles per month.
The basis for payment of value added tax is the actual sale of goods and services subject to the imposition of a fiscal burden, and it is made after the end of the legislatively allotted period, but not later than the 20th of the following month.
Forms of tax reporting
According to the allotted timeframe, VAT payers are obliged to submit to the fiscal authorities all the necessary documentation regarding the burden. At the same time, it should contain not only a declaration, but also primary information concerning disputable and questionable transactions.
Accounting documents are required to pass all the entities-taxpayers (even those who are engaged exclusively with the import and, accordingly, all of their products is taxed at 0% VAT). However, in this case, the Declaration is of atypical form, according to the approved order of the Ministry of Finance of the Russian Federation No. 31H from 31.03.2005 G.
All documentation necessary for reporting is provided by the business entity regarding the place of registration of the entrepreneur.
Methods of calculation and payment of VAT, an example of use
So, for example, we have an enterprise - LLC. In order to calculate the tax base, the accountant must first take as a constant the market value of the goods and services sold, after which from the received amount, deduct all the necessary quantities, including the legally permitted benefits.
In addition, denominations do not include the amounts of liabilities that were presented to the payer of the burden, and subsequently repaid indirectly in the acquisition of any benefits. This rule applies to the following operating categories:
- Acquisition of property rights, as well as goods and services for the purpose of their use in the further operational activities of the enterprise.
- Purchase of assets for their further re-implementation.
- Acquisition of imported goods from a non-resident non-payer of fiscal obligations to the state treasury of the Russian Federation.
- Those amounts of VAT that relate to the returned goods from the buyer.
- Received services from contractors when performing installation work.
- Acquisition of services and goods by employees on a business trip.
Operations that are not subject to VAT calculation
There are a number of subtle points in the organization of operating activities, which the value-added tax does not in any way concern. This provision is regulated by the current tax code of the Russian Federation, namely Art. 149.
In other words, the exemption is called the exemption. In order for a business entity can apply on its activities, its fiscal policy should be separate records, which will be separately maintained for transactions subject to the imposition of the burden of value added tax, and others.
In addition, the company must have all the necessary licenses, allowing in some cases to refuse to pay value-added tax on legal grounds.
Also, we do not forget about import operations, which are not subject to imposing a fiscal burden, since the goods are purchased from a foreign supplier that has nothing to do with our legislation.