VAT, income tax and property tax: changes from January 1, 2021

The seller is a VAT payer.

Until 01/01/2019, clause 31 clause 2 art. 149 of the Tax Code of the Russian Federation, according to which the sale of waste paper was exempt from VAT.

From this date, the norm lost force, as a result of which the sale of waste paper (paper and cardboard production and consumption waste, rejected and out-of-use paper, cardboard, printed products, business paper, including documents with an expired shelf life) fell into VAT-taxable transactions. However, the seller does not calculate and pay the tax in this case; this responsibility is assigned to the buyer (recipient) of waste paper - the tax agent (paragraph 2, paragraph 3.1, article 166, paragraph 8, article 161 of the Tax Code of the Russian Federation).

For your information:

For the purpose of applying paragraph 8 of Art. 161 of the Tax Code of the Russian Federation, the recipients of goods are organizations and individual entrepreneurs who have the right of ownership of the goods, including on a gratuitous basis.

The procedure for calculating VAT by a tax agent is applied when selling waste paper after 01/01/2019, regardless of the fact that this product was purchased before 01/01/2019 or an advance payment for it was received in 2021 (Letter of the Ministry of Finance of Russia dated 01/25/2019 No. 03‑07‑11/ 3969).

But buyers are required to calculate and pay tax to the budget only if they purchase waste paper from sellers - VAT payers, who will inform the buyer about the upcoming “VAT obligation” by issuing him an invoice filled out in a special way. As noted in paragraph. 2 clause 5 art. 168 of the Tax Code of the Russian Federation, when taxpayers sell goods specified in paragraph. 1 clause 8 art. 161 of the Tax Code of the Russian Federation, as well as upon receipt of payment (partial payment) for upcoming deliveries of such goods, he must draw up invoices, adjustment invoices excluding VAT amounts. At the same time, in such invoices, adjustment invoices, the inscription or stamp “VAT is calculated by the tax agent” is affixed (Letter of the Ministry of Finance of Russia dated 02/20/2019 No. 03‑07‑14/10689).

Note:

The corresponding inscription is made in column 7 of the invoice. Columns 8 (amount of tax) and 9 (cost of goods with tax) are not filled in (Letter of the Federal Tax Service of Russia dated January 16, 2018 No. SD-4-3 / [email protected] ).

At the same time, in some situations (as follows from paragraph 1, clause 3.1, article 166 of the Tax Code of the Russian Federation), waste paper sellers will have to calculate and pay VAT to the budget. Such cases are provided for in paragraph. 7 and 8 art. 161, paragraphs. 1 clause 1 art. 164 of the Tax Code of the Russian Federation, as well as when selling the specified product to “physicists” who are not individual entrepreneurs.

For your information:

Regardless of whether waste paper sellers calculate VAT on their own (paragraph 1, clause 3.1, Article 166 of the Tax Code of the Russian Federation) or “transfer” this responsibility to buyers - tax agents, they (sellers - VAT payers) have the right to deduct the amount of "input" tax for goods (work, services) purchased by them, used to carry out operations for the sale of waste paper, regardless of the fact of payment for these goods (work, services). In addition, the need to keep separate records when such taxpayers sell waste paper and carry out other activities subject to VAT is eliminated (letters of the Ministry of Finance of Russia dated November 27, 2018 No. 03-07-14/85348, dated December 3, 2018 No. 03-07-11/ 87234).

VAT, income tax and property tax: changes from January 1, 2021

This year the Russian Government announced tax reform. Taxes and fees will increase in Russia. Our expert Elena Antanenkova spoke about important innovations that will come into force on January 1, 2021.

VAT

The VAT rate will increase from 18 to 20%

From 01/01/2019, the VAT tax rate provided for in paragraph 3 of Article 164 of the Tax Code of the Russian Federation increases from 18 to 20% (clause 3 of Article 1, clause 3 of Article 5 of the Federal Law of 03.08.2018 No. 303-FZ “On Amendments in certain legislative acts of the Russian Federation on taxes and fees" (hereinafter referred to as Law No. 303-FZ). At the same time, the 10% rate is not canceled.

It will be necessary to apply the new VAT rate to goods (works, services) shipped from January 1, 2021. The 20% rate also applies in cases where the input VAT on purchased goods is 18%. That is, when selling such goods after 01/01/2019, you must also apply a rate of 20%.

However, there may be situations where within the same transaction it will be necessary to apply different VAT rates. For example, in the case when payment and shipment of goods (work, services) occur in different tax periods, in which different VAT rates are applicable.

Neither Law No. 303-FZ nor the Tax Code of the Russian Federation establishes transitional provisions on taxation of transactions within transactions that were concluded before January 1, 2021 and continue to be carried out after this date.

In general, when selling goods (work, services) in 2021, the seller will apply a rate of 20%, even if VAT was previously calculated on the advance payment based on the rate of 18/118. He can only take as a deduction the actually calculated tax, that is, accrued from the previous rate. When accepting goods received (work performed, services provided) for accounting in 2021, the buyer will accept VAT as a deduction at the new rate of 20%, which the seller will present to him. If the buyer previously accepted VAT deduction on the advance payment at the rate of 18/118, he needs to restore the tax at the same rate.

But the cost of goods (work, services) under transferable transactions will depend on the terms of the contract. The total contract price payable to the supplier (contractor, performer) is determined taking into account VAT. If the tax is not highlighted in the contract, then by default it is included in the contract price. And then from this price the seller (contractor, performer) independently allocates the amount of VAT using the calculation method. (Clause 17 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation dated May 30, 2014 No. 33, Letter of the Ministry of Finance of Russia dated April 20, 2018 No. 03-07-08/26658). An exception is the case when, from the terms of the contract or the circumstances preceding its conclusion, it follows that the tax is not taken into account in the price of the contract

Let's look at examples of how the wording of the contract will affect the amount of VAT in a situation where a 100% advance payment was paid before 01/01/2019, and the goods were delivered after 01/01/2019.

Example 1. The agreement uses the following wording: “The cost is 1,000 rubles, including VAT” or “The cost is 1,000 rubles, including 18% VAT.”

In accordance with paragraph 2 of Article 422 of the Civil Code of the Russian Federation, a law adopted after the conclusion of an agreement and establishing rules other than those in force at the conclusion of the agreement, extends its effect to the relations of the parties under such an agreement only in the case where this is directly established in the law. Law No. 303-FZ does not contain such a clause; therefore, the seller does not have the right to unilaterally change the terms of the contract and increase the price due to an increase in VAT.

Therefore, in this example, the actions of the parties will be as follows.

Salesman:

— will calculate VAT on the advance at the rate of 18/118 (152.54 rubles) and issue an invoice for the advance in the amount of 1,000 rubles;

— will calculate VAT at a rate of 20% (166.67 rubles) and issue an invoice for the supply of goods in the amount of 1,000 rubles;

— will deduct VAT from the advance payment (RUB 152.54);

— will pay VAT to the budget in the amount of 166.67 rubles.

Buyer:

— will deduct VAT from the advance payment at the rate of 18/118 (RUB 152.54);

— will restore VAT on the advance payment (RUB 152.54);

— will deduct VAT at a rate of 20% (RUB 166.67).

In this situation, when the VAT rate increases to 20%, the total cost of goods does not change, but the amount of tax (+2%) is paid at the expense of the seller.

Example 2. The contract uses the wording “The cost is 1,000 rubles, in addition to VAT.”

In this case, according to the agreement, the cost of the goods before tax does not change, and VAT is charged “on top”, so the actions of the parties will be as follows.

Salesman:

— will calculate VAT at the rate of 18% (180 rubles) and issue an invoice for the advance in the amount of 1,180 rubles;

— will calculate VAT and issue an invoice for supplies in the amount of 1,200 rubles. (VAT 20%);

— will restore (accept for deduction) VAT from the advance payment (180 rubles);

— will pay VAT in the amount of 200 rubles to the budget.

Buyer:

— will accept VAT for deduction at the rate of 18/118 (180 rubles);

— will restore (pay to the budget) VAT from the advance (180 rubles);

— will deduct VAT at a rate of 20% (200 rubles).

In this situation, the total cost of goods (work, services) including tax will change by the amount of additional VAT (+2%) presented to the buyer. That is, next year the buyer will pay more.

Therefore, if the agreement is of a long-term nature (will move from 2018 to 2021), then it is advisable for the taxpayer to enter into an additional agreement with the counterparty and regulate in more detail the procedure for changing the cost of goods in connection with an increase in the rate to 20%.

For example, you can include a condition that the total cost of goods remains unchanged, and when the tax increases, the cost of goods without it decreases at the same time. Or, conversely, if the parties agree to increase the total cost of the goods, then it is advisable to indicate a new price that includes VAT at a rate of 20%.

Foreign providers of electronic services via the Internet will pay taxes themselves

From 01/01/2017, Chapter 21 of the Tax Code of the Russian Federation established a special mechanism for taxation of electronic services provided by foreign companies to individuals, the purpose of which was to ensure equal rights for Russian and foreign organizations selling electronic services via the Internet. That is, VAT on the cost of services provided to individuals was paid by the foreign company itself, and if services were provided to entrepreneurs or organizations, not only directly, but also through intermediaries, then these service users acted as tax agents.

Let us remind you that the provision of services in electronic form means the provision of services through an information and telecommunications network, including via the Internet, automatically, using information technology. The full list of such electronic services is established by paragraph 1 of Article 174.2 of the Tax Code of the Russian Federation. However, it is determined that for VAT purposes the services in electronic form specified above do not include, in particular, the following operations:

- sale of goods (work, services), if when ordering via the Internet, the delivery of goods (performance of work, provision of services) is carried out without using the Internet;

— implementation (transfer of rights to use) programs for electronic computers (including computer games), databases on tangible media;

— provision of consulting services via e-mail;

— provision of services for providing access to the Internet.

Federal Law No. 335-FZ of November 27, 2017 “On Amendments to Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation” (hereinafter referred to as Law No. 335-FZ) introduced a number of significant amendments to paragraphs 2 – 4 of Article 174.2 The Tax Code of the Russian Federation and a number of tax norms corresponding to them. Their essence is this.

From 01/01/2019, electronic services of foreign companies provided via the Internet will be subject to taxation, regardless of who their consumer (buyer) is . At the same time, Russian organizations and entrepreneurs will be relieved of their duties as a tax agent for calculating and paying VAT if they purchase electronic services for themselves, because paragraph 9 of Article 174.2 of the Tax Code of the Russian Federation will lose force.

The obligation to calculate and pay VAT when providing electronic services will be assigned only to foreign IT companies or their agents involved in settlements with the buyer. For this purpose, foreign providers of electronic services are subject to registration with the tax authorities as taxpayers. Information about such foreign organizations (name, tax identification number, checkpoint and date of registration with the tax authorities) must be posted on the official website of the Federal Tax Service of Russia on the Internet information and telecommunications network.

In this case, the tax base, as before, will be determined as the cost of services, taking into account the amount of tax calculated based on the actual prices of their sales. However, when calculating, a rate of 16.67% will now be applied (clause 5 of Article 174.2 of the Tax Code of the Russian Federation as amended).

The new edition of paragraph 5 of Article 148 of the Tax Code of the Russian Federation clarifies that documents confirming the place of provision of IT services are registers of transactions indicating information about the fulfillment of the conditions provided for in paragraphs 2 and - 17 of subparagraph 4 of paragraph 1 of this article.

The list of documents to confirm the deduction for IT services is determined by the new paragraph 2.1 of Article 171 of the Tax Code of the Russian Federation. To deduct taxes claimed by a foreign company registered with the tax authorities on the basis of paragraph 4.6 of Article 83 of the Tax Code of the Russian Federation, when providing Internet services, the buyer will need :

— an agreement and (or) settlement document with the allocated tax amount and an indication of the TIN and KPP of the foreign company (this information about the foreign company is posted on the official website of the Federal Tax Service of Russia);

— documents for payment transfer, including VAT.

Thus, a Russian buyer (organization or entrepreneur), in the case of purchasing services in electronic form from foreign organizations, will be able to offset the presented VAT if there is an agreement and allocation of VAT in the invoice (that is, without issuing invoices), as well as if there is information about this foreign companies on the website of the Federal Tax Service of Russia.

Payers of Unified Agricultural Tax will become taxpayers of VAT

The following significant changes to Chapter 21 of the Tax Code of the Russian Federation, introduced into Law No. 335-FZ, are related to the fact that from January 1, 2019, organizations and individual entrepreneurs applying the taxation system for agricultural producers (hereinafter referred to as Unified Agricultural Tax payers) will also be recognized as VAT taxpayers (Art. 346.1 of the Tax Code of the Russian Federation in the new edition of the Tax Code of the Russian Federation). Like other entities paying this tax, they will be able to deduct input VAT. This will be possible since subparagraph 8 of paragraph 2 of Article 346.5 will no longer be in force from January 1, 2019.

At the same time, payers of the Unified Agricultural Tax will receive the right to be exempt from calculating and paying VAT if certain conditions are met (Article 145 of the Tax Code of the Russian Federation as amended by Law No. 335-FZ), namely:

- if they switch to paying the Unified Agricultural Tax and exercise the right to exemption in the same calendar year;

- if during the previous tax period under the unified agricultural tax, the amount of income received from the sale of goods (work, services) in the implementation of types of entrepreneurial activities to which the specified taxation system is applied, excluding VAT, did not exceed in aggregate:

• 100 million rubles for 2021;
• 90 million rubles for 2021;
• 80 million rubles for 2021
• 70 million rubles for 2021;
• 60 million rubles for 2022 and subsequent years.

In order to exercise the right to exemption, a company or entrepreneur using the unified agricultural tax will need to submit a corresponding notification to its tax office no later than the 20th day of the month from which the right to exemption is used .

Moreover, please note that Unified Agricultural Tax payers who have taken advantage of this right will not be able to voluntarily renounce it in the future.

However, under certain circumstances, the payer of the Unified Agricultural Tax may lose the right to use it.

You can lose your right to exemption if you exceed the income limit or when selling excisable goods. In this case, the loss of the right will occur from the 1st day of the month in which the mentioned circumstances occurred, and the amount of VAT for this month will have to be restored and paid to the budget.

If the right to exemption from VAT is lost, the Unified Agricultural Tax payer does not have the right to use it again (clause 5 of Article 145 of the Tax Code of the Russian Federation as amended by Law No. 335-FZ). If organizations and entrepreneurs - payers of the unified agricultural tax do not take advantage of the exemption from paying VAT on the basis of Article 145 of the Tax Code of the Russian Federation, then they will calculate and pay tax in the general manner provided for by Chapter 21 of the Tax Code of the Russian Federation.

Benefits for the sale of waste paper will be canceled

Changes have been made to the VAT tax benefits provided for in Article 149 of the Tax Code of the Russian Federation. In particular, Federal Law No. 174-FZ of June 2, 2016 “On Amendments to Article 149 of Part Two of the Tax Code of the Russian Federation” (hereinafter referred to as Law No. 174-FZ) will abolish the now obligatory benefit for the sale of waste paper (clause 2 of Art. 2 of Law No. 174-FZ). For the purposes of the Tax Code of the Russian Federation, waste paper refers to paper and cardboard production and consumption waste, rejected and out-of-use paper, cardboard, printed products, business papers, including documents with an expired shelf life.

Since from 01/01/2019, subclause 31 of clause 2 of Article 149 of the Tax Code of the Russian Federation will lose force, the sale of waste paper on the territory of the Russian Federation will be taxed in the general manner, that is, at a rate of 20%.

Income tax

Holiday expenses for employees and members of their families will reduce the tax base

From January 1, 2019, Chapter 25 of the Tax Code of the Russian Federation will somewhat clarify the composition of standardized expenses. Now, for profit tax purposes, as part of labor costs, organizations will be able to take into account the costs of paying for vouchers for employees and members of their families , as indicated by Article 255 of the Tax Code of the Russian Federation as amended by Federal Law No. 113-FZ of April 23, 2018 “On Amendments to Articles 255 and 270 of Part Two of the Tax Code of the Russian Federation" (hereinafter referred to as Law No. 113-FZ).

on the territory of the Russian Federation will be taken into account in the composition of labor costs in accordance with the agreement on the sale of a tourism product , concluded by the employer with the tour operator or travel agent, and provided:

- employees;

- spouses of employees;

- parents of employees;

- children of employees (including adopted ones) under the age of 18 years, wards under the age of 18 years, as well as children (including adopted ones) under the age of 24 years, studying full-time in educational organizations, former wards (after termination of guardianship or trusteeship) under the age of 24, studying full-time in educational organizations.

At the same time, for the purposes of taxation of profits, services for the organization of tourism, sanatorium-resort treatment and recreation on the territory of the Russian Federation will be considered:

— services for transporting tourists across the territory of the Russian Federation by air, water, road and (or) rail to their destination and back, or along another route agreed upon in the contract for the sale of a tourist product;

— tourist accommodation services in a hotel(s) or other accommodation facility(s), sanatorium-resort treatment and recreation facility located on the territory of the Russian Federation, including tourist food services, if food services are provided in conjunction with hotel accommodation services or other accommodation facility, sanatorium-resort treatment and recreation facility;

— sanatorium and resort services;

— excursion services.

For this category of expenses, a standard has been established: they cannot exceed 50 thousand rubles per year for each citizen sent on vacation, while the amount of such expenses, together with contributions under voluntary personal insurance contracts for employees and expenses for voluntary medical insurance for employees, cannot exceed 6% labor costs.

Organizations will be able to apply the new norms of Article 255 of the Tax Code of the Russian Federation and Article 270 of the Tax Code of the Russian Federation to agreements on the sale of tourism products concluded from 01/01/2019 (Article 2 of Law No. 113-FZ).

Vessels registered in the Russian International Register of Ships will be included in depreciable property

Starting next year, Chapter 25 of the Tax Code of the Russian Federation will clarify the procedure for accounting for shipowners’ expenses . Thus, according to Federal Law No. 137-FZ of June 4, 2018 “On Amendments to Articles 256 and 270 of Part Two of the Tax Code of the Russian Federation” (hereinafter referred to as Law No. 137-FZ), paragraph 5 of paragraph 3 of Article 256 of the Tax Code of the Russian Federation will no longer be in force, now excluding ships registered in the Russian International Register of Ships (hereinafter referred to as RMRS) from depreciable property for the period they are in this register. In addition, paragraph 48.5 of Article 270 of the Tax Code of the Russian Federation will be adjusted, thanks to which for tax purposes the expenses of shipowners associated with the receipt of income specified in subparagraphs and (or) 33.2 of paragraph 1 of Article 251 of the Tax Code of the Russian Federation will not be taken into account.

Namely:

- income of shipowners received from the operation and (or) sale of ships registered in the RMRS, that is, income from the use of such ships for the transportation of goods, passengers and their luggage and the provision of other services related to the implementation of these transportations, provided that the point of departure and ( or) the destination is located outside the territory of the Russian Federation, as well as the rental of such vessels for the provision of such services;

- income of shipowners received from the operation and (or) sale of ships built by Russian shipbuilding organizations after January 1, 2010 and registered with the RMRS, that is, income from their use for the transportation of goods, passengers and their luggage, towing and provision of these services and types activities regardless of the location of the point of departure and (or) destination, as well as the rental of such vessels for this use;

Now, on the basis of clause 48.5 of the Tax Code of the Russian Federation, shipowners’ expenses for maintenance, repairs and other purposes related to the maintenance, operation, and sale of ships registered in the RMRS are not taken into account for tax purposes.

Main technological equipment will be depreciated at increased rates

The change will affect equipment operated using the best available technologies and included in the list approved by the Government of the Russian Federation.

Federal Law No. 219-FZ of July 21, 2014 “On Amendments to the Federal Law “On Environmental Protection” and Certain Legislative Acts of the Russian Federation” introduced subparagraph 5 into Article 259.3 of the Tax Code of the Russian Federation, according to which for fixed assets related, in accordance with approved by the Government Russian Federation List, to the main technological equipment operated in the case of the use of the best available technologies, taxpayers have the right to apply a special coefficient to the basic depreciation rate, but not higher than 2.

The said List was approved by Order of the Government of the Russian Federation dated June 20, 2017 No. 1299-r “On approval of the list of main technological equipment operated in the case of the use of the best available technologies.” Despite the fact that it has not yet entered into force, by Order of the Government of the Russian Federation dated 04/07/2018 No. 622-r “On amendments to the Order of the Government of the Russian Federation dated 06/20/2017 No. 1299-r” changes were made to it. The list has more than doubled. For example, it appeared:

— autoclave with a useful volume of 100 cubic meters. m;

— roller briquette press with a capacity of 800 to 1000 kg/h;

— reactor-cooler with a capacity of 50 to 80 cubic meters. m and with a working pressure of 0.49 MPa.

From January 1, 2019, taxpayers will be able to calculate depreciation on an expanded list of such equipment.

Payment to the Platon system will not be fully recognized as expenses

Based on paragraph 4 of Article 2 of the Federal Law of July 3, 2016 No. 249-FZ “On Amendments to Part Two of the Tax Code of the Russian Federation” (hereinafter referred to as Law No. 249-FZ), paragraph 48.21 of Article 270 of the Tax Code of the Russian Federation will no longer be in force, and therefore payers From next year, corporate income tax authorities will not be able to account for payments to the Platon system as part of tax expenses in the part that is offset against the payment of transport tax.

The same applies to “simplified” ones with the object “Income reduced by the amount of expenses.” By Law No. 249-FZ, paragraphs 2 and 3 of subparagraph 37 of paragraph 1 of Article 346.16 of the Tax Code of the Russian Federation are declared invalid from January 1, 2019.

Property tax

The movable property tax will be abolished again

Now the question of whether to transfer the tax or not depends on the decision of the region. The tax rate for movable property in 2018 cannot exceed 1.1%. If in the region there is neither a law introducing an exemption from taxation of movable property, nor a law establishing a tax rate in relation to such property, then movable fixed assets registered in 2013 - 2021 are taxed at the maximum rate of 1.1%. (clause 2 of article 381.1 of the Tax Code of the Russian Federation)

However, from 2019 there will be no need to pay tax on movable property. From January 1, 2021, Federal Law No. 302-FZ dated August 3, 2018 “On Amendments to Parts One and Two of the Tax Code of the Russian Federation” (hereinafter referred to as Law No. 302-FZ) paragraph 25 of Article 381 and paragraph 2 of Article 381.1 of the Tax Code of the Russian Federation were repealed .

The property tax benefit under the Unified Agricultural Tax will be partially canceled

Currently, entities on the Unified Agricultural Tax are generally exempt from paying property tax. As for organizations, the exemption applies in full, and for individual entrepreneurs - in part of the property that is used for business activities subject to the Unified Agricultural Tax. From January 1, 2021, Federal Law No. 335-FZ dated November 27, 2017 (hereinafter referred to as Law No. 335-FZ), paragraph two of paragraph 3 of Article 346.1 is declared invalid. Therefore, from next year, only the property that is involved in the production, processing and sale of agricultural products, as well as in the provision of services by producers of agricultural goods (clause 12 of Article 9 of Law No. 335-FZ) will not be taxed. Companies and entrepreneurs on the Unified Agricultural Tax will have to pay tax on the remaining property.

As we can see, despite some relief for taxpayers, the overall tax burden on business will increase. And these changes must be taken into account both in contract work this year and when drawing up forecast budgets for the next year.

Seller is an organization that is not a VAT payer or an individual.

If waste paper is sold by a “special regime” (an organization or individual entrepreneur that is not a VAT payer) or a VAT payer exempt from taxpayer obligations under Art. 145 and 145.1 of the Tax Code of the Russian Federation (here there may also be payers of the Unified Agricultural Tax who have been paying VAT since January 1, 2019, but met the conditions and took advantage of the exemption under Article 145 of the Tax Code of the Russian Federation), buyers do not have duties as a tax agent. In this case, the seller will make an appropriate entry in the contract and the primary accounting document or indicate.

For your information:

Persons exempt from paying VAT do not prepare an invoice; such an obligation is assigned only to the payers of this tax (clause 3 of Article 169 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance of Russia dated February 28, 2018 No. 03-07-11/12711).

When purchasing scrap metal from “physicists” (by virtue of clause 1 of Article 143 of the Tax Code of the Russian Federation, they are not recognized as VAT payers, with the exception of cases related to the movement of goods across the customs border of the Customs Union), buyers of waste paper are also not required to calculate and pay VAT.

This is also confirmed by the Ministry of Finance in Letter No. 03-07-14/85863 dated November 28, 2018: in the case of purchasing waste paper from value added tax evaders, including individuals, there is no obligation to calculate value added tax for waste paper buyers.

We submit VAT reports in the first quarter of 2021

You must report VAT for the first quarter by April 25. The form of the declaration and the procedure for its preparation have changed in 2021: now, where the rate was 18%, a rate of 20% is indicated; Additional lines have been added to sections, operation codes have been updated. Read about these and other changes that should be taken into account when preparing your declaration in the article .

Attention!

The form of the declaration and the procedure for filling it out (approved by order of the Federal Tax Service of Russia dated October 29, 2014 No. ММВ-7-3/558 ) were changed by order of the Federal Tax Service of Russia dated December 28, 2018 No. SA-7-3/853 .

New VAT rate - 20%

From 2021, the tax rate has been increased from 18 to 20%. In this regard, in the third and ninth sections of the declaration, as well as in the first appendix to the ninth section, the VAT rate of 20% is now noted. Line 030 of the third section also reflects the rate of 20/120 instead of the previous rate of 18/180.

In addition, additional lines were added to the third section of the form: 041 for the tax base with a rate of 18% and 042 for the rate of 18/118. These lines are completed in relation to the issuance of a correction invoice for supplies that were made before 2021, for example, when returning goods.

It will be easier for those who fill out a declaration in Kontur.Externe to do everything correctly. The system already reflects changes related to the new VAT declaration format. Finished declarations are checked for formatting and calculation errors, and it is also monitored that the amounts from the applications correspond to the amounts in the declaration. Extern will also check the declarations for discrepancies in data with counterparties. In short, you will report VAT in a few clicks.

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New lines have appeared

For exporters included:

• line 043 of section 3 - to reflect VAT and the tax base of companies that refused to use the 0% rate;
• line 036 of section 9 – product code for delivery to the EAEU (Kazakhstan, Belarus, Armenia, Kyrgyzstan). In Appendix 1 to Section 9, the corresponding line under number 116 has been added.

For participants in the “tax free” system, section 3 of the declaration included the following lines:

• 044 – to designate the tax base, as well as the amount of tax on transactions of retail sales of goods to foreign citizens;
• 135 – to reflect the deduction of this tax amount after the export of goods outside the EAEU.

The procedure for filling out the declaration has changed

The Federal Tax Service has made adjustments to the Procedure for filling out a VAT return:

a) intermediaries acting as tax agents in the provision of services for the provision of containers and rolling stock for railway transportation;

b) buyers and sellers of raw hides, waste paper and scrap metal.

Attention!

From the beginning of 2021, operations for the sale of waste paper are no longer exempt from taxation (Federal Law No. 424-FZ ).

Firstly, an exception for tax agents from clause 8 of Art. 161 of the Tax Code of the Russian Federation, which do not apply to payers of value added tax or are exempt from the obligation to pay it under Article 145 of the Tax Code of the Russian Federation.

Now such agents will be able to fill out a section on one page for all goods specified in paragraph 8 of Article 161 of the Tax Code of the Russian Federation (raw hides; waste paper; waste and scrap metals; secondary aluminum and its alloys), which were received from all sellers paying VAT for the past tax period (clause 36 of the Procedure). In lines 010, 020 and 030 they should put a dash, and in line 60 they should mark the total amount of tax to be paid (letter of the Federal Tax Service of Russia dated 04/19/2018 No. SD-4-3/7484).

Secondly, the third section now reflects transactions for the purchase of raw hides, waste paper and scrap metal, as well as the calculation of tax for the seller. Information on invoices for such transactions is indicated in the eighth and ninth sections (codes “41” - “44”).

Sellers of raw hides, waste paper, and scrap metal do not need to report sales transactions in the third section of the form. Information about invoices for such sales is indicated only in the ninth section (codes “33” and “34”).

Transaction codes have been updated

The Federal Tax Service has changed the names of operations for a number of codes, so the codes that were used previously acquired a different meaning. In addition, 27 new transaction codes have been added to the declaration.

Please note that from January 25, 2019, the tax service will send requests for the submission of explanations to VAT returns in a modified format (departmental letter dated December 3, 2018 No. ED-4-15 / [email protected] ). In particular, new error codes “5” – “9” will be applied:

5 - the invoice date is not indicated or the date is indicated after the reporting period;

6 - the deduction claimed in section 8 does not fall within three years;

7 - Section 8 states a deduction on an invoice generated before the date of state registration;

8 — the transaction type code is incorrect;

9 - the cancellation of entries in section 9 (its appendix) was made with an error.

VAT deduction from the tax agent.

Having received from the seller - the VAT payer the corresponding instruction that the tax is calculated by the tax agent, the buyer of waste paper fulfills the obligation assigned to him, regardless of the applied taxation regime, as well as exemption from the obligations of the VAT payer.

At the same time, the buyer (tax agent) has the right to deduct the VAT calculated when purchasing waste paper only if he is the payer and the goods purchased by him are intended for transactions subject to VAT (clause 3 of Article 171 of the Tax Code of the Russian Federation).

In Letter No. 03-07-14/85863 dated November 28, 2018, the Ministry of Finance indicated that VAT amounts calculated by tax agents - buyers of waste paper based on invoices issued by sellers will be deducted in the tax period in which these goods are supplied for registration. As a rule, the tax period in which tax agents calculate tax for the seller - a VAT payer, coincides with the tax period in which tax agents have the right to deduct tax as a buyer.

Individual income from the sale of waste paper is not subject to personal income tax

From 2021, individuals are exempt from paying personal income tax when receiving income from the delivery of waste paper.

Waste paper: what is it?

Waste paper is waste from consumption, processing and production of various types of paper and cardboard. They are suitable for reuse as secondary raw materials.

Waste paper is classified according to quality into groups A, B, C.

The main and most popular at all collection points and processing plants is category A, since it contains the highest quality and purest grades of cellulose products, which include:

• MS-1A is white paper intended for printing of the highest quality and not contaminated with ink or any other substances;
• MS-2A - waste from the production of first-grade cellulose products, obtained as a result of industrial cutting, possibly in the form of trimmings and having various shades of color;
• MS-3A – residues from production or trimming of unbleached and sulphate paper;
• MS-4A - packaging bags, possibly used with paper as their material and not contaminated with waterproof substances.

Waste paper brands of the second most important category B (average quality) contain the following names of paper products:

• MS-5B – corrugated cardboard, as well as its waste, used in production enterprises;
• MS-6B – used cardboard with a printed pattern or print;
• MS-7B is printed products, as well as brochures, notepads, leaflets, receipts, notebooks, etc. All of them must be made of white paper, but not contain hardcover.

Types of waste paper of the third, most common group belong to category B, which includes pulp and paper products of lower quality.

• MS-8V – used newspapers and other products from similar material;
• MS-9V – industrial spools, sleeves and bushings based on paper;
• MS-10V – homogeneous paper pulp, casting and other parts of similar manufacturing technology;
• MS-11V - waste of industrial cardboard impregnated with non-wetting material or coated with third-party substances based on elements of chemical origin;
• MS-12V – cardboard of unnatural color, black or brown, with a copy layer;
• MS-13V is a type of waste cardboard or colored paper.

Sorting of waste paper is carried out at collection points for secondary raw materials and on conveyor belts of recycling plants to separate them into grades. In the future, each of them serves as material for new products.

Income from recycling waste paper

You can hand over waste paper at collection points of specialized organizations. Today, the money citizens receive for selling waste paper is recognized as income, so they must pay personal income tax at a rate of 13%.

Individuals must calculate and pay tax on their own based on the amount of income received. At the same time, you have the right to take advantage of a property tax deduction in the amount of up to 250 thousand rubles when selling “other property” (Article 220 of the Tax Code of the Russian Federation).

Federal Law No. 179-FZ of July 3, 2021 amended the Tax Code, namely Article 217, adding to the list of non-taxable personal income tax income.

Thus, according to the amendments, from January 1, 2019, amounts received by citizens from the delivery of waste paper will not be subject to personal income tax.

In practice, there is no actual budget revenue from collecting personal income tax on the sale of waste paper. It turns out that individuals do not declare this income from the delivery of waste paper.

Officials believe that the adopted law will significantly increase the collection of waste paper by individuals. The law is of great importance for issues related to solving environmental problems. By selling “paper waste” to collection points, citizens save forests and prevent environmental disasters.

* * *

We examined the general procedure for calculating VAT by buyers of waste paper - tax agents. The explanations of the competent authorities apply to this situation in relation to all goods specified in paragraph 8 of Art. 161 Tax Code of the Russian Federation.

Let's add a few words about the payment of taxes by tax agents. The procedure for calculating the amount of VAT that the tax agent must pay to the budget based on the results of the quarter is established in clause 4.1 of Art. 173 Tax Code of the Russian Federation. The tax is calculated cumulatively in relation to all goods listed in clause 8 of Art. 161 of the Tax Code of the Russian Federation, and in relation to all transactions for the past tax period. The total amount of tax calculated in accordance with clause 3.1 of Art. 166 of the Tax Code of the Russian Federation, increases by the restored amounts on the basis of paragraphs. 3, 4 p. 3 art. 170 of the Tax Code of the Russian Federation and is reduced by the amount of deductions provided for in paragraphs 3, 5, 8, 12 and 13 of Art. 171 of the Tax Code of the Russian Federation, regarding operations carried out by the named tax agents.

As for the VAT return, changes have now been made to the form, format and procedure for filling it out. Now for tax agents specified in paragraph 8 of Art. 161 of the Tax Code of the Russian Federation, a clear procedure is prescribed.

VAT: problems and solutions, No. 4, 2021

Features of applying the new VAT rate and filling out a VAT return

Oksana Smolanova examined the features of the transition to a new VAT rate from January 1, 2019, the nuances that arose in connection with this when reflecting transactions in the sales book, purchase book, when issuing invoices, as well as when filling out a declaration.

Additional tax payment in 2021: how to take into account the buyer and seller

The provisions of Federal Law No. 303-FZ dated August 3, 2018 increased the VAT tax rate from January 1, 2021. From the specified date in relation to goods (works, services), property rights specified in clause 3 of Art. 164 of the Tax Code of the Russian Federation, a tax rate of 20% is applied.

The main aspects of taxation during the transition to a new VAT rate were set out in detail by the Federal Tax Service in Letter No. SD-4-3 dated October 23, 2018 / [email protected] Tax officials noted that the increase in the tax rate does not change for the taxpayer the procedure and time for determining the tax base for VAT. In addition, there are no exceptions for goods sold under contracts concluded before 01/01/2019 and lasting into 2021 and subsequent years. Accordingly, starting from 01/01/2019, in relation to goods sold, the seller, in addition to the price, is obliged to present to the buyer for payment the amount of tax calculated at a rate of 20% (regardless of the date and conditions of concluding sales contracts).

Nuances arise for companies that entered into an agreement in 2018, and deliver goods in 2021. Let's consider the options.

The buyer made an advance payment in 2021

The seller, having received payment in 2021 for future delivery of goods, had to calculate VAT based on the rate 18/118 (clause 4 of Article 164 of the Tax Code of the Russian Federation). In 2021, when selling this product, he will apply a rate of 20% (clause 3 of Article 164), while deducting “advance” VAT based on the actually calculated tax at the previous rate (clause 6 of Article 172 of the Tax Code of the Russian Federation).

The buyer, having made an advance payment in 2021, had the right to deduct “advance” VAT at a rate of 18/118. In 2021, upon receipt of goods, VAT will be calculated at a new rate of 20%. The buyer will deduct input VAT on these goods and restore “advance” VAT at the rate of 18/118.

Since the amount of tax changed due to an increase in the rate, the parties had to agree on an additional payment of the tax difference (at whose expense and at what point the additional payment will be made), or on a change in the cost of goods, works, services. Unilateral changes to the terms of an agreement between commercial organizations are not permitted.

Additional payment at buyer's expense

Let's assume that the parties have agreed that the buyer will bear the costs of the rate increase. The following situations may arise.

A) The additional payment was made in 2021, but before the shipment date.

Such an additional payment should not be considered as an additional payment for the cost on which VAT must be calculated at a rate of 20/120, but as an additional payment of the tax amount (clause 1.1 of the Letter of the Federal Tax Service of Russia dated October 23, 2018 No. SD-4-3 / [email protected] ). In this case, the seller issues an adjustment invoice for the difference between the tax amount according to the invoice drawn up earlier using the tax rate of 18/118, and the tax amount calculated taking into account the amount of the additional tax payment.

When transferring surcharges to buyers who are not invoiced (for example, they are not VAT payers), the seller will be able to draw up a separate adjustment document. It will include summary data on all additional payments for the month (quarter), regardless of the CCP indicators. The adjustment document will need to be reflected in the sales book.

The additional payment will be reflected in the period of its receipt. In the seller’s declaration, it will be indicated in line 070, column 5, section. 3, and in column 3 on the same line you will need to put “0”.

When transferring VAT in the amount of 2% in 2021, the buyer takes for deduction this amount of tax paid on the basis of the seller’s adjustment invoice, in the manner prescribed by paragraph 6 of Article 172 of the Tax Code of the Russian Federation, and, accordingly, shows this amount in line 130 of section. 3 VAT returns.

When shipping goods in 2021, the seller will calculate VAT at a rate of 20%, issue an invoice for the total amount and deduct VAT from the advance payment. The buyer will deduct input VAT at a rate of 20% and will recover VAT on the advance payment.

B) The additional payment was made in 2021.

Then this is not recognized as an additional payment of tax, since the tax was still 18%. Therefore, it was necessary to calculate VAT on the amount of such additional payment in 2018 at the calculated rate of 18/118. Since there was a change in price, the seller had to issue an adjustment invoice for the difference between the indicators of the invoice drawn up by counterparties upon receipt of an advance at the settlement rate of 18/118, and the indicators after the change in the cost of goods (works, services), property rights using a settlement rate of 18/118.

Additional payment at the expense of the seller

If the seller was unable to agree with the buyer on an additional VAT payment of 2%, then the seller will pay the tax difference at his own expense. However, such an amount of VAT is not taken into account for profit tax purposes (Letter of the Ministry of Finance of Russia dated October 31, 2018 No. 03-07-11/78170).

Moreover, if the buyer does not agree to change the terms of the transaction and refuses to pay an additional VAT of 2%, some authors offer the following option for accounting for the additional payment (for example, see the article by S. N. Zaitseva. New VAT rate: welcome! // Communication services: accounting and taxation 2021. No. 1).

The seller will transfer the missing part at his own expense, and will reflect the accounts receivable in accounting. You can write it off as non-operating expenses after the statute of limitations expires (clause 2, clause 2, article 265 of the Tax Code of the Russian Federation). This point depends on the terms of the contract or agreements with the buyer. For example, if you present a demand to the counterparty for the repayment of a debt and a deadline for its fulfillment, three years will need to be counted from the day when the deadline for payment has passed (Clause 2 of Article 200 of the Civil Code of the Russian Federation). It is also possible to write off receivables that arose in connection with the sale of goods, were not repaid on time and were not secured by collateral when creating a reserve for doubtful debts in tax accounting (Article 266 of the Tax Code of the Russian Federation), as soon as it is recognized as hopeless (paragraph 2 p. 5 Article 266).

At the same time, a situation could arise where in the contract concluded in 2021, the cost of the goods excluding VAT was separately indicated, and then it was stated “in addition, VAT is paid at the current rate,” then in this case the seller, maintaining the price of the goods without tax, for shipments that will be made in 2021, the buyer will be subject to VAT at the new rate of 20%. In this case, payment of VAT due to changes in the tax rate in the situation under consideration will actually be paid at the expense of the buyer. In this case, the buyer will be able to deduct the entire amount of VAT (if he is a taxpayer and has the right to deduct).

The buyer pays in 2021, shipment was made in 2018

If goods (works, services) were shipped in 2021, and payment was received in 2021, then VAT in 2021 should have been charged at a rate of 18%, since the tax base for VAT is determined at the time of shipment and subsequently does not change (clause 1 clause 1 article 167 of the Tax Code of the Russian Federation). There is no need to recalculate taxes in 2021. In this case, the buyer in the payment documents indicates the amount of VAT indicated in the seller’s invoice in 2021 at a rate of 18%.

Features of determining the VAT tax rate for the provision of services

A controversial situation may arise in determining the tax rate when providing services that are actually provided in 2021, and the invoice is dated 2021. For example, if, under the terms of the contract, the tenant’s obligation to pay rental payments, including the amount of VAT for services provided, arises only in 2021, but the services themselves were provided by the lessor and consumed by the tenant in 2018. When issuing an invoice in 2021, the lessor must take into account that the actual use of the service occurred in 2018, during the period when the VAT rate of 18% was applied. Therefore, invoices issued in 2019 must contain a VAT rate of 18% and a reference to the period of actual use of the property - 2021.

It is possible that invoices, the date of which falls already in 2021, but indicating in column 7 the VAT rate of 18%, may raise questions from the tax authorities. Here it is important to recall that the taxpayer has the right to indicate additional information in additional lines and columns of the invoice (clause 9 of the Rules of the Decree of the Government of the Russian Federation of December 26, 2011 No. 1137), we believe that in this case such information may be the date of provision of services.

What should I do if the price of goods shipped in 2018 changes?

In a situation where an organization shipped goods at a negotiated price in 2021, calculating VAT at a rate of 18%, but in 2021 the cost of the goods changed (decreased), you need to be guided by the following.

In accordance with paragraph 3 of Art. 168 of the Tax Code of the Russian Federation, when the cost of shipped goods changes, including in the case of a change in price and (or) clarification of the quantity (volume) of shipped goods, the seller issues an adjustment invoice to the buyer no later than five calendar days, counting from the date of drawing up the documents specified in paragraph 10 tbsp. 172 of the Tax Code of the Russian Federation. According to paragraphs. 10 and 11 clause 5.2 art. 169 of the Tax Code of the Russian Federation, the adjustment invoice issued when the cost of shipped goods changes indicates, among other things, the tax rate and the amount of tax determined before and after the change in the cost of shipped goods.

This means that if goods are shipped in 2021, then if their value changes upward or downward in 2019, the tax rate in effect on the date of shipment, that is, 18%, is applied. Such clarifications are given in the Letter of the Ministry of Finance of Russia dated October 22, 2018 No. 03-07-09/75650. Accordingly, column 7 of the adjustment invoice indicates the VAT rate that was indicated in column 7 of the invoice for which the adjustment invoice was drawn up.

Return of goods from January 1, 2021, sold in 2018

The Federal Tax Service recommends that the return in 2021 of the entire batch (or part) of goods, both accepted and not accepted for registration by the buyer, be processed not as a return sale, but by issuing an adjustment invoice.

In this case, the actions of the seller and buyer will be as follows.

Salesman. When returning goods, in all cases, the seller issues an adjustment invoice indicating the tax rate that was in effect when the goods were shipped, and registers it in his purchase book (clause 13 of article 171, clause 4, 10 of article 172 of the Tax Code of the Russian Federation, Letter Federal Tax Service of Russia dated October 23, 2018 No. SD-4-3/ [email protected] (clause 1.4), Letter of the Federal Tax Service of Russia dated December 13, 2018 No. ED-4-20/ [email protected] ).

Based on the adjustment invoice, the seller deducts VAT from the cost of the returned goods. If the buyer returned the goods under the same contract under which they were supplied, the VAT deduction is applied in the period when the return is recorded and an adjustment invoice is issued. You can claim a deduction in another period, but no later than a year from the date of accounting and registration of the return (clause 4 of Article 172 of the Tax Code of the Russian Federation). The seller must have documents confirming the return, in particular, the buyer's claim, return agreement or act in form No. TORG-2.

When returning goods by buyers who are not issued invoices (for example, they are not VAT payers), the seller can draw up a separate adjustment document, which reflects summary data on all return transactions for the month (quarter), regardless of the CCP indicators, reflecting it in the purchase book.

Buyer. If the buyer is a VAT payer, then he must restore VAT on returned goods if he previously accepted it for deduction. VAT must be restored on the basis of an adjustment invoice in the amount of the rate at which it was previously accepted for deduction (clause 4, clause 3, article 170 of the Tax Code of the Russian Federation, clause 1.4 of the Letter of the Federal Tax Service of Russia dated October 23, 2018 No. SD-4- 3/ [email protected] ).

The buyer, a VAT non-payer, does not register the adjustment invoice received from the seller.

Nuances of purchasing goods under government contracts

For contracts concluded within the framework of the public procurement system, according to the rules of Law No. 44-FZ, in most cases the price cannot be changed. However, from January 1, 2021, the legislation on state (municipal) procurement has been adjusted. Federal Law No. 502-FZ dated December 27, 2018 introduced new grounds for purchasing from a single supplier and the possibility of changing the contract price due to an increase in VAT.

In particular, until 10/01/2019, within the contract execution period, it is allowed, by agreement of the parties, to change the price of a contract concluded before 01/01/2019 within the limits of an increase in the VAT rate in relation to goods, works, services, acceptance of which is carried out after 01/01/2019, if the VAT rate is increased not provided for in the terms of the contract. This norm came into force on the date of official publication of Law No. 502-FZ, that is, December 27, 2018.

Slightly different rules apply to the price of a government contract under Law No. 223-FZ. The price of purchased goods, works, services under concluded contracts within the framework of Law No. 223-FZ may be changed in comparison with the prices specified in the final protocol. Only such changes need to be reflected in the contract (Part 5, Article 4 of Law No. 223-FZ).

The Ministry of Finance of Russia in its letter (Information letter of the Ministry of Finance of Russia dated November 29, 2018 No. 24-01-07/86352) notes that if the contract and procurement regulations do not prohibit changing the price, then by agreement of the parties the cost can be changed, including in connection with an increase in the VAT rate to 20%. To do this, you need to make changes to the contract.

If the contract or procurement regulations prohibit price changes, then the cost of goods (work, services) under the contract does not change. In this case, the tax increases at the expense of the supplier.

Who else will be affected by the VAT innovations?

The provisions described above now apply to the new category of VAT payers. These are payers of the Unified Agricultural Tax, foreign organizations providing electronic services, and those who buy waste paper.

Business entities using the Unified Agricultural Tax

From 01/01/2019, organizations and entrepreneurs using the unified agricultural tax are recognized as VAT payers (clause 3 of article 346.1 of the Tax Code of the Russian Federation; clause 12 of article 9 of the Law of November 27, 2017 No. 335-FZ). At the same time, they have the right to receive an exemption from VAT, and in a manner specially developed for them. Organizations and individual entrepreneurs can apply it if their income from activities at the Unified Agricultural Tax for the previous year did not exceed (clause 1 of Article 145 of the Tax Code of the Russian Federation): for 2021 - 100 million rubles; for 2021 – 90 million rubles; 2020 – 80 million rubles. Another limitation of VAT exemption is the sale of excisable goods.

Foreign organizations providing electronic services

From January 1, 2021, changes are being made to Article 174.2 of the Tax Code of the Russian Federation, which is devoted to the payment of the “Google tax.” Federal Law No. 335-FZ of November 27, 2017 amended this article, which comes into force on January 1, 2021. From this date, the responsibility for calculating VAT will be assigned to a foreign organization that provides electronic services or its agent involved in settlements with the buyer.

Tax agents for the provision of electronic services from January 1, 2019 are recognized as intermediaries who carry out activities involving participation in settlements directly with buyers of services on the basis of agency agreements, commission agreements, agency agreements or other similar agreements with foreign organizations providing such services. Separate divisions of foreign companies located on the territory of the Russian Federation and registered with the tax authorities (clause 10 of Article 174.2 of the Tax Code of the Russian Federation) can act as such intermediaries.

Clause 9 of Article 174.2 of the Tax Code of the Russian Federation, according to which direct buyers of electronic services, Russian organizations and individual entrepreneurs were recognized as tax agents until January 1, 2021, becomes invalid from this date. They are no longer recognized as tax agents.

Companies that are subjects of the national payment system, as well as telecom operators that transfer funds for the services of foreign IT companies (paragraph 3, clause 10, article 174.2) are not recognized as intermediaries involved in settlements (respectively, tax agents for VAT). Tax Code of the Russian Federation).

Foreign organizations that provide services in electronic form on the territory of the Russian Federation, listed in paragraph 1 of Article 174.2 of the Tax Code of the Russian Federation, and carry out settlements directly with buyers of these services, are subject to registration with the tax authorities in accordance with paragraph 4.6 of Article 83 of the Tax Code of the Russian Federation. Information about such foreign organizations must be posted on the official website of the Federal Tax Service of Russia on the Internet information and telecommunications network. This is the name, INN, KPP and date of registration with the tax authorities. The tax authority registers a foreign company on the basis of its application for registration and other documents, the list of which is approved by the Russian Ministry of Finance.

To calculate the tax, a percentage of the tax base is used - the estimated tax rate. The tax base is defined as the cost of services, taking into account the amount of tax, calculated on the basis of the actual prices of their sales (clause 2 of Article 174.2 of the Tax Code of the Russian Federation).

By virtue of clause 3.2 of Article 169 of the Tax Code of the Russian Federation, foreign organizations do not draw up invoices for services in electronic form specified in clause 1 of Article 174.1 of the Tax Code of the Russian Federation. They independently pay VAT, and also submit a tax return to the tax authority in the established format in electronic form through the taxpayer’s personal account (in certain circumstances - via TKS through an electronic document management operator) (clauses 7, 8 of Article 174.2 of the Tax Code of the Russian Federation).

Tax agents for VAT when purchasing waste paper

From 01/01/2019, the sale of waste paper is subject to VAT. Subclause 31, clause 2, art. 149 of the Tax Code of the Russian Federation, which provides for the exemption from taxation of operations for the sale of waste paper, applies until December 31, 2018 inclusive (clause 2 of Article 2 of the Federal Law of June 2, 2016 No. 174-FZ “On amending Article 149 of Part Two of the Tax Code of the Russian Federation ").

In accordance with the amendments made to paragraph 8 of Art. 161 of the Tax Code of the Russian Federation Federal Law No. 424-FZ dated November 27, 2018 “On amendments to parts one and two of the Tax Code of the Russian Federation and certain legislative acts of the Russian Federation on taxes and fees”, when selling waste paper by a VAT payer, the tax amount is paid by the buyer of waste paper (organization or an individual entrepreneur), who is recognized as a tax agent (subclause “b”, paragraph 3, article 2 of Federal Law No. 424-FZ).

As explained by Letter of the Ministry of Finance of Russia dated December 3, 2018 No. 03-07-11/87234, in accordance with the specified procedure established by clause 8 of Art. 161 of the Tax Code of the Russian Federation, buyers of waste paper will be recognized as tax agents who are obliged to calculate the corresponding amount of tax using the calculation method. Moreover, on the basis of the provisions of Art. 171 and 172 of the Tax Code of the Russian Federation, the amounts of value added tax calculated by tax agents - buyers of waste paper on the basis of invoices issued by sellers, will be accepted by them for deduction in the tax period in which these goods are registered, that is, the tax period in in which tax agents calculate tax for the seller - a value added tax payer, in most cases coincides with the tax period in which tax agents have the right to deduct tax as a buyer.

Consequently, the procedure for calculating and paying VAT on the sale of waste paper is similar to the procedure established in the case of the sale of scrap and waste of ferrous and non-ferrous metals, raw hides, secondary aluminum and its alloys, also specified in paragraph 8 of Art. 161 Tax Code of the Russian Federation.

Updated VAT return form: what has changed?

For the first quarter of 2021, it will be necessary to report using a new VAT return form. [email protected] will come into force , according to which the form of the VAT declaration has been changed, the procedure for filling out the declaration, as well as formats have been adjusted.

The update of the VAT return form, the procedure for filling it out and formats is due to amendments made to the Tax Code. Let's take a closer look at what's new in the declaration.

Section 2 of the VAT return

The content change concerns buyers of raw hides, scrap metal, secondary aluminum, its alloys and waste paper. Such tax agents who do not pay VAT on themselves will have to fill out section. 2 declarations in total for everything listed in clause 8 of Art. 161 of the Tax Code of the Russian Federation to goods shipped by sellers during the tax period in the following order:

lines 010-030 – dashes;

line 060 – the total amount of VAT calculated for payment to the budget in accordance with clause 4.1 of Art. 173 Tax Code of the Russian Federation.

line 070 – code 1011715 (this code was added to Appendix 1 “Operation Codes” to the Procedure for filling out declarations). Code 1011713 no longer applies.

Section 3 of the VAT return

Lines are provided for entering the tax base and the tax amount calculated at rates of 20% and 20/120. The lines for indicating similar indicators for rates of 18% and 18/118 have been retained for now. They are necessary to reflect transactions that began in 2018 or earlier and completed in 2021. Thus, rates of 18% and 18/118 can be applied in 2021 and subsequent periods when registering adjustment invoices in the sales books.

Lines 043 and 044 have been added. They will need to reflect the tax base and tax amount.

Line 043 was introduced into the Declaration in connection with the changes that were made to the Tax Code of the Russian Federation by Federal Law No. 350-FZ dated November 27, 2017. By this regulatory legal act, from January 1, 2021, Art. 164 of the Tax Code of the Russian Federation has been supplemented with a new clause 7, which establishes the rules for waiving the zero VAT rate when carrying out export operations.

The appearance of line 044 is due to the introduction of a tax free system in the Russian Federation in 2021, which provides for the refund of VAT to foreign buyers. If a foreigner exercises this right, the taxpayer-seller, in turn, will have the right to deduct VAT.

Participants in the tax free system will fill out another new line - 135. It will need to show the amount of the deduction.

Section 9 of the VAT return

Lines 036 have been added to this section to indicate the product type code. It will be filled out only by those who export goods to the EAEU countries. The previous form of Section 9 of the VAT declaration did not contain lines to reflect information about the code of the type of goods.

Similar lines (only numbered 116) will appear in the appendix to section 9.

In addition, both in the application and in Section 9 itself, lines will be introduced where it will be necessary to show the cost of sales and the amount of tax calculated at a rate of 20%.

Amendments in electronic formats

The Federal Tax Service has provided amendments in several document submission formats. These include the format of the declaration, information from the purchase book and an additional list to it. Technical amendments will be made to the documents, in particular due to an increase in the VAT rate to 20%.

Also, in connection with the increase in the VAT rate to 20% and the appearance of a new column 1a “Product Type Code” in the invoice, from February 2, 2019, the format of the invoice and the universal transfer document was updated (Order of the Federal Tax Service of Russia dated December 19, 2018 No. ММВ-7 -15/ [email protected] ). However, by the end of the year, documents can be drawn up using the previous version. It will become invalid only on January 1, 2021.

The Federal Tax Service of Russia has updated the format of its response to the requirement to provide explanations to the VAT tax return. From January 25, explanations must be submitted using the updated format; this information is posted on the website of the Federal Tax Service of Russia (https://www.nalog.ru/rn77/rn77/rn77/rn77/news/activities_fts/7933143/).

In such a request, you may receive new error codes:

– code “5” – the declaration does not contain an invoice date or the date is indicated after the reporting period;

– code “6” – in section. 8 of the declaration or annex to it, a deduction is claimed beyond three years;

– code “7” – in section. 8 of the declaration or annex to it, a deduction is claimed on an invoice that was drawn up before the date of state registration;

– code “8” – incorrect code for the type of operation;

– code “9” – error when canceling entries in section. 9 of the declaration or its annex.

In this regard, it is necessary to update the program through which you transmit data to the Federal Tax Service.

Features of filling out the sales book from the second quarter of 2019

From April 1, 2021, the Government of the Russian Federation is making changes to the form of the sales book and the rules for maintaining it (Resolution No. 15 of January 19, 2019 “On amendments to Annexes No. 3 and 5 to Resolution of the Government of the Russian Federation of December 26, 2011 No. 1137”). Taxpayers must apply new forms of the sales ledger and an additional sheet to it, as well as the rules by which goods must be returned from the second quarter of 2021.

The following changes have appeared in the sales book and additional sheets:

– columns 14 and 17 were renamed: instead of “18 percent” they became “20 percent”. These columns will need to be filled out in the same way as now, only taking into account the increased rate;

– two new columns have been added – 14a and 17a. The first will need to reflect the cost of sales subject to VAT at a rate of 18%, excluding tax. In the second - the amount of tax calculated at a rate of 18% or 18/118.

From the rules for maintaining the sales book, we excluded the provision that it is necessary to register invoices issued when returning goods accepted for registration, that is, when returning goods from 04/01/2019, the buyer does not issue invoices and are not registered in the sales book.

The log of issued and received invoices has changed minimally. It also included a technical replacement of the rate of 18% by 20% (Resolution of the Government of the Russian Federation dated January 19, 2019 No. 15 “On amendments to Annexes No. 3 and 5 to Decree of the Government of the Russian Federation dated December 26, 2011 No. 1137”).

The tax rate does not appear in the purchase book, so no changes have been made to it yet.

As already noted, these innovations come into force only on April 1, however, the new form of the sales book can be used now, since the old-style book will not be able to correctly reflect new transactions at the VAT rate of 20% and, accordingly, fill out a declaration based on it for VAT (Letter dated October 23, 2018 No. SD-4-3/ [email protected] ).

***

Thus, Law No. 303-FZ, which amended Ch. 21 of the Tax Code of the Russian Federation concerning the increase in the VAT tax rate from January 1, 2019, has given rise to many controversial issues. Therefore, taxpayers need to carefully follow the explanations of regulatory authorities and promptly make accounting adjustments.