What to choose: cargo transportation with or without VAT? What is the benefit for the Client?

Is insurance compensation received included in the VAT tax base?

The amount of insurance compensation that you received from the insurance company should not be included in the VAT tax base. These receipts are not related to payment for goods, works, services (clause 2, clause 1, article 162 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance of Russia dated December 8, 2017 N 03-03-06/1/81905).

An exception is provided only for banks, insurers and other organizations listed in clause 5 of Art. 170 of the Tax Code of the Russian Federation and those applying this paragraph. They include insurance payments in the VAT tax base if, when selling goods (work, services) with VAT, they insured the risk of the counterparty’s failure to fulfill its obligations (clause 4, clause 1, article 162 of the Tax Code of the Russian Federation).

Cargo insurance procedure

If this is your first time purchasing cargo insurance, we recommend that you read our step-by-step instructions. With it you will definitely not miss important moments.

So, to insure transported items, you need to go through several stages:

1. We decide with the insurance company . Choose one that has extensive experience in insuring cargo. Give preference to insurers that have been on the market for at least 10 years. They have already confirmed their solvency, they are definitely not scammers and are meeting their clients halfway (for example, Rosgosstrakh). Also one of the well-known figures in the insurance market is Ingosstrakh, which provides a wide selection of insurance objects;
2. Select risks . It is important to create a list of those insured events that can actually occur. There is no need to include the possibility of an earthquake if the carrier's path does not pass through seismically unstable areas of the earth. The fewer unreasonable risks in your policy, the less you will overpay;
3. Prepare documents for the insurer . They will be papers confirming the ownership of the cargo. In this case, you may need a property inventory report drawn up by an appraiser. An agreement between the owner of the goods and the carrier will also be required. Transport inspection report and many other documents that depend on the method of transportation, type of cargo and territory of the route;
4. Please read the agreement carefully . Check all the data, review the amount of coverage and the cases in which it is due. Specify which risks will not be compensated and under what circumstances payment will be refused;
5. Sign the contract and pay for the insurer's services . At this stage, you can pay part of the insurance or the entire amount, depending on the conditions under which the policy was signed. You receive the original contract and the paid receipt. Copies of the documents remain with the insurer, who enters the data into the database. Typically, the contract begins on the day following the date of its signing.

Is insurance activity subject to VAT?

Insurance, coinsurance and reinsurance services are not subject to VAT (clause 7, clause 3, article 149 of the Tax Code of the Russian Federation).

A specific list of non-taxable income is established in paragraphs. 7 paragraph 3 art. 149 of the Tax Code of the Russian Federation. These include, in particular:

• insurance payments under insurance, co-insurance and reinsurance contracts;
• interest accrued on depot premiums under reinsurance contracts;
• funds received by the insurer through subrogation, etc.

This exemption can only be applied by organizations that have the appropriate license (clause 6 of article 149 of the Tax Code of the Russian Federation, article 938 of the Civil Code of the Russian Federation, part 1 of article 6, article 32 of the Law of the Russian Federation of November 27, 1992 N 4015-1).

The insurer may refuse exemption (clause 5 of Article 149 of the Tax Code of the Russian Federation).

Other transactions and receipts are subject to VAT in the general manner (Letters of the Ministry of Finance of Russia dated December 5, 2016 N 03-07-07/72089, dated January 26, 2016 N 03-07-07/2853).

If the insurer simultaneously carries out both operations subject to VAT and exempt from VAT, then it must maintain separate accounting (clause 4 of Article 149, clause 4 of Article 170 of the Tax Code of the Russian Federation).

Is insurance premium received by an insurance organization subject to VAT?

Is not a subject to a tax. An insurance premium is a payment for insurance services that are exempt from VAT (clause 1 of Article 954 of the Civil Code of the Russian Federation, clause 7 of clause 3 of Article 149 of the Tax Code of the Russian Federation).

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Press about insurance, insurance companies and the insurance market

Company
, December 6, 2009
Actions of retaliation
The only time the owner of an insurance company was held liable for bankruptcy. The former owner of IC "Doverie" embezzled the insurer's assets worth 96 million rubles. Petersburg Insurance ceased to exist back in 2005. Immediately after this, the owner of 80% of the shares of Doverie, Viktor Rudnitsky, disappeared without a trace. True, two years later he returned and [. ]

Tax statements

,
April 11, 2002
Calculation and payment of VAT by insurance organizations

The activities of insurance organizations are regulated by the Law of the Russian Federation dated 27.71.92 No. 4015-1 (as amended on 20.11.99) “On the organization of insurance business in the Russian Federation.” According to Art. 2 of this law, insurance is a relationship to protect the property interests of individuals and legal entities upon the occurrence of certain events (insured events) at the expense of funds generated from the insurance premiums they pay.

Certificate "NV" The following are exempt from VAT: - insurance premiums that the policyholder is obliged to pay to the insurer in accordance with the insurance or reinsurance agreement, including the reinsurance commission paid by the reinsurer to the reinsurer; — interest accrued on the depot of premiums under reinsurance agreements and transferred by the reinsurer to the reinsurer; - insurance premiums received by an authorized insurance organization that has concluded a coinsurance agreement in the prescribed manner on behalf of and on behalf of the insurers; - funds received under recourse claims from the person responsible for the damage caused to the policyholder, in the amount of the insurance compensation paid by the insurer to the policyholder.

As for insurance payments received by the policyholder when committing insurance events provided for by the insurance contract or the Law, they are also not subject to VAT, with the exception of the insurance payment received by the policyholder when insuring the risk of non-fulfillment of contractual obligations by the counterparty of the policyholder-creditor. Insurance can be carried out in voluntary and compulsory forms. In this case, voluntary insurance is carried out on the basis of an agreement between the policyholder and the insurer. This agreement, based on the rules of voluntary insurance, determines specific insurance conditions. Insurance is required by law. The types, conditions and procedure for compulsory insurance are determined by the relevant laws of the Russian Federation. Insurers in accordance with Art. 5 of Law No. 4015-1 recognizes legal and capable individuals who have entered into insurance contracts with insurers or are policyholders by virtue of the law. Insurers are legal entities of any organizational and legal form provided for by the legislation of the Russian Federation, created to carry out insurance activities and who have received a license to carry out insurance activities on the territory of the Russian Federation in the manner prescribed by this law.

Types of insurance for cargo

First of all, it is worth considering cargo insurance depending on the method of transportation.

There is insurance:

• Air transportation . Planes or helicopters are considered the safest form of transport, despite quite frequent crashes. In such transportation, speed is valued, because you can deliver cargo from one country to another in a matter of hours. The dimensions of cargo are important for the delivery of goods: the largest of them cannot be transported by air. If during the flight there is an intermediate station for landing, then the likelihood of property theft is high. In this case, the issued insurance will come in handy;
• Rail transport . Trains are also considered a safe mode of transport. Accidents among them occur extremely rarely. It happens that a train goes off the rails or makes erroneous maneuvers that lead to an accident. The likelihood of their occurrence is so low that many property owners neglect insurance. And most often, goods transported by train are unattractive to thieves (crushed stone, firewood, coal, etc.);
• Cargo delivered by water transport . The disadvantage of this type of cargo delivery is low speed. In addition, many goods can be damaged by sea water that gets on them. Even in the modern world, there are cases of pirate attacks on ship property, and therefore cargo transportation insurance is an opportunity to preserve property. Ships are convenient for transporting large-sized goods, as well as when it is not possible to deliver the cargo in any other way;
• Road transportation . The most dangerous type of transport is cars. Thousands of accidents occur on the roads every day, leading to unpleasant consequences. In addition, scammers on the highways are a common occurrence. As a result of a collision with them, you can lose the transported cargo. Special attention is paid to the safety of road cargo.

Depending on the number of shipments, two types of insurance policies can be issued:

• Covering one shipment . If you plan only one delivery, you can take out this policy. He will help you receive compensation if an insured event occurs during transportation;
• Indemnified on all shipments for a limited time . Typically, such a policy is issued for a year. No matter how many cargo transportations there are within 12 months, each of them is insured in the volume of transported items. An agreement on such terms is usually concluded by a company whose activities involve the constant shipment and delivery of goods.

When applying for a policy, it is important to indicate which risks will be insured.

Based on their selection, policies are divided into three categories:

• With full coverage of all cargo . Regardless of how many tons or pieces of goods are transported, each unit is fully insured. This policy is the most expensive. To confirm the price of the cargo being transported, you must have sales receipts, invoices and other documents with you. In some cases, the insurance company sends an appraiser to determine the real value of the property;
• Partially covered . The contract specifies only those risks that the property owner insures. Only in the case of specified insured events will compensation be paid;
• With compensation for damage exclusively in case of a transport accident . The insurer does not cover any damage to the cargo during transportation. If, for example, a plane crash or a serious road accident occurs, compensation will be paid.

Also, cargo protection, depending on the carrier’s route, is divided into:

• Domestic insurance . The policy is issued for the transportation of goods within one country or locality;
• International insurance . Transportation during which at least one state border will be crossed is insured.

Don’t forget about this type of cargo insurance, such as civil liability. True, in this case it is not the cargo itself that is insured, but the carrier or its owner.

As a result of transportation, damage can be caused to other vehicles (numerous examples when trees, stones fall out of trucks and damage the next car from behind) or people (for example, a truck carrying windows made an erroneous maneuver and overturned. As a result of the accident, glass fragments a person passing nearby was injured).

To prevent such troubles from becoming the reason for lengthy legal proceedings or large expenses for the restoration of damaged objects, civil liability is insured. The well-known OSAGO policy is the basis of compulsory insurance.

Features and payment of VAT by insurance organizations

VAT (value added tax) is paid by:

• — when selling goods (works, services);
• — when transferring goods for one’s own needs, if the corresponding expenses are not reflected in tax accounting;
• - from the cost of imports.

According to the current tax legislation, insurance, coinsurance, and reinsurance services provided by insurance organizations are free from VAT in accordance with Art. 149 of the Tax Code of the Russian Federation. However, certain services of insurance organizations are subject to VAT. Despite the fact that insurance organizations have the right to be exempt from fulfilling taxpayer obligations, organizations in the financial sector of the economy are subject to general requirements for obtaining exemption from fulfilling taxpayer obligations. They are that the amount of revenue from the sale of services by financial organizations for the three previous consecutive calendar months, excluding tax, should not exceed 2 million rubles, while this limitation refers to the total amount of revenue from both taxable and non-VAT-taxable transactions. If insurance organizations' revenue for three months exceeds 2 million rubles, then they must pay VAT.

For insurance organizations, transactions that are not subject to VAT are clearly defined. Transactions on insurance, co-insurance and reinsurance are exempt from VAT, as a result of which the insurance organization receives:

• -insurance payments (remuneration under insurance, co-insurance and reinsurance contracts, including insurance premiums and paid reinsurance commission (including bonus);
• - interest accrued on the depot of premiums under reinsurance agreements, and interest transferred to the reinsurer by the reinsurer;
• - insurance premiums received by an authorized insurance organization that has concluded a co-insurance agreement in the prescribed manner on behalf of and on behalf of the insurers;
• - funds received by the insurer by way of subrogation from the person responsible for the damage caused to the policyholder, in the amount of the insurance compensation paid to the policyholder.

The legislation regulating the activities of insurance organizations establishes that the subject of direct activities of insurers cannot be production, trade, intermediary and banking activities. At the same time, insurers have the right to invest or otherwise place insurance reserves formed from received insurance premiums to ensure the fulfillment of accepted insurance obligations, and other funds, as well as issue loans to policyholders who have entered into personal insurance contracts, within the limits of the insured amounts under these contracts. Insurance reserves are placed in securities (state, municipal, corporate bonds, bills, etc.), bank deposits, etc. These transactions are also not subject to VAT.

What does the insurance amount consist of?

An important component of insurance is the amount of final payment in case of damage. It depends on the insurance premium that the policyholder will pay for the services of the insurance company. The higher the insurance premium, the higher the cost of coverage.

In turn, the cost of a policy or contract depends on the following components:

• Type of cargo (if these are fragile items, then insurance will be more expensive);
• Packaging (its low quality increases the cost of the policy significantly);
• Method of loading/unloading;
• Type of transport (each type has its own tariffs);
• Distances (international transportation costs much higher);
• Conditions of the route (quality of roads, mentality of the local population, whether there is a possibility of attack).

Some insurers do not undertake to insure cargo passing through areas that are potentially dangerous for its safety. Companies involved in international transportation insurance have a list of territories where their protection does not apply.

In these areas, cargo often goes missing, which poses great risks for the insurance company itself. Therefore, responsibility for the safety of the cargo lies entirely with the carrier and the owner of the cargo. Often, experienced carriers who know the local peculiarities and are familiar with the residents are sent to such an area.

Most companies apply a transport insurance tariff of 0.02-0.3% of the value of the cargo. For example, if the cost of the cargo is 16,000,000 rubles, then at a rate of 0.3% the policyholder will pay 16,000,000 * 0.3% = 48,000 rubles.