Will additional VAT be added when applying the simplified system without submitting a notice of transition to it?

The current fiscal legislation provides for the right to choose a taxation system. That is, the taxpayer has a legal opportunity to significantly reduce the tax burden when choosing simplified taxation regimes. Of course, officials have identified a circle of people and a significant list of criteria that must be met in order to switch to lightweight tax systems.

Consequently, companies and entrepreneurs have the right to choose exactly the mode that is most beneficial in carrying out their activities. The variety of taxation systems has become a stumbling block for most taxpayers regarding the imposition of value added tax.

Why do you need a certificate?

In most cases, business partners require confirmation of the chosen taxation system in order to correctly calculate and pay fiscal VAT payments. Let us remind you that for violation of the rules, significant fines and liability are provided, including the seizure of accounts and the freezing of activities for up to 90 calendar days.

If the company has received documents from a partner that contain o, then it should request appropriate confirmation that the entity has the right not to allocate value added tax. Your company may receive a similar request. In this case, you will have to prepare a response sample: a certificate about the taxation system.

Procedure for exemption from the duties of a VAT taxpayer

Exemption is obtained by application. The taxpayer does not have to wait for the consent of the Federal Tax Service to obtain the right to conduct transactions without charging VAT.

Documenting

Throughout the entire period of validity of the exemption, the taxpayer submits a VAT return and maintains a book of received invoices.

The amount of VAT on the input before the benefit is applied is added to the purchase price of the product or service.

The application of the benefit must be fixed in the accounting policy. The release and continuation of the regime is formalized by notification.

What are the deadlines?

The exemption applies for 12 calendar months, starting from the month the notification was submitted.

In case of violation of the rules of provision - excess revenue, trade in excisable goods, the payer must pay the tax in full.

Payment is accompanied by the submission of a declaration with accrued VAT for the entire period of exemption, and not just from the moment of violation of the conditions.

How is VAT distributed under separate accounting? See this article: separate VAT accounting.

What has changed since October 1, 2021 regarding VAT, .

The accrued tax is paid to the budget with the amount of penalties calculated independently. When calculating penalties, you can use the calculator posted on the Federal Tax Service website.

Tax payment must be made before filing an amended return in order to avoid penalties in the form of fines for non-payment of tax.

What exactly is liberation?

Taxpayers who apply VAT exemption do not:

• issuing invoices for revenue and advance payments (from 2020);
• tax calculation;
• payment of VAT, unless they are tax agents.
• deduction for VAT amounts accrued by suppliers of goods or services.

Organizations or individual entrepreneurs do not submit a declaration with completed sections of the calculation and indicating the taxable base.

Only the title page and section 1 are presented with dashes in the lines for payment or reimbursement of amounts.

If the taxpayer issued invoices during the exemption period, a declaration is submitted indicating the taxable base and the amount of tax payable.

No deductions are applied in this case. A taxpayer who erroneously charged VAT does not lose the right to apply the exemption.

Notice of use of rights

Companies that have begun to apply VAT exemption submit a notification of use of the right to the Federal Tax Service.

The contents of the document confirming the exemption includes information about the taxpayer, his details - TIN, location address, telephone number.

Data on revenue for the 12 months preceding the application and the last 3 months with a breakdown are indicated. The form contains a list of attached documents.

Attached to the notice:

All documents are submitted in copies certified in accordance with the generally established procedure. Documents are submitted in any form. The condition is that the inspector can obtain information about the proceeds received.

Extension

The taxpayer is granted VAT exemption for a period of 12 calendar months. A shorter benefit period is not provided.

You can only terminate the application of the exemption yourself by restoring the tax payable for the entire period. Additional penalties will be charged.

At the end of the period, the taxpayer decides to terminate the application of the benefit or extend the exemption. A notification is submitted to the Federal Tax Service by analogy with the original document.

Documents are attached to the notification in the same order as for the initial application.

If the taxpayer refuses to continue using the benefit, a notice of refusal to apply the regime is submitted. It is impossible to refuse during the 12-month benefit period.

How to prepare

Taxpayers who have switched to simplified tax regimes confirm their status with an official notification from the Federal Tax Service or provide a special form No. 26.2-7. Consequently, it is enough for “simplified” clients to send a copy of the Federal Tax Service’s notification about the transition to a preferential regime to the business partner. Or request a special information letter from the inspection.

For subjects using the general regime (OSNO), a similar form is not provided. To confirm the selected mode, you will have to notify your partner by letter, drawn up in any form.

Questions

Taxpayers exempt from VAT or planning a transition often have questions about clarifying accounting rules.

There are a small number of explanatory letters of legislation on this topic.

Release under simplified tax system

Taxpayers using the simplified tax system do not have obligations to calculate VAT. There is no need to issue invoices.

Starting from 2021, it will be necessary to keep a log of received invoices.

The absence of a journal will be considered by the Federal Tax Service as ignorance of one document.

Do I need to submit a declaration?

Upon release, the taxpayer has the obligation to file a return. It is necessary to take into account the fact that it is possible to lose the exemption if the income limit is exceeded, and so on.

Failure to declare may increase penalties upon termination of the benefit.

When VAT is restored, the amount of fines for evading filing a tax return with charges will be added to the accrued tax and penalties.

What is the unified state register of VAT payers, see the article: register of VAT payers.

What is the tax if the donated apartment is sold?

What are the VAT rates on food products?

The amount of the fine for these violations is 5% of the accrued tax. The amount of the fine cannot exceed the 30% limit and be less than 1,000 rubles.

Exemption for import of equipment (import)

Medical equipment included in the list established by Government Decree No. 19 of January 17, 2002 as vitally important is completely exempt from VAT upon import.

The passport of the imported document must contain an OKPO code that matches the number in the resolution.

How is this partial liberation?

Taxpayers who sell excisable goods along with non-excise shipments have the right to receive an exemption from VAT.

The partial exemption used can only be realized if separate accounting is maintained.

This right is granted on the basis of the ruling of the Constitutional Court dated November 10, 2002 No. 313-O.

The partial exemption also includes a change in the rate of 18% to a rate of 10% for the import of medical equipment, medicines and equipment. The composition of the equipment does not apply to vital equipment.

If the subject is on UTII?

When switching to a general taxation regime after UTII, it is difficult to obtain an exemption.

The notice of release includes as part of the attachment documents that are not maintained. Individual entrepreneur on UTII does not keep a book of income and expenses.

It is not possible to prove the amount of revenue from the previous period. In this option, obtaining an exemption is possible only after conducting activities at OSNO for 3 months.

Is it possible for medical equipment?

The law provides exemption from VAT on the sale of vital medical equipment.

The right is established by Art. 149 of the Tax Code of the Russian Federation, approval of the list of equipment is determined by the above Government resolution.

Video: is there a VAT exemption? Use this right at any time!

Exemption from the accrual and payment of VAT is applied by enterprises with small revenues.

The use of benefits allows you to reduce the tax burden and increase the profitability of the enterprise.

To confirm the right to exemption, you must notify the Federal Tax Service and submit supporting financial documents.

Previous article: Separate VAT accounting Next article: Tax agent for VAT

Why is there an additional notification form in 2021?

Notification of VAT benefit - form for agricultural producers

Which 2021 notification forms for VAT benefits are used for OSNO

Results

Help for OSNO

To compose a letter in any form, use A4 letterhead. Follow the general rules of business correspondence. Do not forget to indicate the required details of the written notification of the chosen taxation system:

1. Information about your organization, individual entrepreneur. Enter the full name in accordance with the registration documents. Please indicate your actual and legal addresses. Enter the TIN, KPP, OGRN and other information if necessary.
2. Date of registration. Separately indicate the date of registration with the tax authority. It is acceptable to attach a copy of the document.
3. Data that the company is a payer of VAT or other fiscal obligation, depending on the request of the business partner.

Process specifics

A taxpayer who decides to apply the exemption must thoroughly study the pros and cons of not charging VAT.

It is necessary to conduct an inventory of balances to determine the restored amount payable, either return the balances to the supplier or transfer them to another organization for safekeeping with posting to the warehouse.

Otherwise, the amount of tax payable could be substantial.

For legal entities

Legal entities that begin to apply the benefit must provide an extract from the balance sheet.

A Form 2 balance sheet (report) is provided, which indicates the revenue received for the period.

Additionally, the Inspectorate may require the submission of Form 1 to clarify the available amount of VAT for deduction, accounted for as a separate line.

An LLC can also receive an exemption when switching from a special regime to a general system. Unlike individual entrepreneurs, legal entities draw up a balance sheet for any form of taxation.

For individual entrepreneurs

Entrepreneurs keep records in the form of a ledger of income and expenses. The document is used in various forms both in OSNO and in the case of using the simplified tax system.

An extract from the book is attached to the notification, in which you can determine the revenue received by the individual entrepreneur.

The difficulty concerns only the amounts that will be received by the entrepreneur from income from goods shipped in the VAT-taxable period. Based on these amounts, the taxpayer will have to pay VAT to the budget.

Demand or ask?

The current tax legislation does not provide for the obligation of the simplified tax operator to provide his counterparties with any evidence of the application of the simplified tax system. Therefore, it is impossible to demand such documents from a simplifier. However, he can be asked to provide evidence that he uses a special regime. Moreover, some simplifiers themselves, together with a set of documents, for example, an invoice or an agreement, submit a letter on the application of the simplified tax system for the counterparty. After all, it is easier to submit such documents than to spoil relations with your partners.

Consequences in 2021

Taxpayers who have been exempt from paying VAT retain the obligation to issue invoices indicating the “excluding VAT” indicator in the “VAT amount” column.

In 2021, organizations exempt from paying VAT in accordance with Article 149 of the Tax Code of the Russian Federation received the right not to issue invoices.

Starting from 2021, Osvobozhdenie residents will also have the opportunity not to issue invoices in accordance with Article 145 of the Tax Code of the Russian Federation. This opportunity must be fixed in the accounting policies of the organization or individual entrepreneur.

Despite the simplification of document flow, starting from 2021, taxpayers are required to keep logs of invoices.

The obligation concerns incoming documents and applies to companies using special regimes - UTII and simplified taxation system.

Taxpayers who have a VAT exemption are not required to file their returns electronically. You have the right to submit a document on paper in person or by mail.

pros

The indirect tax VAT has a significant amount in the cost of goods.

Taxpayers who refuse to pay VAT have the opportunity to:

• reduce the selling price of goods, the cost of work or services;
• at the same time, do not reduce the cost due to the inclusion of the seller’s VAT in the initial purchase price;
• exclude separate accounting at low turnover with the presence of retail and wholesale sales.

Taxpayers reduce the company's paperwork and simplify accounting when applying for an exemption.

Flaws

Obtaining a VAT exemption also has its downsides.

Taxpayer:

• may lose a number of contracts for supplies to companies charging VAT;
• must restore tax payable on balances;
• the amount of restored VAT is not taken into account in the company’s expenses;
• If you violate the terms of the exemption, you will be required to pay tax and penalties.

If the exemption is validly waived due to the expiration of the validity period, the taxpayer will not be entitled to apply the deduction for the balances in the new period.

The amount of VAT on goods purchased during the exemption period is included in the cost of the goods when they are posted to the warehouse.

What document confirms the use of the simplified tax system?

Let us remind you that when switching to the simplified tax system, an organization or individual entrepreneur must submit to its tax office a Notification of the transition to a simplified taxation system (form No. 26.2-1, approved by Order of the Federal Tax Service dated November 2, 2012 No. ММВ-7-3 / [email protected] ) . In general, this must be done no later than December 31 of the previous year (clause 1 of Article 346.13 of the Tax Code of the Russian Federation) in order to become a payer of the simplified tax system from January 1 of the new year.

However, the tax inspectorate does not have the obligation to confirm that the organization (IP) has switched to the simplified tax system; the Federal Tax Service does not send in response either a permit or a notification about the application of the simplified tax system.

However, by order of the Federal Tax Service of Russia dated November 2, 2012 No. ММВ-7-3/ [email protected] Form No. 26.2-7 – Information Letter was approved. With this letter, the inspectorate can confirm that the organization or individual entrepreneur has submitted a Notification of the transition to the simplified tax system (in the form it is called an application), and also submitted declarations under the simplified tax system. Information about submitted declarations may not be available if the deadline for their submission has not yet arrived at the time of preparation of the information letter.

What is needed for this

Taxpayers must comply with the conditions under which the exemption is granted and submit an application in the form of a notification to the Federal Tax Service.

The document is drawn up in accordance with the Order of the Ministry of Taxation dated July 4, 2002. No. BG-3-03/342 form.

Payers are exempt from VAT if they maintain a general taxation system and charge tax.

When switching from a special to a general regime, it is necessary to fulfill the conditions for providing benefits.

Who is eligible

An enterprise can receive the right to exemption no earlier than 3 months after registration.

The company has the right to submit an application if:

1. Revenue for 3 months is no more than 2 million rubles. The amount is determined without the amount of accrued VAT.
2. There is no sale of excisable goods and mineral raw materials.
3. If there is excise trade, the payer carries out separate accounting of income and expenses in accounting and tax accounting.

There are restrictions under which VAT exemption is not granted.

Individual entrepreneurs do not get the opportunity to organize:

1. Acting as a tax agent when leasing state or municipal property, conducting transactions for the purchase of goods from foreign companies.
2. Carrying out operations for the import of goods into the territory of the Russian Federation.

The entire period during which the exemption is valid, the taxpayer must adhere to the requirements put forward by the Tax Code of the Russian Federation.

Legal basis

The taxpayer may apply the VAT exemption within 12 calendar months from the date of filing the notification.

The essence of the document is to notify the Federal Tax Service about the beginning of the application of the exemption. The deadline for submitting the notification is no later than the 20th day of the month from the beginning of which the payer does not charge VAT.

If inspectors of the Federal Tax Service find discrepancies, VAT is restored to payment.

Inconsistencies include:

• failure to submit a notification in a timely manner;
• lack of supporting documents;
• identification of grounds that do not allow the application of exemption.

When calculating the deadline for filing a notice, it is necessary to take into account the taxpayer’s legal right to transmit documents by mail. The date of receipt is considered to be the 6th day after sending the registered letter.

On what terms

Before the transition to a new regime - exemption from VAT, the taxpayer had the right to a deduction for goods received for conducting business.

The taxpayer needs to restore the VAT previously accepted for deduction as part of the declaration.

Partial materials, goods and raw materials were used during the VAT period. The second part of the received assets ended up in the warehouse in the form of leftovers.

The period for reinstatement of VAT due must precede the month of submission of the notice. This procedure also applies to previously made deductions for fixed assets and intangible assets.

For fixed assets and intangible assets, VAT amounts related to under-depreciated amounts of the asset are subject to recovery.

Why is there an additional notification form in 2021?

A document notifying the tax authority of the taxpayer’s decision to apply exemption from VAT payments under Art. 145 of the Tax Code of the Russian Federation, until 2021, existed in a single version, since it was in demand only in one situation - for persons using OSNO, but having small (not exceeding 2 million rubles without VAT for consecutive 3 months) sales turnover.

With the onset of 2021, VAT payers included agricultural producers working on the Unified Agricultural Tax (Clause 12, Article 9 of the Law “On Amendments...” dated November 27, 2017 No. 335-FZ). But at the same time, at the expense of agricultural tax payers, the circle of persons entitled to use the benefits provided under Art. 145 of the Tax Code of the Russian Federation (clause 1, article 2 of law No. 335-FZ).

Since the conditions limiting the right to VAT exemption for agricultural producers are characterized by a special set and do not imply the simultaneous (as for persons using OSNO) sending to the Federal Tax Service a package of documents confirming such a right, the information in the notification submitted under each of the regimes will vary significantly . For this reason, it became necessary to create a second form of notification of the start of using the benefit.

Results

At the beginning of 2021, agricultural producers using the Unified Agricultural Tax were added to VAT payers. At the same time, they have been given the opportunity to exercise their right to VAT exemption. The rules for granting and applying such exemption are included in the text of Art. 145 of the Tax Code of the Russian Federation, which was previously valid only for persons using OSNO. These rules differ significantly in a number of ways from those in force under OSNO.

The need to indicate different grounds for applying the benefit and the absence of the need for agricultural producers to submit documents confirming their right to it have led to the creation of different forms of notification through which the taxpayer notifies the tax authority of the VAT exemption. Mandatory forms for both notifications (the new one for Unified Agricultural Tax payers, the updated one for those using OSNO) will come into effect from 04/01/2019. Until this moment, agricultural producers can draw up a notification in any form or on a form recommended by the Federal Tax Service of Russia, identical to the one that will become mandatory from 04/01/2019. For persons using OSNO, until the updated form comes into force, the original form of this document continues to be used.

You can find more complete information on the topic in ConsultantPlus. Full and free access to the system for 2 days.

Current as of: February 13, 2021

Your counterparty issues documents with o, explaining this by the fact that it is on a simplified basis. But is this really so? Ask him to provide proof of his use of the special regime. How can your counterparty confirm that it is not subject to VAT on its transactions reasonably?

Notification of VAT benefit - form for agricultural producers

Order of the Ministry of Finance of Russia dated December 26, 2018 No. 286n, approving the notification form for agricultural producers, comes into force only from April 1, 2019. That is, for the 1st quarter of 2021, such a form has not been established. Therefore, it is permissible to submit a notification to the tax authority in any form.

However, the Federal Tax Service of Russia, in letter dated January 15, 2019 No. SD-4-3/ [email protected], recommends using a notification form identical to that contained in Order No. 286n. Thus, the form, which had not yet been officially approved, began to be used.

Filling it out should not cause any difficulties, since it indicates:

• data of the document submitter (name or full name, tax identification number, address, telephone);
• the start date of the exemption;
• the amount of income received from agricultural activities in the previous year without VAT - for persons who began to apply the unified agricultural tax not in the year of filing the notification.

It must be sent to the Federal Tax Service no later than the 20th day of the month from which the benefit applies.

A sample notification for agricultural producers on the form from letter No. SD-4-3/ [email protected] can be found on our website:

We also have a form from Order No. 286n, which agricultural producers will begin to use as mandatory from 04/01/2019.

Which 2021 notification forms for VAT benefits are used for OSNO

Order No. 286n approved not only the notification form for agricultural producers, but also an updated version of a similar document used to report the application of the exemption by persons on OSNO. The use of the updated notification form will also become mandatory from 04/01/2019.

Until Order No. 286n comes into force (i.e., during the 1st quarter of 2021), the notification form approved by Order of the Ministry of Taxes of the Russian Federation dated July 4, 2002 No. BG-3-03/342 continues to be valid.

The following has been updated on the form:

• The title includes an indication that it is intended for VAT payers with the exception of agricultural producers using the Unified Agricultural Tax.
• In clause 1, a clarification has been added regarding the indication of the amount of revenue excluding VAT.
• The text of subp. has been replaced. 2.4 - now it contains a reference to the book of income and expenses compiled under the simplified tax system. It will be required from payers who have switched from this regime to OSNO.
• Added sub. 2.5, which includes in the list of submitted documents the book of income and expenses compiled under the Unified Agricultural Tax - for payers who have switched to OSNO from the Unified Agricultural Tax.
• From clause 3, the reference to excisable mineral raw materials is excluded.

That is, no innovations requiring a fundamentally different approach to the filling procedure appeared in this document. This is explained by the fact that there are no changes to the rules for obtaining VAT benefits for persons using OSNO when adjusting the text of Art. 145 of the Tax Code of the Russian Federation have not been included.

For an example of filling out the updated form for notification of VAT exemption when applying OSNO, see our website.