Contract agreement with an individual: accounting and taxation

Settlements with an individual for the performance of work under a contract

During the execution of a construction contract, the contractor incurs expenses, which, along with the remuneration due to him, form the price of the contract (clause 2 of Article 709 of the Civil Code of the Russian Federation).
As a general rule, the price of work under a construction contract is determined based on the estimate (clause 3 of Article 709, clause 1 of Article 743 of the Civil Code of the Russian Federation). The estimate drawn up by the contractor becomes valid and becomes part of the contract from the moment it is confirmed by the customer (paragraph 2, paragraph 3, article 709 of the Civil Code of the Russian Federation). The price of the work (including that indicated in the estimate) can be approximate or fixed. Moreover, if the price is approximate, the condition for this must be directly stated in the contract (clause 4 of article 709 of the Civil Code of the Russian Federation).

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If it follows from the terms of the contract that the price is fixed, the contractor has the right to demand an increase only in the event of a significant increase in the price of materials, equipment and services provided by contractors. Provided that such a rise in price could not have been foreseen when concluding the contract (clause 6 of Article 709 of the Civil Code of the Russian Federation).

The opposite situation may also arise when the contractor's actual expenses turned out to be less than those taken into account when determining the contract price (contractor savings). In such a situation, the contractor has the right to demand payment at the contract price, provided that the reduction in costs did not affect the quality of the work (clause 1 of Article 710 of the Civil Code of the Russian Federation).

Situation: is it possible not to prepare an estimate when concluding a construction contract?

The answer to this question depends on how the contractor is paid for construction and installation work.

It is mandatory that estimates be drawn up for capital construction projects financed from budget funds (subclause 11, clause 12, article 48 of the Town Planning Code of the Russian Federation).

If the object is being built through private investment and a fixed price is established in the contract, then it is not necessary to draw up an estimate to determine the contract price.

Situation: how to prepare a cost estimate for a construction contract?

The cost estimate is a document justifying the contractor's expenses under a construction contract (clauses 2, 3 of Article 709, clause 1 of Article 743 of the Civil Code of the Russian Federation). If the work is carried out in accordance with the estimate, then the estimate drawn up by the contractor becomes valid and becomes part of the contract from the moment it is confirmed by the customer (paragraph 2, paragraph 3, article 709 of the Civil Code of the Russian Federation).

The basic document in the field of estimate regulation in construction is the Methodology approved by Decree of the State Construction Committee of Russia dated March 5, 2004 No. 15/1. In accordance with it, estimated standards are divided into:

• state estimate standards (GSN);

• industry estimate standards (OSN);

• territorial estimate standards (TSN);

• branded estimate standards (FSN);

• individual estimate standards (ISN).

This is stated in paragraph 2.3 of the Methodology, approved by Decree of the State Construction Committee of Russia dated March 5, 2004 No. 15/1.

Recommended samples of estimate documentation are given in Appendix 2 to the Methodology, approved by Decree of the State Construction Committee of Russia dated March 5, 2004 No. 15/1. Among them are typical forms:

• estimates for design and survey work;

• summary estimate.

The procedure for drawing up estimate documentation is prescribed in Section IV of the Methodology, approved by Decree of the State Construction Committee of Russia dated March 5, 2004 No. 15/1.

How to reflect in the accounting records of the customer organization the settlements with the contractor - an individual (not registered as an individual entrepreneur) for the performance of work under a contract? The organization entered into a contract agreement with an individual (not registered as an individual entrepreneur) to carry out cosmetic repairs in the office premises.

In accordance with the contract, the cost of work is 70,000 rubles. Payment for work performed is made after the parties sign the acceptance certificate for the work performed in cash from the organization’s cash desk. For the purposes of tax accounting of income and expenses, the organization uses the accrual method.

Civil relations

In accordance with paragraph 1 of Art. 702 of the Civil Code of the Russian Federation, under a contract, one party (contractor) undertakes to perform certain work on the instructions of the other party (customer) and deliver its result to the customer, and the customer undertakes to accept the result of the work and pay for it. A contract is concluded for the manufacture or processing (processing) of a thing or for the performance of other work with the transfer of its result to the customer (Clause 1 of Article 703 of the Civil Code of the Russian Federation).

If the contract does not provide for advance payment for the work performed or its individual stages, the customer is obliged to pay the contractor the agreed price after the final delivery of the work results, provided that the work is completed properly and on time, or with the customer’s consent ahead of schedule (clause 1 of Article 711 Civil Code of the Russian Federation).

Insurance premiums

Organizations are policyholders and payers of insurance premiums (clause “a”, paragraph 1, part 1, article 5 of the Federal Law of July 24, 2009 N 212-FZ “On insurance contributions to the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the Federal Fund compulsory health insurance").

The amount of payments under a contract to an individual who is not an entrepreneur is subject to insurance contributions to the Pension Fund of the Russian Federation and the Federal Compulsory Medical Insurance Fund. The amount of remuneration is included in the base for calculating these insurance premiums in full on the date of its accrual (Part 1, Article 7, Part 1, Article 8, Clause 1, Article 11 of Federal Law N 212-FZ).

The base for calculating insurance premiums is determined separately for each individual from the beginning of the billing period at the end of each calendar month on an accrual basis (Part 3, Article 8 of Federal Law No. 212-FZ).

Attention! For current premium rates and all changes for the current year, see the reference material “Insurance Premiums” on our portal.

In 2013, the following insurance premium rates are applied: to the Pension Fund of the Russian Federation - 22%, to the Federal Compulsory Medical Insurance Fund - 5.1% (Part 1, Article 58.2 of Federal Law No. 212-FZ).

Remuneration paid to an individual under a contract is not subject to contributions for compulsory social insurance in case of temporary disability and in connection with maternity, payable to the Social Insurance Fund of the Russian Federation (Clause 2, Part 3, Article 9 of Federal Law N 212-FZ ).

Also, this payment does not include contributions for compulsory social insurance against industrial accidents and occupational diseases (unless otherwise established in the contract for paid services) (paragraph 4, paragraph 1, article 5, paragraph 1, article 20.1 of the Federal Law of July 24, 1998 N 125-FZ).

We invite you to read: VHI policy: what it is, how much it costs and how to apply for it

Accounting

The cost of work performed is recognized in the organization’s accounting as an expense for ordinary activities on the date the parties sign the acceptance certificate for the work performed (clauses 5, 6, 6.1, 7, 16, 18 of the Accounting Regulations “Organization Expenses” PBU 10/99 , approved by Order of the Ministry of Finance of Russia dated 06.05.1999 N 33n).

The costs of repairing office premises are reflected in the debit of account 26 “General business expenses” (44 “Sales expenses” - for trade organizations) in correspondence with the credit of the account for accounting for settlements with the contractor (60 “Settlements with suppliers and contractors” or 76 “Settlements with various debtors and creditors") (Instructions for the application of the Chart of Accounts for accounting of financial and economic activities of organizations, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 N 94n).

Insurance premiums accrued on the amount of remuneration paid to the contractor also relate to expenses for ordinary activities of the organization on the date of their accrual (clauses 5, 6, 18 PBU 10/99). In this case, an entry is made in the accounting to the debit of account 26 (44) and the credit of account 69 “Calculations for social insurance and security” (Instructions for using the Chart of Accounts).

Corporate income tax

The organization's expenses associated with the payment of remuneration to an individual who is not on the organization's staff for performing work under a contract are taken into account as part of labor costs on the basis of clause 21 of Art. 255.

Under the accrual method, labor costs are recognized monthly based on the accrued amount (clause 4 of Article 272 of the Tax Code of the Russian Federation).

Insurance premiums accrued by the organization for the specified payment to the contractor are recognized as other expenses associated with production and sales on the date of their accrual (clauses 1, 45, clause 1, article 264, subclause 1, clause 7, article 272 of the Tax Code of the Russian Federation).

Personal income tax (NDFL)

An organization, as a result of relations with which an individual receives income, is recognized as a tax agent for personal income tax. In this case, the organization is obliged to calculate, withhold and transfer to the budget the corresponding amount of tax directly from the income of an individual upon their actual payment (clauses 1, 4 of Art.

226 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance of Russia dated April 25, 2011 N 03-04-05/3-292). The date of actual receipt of income is defined as the day of payment of income, including the transfer of income to the taxpayer’s bank accounts or, on his behalf, to the accounts of third parties - when receiving income in cash (clause 1 of Article 223 of the Tax Code of the Russian Federation) {amp}lt; *{amp}gt;.

The amount of tax is determined based on the amount of remuneration received by an individual using a rate of 13% (clause 6, clause 1, article 208, clause 1, article 210, clause 2, article 226, clause 1, article 224 of the Tax Code of the Russian Federation).

Analytical account symbols used in the posting table

69-2 “Calculations for pension provision”;

69-3 “Calculations for compulsory health insurance.”

Such an agreement attracts the attention of tax authorities. Tax officials may recognize it as a work activity and then the organization may be fined (Article 5.27 of the Code of Administrative Offenses of the Russian Federation). Article 15 of the Labor Code of the Russian Federation does not allow the conclusion of civil contracts that actually regulate labor relations between an employee and an employer.

Article 15 of the Labor Code of the Russian Federation states that the conclusion of civil contracts that actually regulate labor relations between an employee and an employer is not allowed. The minimum fine will be 5,000 rubles. In addition, you will have to pay some amounts to the employee, for example, compensation for vacation.

Insurance premium rates

Knowledge of the nuances regarding the imposition of taxes and fees on a civil partnership agreement will allow the company to calculate its benefits and decide which agreement with an individual is better to conclude.
It became clear whether to punch a check when making payments under GPC agreements

What is a GPC agreement

The essence of a civil contract (CLA) with an individual is that it is concluded when it is necessary to perform certain work. The customer pays the physicist’s income only after the performer has delivered the results of the work and the customer has accepted them (Clause 1, Article 702 of the Civil Code of the Russian Federation). The parties may also provide for an advance payment under the contract, but the final payment occurs upon completion.

As soon as the work under the contract is completed, the legal relationship between the customer and the contractor ceases. This is a one-time job, and the contractor under such an agreement is involved in performing such work once. An employee working under a civil contract is not a full-time employee.

A civil contract with an individual is regulated by the Civil Code of the Russian Federation, not the Labor Code.

Taxation of GPC agreements in 2021

The features of a civil law contract also result in its differences from an employment contract in terms of taxation and payment of insurance premiums. According to the GPC agreement, the company must pay taxes and fees, since the individual receives income. But she doesn’t pay all the dues.

But it's not that simple. Firstly, personal income tax and contributions in 2021 are paid only under agreements concluded with an individual living in the Russian Federation. Agreements with individual entrepreneurs are not subject to taxation (Article 226 of the Tax Code of the Russian Federation). Secondly, there are exceptions among individuals, which we will discuss further.

Below you can see a sample of a typical civil law contract for 2021.

Let's now take a closer look at which funds the company pays insurance premiums to under a civil contract with an individual. Not every GPC agreement provides for the payment of contributions in 2021. To make it easier to understand, see the table, which contains all the cases of concluding this type of agreement.

When paying insurance premiums under civil contracts in 2018, it is important to consider who the individual with whom you are signing the agreement is. Not every physicist’s income makes payments to the budget.

A GPC agreement is a civil law agreement, i.e. a civil law agreement (CLA). A party to this agreement may be one or more individuals and/or legal entities. GPA is any agreement concluded in accordance with the Civil Code of the Russian Federation and does not contradict the current civil legislation.

Civil contracts are conventionally divided:

• related to the transfer of property (donation, exchange, purchase and sale, etc.);
• contracts for the performance of work (contract, R&D, etc.) in accordance with Ch. 37 Civil Code of the Russian Federation;
• contracts for the provision of services (transportation, storage, commission, etc.) in accordance with Ch. 39, 51 Civil Code of the Russian Federation.

The difference between an employment contract and a GPC is primarily that an employment contract is regulated by the norms of the Labor Code of the Russian Federation, and the GPC is governed by civil law. The GPA cannot use terms and wording of labor legislation.

Many questions arise in a situation when a service invention (sample or model) is created. If, according to the labor functions enshrined in the employment contract or job description, the creation of this invention is prescribed, then this case is considered in the area of ​​labor legislation.

It should be taken into account that Part 2 of Art. 15 of the Labor Code of the Russian Federation directly prohibits the conclusion of civil contracts, which in their meaning regulate labor relations.

The Supreme Court of the Russian Federation came to the conclusion that in a number of cases, GPAs concluded with individual entrepreneurs, which provide for monthly remuneration, compliance with labor regulations, etc., should be reclassified as employment contracts, since they are illegal and infringe on the rights of employees (definition Sun dated 02.27.17 No. 302-KG17-382). This means that companies take a very big risk when they enter into GPAs, which are very similar to employment contracts.

In order to understand in which cases insurance premiums are paid and in which they are not paid, let’s look at the table.

Moreover, undocumented expenses are accepted for deduction as a percentage of the amount of accrued income established by clause 9 of Art. 421 Tax Code of the Russian Federation. For example, for the creation of databases and computer programs - 20%.

The question often arises: is it possible not to pay premiums if the GPC agreement stipulates that the insurance premiums are paid by the executor or contractor himself? The answer is clear: no. The condition that the contractor pays his insurance premiums will be considered void, since it contradicts current legislation.

The contractor under the GPA for the provision of services or performance of work can count on receiving compensation for his costs (clause 2 of Article 709, Article 783 of the Civil Code of the Russian Federation). You can compensate, for example, for the contractor’s documented expenses for materials, work, and services directly used to fulfill this GPC agreement.

All expenses subject to compensation must be documented. Otherwise, the taxpayer may have problems with the Federal Tax Service. This position is also shared by the regulatory authorities (subclause 2 of clause 1 of Article 422 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of the Russian Federation dated August 21, 2017 No. 03-15-06/53442).

But if a decision is made to compensate an individual for the costs of purchasing equipment, then if insurance premiums for such payments are not calculated, a dispute with the tax authorities is possible. Since compensation for the purchase of equipment or tools can be regarded as a payment option under the GPA, since the contractor will use this equipment to perform work under other contracts or for personal purposes.

Often, the GPA includes a condition for the payment of an advance. Moreover, the advance can be paid in a certain percentage or amount both for the completed stage of work and for the execution of the contract as a whole. In this case, when should contributions be calculated from GPC agreements - 2021? According to Art. 424 of the Tax Code of the Russian Federation, the date of payment and remuneration to an individual is the date of accrual of such payment. That is

under GPC agreements - the date of signing the acceptance certificate for work or services provided under the terms of the agreement. Therefore, the date of accrual of insurance premiums for GPC remuneration will be the date of accrual of such payment: for a separate stage or for the contract as a whole. A similar point of view is reflected in the letter of the Ministry of Finance of the Russian Federation dated July 21, 2017 No. 03-04-06/46733.

According to Art. 426 of the Tax Code of the Russian Federation for 2017–2020, the following rates of insurance contributions are established, which are applied to both wages and benefits under the GPA:

• for compulsory pension insurance - 22% within the limit and 10% on income exceeding this amount;
• Compulsory medical insurance - 5.1%.

The limit in 2021 for calculating insurance contributions for pension insurance is set at RUB 1,021,000. (Resolution of the Government of the Russian Federation dated November 15, 2017 No. 1378).

Accounting

The procedure for accounting for expenses under a construction contract depends on the duration of the concluded contract.

On this basis, construction contracts are divided into:

• short-term (if the work is performed within one reporting year);

• long-term (if the period of work takes more than 12 months or if the start and completion of work occur in different reporting years).

This conclusion follows from paragraph 1 of PBU 2/2008.

In this case, regardless of the duration of the work, the contractor’s expenses are included in expenses for ordinary activities (clause 5 of PBU 10/99, clause 10 of PBU 2/2008).

If contract work is short-term in nature, reflect the costs in the contractor’s accounting in the general manner (as costs of work) (clause 5 of PBU 10/99).

If construction work is long-term in nature, when reflecting operations under a construction contract in accounting, follow the rules of PBU 2/2008. According to this document, accounting for income, expenses and financial results is carried out separately for each executed contract (accounting object) in the context of analytical accounting. At the same time, with regard to cost accounting under some contracts, a number of features are provided.

Firstly, if one contract for a single project provides for the construction of a complex of facilities for one or several customers, then for accounting purposes the construction of each facility should be considered as the execution of a separate contract if the following conditions are simultaneously met:

• there is technical documentation for the construction of each facility;

• For each object, income and expenses can be reliably determined.

Secondly, two or more contracts concluded with one or more customers should be treated as one contract for accounting purposes if:

• individual contracts actually relate to a single project with a rate of profit determined as a whole for all contracts;

• contracts are executed simultaneously or sequentially (continuously, one after another).

Thirdly, if during the execution of a contract an additional construction object (additional work) is included in the technical documentation, then for accounting purposes the construction of this object (performance of work) should be considered as the execution of a separate contract. To do this, it is sufficient to fulfill at least one of the following conditions:

• the additional facility differs significantly in structural, technological or functional characteristics from the facilities provided for in the contract;

• the price of construction of an additional facility is determined on the basis of an additional estimate agreed upon by the parties.

Such rules are provided for in section II of PBU 2/2008.

Documentation of acceptance and transfer of work

Acceptance and transfer of work under a construction contract is formalized by an act signed by the customer and the contractor. This procedure applies regardless of the duration of the work under the contract. This follows from the provisions of paragraph 4 of Article 753 of the Civil Code of the Russian Federation.

To formalize the acceptance and transfer of work, an organization can use unified document forms approved by Decree of the State Statistics Committee of Russia dated November 11, 1999 No. 100. These include:

• act of acceptance of work performed (form No. KS-2) (drawn up on the basis of data from the log book of work performed according to form No. KS-6a);

• certificate of the cost of work performed and expenses (form No. KS-3);

• acceptance certificate for a completed construction project (form No. KS-11).

Moreover, such documents must contain the mandatory details provided for in Part 2 of Article 9 of the Law of December 6, 2011 No. 402-FZ. In addition, they must be approved by the head of the organization (Part 4 of Article 9 of the Law of December 6, 2011 No. 402-FZ).

In the act of acceptance of completed work (for example, according to form No. KS-2), provide a list of work performed by the contractor during the reporting period, indicating their cost. An act of acceptance of completed work (for example, in form No. KS-2) can be drawn up in two cases:

• upon acceptance by the customer of a stage of work, if stage-by-stage acceptance is provided for by the terms of the contract;

• to determine the cost of work performed by the contractor for a certain period of time for the purpose of making interim payments, if such payments are provided for by the terms of the contract.

In the first case, signing an act of acceptance of completed work (for example, in form No. KS-2) indicates acceptance of the completed stage of work in accordance with the contract. The risk of accidental death or damage to the result of the work passes to the customer (clause 3 of Article 753 of the Civil Code of the Russian Federation).

In the second case, the agreement of the parties should provide that the drawing up of an acceptance certificate for the work performed (for example, in form No. KS-2) does not indicate the customer’s acceptance of the results of the work performed with the transfer to him of the risks of accidental loss or damage to the results of the work. And also that acts are drawn up only for settlements between the parties. In this case, such documents are of an interim nature (clause 18 of the information letter of the Supreme Arbitration Court of the Russian Federation dated January 24, 2000 No. 51). The acts serve as the basis for determining the amount of the next advance payment and filling out a certificate of the cost of work performed (for example, according to form No. KS-3), which is presented to the customer for payment.

When filling out these forms, follow the recommendations contained in Resolution of the State Statistics Committee of Russia dated November 11, 1999 No. 100.

The cost indicated in the certificate of acceptance of work performed (for example, in form No. KS-2) may differ from the cost indicated in the certificate of cost of work performed (for example, in form No. KS-3). In particular, in the certificate, in addition to the cost of the work performed, reflected in the act, data on the cost of equipment payable by the customer, data about which is not included in the act, can be entered.

Document the acceptance by the customer of the completed construction facility with an acceptance certificate for the completed construction facility (for example, according to form No. KS-11).

Direct and indirect costs

All costs incurred by the contractor are divided into direct, indirect and other. This is provided for in paragraph 11 of PBU 2/2008.

Direct expenses include expenses that are directly related to the execution of a construction contract. They can be of two types:

• actual costs of executing the contract. For example, wages, depreciation, rent, cost of accepted subcontract work;

• Foreseen expenses are expected unavoidable expenses that are reimbursed by the customer under the terms of the contract. These, in particular, include the costs of eliminating deficiencies in projects and construction and installation works, dismantling equipment due to defects in anti-corrosion protection, etc.

We invite you to read: Agreement of donation of a house and land to two people

Debit 20 Credit 10 (68, 69, 70, 76, 60...) – direct costs under the construction contract are taken into account.

Anticipated direct costs can be recognized in one of two ways:

• forming a special reserve.

Debit 20 Credit 10 (68, 69, 70, 76, 60...) – anticipated direct costs under the construction contract are taken into account.

A reserve to cover anticipated expenses is created provided that such expenses can be reliably determined. The amount of the provision is an estimated liability. The procedure for forming the reserve shall be established in the accounting policy for accounting purposes. This is provided for in paragraph 7 of PBU 1/2008 and paragraph 12 of PBU 2/2008, the procedure for determining estimated liabilities is enshrined in PBU 8/2010.

In accounting, reflect the reserve for covering expenses in account 96 “Reserves for future expenses.” Analytical accounting for this account is carried out by type of reserves. Therefore, to account 96, open a subaccount “Reserve for covering anticipated expenses under a construction contract.” Additionally, in this sub-account, divide the amounts under different agreements (Instructions for the chart of accounts).

Debit 20 Credit 96 subaccount “Reserve for covering unforeseen expenses under a construction contract” – deductions were made to the reserve for covering unforeseen expenses.

Debit 96 subaccount “Reserve for covering anticipated expenses under a construction contract” Credit 10 (23, 25, 26, 60, 70, 76, 97...) – current expenses are written off from the reserve.

Costs directly related to the preparation and signing of the contract that the organization incurred before signing it are included in direct costs if it is probable that the contract will be signed. Such costs, in particular, include the costs of developing a feasibility study and preparing an insurance contract for the risks of construction work.

Taxation of contract

Payment of personal income tax under a contract

From payments to an individual under a work contract, the organization must withhold and transfer to the budget personal income tax (NDFL) upon actual payment (Article 226 of the Tax Code of the Russian Federation). Taxation is carried out at a rate of 13% (clause 1 of Article 224 of the Tax Code of the Russian Federation). The organization must also submit information about income to the tax authority (form 2-NDFL).

Payment of insurance premiums under a contract

In addition to personal income tax, from payments under a contract, the organization needs to calculate and pay insurance contributions to state extra-budgetary funds: pension fund (PFR), health insurance fund (FFOMS), but the amount is not subject to contributions to the social insurance fund (FSS).

Important! Insurance premiums for compulsory insurance against industrial accidents and occupational diseases are paid only if the contract contains conditions stipulating that the organization must pay these insurance premiums. Clause 1 of Article 5 No. 125-FZ “On compulsory social insurance against accidents at work and occupational diseases.”

How to work as an individual entrepreneur with VAT

Most often, individual entrepreneurs choose to work with various variations of the simplified taxation system (STS, UTII, Unified Agricultural Tax). However, most large companies work with VAT and it is beneficial for them to deal with the same taxpayers, since they will be able to take into account the amount of tax received when calculating liabilities. Therefore, even if an individual entrepreneur offers products at reduced prices without VAT, it is not always more profitable for the enterprise to buy from him. But for individual entrepreneurs, working with payers of this tax can mean concluding large and profitable contracts.

How to proceed? Obviously, if an entrepreneur wants to work with large enterprises, he will have to master VAT. When registering with the Federal Tax Service, an entrepreneur who has not submitted an application for one of the simplified systems automatically becomes a tax payer on a general basis. One of these taxes is VAT.

At the same time, he can apply for an exemption from paying it subject to a number of conditions specified in the Tax Code of the Russian Federation.

Cost accounting using your own materials

It happens that to carry out construction work, the customer provides materials on a toll basis. However, by default, the contract is drawn up as dependent on the contractor. That is, construction is carried out from the materials of the contractor, with his forces and means. This is provided for in paragraph 1 of Article 704 of the Civil Code of the Russian Federation.

Such material costs are taken into account as direct costs. Often the amount of such costs is clear in advance based on the estimate. Therefore, they are included in the expected direct costs.

The purchase of materials is reflected in the general order.

Next, the property is transferred to production. Why draw up one of the documents:

• limit-fence card, for example, in form No. M-8. This document is used when there are approved standards and plans for the consumption of materials;

• requirement-invoice (form M-11) or warehouse registration card (form M-17). They are used when there are no standards and plans and there is no need to transfer materials to a remote unit;

• an invoice for the release of materials to the third party (form M-15) is drawn up when materials are transferred to a geographically remote unit.

This is established by paragraphs 100, 109 and 126 of the Methodological Instructions, approved by Order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n.

Debit 20 Credit 10 (16) – materials written off for production (construction).

This procedure is provided for in the Instructions for the chart of accounts (accounts 10, 16, 20).

If expenses are expected, they can be written off against a special reserve.

In this case, the cost of materials is written off as the cost of work in accordance with the cost estimation methodology approved in the accounting policy.

If this is expressly provided for in the contract, then for construction work the customer can provide the contractor with materials on a toll basis.

Debit 003 – materials received for construction work.

Organize internal movements of the customer's materials on subaccounts of off-balance sheet account 003. When transferring materials to production, their cost does not affect the cost of your work.

Debit 20 Credit 02, 10, 23, 25, 26, 60, 68, 69, 70, 76… – the expenses of the performing organization for processing materials are taken into account.

Credit 003 – materials transferred to production are written off.

Credit 003 – unused materials were transferred to the customer.

This order follows from the Instructions for the chart of accounts (accounts 02, 10, 20, 23, 26, 60, 68, 69, 70, 76... 003).

The basis for such an entry will be a report on the consumption of materials and an invoice in form No. M-15.

Indirect costs include the part of the organization's general business expenses that falls on a specific contract. Set the procedure for distributing indirect costs between contracts yourself in your accounting policy for accounting purposes. For example, you can distribute indirect costs in proportion to the revenue for each of the contracts or in proportion to direct costs.

Debit 20 Credit 26 (25, 23) – indirect expenses are taken into account.

This procedure is provided for in paragraph 13 of PBU 2/2008.

Accounting under contract

1. We reflect the accrual to an individual for work performed

D 20 (26.44) – K 76

20 “Main production”, 26 “General business expenses”, 44 “Sales expenses”, 76 “Settlements with various debtors and creditors”.

We invite you to familiarize yourself with: Contract for the transfer of property into ownership

2. We reflect the personal income tax withholding from the amount

D 76 – K 68.01

68.01 “Income tax for individuals.”

3. We calculate insurance contributions to the pension fund and health insurance fund

D 20 (26, 44) – K 69.02

69.02 “Calculations for pension provision”

D 20 (26, 44) – K 69.03

69.03 “Calculations for health insurance”

4. We calculate insurance premiums for accidents at work

D 20 (26, 44) – K 69.01.2

69.01.2 “Calculations for compulsory social insurance against accidents at work and occupational diseases.”

5. We reflect the amount of payment to an individual

D 76 – K 50 (51)

6. We transfer personal income tax to the budget

D 68.01 – K 51

It happens that an organization enters into a contract with its own employee. In this case, the amount is reflected in the credit of account 70 “Settlements with personnel for wages”. If you have entered into a contract agreement with an employee who is on the staff of your organization, then the work under this agreement must be carried out during non-working hours. Otherwise, the work will be considered part-time work.

If a contract is concluded with individuals who are employees of your organization, then you will not be able to attribute payments under this contract to the cost price (Clause 21, Article 255 of the Tax Code of the Russian Federation).

We hope that our material contained useful information for you.

• You learned that there are four types of contract.
• Each type of contract must be properly drawn up.
• After completing the task, it is necessary to issue a certificate of completion of work.
• Payment under this agreement is made within the established time frame.

When concluding a contract, we recommend that you very clearly indicate the name of the customer and contractor, the duration and type of work performed, as well as the price of the contract. In this case, the price may consist of two parts: remuneration for the contractor’s work and compensation for his costs (clauses 1 and 2 of Article 709 of the Civil Code of the Russian Federation). All this is important so that the tax inspectorate does not consider the contract to be a labor contract. Good luck to you!

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What should you pay attention to when determining the subject of the contract?

So, in order for a contract to be considered concluded, first of all, it is necessary to agree on the subject of the contract.

The existing arbitration practice on disputes arising from a work contract indicates that the subject matter is considered agreed upon if the contract specifies the type of work, its content or volume (see, for example, resolutions of the Federal Antimonopoly Service of the Volga-Vyatka District dated June 13, 2012 No. A11-4361/2011, Federal Antimonopoly Service of the East Siberian District dated June 14, 2012 No. A78-8244/2011). In addition, the contract can indicate the tangible result of such work (for example, a renovated office or a manufactured item).

Often the text of the contract itself does not contain a list of work that needs to be performed by the contractor, but is included in a separate document that is an appendix to the contract.

Such a document can be an estimate signed by both parties, or an additional agreement to the contract drawn up in any form. This practice of agreeing on a contract is quite acceptable, especially in cases where several types of work are required to create or process a thing. For example, the installation of a transformer substation may include work on assembling a central unit, work on installing power systems, work on assembling protective installations, etc.

However, if a contract is concluded, for example, for clearing snow from an office area, it will be sufficient to indicate in the contract only the work on such clearing.

other expenses

Other construction contract costs may include:

• certain types of costs for managing an organization;

• other costs, the reimbursement of which by the customer is specifically provided for in the contract.

Debit 20 Credit 26 (60, 76, 70, 69...) – other expenses reimbursed by the customer are reflected as expenses under the construction contract.

This procedure is provided for in paragraph 14 of PBU 2/2008.

In this case, it is necessary to distinguish between other expenses under a construction contract, which are reflected in production accounts (clause 14 of PBU 2/2008), and other expenses that are immediately written off to financial results (clause 11 of PBU 10/99). In particular, other expenses that are accounted for in account 91 include costs associated with the preparation of a construction contract if the organization does not have sufficient confidence that the contract will be signed (clause 15 PBU 2/2008, clause 11 PBU 10 /99).

Expenses under a construction contract are taken into account in the reporting period to which they relate. In this case, expenses for completed work are taken into account as production costs, and expenses associated with upcoming work are taken into account as deferred expenses (in the debit of account 97). This is stated in paragraph 16 of PBU 2/2008.

Debit 97 Credit (25, 26, 23, 60, 70, 69...) – reflects deferred expenses under the construction contract.

Debit 20 Credit 97 – included in production expenses are costs previously recorded as deferred expenses.

Debit 90-2 Credit 20 – expenses under a construction contract are recognized.

This procedure for recognizing expenses is provided for in paragraph 16 of PBU 2/2008.

Some information about the costs of construction contracts must be disclosed in the contractor's financial statements. For more information about this, see How to record a contractor's income under a construction contract.

The procedure for calculating taxes depends on the tax system that the organization uses.

Short term construction work

In accounting, reflect the proceeds from the implementation of contract work that is short-term in nature by posting:

Debit 62 Credit 90-1 – revenue from the implementation of work is reflected (based on the acceptance certificate).

The cost of work is written off from the credit of account 20 “Main production”:

Debit 90-2 Credit 20 – the cost of work performed is taken into account as expenses.

For more information on the formation of the cost of contract work, see How to reflect the contractor's expenses under a construction contract in accounting.

If the contractor is a VAT payer, simultaneously with the recognition of revenue in accounting, reflect the accrual of this tax (subparagraph 1, paragraph 1, Article 146, subparagraph 1, paragraph 1, Article 167 of the Tax Code of the Russian Federation):

Debit 90-3 Credit 68 subaccount “Calculations for VAT” - VAT is charged on the cost of contract work.

The customer can pay the contractor for the work in advance - in advance.

Reflect the received advance payment on a separate sub-account opened to account 62:

Debit 51 Credit 62 subaccount “Settlements for advances received” - an advance was received from the customer.

After the prepaid work is completed (the parties sign the acceptance certificate), make the following entries in the accounting:

Debit 62 Credit 90-1 – revenue from the implementation of work is reflected (based on the acceptance certificate);

Debit 90-2 Credit 20 – the cost of work performed is taken into account as expenses;

Debit 62 subaccount “Settlements on advances received” Credit 62 – the advance (part of the advance) received from the customer is credited.

This accounting procedure is based on the provisions of paragraph 3 of PBU 9/99 and the Instructions for the chart of accounts.

If the contractor is a VAT payer, then upon receiving an advance payment he is obliged to charge VAT on this amount and issue an invoice to the customer within five calendar days (clauses 1 and 3 of Article 168 of the Tax Code of the Russian Federation):

Debit 76 subaccount “Calculations for VAT on advances received” Credit 68 subaccount “Calculations for VAT” - VAT is charged on the advance received for the completion of upcoming work.

When performing work on account of the advance received, as well as when terminating the contract and returning the advance to the customer, the contractor shall deduct the VAT previously accrued on the advance (clauses 8 and 5 of Article 171 of the Tax Code of the Russian Federation):

Debit 68 subaccount “Calculations for VAT” Credit 76 subaccount “Calculations for VAT on advances received” – VAT previously accrued on the advance received is accepted for deduction.

Situation: how can a contractor reflect in accounting and taxation the proceeds from the implementation of work under a construction contract if the customer refuses to sign the acceptance certificate? The work is short-term in nature. The Contractor applies the general taxation system and uses the accrual method when calculating income tax.

The basis for reflecting in the contractor’s accounting the proceeds from the implementation of work under a construction contract is a document (act) confirming the acceptance and transfer of work, signed by the contractor and the customer (subclause “d”, clause 12 and clause 13 of PBU 9/99 , part 1 of article 9 of the Law of December 6, 2011 No. 402-FZ, paragraph 4 of article 753 of the Civil Code of the Russian Federation).

Upon completion of the work, the contractor must inform the customer that he is ready to deliver the result of the work (stage of work). A standard sample of such a message is not approved by law, so the contractor has the right to draw it up in any form. Having received such a message, the customer is obliged to immediately begin accepting the work performed (Clause 1 of Article 753 of the Civil Code of the Russian Federation).

If the customer refuses to sign the act, the contractor must make an appropriate note about this in the act and sign it unilaterally (clause 4 of article 753 of the Civil Code of the Russian Federation). According to civil law, such an act is considered valid, which means it can serve as the basis for reflecting proceeds from sales in accounting and tax accounting (clauses 12, 13 PBU 9/99, clause 3 of Article 271, clause 1 of Article 39 of the Tax Code RF).

The moment of determining the tax base for VAT (in the absence of prepayment) is the day of transfer of the results of the work performed (subclause 1, clause 1, article 167 of the Tax Code of the Russian Federation). The fact of such transfer is confirmed by an acceptance certificate (including one signed unilaterally with a note indicating the other party’s refusal to sign) (Clause 4 of Article 753 of the Civil Code of the Russian Federation). Therefore, at the time of signing the act, VAT must be charged on the cost of the work performed. This rule applies if the debt is repaid voluntarily.

If the debt is collected in court, do this. The day the work was completed will be the date of entry into force of the court decision, according to which the court recognized that the contractor had fulfilled all the terms of the contract. Therefore, accrue VAT on this date, and not on the date of signing the act unilaterally (clause 1 of Article 167 of the Tax Code of the Russian Federation). Such clarifications are contained in letters of the Ministry of Finance of Russia dated May 18, 2015 No. 03-07-RZ/28436, dated February 2, 2015 No. 03-07-10/3962, dated December 31, 2014 No. 03-03-06/ 1/68990.

OSNO and UTII

On the application of VAT deductions for goods (works, services) purchased for contract work, see Under what conditions can input VAT be deducted.

The object of UTII taxation is imputed income (clause 1 of Article 346.29 of the Tax Code of the Russian Federation). Construction activities that the contractor carries out under a construction contract are not transferred to UTII (clause 2 of Article 346.26 of the Tax Code of the Russian Federation). When performing work under such contracts, taxes must be paid in accordance with the general or simplified taxation system.

The object of UTII taxation is imputed income (clause 1 of Article 346.29 of the Tax Code of the Russian Federation). The activities carried out by the contractor under a construction contract are not transferred to UTII (Clause 2 of Article 346.26 of the Tax Code of the Russian Federation). Therefore, if the contractor applies the general taxation system and pays UTII, expenses under the construction contract must be taken into account in accordance with the general taxation system.

Full list

Closing documents for accounting include:

• Contracts.
• Accounts.
• Receipts (both sales and cash receipts) and receipts.
• Money orders.
• Bank statements if payment was made through a bank.
• Cash order. It confirms that certain monetary transactions were carried out with money within the company.
• Advance report: required to note that their general cash was spent on any needs. It is accompanied by papers that can confirm that the money was spent on what it was allocated for (for example, checks). Download the advance report form
• An invoice or act confirming the provision of services.
• Commodity transport report (abbreviated TTN). A document containing all the data on the transportation of goods. Route, travel start date, travel time and arrival date, quantity of goods, cost per unit, weight, full information about the driver and car. Download TTN form
• Time sheet. They indicate the time that each employee must work and data on how much he has already worked. time sheet T13 and time sheet T12
• Payroll and payroll. One states how much money needs to be issued in the form of wages or bonuses, and the other statement states how much has been issued and the recorded fact of issuance.
• Invoice.

Invoice

A document that has a strict form and which is the basis for the deduction or reimbursement of tax (for example, for transportation) for its value. In essence, this is a special case of an invoice, i.e. additional document. It is used only by those who participate in the general taxation system and pay VAT.

As with all such documents, the invoice must have two copies. One must be kept by the seller, and he must transfer the other to the buyer.

Transferred no later than 5 days from shipment of the goods. When checking the tax authorities, this document is very important, so its presence is mandatory first of all.

Consignment note (form TORG-12)

Consignment note (N TORG-12)

Issued to the recipient as proof of completion of work or shipment of goods. Also has two copies. Both are held by the seller until the goods are shipped and received from the buyer. Typically used between legal entities rather than individuals.

It is convenient, understandable and does not contain unnecessary and useless data that the buyer does not need. However, it does not prohibit individuals from using their own form, the main thing is that it meets the basic requirements (more on them later).

Payment documents

Checks – are used if the goods were paid for in cash. Orders - have the same function as checks, but if the goods were paid for by bank transfer. In addition, the payment order proves that a transfer was made from one person to another using the details specified in it.

There is a so-called strict reporting form. Its function is that when providing services to individuals, it can replace a cash receipt, but this works until July 1, 2021, and for catering employees until July 1, 2021 (replaces a receipt when purchasing food in a public catering facility).

The cash receipt must be printed using cash register equipment. If there is none (but there is a device that can print), then in some cases there is a deferment for entrepreneurs working with UTII or on the basis of a patent.

The choice of certain payment documents depends on the type of activity and tax system. The form has its own, but must have mandatory details. The strict reporting form is printed in a printing house; printing on a regular printer is prohibited.

According to the rules of the tax organization, invoices are not a mandatory document. However, in case of discrepancies, the invoices will provide direct evidence that a particular condition has been met.

In addition to this function, accounts have practical benefits, since they reflect the list and quantity of goods, their cost and details for transferring funds. If the invoice spells out all the terms in detail, it can replace the contract.

simplified tax system

If an organization applies a simplification and pays a single tax on income, then expenses under a construction contract will not reduce the tax base. This is due to the fact that such organizations do not take into account any expenses at all (clause 1 of Article 346.18 of the Tax Code of the Russian Federation).

If an organization pays a single tax on the difference between income and expenses, proceeds from the sale of contract work can be reduced by the amount of expenses associated with their implementation (clause 2 of Article 346.18 of the Tax Code of the Russian Federation). In this case, take into account only those expenses that are named in paragraph 1 of Article 346.16 of the Tax Code of the Russian Federation. Such expenses may include, in particular:

• the amount of “input” VAT paid to suppliers, etc.

For more information about accounting for expenses when simplifying, see What expenses should be taken into account when calculating the single tax on the simplified tax system.

Why are closing documents needed?

In order for a transaction to be legally considered completed, and not just paid, there must be confirmation of this fact in writing. This is why there are various closing documents.

The accounting of each enterprise requires strict accounting of transactions and the availability of all papers related to them. If money is transferred for a product or service, then the accountant must have a document stating that the company received it. And vice versa, the counterparty company uses the same documents to close the transaction for the receipt of funds and confirms exactly why it was paid this amount.

For different types of transactions, there are various contracts, as well as papers that confirm their implementation. We will consider what closing documents are for each of them below.