Explanatory note on VAT if the counterparty did not reflect the sales for 2021

Before submitting a VAT return, each accountant must verify the accuracy of the data on invoices registered in the database, because information about them is uploaded to the Federal Tax Service as part of the declaration.

You can reduce the likelihood of technical errors and discrepancies when filling it out by reconciling invoice data with counterparties, which can be done using the 1C: Reconciliation .

In this publication we will look at an example of working with the 1C:Sverka .

When is it necessary to provide explanations for VAT?

The list of reasons on which the Federal Tax Service can request an explanatory note on VAT has expanded in 2021. The form of response to the request remains the same. Before this period, there were 4 reasons for sending a claim to the taxpayer - each of them had its own code. In 2020, there were 9 bases - each still has its own unique code.

Tax discrepancy codes effective from 2021 are presented in the table below:

Code	Grounds for filing an explanatory note
0000000001	Discrepancies in reporting between counterparties
0000000002	Discrepancy between the submitted data in section 8 of the purchase book and section 9 of the sales book
0000000003	Inconsistency between issued and received invoices in sections 10 and 11
0000000004	Error in a specific column of the tax report
0000000005	The calendar date of the issued invoice was incorrectly indicated in sections 8 to 12
0000000006	The calendar date of the application for deduction exceeds the legally established period of 3 years
0000000007	The calendar date of the VAT invoice does not correspond to the period of activity of the taxpayer
0000000008	There was an error in coding transactions in sections 8-12 of the submitted tax return
0000000009	Canceling entries are incorrectly reflected in section 9 of the submitted VAT return

Warnings regarding the contents of the declaration

This category includes transactions in which incorrect details of counterparties were indicated, if the counterparty is not registered in the Unified State Register of Real Estate, as well as transactions in which logical control errors were detected and recommended for correction. There can be multiple warnings on one invoice.

Possible reasons for warnings:

The control ratio for TIN and/or checkpoint is not met;
The counterparty is not registered in the Unified State Register of Real Estate;
The invoice date in the sales book is not from the current tax period;
Incorrect use of transaction type code, etc.

To view the full text of the warning, you should hover your mouse over the line with the invoice, a tooltip will appear, or open the invoice by clicking on the line.

To correct warnings:

Edit data directly in VAT+;
Make changes to the book in the accounting system in which it was prepared. Then re-download information from purchase/sales books, invoice journals. Reconciliation will occur automatically, the counter of the “Warnings on the contents of the declaration” category will change.

How to properly prepare an explanation for the Federal Tax Service

If a taxpayer receives a request from tax authorities regarding a discrepancy between VAT and the counterparty’s reporting, a number of actions must be taken:

carefully check your tax return;
submit an explanation to the Federal Tax Service.

When checking the submitted declaration, special attention should be paid to:

correct completion of the reporting document;
the correctness of the arithmetic calculations performed;
carry out a reconciliation of the collected data with the primary VAT accounting documents - accounting journals, invoices, purchase and sales books;
check each reflected tax at the stated rates.

During the self-check, one of the results may be revealed:

no errors found;
errors were detected, but the VAT amount was not underestimated;
errors were discovered, the tax amount was underestimated.

Depending on the result obtained, the procedure will be different.

You definitely need to check how the request from the tax authorities is drawn up. The date of compilation, serial number, details of the declaration for which clarification is required, details of invoices, etc. must be indicated. The code for which the explanatory note must be drawn up must also be indicated.

If the request is drawn up incorrectly, the taxpayer has the right to request clarification from the tax authorities upon request.

No errors found

If the taxpayer’s independent audit results in the absence of errors, it is necessary to request clarification from the tax authorities. You must send a written explanation indicating:

that there is no need to submit an updated declaration;
about the absence of errors, shortcomings and discrepancies;
about the reasons why the organization does not consider the identified discrepancies to be an error.

A written explanation is sent to the tax office from which the request was received.

Errors were detected, but the tax amount was not underestimated

During an independent audit, errors and shortcomings may be identified, but they did not lead to a distortion of the VAT amount. The taxpayer may take one of the following actions:

prepare written explanations and send them to the tax office;
prepare an adjustment report and send it to the Federal Tax Service;
prepare both clarifications and an adjustment report, and send both documents to the Federal Tax Service.

Tax authorities recommend preparing both documents. But this is a taxpayer’s right, not an obligation. Penalties for violation of the recommendation are not established by law.

Errors were identified, the tax amount was underestimated

During the audit, errors may be identified that led to an unintentional understatement of the tax base and the amount of tax. The taxpayer needs to prepare an adjustment report; there is no need to prepare a written explanation.

The amount of tax that was erroneously not paid to the budget is subject to mandatory payment. To avoid the accrual of sanctions, you should independently calculate the penalties, pay the arrears and penalties, and only then submit an updated tax return. If this is not done, arrears will form. Tax authorities will fine the taxpayer and begin to charge penalties on the amount of the debt.

How to send requests to suppliers?

Sending requests to suppliers

Requests to suppliers are generated using the link Requests to suppliers for processing Reconciliation of VAT accounting data .

When specifying the reconciliation period, the tabular part of the Requests to suppliers is filled in automatically based on the data of supplier invoices registered in the database of our Organization.

To send a request, suppliers must:

check the boxes of the required suppliers;
check if the Email ;
Click the Request registries .

The program, analyzing the data in the Registry , automatically assigns the status:
Not requested – the request to provide a register of supplier invoices has not been sent;
Requested – a request to provide a register of supplier invoices has been sent;
Waiting for loading – the supplier has sent a response, but it has not yet been loaded into the database;
Outdated – the data of invoices from the supplier has changed in the database or invoices have appeared that were not previously included in the register;
Ready for reconciliation – the supplier register is loaded into the database, you can proceed to reconciliation.

Receiving requests from suppliers

After sending the request, the supplier will receive an email containing:

instructions for sending a response to the buyer;
XML file with the buyer's request.

Receiving a response from the supplier

Upon receipt of a request for a register of invoices, the supplier must respond.

For more information about the procedure for processing requests from buyers, read below in the section How to respond to customer requests?

The supplier can respond to the buyer’s request for a register of invoices if he is also a user of the 1C: Reconciliation .
More details about the conditions for connecting the 1C:Sverka above in the section How to connect the 1C:Sverka service?

In our database, the response from the supplier will come and will be located on the link Supplier Responses .

Reconciliation of SF data with suppliers

In order to reconcile with the received register of supplier invoices, you must follow the Reconciliation and click the Reconcile .

The comparative report is generated based on data on the SF registered by the supplier and our Organization in the 1C databases. Information about the SF from the supplier's database is indicated in the line According to the supplier's data , data from our database is indicated in the line According to our data .

If the fields are highlighted in red, it means there are discrepancies in the invoice data registered in our database and in the supplier’s database. Discrepancies may be in the invoice number, its date or in the amount. It is necessary to identify the error and, if necessary, correct it.

How to correctly write an explanation for a requirement

Since 2015, VAT payers have been reporting to the state electronically. Accordingly, the request for clarification of discrepancies with the counterparty is also sent in electronic form. The explanatory note must also be submitted in electronic form via telecommunications channel.

If the taxpayer sends an explanatory note in paper form to the tax office, it will not be accepted. The Federal Tax Service will consider that explanations for the discrepancies were not provided. If the tax amount was underestimated due to errors, the taxpayer will have to pay a fine.

The form of the explanatory note in electronic form has been approved. A formalized response to tax authorities’ requests to provide an explanatory note due to VAT discrepancies between counterparties will be considered a document drawn up in the form of an .xml file. Files of other formats are not accepted by the tax service as explanations.

The taxpayer has the right, along with the formalized response form, to send an additional one, drawn up on paper or in the form of a file, but in a different format. For example, in the form of a scanned copy of .pdf or .jpeg format. This answer will be accepted. When registering, you must indicate that this is “Addition to the response to requirement No.... from...”.

How to respond to customer requests?

Receiving inquiries from buyers

Upon receipt of a request from a buyer for invoice reconciliation, an email will be sent containing:

instructions for sending a response to the buyer;
XML file with the buyer's request.

To load a file with a buyer’s request into the program, you must:

open the 1C: Reconciliation through the section Sales - Settlements with counterparties - Reconciliation of VAT accounting data or Purchases - Settlements with counterparties - Reconciliation of VAT accounting data;
follow the link Buyer requests , where the request from the buyer will be located, it will be loaded automatically.

To respond to a buyer's request you must:

check the boxes for customer requests to whom you can send a response on invoices registered in the database;
click the Reply .

Receiving a response from the buyer

The response will be sent to the buyer and will be in his database via the link Supplier Responses .

If you are a subscriber to the BukhExpert8: Rubricator 1C Accounting system, then read additional material on the topic:
Inventory of settlements with counterparties
Analysis of sub-accounts by Counterparties and Agreements
Analysis of invoice statuses in receipt and sales journals
Express check of VAT accounting
Analysis of VAT accounting
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Read also: Types of settlements with hotel clients. Strict reporting forms

Explanatory note on VAT and filing deadlines

According to paragraph 3 of Art. 88 of the Tax Code of the Russian Federation, an explanation of discrepancies with the counterparty’s taxes must be sent to the Federal Tax Service within 5 days from the date of receipt of the request for explanations. Sometimes tax authorities independently set a time period during which an explanation must be sent to them.

This period will be more than 5 days, as it requires the taxpayer to more thoroughly check the submitted reporting documents. The Federal Tax Service inspector conducting a desk audit may set a longer period for the taxpayer to prepare clarifications if:

discrepancies with the counterparty led to an underestimation of the amount of tax payable to the budget;
discrepancies with the counterparty led to an overestimation of the amount of VAT claimed for reimbursement.

When a taxpayer receives a request from the tax inspectorate to provide explanations regarding a discrepancy in amounts with a counterparty, the taxpayer must send a receipt to the Federal Tax Service confirming receipt of the request. This must be done within 6 days of receipt. The receipt is sent to the Federal Tax Service via telecommunication channels through an electronic document management operator.

From the calendar date on which the receipt was sent, the 5-day (or other period, if specified in the request) period for sending an explanatory note begins to run.

All deadlines are calculated in working days.

Explanatory note - competent content

It is important to draw up an explanatory note correctly so that the tax authority no longer has questions regarding discrepancies. The following information must be reflected:

about the buyer and seller - an abbreviated name indicating the organizational and legal form;
taxpayer details - INN, KPP, OKTMO, legal and actual address, contact information - telephone number, email address;
details of the request for clarification - number and date;
the period for which discrepancies with the seller were identified;
reasons why the discrepancy occurred.

The explanatory note is signed by the head of the taxpayer and the chief accountant. Since telecommunication channels are used, an electronic signature is used to certify the document.

Reasons why the seller may not reflect the sale

In paragraph 1.1 of Art. 172 of the Tax Code of the Russian Federation provides a list of grounds on which the seller has the right to transfer the VAT deduction to a future period. This is the most common reason for discrepancies in submitted reports between counterparties. If the seller uses the legal right of transfer, that is, is a responsible taxpayer who does not violate the requirements of Art. 172 of the Tax Code of the Russian Federation, the buyer must indicate this in the explanatory note.

Attached to the note are documents confirming the legality of the transaction - a contract or agreement, delivery notes, invoices. If the clarification is completed correctly, the seller will be required to confirm the transfer of VAT to a future period. Now he will have to submit explanations and explain things to the tax authorities. But with the right approach it’s not difficult to do! There is no need to rush and submit an updated declaration.

What happens if you don’t check the VAT payer?

Ignoring the need to verify the counterparty leads to these negative consequences:

Loss associated with refusal to deduct VAT.
Losses associated with the fact that the customer cannot fulfill its obligations.
Increased attention from the tax authorities.

For an in-depth check of VAT payers, you can contact specialized companies. However, in most cases this is not necessary. All required information can be obtained from free services.

What to do if the seller turns out to be an unscrupulous taxpayer

There are situations when an organization purchases goods or services that fall under preferential VAT taxation. In this case, the seller, without taking into account the benefit, issues an invoice with tax at the standard rate. The buyer, considering the purchased goods or services as a basis for applying a deduction, prepares a declaration and sends it to the Federal Tax Service.

Tax officials conduct a desk audit and identify discrepancies in VAT between the buyer and seller. VAT refund will be refused because the supplier did not pay it to the budget. The seller will be classified as an unscrupulous taxpayer, since by imposing VAT on preferential transactions, he increased the cost of goods or services by the amount of tax that remained with him.

The Ministry of Finance has clearly clarified this issue – “input” VAT cannot be deducted on an issued invoice for which there is no source of reimbursement. Judicial practice confirms the position of the Ministry of Finance - collecting VAT from a counterparty is impossible!

The buyer has the right to demand from an unscrupulous seller the return of the amount of VAT that was unjustifiably collected from him. Fraud with VAT can be regarded as illegal enrichment of the supplier and the use of other people's funds. The buyer can demand not only a refund of the tax amount, but also interest for the intentional use of someone else's finances. Judicial practice on such disputes is quite extensive; the courts side with the buyers.

To minimize the risks of such situations, the buyer can demand from the seller copies of payment documents confirming the transfer of VAT to the budget. But not every seller will agree to this, because financial documents constitute a trade secret. Therefore, it is difficult for buyers to protect themselves from unscrupulous suppliers. Before concluding a contract, it is recommended to check the supplier through the services of the Federal Tax Service.

Report “Register of invoices received”

The Register of invoices received report opens from the Purchases – VAT Reports section.
Invoices for transactions received from the supplier and invoices for advances issued to the supplier are displayed in sections in the report. The register includes all invoices received by the organization (in the KORP version - including separate divisions) from the supplier (including separate divisions of the supplier). The printed form of the register can be saved to a file in standard formats for saving a spreadsheet document (see Fig. 7).

Rice. 7. Register of invoices received

Liability if an explanatory note is not submitted on time

Within 6 days from the moment the taxpayer receives a request for clarification from the tax authorities via telecommunications channel, it is necessary to send a receipt to the Federal Tax Service. As soon as the receipt is sent, the 5-day period for sending an explanatory note begins to run.

If the taxpayer does not meet the 5-day deadline (or other period specified by the Federal Tax Service in the requirement), he will be held accountable in the form of a fine. The state treasury will have to contribute:

5,000 rubles if the demand is not sent to the Federal Tax Service or is sent after the deadline;
20,000 rubles if the violation is repeated.

Why do you need to check?

Before cooperating with a new counterparty, you need to check its reliability. First of all, you need to make sure that the potential partner is not a fly-by-night company. It is important to confirm that the counterparty pays taxes correctly.

The law does not oblige the company to carry out verification. This is the right of every company, not an obligation. However, it must be taken into account that the invoice provided by the supplier is invalid if he is deprived of a taxpayer certificate. That is, it will not be possible to receive a deduction for input VAT. Therefore, the company will have a loss.

How to exercise due diligence in relation to a counterparty ?

The law does not provide for any liability for a company that has entered into an agreement with an unscrupulous taxpayer. There are no sanctions imposed on her. However, in practice, the firm has responsibilities. In particular, these are the following negative consequences:

Deprivation of the right to deduct input tax.
Special attention from the Federal Tax Service.
The need to prove your case in court if the company does not agree with the Federal Tax Service.

That is, the company has reasons to exercise caution.

How to check the integrity of a counterparty as a taxpayer ?