Procedure for reimbursement of transportation costs by the buyer

Methods for reimbursement of transportation costs under a supply agreement

The supply agreement may provide for several options for reimbursement of transportation costs by the buyer. For clarity, we presented them in the form of a diagram:

When reimbursement of transportation costs using method No. 1, the supplier does not participate in the transportation of goods. He simply gives the goods to the buyer or the carrier hired by him. This is where his obligations end. Therefore, this method of reimbursement of transportation costs is not taken into account in any way in the accounting and tax accounting of the seller.

But the options for reimbursement of transportation costs provided for in method No. 2 require their reflection in the supplier’s accounting. Let's look at each of them in detail.

Legal costs

Legal costs represent state fees and expenses in connection with the consideration of the case in court. The Arbitration Procedure Code of the Russian Federation (Article 101) and the Code of Civil Procedure of the Russian Federation (Article 94) refer to them, in particular:

• expenses for lawyers, representatives of the parties;
• expenses for conducting an inspection and collecting evidence;
• living expenses due to the need to appear in court, etc.

Indicative in this sense is the determination of the Constitutional Court, considering the dispute between an organization and the tax service No. 22 dated 20-02-02, which equates legal costs to losses incurred by the organization as a result of unlawful actions of the Federal Tax Service, and prescribes mandatory compensation in full. Some of them, in particular the costs of a lawyer and a consultant, for an organization that is just filing a lawsuit, are pre-trial; in fact, the trial has not yet taken place, but the costs have been incurred.

How to compensate for material damage ?

Situation: an organization files a lawsuit against a counterparty. It is unknown whether the claim will be won, and the costs of a lawyer have already been incurred. How to reflect them in NU and BU? Let's consider the case when an organization is on OSNO as the most complex in terms of accounting nuances.

The Tax Code of the Russian Federation (Article 252) allows you to include economically justified amounts in expenses. In this case, this condition is met: the economic feasibility lies in the possibility of recovering the debt from the counterparty in court. Confirmation of expenses consists of the presence of any document, for example, an act on the provision of services by a law firm, signed by both parties, recording the specified business transaction. Please note that documents evidencing payment for services, for example, bank payment orders, can only supplement the act, but not replace it as confirmation. Expenses are most often recognized on the date of signing the act (although, according to Article 272-7, paragraph 3, the organization may provide for other deadlines, for example, in accordance with the provisions of the agreement, on the last date of the reporting or tax period).

Expenses are classified as other and are reflected in the BU by posting D 91 K 60 (or 76).

Reimbursement of expenses for own transport services

Agreement

Before delivering the goods, the seller needs to decide on the method of accounting for transport services:

• in the cost of goods - in the supply contract;
• a separate amount - in the contract for transport services.

When taking into account the costs of transporting goods in the cost of goods, fix the amount of transport costs in the supply agreement. In particular, you enter the cost of the goods including VAT and indicate below that it includes the costs of transporting the goods to the buyer in the amount of NNNNN,NN rubles. If you wish, please note that when returning the goods, payment received from the buyer in relation to shipping costs incurred will not be refunded.

If the seller does not highlight the conditions and amount of reimbursement for the transportation of goods, but simply indicates the cost of the goods, then he may encounter troubles:

• firstly, when returning the goods, the buyer will have to return the entire cost specified in the contract, including the cost of delivery added to it;
• secondly, tax authorities can exclude the costs of transporting goods from the calculation of income tax on the principle “there are no conditions in the contract for the delivery of goods, i.e. the seller does not have to make it, and therefore the costs of transporting goods are not justified in any way” .

The best option for reimbursement and confirmation of transport services provided would be to form a separate contract (or additional agreement) for the transportation of goods. It will clearly indicate that the buyer is provided with services for the delivery of goods to the address specified by him. And he must pay them within a certain period. With this option, the seller maintains separate records for the sale of goods and the provision of transport services.

Source documents

When taking into account the services for transporting goods in its cost, the supplier issues a consignment note. The cost of transport services should not be indicated separately from the cost of the goods. This is due to the fact that the delivery note is intended to confirm the sale of goods and materials. And services do not belong to inventory items.

You can familiarize yourself with filling out the consignment note in our article “Unified form TORG-12 - form and sample.”

To confirm to the tax authorities that the goods have been transported, the supplier must issue a waybill. Details about the rules for filling it out are set out in our article “What is the procedure for filling out waybills (sample, form)?”

If the seller highlights the cost of transportation in a separate agreement (additional agreement), then the paperwork can be completed in 3 options:

• waybill;
• waybill and transport bill of lading;
• consignment note and certificate of provision of transport services.

Invoice

If the cost of transporting the goods is already taken into account in its cost, then the seller draws up 1 invoice for the entire amount intended to be paid by the buyer. There is no need to issue a separate invoice for transportation services.

But if the cost of transport services is taken into account in a separate agreement (additional agreement), then in this case you need to generate 2 invoices:

• by goods sold;
• for transport services provided.

All invoices issued by the supplier must be noted in the sales ledger. Invoices for materials and services received by the seller (fuels and lubricants, accompanying services, loading and unloading services, etc.) are recorded in the purchase book.

Find out how to take VAT into account from the seller when receiving reimbursement of transportation costs from the buyer in ConsultantPlus. Get free demo access to K+ and go to the Ready Solution to find out all the details of this procedure.

For details of the calculation of VAT on transport services, see our article “What is the procedure for assessing VAT on transport services?”

Delivery is the responsibility of the supplier

According to the general rule governing the supply contract, the supplier is obliged to deliver the goods to the buyer.
This means that the obligation to deliver the goods lies with the supplier. Moreover, even if this is not directly stated in the contract. In such a situation, the supplier has the right to determine the terms of delivery and the type of transport by which it will be carried out independently. The supplier's obligation to deliver the goods to the buyer may be expressly provided for in the supply agreement. In this case, the parties may indicate the type of transport and other conditions for delivery of the goods. These clauses of the contract become mandatory for the supplier (Clause 1, Article 510 of the Civil Code of the Russian Federation).

The supplier fulfills the obligation to deliver the goods independently or engages a co-contractor for this. And here we need to take this into account. Cargo transportation by road (with a carrying capacity of over 3.5 tons), rail, air, sea and inland water transport is subject to licensing. You cannot carry out loading and unloading activities on railway, sea and inland water transport without a license. This is stated in Article 17 of the Federal Law of 08.08.2001 No. 128-FZ “On licensing of certain types of activities” (hereinafter referred to as Law No. 128-FZ). To obtain a license, an organization must have the necessary equipment, qualified personnel and meet other licensing requirements. Trade organizations, as a rule, do not have such licenses, so they do not have the right to deliver goods themselves.

Speaking about licensing of freight transportation, it is important to note this point. Article 17 of Law No. 128-FZ, which lists licensed types of activities, contains one exception to the general rule. Thus, a license is not required to transport goods by road for the organization’s own needs.

In this regard, the question arises: is the delivery of cargo under a supply agreement considered transportation for the supplier’s own needs? Law No. 128-FZ does not give a clear answer to this question, since it does not explain what should be understood by the definition of “for one’s own needs.” At the same time, law enforcement practice indicates that for the supplier, delivery of goods is a business activity along with the sale of goods [2] . Therefore, such transportation cannot be regarded as carried out for one’s own needs.

Consequently, the supplier can deliver the goods independently, if he has a license, or with the involvement of co-contractors. In the latter case, transportation contracts are concluded with specialized carrier organizations.

The taxation of such an operation as the delivery of goods largely depends on how the cost of delivery is determined in the contract. There are two options. The first option provides that the price of the goods in the contract is indicated taking into account its delivery to the buyer. According to the second option, the supplier increases the purchase price of previously purchased goods only by the amount of its trade margin, and charges the buyer a separate fee for delivery.

income tax

The supplier's income is the amount of revenue received from the buyer.
If the cost of delivery is included in the price of the goods, then the supplier under the supply agreement will receive proceeds from the sale of the goods. The price of the product and the cost of delivery can be specified separately in the contract. In this case, the supplier’s income under the supply agreement consists of two amounts: revenue from the sale of goods and revenue from the sale of transport services.

If the supplier uses the accrual method, then income in accordance with paragraph 3 of Article 271 of the Tax Code of the Russian Federation is taken into account at the time of sale of goods (work, services). Expenses using the accrual method are recognized in the reporting period to which they relate based on the terms of the transactions, regardless of the moment of payment of these expenses (clause 1 of Article 272 of the Tax Code of the Russian Federation). Under the cash method, income is recognized on the day payment for goods (work, services) is received. Expenses under the cash method are recognized as expenses after their actual payment (Article 273 of the Tax Code of the Russian Federation).

Let's say that the supplier, for profit tax purposes, determines income and expenses using the cash method. Then the advances received from the buyer are counted towards payment for the goods under the supply agreement. The supplier reflects them as part of revenue when forming the tax base for income tax. Please note: advances do not generate income only if the organization uses the accrual method. This is directly indicated in subparagraph 1 of paragraph 1 of Article 251 of the Tax Code of the Russian Federation.

The supplier's expenses under the supply agreement will consist of the purchase price of the goods sold, the costs of delivering them to the buyer and other costs. Moreover, the supplier’s expenses for delivering the goods to the buyer in accordance with Article 320 of the Tax Code of the Russian Federation are indirect for profit tax purposes. That is, they completely reduce the income from sales of the current month.

The supplier has the right to recognize costs only if they meet the requirements established by Article 252 of the Tax Code of the Russian Federation. Let us briefly recall the main criteria for recognizing expenses. For tax purposes, expenses are recognized as justified and documented expenses of the organization. Justified means economically justified costs of the organization, the assessment of which is expressed in monetary form. Expenses must be incurred to carry out activities aimed at generating income (clause 1 of Article 252 of the Tax Code of the Russian Federation). Aimed at generating income are expenses necessary to fulfill the contract. Such expenses may be provided for by law, the terms of the contract, or arise from the essence of the obligations.

Value added tax

When selling goods (work, services), the taxpayer, in accordance with paragraph 1 of Article 168 of the Tax Code of the Russian Federation, in addition to the price of the goods, presents the buyer with the amount of VAT for payment.
If delivery is included in the price of the goods, then for the purpose of calculating VAT, the supplier reflects the proceeds from the sale of goods taking into account the cost of transport services. Product price may not include shipping. Then the picture is different. The supplier's tax base will consist of revenue from the sale of goods under a supply contract and revenue from the provision of transport services, which he can provide personally or with the involvement of a transport organization by concluding a transportation contract with it.

When does the supplier have an obligation to charge VAT on the sale of goods and the provision of delivery services?

Let's consider the option in which the supplier determines the tax base “by shipment”. If, under a supply agreement, the transfer of ownership of the goods occurs upon shipment of the goods from the supplier’s warehouse and the delivery is carried out by the carrier, then the supplier must charge VAT on the sale of goods at the time of shipment (transfer) of the goods to the carrier [3]. If the supply agreement stipulates that the supplier carries out delivery independently, then the supplier will charge VAT on the sale of goods at the time of delivery of the goods to the buyer’s warehouse. This follows from subparagraph 1 of paragraph 1 of Article 167 of the Tax Code of the Russian Federation.

The supplier sells transport services at the time of their actual provision. Therefore, the supplier will charge VAT on transport services at the time of delivery of the goods to the buyer.

Thus, if the supplier delivers the goods using his own transport, then the moment of accrual of VAT on the sale of goods and the provision of transport services to the buyer will coincide. Therefore, it is enough for the supplier to issue the buyer one invoice indicating the cost of the goods and the cost of services for its delivery.

If the supplier engages a carrier to deliver the goods, then the moment of sale of the goods may not coincide with the moment of provision of transport services. Accordingly, the obligation to charge VAT on these transactions may arise at different times, possibly even in different tax periods. In this case, the supplier issues two invoices to the buyer - one for the goods, the other for transport services.

Now let’s consider the option in which the supplier, when selling goods, determines the tax base “on payment”. Then the obligation to charge VAT for payment arises from the supplier as money is received from the buyer for the goods sold, as well as for services for its delivery (subclause 2, clause 1, article 167 of the Tax Code of the Russian Federation).

When receiving advances for the upcoming delivery of goods, regardless of the chosen method for determining the tax base, the supplier is obliged to charge VAT on the amounts received. This is indicated by subparagraph 1 of paragraph 1 of Article 162 of the Tax Code of the Russian Federation.

The supplier has the right to reduce the amount of VAT calculated on the sale of goods and the provision of transport services by the amount of tax deductions in the manner prescribed by Article 172 of the Tax Code of the Russian Federation.

Reimbursement of expenses for transport services of third parties

When the buyer reimburses expenses for transport services that are provided not by the seller, but by a third party in the form of a carrier, in essence, transport services are rebilled to the buyer through the seller according to the following scheme:

We described in detail the seller’s procedure for this option of reimbursement of transportation costs, in particular about the execution of contracts, documents and accounting entries for them, in our article “The procedure for rebilling transportation costs to the buyer.”

Do I need to issue a waybill when picking up goods from the supplier’s warehouse? The answer to this question is in ConsultantPlus. If you do not have access to the K+ system, get a trial online access for free.

Features of taxation when paying for third parties

As part of a supply agreement, the parties often entrust each other with the fulfillment of certain obligations, including payment for the services of the carrier. And there is no violation of civil law. Paragraph 1 of Article 313 of the Civil Code of the Russian Federation directly provides for the possibility of fulfilling obligations for a third party.

Delivery for the supplier is paid by the buyer

During the execution of a supply contract, situations often arise when the delivery of goods is the responsibility of the supplier, but the buyer pays for it.
In this case, the obligation to deliver the goods is assigned to the supplier, and its cost is included in the price of the goods presented to the buyer. The supplier, turning to the buyer with a request to make payment to a third party, undertakes to offset this amount as partial fulfillment of the buyer’s obligations to pay for the purchased goods. Therefore, for the supplier, the amount paid by the buyer to the carrier is essentially an advance payment. In tax accounting under the cash method, the supplier includes the prepayment received in this way in income from the sale of goods, but under the accrual method it does not include it. This is stated in subparagraph 1 of paragraph 1 of Article 251 of the Tax Code of the Russian Federation.

For purposes of expense recognition, it is important to note the following. All expenses imposed on him by the terms of the supply agreement will be justified for the supplier. Moreover, it does not matter whether the supplier makes the payment himself or instructs the buyer to transfer the appropriate amount for him.

When calculating VAT regarding payments for transport services, it is important to pay attention to this point. As a general rule, the supplier is obliged to increase the tax base by the amount of advances received (subclause 1, clause 1, article 162 of the Tax Code of the Russian Federation). But when paying for transport services, money is not transferred from the buyer’s current account to the supplier. Consequently, for the supplier, payment on his behalf from the buyer’s current account to the carrier does not fall under the phrase “advances received.” At the same time, in practice, suppliers often charge and pay VAT on revenue received from such transactions. The VAT amounts paid to the budget will be offset against future obligations to pay this tax [5].

When mutual settlements are made between the supplier and the buyer under the supply agreement, the obligations of the parties will be repaid. After this, the supplier will be able to deduct the VAT paid to the carrier as part of transport services.

EXAMPLE 2

Under the terms of the contract, the supplier is obliged to deliver the goods to the buyer. Payment for the goods is made within 10 days from the moment they arrive at the buyer's warehouse. The cost of the goods is 2,360,000 rubles. (including VAT - 360,000 rubles).

To deliver the goods, the supplier engages a specialized transport organization, which only works with 100% prepayment for its services. The cost of carrier services is 236,000 rubles. (including VAT - 36,000 rubles).

The supplier does not have sufficient working capital. Therefore, he turns to the buyer with a request to pay for delivery by transferring money to the carrier’s account. The buyer made this payment on May 14, 2004. The transfer of goods to the carrier from the supplier's warehouse (shipment) took place on May 24, 2004.

Upon delivery of the goods on June 10, 2004, the buyer makes a final settlement with the supplier in the amount of RUB 2,124,000. (including VAT - 324,000 rubles).

The supplier determines the tax base for VAT “on payment”. For profit tax purposes, he calculates income and expenses on an accrual basis. Let's consider how these transactions are reflected in the supplier's tax and accounting records.

The supplier does not reflect the received prepayment (in the form of a payment to the carrier) in tax accounting. Income from the sale of goods in the amount of RUB 2,360,000. arises from the supplier at the time of sale (transfer) of goods to the buyer.

The supplier will charge VAT on the amount received from the sale of goods on June 10, 2004. That is, after the buyer pays for the goods.

In accounting, at the time the buyer pays for transport services on May 14, 2004, the supplier, based on the documents received, makes the following entry:

DEBIT 60 subaccount “Carrier” CREDIT 76 subaccount “Transport services”

— 236,000 rub. — the buyer paid for the carrier’s services.

After shipment of the goods on May 24, 2004, the supplier reflects its sales in accounting as follows:

DEBIT 62 CREDIT 90-1

— 2,360,000 rub. — the goods are sold to the buyer;

DEBIT 90-3 CREDIT 76 subaccount “Deferred VAT”

— 360,000 rub. — VAT is reflected on the amount received from the sale of goods.

After delivery of the goods to the buyer on June 10, 2004, the supplier, based on copies of invoices, reflects the receipt of transport services:

DEBIT 44 CREDIT 60 subaccount “Carrier”

— 200,000 rub. — the cost of the carrier’s services is reflected;

DEBIT 19 CREDIT 60 subaccount “Carrier”

— 36,000 rub. — VAT paid as part of transport services is taken into account.

After the final payment for the goods by the buyer on June 10, 2004, the following entries are reflected in the supplier’s accounting records:

DEBIT 76 subaccount “Transport services” CREDIT 62

— 236,000 rub. — payment to the carrier is offset against payment for the goods;

DEBIT 51 CREDIT 62

— 2,124,000 rub. — final payment has been made to the buyer;

DEBIT 76 subaccount “Deferred VAT” CREDIT 68 subaccount “VAT calculations”

— 360,000 rub. — VAT is charged for payment to the budget on the amount received from the sale of goods;

DEBIT 68 subaccount “VAT calculations” CREDIT 19

— 36,000 rub. — VAT paid to the carrier is accepted for deduction.

Postings reflecting reimbursement of transportation costs by the buyer

We have already written about the preparation of entries for reimbursement of transport services provided by specialized carriers in the article “The procedure for rebilling transport costs to the buyer.”

Therefore, now we will use a simple example to look at postings that reflect the procedure for reimbursement of only our own transport services.

Example

During August the following operations were performed:

1. Products sold:

• for method 1 - in the amount of 96,740 rubles. (including VAT 16,123.33 rubles), of which the cost of transporting goods including VAT is 19,965.60 rubles;
• for method 2 - in the amount of 76,774.40 rubles. (including VAT RUB 12,795.73).

1. The purchase price of goods sold was written off - RUB 56,420.
2. An invoice was issued for payment of transport services in the amount of RUB 19,965.60. (including VAT RUB 3,327.60). Note: This is the condition for method 2.
3. The cost of transporting the goods amounted to 17,740 rubles. (including VAT on loading work provided by a third party - 820 rubles).

The buyer instructs the supplier to arrange delivery

Under the terms of the supply agreement, the obligation to deliver the goods may be assigned to the buyer.
However, if the buyer is unable to independently deliver the goods, he can entrust the supplier with the organization of delivery. If the supplier organizes the delivery of goods in the interests of the buyer, then in relation to him the supplier will act as a forwarder. Relations between the parties in this part will be regulated by the provisions of Chapter 41 of the Civil Code of the Russian Federation “Transport Forwarding”, as well as the norms of the Federal Law of June 30, 2003 No. 87-FZ “On Transport and Forwarding Activities”. Transport and forwarding services are not licensed according to current legislation. Therefore, the supplier, organizing delivery as a freight forwarder, will not violate the norms of licensing legislation.

The supplier may enter into an agreement with the carrier for the provision of transport services both on its own behalf and on behalf of the buyer. In the second case, the supplier will need a power of attorney issued by the buyer.

Acting as a forwarder, the supplier acts in the interests of the buyer. For this, in accordance with paragraph 1 of Article 801 of the Civil Code of the Russian Federation, the buyer is obliged to pay the supplier a remuneration determined by the parties, as well as reimburse him for expenses incurred in connection with delivery.

Income tax

The supplier’s income from the provision of delivery services will be the amount of his remuneration provided for by the terms of the contract (agreement).
This income, like the proceeds from the sale of goods to the buyer, is sales income for the supplier. Other amounts received by the supplier to fulfill obligations to organize delivery, as well as to reimburse his costs, as a general rule are not recognized as income for profit tax purposes (subclause 9, clause 1, article 251 of the Tax Code of the Russian Federation).

When determining costs, the following must be taken into account. Clause 9 of Article 270 of the Tax Code of the Russian Federation establishes that the supplier’s costs for the delivery of goods are not taken into account for profit tax purposes. This is primarily the cost of paying for carrier services. As a rule, the buyer takes them into account. Therefore, the supplier, fulfilling its obligations to deliver goods as a forwarder, is obliged to provide the buyer with documents confirming transportation costs.

The Code contains one exception to the general rule of generating income and expenses when performing any intermediary operations, including freight forwarding ones. Amounts received by the freight forwarder in addition to his remuneration may be taken into account as income if this is expressly provided for by the terms of the contract for the provision of freight forwarding services (subclause 9, clause 1, article 251 of the Tax Code of the Russian Federation). In this case, the costs associated with organizing the delivery of goods, including the cost of carrier services, contrary to the general rule, the forwarder has the right to take into account when forming the tax base. This is stated in paragraph 9 of Article 270 of the Tax Code.

Value added tax

For the supplier, the tax base for VAT when organizing the delivery of goods in the interests of the buyer will be only the amount of remuneration received under the transport expedition agreement.
This is stated in paragraph 1 of Article 156 of the Tax Code of the Russian Federation. This is also indicated by the Russian Ministry of Finance in letter dated June 21, 2004 No. 03-03-11/103 “On taxation of forwarding services.” The letter also states that amounts received from the client (buyer) as advances are included by the forwarder (supplier) in the VAT tax base in proportion to the amounts of remuneration included in these advance payments. The supplier issues an invoice to the buyer for the amount of his remuneration, on the basis of which the buyer will deduct VAT on freight forwarding services paid to the supplier.

When organizing the delivery of goods, the supplier always acts in the interests of the buyer and at his expense. The purchaser (recipient) of the carrier's transport services is the buyer. Therefore, the amount of VAT presented by the carrier for payment in the price of transport services in accordance with Article 168 of the Tax Code of the Russian Federation is paid and deducted by the buyer of the goods. The carrier issues an invoice for transport services in his name. And the supplier’s role is reduced to receiving this invoice from the carrier and transferring it to the buyer.

Let's look at a specific example of the taxation of business transactions of a supplier related to delivery and the procedure for reflecting them in accounting.

EXAMPLE 1

On June 2, 2004, the parties entered into an agreement for the supply of equipment. According to the terms of the contract, the buyer must receive the equipment from the supplier's warehouse.

On June 18, 2004, the parties signed an additional agreement to the supply contract, according to which the supplier is obliged to provide the buyer with services for organizing the delivery of equipment to the buyer’s warehouse. Under this agreement, on June 22, 2004, in addition to the price of the goods, the buyer transferred 885,000 rubles to the supplier. (including VAT - 135,000 rubles). Part of this amount - 826,000 rubles, including VAT - 126,000 rubles, is intended to pay for the services of the carrier. The remaining part is 59,000 rubles. (including VAT - 9,000 rubles) is the supplier’s remuneration for organizing delivery.

For the delivery of equipment, the supplier entered into an agreement with the carrier on June 24, 2004. Payment for carrier services is provided in the form of 100% prepayment within 5 days after signing the transportation contract. The carrier delivered the equipment to the buyer on August 12, 2004.

The supplier's income will be the amount of 59,000 rubles, which is his remuneration. The rest of the funds received from the buyer (RUB 826,000) is not recognized as the supplier’s income.

If, for profit tax purposes, the supplier determines income and expenses using the cash method, then his income in the amount of 59,000 rubles. it will be reflected in tax accounting on June 22, 2004. If he uses the accrual method, then income in the form of advance payment of remuneration should be reflected in tax accounting on August 12, 2004, that is, upon the provision of forwarding services.

The supplier also charges VAT on forwarding services provided only on the amount of its remuneration. Moreover, regardless of the moment of determining the tax base (for shipment or for payment), the supplier must charge VAT on the remuneration received in advance at the time the money is received.

In accounting, on the day of receiving funds from the buyer for organizing the delivery of equipment (June 22, 2004), the supplier makes the following entries:

DEBIT 51 CREDIT 76 subaccount “Settlements with the buyer for delivery of goods”

— 826,000 rub. — funds were received from the buyer to organize the delivery of equipment;

DEBIT 51 CREDIT 62 subaccount “Advances received”

— 59,000 rub. — an advance was received from the buyer as compensation for organizing the delivery of equipment;

DEBIT 62 subaccount “Advances received” CREDIT 68 subaccount “VAT calculations”

— 9000 rub. — VAT payable on the advance received.

Until July 20, 2004, the supplier is obliged to pay VAT to the budget for June, taking into account the advance received from the buyer. If the supplier had no other operations related to the sale of goods (works, services), he makes the following entry:

DEBIT 68 “VAT calculations” CREDIT 51

— 9000 rub. — VAT is transferred to the budget from the advance received.

The day after concluding an agreement with the carrier, that is, June 25, 2004, the supplier pays for transport services in advance. This is reflected in accounting by the following entry:

DEBIT 76 subaccount “Settlements with the buyer for delivery of goods” CREDIT 51

— 826,000 rub. — advance payment is transferred to the carrier.

Upon receipt of invoices from the carrier on August 12, 2004, indicating the delivery of the equipment, the supplier makes the following entries:

DEBIT 62 CREDIT 90-1

— 59,000 rub. — remuneration was accrued for organizing the delivery of equipment;

DEBIT 90-3 CREDIT 68 subaccount “VAT calculations”

— 9000 rub. — VAT payable on the remuneration amount is charged;

DEBIT 68 subaccount “VAT calculations” CREDIT 19

— 9000 rub. — VAT paid to the budget on advance payment is accepted for deduction.

Results

Reimbursement of shipping costs by the buyer can be made in two ways. First: the buyer himself organizes and pays for the delivery of the purchased goods. Second: the buyer only pays for delivery, and the seller organizes it. In the first method, the seller does not record reimbursable costs at all. When using the second method, accounting for reimbursable transportation costs depends on how the seller transports the goods: himself or through a specialized carrier.

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