Safe share of VAT deductions: how to calculate and what to do if it is exceeded

The Tax Code of the Russian Federation allows VAT payers to use tax deductions later than in the quarter in which goods, works or services were accepted for accounting.

At the same time, all VAT payers must report to the inspectorate quarterly by submitting VAT tax returns for the corresponding tax period (quarter).

Therefore, an organization or individual entrepreneur, when declaring VAT for deduction, thinks about what part of VAT deductions should be shown in the current tax period, and what part should be transferred to the next quarter or quarters.

This question is due to the fact that if a company reflects a significant share of tax deductions in the VAT return, this may lead to the fact that the VAT return will declare tax to be refunded from the budget, or the VAT return will indicate a small amount of VAT due payment when the company's turnover is significant.

In such a situation, the close attention of tax authorities cannot be avoided.

View the safe percentage of VAT deductions for the 4th quarter of 2021. Check your region.

And in this case, the matter will not be limited to a standard desk audit, which usually takes place without the participation of the taxpayer.

Tax officials will send a request to the company to submit invoices and related documents.

At the same time, each invoice and related documents will be checked with special care.

In addition, these facts may become the basis for conducting an on-site tax audit.

That is why the question often arises of how to calculate the safe share of VAT deductions and how much such a share is.

We will tell you about the procedure for applying a tax deduction, how its share is calculated, and also how to calculate the safe share of deductions.

VAT for the average person

VAT is an indirect tax in favor of the state. Accrued on goods and services. Taking into account the number of transactions, it can be written off repeatedly. Besides Russia, value added tax exists in 130 countries. In countries where VAT is not charged, an analogue is used - sales tax. The differences are mostly only in the name.

Every citizen should know about VAT, since they have to pay it every day when buying goods and ordering services. An entrepreneur should understand when and for what taxes are charged in order to avoid problems with representatives of regulatory authorities.

How and when did VAT first appear?

Back in 1919, the German entrepreneur Wilhelm von Siemens, against the backdrop of his own losses, was thinking through a tax reform that would shift the payment of taxes to buyers. Due to his death, he did not have time to finalize his project. The idea was forgotten for a while until 1954, when the French financier Maurice Loret proposed a new taxation scheme to the authorities. To begin with, the government tested the scheme in its colony (Côte d'Ivoire), and in 1967 VAT was officially introduced in the country.

Reference. In Russia, VAT has existed since 1992. It was developed in 1991 by the government of V. Pavlov, and adopted by the government of E. Gaidar. Different product categories use different rates, ranging from 0 to 20%.

Who should pay for what?

As mentioned above, VAT is charged on the sale of goods and services to the final consumer. They call an indirect tax because it is actually paid not by those who transfer money to the budget, but by those who consume goods and services (the people).

To understand why consumers actually pay the tax, we need an example. The craftsman ordered boards from a supplier to make a chair. The material cost 240 rubles, of which 40 rubles. – VAT accrued by the supplier (20%). The master made a chair and sold it for 600 rubles, of which 100 rubles. – tax included in the price. The buyer purchased the furniture by paying the craftsman and the tax.

The master is obliged to transfer 60 rubles to the budget. (100–40). The state should receive 20% of the price of the chair. If the buyer purchased a chair for 600 rubles, then 100 of them are tax. But the master transferred only 60 rubles to the tax office, since 40 rubles. The supplier of the boards has already given it to the state.

VAT flow chain on the part of the master:

• 100 rub. receives from the buyer;
• 40 rub. gives it to the board supplier;
• 60 rub. transfers to the budget.

In total, the master will pay 100 rubles. VAT - that’s what the buyer paid him on top of the price. Therefore, the buyer becomes the real payer, and the sellers (master, supplier of raw materials) handle the transfer. Organizations take advantage of tax deductions, so they lose a little from taxation.

Reference. The introduction of VAT obliges every entrepreneur to replenish the country's budget. In most countries, tax is included in the price of goods and services.

Entrepreneurs transfer value added tax to the budget in the following cases:

• import of goods;
• sale of goods and services;
• transfer of goods for personal use;
• provision of construction and installation services for personal purposes.

The Tax Code (Chapter 21) regulates the calculation and payment of VAT. The document also contains tax-free activities:

• free transfer of assets of social and cultural significance;
• transfer of land managed by municipal institutions and government agencies;
• provision of services by local government bodies;
• sale of stamps, coins, medicines;
• advocacy, research, financial activities;
• diagnostics and repair of Russian equipment abroad.

Sales under a contract in foreign currency

The tax base for VAT under contracts in foreign currency is determined taking into account the specifics. They are due to the fact that the buyer can make payments both in foreign currency and in rubles.

If revenue is received in foreign currency , it must be converted into rubles at the official exchange rate of the Bank of Russia on the date the tax base is determined. In this case, the tax base for export is recalculated into rubles on the date of shipment (transfer) of goods (work, services). Such rules are provided for in paragraph 3 of Article 153 of the Tax Code of the Russian Federation.

There are cases when the price in the contract is indicated in foreign currency, and the buyer pays in rubles . There are two options.

First: goods (work, services) are paid for after they are shipped. Then the proceeds from sales must be converted into rubles at the Bank of Russia exchange rate on the date of shipment of goods (work, services). Such rules are established by paragraph 4 of Article 153 of the Tax Code of the Russian Federation.

Second: the buyer made payment in advance. In this case, the tax base must be determined twice: on the date of receipt of the prepayment and on the date of shipment of goods (work, services) (Clause 1, 14, Article 167 of the Tax Code of the Russian Federation). Moreover, if 100 percent prepayment is received, then there is no need to recalculate the tax base determined upon receipt of the advance at the Bank of Russia exchange rate on the date of shipment of goods (performance of work, provision of services). If partial prepayment is received, the tax base is determined as the sum of two quantities:

• the amount of the received advance payment;

• the cost of shipped goods (work, services) at the Bank of Russia exchange rate on the date of shipment minus the received prepayment.

Similar clarifications are contained in the letter of the Ministry of Finance of Russia dated January 17, 2012 No. 03-07-11/13.

Situation: how to calculate VAT on revenue if goods are sold in Russia and their value is expressed in foreign currency? They pay for the goods in foreign currency in two stages: partially in advance, partially after shipment.

Calculate VAT in rubles at the Bank of Russia exchange rate on the date of shipment of goods.

In accounting and tax accounting, revenue from sales under contracts denominated in foreign currency is defined as the sum of two quantities: the received advance and the receivables outstanding on the date of shipment. This is explained by the fact that advances received under contracts, the value of which is expressed in foreign currency, are not recalculated either on the reporting date, or on the date of shipment, or on the date of final settlements with the buyer (clauses 9, 10 PBU 3/2006, para. 3 Article 316 of the Tax Code of the Russian Federation).

However, for VAT purposes these rules do not apply. When making advance payments, the VAT tax base is determined twice:

• first, the seller charges VAT at the rate of the Bank of Russia on the date of receipt of the advance (according to the settlement rate);

• then the seller charges VAT on the cost of the shipped goods at the Bank of Russia exchange rate on the date of shipment (at a direct rate), and takes the amount of VAT accrued on the advance payment (at the rate in effect on the date of receipt of the advance payment) for deduction.

This procedure follows from the provisions of paragraph 3 of Article 153, paragraphs 1 and 14 of Article 167, paragraph 8 of Article 171 and paragraph 6 of Article 172 of the Tax Code of the Russian Federation and is confirmed by letters of the Ministry of Finance of Russia dated September 7, 2015 No. 03-07-11/51456, dated October 4, 2012 No. 03-07-15/130 and the Federal Tax Service of Russia dated September 24, 2012 No. ED-4-3/15921.

An example of reflection in accounting and taxation of proceeds from the sale of goods, the cost of which is expressed in foreign currency. The goods are sold to a representative office of a foreign organization located in Russia (payment for the goods is made in foreign currency). The contract provides for partial prepayment, final payment is made after shipment

Torgovaya LLC entered into an agreement for the supply of goods with a representative office of a foreign organization located in Russia for the amount of USD 11,800 (including VAT - USD 1,800). Cost of goods sold – 200,000 rubles.

On October 14, 2015, the representative office transferred an advance payment in the amount of $5,000 to Hermes. On October 26, 2015, Hermes shipped the entire consignment of goods to the buyer. The final payment is due on November 25, 2015. Title to the goods passes to the buyer on the date of shipment (26 October). Hermes applies a general taxation system and pays income tax quarterly.

The conventional US dollar exchange rate is:

• on October 14 – 29.40 rubles/USD;
• on October 26 – 29.70 rubles/USD;
• on November 25 – 30.00 RUB/USD.

In accounting, the Hermes accountant reflected the received advance and subsequent shipment of goods with the following entries.

October 14:

Debit 52 Credit 62 subaccount “Settlements on advances received” – 147,000 rubles. (5000 USD × 29.40 rubles/USD) – an advance was received to pay for goods;

Debit 76 subaccount “Calculations for VAT on advances received” Credit 68 subaccount “Calculations for VAT” - 22,424 rubles. (RUB 147,000 × 18/118) – VAT is charged on the advance received.

October 26:

Debit 62 subaccount “Settlements for shipped goods” Credit 90-1 – 348,960 rubles. (RUB 147,000 + USD 6,800 × RUB 29.70/USD) – revenue from the sale of goods is reflected;

Debit 62 subaccount “Settlements for advances received” Credit 62 subaccount “Settlements for shipped goods” - 147,000 rubles. – the received advance is counted towards payment;

Debit 90-3 Credit 68 subaccount “Calculations for VAT” – 53,460 rubles. ((10,000 USD × 29.70 rubles/USD) × 18%) – VAT is charged on proceeds from the sale of goods;

Debit 68 subaccount “Calculations for VAT” Credit 76 subaccount “Calculations for VAT from advances received” – 22,424 rubles. – accepted for deduction of VAT on advance payment;

Debit 90-2 Credit 41 – 200,000 rub. – the cost of goods sold is written off.

The same amount (200,000 rubles) is included in expenses that reduce the tax base for income tax.

Due to the fact that the contract provides for partial prepayment, and the final payment to the organization is made after shipment, an exchange rate difference arises in accounting. It appears only in relation to the subsequent (second) part of the payment - USD 6,800 (including VAT - USD 1,037). The advance payment is not recalculated.

The exchange rate difference is reflected in accounting on the date of receipt of final payment.

November 25:

Debit 52 Credit 62 subaccount “Settlements for shipped goods” – 204,000 rubles. (6800 USD × 30.00 rubles/USD) – final payment for the goods has been received;

Debit 62 subaccount “Settlements for shipped goods” Credit 91-1 – 2040 rubles. (6800 USD × (30.00 rub./USD – 29.70 rub./USD)) – reflects the positive exchange rate difference on the date of final settlement.

When calculating VAT, the resulting exchange rate difference is not taken into account.

In the VAT return for the fourth quarter of 2015, in line 010 (section 3), the Hermes accountant indicated (as part of the general indicators) revenue in the amount of 297,000 rubles. (10,000 USD × 29.70 rubles/USD) and the amount of VAT accrued in the amount of 53,460 rubles. (RUB 297,000 × 18%).

To calculate income tax, the accountant calculated the proceeds as follows: – regarding the advance: 5,000 USD × 29.40 rubles/USD = 147,000 rubles; – regarding subsequent payment: 6800 USD × 29.70 rubles/USD = 201,960 rubles.

The resulting revenue figure includes VAT. However, for the purposes of income tax, revenue is accepted without taking into account the taxes imposed (clause 1 of Article 248 of the Tax Code of the Russian Federation). The VAT charged upon shipment is considered to be presented. Therefore, when determining the amount of revenue for profit tax purposes, the accountant subtracted from the resulting indicator the amount of VAT, converted into rubles at the exchange rate on the date of shipment. Total revenue amounted to:

147,000 rub. + 201,960 rub. – 1800 USD × 29.70 rubles/USD = 295,500 rubles.

When determining the tax base for income tax, the accountant included:

• included in income from sales is revenue in the amount of RUB 295,500;
• non-operating income includes a positive exchange rate difference in the amount of 2040 rubles.

Thus, with the advance form of settlements for transactions denominated in foreign currency, the indicators of sales revenue (excluding VAT) in accounting and tax accounting are the same (295,500 rubles), but differ from the tax base for VAT (297,000 rubles) .

Situation: how to calculate VAT on the sale of goods (work, services) under an agreement concluded in foreign currency or conventional units linked to foreign currency? Settlements under the agreement are carried out in rubles.

Charge VAT depending on whether the terms of the contract provide for the transfer by the buyer (customer) of advance payment towards the upcoming delivery of goods (performance of work, provision of services).

If the transfer of prepayment is not provided for in the contract, calculate VAT in rubles at the foreign currency exchange rate (cu) in effect on the date of shipment of goods (performance of work, provision of services). In the future, when receiving payment from the buyer (customer), do not recalculate VAT. Exchange differences that arise upon receipt of payment should be included either in non-operating income (positive difference) or in non-operating expenses (negative difference) (clause 11 of article 250, subclause 5 of clause 1 of article 265 of the Tax Code of the Russian Federation). The same explanations are in letters of the Ministry of Finance of Russia dated December 23, 2015 No. 03-07-11/75467, dated January 17, 2012 No. 03-07-11/13.

According to the terms of the agreement, e. may represent the equivalent of foreign currency at the Bank of Russia exchange rate, adjusted by a certain percentage. In this case, when calculating the tax base, use only the official rate without any adjustments. Differences arising due to the adjustment percentage do not increase (decrease) the VAT tax base. They are taken into account only when taxing profits. Such clarifications are contained in the letter of the Ministry of Finance of Russia dated February 21, 2012 No. 03-07-11/51.

An example of calculating the tax base for VAT when selling goods under an agreement concluded in e. A conventional unit is the equivalent of a foreign currency adjusted by a certain percentage. Payment for goods is received in rubles

LLC "Torgovaya" entered into an agreement for the supply of goods, the cost of which is 11,800 USD. e. (including VAT – 1800 USD). According to the terms of the agreement 1 cu. e. equal to 1 US dollar at the Bank of Russia exchange rate, increased by 5 percent.

Hermes shipped the goods on July 1 and received payment for them on July 15 of the current year.

The dollar exchange rate established by the Bank of Russia is:

• on July 1 – 32 rubles/USD;
• as of July 15 – 32.5 rubles/USD.

The value of i.e., according to the terms of the contract, it is equal to:

• as of July 1 – 33.6 rubles. (32 RUB/USD × 1.05);
• as of July 15 – 34,125 rubles. (32.5 rubles/USD × 1.05).

The following entries were made in the accounting records of Hermes:

July 1:

Debit 62 Credit 90-1 – RUB 396,480. (11,800 cu × 33.6 rubles) – revenue from the sale of goods is reflected;

Debit 90-3 Credit 68 subaccount “Calculations for VAT” – 57,600 rubles. (10,000 cu × 18% × 32 rubles/USD) – VAT is charged on the amount of proceeds from the sale of goods.

July 15:

Debit 51 Credit 62 – 402,675 rub. (11,800 cu × 34,125 rubles) – payment received from the buyer;

Debit 62 Credit 91-1 – 6195 rub. (RUB 402,675 – RUB 396,480) – reflects the positive difference in settlements with the buyer.

On July 15, upon receipt of payment, Hermes does not recalculate the VAT tax base. The VAT return for the third quarter will reflect a base of 320,000 rubles.

If the terms of the contract provide for the transfer of an advance payment, the procedure for calculating VAT depends on its amount.

When you receive a 100% advance payment, calculate VAT based on the amount of the advance payment received in rubles. In this case, no recalculation of the tax base is required - neither at the contractual rate, nor at the rate of the Bank of Russia on the date of shipment. That is, on the date of receipt of the advance payment, the final tax base for VAT is formed. When shipping goods against the received advance payment, please indicate in the invoice:

• in column 5 - the cost of goods (excluding VAT) in rubles based on 100 percent prepayment (without recalculation at the Bank of Russia exchange rate on the day of shipment);

• in column 8 - the amount of VAT from the tax base reflected in column 5.

This is stated in the letter of the Federal Tax Service of Russia dated July 21, 2015 No. ED-4-3/12813.

If the agreement provides for partial payment, charge VAT in the following order. Upon receipt of payment, calculate VAT on the amount of the advance payment received in rubles. When shipping goods (performing work, providing services), determine the tax base using the formula:

The contractual exchange rate (cu) is not used when calculating VAT. There is no need to recalculate the amount of VAT accrued on the advance payment at the Bank of Russia exchange rate in effect on the date of shipment.

When calculating income tax, the differences that are formed when subsequent payments are received, include either in non-operating income (positive differences) or in non-operating expenses (negative differences) (clause 11, article 250, subclause 5, clause 1, art. 265 of the Tax Code of the Russian Federation).

This procedure for calculating VAT under contracts in foreign currency (cu) with settlements in rubles follows from the provisions of paragraph 4 of Article 153, paragraph 14 of Article 167 of the Tax Code of the Russian Federation and letters of the Ministry of Finance of Russia dated December 23, 2015 No. 03-07- 11/75467, dated January 17, 2012 No. 03-07-11/13.

On the date of shipment of goods (performance of work, provision of services), draw up an invoice. When filling out an invoice, take into account the specifics of the formation of the tax base. So, in column 5 of the invoice you need to indicate:

• the cost of goods (work, services) equal to the amount of the advance payment received in rubles on the date of receipt of the advance - if there was an advance payment of 100 percent;

• the cost of goods (work, services) equal to the amount of the advance in rubles on the date of receipt of the advance and the cost of the remaining part of the goods (work, services) in rubles at the exchange rate on the date of shipment of goods (performance of work, provision of services) - if there was a partial prepayment.

Similar clarifications are contained in the letter of the Ministry of Finance of Russia dated February 15, 2012 No. 03-07-11/46.

Indicators in columns 4, 7, 8 and 9 are formed based on the tax base indicated in column 5 and the tax rate provided for the sale of the relevant goods (works, services).

See Examples of reflection in accounting and taxation of sales of goods under a contract in foreign currency.

How does VAT work?

The object of taxation in the Russian Federation is the sale of goods, performance of work, and provision of services. In each case there are exceptions, which can be found in another article. Companies selling goods and services pay VAT even when transferring assets free of charge or performing work related to their own organization.

The first in terms of complexity of calculations is considered to be income tax, the second is VAT. If you understand the calculation mechanism, the process will be greatly simplified. The essence comes down to increasing the tax on any operation. The consumer pays the cost of the product or service including VAT. The seller serves only as an intermediary, transferring the tax from the buyer to the state.

Criterion “Share of VAT deductions” for conducting an on-site tax audit

When selecting organizations for an on-site tax audit, Federal Tax Service specialists evaluate their activities according to certain criteria.
For each criterion there is a threshold value.

If a company's score on this criterion goes beyond the threshold, then its chances of becoming a candidate for an on-site audit increase.

With regard to VAT, the main criterion for tax authorities is the share of VAT deductions in the calculated VAT amount for taxable items

The share of VAT deductions is a percentage characterizing the amount by which a company reduces the amount of tax payable.

In other words, the value of the share of VAT deductions shows what percentage of the accrued VAT the company claims for deduction.

It is this that the tax authorities will compare with the threshold indicator in order to draw a conclusion about the degree of tax risks of the company for VAT.
If the share of VAT deductions according to the taxpayer’s return is greater than the threshold value, then this immediately attracts the attention of tax inspectors.

Types of taxes and their purpose

Taxes are mandatory payments from individuals and legal entities to the state. Taxation serves to support the activities of government agencies. Firefighters, doctors, military personnel, scientists and teachers receive salaries from the budget. The latter is formed, among other things, from taxes. In addition to financing the labor sector of public sector employees, the state uses taxes on:

• organization of passenger transportation;
• construction of roads and bridges, significant infrastructure (factories, airports, theaters, hospitals, etc.);
• maintenance of the police, courts, army, educational institutions;
• financing the development of culture, science, education, medicine, and space;
• payment of benefits and pensions.

Taxes have been collected since ancient times. Back then this was done by tax collectors. Now the Federal Tax Service inspector only controls the payment of taxes, but does not collect them personally.

Reference. In addition to VAT, there are a number of taxes - transport, income, property and excise, as well as land and customs, fuel, etc.

The state obliges people to pay taxes on time and regularly. Evasion is equivalent to a crime.

The role of VAT in the economy

Before the advent of VAT, income tax was used. It is believed that the first one works better because:

• eliminates the problem of multiple taxation as goods move from the manufacturer to the final buyer;
• the obligation to pay tax is distributed among all participants in the chain, which reduces the risk of non-payment of VAT;
• export goods are “cleared” from national taxes;
• modern technologies (IT infrastructure) allow you to control the chain of payments from all counterparties;
• up to 40% of the budget is formed from regular revenues.

Sale of seized property

Situation: who must pay VAT when selling the organization’s seized property?

The answer to this question depends on who made the decision to sell the seized property.

Property can be seized either by court decision or by decision of other authorized bodies (for example, tax inspectorates or customs service). In this case, the property can be sold by bailiffs or specialized organizations authorized by the Federal Property Management Agency.

If property is seized by a court decision, then the duties of a tax agent are performed by organizations authorized to sell the said property. For example, the duty of a tax agent may be assigned to bailiffs (clause 2 of Article 12 of Law No. 118-FZ of July 21, 1997). They must withhold the amount of VAT from the proceeds from the sale of property and transfer it to the budget. This conclusion follows from the provisions of paragraph 4 of Article 161 of the Tax Code of the Russian Federation and is confirmed by paragraph 7 of the resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation dated May 30, 2014 No. 33.

If property is seized by decision of other authorized bodies, the provisions of paragraph 4 of Article 161 of the Tax Code of the Russian Federation do not apply. This rule regulates the procedure for taxation of transactions related to the sale of property seized only on the basis of court decisions. Therefore, if bailiffs (specialized organizations) sell property seized, for example, by decision of the tax inspectorate or customs, then VAT must be paid by the owner of the property (debtor in enforcement proceedings). Similar explanations are contained in letters of the Ministry of Finance of Russia dated June 18, 2009 No. 03-07-11/163, Federal Tax Service of Russia dated April 1, 2011 No. KE-4-3/5132 and in paragraph 7 of the resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation dated May 30, 2014 city ​​No. 33.

The obligation to pay VAT does not arise for either property owners or tax agents:

• if the seized property belonged to persons who are not recognized as VAT payers (for example, organizations or entrepreneurs applying special tax regimes) (letter of the Ministry of Finance of Russia dated November 1, 2012 No. 03-07-11/473);

• if the sale of seized property is exempt from taxation in accordance with Article 149 of the Tax Code of the Russian Federation. It is necessary to take into account that if the activity of selling property is subject to licensing (for example, the sale of medical goods by their manufacturers (subclause 1, clause 2, article 149 of the Tax Code of the Russian Federation)), then the tax agent is exempt from the obligation to pay VAT only if if the owner of this property has a license for the specified activity (clause 6 of Article 149 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated January 16, 2012 No. 03-07-07/01).

How is VAT calculated?

To understand the formulas, it is easier to consider the problem using an example. If you want to open a jacket store, you need to make or buy them. In the second option, you have to find a wholesale supplier. Having purchased goods for 100 thousand rubles (10 thousand rubles per 1 unit), the retail outlet pays the supplier 20% of the tax included in the price.

Proof of VAT paid - a receipt, invoice or invoice indicating the amount of tax. Next, when setting the price in a jacket store, VAT is deducted from the purchase price, then a new VAT of 20% is charged on the amount of costs (product cost, sales organization, etc.). This turns out to be the retail price of the jacket.

How to calculate VAT on sales with discounts

Discounts vary according to:

• at the time of provision:

discount on the date of sale of a product (service) – provided immediately at the time of sale of the product (service). For example, such discounts may be provided for a one-time purchase of a certain quantity of a product (service);

discount after the sale of a product (service) - provided for an already completed delivery if the buyer fulfills the conditions specified in the contract or the supplier’s pricing (tariff) policy. For example, such discounts may be provided when the buyer purchases a certain volume of goods (services) for early payment;

• form of provision:

discount in the form of a reduction in the cost of goods (services) already supplied or a reduction in the price of future supplies (so-called cash discounts);

discount in the form of a free supply of a certain amount of goods (services) (so-called product or bonus discounts).

What formulas are used when calculating VAT?

The formulas used to calculate taxes are not easy for the average person. Therefore, there are various calculators online that make the task easier. By filling out several fields, you can easily get the tax amount and the price without it. For those interested in calculation algorithms, the tips below will help.

VAT calculation

For ease of understanding, a certain amount is denoted by the letter A. To calculate the tax on this amount, the formula is used: A * 20 / 100. If we take the above example with jackets, then from the cost of the batch 100 thousand rubles. VAT accounts for 20 thousand rubles. This is how much the store pays to the jacket wholesaler. If you plan to buy clothes worth 100 thousand rubles, you will have to pay 120 thousand, since the supplier included VAT in the price, or buy fewer units of goods.

Calculation of the amount including VAT

Net amount – A, amount including VAT – An. The calculation formula is as follows: An = A + A * 20 / 100. If the amount is 100 thousand rubles, then together with VAT it will increase to 120 thousand rubles.

Net amount calculation

Amount including VAT – An. If we denote the tax by the letter B, we get the formula: A = An / (1+B) = An / (1+0.20) = An / 1.20. The store owner can calculate how much VAT is included in the price of the goods offered by the supplier. If we take the same 100 thousand rubles, then after calculations using the formula we get a net amount of 83,333 rubles.

How much should you pay into the budget?

After familiarizing yourself with the formulas, it remains to decide how much the clothing store will have to pay into the budget. Using the already familiar topic with jackets, you can deal with all the issues, and at the same time understand the concepts of “obligation” and credit in the topic of value added tax.

Having ordered jackets worth 120 thousand rubles from a supplier, 20 thousand of this amount is given as VAT to the one who supplied the clothes. The shipment of goods is documented - the jackets are sent to the store along with an invoice. The document clearly states the net cost of the batch (100 thousand rubles) and VAT (20 thousand rubles), the total cost of delivery is 120 thousand rubles.

Important! When making calculations, the store defers and remembers the VAT amount as a tax credit. This is the name of the amount that is deducted from tax liabilities when the reporting period arrives. The store will be able to reduce the amount of taxes paid to the budget exactly as much as it incurred expenses by paying the supplier’s VAT. In addition to the tax credit, the store also has a tax obligation to pay its VAT amount to the budget.

To formulate its price for goods, the store first subtracts the VAT paid to the supplier and receives the cost of goods - 100 thousand rubles. All expenses and the percentage of expected profit are added to this figure. For example, you can take the total cost of a batch of jackets of 200 thousand rubles. This is how much it is planned to receive from the sale of outerwear in the store to retail customers.

From 200 thousand rubles, VAT must be calculated, which must be paid to the budget. Using an online calculator or the formula given above, you can derive the amount of VAT (store tax liability) equal to 33 thousand rubles. Having in hand documents confirming the availability of a tax credit of 20 thousand rubles. (tax included in the supplier’s price), all that remains is to receive the difference (33 thousand - 20 thousand) and pay 13 thousand rubles to the state when all the jackets are sold. In total, the budget went to 13,000 from the store and the same amount from the supplier.

Example. Calculation of the safe amount of VAT deduction

Let’s assume that during the reporting period, a taxpayer from Moscow paid VAT in the amount of 100,000 rubles.
According to the company’s declaration, for the specified period the amount of calculated VAT, taking into account the restored amounts, is 1,500,000 rubles (section 3, line 118).

The tax deduction for the same period amounted to 1,400,000 rubles (section 3, line 190).

Substituting these figures into the above formula 1,400,000/1,500,000, we find that the share of VAT deductions in the amount of accrued tax in the period under review was 93.33%.

This is more than the threshold value of 88.08% for Moscow (as of August 1, 2019), which means that there is a possibility that the organization will be included in the on-site inspection plan.

What should be the amount of VAT in the considered example for Moscow, so as not to attract increased attention from tax authorities?

It can be calculated using the inverse formula:

VAT accrued * (100 - VAT safe) / 100 = = 1,500,000 * (100 - 88.52) / 100 = 172,200 rub.

Based on the criteria used by the Federal Tax Service, the company in our example needs to pay at least 172,200 rubles in VAT in order not to leave the “safe” zone.

Tax reporting

Having dealt with the calculations, it remains to understand the timing and procedure for paying obligations to the Federal Tax Service. According to the law, VAT is paid every quarter. The tax return is submitted by the 25th day of the month in the calendar following the reporting month. The quarterly schedule for repayment of obligations to the public service is as follows:

• until April 25;
• until July 25;
• until October 25;
• until January 25 of the year following the reporting year.

The VAT payer has the right to divide his quarterly payment into 3 parts and pay 1/3 of the amount monthly after the reporting quarter.

Example: for the third quarter of 2021 you need to pay 120 thousand rubles to the Federal Tax Service. By dividing the amount into 3 parts, you can pay 40 thousand rubles. in October, November, December. If you wish, you can change the schedule and amount of payments - deposit all the money in two tranches or pay the entire amount of taxes at once.

If the 25th day of the month is a day off, the tax payment is postponed to the next working day. If the reporting is sent by mail, then the date of filing the declaration is considered to be the one indicated on the post office stamp when sending the correspondence. This means that if for some reason a registered letter with a VAT report sent on time was delayed in transit and reached the Federal Tax Service after 25, this will not be a violation of the law, since the payer fulfilled its obligations on time. The proof is the stamp on the envelope.

Tax deductions

As mentioned above, a deduction is considered to be the amount of VAT that the supplier claims when selling goods. This amount is used by the store to reduce its tax liability. Not in every case, Federal Tax Service employees will accept and allow a tax deduction. 3 rules must be followed:

1. Goods purchased from a supplier by a store for the purpose of subsequent sale are subject to tax on the additional value (read the list of exceptions in another article).
2. The store can provide documents confirming that it has the right to a deduction, since it paid VAT accrued by the supplier for the goods. A correctly completed invoice and other accounting forms are accepted as a document.
3. The goods purchased by the store are accounted for.

If all 3 rules are met, then the store can count on approval of the deduction at the end of the tax period.

Invoice

The document has legal force if completed correctly. Contains the net cost of goods supplied to the store (excluding VAT) and the total amount payable (including value added tax). The invoice for the goods sold to the store is transferred from the supplier to the customer within 5 days. The latter is noted in the sales book and filed with the documents.

Important! If errors are made in the invoice, Federal Tax Service employees or inspection authorities can cancel the accrued deductions and charge VAT for payment. Therefore, the taxpayer needs to carefully check the invoice upon receipt.

Familiarity with the concept of VAT is useful for any person, even if he is not engaged in trade, services and is far from entrepreneurial activity. Specialists who fill out accounting documentation for a company and submit reports to the Federal Tax Service must be able to calculate taxes. If at first it is difficult to use formulas, an online VAT calculator can help. It will take a couple of seconds to get all the necessary amounts for reporting. All that remains is to carefully fill out all the fields and submit the papers to the tax service on time.

The tax base

When selling goods (works, services), the tax base for VAT is revenue. Determine the amount of revenue based on all the organization’s income related to payments for these goods (works, services) (clause 2 of Article 153 of the Tax Code of the Russian Federation). For more information about this, see How to calculate VAT on calculations related to payment for goods, works, and services sold.

In general, calculate revenue from the sale of goods (works and services) based on the prices established in the agreement with the buyer (customer). It is believed that these prices correspond to market prices (clauses 1 and 3 of Article 105.3 of the Tax Code of the Russian Federation). However, in some cases, tax inspectors can check whether the prices specified in the contract correspond to market prices. For more information, see How a tax audit of controlled transactions is carried out.

In some cases, the tax base for VAT is determined in a special manner (Article 154 of the Tax Code of the Russian Federation). This applies to the following situations:

• sales of goods (works, services) through commodity exchange (barter) transactions;

• sale of goods (works, services) free of charge;

• sale of property that was previously accounted for VAT;

• sales of agricultural products and processed products purchased from citizens;

• sales of cars previously purchased from citizens for resale;

• production of goods from customer-supplied raw materials;

• realization of property rights;

• implementation of intermediary services;

• sales of other goods (works, services) listed in Article 154 of the Tax Code of the Russian Federation.

An example of reflecting in accounting the accrual of VAT on the sale of goods (works, services)

In January of this year, Alpha LLC (seller) shipped Torgovaya LLC (buyer) a batch of finished products, subject to VAT at a rate of 18 percent. The cost of this batch, according to Alpha’s accounting and tax records, is 80,000 rubles.

The price of finished products (excluding VAT), according to the concluded agreement, is 100,000 rubles. This price corresponds to the market level.

Thus, the amount of VAT charged by the seller (“Alpha”) to the buyer (“Hermes”) is: RUB 100,000. × 18% = 18,000 rub.

The price of a batch of finished products, including VAT, is: 100,000 rubles. + 18,000 rub. = 118,000 rub.

Based on the results of this transaction, in the first quarter of this year, Alpha’s accountant must charge VAT in the amount of 18,000 rubles.

The seller did not receive any advances from the buyer for the upcoming delivery.

In the accounting of the seller (“Alpha”), the sale of finished products was reflected as follows:

Debit 62 Credit 90-1 – 118,000 rub. – revenue from the sale of a batch of finished products is reflected;

Debit 90-3 Credit 68 subaccount “VAT calculations” – 18,000 rubles. – VAT is charged on sales proceeds;

Debit 90-2 Credit 43 – 80,000 rub. – the cost of finished products sold is written off.

Situation: how to calculate VAT when selling a building along with a land plot. Is the cost of each object not highlighted in the contract?

Calculate VAT based on the book value of each object (building and plot) taking into account the correction factor.

In the situation under consideration, the procedure provided for in Article 158 of the Tax Code of the Russian Federation should be applied. That is, the VAT tax base must be determined separately for each type of property (land and building).

To do this, you need to calculate the cost of each object using the formula:

Calculate the correction factor as follows:

Since the sale of land plots is not subject to VAT, the tax must be charged only on the cost of the building.

Calculate VAT on the cost of the building using the formula:

The sale of the plot together with the building located on it will be issued with a consolidated invoice. In it, indicate the cost of each object separately. In this case, in the final line in column 9 “Cost of goods (work, services), property rights with tax - total,” indicate the total cost of the site with the building. Since the sale of a land plot is not subject to VAT, put dashes in columns 7 “Tax rate” and 8 “Tax amount” on the line where the cost of the land plot is indicated. Attach inventory acts to the consolidated invoice indicating the book value of each of the objects (clause 4 of article 158 of the Tax Code of the Russian Federation).

This is what the Russian Ministry of Finance recommends in letter dated March 27, 2012 No. 03-07-11/86.

Example: how to calculate VAT when selling a building along with land

Alpha LLC is selling the land plot along with the warehouse building located on it. The total selling price is RUB 160,000,000.

The book value of the land plot is 45,000,000 rubles, the warehouse building is 72,000,000 rubles.

To determine the tax base, the accountant calculated the correction factor:

160,000,000 rub.: (45,000,000 rub. + 72,000,000 rub.) = 1.36752137

The tax base for the warehouse building is equal to:

72,000,000 rub. × 1.36752137 = 98,461,538 rubles.

The accountant charged VAT on this amount at a rate of 18/118 percent.

RUB 98,461,539 × 18/118 = 15,019,557 rub.

The price of a land plot is:

45,000,000 rub. × 1.36752137 = 61,538,462 rubles.

Since the sale of land plots is not subject to VAT, the accountant did not charge tax on it.

In the consolidated invoice, the accountant reflected the cost of each item. At the same time, the accountant put dashes in columns 7 and 8 of the invoice for the land plot.

The accountant issued a consolidated invoice for the cost of the sold plot with the building located on it.