value added tax

Value Added Tax (VAT)- indirect tax, a form of withdrawal to the state budget of a part of the added value, which is created at all stages of the process of production of goods, works and services and is paid to the budget as it is sold.

Outwardly, VAT resembles a turnover tax: the seller adds it to the cost of goods, works or services sold. However, the buyer has the right to deduct from the amount due to the budget the amount of tax that he paid for these goods (works, services). Thus, this tax is indirect, and its burden ultimately falls not on traders, but on the final consumers of goods and services. This system of taxation is created in order to avoid paying tax on tax due to the fact that goods and services go a long way to the consumer; Under the VAT system, all goods and services carry only the tax that is levied on the final sale of the goods to the consumer. The interest rate may vary depending on the type of product. In payment documents, VAT is allocated as a separate line.

VAT was first introduced on April 10, 1954 in France. His invention belongs to the French economist Maurice Lauret (in 1954, director of the Directorate of Taxes, Duties and VAT of the Ministry of Economy, Finance and Industry of France). Currently, 137 countries levy VAT. Of the developed countries, VAT is absent in countries such as the United States, where it is replaced by a sales tax at a rate of 3% to 15%.

Russia

The tax period (Article 163 of the Tax Code of the Russian Federation) is established as a quarter.

Tax rates (Article 164 of the Tax Code of the Russian Federation)

1. The rate of 0% is applied, for example, when selling goods exported under the customs procedure for export.
2. The rate of 10% is applied, for example, when selling certain food products, goods for children, medical goods.
3. The rate of 18% is the main rate, applied in all other cases.

The procedure for calculating tax (Article 166 of the Tax Code of the Russian Federation)

When determining the tax base, the amount of tax is calculated as a percentage of the tax base corresponding to the tax rate, and in case of separate accounting - as the amount of tax received as a result of adding the amounts of taxes calculated separately as percentages of the corresponding tax bases corresponding to tax rates. The moment of determining the tax base (Article 167 of the Tax Code of the Russian Federation) is the earliest of the following dates:

1. day of shipment (transfer) of goods (works, services), property rights;
2. the day of payment, partial payment on account of the forthcoming deliveries of goods (performance of work, provision of services), transfer of property rights.
3. in the transfer of ownership for the purposes of this Chapter, shall be equated with its shipment.
4. When a taxpayer sells goods transferred by him for storage under a "warehousing agreement" with the issuance of a warehouse certificate, the moment of determining the tax base for these goods is determined as the day of realization of the warehouse certificate.
5. the date of assignment of the monetary claim or the day of termination of the corresponding obligation

The taxpayer has the right to reduce the total amount of tax by the established tax deductions (Article 171 of the Tax Code of the Russian Federation). The deductions are subject to tax amounts presented to the taxpayer when purchasing goods (works, services), as well as property rights in the territory of the Russian Federation or paid by the taxpayer when importing goods into the territory of the Russian Federation and other territories under its jurisdiction, in the customs procedures for release for domestic consumption , temporary importation and processing outside the customs territory or when importing goods transported across the border of the Russian Federation without customs clearance.

The procedure and terms for paying tax to the budget (Article 174 of the Tax Code of the Russian Federation)

The VAT tax period is set as a quarter. Payment of tax on transactions recognized as an object of taxation in the territory of the Russian Federation is made at the end of each tax period based on the actual sale (transfer) of goods (performance, including for own needs, work, provision, including for own needs, services) for the expired tax period in equal installments no later than the 20th day of each of the three months following the expired tax period. The form of the tax declaration for VAT was approved by order of the Ministry of Finance of the Russian Federation dated October 15, 2009 No. 104n.

Tax refund procedure (Article 176 of the Tax Code of the Russian Federation)

If at the end of the tax period the amount of tax deductions exceeds the total amount of tax calculated on transactions recognized as an object of taxation, the resulting difference is subject to compensation (offset, refund) to the taxpayer. After the taxpayer submits a tax return, the tax authority checks the validity of the amount of tax claimed for reimbursement when conducting a desk tax audit in order. Upon completion of the audit, within seven days, the tax authority is obliged to make a decision on the reimbursement of the relevant amounts, if during the in-house tax audit no violations of the legislation on taxes and fees were revealed.

In case of detection of violations of the legislation on taxes and fees in the course of a desk tax audit, authorized officials of the tax authorities must draw up a tax audit report. The act and other materials of a desk tax audit, during which violations of the legislation on taxes and fees were revealed, as well as objections submitted by the taxpayer (his representative), must be considered by the head (deputy head) of the tax authority that conducted the tax audit. Based on the results of consideration of the materials of a desk tax audit, the head (deputy head) of the tax authority makes a decision to hold the taxpayer liable for committing a tax offense or to refuse to hold the taxpayer liable. At the same time, this decision is made:

• a decision to fully refund the amount of tax claimed for reimbursement;
• a decision to refuse to fully refund the amount of tax claimed for reimbursement;
• a decision to partially refund the amount of tax claimed for reimbursement, and a decision to refuse to refund partially the amount of tax claimed for reimbursement.

If a taxpayer has a tax arrears, other federal taxes, debts on the relevant penalties and (or) fines payable or recoverable, the tax authority independently offsets the amount of tax to be reimbursed against the said arrears and debts on penalties and (or ) fines.

Latvia

The VAT law came into force in 1995; At the same time, the value added tax was abolished.

Israel

There are the following main acts of secondary EU law in this area:

• First Council Directive 67/227/EEC of 11 April 1967 on the harmonization of the legislation of the Member States with regard to turnover taxes (not in force). This act was adopted to replace the tiered cumulative system of indirect taxation in the EU Member States and to achieve a significant degree of simplification of tax calculations and the neutrality of the factor of indirect taxation in relation to competition in the EU. Moreover, the introduction of VAT, which replaces other turnover taxes, has become an obligation for member states.

• Second and Third Council Directive 68/227/EEC of 11 April 1967 and 69/463/EEC of 9 December 1969 "On the harmonization of the legislation of the Member States with regard to taxes on turnover - the introduction of value added tax in the Member States" ( It does not work). These acts provided a number of deferrals for the introduction of VAT in some Member States.

• Sixth Council Directive 77/388/EEC of 17 May 1977 "On the harmonization of the laws of the Member States with regard to value added taxes - a common system of value added tax: a uniform calculation base" (not in force). The provisions of this act reflect the basic principles of the functioning of the VAT system. This act had a huge number of changes and additions. It was a full-fledged tax act. Separately, it is necessary to note the harmonization of VAT rates in the member states.

• Eighth Council Directive 79/1072/EEC of December 6, 1979 "On the harmonization of the legislation of the Member States with regard to turnover taxes - Provisions for the reimbursement of value added tax to taxable persons not established in the country" (the provisions of this act allow the taxpayer of one state member to receive a VAT refund in another Member State). From 01.01.2009 the new Directive is in force.

• Thirteenth Council Directive 86/560/EEC of 17 November 1986 "On the harmonization of the legislation of the Member States with regard to turnover taxes - Provisions for the refund of value added tax to taxable persons not established in the Community" (this act allows the taxpayer of a third country to receive VAT refund in an EU Member State). From 01.01.2009 the new Directive is in force.

• Council Directive 2006/112/EC of 28 November 2006 on a common value added tax system can be considered a triumph of European tax integration. Effective from January 1, 2007, this act was adopted to replace the current integration legislation in the field of VAT regulation (in particular, the famous Sixth Directive) without making significant changes to it. The changes affected mainly the logical structure of the document. The act consists of 15 chapters, 414 articles and 14 annexes, it defines: subject and scope (chapter 1); territory of application (chapter 2), taxable persons (chapter 3), taxable transactions (chapter 4); place of taxable transactions (chapter 5), tax liability and collection of VAT (chapter 6), taxable amount (chapter 7), rates (chapter 8), exemptions/tax credits (chapter 9), deductions (chapter 10), obligations of taxable persons persons and certain categories of non-taxable persons (chapter 11), special taxation schemes (chapter 12), derogation provisions (chapter 13), other provisions (chapter 14), final provisions (chapter 15).

Table of tax rates

Russia

EU countries

The country	Bid		Abbreviation	Name
	Standard	Reduced
Austria	20 %	12% or 10%	USt.	Umsatzsteuer
Belgium	21 %	12% or 6%	btw TVA MWSt	Be lasting over de toegevoegde waarde Taxe sur la Valeur Ajoutee Mehrwertsteuer
Bulgaria	20 %	7 %	DDS = DDS	Dank Added Stoynost
Great Britain	20 %	5% or 0%	VAT	Value Added Tax
Hungary	27 %	5 %	ÁFA	altalanos forgalmi ado
Denmark	25 %		moms	Merværdiafgift
Germany	19 %	7 %	MwSt./USt.	Mehrwertsteuer/Umsatzsteuer
Greece	23 %	13% or 6.5% (For the islands of the Aegean basin, the tax is reduced by 30%: 13%, 6% and 3%)	ΦΠΑ	Φόρος Προστιθέμενης Αξίας
Ireland	21 %	13.5%, 4.8% or 0%	CBL VAT	Cain Bhreisluacha Value Added Tax
Spain	21 %	8% or 4%	IVA	Impuesto sobre el valor anadido
Italy	21 %	10%, 6%, or 4%	IVA	Imposta sul Valore Aggiunto
Cyprus	17 %	8% or 5%	ΦΠΑ	Φόρος Προστιθεμένης Αξίας
Latvia	21 %	10% since 2011 12%	PVC	Pievienotās vērtības nodoklis
Lithuania	21 %	9% or 5%	PVM	Pridėtinės vertės mokestis
Luxembourg	15 %	12%, 9%, 6%, or 3%	TVA	Taxe sur la Valeur Ajoutee
Malta	18 %	5 %	TVM	Taxxa tal-Valur Miżjud
Netherlands	19 %	6 %	btw	Be lasting over de toegevoegde waarde
Poland	23 %	8%, 5% or 0%	PTU/VAT	Podatek od towarow i usług
Portugal	23 %	13% or 6%	IVA	Imposto sobre o Valor Acrescentado
Romania	24 %	9% or 5%	TVA	Taxa pe valoarea adăugată
Slovakia	20 %	10 %	DPH	Dan z pridanej hodnoty
Slovenia	20 %	8,5 %	DDV	Davek na dodano vrednost
Finland	23 %	17% or 8%	ALV Moms	Arvonlisavero Mervardesskatt
France	19,6 %	7% or 5.5% or 2.1%	TVA	Taxe sur la Valeur Ajoutee
Sweden	25 %	12% or 6% or 0%	Moms	Mervardesskatt
Czech	20 %	14 %	DPH	Dan z přidane hodnoty
Estonia	20% (until July 1, 2009 - 18%),	9 %	km	käibemaks (literally "turnover tax")

Other countries

The country	Bid		Local name
	Standard	Reduced
Albania	20 %
Azerbaijan	18 %		ƏDV (Əlavə Dəyər Vergisi)
Australia	10 %	0 %	GST (Goods and Services Tax)
Argentina	21 %	10.5% or 0%
Belarus	20 %	10 %	MPE
Bosnia and Herzegovina	17 %		PDV
Venezuela	11 %	8 %	IVA (Impuesto al Valor Agregado)
Vietnam	10 %	5% or 0%	GTGT (Gia Tri Gia Tang)
Guyana	16 %	14 %
Georgia	18 %	0 %	დღგ (DHG)
Island	3 %	0 %	GST (Goods and Sales Tax)
Dominican Republic	6 %	12% or 0%
Iceland	24,5 %	14 %	VSK (Virðisaukaskattur)
	12,5 %	4%, 1% or 0%
Israel	16 %		Ma'am (מס ערך מוסף)
Kazakhstan	12 %		ҚҚС (қosylgan құn salygy)
Kyrgyzstan	12 %	0 %
Canada	from 5% to 13%	0 %	GST (Goods and Services Tax) / TPS (Taxe sur les produits et services)
PRC	17 %	2,3,4,6,13 %	增值税
Lebanon	10 %
Macedonia	18 %	5 %	DDV (Danok on Dodadena Vrednost)
Malaysia	5 %
Mexico	15 %	0 %	IVA (Impuesto al Valor Agregado)
Moldova	20 %	8% or 6% or 0%	TVA (Taxa pe Valoarea Adăugată)
New Zealand	15 %		GST (Goods and Services Tax)
Norway	25 %	14% or 8%	MVA (Merverdiavgift) (unofficial) moms)
Paraguay	10 %	5 %	IVA (Impuesto al Valor Agregado)
Peru	18 %		IGV (Impuesto General a las Ventas)
Salvador	13 %		IVA (Impuesto al Valor Agregado)
Serbia	18 %	8% or 0%	PDV (Porez na dodatu vrednost)
Singapore	5 %		GST (Goods and Services Tax)
Thailand	7 %
Trinidad and Tobago	15 %
Turkey	18 %	8% or 1%	KDV (Katma değer vergisi)
Uzbekistan	20 %	0 %	VAT (Value Added Tax)
Ukraine	20 %	0 %	MPE
Uruguay	23 %	14 %	IVA (Impuesto al Valor Agregado)
Philippines	12 %		RVAT (Reformed Value Added Tax) / karagdagang buwis
Croatia	22 %	0 %	PDV

Who is obliged to pay VAT? First of all, organizations and individual entrepreneurs are obliged to pay VAT on the general taxation system. VAT for organizations on the simplified tax system. Tax agents and VAT.

Organizations on OSNO

First of all, organizations and individual entrepreneurs are obliged to pay VAT on the general taxation system. Every quarter, such companies submit VAT returns, and since 2014 this has to be done electronically via the Internet. The Contour.Extern system helps to cope with this task. In Extern everything is simple - come in and start working. The external will check your report before sending it and point out format errors, if any. Even if you are not at the computer, the system will notify you about the status of the SMS report.

Organizations combining UTII and OSN

If a company combines UTII and the general taxation regime, the income that it receives from activities on the "imputed" basis is not subject to VAT. In order not to pay tax, it is necessary to keep separate VAT records for DOS and UTII, observing the following conditions:

• if for UTII activities an organization or individual entrepreneur buys goods (services) with VAT, then the amount of VAT must be taken into account in the cost of these goods (including fixed assets and intangible assets);
• if an organization or individual entrepreneur buys goods (services) with VAT for activities on the DOS, then the amount of VAT is deductible in accordance with the Tax Code of the Russian Federation.

But there are some costs at which it is impossible to separately account for VAT under UTII and VAT under DOS. Such costs include, for example, renting an office or paying utility bills. In this case, the amount of "input" VAT should be distributed in proportion to how these goods (services) are used in each of the activities.

Also, do not forget to submit a VAT return and pay tax every month no later than the 25th day of the month following the reporting quarter.

VAT for organizations on the simplified tax system

Entrepreneurs on the simplified tax system are exempt from paying a number of taxes: in particular, organizations do not pay income tax and VAT, and individual entrepreneurs do not pay personal income tax and property tax. But still, there are a number of exceptions in which LLCs and individual entrepreneurs on the simplified tax system are required to pay VAT:

• when importing goods into the territory of the Russian Federation;
• if the taxpayer issues an invoice in which VAT is indicated;
• when carrying out operations under a joint activity agreement, an agreement on trust management of property in Russia.

In these situations, it is necessary to pay VAT and submit a VAT return.

If the counterparty (supplier) on the DOS indicates VAT in the invoice, then the recipient of the goods on the simplified tax system can safely pay this invoice, since VAT in this case is the tax of the supplier. The buyer on the simplified tax system (regardless of the taxation option) is not required to pay tax and submit a VAT return. Goods purchased with VAT must be sold excluding VAT.

Organizations on the simplified tax system, UTII, patent, which issued a VAT invoice to the buyer

Organizations and entrepreneurs on the simplified tax system are not required to pay VAT, but sometimes they are faced with a request from the buyer to issue an invoice with VAT. It is not forbidden to do this, but then it will be necessary to pay this amount of VAT and file a declaration. This can only be done electronically.

Tax agents

VAT tax agents are required to pay value added tax to the budget and submit a declaration. Firms on special regimes can also perform the duties of a tax agent.

• purchased goods (services) from foreign companies that are not tax registered in the Russian Federation;
• sells under intermediary agreements goods (services) of foreign firms that are not registered in Russia;
• rents or buys state property;
• buys the property of a bankrupt, etc. (less common cases are described in).

Intermediaries are required to keep a register of invoices

Those agents and commission agents who apply special taxation regimes and sell goods (services) of a principal registered under DOS are required to keep a register of received and issued invoices. These logs must be submitted to the tax office in electronic form. Reporting in this way must be done no later than the 20th day of the month following the reporting quarter.

If a company works under intermediary agreements with a foreign company that is not registered in the Russian Federation, then it is obliged to send a register received and issued invoices together with the VAT declaration in electronic form.

To make sure that you have submitted all the reports and paid all the necessary taxes, use the Kontur.Extern online service to request an official tax reconciliation act, which will reflect all the information about your mutual settlements, submitted declarations and payments credited to the budget.

Today, every customer who purchases a product in a store encounters the abbreviation VAT - it is always indicated on the check. However, despite the popularity of this tax, not many buyers understand what VAT is and who pays it. If you look into the reference book, then the definition will be given there: “value added tax”, but this does not reveal the essence. Therefore, let's try to analyze this topic from A to Z.

So, we have given a definition of what VAT is. Who pays it? First of all, enterprises that sell goods more expensive than the cost of the product. In this case, the tax will be calculated from the difference between the cost of the goods sold and the price of its sale. In other words: sellers pay VAT out of their profits. This is so in theory.

A bit of history

The abbreviation VAT appeared in the 1920s. It was then that VAT appeared instead of sales tax. In accordance with the new law, sellers were exempted from paying multiple and similar taxes, but in Russia it began to operate in 1992.

Today, the rate is 18% on most types of manufactured goods, but there are product categories where VAT on goods is only 10%. This applies to medical and children's products, as well as parts of food. If the product is exported abroad, then it is not taxed.

What is VAT and who pays it?

Considering the above, we can draw the following conclusion. VAT on services and goods is paid by the manufacturer or the company that provides the services. But in reality, the tax falls on the shoulders of ordinary buyers. Of course, VAT is charged on the seller, and the buyer does not submit reports to the tax office, but in fact it is he who makes the payment. One can argue with this, because the seller legally pays the tax, but in fact you do it by buying products in stores.

VAT calculation procedure

When one company orders raw materials from another for the production of a product, the first company pays a certain amount of money. This amount is subject to tax.

Later, the question of what the cost of the manufactured goods will be is decided. This cost is determined by many factors. One of them is the cost of production without VAT. The amount of tax at this stage is also calculated, but it goes to the tax credit.

Then the final cost of the product is calculated, at which it will be available in stores to the buyer. At this stage, the final price of the goods will be formed: the cost of materials + potential profit from the sale + excise taxes, etc. As for the calculation of VAT, this tax also goes into the final cost. Manufacturers and sellers take it into account in the cost, but the buyer pays for it.

After the product has been sold and the company has received the money, the profit calculation begins, from which the 18% tax paid by the buyers is deducted. This is approximately how the conditional VAT formula looks like. The final amount of all taxes from the goods sold by the company is called the tax liability.

Calculation example

For a more detailed understanding of what VAT is and who pays it, let's look at a simple example.

Imagine that you decide to start selling winter shoes. The first stage is the search for a wholesale supplier. For example, you spent 100 thousand rubles on the purchase of goods, while buying 10 units of products. That is, one pair of shoes cost 10 thousand rubles. In this case, the price of the purchased goods from the supplier already includes an 18% tax. This tax was paid by the supplier and we when buying. This amount of 18%, which we overpaid for the tax, must be calculated as an input contribution in the future. When buying goods for resale, we need to prove that we have already paid VAT when buying in bulk. As evidence for the tax, you must present an invoice, waybill or check, which will indicate that VAT on goods has already been paid.

When forming the final price for sale in the store, we need to deduct the tax from the purchased products. From this price in the future and you need to calculate the tax. At the final stage, when the final price will be formed taking into account the potential profit, 18% of the tax must be added to the amount received, which will be charged to the buyer.

Formula

Let us denote the known amount by the letter K. We need to calculate the amount of VAT 18% from here. This means that our VAT formula will look like:

VAT = K*18/100

Provided that our spent amount of money is equal to 100 thousand rubles, VAT will be equal to 18,000 rubles (this is 18%).

To calculate the amount with VAT, it is necessary to add to this result the amount known to us - 100,000 rubles. This means that the amount including VAT will be 118,000 rubles.

Calculation of the amount without VAT

Now that we know the amount with tax (Kn), we can calculate K without it. To begin with, let's recall the formula for calculating the amount with VAT - from it you can get the formula for calculating the amount without VAT.

Kn \u003d K + M * K, where M \u003d 18/100

Another version of the formula is also possible: Kn \u003d K * (1 + M).

From this formula, it is easy to subtract the required value of K. The formula will look like:

K \u003d Kn / (1 + M) \u003d Kn / (1 + 0.18) \u003d Kn / 1.18

Now you know what VAT is and how to calculate it.

It is worth noting that working with formulas is very problematic, and to simplify the calculation, there are special calculators, including online ones. With their help, you can accurately calculate the tax by simply entering the initially known parameters. Here is an approximate procedure for calculating VAT.

Types of tax

There are 3 criteria according to which the procedure for calculating VAT is carried out:

1. Zero rate. The tax is not levied on the sale of space goods, as well as on the export of any goods, the transportation of oil and gas and the export of precious metals. There is a complete list of goods that fall under the zero VAT rate - they are described in Article 164 of the Tax Code of the Russian Federation.
2. Rate 10%. Applies to the sale of food products (vegetables, milk, meat, etc.). This also applies to children's products, medicines and scientific literature.
3. VAT 18%. This is the most common tax, which covers absolutely all goods that are not included in the first two categories.

Note that VAT is levied not only on the direct sale of goods, but also on the import of any product into the territory of the Russian Federation. Works related to the construction of buildings, for which a building contract is not concluded, are also subject to this tax.

Processes that are not subject to this tax

VAT on services is not always the case. For example, when providing work to state enterprises, which will be carried out within the limits of their duties, tax is not levied. Also, it is not charged for investments, when providing funds to companies of a non-profit basis and when buying and developing state-owned enterprises.

calculation

There are two options according to which VAT can be calculated:

1. Subtraction. The entire amount of proceeds is taxed, and the tax paid at the time of purchase of raw materials is deducted from the amount received.
2. Addition. When the amount of tax is the sum of the value added of each type of product sold.

Most often, the first method of calculating VAT is used because of its simplicity. The fact is that it is rather difficult to keep separate records for each type of product sold, although sometimes only this method is appropriate for some companies due to their specific work.

Reporting

So, we have already figured out what VAT is and who pays it. Now you can talk about what kind of reporting you need to provide to the tax.

Reporting must be provided every quarter, and it is filled in a special form. At the same time, the reporting deadlines are strict - until the 25th day of the next month. In case of delays, the company may face fines.

You can also send reports by mail. But at the same time, it must be borne in mind that in this case, the reporting date will be the number that is on the stamp in the registered letter.

For example, if you sent a registered letter on the 20th, and it arrived at the tax office on the 28th, then there will be no penalty in this case, because the 20th number will appear in the stamp.

tax deductions

Tax deductions - this is the amount of payments that was presented for payment by the supplier and on which the amount of tax has already been accrued. Here, too, there are rules that enterprises must follow. The amount of VAT can be accepted for deduction only if three conditions are met:

1. Products that were purchased for sale were already subject to VAT.
2. The received raw materials or products have passed accounting.
3. The enterprise has all the primary documentation, and the invoice is drawn up in accordance with all the rules.

If these conditions are met by the company, then after the tax period the company can deduct the amount of VAT, but only if the products were already subject to VAT.

What is an invoice?

This document contains information about the price of the goods without VAT and the total cost including VAT. This document must be provided by the supplier, and it must be filed with a special accounting journal and noted in the sales book.

The main difficulty in maintaining an invoice lies in the fact that the obligation to issue it rests to a greater extent on the counterparty with whom the taxpayer cooperates. And if he fills in something incorrectly, then the inspector, during the check, can cancel the deductions and additionally charge VAT. Therefore, a counterparty's mistake can result in additional expenses for the taxpayer. So, you need to require accurate filling of documents from the supplier.

Conclusion

So, the main conclusions to be drawn from this article:

1. The buyer pays VAT in practice, although in theory it is assumed that it is on the shoulders of the seller.
2. It is quite difficult to calculate VAT without specialized tools. Therefore, ideally, you should use calculators for the correct calculation of tax and maintain a VAT base. But the principle of calculation must be understood.
3. Some services do not charge VAT. Also, no tax is levied on the export of goods.
4. Depending on the product sold, the amount of tax may be different. For example, when selling medicines and food products, VAT is only 10%.
5. Submission of reports is the most important stage of cooperation with the tax inspectorate. The return must be submitted by the 25th of the month. Otherwise, fines cannot be avoided. When sending a letter by mail, you do not have to worry that the letter will arrive at the tax office after the 25th, because in this case, the time of sending on the stamp of a registered letter is taken into account.
6. When cooperating with a counterparty who will supply you with products, require him to fill out the invoice in a timely and correct manner. If mistakes are made, the tax inspector has the right to charge additional VAT.
7. All purchased raw materials for subsequent sale must be “driven” through accounting and invoices must be drawn up correctly. This way you can get a tax deduction.

Now we more or less understand where this tax comes from, how it is compiled, and in general, who should pay VAT. Of course, everything is described here rather superficially and primitively, and the topic of value added tax itself is more extensive and complex, and it is almost impossible to present all the nuances now.

Today, each of us, making any transaction or purchase, is faced with the abbreviation "VAT". But, despite such popularity of these letters, few people understand and wonder what they mean and where they come from. Looking into the directory, the interested person will see that VAT is a value added tax. From these words, a simple man in the street will not understand much. Therefore, today we will analyze this topic step by step.

First of all VAT is subject to all businesses with additional market value. Simply put, businesses that sell a product or service at a higher price than the cost of the product. In this case, the tax is calculated from the difference between the cost of goods and the subsequent sale price, that is, revenue.

History of appearance

For the first time, this abbreviation appeared back in the 20s, then VAT replaced the sales tax, in which payment was made from all proceeds. The changes were supposed to free production from the same type, multiple payments and begin to take into account not revenue, but potential profit. But the tax began to operate in our country only in 1992.

Currently VAT rate in Russia equals 18% for most of the manufactured products. But there are certain categories of goods for which VAT is 10%. These goods include medical preparations, a certain part of food and children's products. Products exported abroad are not taxed.

Who pays

From the foregoing, one could conclude that the tax falls on the shoulders of producers and nothing more. However, in the end the VAT is paid by the ordinary buyer. Of course, the company submits a declaration to the tax office, but in the end, the buyer pays the tax.

Below we consider a visual example of building a VAT chain:

• When one enterprise orders from another the raw materials necessary for the production of products, it pays the supplier the amount on which the tax is imposed.
• Subsequently, the question of the future value of the manufactured goods begins to be resolved. It consists of such factors as the cost of the product, that is, the amount spent on the purchase of materials for its manufacture, excluding VAT, is calculated. The amount of tax is also calculated at this stage, but already goes to the tax credit.
• Next, there is the stage of formation of the final cost of the product, at which buyers will purchase it at points of sale. From what the final cost of the product will be formed: cost, share of profit from the subsequent sale, calculation, etc. Well, where is there without VAT, it is also added to the final price, but the buyer already pays it.
• When the company has sold goods for a certain amount and received proceeds, the calculation of its size begins, minus those 18% tax paid by the buyer. The final amount is marked as a tax liability.

For more information on value added tax, see the following video tutorial:

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Calculation example

For a better understanding of what VAT is, let's analyze next example.

We decided to start selling jackets at a retail outlet. At the first stage, we will need to find a supplier who will supply us with these jackets in bulk.

Let's assume that purchased goods in the amount of 100,000 rubles on the basis that one unit of goods costs 10,000 rubles, that is, we purchased 10 jackets from a supplier at 10,000 rubles each. In this case, the cost of the purchased goods will already include a tax of 18% (it was paid by the supplier), and we will also pay for the purchase. We will calculate the amount overpaid for VAT as an input contribution or deduction.

By purchasing for resale materials, we will need to prove that they were already paid for with VAT included in the amount. As evidence for the tax, we must have it on hand, or where it says about the tax paid.

Before set the final price, at which we will sell the goods, the first thing to do is to deduct the value-added tax from the purchased products. From the amount received, the tax will be calculated in the future.

Calculation formulas

For example, we denote a known amount - K. It is necessary to calculate the amount of VAT 18%. The formula will look like this:

VAT = K*18/100

Example! Let's take the amount of 100,000 rubles.

VAT will be:

VAT = 100000*18/100 = 18,000

Calculation of the amount with VAT

For example, we know the amount K. We need to calculate Kn - the amount with VAT.

The formula will look like this:

Kn \u003d K + K * 18/100

Kn = K*(1+18/100)=K*1.18

We take the tighter amount of 100,000 rubles and calculate the amount with VAT:

Kn \u003d 100 00 * 1.18 \u003d 118

Formula for calculating the amount without VAT

So, we know the amount with VAT - Kn. It is necessary to calculate K - without VAT. To begin with, we recall the formula by which the amount with VAT was calculated and from it we obtain the formula for calculating the amount without tax.

Let's denote M=18/100, we get:

Kn \u003d K * (1 + M)

Hence:

K \u003d Kn / (1 + M) \u003d Kn / (1 + 0.18) \u003d Kn / 1.18

Of course, working with formulas is quite problematic. To simplify all calculations, there are online VAT calculators with which you can accurately and quickly obtain the necessary figures.

The rules for calculating this tax are set out in this video:

Types of this tax

In accordance with tax legislation, VAT is calculated according to three criteria:

• Zero rate. The tax is not levied on the export of goods, the sale of space goods, the transportation of gas and oil, the export of precious metals, etc. A complete list of goods eligible for VAT at 0% can be found in article 164 of the Tax Code of the Russian Federation.
• Rate 10% It is used in the sale of a number of food products (milk, vegetables, meat, etc.). Children's goods (clothing, cribs, strollers, etc.). Also, 10% VAT is applied in the sale of medicines, periodicals, scientific and educational literature.
• VAT 18% the most common tax, which is levied on all goods and services that do not qualify for the first two rates (0% and 10%).

Which transactions are subject to VAT?

1. Import of any products to the Russian Federation.
2. All works related to the construction of buildings, where a building contract is not concluded.
3. Transfer of services and products for own use (in the territory of the Russian Federation), the costs of which are not taken into account when calculating VAT.

Processes not subject to this tax

1. The provision of work by public authorities within the limits of the duties assigned to them.
2. Purchase and further privatization of municipal and state enterprises.
3. Various kinds of investments.
4. Sale of land.
5. Giving money to organizations with a non-profit basis.

Methods of accrual

At present, VAT can be calculated two options:

1. Subtraction. When the entire amount of revenue is taxed, and the amount of VAT that was paid at the time of the purchase of materials is already deducted from the amount received.
2. Addition. When the tax is charged at the approved rate from the entire taxable base, which consists of value added for each type of product sold.

The first method of calculating VAT is used more often, due to the fact that it is quite difficult to keep separate records for each type of product.

Reporting

So, what is VAT and who pays for it? Now let's talk about how reporting should be submitted to the tax office.

Reporting provided each quarter, filled in a special form. The deadlines for submitting documents are quite strict - until the 25th day of the next month.

If there are delays, then penalties may be imposed on the company. When sending by mail, you need to take into account that the date of submission of the reporting will be the number on the stamp in the registered letter.

For example, you came to the post office on the 19th and sent a registered letter, but it only arrived at the tax office on the 28th. In this case, there will be no fines, since the 19th was put on the letter when sent.

tax deductions

tax deductions is the amount of tax payments presented for payment by the supplier and by which the total amount of tax planned for payment to the budget has been reduced.

It also has its own rules that enterprises follow. They can deduct the amount of VAT, unless three conditions are met:

1. Products purchased for subsequent sale are subject to VAT.
2. The company has all the necessary primary documents and issued an invoice according to the rules.
3. The received products have passed the accounting.

If these three conditions have been met, then at the end of the tax period, the company can deduct the entire amount of payments (of course, if all transactions were subject to VAT).

Invoice

This is the document that contains all the necessary information about the value of the goods excluding VAT and the total amount including tax. The supplier must provide the invoice to the buyer when the goods are shipped, and later 5 days later.

The main difficulty in preparing an invoice is that this document is drawn up not by the taxpayer himself, but by the counterparty with whom the cooperation takes place. If something is filled in incorrectly, then during the check, the inspector can cancel all deductions and charge additional VAT. Therefore, the counterparty must be required to accurately fill out the documents.

So, now we understand what VAT is, where it comes from, who pays it, and how it is calculated. Of course, this topic is rather complicated, and it is impossible to state all the nuances and rules in one article. But with the main task, namely, what is VAT, we figured it out.

See the video for more details on VAT refunds.
Part 1:

Do you have any difficulties in determining the amount of VAT that is payable to the budget? Then it is worth studying the calculation procedure and the applied formulas in 2020.

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We describe the main features of the calculation and give several examples for clarity. VAT is the most difficult to calculate and pay tax.

But if you do not delve into the nuances, then at first it seems that it is not burdensome for entrepreneurs, because this is an indirect tax. And indirect taxes are passed on to final consumers.

General aspects

Anyone can look at the check that is issued in stores not only for the amount of purchases, but also for VAT.
What difficulties arise in the administration of VAT? To find out, consider the features of such a payment.

Definitions

VAT stands for Value Added Tax. The main differences of such a tax from the rest are determined by several factors.

VAT was introduced in 1992. The emergence of added value is carried out at any stage of the manufacture of goods and is taxed when it is sold.

With the help of such a tax, the state can withdraw part of the value added at a fixed rate.

Payment of VAT is made exclusively in rubles. If another currency is used, then it is necessary to recalculate in rubles at the current exchange rate.

The actual sale of products is an earlier date (the day when the goods are shipped or the day when they are paid for).

Payers of such tax can be:

• companies;
• persons who transported goods across the border, and therefore are recognized as payers.

Companies and individual entrepreneurs that work on special regimes - for, or purchased, as well as any participant in the Skolkovo project, do not have to pay VAT.

Exemption from paying tax is received by payers that have fulfilled the conditions - if they have from sales for the last quarter, which is not more than 2 million rubles.

Companies that sell excisable goods do not have such a right.

What is the payment for

Object of taxation:

The goods and services specified in will not be taxed. This applies to socially significant goods and services of this type:

• sale of certain types of medical goods and services;
• provision of services for;
• sale of items that have a religious purpose;
• Passenger Transportation;
• provision of educational services, etc.

VAT is not paid when providing:

• banking services;
• services of the insurer;
• lawyer services;
• services in the sphere of the securities market.

The VAT tax rate is 0, 10 and 18%. There are also settlement rates - 10/110, 18/118. Such indicators are used if a transaction is carried out, reflected in - if they receive an advance payment for a product, work or service.

All features of the application of rates are described in Art. 164 NK. The 0% rate is set for:

• export operations;
• pipeline transport of oil and gas;
• transmission of electricity;
• transportation by railway transport or by planes, ships.

The 10% rate is set on:

• a number of food products;
• goods for children;
• medications and other medical devices that are not vital;
• breeding stock.

All other goods and services are subject to VAT at the rate of 18%. The tax base is set as the cost of the goods sold, works, taking into account for excisable products ().

The procedure for calculating VAT payable to the budget

Novice accountants do not quite understand how to correctly calculate VAT. But difficulties can be avoided if you know which formulas to use.

First you need to determine which rate applies in your case. To do this, you should look into the Tax Code. Then the tax base is calculated.

The calculation date is chosen as follows:

• the day the product is shipped;
• the day the company received the advance payment;
• the day payment for the goods is received.

Formula applied

If over the past three months certain types of construction and installation work have been performed for their own needs, the sale of goods has been adjusted, or there has been a sale of companies (property complexes), then VAT from these operations is included in the total VAT figure that is accrued.

Video: we count VAT on our fingers

If VAT was restored, which was previously deductible, then they add to the amount of tax that is accrued and the indicator of restored VAT.

Value added tax, which is deductible, is the amount of the full tax payment that was previously paid by the enterprise when a certain product was purchased.

Use the form to determine the amount of VAT for the tax period to be deducted.

Usually, the accountant does not carry out such calculations. The only exception is if it is necessary to control incoming funds. The list that is transferred along with the goods usually reflects the amount of tax deductible.

Since there are 4 tax periods in a year, the deduction shares are calculated based on the declaration of each quarter.

Calculation examples

Example 1

Here is an example of calculating VAT with an advance payable to the budget. The company was given an advance payment by the customer against the upcoming work, which is taxed at a rate of 18 percent.

The prepayment amount is 236 thousand rubles including VAT. Since the rate is 18%, the estimated rate of 18/118 should be used when calculating VAT on the prepayment amount.

The calculations will be like this:

Example 2

The entrepreneur was paid an advance payment for the forthcoming delivery of goods, which is taxed at a rate of 10 percent. The amount of the advance payment is 110,000, including VAT.

Let's substitute the data in the formula for determining the input tax, using the estimated rate of 10/110: