Pilot project on VAT in a year

The law does not bypass the value added tax.

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It turns out that even those firms that submit a zero declaration must draw it up in the same way.

If the organization submits the VAT return on the usual hard copy, the Tax Inspectorate may impose a fine of 200 rubles.

All businesses should be aware of this. From the current year, reporting to the tax office is transmitted only with the help of electronic document management.

VAT changes from October 1, 2019:

Representatives of the Government have repeatedly suggested raising the VAT rate. This is due to the fact that this tax brings a large share of revenues to the federal budget.

After all, such a payment is transferred not only by organizations operating in the domestic market of the Russian Federation, but also by enterprises importing goods.

In connection with the sanctions that many countries have adopted against Russia, analysts predict a drop in imported products, and, accordingly, VAT revenues from enterprises working with imports will also decrease.

However, modern realities show that organizations operating in the domestic market of the Russian Federation will primarily suffer from the increase in VAT.

Therefore, active talks about raising the value added tax rate are still just talks.

This causes relief for large, medium and small enterprises that are obliged to accrue and pay this payment to the budget.

Let us consider in detail what has been happening with VAT since 01/01/2014. What articles have been affected by the innovation.

Clarification of the content of Art. 148

The sale of services, products or works is subject to VAT if it is produced in the territory of the Russian Federation. Since October 01, amendments have been made.

From now on, the place of sale of goods, services or works is specified: the data specified in the constituent documents during the state registration of the enterprise are taken.

The changes made concern the branches and representative offices of the organization. If it is noted in the constituent documentation that the branch of the enterprise is located abroad, then the sale of works (goods, services) at this representative office is not subject to VAT.

This rule is adopted so that organizations can avoid double taxation by carrying out sales outside of Russia.

Changes under paragraph 16 of Art. 167

Changes in deductions (Art. 170 and Art. 172)

Amendments were made to the "Procedure for changing tax deductions" and the "Procedure for allocating tax amounts for the production and sale of goods, works, services."

These changes affected those cases when settlements between the buyer and the seller are carried out on a partial or full prepayment.

Consider an example. The seller company received an advance payment from the buyer for the products. The organization shipped the goods, but its value was less than the amount of the prepayment received.

In such a situation, the buyer is obliged to recover VAT in the amount indicated in the invoice. It turns out that the amount of the recovery is equal to the amount of the tax indicated by the selling company.

Innovations also include those cases where the contract between the parties states that the prepayment includes payments for the performance of individual stages of the provision of services or the performance of work, as well as individual batches of products.

In such cases, the value added tax is refunded in the amount that falls on the part of the prepayment.

According to the current legislation, the seller organization must calculate and transfer VAT on the date of receipt of the advance payment from the buyer.

However, now she has the right to accept the amount of VAT, which is calculated from the prepayment, for deduction after the provision of services, performance of work or shipment of goods. This rule is noted in paragraph 1 of Art. 172 of the Tax Code of the Russian Federation.

New edition

Prior to the adoption of Federal Law No. 238-FZ of July 21, 2014, all taxpayers who make various business transactions were required to issue invoices.

Video: accountant LIVE. Changes in VAT from October 1, 2019 (238-FZ)

According to the innovation in the legislation, from now on, taxpayers have the right not to draw up an invoice for those counterparties (buyers of services, works, goods) that are not VAT payers or are exempt from value added tax.

Important note. The seller has the right not to draw up an invoice only if there is a mutual agreement in writing between him and the buyer.

If there is no agreement, then the parties must act in accordance with the previously established procedure.

Clarification under Art. 174

So, from the beginning of the next year, taxpayers who were required to keep a register of received and issued invoices may not do this.

However, this change does not affect everyone. For example, this does not include intermediaries, even those who are not VAT payers. Such a group would have to keep a journal.

Consequences of change:

For a long time, organizations will have questions related to innovations that appeared due to the adoption of Federal Law No. 238-FZ of July 21, 2014

The government tried to take into account all the nuances and weaknesses of the previous legislation.

With the entry into force of innovations, it has become easier to conduct commercial activities, both for sellers and for buyers.

pros

Among the advantages of the adopted changes, it is worth noting:

• simplification of document flow;
• decrease in the number of indicators in (there is no need to mark the price without VAT);
• determination of the date of sale of real estate;
• reducing the formation of inconsistencies in financial transactions;
• exclusion of double taxation. This innovation will have a favorable effect on enterprises that open or have representative offices or branches abroad;
• partial abolition of logging on the movement of invoices.

The advantages of the adopted changes are quite tangible for organizations operating both in the domestic market of Russia and abroad. However, each adopted law has its weaknesses.

disadvantages

The activity of each enterprise is very specific. After all, an organization can be called a living organism that changes daily.

Modern companies must work effectively and instantly respond to various external and internal factors.

The authorities are constantly adopting and amending the current legislation. Business leaders are required to take into account innovations, especially those related to the tax system.

The changes introduced by the Federal Law No. 238-FZ of July 21, 2014, adopted in the summer, should have a positive impact on the activities of organizations.

Perhaps due to the implementation of any specific operations, some companies will feel the disadvantages of the introduced changes. Will show time.

Practical examples

The seller company, located on the OSNO (general taxation system) provided services to a company using the simplified tax system (simplified taxation system).

According to the legislation that was in force until 10/01/2014, the seller must issue an invoice with VAT allocated.

However, the organizations concluded. In this case, the seller has the right not to issue an invoice to the buyer.

Next example. The seller received an advance payment from the buyer in the amount of 118,000 rubles. and from this amount I paid 18,000 rubles to the VAT budget.

The firm-buyer accepted this sum to a deduction. The seller transferred products in the amount of 94,400 rubles. (including VAT 14,400 rubles).

According to the concluded agreement, only half of the advance payment, that is, 59,000 rubles, where VAT is 9,000 rubles, is credited towards payment for the shipment.

Thanks to the innovations adopted, the seller, having completed the first shipment, has the right to declare for deduction, and the buyer company must restore the tax, which falls on 59,000 rubles, that is, 9,000 rubles.

The seller will deduct the amount of the remaining advance VAT, and the buyer will restore it when the advance payment is offset against the shipment.

Main conclusions

Summarize. The adopted innovations and amendments can be combined into several points:

1. A legal entity that is on one of the special tax regimes has the right not to issue invoices without VAT. This rule is valid only in cases where a written mutual agreement has been concluded between the parties.
2. An enterprise that sells (works, goods, services) to counterparties that apply special tax regimes and are not VAT payers may also not draw up invoices by mutual written agreement of the parties.
3. If an organization sells real estate, then VAT is charged on the date the property is transferred to the buyer by.
4. When issuing or receiving an advance payment with VAT, companies can accept, depending on the situation, to set off or deduct the amount of tax that is determined on the date of shipment of goods, performance of work, provision of services.

Bill No. 489169-7 on raising VAT in 2018 to 20 percent was submitted to the State Duma only on June 16, and on July 24 the law was already adopted in the third and final reading. On August 3, the draft law was signed by the President of the Russian Federation. Numerous fears have already spread around the document.

We will tell you when, how and how much VAT will increase, who and what threatens to increase the rate. The official text of the 2018 VAT increase bill is published at the end of the article.

What you need to know about value added tax?

VAT is one of the indirect taxes credited to the federal budget. You need to know the following about it.

1. Value added tax, as stated in Art. 163 of the Tax Code of the Russian Federation, has a tax period of one quarter.
2. In 2018, the base rate for it is 18%.
3. Some goods and services, called socially significant, are sold at a reduced rate of 10%. Mostly these are basic foodstuffs, medicines, goods for children.
4. Some services, goods, products are completely exempt from paying this tax, which is regulated by paragraphs 1-3 of Art. 164 of the Tax Code of the Russian Federation. These are, for example, medical care, transport services, fees for kindergartens, etc.

Neither the list of services at special rates, nor the size of these rates (10% and 0%) is affected by the bill.

Latest news

In mid-June, the government of the Russian Federation under the leadership of D. Medvedev came up with proposals to amend the current Tax Code of the Russian Federation and a number of other laws. Bill No. 489169-7 was prepared, which provides for an increase in the tax rate to 20%.

It is planned that the increase in VAT will give the federal budget an increase in revenue in the amount of 620 billion rubles annually. For each Russian, the increase in the VAT rate will cost 360 rubles. monthly.

A heated discussion of the project on the Web led to the fact that the site's lawyers also began to receive numerous questions from readers. Here are some of them.

“Please advise: from what date the VAT increase in 2018 will occur. Is there a chance that the rate will rise only in 2019?” Ivan, an entrepreneur from Perm, is interested.

“Will there be an increase in personal income tax and VAT from 2018? What kind of price increase is predicted in connection with these changes?” Olga, a resident of Moscow, asks.

“Give your comments about the law on raising VAT in 2018: what threatens business with an increase in the base rate?” Asks the director of Svetlana LLC from Volgograd

First of all, we note the following: the law proposes to change the rate from January 1, 2019. In 2018, the rate will remain at the same level - 18%.

Conclusion: the increase in VAT in 2018 to 20 percent will definitely not take place.

Consequences of increasing the basic VAT rate

The increase in VAT is not as scary for business as commentators on the Internet make it out to be:

• the prevailing expenses of ordinary citizens are associated with the purchase of goods, the VAT rates for which will not change. Therefore, the increase in prices for them will not become significant, and this will not be directly related to VAT;
• some expensive things will really rise in price (cars, gadgets, real estate), but in recent years the state has successfully restrained inflation, due to which, therefore, experts do not predict a high price increase;
• if the personal income tax rate had been raised, the situation would have been much worse. VAT is more about business: taxation of legal entities is easier to track, as well as to identify violations in this area.

Let us recall that it is from the federal budget, to which VAT is credited, that state social programs are financed: maternity capital, preferential mortgage lending, large-scale state construction projects.

Other changes provided by the draft law No. 489169-7

As a result of the uproar surrounding the tax increase, the public did not pay attention to the fact that the bill provides for a number of other significant adjustments.

1. The VAT rate will increase when the enterprise is sold as a single property complex. Now 15.25% is valid, 16.67% is offered.
2. The right of automotive industry entities to deduct VAT amounts that were paid on purchases at the expense of subsidies or budget funds will remain until 01/01/2019.
3. The burden on payers of contributions to state non-budgetary funds is regulated. At the current rate of 34% of the total tariff of these contributions, they can be reduced to 30%.

A special area and plus of the bill for individuals is the regulation of deductions of insurance premiums, in particular, to the pension fund. It was previously planned that the current “feed-in” tariff of 22% would be maintained until 2021. And then it will be increased to 26%.

After the increase in VAT, such an increase in the contribution rate will not occur. The tariff will remain at the 22% limit for those whose payments do not exceed the maximum value of the base for deductions of contributions. Those whose incomes exceed this limit will pay 10% on the excess amounts. And this is, in general, a positive change.

An increase in the VAT rate in 2018 will lead to the fact that the corresponding changes will also be introduced in 167-FZ "On Compulsory Pension Insurance" dated 15.12. 2001, in 165-FZ "On the basics of compulsory social insurance" dated 07/16/1999.

Official text – Draft law on VAT increase in 2018

Submitted by the Government of the Russian Federation

THE FEDERAL LAW

On Amending the Tax Code of the Russian Federation, Article 9 of the Federal Law “On Amending Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation” and Recognizing Certain Provisions of Legislative Acts of the Russian Federation as Invalid

Article 1

Include in the second part of the Tax Code of the Russian Federation (Sobraniye Zakonodatelstva Rossiyskoy Federatsii, 2000, No. 32, Art. 3340; 2001, No. 1, Art. 18; No. 53, Art. 5015; 2002, No. 22, Art. 2026; No. 30 , item 3027; 2003, No. 1, item 10; No. 28, item 2886; 2004, No. 27, item 2711; No. 34, item 3517; No. 35, item 3607; No. 45, item 4377 ; 2005, No. 30, pp. 3101, 3128, 3129, 3130; No. 52, pp. 5581; 2006, No. 10, pp. 1065; No. 31, pp. 3436; 2007, No. 23, pp. 2691; No. 45 5417, 5432; No. 49, item 6045; 2008, No. 26, item 3022; No. 48, item 5519; No. 49, item 5749; 2009, No. 48, item 5731; No. 51, item 6155; No. 52, item 6444; 2010, No. 15, item 1746; No. 31, item 4198; No. 45, item 5750; No. 48, item 6250; 2011, No. 30, item 4575, 4593 ; No. 45, item 6335; No. 48, item 6731; 2012, No. 41, item 5526; No. 49, item 6751; 2013, No. 14, item 1647; No. 23, item 2866; No. 30, 4049; No. 40, article 5038; No. 48, article 6165; 2014, No. 23, article 2936; No. 48, articles 6660, 6663; 2015, No. 1, article 5; No. 14, article 2023; No. 48, item 6689; 2016, No. 1, item 6; No. 22, item 3098; No. 26, item 3856; No. 27, item 4175, 4176, 4177, 4 181; No. 49, Art. 6844, 6851; No. 52, Art. 7497; 2017, no. 1, art. sixteen; No. 11, art. 1534; No. 47, art. 6842; No. 49, art. 7307, 7313, 7322, 7325, 7333; 2018, no. 1, art. 20; No. 18, art. 2565; No. 27, art. 3942) the following changes:

in paragraph 2 of article 154:

a) the second paragraph after the word "benefits" shall be supplemented with the words "(including discounts on the price of goods (works, services) excluding tax)";

b) the third paragraph after the word "benefits" shall be supplemented with the words "(including discounts on the price of goods (works, services) excluding tax)";

2) in paragraph three of paragraph 4 of Article 158 the words "15.25 percent" shall be replaced by the words "16.67 percent";

3) in Article 164:

a) subparagraph 42 of paragraph 1 shall be supplemented with the words "or provided that the point of departure and (or) the point of destination of passengers and baggage are located on the territory of the Far Eastern Federal District";

b) in subparagraph 6 of paragraph 2 the words “in subparagraph 41” shall be replaced by the words “in subparagraphs 41 and 42”;

c) in clause 3 the words “18 percent” shall be replaced by the words “20 percent”;

4) in paragraph three of clause 9 of Article 165 the words "18 percent" shall be replaced by the words "20 percent";

5) in paragraph 5 of Article 1742 the words "15.25 percent" shall be replaced by the words "16.67 percent";

6) subparagraph 1 of paragraph 2 of Article 425 shall be amended as follows:

“1) for compulsory pension insurance:

within the established marginal value of the base for calculating insurance premiums for this type of insurance - 22 percent;

over the established limit of the base for calculating insurance premiums for this type of insurance - 10 percent;”;

7) Article 426 shall be declared invalid;

In subparagraph 3 of paragraph 2 of Article 427:

a) in the second paragraph, the word "rubles;" replace with the word "rubles.";

b) add a paragraph with the following content:

“For the payers specified in subparagraphs 7 and 8 of paragraph 1 of this article, during 2019-2024, the rates of insurance premiums for compulsory pension insurance are set at 20.0 percent, for compulsory social insurance in case of temporary disability and in connection with motherhood, for compulsory health insurance – 0 percent;”.

Article 2

In Part 4 of Article 2 of the Federal Law of June 4, 2014
No. 151-FZ "On Amendments to Chapter 21 of Part Two of the Tax Code of the Russian Federation" (Sobraniye Zakonodatelstva Rossiyskoy Federatsii, 2014, No. 23, Art. 2936; 2016, No. 1, Art. 6; No. 49, Art. 6844) words "2019" shall be replaced by the words "2025".

Article 3

Part 51 of Article 9 of the Federal Law of November 27, 2017
No. 335-FZ “On Amendments to Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation” (Sobranie Zakonodatelstva Rossiyskoy Federatsii, 2017, No. 49, Art. 7307; 2018, No. 1, Art. 20) shall be recognized as lost strength.

Article 4

Establish that the provisions of paragraph 1 and subparagraph 6 of paragraph 3 of Article 170 of the Tax Code of the Russian Federation (as amended until the date of entry into force of the Federal Law of November 27, 2017 No. Federation and certain legislative acts of the Russian Federation") are applied to goods (works, services) (including fixed assets, intangible assets, property rights) acquired:

organizations - subjects of natural monopolies at the expense of budget investments received before December 31, 2018 inclusive from the budgets of the budget system of the Russian Federation;

taxpayers - agricultural producers at the expense of subsidies received until December 31, 2018 inclusive from the budgets of the budget system of the Russian Federation;

by manufacturing organizations at the expense of subsidies received until December 31, 2018 inclusive from the federal budget to compensate for part of the costs associated with the issuance and support of warranty obligations for wheeled vehicles, high-performance self-propelled and trailed vehicles, including agricultural machinery, for the use of energy resources energy-intensive enterprises of the automotive industry, for the implementation of research and development work and testing of wheeled vehicles;

concessionaire organizations implementing projects for the construction (reconstruction) of roads (sections of roads and (or) artificial road structures), at the expense of budget investments received before December 31, 2018 inclusive from the budgets of the constituent entities of the Russian Federation on the basis of concession agreements concluded before January 1, 2018.

Article 5

1. This Federal Law shall enter into force on the day of its official publication, with the exception of provisions for which this article establishes other dates for their entry into force.

2. Subparagraphs "a" and "b" of paragraph 3 of Article 1 of this Federal Law shall enter into force after one month from the date of its official publication, but not earlier than the 1st day of the next tax period for value added tax.

3. Clause 2, subclause "c" of clause 3, clauses 4-7 of Article 1 of this Federal Law shall enter into force on January 1, 2019.

4. The provisions of the third paragraph of paragraph 4 of Article 158, paragraph 3
Article 164, Paragraph 3 of Clause 9 of Article 165 and Clause 5 of Article 1742 of the Tax Code of the Russian Federation (as amended by this Federal Law) shall apply to goods (works, services), property rights shipped (performed, rendered), transferred starting from January 1 2019.

5. The provisions of subparagraph 42 of paragraph 1 of Article 164 of the Tax Code of the Russian Federation (as amended by this Federal Law) shall apply until January 1, 2025.

6. The provisions of paragraphs two and three of paragraph 2 of Article 154 of the Tax Code of the Russian Federation (as amended by this Federal Law) apply to legal relations that have arisen since January 1, 2018.

The president

Russian Federation V.Putin

Afterword

Now only the President of the Russian Federation must decide whether there will be an increase in VAT in 2018 and from what date the increased rate of 20% will begin to operate. After the law is passed by Parliament and approved by the Federation Council, the signature of the President of the Russian Federation is required. After that, the document will be published in Rossiyskaya Gazeta. The document was signed by Vladimir Putin on August 3, 2018.

We present for you an overview of the changes in VAT since October 1, 2018. What exactly has changed for VAT? How do I issue invoices now? We will talk about the new rules for working with VAT and give examples.

No. 1: Introduced a new VAT calculation upon receipt of an advance payment by the seller of property rights

So, from October 1, 2018, companies that transfer property rights specified in paragraphs 1-4 of Article 155 of the Tax Code of the Russian Federation apply a new procedure for calculating VAT on advances. This is about property rights.

• upon assignment and reassignment of a monetary claim arising from a contract for the sale of goods, works, services;
• when transferring property rights to housing, garages or parking spaces;
• upon assignment of a monetary claim acquired from a third party (except for those arising from monetary loan or credit agreements).

If a company has received an advance payment for the transfer of property rights, then from October 1, 2018, VAT must be calculated from the difference between the prepayment and the amount of the monetary claim to which it cedes the rights, or the costs of its purchase (clause 1, article 154 of the Tax Code of the Russian Federation).

Example:

The size of the property right is 5000 rubles. The organization transfers it to another organization at a cost of 4800 rubles. The advance payment received in 2018 on account of the transfer of property rights is 4,800 rubles. VAT on the advance is 0 rubles. ((4800 ₽ - 5000 ₽) × 18/118).

Read also When can an individual become a VAT payer?

Partial advance

When calculating VAT from October 1, 2018, it is required to determine the share of the advance in the cost at which the company transfers property rights. Let's say the cost of buying a property right is 180 rubles. The company transfers the property right at a cost of 200 rubles. The advance payment amount is 50 rubles. The share of the advance payment in the value of the transferred property right will be 0.25 (50 ₽: 200 ₽). VAT on prepayment is 0.76 rubles. ((50 ₽ - (180 ₽ × 0.25)) × 18/118.

No. 2: Expanded the list of transactions taxed at a rate of 0 percent

From October 1, 2018, taxpayers who produce precious metals from scrap and waste without a license for subsoil use can apply the zero VAT rate when selling precious metals. Previously, such a license was needed (Federal Law of June 27, 2018 No. 159-FZ).

No. 3: Introduced new rules for export

Accompanying documents

From October 1, 2018, for goods exported outside the EAEU, it will not be necessary to submit copies of transport, shipping and / or other documents with customs marks of the place of departure confirming the export of goods outside Russia. The IFTS can receive data on the export of goods directly from customs - in electronic form.

However, if the customs does not provide these data or they contradict the information declared by the taxpayer himself, then the Federal Tax Service Inspectorate may require copies of transport, shipping and other documents confirming the export of goods. The taxpayer has 30 calendar days from the date of receipt of the inspection's request to submit such documents. Reason: Federal Law of August 3, 2018 No. 302-FZ

If the company ships goods to the EAEU countries, such documents can also not be submitted together in the VAT return. But on the condition that the company has submitted an electronic list of applications for the import of goods and the payment of indirect taxes (the tax authorities have the right to request them, but selectively).

Is it true that VAT in Russia has already been raised to 20%, and what are the consequences of such a decision by the legislator.

The main news of the tax innovations is the increase in VAT in 2018 – the base rate will be set at 20%. However, this innovation will come into force only from the beginning of next year, if the bill passes all stages of approval through the State Duma of the Russian Federation, the Council of Federations of the Russian Federation and the President of the Russian Federation. About what to expect from the decision of the authorities, and what changes VAT payers are already required to take into account, we will tell in this article.

Despite regular changes in tax legislation, the basic rules for calculating and paying VAT have remained unchanged for a long time. The main VAT-related news in 2018 came in June, when the Government of the Russian Federation began to implement presidential decrees on attracting additional funds to the budget. One of the bills developed by the authorities was the VAT increase in 2018. Entry into force of this amendment is possible only if the following conditions are met:

• approval of the draft law in the State Duma of the Russian Federation - at the moment only the first reading has passed, at which the deputies approved the change in the VAT rate in 2018;
• after passing three readings in the State Duma of the Russian Federation, the law will be sent for approval to the Federation Council of the Russian Federation;
• if the legislators uphold the initial provisions of the draft, the last word will remain with the President of the Russian Federation - only after he signs the law in the final version, the amendments will become legally binding.

Note!

The increase in VAT in 2018 does not mean that the new base rates will come into effect immediately. Changes in legislation related to the tax increase will only be effective from the next calendar year, i.е. since January 2019.

The law does not provide for other fundamental changes in the rules for working with VAT in 2018. However, a number of innovations came into force from the beginning of the year and significantly affected the fulfillment of tax obligations by domestic and foreign companies. Let’s highlight the most important innovations faced by enterprises in 2018:

• the list of VAT payers has been expanded - for example, this list includes companies whose activities are related to the sale of non-ferrous and ferrous metals, as well as purchasers of these products;
• certain categories of persons received exemption from the tax, for example, intermediaries in money transfers within the country;
• certain types of operations were exempted from VAT - leasing transactions with certain types of medical equipment and machinery, works and services for the renewal of the state reserve, transfer of property assets within free economic zones, etc.

The procedure for preferential taxation has also changed slightly. For domestic air carriers, a reduced rate of 10% has been extended, and flights to Kaliningrad are subject to zero VAT. The 0% rate has been extended to certain operations related to the re-export of products that have passed customs declaration.

The new VAT rules in 2018 relate to the procedure for paying tax and reporting to the tax service:

• the declaration and accompanying documents can only be sent electronically. Violation of this rule will result in the imposition of penalties;
• the amount of accrued VAT is now transferred directly to the budget, which greatly facilitates the control over operations for the fiscal authorities;
• for companies where only certain transactions are taxed, a separate accounting obligation has been introduced - this rule applies even if the volume of non-taxable transactions is insignificant.

The amount of VAT for 2018 has not changed and will remain the same until the end of the calendar period. The base rate is 18%, and for socially significant goods and services it is reduced to 10%. For a number of foreign economic transactions related to the movement of goods across the border, a zero rate is applied.

You can make changes to the tax rates at any time, but they will only take effect from the beginning of the next calendar year. This also applies to the planned increase in the VAT rate in 2018.

If amendments to regulations result in an improvement in taxation conditions, the legislator may put them into effect without waiting for the next calendar year. However, for VAT, this rule is practically not applicable, since the tax is one of the main sources of budget replenishment.

Consequences of increasing the basic VAT rate

Although the VAT rate remained unchanged in 2018, the upcoming tax increase is already linked to inflationary expectations. VAT is a pricing factor, as it is included in the cost of products, works or services. Even a slight increase in the interest rate has the following consequences:

• an increase in wholesale and retail prices for all types of products, since the end consumer receives the goods after completing transaction chains, where each participant is forced to increase the cost;
• increase in budget revenues - according to the conclusion of the Ministry of Finance of the Russian Federation, prepared simultaneously with the bill, in 2019 alone the budget will additionally receive more than 600 billion rubles;
• while maintaining deductions and preferential rates at the same level, an increase in VAT will lead to an increase in the amount of reimbursement from the budget, especially for participants in foreign economic transactions;
• The Government of the Russian Federation has announced the reduction or complete cancellation of most investment projects - their action will be resumed only after assessing all the consequences of an increase in the tax rate.

Even the news about the approval of the bill on VAT from July 1, 2018 significantly increased the inflation expectations of citizens and business entities. Forecast indicators of the Ministry of Finance of the Russian Federation for the second half of the year provide for a sharp increase in demand for durable goods, which automatically leads to higher inflation.

The state plans to direct additional revenues from VAT in the following areas:

• implementation of social projects - medicine, healthcare, education, etc. (An additional incentive will be the extension of the 10% rate on socially significant goods and services);
• modernization of transport infrastructure - repair and construction of roads, airports, and other facilities;
• increasing the efficiency of free economic zones - for enterprises in the FEZ, a simplified or preferential procedure for taxation and reporting is maintained.

While the VAT rate for 2018 has remained unchanged, companies have the opportunity to work on ongoing transactions. This will make it possible to include part of the taxation expenses in the reporting of 2018, i.e. using the old calculus.

New procedure for paying VAT in 2018

Since the VAT changes for 2018 are insignificant, we will highlight the general rules for fulfilling tax obligations. VAT in Russia in 2018 must be paid by entities that meet the following requirements:

• the company must be registered as a legal entity, which is confirmed by the data of the Unified State Register of Legal Entities;
• domestic and foreign business entities operating under the general taxation regime (OSNO) are required to pay VAT;
• the subject of taxation are the results of entrepreneurial transactions - the supply of products, foreign economic contracts, the sale of services, etc.

Note!

If the transaction is not made within the framework of entrepreneurial activity, there is no obligation to pay VAT. Such transactions include the acquisition of property for the personal needs of individual employees of the company.

Payment of VAT tax in 2018 occurs on the basis of declarations. This reporting is submitted to the IFTS according to the following rules:

• the law provides for a quarterly reporting form, and at the end of the calendar year, a final declaration is submitted;
• the regulated deadline for the submission of declaration forms is provided for by the Tax Code of the Russian Federation - no later than the 25th day of the month following the reporting period;
• even if the company had no operations on transactions involving VAT, they are required to submit zero reporting (in some cases, it is allowed to submit a single simplified form for all types of taxes).

By submitting a declaration, the payer himself calculates the amount of tax to be transferred to the budget, and also determines the amount to offset or refund the tax. The decision to accept reporting, as well as to refund VAT, is made based on the results of a desk audit at the IFTS. For violation of the deadlines or procedure for reporting, as well as the rules for calculating tax, liability in the form of penalties is threatened.

When filling out reporting forms and forms, documents on transactions, accounting information, accounts and their journals, books of purchases / sales, etc. are used. To confirm the validity of the information provided, the IFTS may conduct cross-checks in relation to counterparties. During the verification of financial statements, the company may submit its explanations or objections, as well as dispute its results.

A feature of VAT is the ability to return part of the tax or set it off against future payments. This right arises if the company confirms the difference between "incoming" and "outgoing" tax. The difference may arise when deductions are granted to certain categories of persons, as well as when using reduced rates (for example, a 0% rate is used for many foreign economic transactions).

You can receive a VAT refund in the form of a refund only after paying the tax to the budget. To do this, the company submits an application based on the results of a positive passing of a desk audit.

To receive a tax refund, you need to confirm the reality of the transaction, reflect the information in the accounting and tax reporting of both counterparties. If the company has a VAT debt, the entire amount of the refund will be used to pay off the arrears and penalties. The balance will be transferred to the company's account or used to offset other tax liabilities.

Summary

What is VAT in Russia in 2018? The change in rates at the legislative level has not been approved, however, a bill to increase the base tax rate to 20% is under consideration in the legislature. The innovation will come into force only from January 2019, after the official promulgation of the law. Current innovations relate to changes in the composition of payers, the list of benefits and the exclusion of certain transactions from taxation.

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Question about the auction held on 44fz. We won the auction for the supply of building materials, the Customer is MUP, we are Suppliers to the USN. In the auction documentation in the draft contract, the price is indicated with VAT. At the conclusion of the contract, the Customer refuses to remove VAT. For our part, we wrote a protocol of disagreements with a request to remove VAT with reference to the decision of the Arbitration Court of the Moscow District of April 28, 2016 No. F05-4344 / 2016 and to the decision of the Arbitration Court of the West Siberian District of November 19, 2014 No. F04-11932 / 2014 (determination of the Armed Forces of the Russian Federation dated 16.03.2015 No. 304-ES15-3471)), which states that the deduction by the customer of the amount of VAT when paying for the contract is unlawful, regardless of the fact that the supplier is not a VAT payer. To which the Customer refused, referring to "The legal position is reflected in the rulings of the Supreme Court of the Russian Federation dated June 26, 2015 N 306-KG15-7929 in case No. A65-16826 / 2014, dated August 25, 2016 N 310-KG16-10142 in case No. A14-14925 / 2015, dated 13.10.2016 No. 308-KG16 / 12777 in case No. A53-24050 / 2015. Guided by this judicial practice, the lower courts draw similar conclusions: decisions of the Arbitration Court of the North Caucasus District of 21.07. 2016 in case No. A32-32818 / 2015, dated April 27, 2017 in case No. A53-24878 / 2016, dated June 9, 2016 in case No. A53-24060 / 2015; case No. A34-6052/2015, dated February 6, 2018 in case No. A50-13695/2017, dated February 13, 2018 in case No. A50-14948/2017, Resolution of the Arbitration Court of the East Siberian District dated December 26, 2017 in case No. A10- 542/2017 and others". As a result, the Customer said that there were no grounds for amending the VAT in the contract. Who is right? Do we have the right to conclude at the same price but without VAT?

• 26 AbakanskieES cancellation of VAT.doc
• response to protocol of disagreement.doc

New procedure for calculating VAT on the sale of scrap, raw hides and recycled aluminum

Buyer pays VAT

From January 1, 2018, the sale of scrap is subject to VAT, i.e. paras. 25, clause 2, article 149 of the Tax Code of the Russian Federation, which establishes tax exemption, becomes invalid (Federal Law of November 27, 2017 N 335-FZ)

But buyers (with the exception of individuals who are not individual entrepreneurs) will pay VAT on the sale of scrap and waste of ferrous and non-ferrous metals, secondary aluminum and its alloys, as well as raw animal skins. The new paragraph 8 of article 161 of the Tax Code of the Russian Federation imposes on them the duties of a tax agent for VAT (paragraph 8 of article 161 of the Tax Code of the Russian Federation was introduced by Federal Law No. 335-FZ of November 27, 2017).

For the purposes of the Tax Code of the Russian Federation (Clause 8, Article 161 of the Tax Code of the Russian Federation): raw animal skins are recognized as raw (undressed) skins taken from animal carcasses, steamed or preserved in order to prevent their spoilage and decomposition (wet-salted or dried), but not subjected to any further processing; Recycled aluminum and its alloys are recycled aluminum and its alloys, classified in accordance with the All-Russian Classifier of Products by Type of Economic Activity.

Tax agents are required to calculate and pay the appropriate amount of tax to the budget, regardless of whether they perform the duties of a VAT taxpayer. That is, organizations and individual entrepreneurs that apply special regimes or are exempt from VAT in accordance with Article 145 or 145.1 of the Tax Code of the Russian Federation are not exempt from the duties of a tax agent.

But, pay attention, the buyer will only have the duties of a tax agent if he purchases scrap, aluminum or skins from VAT payers (clause 8, article 161 of the Tax Code of the Russian Federation).

That is, for example, if a recycling center purchases scrap from individuals, such an organization will not have to pay VAT. She does not have the obligations of a tax agent for VAT. Or a plant that purchases scrap from non-payers of VAT, for example, from organizations or individual entrepreneurs that use the simplified tax system or are exempted from fulfilling the duties of a taxpayer in accordance with Articles 145 and 145.1 of the Tax Code of the Russian Federation. The plant does not pay VAT on such an operation.

In order for the scrap buyer to know that they are purchasing goods from a VAT non-payer, sellers must make an entry in the contract and in the primary accounting document “Without tax (VAT)” or put such a mark (paragraph 6, clause 8, article 161 of the Tax Code of the Russian Federation).

Four exceptions to the rule when VAT has to be calculated by the seller

If the supplier deceives the buyer, i.e. it is established that the seller has unreasonably put a mark in the contract and the primary document on the absence of VAT, then it is the seller, and not the buyer, who will have to pay VAT to the budget (paragraph 7, clause 8, article 161, p 3.1 article 166 of the Tax Code of the Russian Federation as amended from 01/01/2018)).rt the seller issues an invoice to the buyer with a zero VAT rate, which the seller needs

Also, the seller will have to independently calculate VAT if, during the sale of scrap, he was relieved of his duties as a VAT payer or applied a special regime (ESKhN, USN, UTII, PSN), but lost the right to do so “retroactively”. That is, such taxpayers calculate and pay tax on scrap sales operations, starting from the period in which they switched to the general taxation regime, until the day the circumstances occur that are the basis for the loss of the right to exemption from the performance of taxpayer obligations or to apply the relevant special tax regimes (par. 8, clause 8, article 161, clause 3.1, article 166 of the Tax Code of the Russian Federation from 01.01.2018). The seller issues an invoice to the buyer with a zero VAT rate, which the seller needs to

For example, an organization on the simplified tax system sold scrap on 04/12/2018 (with the mark “Without tax (VAT)). But in the 2nd quarter, revenues from the beginning of the year exceeded the maximum amount for the application of the simplified tax system, for example, this happened on 06/20/2018 and she lost the right to use this special regime from 04/01/2018 (clause 4 of article 346.13 of the Tax Code of the Russian Federation) . From 06/20/2018, the organization began to issue VAT invoices to its customers and made appropriate changes to previously issued contracts. Accordingly, she must calculate VAT on scrap shipped in the 2nd quarter of 2018 for the period from 04/01/2018 to 06/20/2018, in our example, for scrap shipped on 04/12/2018, the seller issues an invoice to the buyer -an invoice with a zero VAT rate, which the seller needs to

In addition, VAT must be calculated and presented to the buyer by the seller if the scrap is purchased by an individual who is not an individual entrepreneur (such situations, according to the author, are rare) (clause 3.1 of article 166, clause 1 of article 168 of the Tax Code of the Russian Federation, as amended by 01/01/2018)rt, the seller issues an invoice to the buyer with a zero VAT rate, which the seller needs

When selling scrap for export, the seller issues an invoice to the buyer with a zero VAT rate, which the seller needs to

How does the seller arrange for the sale of scrap?

Despite the fact that when purchasing scrap from VAT payers, buyers must act as a VAT tax agent, the norms of the Tax Code of the Russian Federation do not exempt sellers from issuing invoices. But in cases where VAT must be paid by a tax agent, the seller is obliged, upon sale of scrap by taxpayers, as well as upon receipt of payment, partial payment against the upcoming deliveries of such goods, issue invoices, including corrective invoices excluding amounts tax. At the same time, in invoices, corrective invoices, a corresponding inscription is made or a stamp “VAT is calculated by a tax agent” is placed (clause 5, article 168 of the Tax Code of the Russian Federation). The seller does not calculate VAT on such transactions (clause 4, article 173 of the Tax Code of the Russian Federation).

As a general rule, in settlement and primary documents, as well as in invoices, the corresponding tax amount is allocated in a separate line (clause 4, article 168 of the Tax Code of the Russian Federation). However, considering that the seller does not present this tax to the buyer and does not even have to calculate it (clause 3.1 of article 166 of the Tax Code of the Russian Federation from 01/01/2018), according to the author, in the primary documents that accompany the transfer of scrap to the buyer, the same should be done a note as in the invoice, i.e. indicate the amounts without VAT and make a note “VAT is calculated by the tax agent”.

How such invoices will be registered by the seller and the buyer, who is a tax agent for VAT, is still unclear. Rules for keeping a sales ledger and a purchase ledger, approved. By Decree of the Government of the Russian Federation of December 26, 2011 N 1137, changes will most likely be made.

The procedure for calculating VAT by the buyer-tax agent

The tax agent purchasing scrap determines the tax base based on the cost of goods sold, determined in accordance with Article 105.3 of the Tax Code of the Russian Federation (i.e., based on the contractual value), including tax (clause 8 of Article 161 of the Tax Code of the Russian Federation). The VAT rate 18/118 applies to the tax base, which includes the amount of VAT (clause 4, article 164 of the Tax Code of the Russian Federation). That is, if the price of scrap is 118 rubles, including VAT, the tax base will be 118 rubles. If the contract specifies the cost of scrap without VAT, for example, 100 rubles. excluding VAT (VAT is paid by the tax agent), then the tax base will also be equal to 118 rubles. (100 rubles + VAT (18 rubles)).

Given that tax agents are required to withhold the calculated tax from the funds transferred to the taxpayer (clause 1, clause 3, article 24 of the Tax Code of the Russian Federation), and sellers must issue invoices for amounts excluding VAT, we can say that in any case, the seller must receive payment for scrap (including prepayment) without VAT.

The moment of determining the tax base from tax agents purchasing scrap from VAT payers is determined in accordance with the procedure established by paragraph 1 of Article 167 of the Tax Code of the Russian Federation (paragraph 15 of Article 167 of the Tax Code of the Russian Federation as amended from 01/01/2018), i.e. The tax is calculated on one of the earliest dates:

• on the day of shipment;
• on the day of payment, partial payment against the upcoming deliveries of goods.

We believe that in the case of transferring an advance payment, the procedure for calculating VAT for tax agents specified in clause 8 of Article 161 of the Tax Code of the Russian Federation will be similar to the procedure currently used by tax agents specified in clause 5 of Article 161 of the Tax Code of the Russian Federation. Such tax agents must also determine the tax base for VAT in accordance with paragraph 1 of Article 167 of the Tax Code of the Russian Federation. That is, if the moment of determining the tax base for a tax agent is the day of payment, partial payment for the upcoming deliveries of goods, then on the day of shipment of goods on account of the payment received earlier, partial payment, the moment of determining the tax base also arises (clause 14 of Art. 167 of the Tax Code of the Russian Federation). At the same time, the tax agent has the right to deduct VAT calculated when transferring an advance payment for the date of shipment of scrap (clause 8, article 171 and clause 6, article 172 of the Tax Code of the Russian Federation).

Despite the fact that such a procedure is not directly prescribed in the Tax Code of the Russian Federation, the procedure for filling out section 2 of the VAT declaration contains precisely such instructions for tax agents who determine the tax base for VAT in accordance with paragraph 1 of Article 167 of the Tax Code of the Russian Federation (paragraph 37.8 The procedure for filling out a tax return for value added tax, approved by Order of the Federal Tax Service of Russia dated October 29, 2014 N ММВ-7-3 / [email protected]). A similar conclusion follows from paragraph 4.1 of Article 173 of the Tax Code of the Russian Federation, as amended. from 01/01/2018, which states that tax agents have the right to deduct the VAT specified in paragraph 8 of Article 171 of the Tax Code of the Russian Federation (calculated by taxpayers from an advance payment).

In other words, in our opinion, in the case of an advance payment to the seller on account of the supply of scrap, the procedure for calculating VAT for tax agents purchasing scrap will be as follows:

1. When transferring an advance to the seller, the tax agent calculates VAT on the advance. For example, a tax agent transfers 100 rubles to the seller, and 18 rubles. (100 * 18%) VAT is charged to the budget (tax base with a tax agent = 118 rubles, rate 18/118).
2. When scrap is shipped in the amount of 118 rubles, including VAT or 100 rubles. excluding VAT, the tax agent charges VAT 18 rubles. (118 rubles * 18/118) for the purchased scrap and 18 rubles. VAT calculated when transferring prepayments is deductible.

If the buyer does not transfer the prepayment to the scrap supplier, then the tax agent’s tax base will arise on the date of shipment of the scrap (clause 1, clause 1, article 167 of the Tax Code of the Russian Federation), i.e., it is on this date that the tax agent will have to calculate VAT, regardless of the fact of transferring payment to the supplier (i.e., in fact, VAT will be withheld from the supplier (will not be transferred to the supplier) when payment is transferred to him (the supplier is paid without VAT)).

Also, the norms of the Tax Code of the Russian Federation provide for the specifics of calculating VAT by tax agents when returning scrap and in cases of a change in its value (clause 10, article 154, clause 5, article 171 of the Tax Code of the Russian Federation).

The new paragraph 4.1 of Article 173 of the Tax Code of the Russian Federation establishes the procedure for determining the amount of VAT that the tax agent specified in paragraph 8 of Art. 161 of the Tax Code of the Russian Federation must pay to the budget at the end of the quarter. The tax agent determines the amount of tax calculated on the date of transfer of the advance payment and on the date of shipment of the scrap, increases it by the amount of VAT to be recovered in accordance with paragraphs. 3 and 4, paragraph 3, article 170 of the Tax Code of the Russian Federation and reduces by the amount of deductions provided for in paragraphs 3, 5, 8, 12 and 13 of Art. 171 of the Tax Code of the Russian Federation, taking into account the specifics of VAT deductions when exporting goods.

VAT calculated by a tax agent when acquiring scrap can be deducted by him if the tax agent is a VAT payer and the scrap was purchased for VATable transactions (Clause 3, Article 171 of the Tax Code of the Russian Federation). In addition, if the tax agent is a VAT payer, he can deduct the VAT calculated by him when transferring the advance on account of the supply of scrap (as VAT presented to the buyer when transferring the advance) (clause 12, article 171 of the Tax Code of the Russian Federation), the truth is case, as well as when accepting VAT deductible on a “regular” advance payment transferred to the supplier, the tax agent will have to restore the VAT previously accepted for deduction when transferring an advance payment in the period when the right to deduct VAT on purchased scrap arises (clause 3 clause 3 of Art. .170 of the Tax Code of the Russian Federation).

Also, the tax agent has the right to deduct the calculated VAT if he had to return the scrap to the seller or the seller returned the prepayment to him upon termination or change in the terms of the contract (clause 5, article 171 of the Tax Code of the Russian Federation).

For clarity, let's give an example of how, in the author's opinion, the accounting of the buyer-payer of VAT and the seller will reflect operations for the transfer of a partial prepayment and for the purchase of scrap.

From the buyer:

• Dt 60 Kt 51 - a 50% advance payment of 50 rubles was issued.
• Dt 76. ON Kt 68 - VAT was charged from an advance payment of 9 rubles. ((50 +50*18%)*18/118)
• Dt 68 Kt 76.VA - deduction of VAT on advances issued 9 rubles.
• Dt 41 Kt 60 - goods of 100 rubles are accepted for accounting.
• Dt 76. ON Kt 68 - VAT was charged on the shipment of scrap - 18 rubles. ((100 +100*18%)*18/118)
• Dt 68 Kt 76.NA - deduction of VAT calculated when transferring an advance - 9 rubles.
• Dt 68 Kt 76.NA - VAT deduction for purchased scrap 18 rubles.
• Dt 76.VA Kt 68 - restoration of VAT previously accepted for deduction on advances issued 9 rubles.

From the Seller:

• Dt 51 Kt 62 - an advance payment of 50 rubles was received.
• Dt 62 Kt 90 - reflected the sale of scrap 100 rubles.

Tax agents who are NOT VAT payers, as already mentioned, in the author's opinion, can deduct VAT calculated by them as tax agents when transferring an advance payment against the delivery of scrap on the date of shipment of the scrap (clause 8 of article 171 of the Tax Code of the Russian Federation). In addition, clause 13 of Article 171 of the Tax Code of the Russian Federation does not specify that only VAT taxpayers can apply such a deduction. Therefore, according to the author, VAT non-paying buyers also have the right to deduct VAT from the difference by which the cost of purchased scrap has decreased (after all, if the cost of purchased scrap decreases in cases where the seller must issue an adjustment invoice to the buyer, it turns out that the tax agent overpaid VAT on the “original” value of the scrap and must correct the amount of calculated VAT by deducting VAT from the difference by which the value has decreased).

VAT deductions provided for in paragraph 3, paragraph 5 and paragraph 12 of Article 171 can only be applied by taxpayers. This is expressly stated in these regulations.

If an organization or individual entrepreneur applies the simplified tax system with an income-expenses object, such a buyer can take into account the amount of VAT paid on the purchased scrap as expenses (clause 8, clause 1, article 346.16, article 346.17 of the Tax Code of the Russian Federation). But, if the cost of the purchased scrap is not taken into account for tax purposes, then the amount of VAT calculated by the non-paying tax agent cannot be taken into account in expenses.

We also note that for tax agents who are not VAT payers, the grounds for the restoration of previously accepted VAT are not provided (since such agents are not VAT payers and are not entitled to deduct VAT, the restoration of which is provided for in paragraphs 3 and 4, paragraph 3 Article 170 of the Tax Code of the Russian Federation In other words, since VAT was not accepted for deduction, there is nothing to recover).

Thus, tax agents calculate VAT based on the results of the quarter, taking into account possible deductions for such transactions and the amount of VAT to be recovered. They are required to submit to the tax authorities at the place of their registration the relevant tax declaration in the prescribed format in electronic form via telecommunication channels no later than the 25th day of the month following the expired tax period (quarter) (clause 5 of article 174 of the Tax Code of the Russian Federation as amended on 01/01/2018). Payment of the calculated tax for the expired quarter is made in equal installments no later than the 25th day of each of the three months following the expired quarter (clause 1 of article 174 of the Tax Code of the Russian Federation as amended from 01/01/2018).

We believe that appropriate changes will be made to the VAT declaration form and it will contain special lines for reflecting VAT calculated by tax agents who purchase scrap, recycled aluminum and raw animal skins. The current declaration form does not contain such lines.

We want to warn you that the norms of the Tax Code of the Russian Federation do not give an unambiguous answer to many questions regarding the calculation of VAT from January 1, 2018. The author expressed only his point of view, which should be treated as an expert position. And, it is possible that the Ministry of Finance of the Russian Federation and the Federal Tax Service of the Russian Federation may have a different opinion on these issues. There are no official clarifications yet.

Accounting for VAT when receiving budget investments and subsidies from the budget

From January 1, 2018, amendments are made to Article 170 of the Tax Code of the Russian Federation regarding VAT accounting when receiving budget investments and subsidies from the budget.

So, in the new paragraph 2.1. Article 170 of the Tax Code of the Russian Federation will establish that in the case of the purchase of goods (works, services) at the expense of received subsidies and (or) budget investments, VAT presented by suppliers of goods (works, services) or paid when importing goods into the territory of the Russian Federation is not subject to deduction. (clause 2.1 of article 170 of the Tax Code of the Russian Federation as amended by the Federal Law of November 27, 2017 N 335-FZ).

The tax amount is taken into account in expenses when calculating corporate income tax, provided that the expenses for the acquisition of the goods (works, services) themselves, including fixed assets and intangible assets, property rights, are taken into account in expenses (including through accrued depreciation). At the same time, the taxpayer is obliged to keep separate records of VAT amounts for goods (works, services) purchased (paid) at the expense of subsidies and (or) budget investments. If this requirement is not met, VAT cannot be taken into account in expenses.

This rule also applies when carrying out capital construction and (or) acquiring real estate at the expense of budget subsidies and (or) budget investments with a subsequent increase in the authorized capital of state (municipal) unitary enterprises or the emergence of the right of state (municipal) ownership to an equivalent part in the authorized ( joint) capital of legal entities.

If the goods (works, services) are first purchased by the taxpayer, and only then he receives a subsidy or budget investments to reimburse the costs, then the previously deductible VAT must be restored upon receipt of funds (clause 6, clause 3, article 170 of the Tax Code of the Russian Federation) . The requirement to restore VAT when receiving subsidies for reimbursement of expenses was contained in subparagraph 6, paragraph 3, article 170 of the Tax Code of the Russian Federation and until 01/01/2018. At the same time, it was not required to restore VAT when receiving budget investments.

From January 1, 2018, it will also be clarified that VAT must be restored regardless of the fact that the amount of tax is included in subsidies and (or) budget investments for cost recovery. The procedure for restoring VAT with partial reimbursement of costs through subsidies and (or) budget investments has been determined.

In such a situation, the taxpayer needs to calculate the share of the tax to be recovered. It is determined based on the cost of goods (works, services), including fixed assets and intangible assets, property rights, excluding tax, acquired through subsidies and (or) budget investments for reimbursement of costs, in the total cost of purchased goods (works , services), including fixed assets and intangible assets, property rights, excluding tax.

New procedure for applying the "rule of 5%"

If the taxpayer carries out VATable and non-VATable activities, he must keep separate records of input VAT in the manner prescribed by paragraph 4 of Article 170 of the Tax Code of the Russian Federation. VAT relating exclusively to taxable transactions is deductible.

VAT relating exclusively to non-taxable transactions (let's call them direct expenses) is included in the cost of acquisitions, i.e. it is taken into account in expenses. And, for those goods (works, services) and property rights that will participate simultaneously in both taxable and VAT-exempt activities, input VAT (let's call it “general business” VAT) must be distributed. Part of the tax is included in their cost (and, accordingly, taken into account in expenses), and the other part (related to taxable transactions) is deductible. To do this, calculate the appropriate proportion.

But at present, clause 4 of Article 170 contains the so-called “5% rule”, which formally allows the taxpayer not to keep separate records and deduct the entire amount of VAT if the share of expenses on non-taxable transactions in the total amount of expenses for the quarter is not exceeds 5%. However, taking into account the latest judicial practice and clarifications from the Ministry of Finance of the Russian Federation, the “5% rule” can only be applied to “general business” deductions, i.e. VAT deductions, which should be distributed in proportion between taxable and non-taxable activities.

VAT deduction on goods (works, services) related exclusively to non-taxable transactions cannot be deducted, even if the “5% rule” is observed (Decision of the Supreme Court of the Russian Federation of 10.12. -65178/2015, p. 12 Letters of the Federal Tax Service of Russia dated December 23, 2016 N SA-4-7 / [email protected], Letter of the Ministry of Finance of Russia dated 05.10.2017 N 03-07-11 / 65098).

From January 1, 2018, this position will be officially enshrined in paragraph 4 of Article 170 of the Tax Code of the Russian Federation (as amended by the Federal Law of November 27, 2017 N 335-FZ). That is, if the “5% rule” is observed, the taxpayer will be able to deduct the entire amount of “general business” VAT, and for goods (work, services) related exclusively to taxable or exclusively non-taxable transactions, separate accounting of input VAT will have to be kept.

As you can see, there are a lot of changes in VAT. Moreover, some amendments made to Chapter 21 of the Tax Code of the Russian Federation entail the need to change the form of the VAT return and the rules for filling it out, and this will add work even to those taxpayers who are not affected by the innovations. And that's not all... From January 1, 2018, significant amendments to VAT are expected by organizations and individual entrepreneurs engaged in foreign economic activity. But more about this in the next article "Export" VAT. Changes as of January 1, 2018”.