VAT is perhaps the most complex tax, which has a lot of legislative exceptions in the order of its calculation and payment. A lot has been said about it, many situations have been considered, and business entities tirelessly continue to pay penalties due to incorrect accounting due to a misunderstanding of the current legislation. In this article we will try to understand this complex tax.

The essence of value added tax

In the theory of tax accounting, there are two broad groups of fiscal obligations - one-time withholding and cumulative.

The first, as their name suggests, impose a one-time burden on a certain list of goods and services, and this happens at a clearly established stage of pricing. The latter have a complex structure and are subject to withholding for each trading transaction.

What is VAT? This is a collective amalgamation of the above groups. The burden on added value, undoubtedly, should be classified as the most complex and multi-stage, which is why it has such a significant share in the fiscal policy of the Russian Federation.

So, VAT - what is it? This is an indirect tax of a traditional nature, which is a surcharge on a certain group of goods and services, which is ultimately paid by the consumer. Although obligations are imposed on the business entity, more on that later.

Who is the tax payer?

VAT payers are legal business entities, individual entrepreneurs, as well as those persons who transport goods across the state border of the Russian Federation and are recognized as bearers of obligations for value added tax in accordance with the Customs Code of the Russian Federation.

In this case, an enterprise can legally obtain exemption from the fiscal duty. Or petition for a change in the rate (after all, as you know, there are VAT of 18, 0 and 10%).

As for tax exemption, the business entity must independently take care of the implementation of this right. To do this, he must, before the 20th day of the expected month, contact the fiscal authorities with all the necessary documents, including extracts from the journal of business transactions and balance sheet, as well as all the necessary primary documents in the form of invoices.

Object of taxation

VAT - what is it? This is an indirect fee, the object of which is a list of certain operations:

• regular sales of goods;
• gratuitous sale of property, property rights or sale under a compensation agreement;
• transfer of goods and services for personal use, while their cost is deducted when calculating the fiscal burden on profit;
• carrying out construction and installation works intended for one’s own use;
• goods crossing the state border of the Russian Federation.

At the same time, it is important to understand that in order to impose the VAT tax burden, the sale of goods must be carried out on the territory of the Russian Federation. If we are talking about export operations, then the initial loading of the taxable object must occur within the state border.

Tax base

VAT - what is it? This is a fiscal obligation, the basis of which is the cost of goods and services sold, and its total volume does not include excise duty and sales tax. In this case, the par value is taken to be the price specified in the purchase and sale agreement, regardless of whether it is higher or lower than the cost price and the average market value. Therefore, according to current legislation, it is the VAT base until the contrary is proven.

Value added tax is a fiscal levy with a lot of pitfalls, so it happens that government agencies take control over the pricing of a particular product (service). This often happens when transactions are concluded between related parties, if barter transactions are involved, or if the market price fluctuates significantly in its face value.

Fiscal rates

Value added tax is calculated today according to three rates - 18, 10 and 0%.

0% VAT is used in the following cases:

• export sales of goods, which is carried out by crossing the state border of the Russian Federation in interaction with the customs service;
• carrying out services and work aimed at the production of goods, the export of which is planned to be carried out outside the country for further sale;
• direct transportation of goods for further export.

A rate of 10% applies in a number of the following cases:

• when selling food products specified in Art. 164 Tax Code of the Russian Federation;
• sale of periodicals;
• production of children's consumer goods;
• literature of educational and scientific nature;
• medical products.

The VAT rate of 18% applies to the sale and production of other goods and services.

Fiscal period

Like other types of tax burden, the fiscal obligation regarding added value has a clear calendar relationship established by law. Thus, VAT taxation is limited to one calendar month. However, there are a number of special business entities for which the mentioned period is one quarter. This group includes those enterprises whose net profit does not exceed two million rubles per month.

The basis for paying value added tax is the actual sale of goods and services, subject to the imposition of a fiscal burden, and it is carried out at the end of the legally allotted period, but no later than the 20th day of the following month.

Tax reporting forms

According to the allotted deadlines, VAT payers are required to provide the fiscal authorities with all the necessary documentation regarding the burden. Moreover, it must contain not only a declaration, but also primary information regarding controversial and dubious transactions.

All tax payer business entities are required to submit reporting documents (even those engaged exclusively in exports and, accordingly, all their products are subject to a 0% VAT rate). However, in this case, the declaration has a non-standard form, in accordance with the approved order of the Ministry of Finance of the Russian Federation No. 31n dated March 31, 2005.

All documentation necessary for reporting is provided by the business entity regarding the place of registration of the entrepreneur.

Methodology for calculation and payment of VAT, example of use

So, for example, we have an enterprise - LLC. In order to calculate the tax base, the accountant first needs to take the market value of goods and services sold as a constant, and then subtract from the resulting amount all the necessary values, including legally permitted benefits.

In addition, the nominal value does not include the amounts of obligations that were presented to the payer of the burden, and subsequently repaid indirectly when purchasing any benefits. This rule applies to the following categories of operating activities:

1. Acquisition of property rights, as well as goods and services for the purpose of their use in the further operating activities of the enterprise.
2. Purchase of assets for their further re-sale.
3. Purchase of imported goods from a non-resident who defaults on fiscal obligations to the state treasury of the Russian Federation.
4. Those VAT amounts that relate to the returned goods from the buyer.
5. Services received from contractors during installation work.
6. Purchasing services and goods by employees on a business trip.

Transactions that are not subject to VAT calculation

There are a number of subtle points in the organization of operating activities that value added tax in no way concerns. This provision is regulated by the current tax code of the Russian Federation, namely Art. 149.

In other words, this benefit is called tax exemption. In order for a business entity to apply it in relation to its activities, its fiscal policy must contain separate accounting, which will be kept separately both for transactions subject to the imposition of a burden on added value, and for others.

In addition, the enterprise must have all the necessary licenses that allow it to legally refuse to pay value added tax in some cases.

We also do not forget about import operations, which are not subject to the imposition of a fiscal burden, since the goods are purchased from a foreign supplier who has nothing to do with our legislation.

Value added tax, or VAT, is one of the key ones in terms of replenishing the Russian budget. Therefore, the procedures reflecting its calculation and payment are regulated especially strictly by law. At the same time, many entrepreneurs are legally exempt from paying this tax and also have the right to receive the appropriate type of deductions that reduce the tax burden. What are the features of VAT calculation in Russian practice? What should entrepreneurs whose obligation to pay this tax pay attention to? How to correctly use the right not to calculate this fee?

Who pays VAT

Payment of VAT is the responsibility of entrepreneurs and organizations conducting income-generating activities (even if the main profile of the structure is non-profit). By default, all firms must transfer the corresponding tax to the treasury. However, based on Russian practice, there are quite a lot of exceptions here - we will study them further.

Some experts prefer to divide fee payers into two categories - those for whom the corresponding tax is calculated due to activities on the territory of the Russian Federation, as well as those who pay this fee when importing goods across the border. In the first case, this means interaction with Russian counterparties, the sale of goods and the provision of services for citizens of their country (or clients located on its territory). In the second case, interaction, as a rule, is carried out with foreign companies (or with branches of Russian companies registered abroad).

However, the rules regarding the calculation of VAT and imports may differ depending on the specific state with which Russia borders. Certain preferences, in particular, are available to entrepreneurs importing goods from states that are members of the Customs Union.

The main objects of taxation are, therefore, transactions related to the implementation of property rights, purchase and sale, or the gratuitous transfer of goods, performance of work and services, as well as imports. That is, almost any business activity related to financial calculations.

Exemption from payment

We found out who should pay VAT. We will also study the aspect that concerns options for exemption from paying this tax. The main source of the norms that determine this is Article 145 of the Tax Code of the Russian Federation. According to this source, this tax may not be paid by organizations and individual entrepreneurs whose revenue for 3 months amounted to no more than 2 million rubles.

To correctly exercise this right, businesses must complete a number of formalities - issue invoices that will contain the “No VAT” mark, and also keep a log of relevant documents. Also, before the 20th day of the month from which the payer has the right not to calculate tax, he must submit a notification to the Federal Tax Service. In addition, after another 12 months, the entrepreneur must provide the tax authorities with documents confirming that during such and such a period the revenue was no more than 2 million rubles compared to three-month periods. We also note that as soon as the company’s income has exceeded the established limit, which gives the right to exemption, the tax must be paid in full from the 1st day of the next month.

Also, individual entrepreneurs and organizations operating under the Unified Agricultural Tax (Unified Agricultural Tax), the simplified tax system, the patent system, as well as UTII for certain types of activities may not pay VAT. In addition, entrepreneurs implementing innovative projects in the Skolkovo center may not think about how to pay VAT.

Exemption from VAT: nuances

Exemption from paying this tax is a right, but not an obligation. That is, if an entrepreneur does not take advantage of this opportunity, but pays VAT, the state, without grounds guaranteed by law, will not return the amount transferred to the treasury. At the same time, as soon as a company has sent an application to the Federal Tax Service about its desire to be exempt from paying tax, in the next 12 calendar months it cannot refuse to exercise this right - only if the revenue exceeded the established limit or, due to the specifics of the activity, the entrepreneur began to sell goods for which payment of VAT is mandatory, for example, due to the fact that the products are excise.

In some cases, VAT is not paid due to the fact that the financial transaction is not recognized as an object of tax calculation. For example, this could be the transfer of property, investments in authorized capital and other similar transactions. Article 149 of the Tax Code of the Russian Federation, moreover, sets out a list of activities that are subject to VAT taxation; the actual rate for them, however, is zero. True, experts recommend that entrepreneurs look at this list as often as possible - it can be adjusted based on legislative revisions.

VAT calculation

The most important aspect regarding VAT is calculation. The tax base is any income of the payer - as prescribed by Article 153 of the Tax Code of the Russian Federation. That is, VAT is calculated mainly on the basis of figures reflecting the cost of goods sold, work performed or services provided. The tax period for this type of fee is quarterly.

The formula used to calculate VAT and the calculation of this tax includes several components. Firstly, it includes the amount of the corresponding fee, which is taken into account during the sale. Secondly, the formula may include a VAT deduction. Thirdly, one of the stages of calculating tax may be determining the amount to be restored for subsequent payment. In practice, calculating VAT is quite simple.

So, if we are talking about the first component, then it is calculated by calculating 18% of the tax base (income from the sale of goods, provision of services, performance of work) - this is the VAT rate. The second step is to determine the amount to be deducted. It is applicable mainly in commodity transactions and is equal to the tax paid during settlement with the supplier. How to determine it correctly? Let's look at an example.

Let's say we bought a batch of televisions at a factory (from a Russian supplier). The selling price of each was 100 rubles. In fact, the supplier did not actually receive this amount - he must reduce it by the amount of VAT, which is calculated based on the cost of the goods. That is, if the selling price is 100 rubles, then this means that the supplier’s revenue was approximately 84.75 rubles (100 multiplied by 0.18, divided by 1.18). Accordingly, the VAT that we paid (18% of 85) is equal to 15.25 rubles. This will be our deduction for each of the TVs. Our "VAT calculator" takes into account the standard rate - 18%. If a company sells goods or provides services within the framework of a tax of 10%, then the corresponding indicators in the formula will be 0.10 and 1.1.

In some cases, as we said above, it is possible that VAT will have to be paid additionally - but the size of the corresponding amounts depends on the balance of previous transactions. Everything that we did not pay extra earlier, say, for the previous batch of TVs, we can add in the current transaction.

VAT calculation: nuances

There are two main rules on the basis of which the closing date of a transaction subject to VAT is determined. Firstly, this may be the day of full or partial payment for the supply of goods, performance of work or provision of services. Secondly, you can take into account the day when the products were actually shipped, and the services, in turn, were provided (the work, accordingly, was completed).

In paragraph 2 of Article 164 of the Tax Code of the Russian Federation, as well as in Government Decree No. 908 of December 31, 2004, there is a list of goods in respect of which VAT is calculated at a rate of 10% rather than 18%. In addition, the corresponding tax is not charged when exporting products, as well as when paying for the provision of international transportation services. In addition, VAT is not charged on the sale of precious metals by taxpayers who mine them themselves or produce them from scrap of the appropriate type.

How to pay VAT according to deadlines? This procedure is carried out no later than the 20th day of the month following the quarterly reporting period. You must pay in equal installments.

VAT deductions: nuances

Above we looked at one example of the implementation of an entrepreneur’s right to deduction in terms of VAT calculation. What other options are there to use the opportunity to reduce the relevant tax in a legal way? We have considered, in fact, only one - when the amount presented by suppliers of goods is subject to deduction.

An option is possible in which it becomes possible to calculate the tax with deduction not only on the basis of procedures associated with the supply of material assets, but also with the performance of work and provision of services. In this case, the corresponding tax is calculated based on the cost of services provided by the contractor or performer. Also, VAT can be reduced if the entrepreneur paid the appropriate fee when importing goods at the border - in cases where this is provided for by law. For example, paragraph 2 of Article 171 of the Tax Code of the Russian Federation allows you to deduct VAT when importing products from the countries of the Customs Union.

In order to correctly exercise his right to deduct VAT from the amount calculated for payment as a whole, the entrepreneur must be ready to provide the Federal Tax Service with invoices, as well as primary documents reflecting the acceptance of products (works or services) for the appropriate accounting. At the same time, it is permissible to deduct VAT only after goods and services have been taken into account.

Refund

In some cases, an entrepreneur has the right to expect a VAT refund. What is this procedure? The fact is that it is possible that, at the end of the tax period, the amount of deductions due will be greater than the calculated tax amount. How to pay VAT in this case? As such, the obligation to transfer the necessary amounts to the budget does not disappear. However, the entrepreneur can return the overpayment. The main thing is to have time to do this within three years after the expiration of the tax period in which the right to compensation arose. True, there is one nuance here. If a company declares its right to a VAT refund, the tax authorities are obliged to check the validity of this application. That is, a tax audit of the organization will be carried out.

As a rule, within the framework of this, the Federal Tax Service will require documents from the company that reflect the legality of using tax deductions. It is interesting that the specific list of relevant papers is not directly defined by law. But, as a rule, these are invoices, as well as documents that confirm the payment of VAT on the amount of income in full or when importing goods at the border. In some cases, the Federal Tax Service may request original documents. This is possible, for example, when checking a VAT return. Based on the results of the work, tax authorities can make one of three possible decisions - refund the VAT in the declared amount in full, refuse the entrepreneur this, or partially satisfy the application.

An option is possible in which the VAT refund can be offset against the entrepreneur’s debts for taxes, arrears, penalties, against future advance payments, etc. But it is quite possible to credit the overpayment to your current account. The transfer of funds within the framework of the appropriate procedure can be carried out both upon completion of the tax audit and during it (though not in all cases - this nuance is described in paragraph 8 of Article 171.1 of the Tax Code).

VAT refund: nuances

VAT refund is a procedure that contains quite a lot of nuances. Let's look at some. We said above that the company has three years to submit an application for a VAT refund to the Federal Tax Service. The countdown date for this period begins from the end of the corresponding tax period. Another nuance reflecting the timing of procedures related to VAT refunds is that a tax audit can only be carried out within three months from the date of filing the declaration. In addition, if the company submits a tax return with updated data, the verification procedure is resumed from scratch.

If the Federal Tax Service finds inconsistencies or errors in the documents being studied, the entrepreneur will receive a corresponding notification with an order to provide the necessary explanations or correct the information. If the tax authorities identify a direct violation of the law during the audit, then a report is drawn up, which is also handed over to the company within five days. It can be sent by registered mail. If the company does not agree with the wording set out in the act, then within 15 days after receiving this document its owner has the right to challenge them by sending written objections to the Federal Tax Service. Tax officials, in turn, must make a decision within 10 days (and in some cases specified by law - 30). An entrepreneur also has the right to appeal the actions of the department to a higher authority or in court.

If a company is re-registered at an address for which another territorial department of the Federal Tax Service is responsible, then the responsibility for VAT reimbursement is assigned to it. From the point of view of legislation, tax officials, regardless of the actual location of departments, are considered as one and the same subject of legal relations. Thus, an entrepreneur, based on the provisions of the law, should not think about how to pay VAT and deduct the required amounts, correlating formal procedures with the geography of the Federal Tax Service performing its functions.

Compensation according to Central Bank standards

If the Federal Tax Service has received an application from an entrepreneur to transfer funds as part of a VAT refund to a current account, then the corresponding payment order is sent to the Federal Treasury. This department, in turn, transfers the necessary funds to the taxpayer within five days. Moreover, if the VAT refund amount is not paid within these periods, its percentage increases based on the refinancing rate of the Central Bank. This procedure, interestingly, is regulated not only by tax law, but also by civil law. In addition, a similar procedure, when the Central Bank refinancing rate is added to the original VAT refund amount, can be carried out if the Federal Tax Service has unlawfully refused to refund the overpayment of the corresponding tax. The terms from which the “interest” guaranteed by law accrues are set the same as if the Federal Tax Service had given a positive decision on the return.

Declaration

Actually, about the declaration. We noted above that this document is one of those that tax authorities check when refunding the corresponding tax. However, the VAT declaration is important not only in this aspect - it is, in principle, one of the most important documentary sources reflecting the activities of the company. The taxpayer is obliged to submit it to the Federal Tax Service no later than the 20th day of the month that follows the reporting period, that is, the quarter. If this document is not handed over to the tax authorities, then a fine of 1000 rubles will be imposed on the entrepreneur. From January 1, 2014, the declaration can be submitted electronically. If the company did not carry out financial transactions related to VAT, it is necessary to submit a so-called zero declaration.

I am glad to welcome you again, dear friends! Blog author Ruslan Miftakhov is in touch. I think that today almost everyone has heard, and even personally encountered, when making purchases in stores, with such an abbreviation as “VAT”.

But not everyone understands what these letters mean and where they come from. That's why I decided to explain what VAT is in simple words. At the end of the article you will find a cool video about a mother with a computer, watch it, you won’t regret it :)

This article will be useful and interesting both to ordinary people who are interested in this tax, and to those who already have or are planning to start their own business in the future in order to understand how to work with it. Let's get started.

So, value added tax (VAT explanation) is a fee paid by organizations that create an additional, additional market price for a product or service.

It is a small portion of the added value that arises from the difference between the revenue that the selling company received after selling goods or services and the amount of costs that it incurred to purchase specific raw materials, supplies, or products.

At the same time, this organization can produce products from purchased raw materials, or simply resell the goods, naturally at a higher price.

Value added tax appeared about a hundred years ago, replacing a sales tax paid on all revenue. However, in Russia it began to operate in 1992.

Why is it needed? The answer to this question is quite simple: today VAT is the main source of formation of the state budget, and the calculation of its final value (which we will consider in more detail a little later) frees organizations from double payment of fees to the budget.

What is the value of this bet?

According to Russian legislation, VAT is calculated at three interest rates:

1. Zero means that this fee is not charged on all products produced for export (gas, oil, precious metals, space).
2. 10% - refers to the so-called preferential categories of goods: essential goods, socially significant (children's goods, medications, a number of food products).
3. 18% is the most common rate, applicable to most goods and services (everything not included in the first two points).

Who pays it?

I wonder who really pays this tax, for whom is this tax burden? Of course, enterprises do this directly. But the statement that this burden falls only on business is incorrect.

Who pays for the product when it goes to retail?

That's right - the buyer, that means you and me. The company submits the declaration to the tax office, and ultimately the buyer pays a higher price, increased by the amount of this fee, thereby indirectly reimbursing the costs incurred by the seller.

Let's take a closer look at the essence of value added tax by considering the logical chain of its definition:

1. When one company buys materials, components, or simply finished goods from another, it pays them to the supplier, taking into account VAT included in their price.
2. Then, when the future price of the product is determined, the cost includes the cost of previously purchased products (materials), reduced by the amount of tax (paid in the first point). This deductible amount of the fee is recorded as a tax credit, or, in other words, it is input VAT, an amount to be deducted in the future.
3. When determining the final selling price of a product (taking into account the cost, desired profit, excise taxes) to the final buyer, VAT is added to the final price (this is what you and I pay, as buyers).
4. Then, 18% is calculated from the revenue received for the product (the rates were discussed above), and a value called the tax liability is obtained.
5. As a result, the company must pay the state an amount equal to the difference between the obligation (point 4) and the tax credit (point 2).

To make it even clearer, let's look at the calculation of this tax using a simple example:

The company bought doors from the manufacturer for the amount of 10,000 rubles. The amount of input VAT paid to the manufacturer will be equal to: 10,000 * 18% = 1,800 rubles.

Then this company sold the doors to customers in the store at a new price, taking into account its profit, and received revenue equal to 20,000 rubles. The amount of the obligation will be: 20,000 * 18% = 3,600 rubles.

Thus, this organization must pay the state: 3,600 – 1,800 = 1,800 rubles. Agree, it’s not as difficult to understand as it seems.

Features of tax deduction

All companies are required to submit reporting – a tax return – every quarter, and no later than the established deadline (before the 25th of the next month). In case of delays, you will have to pay fines and penalties.

To fill out the quarterly report and to determine the amount that needs to be paid to the budget, as mentioned above, determine:

• tax base (all company revenue);
• tax deduction (or tax credit);
• the amount of tax to be reimbursed.

Tax deductions reduce the amount paid to the budget, since they have already been paid to the supplier. But they are accepted for deduction only if the following conditions are met:

1. All purchased products for sale are subject to this fee.
2. The organization has all correctly filled out primary documents (delivery notes for products) and invoices (these are provided by the supplier, from whom you need to require them to fill them out correctly).
3. All products have passed accounting records in this company.

We’ve cleared up the deductions, now let’s figure out what the concept of VAT for reimbursement means.

As we have already said, the amount that needs to be paid to the state is found by subtracting the deduction amount from the tax liability. So, if for a given quarter (by the way, there are 4 quarters in a year, as well as the season of the year) the amount of deduction is higher than the calculated tax, this will mean that this organization has actually overpaid the tax.

And therefore, she will have the right to reimburse this overpayment from the budget by submitting the appropriate declaration. After the inspection verifies the correctness of all calculations and documents, a decision will be made to reimburse the overpaid tax.

Funny video of a typical mom at the computer

I suggest taking a little break from such a boring topic of taxation and watching a cool video to cheer you up :) Reminds me of my mother in some way when you try to explain something to her on a computer or smartphone =))

This concludes today's article. Have you managed to deal with this, as it seems at first glance, difficult collection and burden? I hope so. I will also be waiting for your feedback, comments, and ratings. Thank you all and see you again!

Best regards, Ruslan Miftakhov

If we characterize a certain concept of what VAT is in three words, it is value added tax. Wherever we look, all reference books will give exactly this definition. Everyone seems to have heard this name, but it is still difficult to understand the meaning of this word.

In this article we will try to understand in simple terms what VAT is, how to work with it and why it is needed .

Concept of VAT

Each of us buys something every day, and sees these numbers on the price tags, and wonders why we, ordinary consumers, need them. After all, we do not produce goods or sell them, we are only buyers. The conclusion is simple, we are all involuntary. It's kind of an obligation. After all, we must somehow support the state financially, paying all kinds of taxes, penalties, and fines.

This is the most powerful tool for replenishing the state budget. With his help, money from the treasury will never run out. In any crisis situation, people will still buy goods, and therefore pay VAT.

But you can draw one conclusion and be proud of your state. Our tax rate is 18%, while in other countries it reaches 27%. Each state has certain groups of goods for which the tax rate is reduced. For example, we have reduced the rate on especially necessary food products to 10%.

A detailed description of the tax for beginners is presented in this video:

And yet, why do we need VAT?

Why do ordinary citizens need VAT?

It is impossible to do without minimal simple knowledge in the modern world. This is a solid and constant income for the state. The Tax Code has an entire article dedicated to VAT. This “duty”, which is paid by citizens:

• All persons providing services to the public. (Construction, repair, rental services, etc.)
• Sellers of consumer goods.
• Manufacturers of goods.
• And ordinary consumers.

We can say that ordinary citizens do not need VAT; our state needs it, which replenishes the budget.

VAT calculation examples

When purchasing goods for further sale, the supplier issues an invoice in which the tax has already been entered. Invoices must be accompanied by invoices; these documents are inseparable from each other.

1. We purchased goods from a supplier for 6,000 rubles, including VAT;

• That is, the actual cost of the goods is 6000*100/118 = 5084.75 rubles.
• And the amount is 6000*18/118 = 915.24 rubles.

2. The next day we sell this product for 18,000 rubles, also including VAT:

• The actual price of the product is 18000*100/118 = 15254.24 rubles;
• The amount of “outgoing” VAT is 18000*18/118 = 2745.76 rubles;

3. At the end of the tax period, an entrepreneur or organization calculates the total amount of VAT payable using the formula “output VAT” minus “input”:

• Total we owe to the budget 2745.76 - 915.24 = 1830.52 rubles.

Who ultimately is the VAT payer using an example

It is incorrect to assume that only businessmen are payers. Individual enterprises and organizations submit a declaration to the tax office, and ultimately the end consumer becomes the loser. Since the price included in the price of the goods already includes VAT.

Let's consider a simple option of including VAT in the price of a product. We have two individual entrepreneurs, a VAT payer and an end consumer.

• IP Ivanov bought jackets from IP Sidorov, he paid the amount of VAT, which was included in the price of the goods.
• Next, IP Ivanov sells these jackets in the store to ordinary people. In addition to the price originally purchased, that is, already including VAT, he chooses his own price, taking into account another inclusion of VAT.
• As a result, the final buyer purchases a product that already includes VAT.
• Ivanov, having collected his reports, took the amount of “output VAT” (which he included in the price for the buyer) and subtracted the amount of “input VAT” from the supplier. Ivanov will pay the resulting difference to the budget.

So the burden of paying VAT falls on all citizens of the state, but the heaviest burden falls on the final buyer.

What tax rates are there?

There are three types of tax rates in our state.

• Zero rate. This type of rate includes goods for the space sector, oil and gas transportation. Precious metals.
• necessary vital products are taxed. Bread, milk, meat.
• All other goods are subject to a rate of 18%.

Our state has the lowest VAT rate. In some countries, such as Hungary, Sweden and other countries, the tax rate is 27%.

Where did VAT come from?

The history of the creation of VAT is ambiguous; the system did not work on the first attempts. There were many inaccuracies and discrepancies. It came to our country in the 90s. The country was on the brink of an abyss, a difficult economic crisis, the collapse of the USSR, all this led to a poor country.

It was then that the government under the leadership of Yegor Gaidar decided to introduce VAT in order to somehow raise the country. The system gradually began to work. Now this is one of the powerful tools for replenishing the state treasury.

People have always bought and will continue to buy goods, even if saving money. Despite any economic situation, our citizens will buy bread and milk and pay VAT accordingly.

After registering a legal entity, entrepreneurs are faced with the need to maintain financial statements. Knowing all the nuances of the system will not only save you from problems with the tax authorities, but will also save you money.

One of the most difficult taxes to calculate is VAT. Difficulties are expressed not only in different rates when taxing different types of activities. We are also talking about the features of its calculation and the possibilities of return, which any entrepreneur should know about.

Definition

VAT is credited to the federal budget and is considered an indirect tax, since it is paid entirely from the funds of consumers of goods. The seller is obliged to keep accounting and tax records of VAT paid by him to suppliers.

To calculate the tax, the tax base is used, determined by the cost of the goods; the cost of the goods increases by 10% or 18% with each sale, its amount is indicated in a separate column in the invoice.

The obligation to pay VAT arises on the day of shipment or payment for the goods. There are 3 VAT rates - 18%, 10% and 0%.

The zero rate applies to export goods exported through customs procedures, as well as when providing services for the international transportation of goods. VAT of 10% is charged on certain groups of goods: children's, medical, etc. The 18% VAT rate applies to all other goods.

Amounts of VAT spent on the purchase of goods or services in Russia are subject to deduction from the amounts of goods sold; therefore, enterprises paying VAT prefer not to do business with companies operating under other tax regimes.

Watch the video about who pays VAT and what it is. Enjoy watching!

Who pays this tax?

Almost all entrepreneurs are faced with the need to pay VAT; any organization with a general tax regime is subject to it. . VAT is imposed on enterprises, individual entrepreneurs and individuals who create additional market value. Organizations and individual entrepreneurs that maintain reports under special tax regimes are exempt from VAT.

What is VAT refundable?

Currently, there is an increase in disputes between entrepreneurs and tax authorities; in 50% of conflict situations we are talking about VAT refunds. According to statistics, in almost 90% of cases disputes end in favor of entrepreneurs. In accordance with Russian legislation, the taxpayer has the right to a VAT refund.

According to Article 176 of the Tax Code, VAT is subject to reimbursement in the event that, at the end of the tax year, the amount of deductions exceeds the amount of tax calculated for transactions, the difference is returned to the taxpayer.

To learn about the cases in which VAT refunds are possible, read here.

How to return?

Every year, the taxpayer submits a declaration; if a VAT refund is required, it must reflect the amount of VAT to be refunded. The applicant has every right to compensation after a desk audit (you can find out what a desk audit is and how it differs from an on-site audit). In practice, in order to refund the tax amount, it is necessary to send a free-form application to the tax office.

The text of the application must indicate the full name of the enterprise, postal address, TIN, signature of the director with a transcript (if signed by another employee, a copy of the power of attorney must be attached), seal, if the application is not drawn up on the organization’s letterhead. In the absence of the above data, the tax office may refuse to consider the application.

The VAT refund amount can be offset against another tax; to do this, you must indicate the BCC of this tax and the amount to be transferred. The remaining amount can be used to pay future VAT payments. If it is necessary to return funds, a current account must be indicated for their transfer, especially if the company has several accounts, and one of them is opened in a problem bank.

After receiving the application, a desk audit of the enterprise is scheduled, during which all of the enterprise’s reporting is reviewed.

Before submitting a return application, all records must be in order. Inconsistencies in invoices, contracts, acts and invoices can serve as a serious reason for refusing to return the amount indicated in the documents.

The main difficulty is that invoices are issued not by the taxpayer, but by the counterparties with whom he cooperates. Therefore, it is recommended that they be required to complete documents accurately.

Confusion can arise when checking addresses, since companies often indicate in documents not the legal address, but the actual address. Errors may also be made when registering payment document numbers and in the name of the organization. Recently, corrected documents have also been accepted for judicial review, but it is best to do everything correctly from the very beginning.

To facilitate accounting, it is recommended to separately register taxable and non-taxable transactions, as well as transactions with a zero interest rate (when exporting products). In the absence of separation, it is almost impossible to return VAT, since the tax refund is tied to specific types of activities.

The tax office has the right to refuse a VAT refund if the counterparty cooperating with the organization has not paid VAT. The refusal may be motivated by imprudence in the choice of counterparties; to prevent such cases, it is recommended that before concluding an agreement, it is recommended to check the company’s statements with the involvement of law firms or through reviews on the Internet.

What is VAT in simple words? This is explained in the video. The video also provides an example of calculation.