Companies that apply such a special tax regime as the simplified tax system are exempt from VAT and do not have to issue invoices. However, some simplifiers still have to do this, for example, when they work with counterparties who present such terms of cooperation. We will discuss in detail how an invoice is issued under the simplified tax system with and without VAT in 2020 in the article.

Invoice under simplified tax system

All organizations and individual entrepreneurs using the simplified tax system are not VAT payers, which means they do not need to issue an invoice. However, if certain situations arise, such a document will be needed.

These include situations where “simplified” people pay VAT: (click to expand)

• Import of goods;
• Operations under a simple partnership agreement, or trust management of property and concession agreement;
• When a company performs the duties of a tax agent, for example, rents state or municipal property.

When concluding an agency agreement, an organization may have questions about the need to issue an invoice. An invoice will be required if the company on the simplified tax system is a commission agent or an agent and carries out operations:

• Upon the sale of goods by the principal or principal, who is a VAT payer;
• Upon the purchase of goods from a VAT payer for the principal or principal, who is a VAT payer.

When selling goods to the principal or principal, an invoice must be issued in the usual manner. The document must indicate the date of the invoice, as well as the serial number of the document, according to the chronology used in the company.

When purchasing goods for the principal or principal, you must re-issue the invoice received from the seller. The following is indicated on the invoice:

• Line 1 – date of the document from the seller;
• On lines 2, 2a and 2b – data on the seller (name, address, tax identification number and checkpoint);
• On line 5 - details of payment documents (if any) for the transfer of funds by the commission agent to the seller, and by the committent to the commission agent;
• The tabular part must contain information on the quantity of products, their cost, the amount of VAT, as well as other indicators issued by the seller in the invoice.

Invoice marked “without VAT”

Companies should not issue an invoice marked “without VAT” on the simplified tax system. Only companies exempt from VAT put this mark. Organizations that are considered exempt from VAT are recognized in accordance with Article 145 of the Tax Code of the Russian Federation.

Companies that apply the simplified tax system do not qualify as such “exempt” payers, since they are not initially payers of this tax. Accordingly, there is no need to issue a “simplified” invoice marked “without VAT”.

Some counterparties still insist on an invoice. Such companies should keep in mind that they will not receive a deduction for “input” VAT on such an invoice. And why they continue to demand such invoices is not clear.

“Simplers” are not obliged to fulfill such a request. They have the right to explain to their counterparties that in order to post the purchased goods, documents such as an invoice for payment, an invoice and a statement will be sufficient. And if the counterparty continues to insist and it is impossible to convince him, then you can issue the required document. Please indicate that the purchase does not include VAT.

Important! If a company has issued an invoice without VAT using the simplified tax system, the agreement with the counterparty and the entire “primary” document should also not contain tax.

Invoice journal

A unified form can be used as a logbook.

Zero VAT on the invoice

Organizations using the simplified tax system should also not put a real VAT rate of 0% in the invoice. Only companies that are VAT payers can apply this rate. In addition, it must be confirmed by specific documents that organizations submit along with the VAT return to the tax office.

If an accountant decides to meet the buyer halfway and issue a document with zero VAT, the tax authorities have the right to charge it, not at a zero rate, but at a rate of 18%. This will happen because VAT is indicated in the invoice, and it is impossible to confirm that the company’s rate is zero.

If you issue an invoice with VAT

Some organizations, on their own initiative, may issue invoices, highlighting VAT. In this case, they are required to pay tax to the budget and also submit a VAT return to the Federal Tax Service. This must be done before the 25th day of the month following the quarter in which the document was issued. For example, a company issued an invoice using the simplified tax system on February 10, 2020; accordingly, it must submit a VAT return by April 25, 2020.

It is important to understand that issuing an invoice with allocated VAT does not give the simplifier the right to a tax deduction on purchased goods. Only VAT payers have the right to such a deduction, and organizations using the simplified tax system are not such.

Issuing individual entrepreneur invoices using the simplified tax system

For entrepreneurs using the simplified system, the same requirements for issuing invoices apply as for organizations using the simplified tax system.

Legislative framework

Answers to common questions

Question: A simplified company, at the request of the buyer, issued an invoice, highlighting VAT. After that, in accordance with the requirements of the law, I paid this tax to the budget and filed a VAT return. When calculating the simplified tax system, will VAT be included in the tax base? (click to expand)

Answer: The tax base for simplifiers is income, which must first of all be economically profitable. Paid VAT is not a benefit for the company, and therefore should not be included in the base for calculating the simplified tax system. Accordingly, when calculating the tax, the simplified tax system does not need to be included in the VAT base.

According to the law, simplified products are exempt from VAT. Does such a company have the right to issue an invoice with allocated VAT? How will controllers react to this? Is it possible to claim a deduction using such a document?

As is known, VAT payers can reduce the total amount by the amount of tax deductions,
in accordance with Article 171 of the Tax Code of the Russian Federation, when purchasing goods, works, services, property rights. A company can recover VAT from the budget only if the following conditions are simultaneously met: goods, works, services were purchased for activities subject to VAT, the materials were accepted for accounting, and three years have not passed from that moment.

Obligation to issue invoices

The most important requirement for receiving a deduction is that the supplier issues an invoice correctly. This follows from the provisions of Articles 169, 171, 172, 176 of the Tax Code.
At the same time, only sellers - VAT payers have the obligation to issue documents, who must draw them up within five calendar days from the date of receipt of an advance payment or shipment of goods, performance of work, provision of services (clause 1, 3 of Article 168, clause 3 of Art. 169 Tax Code of the Russian Federation).

As a general rule, companies using the simplified system are not VAT payers. According to paragraph 2 of Article 346.11 of the Tax Code of the Russian Federation, the only exception is the tax payable when importing goods into the customs territory of the Russian Federation, as well as paid in accordance with Article 174.1 of the Tax Code of the Russian Federation. It follows that these persons should not issue invoices.

Please note

The Constitutional Court determined that a deduction on an invoice issued by an organization on the simplified tax system according to the rules of Article 169 of the Tax Code of the Russian Federation is possible if the tax is transferred to the budget. In this case, the “special regime” has the right to enter into legal relations regarding the payment of tax
(Definition of the Constitutional Court of the Russian Federation of March 29, 2016 No. 460-O).

This point of view is also shared by the Ministry of Finance in letters dated October 20, 2011 No. 03-07-09/34, dated May 16, 2011 No. 03-07-11/126, etc. As well as the Federal Tax Service of Russia dated July 24, 2008 No. 3- 1-11/239 and Federal Tax Service of Russia for Moscow dated April 5, 2010 No. 16-15/035198. In addition to the absence of the obligation to issue invoices to their customers, simplified companies do not maintain a purchase book, a sales book and do not have to submit a VAT return. And they carry out settlements with customers without allocating VAT amounts in the primary documents.

Issuing invoices under the simplified tax system

At the same time, the Tax Code does not prohibit the issuance of invoices under the simplified tax system with VAT allocated in it. Moreover, the Code defines the consequences of issuing a simplified invoice.

Despite numerous explanations from regulatory authorities, the issuance of invoices indicating the amount of VAT by companies using the simplified tax system is not so rare. This is mainly done at the insistent request of buyers who ask “simplified” people to send them VAT invoices in order to save on taxes.
And this, in turn, leads to additional responsibilities for the “simplified” person and can create difficulties.

Amount of tax paid to the budget

According to subparagraph 1 of paragraph 5 of Article 173 of the Tax Code of the Russian Federation, if a company using the simplified tax system issues an invoice to its buyer with the allocated amount of tax, then the company must calculate and pay it to the budget. The Ministry of Finance reported this in a letter dated December 25, 2015
No. 03-11-11/76394. This also applies to cases when a “simplified” person sends an invoice with VAT for the advance payment received (letter from the Ministry of Finance of Russia dated May 21, 2012
№ 03-07-07/53).

But the special regime officer cannot reduce the VAT payable by the amount of the supplier’s tax. The financiers remind us of this in a letter dated May 3, 2012 No. 03-07-14/49. “Simplified” employees must send the VAT allocated in the invoice to the budget in one payment no later than the 25th day of the month following the expired tax period (clause 4 of Article 174 of the Tax Code). Let us remind you that according to Article 163 of the Tax Code of the Russian Federation, the reporting period for VAT is a quarter. If the tax is not paid, then penalties are charged for each calendar day of delay in accordance with paragraphs 3 and 4 of Article 75 of the Tax Code. In addition, the tax return must be submitted to the inspectorate in electronic form, including the title page, section 1, section 12. This must be done no later than the 25th day of the month following the quarter in which the VAT invoice was issued (clause 5 of article 173, clause 5 of article 174 of the Tax Code of the Russian Federation, clause 3, 51 of the Procedure for filling out a VAT return). Otherwise, the organization may be fined.

Remember that when determining the tax base under the simplified tax system, income includes the amount of payment received from buyers, minus VAT (clause 1 of Article 346.15 of the Tax Code of the Russian Federation). The Ministry of Finance recalled this in letters dated December 25, 2015 No. 03-11-11/76394 and dated April 21, 2016
№ 03-11-11/22923.

VAT deduction under the simplified tax system

It is worth noting that if a company’s supplier uses the simplified tax system, it will be very difficult to obtain a VAT deduction. Regulatory authorities have long held this position: if an invoice is received from a “simplified” person, then it cannot be used for VAT reimbursement. Another similar conclusion was made in the letter of the Ministry of Finance dated October 5, 2015 No. 03-07-11/56700. The department came to such conclusions earlier in letters dated May 16, 2011 No. 03-07-11/126, Federal Tax Service of Russia for Moscow dated April 5, 2010 No. 16-15/035198 and others.

Invoicing violation

Tax officials do not accept invoices from the supplier using the simplified tax system because only tax amounts presented to the buyer-VAT payer are subject to deductions (clause 2 of Article 171 of the Tax Code of the Russian Federation), which “simplified” ones are not. In addition, invoices compiled and issued in violation of the procedure established by paragraphs 5 and 6 of Article 169 of the Tax Code cannot be the basis for accepting tax amounts for reimbursement (clause 2 of Article 169 of the Tax Code of the Russian Federation).

The invoice must include the name, address and VAT identification numbers. Consequently, the document of a non-exempt seller cannot correctly reflect this data, which automatically deprives the buyer of the right to deduct “input” VAT.

Please note

Despite numerous explanations from regulatory authorities, issuing VAT invoices under the simplified tax system is not so rare. This is mainly done at the insistent request of buyers on OSNO.

Please note: some courts support tax authorities that an invoice from a “simplified” person does not give the right to a deduction. Thus, the court, in the resolution of the Ninth Arbitration Court of Appeal dated September 21, 2015 No. 09AP-35224/2015, indicated that VAT on invoices issued by a company applying the simplified tax system is not accepted for deduction from the buyer. Therefore, if the company that ordered the product or service knows that the seller applies a special regime, it is better not to declare a deduction on his VAT invoice.

Invoice of an intermediary under the simplified tax system: an exceptional case

And yet, in some cases, buyers can safely claim a VAT deduction based on an invoice received from a “simplified” company. This applies to situations where the “special regime agent” is an intermediary (commission agent, agent) selling goods on his own behalf. Then the intermediary under the simplified tax system draws up an invoice based on legal norms, and the buyer should not have problems applying the deduction. This conclusion was made by the Ministry of Finance in a letter dated June 25, 2014 No. 03-07-RZ/30534.

This also applies to “simplers” who are participants in a simple partnership agreement or a trustee, since, due to the requirements of the Tax Code, they are required to issue an invoice (clause 2 of article 174.1, clause 2 of article 346.11 and clause 2.1 of art. 346.26 Tax Code of the Russian Federation).

Deduction on an invoice from a counterparty

An analysis of judicial practice shows that arbitrators in most cases consider it legal to deduct an invoice from a counterparty using the simplified tax system. Thus, the Constitutional Court, in its Ruling No. 460-O dated March 29, 2016, concluded that VAT payers have the right to deduct the tax, even if the invoice was issued by a “special regime officer.” The court indicated that “simplified people” can enter into legal relations regarding the payment of tax and, when issuing an invoice with VAT highlighted in it, are obliged to transfer it to the budget. The document issued to the buyer, in accordance with paragraph 1 of Article 169 of the Tax Code of the Russian Federation, is the basis for accepting the tax amounts indicated in it for deduction from the buyer.

Similar conclusions were made by arbitration courts in the decisions of the Administrative Court of the East Siberian District dated June 8, 2016 in case No. A78-2859/2015, FAS of the West Siberian District dated February 24, 2012 in case No. A03-5151/2011. When making decisions in favor of companies on the possibility of deducting VAT, the judges proceeded from the fact that a company has the right to deduct tax paid to a supplier who is not a VAT payer if all the requirements for its acceptance, provided for in Articles 171 and 172 of the Tax Code of the Russian Federation, are met. The fact that the invoice was issued by a “simplifier” does not matter, because he will pay the tax to the budget.

As we see, the position of the courts runs counter to the opinion of the regulatory authorities. So if the inspectorate refuses to deduct VAT for a company on an invoice issued by a “simplified” person, then the buyer can defend his right to deduct only in court.

The main difference between reporting by an entrepreneur and a legal entity is the independent management of document flow by the business owner, and not by a separate accounting department. That's why Individual entrepreneurs are given 5 calendar days, not working days, to issue an invoice.

The starting point is the day of receipt of property rights to the goods, the date of shipment, receipt of services, acceptance of work or receipt of an advance. In cases of prepayment, an invoice is drawn up twice, upon receipt of the advance payment and upon fulfillment of the terms of the transaction. You can find out how an advance invoice is prepared.

Article 169 of the Tax Code of the Russian Federation contains the basic requirements for indicating to an individual entrepreneur the features of a transaction in an invoice:

Important! Reliable and correct indication of all the listed information in the invoice gives the individual entrepreneur the right to receive a tax deduction when transferring the purchase book to the tax service.

You can find out more about what an invoice is and the features of using the document.

Do you need a document?

Should I issue a document if I work without VAT?

The obligation to issue an invoice under the conditions of the seller’s exemption from VAT, in accordance with paragraph 5 of Article 168, occurs in cases provided for in Article 145 of the Tax Code of the Russian Federation. We are talking about individual entrepreneurs with revenue of less than 2 million rubles per quarter, who do not work with excisable goods.

Such entrepreneurs, after notifying the Federal Tax Service, are exempt from VAT for 12 calendar months, unless conditions arise for the cancellation of such a right. The exemption is then reviewed and updated annually.

In other cases the taxpayer has the right, but not the obligation, to issue an invoice, and may use it solely for its convenience.

An example of such a situation is the exemption from tax of part of the consignment indicated in the invoice together with goods subject to tax. Also, an optional invoice for tax-free goods will help maintain consistency in document numbering.

Read about when you need an invoice without VAT.

How to display?

Option with VAT

When receiving invoices from contractors who are individual entrepreneurs, the buyer should especially carefully monitor their authenticity and especially the presence of the signature of the entrepreneur himself. The main difference from receiving a document from an LLC is the requirement for a personal visa.

Important! The absence of one of the key details, such as a personal signature or duplication of data in column 3, is grounds for refusal of a deduction during an inspection.

If an entrepreneur has issued an invoice, but the form contains an error, then it will be impossible to obtain a VAT deduction even through the court.

In case of tax exemption

Drawing up an invoice for goods “without VAT” is possible in 2 variations:

1. If all the goods in the batch have such a mark, then in line 8 of the form with the total tax amount this mark is duplicated, and such a tax document is not considered.
2. If some services or goods are exempt from tax, then column 8 indicates the actual amount excluding these data.

An invoice without VAT is filled out in accordance with the general rules for preparing this document, since Government Decree No. 1137 dated December 26, 2011 was updated by Appendix 2 to the resolution dated February 1, 2018. It is enough to enter the entry “excluding VAT” in the appropriate section of the table. The mark can be made separately, in a printed document by hand, for example, when signing a document.

Actions after issue

When receiving an invoice from the entrepreneur's authorized representative, the buyer has a high chance of being denied a deduction from the tax service and will have to go to court. The judge will check the authenticity of the transaction and, most likely, will grant the request to annul the refusal on a formal basis, but this will take the buyer time and money.

To avoid legal costs and other unpleasant moments associated with the incorrectness of this document, The nuances of issuing an invoice should be specified in the supply agreement. In any case, the supplier is not responsible for issuing an invoice, unless otherwise specified in the contract.

Conclusion

For goods, services and works subject to VAT, and invoices without VAT, since 2017, are drawn up in a similar way on an identical form. The only difference is the mark “Without VAT” in the corresponding rows of the table, opposite the names of goods and services.

Hello! Today we will discuss how to be an individual entrepreneur or LLC in a simplified manner if the client really asks for an invoice with VAT: the consequences of such actions.

Entrepreneurs who have chosen the tax regime know that one of its advantages is exemption from VAT. This plus is quite significant, since the work of simplifiers is really greatly simplified.

But there are exceptions here: There are situations when an individual entrepreneur or LLC using the simplified tax system still has to deal with both drawing up a declaration and paying taxes. We have already talked about one of these exceptions earlier -. Today we will talk about another situation when a simplifier voluntarily, at the client’s request, issues an invoice with allocated VAT. What will such actions of the entrepreneur lead to?

When a counterparty asks for a VAT invoice

If you are an individual entrepreneur or LLC under a simplified special regime, then you are not a VAT payer, and accordingly, you are not required to issue invoices to the client indicating the amount. But sometimes the client really asks to do this. There are no special reasons for this request. A large counterparty, in a transaction for a significant amount, of course, wants documents with VAT, so that this tax can then be deducted. You may not do this, but how can you refuse a client if the director himself calls you with this request?

Here the output could be like this:

• You can always agree and, for example, give the price of goods excluding VAT, which will increase the price competitiveness of your products - in fact, simply offer your counterparty a price lower than that of others.
• Still, issue an invoice with a separate tax - if the client really insists, and you don’t want to spoil the relationship with him.

What consequences await you when issuing VAT invoices?

There are two main points:

1. You will have to draw up and submit to the tax authorities.

Follow the deadline: the document must be submitted by the 25th day of the month following the previous quarter. In addition, this declaration is submitted exclusively electronically!

1. VAT, according to the amounts from the declaration, will have to be paid to the budget, and the deadline for its payment will differ from the standard conditions: the payment deadline is the same as the deadline for filing the declaration - the 25th day of the month following the end of the quarter.

There are no divisions into three equal payments over the next three months, as with standard VAT payers.

Why do you need to transfer the tax to the budget when voluntarily issuing documents with VAT?

Firstly, when issuing a document with allocated VAT from a simplifier, although he is not one of its payers, an obligation arises to submit a declaration and pay the tax. If you do not do this, you will violate tax laws. During the audit, the tax office will charge you additional VAT, calculate penalties and fines.

Secondly, if you do not transfer the tax, then in the case when your client claims it for deduction, he will not be allowed to credit this amount, and this again is a problem with the counterparty and the tax office. By the way, even if you pay tax to the budget, there is a possibility that your client will have to prove his right to a deduction in court.

Which solution to choose

To minimize your risks for individual entrepreneurs and LLCs, it is more profitable not to issue invoices with VAT on a simplified basis - you are exempt from it and you should take advantage of this advantage of the special regime. Try to interest the client with a lower price and discounts. Perhaps he himself will give up the idea of ​​​​requesting documents from you with the allocation of VAT due to the fact that in the future it will be problematic to deduct the amount of tax. The optimal solution is a conversation between managers; the decision should come from the individual entrepreneur or director of the LLC, and not from an accountant or manager.

If you still decide to charge VAT, here’s some more advice:: In transactions where you are expected to receive an advance, do not issue an invoice for the advance, do it only after shipment. It is also better to discuss this situation in advance. Otherwise, you will have to report and pay VAT twice: first on the advance invoice, and then on the shipping invoice.

The rule here is: you have issued a document with VAT, which means you have transferred the tax. As a result, you will pay the tax twice, since you will not be able to deduct VAT on the prepayment received, because you are not a VAT payer.

And also, due to the fact that issuing a VAT invoice to a client is a non-standard situation without simplifying it, It is recommended to keep these documents for 4 years: The tax office may require you to present it during an audit.

IP simplified taxation system income minus expenses. Give an explanation of the application of VAT under the simplified tax system. Our manager is negotiating with a large buyer of products. The purchase is not a one-time purchase, different batches throughout the year, but VAT is required. The manager does not want to lose such a buyer and proposes to issue an invoice with VAT only for this counterparty. Can the buyer accept the VAT charged by the seller using the simplified tax system? Consequences for the seller when issuing VAT, besides paying the tax and declaration? Do I need to keep a book of purchases and sales? How often can you issue a VAT invoice while using the simplified tax system?

Answer

Simplified companies are not VAT payers and usually do not issue invoices (clause 3 of Article 346.11 of the Tax Code of the Russian Federation). But at the request of the buyer, an entrepreneur can set a price including VAT using the simplified tax system and issue an invoice (clause 5 of Article 173 of the Tax Code of the Russian Federation). In this case, the simplifier will have to pay VAT to the budget and submit a tax return electronically (Resolution of the Federal Antimonopoly Service of the Moscow District dated December 28, 2010 No. KA-A41/16458-10).

It turns out that the simplified seller, who met the client halfway, faces additional difficulties. Therefore, act in the way that is most beneficial for you. You have the right to refuse to invoice VAT if you do not want to deal with paying tax and unnecessary reporting. But if the client is important to the individual entrepreneur, then it makes sense to meet halfway and draw up paperwork with VAT.

It is more profitable to work with clients to whom the simplifier issues documents with VAT without prepayment. The fact is that an invoice with VAT is required to be issued on the earliest date: within five calendar days after receiving an advance from the client or shipment of goods, performance of work, provision of services (Article 167 of the Tax Code of the Russian Federation).

Once you issue an invoice, you will be required to pay tax. If the simplifier paid the tax in advance, then after shipment you must still issue an invoice and transfer the tax on it to the budget. At the same time, simplifiers cannot reduce the tax on shipment by the amount of VAT paid on the advance payment. They are not VAT payers. This means that they do not have the right to deduct the tax transferred from the advance payment (Clause 12, Article 171 of the Tax Code of the Russian Federation).

You will also have to report VAT for the quarter in which you received the advance or the shipment occurred. Deadline for submitting the declaration: the 25th day of the month following the reporting quarter. In the declaration, fill out the title page, sections 1 and 12. VAT reporting must be done strictly via telecommunication channels (subparagraph 1, paragraph 5, article 173 and paragraph 1, paragraphs 4 and 5, article 174 of the Tax Code of the Russian Federation). Tax authorities consider a report submitted on paper to be rejected. And if the simplifier did not report online, then the inspectors will charge a fine under Article 119 of the Tax Code of the Russian Federation in the amount of 5% of the amount of VAT payable for each month of delay.

It is also necessary to transfer VAT to the budget no later than the 25th day of the month following the reporting quarter (clause 4 of Article 174 of the Tax Code of the Russian Federation).

Businessmen using the simplified tax system who have issued documents with VAT do not need to keep a journal of invoices (clause 1 of the Rules for maintaining an accounting journal, approved by Decree of the Government of the Russian Federation of December 26, 2011 No. 1137).

Also warn that if you prepare documents with VAT, the client will have difficulties with the deduction. Inspectors do not allow buyers to deduct the VAT that the seller submitted to the simplified tax system. This opinion of officials is contained in letters from the Ministry of Finance of Russia dated May 16, 2011 No. 03-07-11/126 and the Federal Tax Service of Russia dated May 6, 2008 No. 03-1-03/1925). If your client accepts VAT as a deduction, the inspectors will charge arrears, penalties and a fine. The client will only be able to defend such a deduction in court. Judges allow the deduction of VAT on a simplified invoice if the document contains all the required details (clause 5 of Article 169 of the Tax Code of the Russian Federation). The decision in favor of the taxpayer was made by the Constitutional Court of the Russian Federation in its ruling dated March 29, 2016 No. 460-O.