Customs VAT: types, calculation of the amount and methods of return

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

There are several types of customs payments that play a huge role in shaping the country's economy. All imports and exports pass through this state body, which means they are subject to certain payments. Today we will consider customs VAT.

What is this?

Almost all trade transactions require customs payments to be made to certain government agencies. This is done in order for the goods to be allowed into the territory of our country or released from the country.

Following, we can say that both individuals and individuals are required to make customs payments when exporting or importing certain goods. This is spelled out in the Customs Code, Article 4. In our country, such payments are used to form and replenish the budget.

The duties levied by the state body under study are not only customs VAT, but also other fees and duties. All of them are considered non-tariff instruments of state regulation of foreign trade.

A complete list of all customs payments can be found in the Customs Code, articles 70 and 3. In addition, there is an Agreement on the procedure for payment andcalculation of customs payments in the participating countries. It includes:

1. Export customs duties.
2. Import duties.
3. Indirect taxes.
4. Customs fees.
5. Anti-dumping, special and countervailing duties. They are established on the basis of international treaties between member countries of the Customs Union (CU). As well as the laws of these countries.

Indirect taxes include customs VAT (value added tax), excises that are levied when goods are imported into the territory of the Customs Union.

What about payments?

Having de alt with the concept of "customs VAT", it is important to study other types of similar payments. Let's list:

1. Peni.
2. Funds for the implementation of confiscations.
3. Interest that appears if a person is granted an installment plan or a deferral of payment of customs duties.
4. Advance payments against future payments.
5. Money paid by importers to customs authorities for issuing excise stamps.
6. Ensure the payment of customs taxes or duties.

Payment features

Before analyzing the customs VAT on import, you need to decide what functions all such payments have. This is:

1. Fiscal. With the help of payments, the revenue part of the state budget is replenished.
2. Regulating. Appropriate services prevent the unwanted export of goods whose prices are higher in the world than in the country.
3. Protective. The state is trying to support domestic producers and protect them from foreign competitors.
4. Trade and political. The country's government is trying to protect certain sectors of the national economy from competition with foreign manufacturers through the created price barrier.

As you can see, customs VAT on imports was introduced just to help domestic producers develop and grow.

Signs of payments

To understand what customs payments are, in particular, VAT, you also need to understand their features. More about them below.

All customs-related fees must be paid. If we talk about the procedure and form of calculation of payments, then this moment is regulated by the Customs legislation, the Tax Code of our country, as well as the Customs Union. It is important to remember that the special subject of such payments is the customs authority, which at a certain time and in a certain place is responsible for customs operations. Any customs payments go to the budget of our country.

Indirect taxes

Of all customs indirect taxes, value added tax can be distinguished. We will talk about it in more detail, but first we will give a definition of this type of tax.

So, indirect taxes are taxes on services and goods, which are set as a surcharge on a tariff or price. What does it mean? Enterprises that provide services or produce some goods sell their products at a tariff (price) already taking into account the surcharge. They arecontribute to the state budget a certain amount from the profits. It can be said that manufacturers sort of collect taxes from the population, while buyers pay these taxes.

Another name for indirect taxes is unconditional. This is because they do not depend on the income of the taxpayer and are taken regardless of profit or performance.

If indirect taxes are increased, then such a measure may lead to the fact that the population will reduce the consumption of products or services.

Why are we talking about indirect taxes? Yes, because the VAT of the Customs Union also applies to them.

So, taxes of this type have their pros and cons. Let's take a look at them.

Tax Benefits

Customs Union VAT and any other indirect taxes have a number of advantages over other payments:

1. These are the most beneficial taxes for the country, because there is no direct relationship between taxes and the results of the enterprise or organization.
2. Indirect taxes are not accompanied by arrears, because they are included in the cost of goods and services. It turns out that if a person bought something, then they have already paid the tax.

It seems that we heard only good things, are there really no minuses? Let's take a look at them now.

Cons of tax

VAT customs duties also have disadvantages, including:

1. The government spends a lot of money to control taxation.
2. Inverse proportionality to solvency.
3. The fiscal nature of the indirect tax is contrary to the interests of economic development.

As you can see,Customs VAT payments are not so good, if you look.

What is VAT

VAT is called an indirect tax, a form of withdrawal of part of the value added to the state budget. It is created at any stage of the production process of goods, services and works and is paid into the budget upon sale.

If we compare the customs payments of VAT, sales tax and turnover tax, then the former has much more advantages. For example, it covers the turnover at each stage. When the tax base expands, revenue rates can also increase, and such a tax is much more effective than the other two listed.

The tax brings less encumbrance to each producer, because only the increase in value is taxed. It turns out that the severity is distributed throughout the entire commodity circulation chain, that is, all participants in market relations are in an equal position in relation to each other.

The form of taxation is quite simple, because a single collection mechanism has been established for all taxpayers in the country. This is very convenient for the state, because it will not be possible to evade such a tax, which means that everyone will pay it.

Who pays VAT

Customs fees - taxes paid:

1. Persons who move goods across the customs border of the relevant service.
2. Organizations.

Persons who are required to pay VAT in connection with the movement of goods across the border are specified in Russian legislation and the legislation of the Customs Union.

Organizations are calledlegal entities that are formed in accordance with our laws. This also includes legal entities of foreign origin, companies or other corporate entities that have civil legal capacity and are organized in accordance with the laws of a foreign country. By the way, international branches, organizations and their representative offices in our country also belong to organizations.

VAT performs not only a regulatory function, but also a fiscal one. This is due to the fact that the tax significantly replenishes the budget through a stable tax base and ease of collection.

The rate of customs VAT is established by law. All goods that are imported into the country are taxed at the same rates that are used domestically.

It is interesting that some indirect taxes are divided into groups: some are levied on consumer goods, others on second-order necessities, and others on luxury goods. But VAT is levied on all these items. Scholars sometimes refer to VAT as a universal excise tax. Because it broadly covers all consumer works, goods and services.

Another difference between VAT and excise customs duties is the effect of the latter in certain areas of public life.

Essence

It just so happened that in the tax system of our country the main role is assigned to indirect taxes. VAT is a federal tax, due to which at least 35% of all income comes to the budget. In addition, VAT also affectspricing and consumption patterns.

In our country, the tax was introduced in 1992. It replaced the sales and turnover tax. To date, the taxation procedure is prescribed in the Tax Code of the Russian Federation, Chapter 21.

Added value is created by living labor, which means that VAT is everywhere where there is living labor. It is noteworthy that living labor is present at every stage of the creation of goods, no matter what it is: the collection of raw materials or trade.

Object

Before talking about the return of customs VAT on imports, you need to understand what is considered the object of taxation. There are only four types of transactions from which you need to pay:

1. Implementation of works, goods or services. Transfer of property rights in Russia.
2. Transfer on the territory of our country of goods, services or works for personal needs.
3. Performing construction and installation work for personal needs.
4. Import of goods into Russian territory.

The farther the goods move inland, the more the producer bears the costs, which means that the value of VAT increases. That is, all organizations and enterprises are tax collectors, but it is paid by an ordinary customer or buyer.

How accrued and paid

As soon as goods are imported into our country, tax authorities and customs authorities begin to control the payment of VAT. This happens because the procedure for accrual and, accordingly, payment is regulated not only by the Customs Code, but also by the Tax Code.

The taxpayer has two options. First - issue a refundcustoms VAT on imports. The second is to take into account in the cost of purchased goods. So that there is no doubt that the tax has been paid, the customs authority must issue an appropriate declaration to the payer. In which payment is confirmed.

Customs VAT calculation

To calculate the tax correctly, you need to look into the Tax Code of our country, namely article 164. Everything is written there regarding those goods that move across the customs border.

When the tax rate is 0%:

1. If the goods were imported in the customs export regime. An important condition is the provision of the necessary documents to the tax service.
2. If supplies are taken out of Russian territory under the customs regime for moving supplies. We are talking about fuels and lubricants, fuel, which is necessary for the full functioning of sea, air and mixed type ships.

In what cases is VAT calculation of customs payments made at a rate of 10%? This tax is subject to:

1. Food products, the list is established in the Tax Code of our country. It, for example, includes vegetable oil, vegetables, sugar, s alt, and more.
2. Children's products, which are also listed in the Tax Code.
3. Periodicals. This does not include publications of an erotic or advertising nature, but only those related to education, culture and science, book products.
4. Medical goods of foreign and domestic production according to the list of codes for product types, which was establishedThe government of our country.

All other goods are subject to 20% tax. It turns out that for any goods, except for tax-exempt groups, customs duties of VAT can be applied at a rate of 10 to 20%.

Formulas for calculation

To correctly calculate the amount of tax, you must use special formulas.

For goods that are subject to customs excises and duties, the following formula should be applied: Snds=(St + Ps + Ac) x N. C - VAT amount, St - customs value of imported products, Ps - amount of import customs duty, Ac - excise amount, H - VAT rate as a percentage.

If goods are subject to customs duties, but not subject to excise taxes, then the calculation formula will be different: SNDs=(St + Ac) x N. All designations remain unchanged.

The amount of VAT is paid at the place of registration of the taxpayer in the tax service. So it is written in Article 174 of the Tax Code, and so it must be done. By the way, the same rule also works in a situation where the goods are exported outside the customs territory of the Russian Federation.

When goods are imported into Russia, VAT must be paid no later than fifteen days from the moment the goods are presented to the customs authority. This is important!

Payment of tax, as well as the return of customs VAT, is made in the customs authority in which customs clearance was carried out. If we are talking about goods that are sent in international mail, then the tax is already paidstate communication company. The latter is a kind of intermediary, because it subsequently transfers money to the customs authorities.

It is important that the payer can independently choose the currency for making payments. But you need to choose from those that are quoted by a Russian bank. If the payer chooses a foreign currency, then the recalculation will be carried out at the rate that is accepted in Russia and which is valid on the day the VAT customs declaration is accepted. The amount due is usually rounded to the second decimal place.

You can pay VAT both by bank transfer and in cash at the cash desk of the relevant authority. Any bank transfers to the account of the customs authority must be processed as payment orders or other payment documents.

When you don't have to pay

Sometimes there are cases when VAT does not need to be paid during customs clearance. In what situation is the payer exempt from tax? First of all, it is worth saying that this moment is spelled out in the Tax Code of our country. There you can see not only a list of non-taxable goods, but also those goods on which tax is not taken if transactions are made on the territory of our country.

So, VAT is not paid if the customs territory of the Russian Federation is crossed by goods that are transferred as non-excise assistance or assistance. The exemption is applied in accordance with the Instruction on the procedure for customs clearance of goods.

It is important to understand that humanitarian aid or assistance is called gratuitous assistance, which is provided for the provision of social or medicalassistance to low-income segments of the population, or those affected by natural disasters or other emergencies. This also includes the cost of transportation, storage and escort of the specified assistance.

Recipients of such assistance can be the subjects of our country, the state itself, public authorities, individuals and legal entities, local governments.

Donor organizations can be foreign states, their municipalities and federations, foreign and international institutions or non-profit organizations that provide humanitarian assistance.

Attention! Humanitarian aid does not include goods that are subject to excise duty, as well as meat and meat products. The latter is due to the fact that meat is intended only for industrial processing into semi-finished products and so on. Minced fish or meat, mechanically deboned meat, clothes, shoes that have already been in use cannot be considered humanitarian aid. The exception is shoes, clothes and bedding, which are sent to institutions and organizations of social protection, education, he alth care.

Taxation procedure

When exporting goods from the Russian territory, the following taxation procedure is applied:

1. The export of goods in the customs export regime is not taxed.
2. Export of goods outside of Russia in the re-export regime provides for the return of all amounts of tax that was paid when entering the Russian Federation. This is done in the orderprovided by the customs legislation of our country.
3. Placement of goods under the customs regime of a customs, free warehouse or free customs zone for subsequent export of products is not taxed.
4. The export of goods moving across the Russian border is not taxed under the customs regime for the movement of supplies.
5. Export of goods from the customs territory of our country in accordance with other regimes that provide for exemption from VAT or its return.

As for the import of livestock, technological equipment, agricultural machinery on leasing, the tax is paid with an interval. The latter can last until the lessee registers the goods. But the term cannot exceed six months.

Tax deductions

Accounting for customs VAT allows you to return the money spent on tax or reduce the amount of the latter due to tax deductions.

What is deductible? We are talking about the amounts of tax that the taxpayer has already paid when importing products into the customs territory of our country. The rule works for:

1. Products that were purchased for the implementation of transactions that are subject to taxation in accordance with the norms of the Tax Code. The exceptions are those goods in which the amount of tax is already taken into account in their cost.
2. Products purchased for resale.

Deductions are subject to the amount of tax that sellers present to taxpayers - a foreign person. The latter should not be registered with the tax authorities. Tax amountsonly refundable or deductible if the withholding agent has already paid the tax.

Deductions are always made on the basis of documents that confirm the fact of tax payment. The same can be said about the restoration of customs VAT. For these purposes, declarations, reports and other documents provided for by the Tax Code of our country are suitable.

Only tax amounts that the taxpayer actually paid at the time of importation of goods into the Russian customs territory are subject to deductions. An important nuance is that you can get a deduction only after the goods are registered and upon presentation of the required documents.

If all this is done, then the deduction of the tax amount is made in full. If we talk about transactions with 0% VAT, then the deduction will be paid there only after the payer provides the required documents. The list is in Article 165 of the Tax Code of our country.

Conclusion

As you can see, the question requires a very thoughtful study. If it seems to you that after reading the article you began to understand all the nuances of levying VAT, then we hasten to disappoint you - this is not so.

You cannot learn such a difficult topic in fifteen minutes, it will take much longer, perhaps more than one day. Only a thorough study of the subject can guarantee you an understanding of the issue.

Yes, customs taxes and fees are quite hefty, but still, exporters and importers do not have to choose. As for the value added tax, one cannot scold the government here, because this is almost the only taxwhich all Russians pay.

You think that the state budget is spent incorrectly, maybe so, but remember what the territory of our country is. How can you compare the size of France and the whole of Russia and the standard of living in these countries. The state needs to provide free education, medicine, roads, and so on, but where will the funds come from? From the population of the country and this is natural. Therefore, before comparing European countries and ours, remember not only their standard of living, but also their love of taxes. Europeans are accustomed to paying for everything, but for a Russian such a system is new. So draw the right conclusions.