IP VAT: tax exemption

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

Due to the fact that the Government of the Russian Federation has recently adopted several programs for the development of small and medium-sized businesses, there are much more questions about the activities of individual entrepreneurs, the necessary documents and other nuances. A separate topic is the payment of IP VAT. Value added tax is a deduction from the surcharge on the price of goods. Today, the rate on it is 18%, and only in some cases it can be reduced to 10%.

It is important to note that IP with VAT may not pay tax if they apply the following taxation systems:

- USN;

- ESHN;

- UTII.

But remember, if you issue an invoice using one of these systems, you will be required to pay all VAT on this transaction.

Let's talk about the most popular question for IP lately. VAT, according to Art. 145 of the Tax Code of the Russian Federation, you can not pay if the following conditions are met:

Revenue for 3 calendar months does not exceed 2 million rubles

Disputes about how to calculate this amount have been going on for a long time. in arbitration practice there was no precedent on this topic for a long time. At the end of 2012, the Supreme Arbitration Court finally setpoint in question. Previously, the total revenue of the entire company was considered, even the part that in most cases was not taxed. Now, only those amounts of which VAT must be paid are taken into account.

2. According to the Tax Code of the Russian Federation, you can be exempt from paying IP VAT if you do not sell excisable goods. According to the decision of the Constitutional Court of the Russian Federation, you can be exempted from this payment, even if you have goods of both categories. But with this option, it is necessary to keep separate records of all operations of both excisable and non-excisable products. Only if these conditions are met will you be released from payment.

It must be remembered that an individual entrepreneur who is exempt from VAT must return to the state the amount of this tax previously deducted for services, goods or work rendered.

Many newcomers to the business are wondering, "What benefits will I get from tax exemption?" The biggest plus, of course, will be an increase in your revenue by 18%, although there are pitfalls here too. The fact is that it may simply not be profitable for companies that work with VAT to cooperate with you due to the lack of the ability to make deductions.

If you decide to get rid of the tax, then you need to remember the following rules:

1) It is necessary to notify the tax authority at the place of registration in the form established by the Ministry of Finance of Russia. Attach documents confirming your rights to it.

2) Such documents are: statements from the balance sheet, sales books and books of accounting for expenses and income, as well ascopies of issued invoices.

3) For individual entrepreneurs on the simplified tax system or OSNO, you only need to provide a book of accounting for expenses and income.

4) Documents are submitted no later than the 20th day of the month from which VAT exemption is allowed.

It is important to remember that when switching to such a taxation system, you will be required to work on it for at least a year. And only then can you refuse it yourself. There is, of course, another way: you can simply violate one of the conditions for exemption, but in addition to being no longer allowed to receive this benefit, you will also be subject to a hefty fine.