Indirect taxes: types, payment, declaration

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

The state budget is a set of funds by which the state apparatus of the country is formed from taxes, which can be both direct (assigned to the citizens of the country) and indirect (assigned to the citizens of the country through an intermediary - an entrepreneur).

The need to divide taxes into two categories: direct and indirect is related to their classification according to the method of collection. The existing system of taxation in our country combines the possibility of using both direct and indirect options. In this case, direct fees are charged directly from the income (property) received. They are defined by percentage and basis for calculation. Indirect taxes are levied on goods and services sold. The one who sells goods and services (entrepreneur) includes them in the price of products, and then, having received income from the sale, returns this share to the state in the form of this fee.

It turns out that the studied category of taxes is paid at the expense of the buyer of products, and the seller onlyintermediary between the end user and the state. However, the demand for the timeliness and volume of indirect fees comes from the manufacturer. These taxes are related specifically to the consumption of products and services.

Concept

The category of taxes under study includes those that are set as a surcharge on top of the cost of goods (products).

Indirect taxes are such because they are levied not from the manufacturer, but from the final buyer of the product. They allow you to significantly replenish the state budget. They are actively used in relation to mass-market products.

General Properties

The fact that VAT and excises belong to the same category is determined by the following points:

• The ability to influence the increase or decrease in the production of goods.
• It is a price regulating factor for goods.
• Affects people's incomes.
• Generate budget revenues.

Differences between direct and indirect

The table below summarizes the differences between the two categories of taxes.

Factor	Straight	Indirect
Tax bearer	Payer	End consumer
Communication with the state	Direct	Through seller (manufacturer)
Object of taxation	Property and income	Sales goods (products, services)
Calculations	Complex	Simple
Collection in the country	High	Low
Role in price	Priced at production stage	Price on sale
Openness	Open	Closed

VAT: characteristics

The main types of indirect taxes include:

• value added tax (VAT);
• excises.

VAT in recent years provides approximately 30-35% of the total budget revenue in our country. VAT refers to the federal level. The main feature is that this tax is not imposed on the entire cost of production, but only its added part, which occurs at different stages of production.

Most goods in our country are subject to VAT. However, the following products and services do not belong to this category:

• medical supplies;
• care services;
• preschool services;
• food in school and medical canteens;
• archiving services;
• transportation of passengers in the city (settlement);
• funeral services, etc.

This list is presented in more detail in paragraph 3 of Art. 149 of the Tax Code of the Russian Federation.

If a company works with products (services) that are both taxable and not taxed, then accounting is kept separately. Separate accounting is also applicable at different VAT rates. Possible rates: 0, 10 and 18%.

The 0% rate is considered preferential and applicable to various export transactions, international transportation, space industry, gas and oil transportation, etc.

10% rate applies to the following product groups:

• a range of products (sugar, s alt, bread, flour, etc.);
• baby products;
• medical;
• printing and periodicals;
• air transportation;
• acquisition of livestock for breeding, etc.

Other goods not included in these lists are sold at a rate of 18%. If a company received income below 2,000,000 rubles for the quarter, then it has the right to apply to the authorities for exemption from VAT.

VAT has its advantages and disadvantages in use.

Main benefits of VAT:

• possibility of deducting input VAT;
• developed network of partnerships with those who are the largest VAT payers in the country.

Main flaws:

• significant amounts paid by businesses;
• frequent inspections by the tax authorities.

Excise tax

To indirecttaxes include excise.

Initially, this fee was supposed to be imposed only on goods, the demand for which adversely affects the he alth of buyers (for example, alcoholic beverages and tobacco). With the help of excises, the state aims to reduce the consumption of these goods. A separate category is luxury goods, which are also subject to excise taxes.

Today, the list of goods subject to excises is impressive:

• alcoholic products;
• tobacco products;
• cars;
• motorcycles;
• gasoline and diesel;
• engine oils;
• kerosene for aircraft as fuel;
• natural gas;
• furnace fuel.

Tax rates for excises are specified in art. 193 of the Tax Code of the Russian Federation. At present, such rates are determined until 2020. Excises are calculated according to the tax base and rate for each product. The total amount is calculated at the end of the month.

Among the main benefits of excise taxation are:

• the moment of tax payment coincides with the moment of sale of goods;
• evasion is hard enough;
• The amount of tax is transferred even if there is no profit.

VAT calculation method

Indirect taxes with calculation examples (VAT) are presented below.

VAT=NBC / 100, where NB is the tax base, t.r.

С – rate, %.

VAT calculation also means that you need to allocate the tax that is included in the final amount. We useformulas:

VAT=C / 1.180.18 - at a rate of 18%, VAT=C / 1, 10, 1 - at a rate of 10%.

where C is the amount that includes VAT, t.r.

An example of VAT calculation is shown below.

Let's take the company Orion LLC. It sells a batch of products in the amount of 50 thousand units at a price of 100 rubles. The rate used is 18%. Tax is not included in the price. Calculation Method:

determine the cost of the batch excluding VAT:

10050,000=5,000,000 rubles;

define VAT:

5,000,00018 / 100=900,000 rubles;

determine the amount with VAT:

5,000,000 + 900,000=RUB 5,900,000;

another option for calculating the final amount:

5,000,0001, 18=5,900,000 rubles.

In the documents, the accountant indicates the values:

• price without VAT – 5,000,000 rubles;
• VAT 18% - 900,000 rubles;
• price with VAT – 5,900,000 rubles.

Example of excise tax calculation

There are several formulas for calculating this tax:

application of fixed rates:

A=BSA, where B is the volume of revenue from excisable goods, units

CA – excise rate, rub.

application of interest rates (ad valorem):

A=St Sack / 100%, where St is the cost of excisable goods sold, i.e.;

Sak - excise rate in % of the value of the goods;

combined bets:

A=BCA + StSak / 100%.

Income tax andindirect taxes

Direct taxes refer to property and income that is owned by the taxpayer. Such taxes, as direct, replenish the country's budget in a significant way. However, there is one drawback: it is possible to conceal part of the calculation base, including taxes. This state of affairs leads to the destabilization of the country's financial system.

Income tax and indirect taxes have a certain degree of correlation. While the studied category of fees is formed on the principle of a premium on the cost of a product or service. Sellers include a share of such taxes in the goods sold. Then they give it to the state. This share does not apply to the company's profits and is not subject to income tax.

Importation of goods and taxation

Entering goods and paying indirect taxes is an option for calculation and payment to the country whose customs authority releases the goods.

• When importing goods from countries not participating in the Customs Union, this tax must be paid in Russia.
• And when importing from the EAEU countries, the tax must be transferred to the country where the owner of the goods is registered. The EAEU includes such countries as Belarus, Russia, Kazakhstan, Kyrgyzstan, Armenia.

Payment procedure

The procedure for paying indirect taxes implies the responsibility of the declarant, that is, the buyer.

The following points should be taken into account:

• availability of VAT exemption;
• applied customs procedure when importing valuables;
• VAT rate;
• calculation formula for tax.

VAT exemption cases identified. In Art. 150 of the Tax Code of the Russian Federation there is a list of goods, the import of which does not require VAT.

The procedure for paying indirect taxes also depends on the customs procedure under which goods are subject to import.

The customs procedure is influenced by the purpose of the release of goods in the Russian Federation, which is reflected in the table below.

Customs procedure	Paying taxes
Transit and processing, storage, re-export, customs free zone, duty-free trade	No payouts
Temporary import, processing	No payout or limited payout
Imported or processed for consumption	Full payouts

Reports are submitted for indirect taxes to the local IFTS, where the buyer is registered.

It is necessary to determine VAT on the day the goods are accepted for accounting in accordance with the accompanying documentation. If the amounts are indicated in a foreign currency, then they are converted into rubles at the current exchange rate of the Central Bank of the Russian Federation.

The tax payment deadline is until the 20th day inclusive of the month following the month in which the goods arrived. Together with the payment, a part of the documents is prepared:

• VAT tax return;
• indirect tax statement;
• bank statement;
• shipping documentation;
• contract from supplier;
• other.

Declaration

The deadlines for submitting a declaration on indirect taxes are specified in paragraph 20 of the Treaty on the Eurasian Economic Union dated May 29, 2014.

This protocol states that the declaration must be submitted by the 20th day of the month following the reporting month. The reporting month is:

• month of arrival of imported goods;
• The month in which the lease payment is due in accordance with the terms of the contract.

In addition to the declaration, taxpayers must provide a number of documents.

The indirect tax declaration consists of a standard cover page and three sections.

The first one includes VAT data on imported goods. Sections 2 and 3 contain information on excises, they are filled in only when necessary. That is, if the company does not pay excises, then it is only necessary to transfer the title page and the first section.

The same section contains the amount of VAT payable. In this case, all VAT is divided depending on the type of goods. Line 030.

The second section contains information about all excisable goods, except for alcohol products. Excises are recorded by type of excisable goods. In this section, for each type of goods, information is given about the country from which the goods are shipped.

The third section contains information about alcohol.

Payment documentation

The declaration of importation and payment of indirect taxes is important documentation for:

• goods,issued by importers from the EAEU countries;
• certificate of the fact of importation of goods into the Russian Federation from the territory of a member state in the EAEU and payment of taxes;
• providing to the tax authorities simultaneously with the declaration of taxes and other relevant documents.

The main purpose of the declaration is to confirm that these taxes have been paid and exchange this information with the tax authorities of the country from which the goods were imported.

The application contains three sections and one attachment:

• In the first section, information is entered by the buyer or intermediary (if, according to the laws of the state into which the goods are imported, these persons pay indirect taxes).
• The second section is intended for posting a record of registration of an application with the tax authority.
• The third section is not always filled out - only in certain cases listed in the fourth paragraph of the rules for filling out an application for indirect taxes.

Conclusion

In the case of indirect taxation, the seller of a good or service becomes an agent of monetary relations, acting as an intermediary between the state and the payer (the end consumer of the product).

Indirect taxes are characterized by ease of collection and payment to the budget. Since these taxes are included in the price of goods and services, they are invisible and psychologically easier to perceive by payers.

The benefits of these taxes are mainly related to their role in the formation of budget revenues.