For Dummies: VAT (Value Added Tax). Tax return, tax rates and VAT refund procedure

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

Telling about what value-added tax (VAT) is is not the most difficult task, if you do not go into subtleties. Elementary knowledge on this issue will not be superfluous not only for future accountants and economists, but also for people who are far from such specific areas of activity.

Economic content of VAT

VAT is one of the taxes in Russia that has a significant impact on the formation of the state budget. The essence of value added tax fully reflects its name. That is, it is from the added value, by which the manufacturer increased the value of the original product (raw material or semi-finished product), that it is accrued.

For "dummies": VAT is a tax that is charged and paid by manufacturing enterprises, wholesale and retail trade organizations, as well as individual entrepreneurs. In practice, its size is determined as the product of the bet by the difference betweenproceeds received from the sale of own products (goods, services) and the amount of costs that were used for its manufacture. Simply put, that part of the product that the manufacturer or seller has “added” to the original product (in fact, this is a newly created value) is the taxable base. This type of tax is indirect, as it is included in the cost of the product. Ultimately, it is paid by the buyer, and formally (and practically) it is paid by the owners and manufacturers of the goods.

Objects of taxation

Objects for VAT calculation are proceeds from the sale of created products, works and services performed, as well as:

- the cost of ownership of goods (works, services) in case of their gratuitous transfer;

- the cost of construction and installation work carried out for their own needs;

- the cost of imported goods, as well as goods (works, services), the transfer of which was carried out on the territory of the Russian Federation (it is not included in the taxable income tax base).

VAT payers

Article 143 of the Tax Code of the Russian Federation establishes that VAT payers are legal entities (Russian and foreign), as well as individual entrepreneurs who are tax registered. In addition, the payers of this tax include persons who move goods and services across the borders of the Customs Union, but only if the customs legislation establishes the obligation to pay it.

VAT tax rates

In Russia, VAT tax rates are provided in 3 options:

1. 0 %.
2. 10%.
3. 18%.

The amount of tax charged is determined by the product of the interest rate divided by 100 and the taxable base.

Non-operating turnovers (deposit operations for the formation of authorized capital, transfer of fixed assets and property of the enterprise to the successor, and others), transactions for the sale of land plots and many others fixed by law are not recognized as objects for the calculation of this tax.

18% VAT rate

Until 2009, the 20% VAT rate was applied to the largest number of transactions. The current rate is 18%. To calculate VAT, it is necessary to calculate the product of the taxable base and the interest rate divided by 100. Even simpler: when determining (for "dummies") VAT, the tax base is multiplied by the tax rate coefficient - 0.18 (18% / 100 \u003d 0.18). Thus, the amount of VAT is included in the price of goods, works and services, falling on the shoulders of consumers.

For example, if the price of goods without VAT is 1000 rubles, the rate corresponding to this type of goods is 18%, then the calculation is simple:

VAT=PRICE X 18/ 100=PRICE X 0, 18.

T. e. VAT \u003d 1000 X 0, 18 \u003d 180 (rubles).

As a result, the selling price of goods is the calculated cost of the product with VAT.

Reduced VAT rate

10% VAT rate applies to a certain group of food products that are considered socially significant for the population of the state. These products include milkand their derivatives, many cereals, sugar, s alt, seafood, fish and meat products, as well as some types of products for children and diabetics.

Zero VAT rate, features of its application

A 0% rate applies to goods (works and services) related to space activities, sales, mining and production of precious metals. In addition, a significant volume of transactions are transactions for the movement of goods across the border, during the execution of which it is necessary to comply with customs procedures. Zero VAT rate requires documentary evidence of export, which is provided to the tax authorities. Document package includes:

1. Agreement (or contract) of a taxpayer for the sale of goods to a foreign person outside the Russian Federation or the Customs Union.
2. Customs declaration for the export of products with a mandatory mark of the Russian customs about the place and date of departure of the goods. You can submit documents for transportation and support, as well as other confirmation of the export of any product outside the borders of the Russian Federation.

If within 180 days from the date of movement of goods across the border, a complete package of necessary documents is not executed and submitted to the tax authority, then the payer is obliged to accrue and pay VAT at 18% (or 10%) rate. After the final collection of the customs confirmation, it will be possible to return the paid tax or offset it.

Using the Estimated Rate

Estimated rate is used for prepayment and in some other cases. For dummies, VAT at this rate is calculatedwhen it is necessary to separate the tax “sitting” in it from the total cost of the goods. This action is performed according to the simplest formulas, depending on the type of VAT rate applied.

At 10% VAT rate calculated is 10% / 110%.

At 18% rate - 18% / 118%.

Filling out the VAT tax return and the deadlines for its submission

At the initial stage of preparing for the submission of tax returns, the work of an accountant is focused on determining the base on which the amount of tax is subsequently charged. Completing a VAT return begins with the title page. At the same time, it is very important to carefully and carefully enter all the required details (names, codes, types, etc.). On all pages, the date and signature of the head (or individual entrepreneur) are provided, which must be stamped on the title page. The declaration must be submitted to the tax office at the place of registration, but no later than the 20th day of the month following the reporting quarter. In the same terms, its payment is also established (with a quarterly deadline). Thus, the payment and accrual of tax for the 1st quarter of 2014 had to be made before April 20 of the current year.

Tax calculation

For "dummies": VAT payable is calculated in several stages.

1. Determining the tax base.
2. VAT calculation.
3. Determining the amount of tax deductions.
4. The difference between the accrued and paid tax (deduction) is the amount of VAT payable.

Bin case of excess of deductions over the accrued amounts, the taxpayer has the right to reimbursement of this difference upon a written application and after the decision is made, but more on that later.

Tax deductions

Special attention should be paid to deductions, that is, the amount of VAT that is presented by suppliers, and is also paid at customs when exporting goods. It is very important that the tax accepted for deduction is directly related to the accrued turnover. Simply put, if VAT is charged on the turnover for the sale of goods "A", then all purchases related to this product are taken into account. Confirmation of the right of deduction is certified by invoices received from suppliers, as well as documents on payment of tax amounts when crossing the border. VAT in them is allocated in a separate line. Such invoices are filed in a separate folder, and the turnover for each product is recorded in the purchase book in the approved form.

During tax audits, quite often there are questions about the improper filling of required fields, the indication of incorrect details, as well as the absence of signatures of authorized persons. As a rule, in such a situation, IFTS employees cancel the corresponding amounts of deductions, which leads to additional VAT and pen alties.

Electronic submission of declarations

From 2014, VAT returns must be submitted electronically only. There are only a few exceptions related to special tax regimes.

Refund conditionsVAT

Satisfaction of the rights of payers to reimbursement of the amount of tax paid is made on the basis of a desk audit carried out by the tax authorities. The declarative procedure for VAT refunds occurs in relation to a few payers who meet the following conditions:

- the total amount of taxes paid (VAT, excises, income and production taxes) must be at least 10 billion rubles. for the 3 calendar years prior to the year in which the claim was made;

- the payer received a bank guarantee.

The application of this procedure provides for one more condition: the payer must be registered with the tax authorities of the Russian Federation for at least 3 years before filing a tax return for tax reimbursement.

Reimbursement policy

For VAT refund, the taxpayer must submit to the tax authority a written application for the refund of tax amounts. These amounts can be returned to the current account indicated in the application or offset against other tax payments (if there are debts on them). Within 5 working days, the inspection makes a decision. VAT refunds are made within the same period in the amount specified in the decision. In case of untimely receipt of funds to the current account, the taxpayer has the right to receive interest for the use of this money from the tax authorities (from the budget).

Desk check

To check the validity of the returned amounts, the tax office conducts a desk audit within 3 months. If athe facts of violations are not established, then within 7 days after the completion of the check, the person being checked is informed in writing about the legitimacy of the set-off.

In case of detection of violations of the current Russian legislation, the inspection draws up an inspection report, the results of which make a decision regarding the taxpayer (either on refusal to attract, or to hold liable). In addition, the violator is required to return excessively received amounts of VAT and interest for the use of these funds. If the specified amount is not returned, the obligation to return it to the budget of the Russian Federation rests with the bank that issued the guarantee. Otherwise, the tax authorities write off the necessary funds in an indisputable manner.

Some of the provisions relating to the calculation and payment of VAT are quite difficult for a momentary understanding, but thoughtful awareness gives a result. A particular difficulty in the perception of this tax is created by specific terms and regular changes in the legislation of the Russian Federation.