VAT 10 percent: list of goods and services

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

VAT is one of the most significant taxes in the Russian Federation. It replenishes the federal budget of the country. VAT is considered an indirect tax. It falls on the shoulders of end customers. Those. the more intermediaries (more precisely, the intermediary price) between the producer and the consumer, the higher the income of the state. No one thought, maybe that's why the state is so actively eliminating "outbidding"? But this is a completely different topic. We will talk in more detail about 10 percent VAT (the list of goods subject to this rate). But first, how the tax came about.

The history of the tax in Russia

VAT has been in force in our country since 1992. Prior to this, sales tax was in effect.

But such a measure legally exempted many subjects from paying. Then Yegor Gaidar's government introduced VAT.

It was then regulated by a separate Federal Law, which was called: “On value added tax.”

In 2000, the law "merged" into the Tax Code. The basis of the collection was taken fromUSA. But at the moment, almost all countries apply a similar principle of its calculation. Only the rates differ.

Was it good before?

For those who like to criticize modern "exorbitant extortions", as well as for "sentimentalists" who say "how wonderful it used to be", let's say that from 1992 to 1993 the tax was 28% (VAT rate of 10% looks fantastic against this background). From 1994 to 2004, the rate was reduced to 20%.

Of course, one can object that "there were no other taxes." But at this time, personal income tax was also reduced to 13%. At that time, "everyone was coming out of the shadows." The state lowered the rates because the majority preferred not to pay anything. The impotence of law enforcement and tax authorities, coupled with high stakes, explained the reason for this behavior. Maybe the "admirers of the past" remembered this, paying absolutely no dues.

Where did VAT originate?

For the first time such a tax appeared in France in 1942 (war is war, and private property is above all). But he did not take root, because he had many shortcomings.

It was a kind of sales tax. In 1948, French economists modified it. They created accrual principles that appealed to the whole world (or rather, the authorities in all countries, because who likes to pay taxes?).

What is VAT

VAT is a type of indirect tax on goods or services at the time of sale. It is levied at all stages of production and ultimately falls on the consumer.

T. That is, the higher the “appetites” of producers, the more profitable for the state. Example, you were sold a chicken in a store. Its cost was 50 rubles. And the buyer paid 200 rubles for it. A percentage of 150 rubles (200-50) will have to be paid in the form of value added tax. If the seller were "generous" and the goods "for what he took, for that he gave", i.e. did not add anything to the original price, then the state would not receive a penny from such a transaction.

It doesn't matter if the company is making a profit or operating at a loss. VAT is not cancelled. Hence the conclusion: the more they cheat, the better for the federal budget. Let's think about whether the state really needs to limit the arbitrariness of intermediaries. Under such a system, on the contrary, their growth is only beneficial to the budget. Now let's go directly to the tax rates, which establishes the amended Tax Code (2015 edition).

How much do we pay the government?

How to determine how much the government will take from the price increase? The 2015 tax code provides for three rates: 18% (standard), 10% (preferential) and 0% (customs). VAT rates of 10 and 18% are "domestic".

They apply to goods and services within the country only. If they are exported outside, then the tax is not charged. If VAT is paid when purchasing goods and reselling them abroad, the tax paid is refundable.

VAT rate 10 percent: list of goods and services

18 percent is the regular VAT rate. However, there is a listgoods, which reduces it to 10. Many entrepreneurs ask the question: "VAT 10% in what cases is applied?". We will try to answer it.

VAT rate of 10 percent list of goods and services suggests the following:

• Foodstuffs.
• Domestic air transportation.
• Baby products.
• Some medications.
• Periodicals.

The list of all goods was approved by Government Decree No. 908 of December 31, 2004. It is in this document that the entire list is indicated, which falls under 10 percent VAT. The (short) list is given below:

• Milk and dairy products.
• Meat in live weight.
• Eggs.
• Cooking fats, vegetable oil.
• S alt.
• Flour and pasta.
• Vegetables.
• Baby and diabetic nutrition, etc.

My product was not found

If your product was not on our list, and you have a question: "VAT 10% in what cases (or rather, to what goods and services) does it apply?", you need to look at the Resolution. We have already indicated the number and date. It has a complete list. As a rule, these are all socially significant groups of goods that are in high demand among citizens.

10 percent VAT rate for air freight

Due to the economic crisis, legislators supported the request of air carriers to reduce VAT to a "preferential" 10 percent. On April 1, 2015, the Federation Council approvedthis bill and approved the benefit from July 2015 to December 2017. Most likely, this period will be extended if the economic situation does not improve.

Everyone is unhappy

This law did not satisfy anyone. The government due to the fact that it began to receive less money with a budget deficit. Air carriers say this will not solve the industry's problem.

Head of Aeroflot Vitaly Savelyev expressed dissatisfaction with this. He believes that in the current situation it is necessary to completely remove VAT from air carriers on domestic flights. It turns out that it is almost cheaper to get from Vladivostok to Moscow by “round the world trip”.

Crimea is ours?

An interesting situation concerns the Crimea and Sevastopol. Referendum, accession - we all know this very well. But as far as legislation is concerned, everything is not so clear-cut. Here are the internal regulatory legal acts that make you think - is Crimea ours? Russian?

This refers to the law amending the Tax Code in 2015, according to which domestic air travel is subject to a preferential tax of 10%. The same legal act contains the wording, “except for trips to the Crimea and Sevastopol.”

Apparently, Russian companies are afraid of possible economic sanctions "from recognizing" Crimea as Russian territory. To do this, such regulatory legal acts on tariffs, taxes, etc. are adopted. Companies and domestic laws do not violate, and do not fall under international sanctions.

10+10=28?

In the section VAT rate 10 percent:list of goods and services” we said that there is a category of socially significant goods that have a VAT exemption. A complete list of codes and names is prescribed in the Decree of the Government of the Russian Federation of December 31, 2004 No. 908.

But what to do when the products are "at the junction" of two items. In addition, situations appear paradoxical when the products sold consist entirely of “preferential” goods, but fall under 18%.

For example, pizza. It may consist entirely of those products that fall under the exemption. Flour, eggs, meat, cheese, etc. But the “combination” of these “social” products into a “delicacy” pizza is taxed “to the full.”

This provision is explained by the letters of the Ministry of Finance dated September 10, 2010 No. 03-07-14 / 63 and the Federal Tax Service for Moscow dated March 16, 2005 No. goods that are included in the list of the Government. The rest fall under 18%.

This list includes the category "pies, pies, donuts", as well as meat, various cereals, vegetables. But there is no such thing as empanadas or pizza. Here, officials apply the principle "what is not allowed is prohibited." They believe stuffed pancakes should pay the full 18 percent.

Pizza or Italian pie

But there is one "loophole". If you want to produce pizza and get VAT benefits for it, then you can sell it as an "Italian" pie. It is enough to have all certificates for conformity and quality of products. Replaceno one will interfere with the name of the product from “pizza” to “pie”, the law does not establish “what should be” in each of these products. The main thing is to be sure to indicate the composition of the product.

Arbitration court on the side of entrepreneurs

In addition, entrepreneurs use code classifiers that mean "baked goods" for pizza, as well as "meat and meat products" for stuffed meat pancakes. Both of these codes "authorize" the use of 10 percent.

Such a "trick" can lead to arbitration. The tax authorities dispute the rate of 10 percent, insisting on 18. But arbitration practice is often on the side of entrepreneurs, because according to GOST “Catering Services. Terms and definitions”, approved by the order of the State Standard of Russia dated November 30, 2010, culinary products include pies, belyashi, pizza. And these products contain various fillings.