What characteristics do not apply to VAT. Who is a VAT payer? VAT reporting

Today, every customer who purchases a product in a store encounters the abbreviation VAT - it is always indicated on the check. However, despite the popularity of this tax, not many buyers understand what VAT is and who pays it. If you look into the reference book, then the definition will be given there: “value added tax”, but this does not reveal the essence. Therefore, let's try to analyze this topic from A to Z.

So, we have given a definition of what VAT is. Who pays it? First of all, enterprises that sell goods more expensive than the cost of the product. In this case, the tax will be calculated from the difference between the cost of the goods sold and the price of its sale. In other words: sellers pay VAT out of their profits. This is so in theory.

A bit of history

The abbreviation VAT appeared in the 1920s. It was then that VAT appeared instead of sales tax. In accordance with the new law, sellers were exempted from paying multiple and similar taxes, but in Russia it began to operate in 1992.

Today, the rate is 18% on most types of manufactured goods, but there are product categories where VAT on goods is only 10%. This applies to medical and children's products, as well as parts of food. If the product is exported abroad, then it is not taxed.

What is VAT and who pays it?

Considering the above, we can draw the following conclusion. VAT on services and goods is paid by the manufacturer or the company that provides the services. But in reality, the tax falls on the shoulders of ordinary buyers. Of course, VAT is charged on the seller, and the buyer does not submit reports to the tax office, but in fact it is he who makes the payment. One can argue with this, because the seller legally pays the tax, but in fact you do it by buying products in stores.

VAT calculation procedure

When one company orders raw materials from another for the production of a product, the first company pays a certain amount of money. This amount is subject to tax.

Later, the question of what the cost of the manufactured goods will be is decided. This cost is determined by many factors. One of them is the cost of production without VAT. The amount of tax at this stage is also calculated, but it goes to the tax credit.

Then the final cost of the product is calculated, at which it will be available in stores to the buyer. At this stage, the final price of the goods will be formed: the cost of materials + potential profit from the sale + excises, etc. As for the VAT, this tax also goes into the final cost. Manufacturers and sellers take it into account in the cost, but the buyer pays for it.

After the product has been sold and the company has received the money, the profit calculation begins, from which the 18% tax paid by the buyers is deducted. This is approximately how the conditional VAT formula looks like. The final amount of all taxes from the goods sold by the company is called the tax liability.

Calculation example

For a more detailed understanding of what VAT is and who pays it, let's look at a simple example.

Imagine that you decide to start selling winter shoes. The first stage is the search for a wholesale supplier. For example, you spent 100 thousand rubles on the purchase of goods, while buying 10 units of products. That is, one pair of shoes cost 10 thousand rubles. In this case, the price of the purchased goods from the supplier already includes an 18% tax. This tax was paid by the supplier and we when buying. This amount of 18%, which we overpaid for the tax, must be calculated as an input contribution in the future. When buying goods for resale, we need to prove that we have already paid VAT when buying in bulk. As evidence for the tax, you must present an invoice, waybill or check, which will indicate that VAT on goods has already been paid.

When forming the final price for sale in the store, we need to deduct the tax from the purchased products. From this price in the future and you need to calculate the tax. At the final stage, when the final price will be formed taking into account the potential profit, 18% of the tax must be added to the amount received, which will be charged to the buyer.

Formula

Let us denote the known amount by the letter K. We need to calculate the amount of VAT 18% from here. This means that our VAT formula will look like:

VAT = K*18/100

Provided that our spent amount of money is equal to 100 thousand rubles, VAT will be equal to 18,000 rubles (this is 18%).

To calculate the amount with VAT, it is necessary to add to this result the amount known to us - 100,000 rubles. This means that the amount including VAT will be 118,000 rubles.

Calculation of the amount without VAT

Now that we know the amount with tax (Kn), we can calculate K without it. To begin with, let's recall the formula for calculating the amount with VAT - from it you can get the formula for calculating the amount without VAT.

Kn \u003d K + M * K, where M \u003d 18/100

Another version of the formula is also possible: Kn \u003d K * (1 + M).

From this formula, it is easy to subtract the required value of K. The formula will look like:

K \u003d Kn / (1 + M) \u003d Kn / (1 + 0.18) \u003d Kn / 1.18

Now you know what VAT is and how to calculate it.

It is worth noting that working with formulas is very problematic, and to simplify the calculation, there are special calculators, including online ones. With their help, you can accurately calculate the tax by simply entering the initially known parameters. Here is an approximate procedure for calculating VAT.

Types of tax

There are 3 criteria according to which the procedure for calculating VAT is carried out:

1. Zero rate. The tax is not levied on the sale of space goods, as well as on the export of any goods, the transportation of oil and gas, and the export of precious metals. There is a complete list of goods that fall under the zero VAT rate - they are described in Article 164 of the Tax Code of the Russian Federation.
2. Rate 10%. Applies to the sale of food products (vegetables, milk, meat, etc.). This also applies to children's products, medicines and scientific literature.
3. VAT 18%. This is the most common tax, which covers absolutely all goods that are not included in the first two categories.

Note that VAT is levied not only on the direct sale of goods, but also on the import of any product into the territory of the Russian Federation. Works related to the construction of buildings, for which a building contract is not concluded, are also subject to this tax.

Processes that are not subject to this tax

VAT on services is not always the case. For example, when providing work to state enterprises, which will be carried out within the limits of their duties, tax is not levied. Also, it is not charged for investments, when providing funds to non-profit-based companies and when buying and developing state-owned enterprises.

calculation

There are two options according to which VAT can be calculated:

1. Subtraction. The entire amount of proceeds is taxed, and the tax paid at the time of purchase of raw materials is deducted from the amount received.
2. Addition. When the amount of tax is the sum of the value added of each type of product sold.

Most often, the first method of calculating VAT is used because of its simplicity. The fact is that keeping separate records for each type of product sold is quite difficult, although sometimes only this method is appropriate for some companies due to their specific work.

Reporting

So, we have already figured out what VAT is and who pays it. Now you can talk about what kind of reporting you need to provide to the tax.

Reporting must be provided every quarter, and it is filled in a special form. At the same time, the reporting deadlines are strict - until the 25th day of the next month. In case of delays, the company may face fines.

You can also send reports by mail. But at the same time, it must be borne in mind that in this case, the reporting date will be the number that is on the stamp in the registered letter.

For example, if you sent a registered letter on the 20th, and it arrived at the tax office on the 28th, then there will be no penalty in this case, because the 20th number will appear in the stamp.

tax deductions

Tax deductions - this is the amount of payments that was presented for payment by the supplier and on which the amount of tax has already been accrued. Here, too, there are rules that enterprises must follow. The amount of VAT can be accepted for deduction only if three conditions are met:

1. Products that were purchased for sale were already subject to VAT.
2. The received raw materials or products have passed accounting.
3. The enterprise has all the primary documentation, and the invoice is drawn up in accordance with all the rules.

If these conditions are met by the company, then after the tax period the company can deduct the amount of VAT, but only if the products were already subject to VAT.

What is an invoice?

This document contains information about the price of the goods without VAT and the total cost including VAT. This document must be provided by the supplier, and it must be filed with a special accounting journal and noted in the sales book.

The main difficulty in maintaining an invoice lies in the fact that the obligation to issue it lies more with the counterparty with whom the taxpayer cooperates. And if he fills in something incorrectly, then the inspector, during the check, can cancel the deductions and additionally charge VAT. Therefore, a counterparty's mistake can result in additional expenses for the taxpayer. So, you need to require accurate filling of documents from the supplier.

Conclusion

So, the main conclusions to be drawn from this article:

1. The buyer pays VAT in practice, although in theory it is assumed that it is on the shoulders of the seller.
2. It is quite difficult to calculate VAT without specialized tools. Therefore, ideally, you should use calculators for the correct calculation of tax and maintain a VAT database. But the principle of calculation must be understood.
3. Some services do not charge VAT. Also, no tax is levied on the export of goods.
4. Depending on the product sold, the amount of tax may be different. For example, when selling medicines and food products, VAT is only 10%.
5. Submission of reports is the most important stage of cooperation with the tax inspectorate. The return must be submitted by the 25th of the month. Otherwise, fines cannot be avoided. When sending a letter by mail, you do not have to worry that the letter will arrive at the tax office after the 25th, because in this case the time of sending on the stamp of a registered letter is taken into account.
6. When cooperating with a counterparty who will supply you with products, require him to fill out the invoice in a timely and correct manner. If mistakes are made, the tax inspector has the right to charge additional VAT.
7. All purchased raw materials for subsequent sale must be “driven” through accounting and invoices must be drawn up correctly. This way you can get a tax deduction.

Now we more or less understand where this tax comes from, how it is compiled, and in general, who should pay VAT. Of course, everything is described here rather superficially and primitively, and the topic of value added tax itself is more extensive and complex, and it is almost impossible to present all the nuances now.

The most significant and most difficult of the taxes of the Russian Federation is the value added tax. It is because of him that many questions and disputes arise between the authorities in the field of taxes and directly by the taxpayers themselves.

Some of the taxpayers, when paying value added tax, make minor errors, which leads to large penalties. In the article, we will analyze the concept of VAT, what is its economic essence, why is VAT needed, who is a VAT payer, under what conditions does an organization have the right to receive exemption from VAT?

VAT payers are faced with the need to correctly calculate and allocate VAT from the amount, the calculation can be done independently or used.

The concept of added tax

Value added tax (abbreviated as VAT) is a state indirect tax, which is established as a surcharge on the price of a product, work or service. VAT is the main generator of the budget in the Russian Federation. According to the Tax Code of the Russian Federation, Ch. 21 "Value Added Tax" establishes the terms and procedure for collecting VAT.

VAT is a small share of value added that arises from the difference between the cost of producing a particular product and the cost of this product, work, service, for which they were sold later to the buyer.

The enterprise, purchasing goods, products (works, services), pays the supplier their cost, taking into account value added tax.

When selling goods and products to a buyer (performing works, rendering services), the enterprise accrues VAT on their cost to pay it to the budget, and issues an invoice to the buyer of the enterprise taking into account the amount of this tax.

In this case, the following situation arises: the amount of value added tax intended for payment to the budget can be reduced by the amount of VAT on acquired valuables paid to the supplier. That is, ultimately, the tax burden on the enterprise is reduced.

In order to reveal the concept of VAT, we will give an example of a VAT calculation scheme.

Example

Organization "A" buys material assets from organization "B" for 50,000 rubles (excluding VAT). Organization "B" issues an invoice, in which VAT / 18% / - 9,000 rubles is charged on the cost of purchased materials (50,000 rubles). The total amount payable on the account will be 59,000 rubles. Organization "A" pays the bill, receives materials, on the basis of which it produces components and sells them to organization "B". In this case, “A” is billed to “B” for payment in the amount of: the total cost of parts - 100,000 rubles, VAT / 18% / - 18,000 rubles, the total amount of 118,000 rubles.

In this case, organization "A" will have to pay the difference between the amount of VAT 18,000 - 9,000 \u003d 9,000 rubles to the budget. In this situation, organization "A" has a tax credit in the amount of VAT in the amount of 9,000 rubles. and the amount of the tax liability of 18,000 rubles, the difference is paid to the budget.

Who is a VAT payer

According to Art. 143 of the Tax Code of the Russian Federation, taxpayers of value added tax are:

• organizations;
• individual entrepreneurs, that is, persons who are engaged in private business and do not formalize their activities as a legal entity;
• persons engaged in the movement of goods across the customs border of the Customs Union and recognized as VAT taxpayers in accordance with customs legislation.

Exemption from payment

Some organizations, individual entrepreneurs may be exempted from paying value added tax, for this they must meet certain conditions.

VAT exemption is allowed under the following conditions:

• in the event that the amount of revenue for 3 consecutive previous months does not exceed 2 million rubles. The exception is payers who import excisable goods into the Russian Federation. In order to receive exemption from paying value added tax, it is necessary to submit a written notification to the Tax Inspectorate, attach an extract to it, an extract from the sales book, an extract from the book of accounting for income and expenses for business transactions, providing a copy of the journal of issued and received invoices. These documents are submitted before the 20th day of the month from which the right to exemption from VAT is obtained. The exemption is given for a period of 12 months, after which the organization must confirm its right not to pay value added tax or waive this right,
• if the organization performs operations exempt from VAT, their list can be found in Art. 149 of the Tax Code of the Russian Federation,
• if special taxation regimes are applied: USN, PSN, UTII, ESHN.

If an organization meets one of these conditions, then it is exempt from paying value added tax, which is a definite plus for the organization.

But there are not only positive aspects of exemption from VAT, but also negative ones. If an organization is not a payer of value added tax, then it cannot issue invoices with allocated VAT amounts and make settlements with these amounts. Also, it cannot direct the VAT collected from them by suppliers for reimbursement from the budget, the organization includes the amount of this tax in the cost of goods, works, services received.

It is also worth noting that the main document on the basis of which the organization has the right to send the VAT presented by suppliers for reimbursement is. Only if this document is available, the organization can exercise its right to send the amount of tax deductible. Recently, another document on the basis of which VAT can be allocated has become a universal transfer document (UPD), which combines the functions of an invoice and a primary transfer document (waybill, acceptance certificate).

Of course, in trade and market relations, the beneficiary (the entity that receives real profit from the sale) is obliged to pay taxes. Depending on the scale of entrepreneurial activity, various taxes are paid to the state treasury. One of these taxes is the Value Added Tax.

Almost everyone is familiar with the well-known abbreviation "VAT". However, is everyone aware of the essence of the Value Added Tax, the amount of its payment, as well as the nuances of calculation? This article reveals the characteristics of the value added tax, and also explains who, to whom and when should pay it.

Value Added Tax is a federal indirect tax. Simply put, VAT is an additional surcharge on the final cost of goods. That is, an entrepreneur, indicating the final price of a product (product), already includes in it the amount of value added tax for this product. In fact, this tax is “paid” to the seller by the buyer. At the time of the purchase (transaction). However, legally, it is the seller who is the payer of this tax, and it is he who submits the report to the tax authority.

In simple words, the VAT system can be explained as follows: the seller of goods is, relatively speaking, the collector of this tax, and the one who makes the purchase is the direct payer of this indirect tax.

It should be noted that VAT is paid only on revenue, that is, on the difference between the final cost of the goods and its cost.

How does VAT affect the pricing of future products? In general, the cost of production (goods) consists of many components, the standard of which are:

1. The cost of the material;
2. Potential profit (revenue) from sales;
3. Excises (including value added tax).

By the way, in view of the latest changes in the Tax Legislation, namely: in paragraph 6 Article No. 168 of the Tax Code of the Russian Federation , from January 1, 2018, when selling goods at retail, VAT must be indicated on the check. This amendment was introduced by Federal Law No. 349 "On Amendments to Part Two of the Tax Code of the Russian Federation" dated November 27, 2017. But on the price tags, such a mark is not mandatory.

In general, VAT is usually calculated in 2 ways:

1. Addition. In this method, the final amount of value added tax is calculated by adding the price markups of each type of goods sold.
2. subtraction. This method is used in the vast majority of cases. It is quite simple to calculate: VAT is calculated on the total net profit from sales, and the tax paid earlier is deducted from the amount received - during the purchase of materials or raw materials.

The history of the formation of value added tax

In Russia, VAT preceded "sales tax" which has been in operation for almost 70 years. One of the prerequisites for the emergence of the sales tax in the distant post-war period was an acute shortage of funds from the state treasury. It was very difficult for merchants with such taxation, because the tax was levied on all proceeds, and not on net profit.

The value added tax came into effect in Russia on January 1, 1992. However, other countries have long practiced this type of tax. The founder of the VAT is considered to be the French Director of the Ministry of Economy, Finance and Industry Maurice Loret. The effect of the tax in test mode in France began in 1954. After positive tests, the project tax was recognized as effective, and after 4 years, it was officially introduced into the taxation system.

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To date, value added tax is in force in almost 140 developed countries. Each country independently sets the value added tax rates, and regulates reliefs and exceptions to its payment. The average VAT rate around the world varies around 20%.

In the Russian Federation, the rate is set at 18%. The same rate is valid in Malta, Azerbaijan, Georgia, Macedonia, Peru and Turkey.

In Mexico, the value added tax rate is slightly lower - 16%, in Germany - slightly higher - 19%. In India, the standard VAT rate is quite low, at 12.5%, and 2 out of 28 states are generally exempt from value added tax.

In some countries, there is no VAT at all. For example, in Japan and the United States, a sales tax is applied instead of VAT. In the US, the sales tax rate is not fixed and varies between 0 - 20% (depending on the state). For this tax in the United States, there are also exceptions and concessions. But in Japan, the rate is fixed and unchanged, it is only 8%.

Uniform VAT rate and exemptions for taxpayers

In the Russian taxation system, value added tax is usually calculated at a standard rate of 18%. This rate is established by the Tax Legislation, namely Chapter No. 21 called "value added tax" of Part II of the Tax Code of the Russian Federation dated August 5, 2000 No. 117-FZ. This Chapter contains 35 articles and regulates the characteristics of the tax in more than detail.

There are 3 main rates of value added tax:

1. The basic rate of calculation is 18%. At this rate, the tax is calculated for overwhelming groups of goods.
2. The rate is 10%. We can say that such a rate is a kind of relief for entrepreneurs involved in the implementation of:
   • food;
   • children's goods;
   • medical preparations;
   • scientific literature.
3. Rate 0%. This rate mainly applies to export goods.

By the way, recently an amendment to the law was adopted, which affected the activities of certain categories of participants in export transactions. Previously, taxpayers whose activities are services for the provision of railway rolling stock and containers for the transportation of goods for export could claim a 0% VAT rate only if they owned the above objects. So, since January 2018, this condition has lost its force, that is, the legislation has expanded the boundaries of this activity.

Exempted from paying VAT, that is, entrepreneurs providing services for the provision of work to state institutions have a 0% rate. The 0% rate also applies to the provision of services for the development of state-owned enterprises.

The tax is not levied on the sale of all types of space products, as well as on the transportation of oil, gas and precious metals.

A more detailed list of goods, the sale of which is allowed at a rate of 0% VAT, is presented in Article No. 164 of the Tax Code of the Russian Federation. In general, the legislation has more than 100 points of relief for payers of this tax.

Recent changes in the procedure for paying VAT in 2018

On June 14, the Government of the Russian Federation decided to raise the VAT rate. The VAT rate will be increased from 18% to 20%, Russian Prime Minister Dmitry Medvedev said at a government meeting.

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At the same time, according to Dmitry Medvedev, all VAT exemptions for basic services and socially significant goods (food, children's and medical goods, domestic interregional air transportation) will be preserved.

According to the Minister of Finance of the Russian Federation Anton Siluanov, the new VAT rate will come into effect on January 1, 2019. A 2% VAT increase will bring an additional 600 billion rubles to the country's budget. annually. Additional money will be used to solve the strategic tasks of the country.

Dynamics of changes in the VAT rate by years in Russia since 1992

VAT rate by country

Here are the TOP VAT rates around the world in ascending order

Are there state compensations when paying VAT?

Yes, for taxpayers in Russia there are many compensations, benefits and concessions. And the value added tax is no exception.

In fact, the entrepreneur is entitled to VAT compensation in order to avoid double taxation. Consider a specific particular example: an enterprise exported goods abroad. At the same time, it has already paid VAT for the purchase of raw materials to its supplier. Since when exporting goods, the VAT rate is 0%, that is, the buyer of the goods cannot in any way “reimburse” the amount of tax paid earlier to the enterprise. In this case, the company can count on compensation from the State.

Note! Only taxpayers working under the general taxation system are entitled to receive compensation. Entrepreneurs who use the USN, UTII, UAT, patent as a taxation system, unfortunately, are deprived of such a right.

The basis for receiving compensation for the amount of VAT is the situation when

the amount of tax deductions of the taxpayer exceeds the total amount of tax at the end of the reporting period. The very fact of the presence of overpaid tax funds must be indicated in the declaration. Compensation may be in the form of a credit or refund.

Three conditions must be met simultaneously in order for the VAT amount to be accepted as a deduction:

1. Goods sold were already subject to VAT;
2. All products undergo accounting and verification;
3. The invoice was completed without a single mistake.

Value-added or VAT is an indirect payment to the budget from each product or service, which is paid as the products of enterprises are sold. The cost of this tax is always included in the selling price, so it is assumed that it is paid by the end consumer.

The main advantage of using the system with the accrual of value added tax is the elimination of a cascading increase in prices at each stage of sales due to the withdrawal of payments from each link, including intermediaries.

Invented by the Frenchman Maurice Loret back in 1954, and tested in the colonial countries, the system is now used in 137 countries around the world. The exception among the highly developed powers was the United States, which uses a sales tax system. VAT rates in different countries range from 5 to 30%, in Russia since 2004 the payment for the main deduction is 18%, for goods of a special list (preferential) - 10%.

Payers of value added tax

The chain of sale of products stretches from the manufacturer to wholesalers, from them to individual entrepreneurs and retailers, only after that the products are in the hands of the consumer. In the system of using VAT, it is important that the tax is withdrawn once, and then its value is transferred along the entire chain.

VAT payers are recognized:

Financial and industrial enterprises, regardless of their form of ownership and affiliation, engaged in commercial and industrial activities - producers of goods and services.

Enterprises with foreign capital conducting industrial and commercial activities in the country

Insurance agencies and banks licensed to operate

Private enterprises established on the right of full management, whose activities include the production and wholesale and retail sales of goods

Branches and subsidiaries that do not have a legal entity, but carry out the production and sale of services and goods

Individual entrepreneurs whose sale of goods provides a turnover of at least 2 million rubles a year

Individual entrepreneurs and organizations moving goods between the countries of the Customs Union

Non-profit organizations involved in the sale of goods and services

Russia does not levy tax on the organizers of international competitions and their foreign partners. Thus, all activities related to the Olympic Games in Sochi and Eurovision in Moscow were not subject to value added tax. An organization and entrepreneurs may be exempt from paying VAT in cases where their revenue does not exceed 2 million rubles.

Objects of taxation

According to the Tax Code, not the services and goods themselves are considered objects of VAT, but transactions related to the change of ownership:

Sale of services and products on the territory of the Russian Federation, including transactions for the sale of pledges, transfer of goods and work performed, property rights

Import of goods into the territory of the Russian Federation

Construction and installation works

Acquisition of goods and services for own consumption

Actually, value added tax is levied on the sale of all goods and services from manufacturers and participants in international trade within the Customs Union, with the exception of situations included in the list of transactions that not subject to taxation:

Sale of medical preparations and equipment of domestic and foreign production

Trade in goods and literature for religious purposes

Provision of medical services, with the exception of cosmetic, sanitary-epidemiological and veterinary private institutions. State organizations providing this range of services are not subject to value added tax.

Realization of food products by public canteens and buffets directly at enterprises

Sale of postage stamps and postcards, except for collectibles, envelopes and lottery tickets

Sale of goods in duty-free shops

Sale of coins recognized as a payment instrument in Russia, their exchange for paper

Provision of commercial lease to foreign citizens and organizations accredited in the territory of the Russian Federation

All banking operations, except for collection

Research and design activities carried out at the expense of the state budget

Operations with cash loans and circulation of securities

Providing services to extinguish fires and help people in need

Diagnostics and repair of production equipment abroad, previously purchased from foreign partners

Activities of lawyers

VAT is one of the most difficult taxes for the common man to understand. Complications arise not only because of the different rates that are relied on for various types of activities, but also because of the peculiarities of its calculation. In addition, there are options in which VAT can be returned.

In tax guides, VAT is defined as a tax on the profits of enterprises that they receive by setting prices on their goods above market prices.

The difference between the old and new prices for goods becomes the object of taxation. In other words, we can say that the tax is charged on the difference between the proceeds from the sale of goods and their initial price (the cost of raw materials for its manufacture or the funds spent on its purchase).

Value added tax is credited to the federal budget. It is considered an indirect tax due to the fact that it is paid in full by the buyers (or consumers of the goods).

An organization engaged in the sale must also take into account the taxes that it itself pays

To determine the tax, you must use the tax base, which is determined by the price of the goods. At the same time, the cost of such a product increases by 10-18 percent with each purchase. These numbers must be

Who is obliged to pay VAT

The obligation to pay VAT falls on:

• organizations;
• individual entrepreneurs;
• persons who transport certain goods across the state border of the Russian Federation.

Legal entities (individual entrepreneurs and organizations) may, in certain cases, be exempted from paying value added tax. To do this, the revenue for the previous three months should not exceed two million rubles. But this applies only to those organizations that are engaged in the sale of non-excisable goods.

The following types of taxpayers do not need to pay VAT (except for those who transport goods across the border):

• who pay ESHN and STS. How to draw up a notice of the transition of the simplified tax system - read
• who use UTII in their activities.

These are special tax regimes that are exempt from paying VAT.

What is the essence of value added tax you can find out in this video:

When does the obligation to pay arise?

Since the tax is paid on the proceeds from the sale of the amount, the obligation to pay it arises from the very moment of the sale. It can be both unloading and direct payment of money for the goods provided.

Moreover, the payment of tax occurs in several stages:

• when an enterprise purchases raw materials for the manufacture of goods from another organization, it pays VAT, which is included in its cost;
• when determining the cost of goods, the value of VAT is added, but in this case it fits into the tax credit;
• when forming the final cost of the goods, it also includes the amount of VAT, which then will have to be paid by buyers.

Rates and amount of VAT

In most cases, the tax rate for VAT is 18 percent. But for the sale of special goods (children's goods, food, some types of medicines), the legislation provides for a reduced rate, which is 10 percent. Also, when exporting goods, a rate of 0 percent is often used.

A zero rate is applied to those goods that are exported for sale abroad. It can also be used for services that are aimed at international transportation.

What is VAT refundable

In some cases, the amount paid for VAT can be returned. This is a very complex issue that causes a lot of conflict situations. We can only say that most of them are decided in favor of entrepreneurs.

VAT refund is a certain process, the consequence of which is that the taxpayer receives a part of the paid tax on his current account. For legal entities, this becomes possible if at the end of the tax period the amount of VAT is greater than the amount of tax paid to the budget.

But this does not mean that in this case the funds will necessarily be credited back to the taxpayer's account. To complete this procedure, you will need to do certain steps.

How to return VAT - step by step instructions

VAT refund is carried out according to the following scheme:

Quite often, the main reason for refusing to return VAT is the inconsistency of data and incorrect filling of documents. In certain cases, the reason for this may be an incorrect indication of the address (actual instead of legal), or confusion in indicating the numbers of payment documents.

The court allows the use of corrected documents, but it is much easier to do everything right from the beginning.

It is recommended to keep records in such a way as to separate taxable and non-taxable transactions. If such a separation is not made, then it will be almost impossible to return VAT, since this procedure is tied to certain types of work.

You can also expect a refusal to those organizations whose counterparty has not paid VAT.

Legislative regulation

The regulatory framework by which the issue of accrual and refund of VAT is regulated includes the following legislative acts:

• Chapter 21 of the Tax Code of the Russian Federation;
• Decree of the Government, which was issued under the number 1137, and which refers to the norms for filling out documents necessary for paying tax;
• Customs Code of the Customs Union.

This also includes an agreement signed by members of the Customs Union on the customs value of goods that are transported across the borders of countries.

To get a chance for a VAT refund, it is imperative to comply with the rules for its payment and follow the correct filling of documents.

A summary of the essence of value added tax and the principles of this - in this video: