How to calculate VAT 18% of the amount - formula and examples

VAT is a value added tax. It has been operating in the Russian Federation since 1992. In terms of the form of entering into the budget, it belongs to the type of indirect. When purchasing a product, the consumer pays the seller a tax included in the price.

This system works like this:

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1. The buyer purchases goods for the purpose of reselling or using for the production of other goods, however, he paid the tax included in the price;
2. Further, after production, the new product will be sold to the end consumer at a price formed from the sum of all costs, including the cost of materials (excluding VAT, see clause 3), labor costs, etc. + 18% VAT to the received value;
3. A manufacturer, when calculating his tax payments to the budget, can deduct from the amount of tax received from consumers the amount of tax that he paid for the purchased raw materials.

The tasks that the constructed VAT payment system is designed to solve:

• exclude multiple tax collection between stages of the production and commercial cycle;
• reduce the risks of tax evasion;
• frees exporters from payments, raise the competitiveness of national products.

Value added tax rates in the Russian Federation:

• 18% basic.
• 10%, for individual products from the list.
• 0%, for the operations set forth in Art. 149 of the Tax Code of the Russian Federation.

Taxpayers must keep separate records of transactions for each tax rate.

Who pays VAT and who doesn't

VAT taxpayers are:

• companies with legal status persons, regardless of the type of property and relationship to departments that are engaged in production and / or commercial activities, incl. insurance companies and banks (with the exception of tax-free transactions), international associations, foreign residents, non-profit organizations (when carrying out trade operations);
• persons transporting valuables through customs.

All payers are required to register with the tax authority.

Do not pay value added tax:

1. Organizations, enterprises and individual entrepreneurs transferred to:
   • simplified taxation system;
   • payment of the unified agricultural tax;
   • imputed income by types of activities subject to UTII taxation;
2. From 2008 to 2016, he worked on the conduct and organization of the Olympic and Paralympic Games in Sochi by foreign organizers.

A company (or individual entrepreneur) may be exempted from tax payments based on the amount of revenue received from the sale of goods or services in the last three months, if this total income (excluding tax) is less than 2 million rubles. Applicable only for operations on the territory of the Russian Federation.

The period for paying VAT is set to a quarter. The transfer of funds and the filing of a tax return is made no later than the 20th day of the month following the expired three-month period. When valuables are transported through customs, payments are made in accordance with customs legislation.

According to experts' forecasts, no change in the VAT rate is expected in the coming years.

How to calculate VAT 18 percent of the amount

Formula for calculating VAT:

X = (Amount * 18) / 100, where X is the tax amount.

The formula for calculating VAT from the total amount with tax:

X = (SumH / 118) * 18, where SumH is the total cost, including tax.

The formula for calculating the amount without VAT:

X = (AmountN / 118) * 100, X - amount without tax, AmountN - amount with VAT.

Formula for calculating the amount with VAT:

AmountN = Amount * 1.18, where Amount is the amount without VAT, AmountN is the amount with VAT.

The formula for calculating the amount of tax to be paid to the budget minus VAT paid to suppliers:

AmountP is the cost of the supplier, AmountT is the cost of the intermediary.

VAT = AmountT - AmountP.

Task for an example of calculating VAT

The seller purchased products from the supplier in the amount of 10,000, a total of 50 pieces. at the price of 200 rubles. a piece. The supplier included 18% tax in the price, which he paid to the budget. Hence we can conclude that 200 rubles. this is 118%, of which 18 is tax, and 100 is the real price.

Having made a proportion, we calculate the price without tax:

200/118 = X / 100, where X is the cost without VAT;

X = (200 * 100) / 118 = 169.5 rubles.

The value of VAT per piece is equal to 200 - 169.5 = 30.5 rubles.

Total VAT for the whole lot is 30.5 * 50 = 1525 rubles. This amount is called the “incoming” contribution.

The confirmation for the tax inspection of the purchase of goods with VAT included can be a check, invoice, invoice.

Suppose that taking into account all the costs and the desired profit, the price of one product will be set at 1000 rubles. After the sale of the entire batch, the proceeds will be 50,000.

In it, the merchant, similarly to the supplier, included an 18% tax, which is:

50,000/118 = X / 18, where X is value added tax;

X = (50,000 * 18) / 118 = 7627 rubles. This is an “outgoing” fee.

The seller must pay the difference between the “outgoing” and “incoming” VAT to the budget:

7627 - 1525 = 6102 rubles

Second way.

Calculate the difference between the purchase price and the retail price:

50,000 - 10,000 = 40,000 rubles. This value is taken as 118% or 1.18, then the VAT will be:

40,000 / 1.18 = 33,898 rubles. (or is it 100%);

40000 – 33898 = 6102.

Ultimately, the buyer will pay the tax.

Using the 1C program in accounting

The enterprise is one of the most widespread platforms in Russia. Configuration Accounting is used in warehouse, accounting and tax accounting. The developer is from the Russian Federation, therefore, the program takes into account all existing laws and requirements of Russian legislation. Functionality 1C allows you to create invoices, books of purchases and sales, reflect the calculations of taxes and fees on the accounts of the organization.

When entering data on the receipt or sale of the amount for transfers to the budget are calculated automatically according to the tariffs specified in the settings and reference books. After the document is posted, the program itself generates and records account transactions.

Based on the entered data, an invoice can be created and sent for printing. To simplify the user's work will help the built-in "Assistant for VAT accounting", which is relevant for enterprises that do not use a simplified VAT calculation system.

Correctly set parameters are the key to perfect accounting in 1C.

Debugging 1C: Accounting for calculating VAT 18%:

Open the form for setting the accounting policy of the company through the menu, go to the first tab “VAT”.

Indicators are set individually for each firm for a period of one year.

The company maintains either simplified tax accounting, or “not simplified”. In the first case, it is enough to check the box of the same name.

Maintaining “non-simplified” accounting in the system is as detailed as possible and has various mechanisms:

• Control over the conduct of transactions with VAT 0%;
• Inclusion of tax in material and production costs, if it was not accepted for deduction, when transferring to a taxable UTII at retail, or when selling goods outside the Russian Federation;
• The tax accepted for deduction should be included in the composition of other expenses for expenses, business operations on which are not taxed or upon sale the rate is 0%;
• Maintaining batch accounting of goods and transactions subject to different VAT.

• paying UTII;
• carrying out capital construction;
• carries out import or export operations;

VAT accounting tab

• The first two parameters (period and tax base) in new editions are not available for editing, these details are set by default due to the changed legislation.
• The tax will be taken into account immediately during the implementation, if the checkbox "Calculate VAT on shipment ..." is checked.
• The mark “The organization carries out ...” enables the functions of batch accounting, a new tab “Excluding VAT and 0%” appears to indicate the exact settings.

On the third tab, an algorithm for determining the “incoming” and “outgoing” VAT amounts is set. These parameters can be set for each contract of the counterparty individually.

Tab “Amount differences” for accounting and smoothing the difference when calculating tax. For example, if contracts are concluded using y. units (currency, except rubles), and the amounts in the documents were reflected in rubles. set the checkbox “Invoices for calculations in rubles”.

There are two ways to reflect VAT in documents:

• VAT from above.
• VAT incl.

The choice is not regulated anywhere, it depends on the convenience of perception by employees. This option can be found in the pricing policy settings, or on the “Price and Currency” tab right in the document.

1C tools enable the user to make manual adjustments to accounting figures.