VAT is a value added tax, one of the indirect taxes in force in Russia. It is charged from legal entities, organizations and individual entrepreneurs when conducting various financial transactions, selling goods and raw materials.
VAT 20%
From January 1, 2019, all transactions on which a value added tax of 18% was charged are subject to 20% tax. This provision is governed by Article 1 of the Law "On Amendments to the Legislative Acts of the Russian Federation on Taxes and Fees" No. 303-FZ, approved in August 2018. At the same time, preferential rates of 10% and 0% for certain goods and services remained unchanged.
For companies and individual entrepreneurs who are VAT payers in accordance with the selected taxation system, the need to pay added value arises in the following cases:
- The manufactured products were sold, paid services were rendered or work was carried out;
- Property or assets donated
- Completed construction, installation and other works related to modernization for the company's own needs;
- Import has been made.
Sale or transfer, provision of services, assets, etc. on a paid or gratuitous basis, in any case, it is accompanied by a change in the amount of funds in the organization's accounts.
Enterprises in strategic raw materials and energy sectors, specializing in logistics operations for the import of various products and raw materials, are exempted from paying value added tax.
This rate applies to the following goods and services:
- Export goods distributed under the free customs zone procedure;
- International delivery by all types of transport with the final destination outside the Russian Federation;
- Services rendered in the field of pipeline transportation of oil, gas;
- Provision of transport, containers for logistics operations carried out by companies registered outside the Russian Federation;
- Space activity, sale of products and services for its maintenance;
- Various types of services and products for servicing foreign diplomatic missions
- Transfer for use of shipping transport built and registered in the Russian Federation.
How to add 20% VAT to the amount
Formula for allocating VAT 20 percent:
VAT AMOUNT 20% = AMOUNT * 20/120
Using this formula, you can extract 20% VAT from the original amount.
Formula for calculating VAT 20 percent:
VAT AMOUNT 20% = AMOUNT * 0.2
Using this formula, you can charge 20% VAT on the original amount.
The 20 percent value added tax percentage is regulated by the tax code of the Russian Federation.
The Excel program can come to the rescue, which allows you to automate the calculation operations and save a huge amount of time. Within a few minutes, you can create a simple table with formulas and upgrade it to fit your needs.
