Value added tax means an indirect tax, a form of withdrawal to the state budget of a certain part of the added value, which is produced at all stages of the production of goods, works or services, and is also paid to the budget according to the degree of implementation. In practice, VAT is similar to value added tax. In this case, the buyer has the right to deduct the amount of tax, which, according to all invoices issued to him, he paid for the goods.
Instructions
Step 1
The amount of tax payable to the budget is determined in Russian law as the difference between the total amount of tax accrued at the established rate of the tax base and the amount of tax deductions (the amount of tax paid when purchasing goods used in the company's activities).
Step 2
The tax is calculated specifically for each of the rates used. VAT paid on the purchase of goods, services or works that are not subject to taxation cannot be deducted.
Step 3
The object of taxation in Russia is predetermined as the sale of goods (works) on the territory of the Russian Federation, the sale of pledged items or the transfer of goods (the results of the provision of services, work performed) under an agreement on the provision of an innovation or a compensation method, as well as the transfer of all property rights.
Step 4
In this case, the proceeds from the sale of works, goods or services for the transfer of property rights can be determined based on all income of this taxpayer, which are associated with settlements for payment for these services or goods, as well as property rights that were received by him in cash or in kind, including payment by securities of the amount of prepayments.
Step 5
VAT is always levied as the amount of tax calculated from the tax base, less certain “input” VAT, which is usually confirmed in invoices. Since this confirmation is not always possible to provide (or the counterparty company does not pay VAT within the framework of the simplified taxation system), in the Russian Federation the taxable base of VAT is higher than in many countries that apply this tax.
Step 6
Thus, there is a special formula that helps to determine the amount without VAT: the amount with VAT must be divided by 1, 18. This formula is derived from the formula for calculating the amount with value added tax.
