Entrepreneurs and organizations using the simplified tax system are exempt from VAT. Therefore, before switching to the "simplified" system, it is necessary to restore the VAT accepted for deduction. As a rule, this causes serious difficulties.
Instructions
Step 1
First of all, look at what rate you will recover VAT. It must be restored at the same rate at which it was deducted. If you purchased a fixed asset before 2004, when the rate was 20%, then you must use the same 20%. And this is despite the fact that at present such a rate does not exist. However, there is no clarification in the Tax legislation on this matter.
Step 2
Having decided on the rate, calculate the VAT on fixed assets and intangible assets. Please note that you will not have to recover all of the deductible value added tax, but only a part proportional to the residual value.
Step 3
Next, decide on the VAT on the remaining goods and materials. Multiply their cost by the VAT rate. Pay the received amount to the budget.
Step 4
Enter the restored VAT into the sales book, but do not touch the purchase book. Moreover, you must enter this VAT on the basis of the invoice for which this tax was accepted for deduction. This is evidenced by the letter No. 03-04-09 / 22 of the Ministry of Finance dated November 16, 2006.
Step 5
Consider the amount of VAT recovered and paid as other expenses for calculating income tax. Moreover, these are the expenses of the tax period that precedes the period when you switched to the simplified tax system. If you are an individual entrepreneur, reduce the base for calculating personal income tax, again for the previous period.
Step 6
Don't forget about accounting and tax accounting. Reclaim VAT, as mentioned above, to other expenses.
Of course, VAT recovery will take a lot of time and effort on your part. But this procedure is spelled out in tax legislation, and, unfortunately, it is impossible to avoid it.
Good luck in your business!
