Value added tax is an indirect multi-stage tax, it is levied on each act of sale, starting from the stage of the production cycle and ending with the sale to the final consumer. In fact, value added is the difference between two quantities - the cost of finished goods sold and the cost of products consumed in its production.
Instructions
Step 1
Added value is the total costs by the amount of which the cost of raw materials and materials increases at each stage of production, sale or resale. There are two ways to determine the value of added value: by summing up all of its components, or by subtracting the cost of all components of the feedstock from the cost of selling the product. The current tax legislation of the Russian Federation recommends using the second method when calculating value added.
Step 2
Calculate the value added (DS) according to the formula: DS = PSA - SZ, where PSA is the cost of selling products, SZ is the cost of costs, all material components of raw materials and depreciation deductions from equipment used in production.
Step 3
This method of calculating value added allows the use of an indirect deduction method in taxation, in which the tax rate (CH) is applied separately to the cost of sales of products and the cost of costs, which, in their essence, are the purchase price of raw materials, materials, equipment, etc. to calculate value added tax (VAT), use the formula VAT = (СН * PSA) - (СН * СЗ). This formula makes it possible not to use the value of added value in the calculations, but to apply the tax rate to its components - costs (excluding the amount of wages) and products sold.
Step 4
The use of this method of calculating value added tax is convenient in that it allows you to apply the tax rate directly at the time of the transaction, which gives advantages, both technically and legally. In this case, use an invoice, in which the final amount of the transaction is given including value added tax. This document is the most important and fundamental when making a transaction, since it contains information about tax obligations and makes it possible to control the movement of goods to check the correctness of the tax calculation.
