The simplified taxation system lives up to its name. Its application is really not difficult. The taxpayer is only required to comply with a number of formalities: submit reports on time and make payments.
It is necessary
- - payment of taxes;
- - payment of contributions to off-budget funds;
- - standard reporting to the tax office and the Pension Fund;
- - notification of the possibility of using the simplified tax system.
Instructions
Step 1
The first feature of the simplified system, pleasant for many, is that there is no need to add VAT (value added tax) when invoicing.
However, in each invoice it is necessary to explain the reason for not collecting this tax. Usually, the standard wording "VAT is not charged, since the Recipient (or the Contractor) applies the simplified tax system" is sufficient.
You can also specify the output data of the notification about the possibility of applying the simplified taxation system: the number, date and name of the tax inspectorate that issued it.
This notice is usually sent by mail, otherwise you will have to get it from your tax office.
Step 2
Taxpayers submit reporting documents to the simplified tax system once a year. These include the information provided in the tax on the average number of employees and the single tax declaration in connection with the use of the simplified tax system. They are submitted at the end of the year. The deadline for the first is January 20, the second is March 31 for businesses and April 30 for entrepreneurs.
It is also necessary to certify the book of income and expenses annually. If it is in paper form, it should be done at the beginning of the year. The e-book of income and expenses is printed at the end of the year and certified on paper.
Step 3
It is also necessary to report on payments to extra-budgetary funds. Entrepreneurs who do not have employees submit reporting documents in the form of the Pension Fund once a year before March 1 to their territorial branch of the fund.
Enterprises and entrepreneurs who have hired employees report on their contributions to the Pension Fund and the Social Insurance Fund on a quarterly basis.
Step 4
Advance tax payments are made at the end of each quarter no later than the 25th day of the next month. The exception is the 4th quarter: taxes for it (and for the year as a whole) must be paid by April 30.
The tax rate depends on the selected object of taxation: 6% of income or 15% of the difference between income and expenses.
With deductions to extra-budgetary funds, you can choose for yourself: either quarterly, while reducing the amount of tax on them, but not more than twice, or for the whole year no later than December 31st.
The taxation system does not affect the payment of contributions for employees.
