Almost every year, by decrees of the government, compulsory licensing of certain services is canceled. And after each such decree, the work of the regular accountants of organizations is added, who are forced to write off the costs of the license.
Instructions
Step 1
For accounting, all expenses of the organization that are directly related to production activities should be recognized as expenses for ordinary activities (business expenses). This is due to the fact that each fact of the economic activity of any organization can be tied to a specific period of time. So, for example, if a license was issued for 5 years, the costs should be associated with the provision of this license for the organization's activities during this time and are distributed between reporting periods for the period of its validity.
Step 2
Reflect on account 97 ("Deferred expenses") the cost of licensing. Write off the required amounts from account 97 to the debit of account 20 "Main production" on a monthly basis in equal shares during the period of its validity (in this example, for 5 years).
Step 3
If your organization ceases to be licensed, the license terms will be shortened as well. In this case, you will have to write off to the debit of account 91 ("Other income and expenses") the amount remaining on account 97 by that time.
Step 4
In addition, you can write off all license costs and at a time, transferring the entire amount from account 97 to account 91 debit at once.
Step 5
Please note that the tax code does not regulate the procedure for writing off licenses. Choose your own taxation option and, depending on your choice, write off all expenses in equal shares or at a time. However, if your tax accounting is based on the principle of accounting for income and expenses on an accrual basis, your expenses will be recognized in the tax (reporting period) to which they belong, regardless of the time of their payment. In other words, it would be better if all expenses directly related to obtaining a license were accounted for and written off during its validity period.
Step 6
Accept full VAT deduction on your products or services, if licensed, at a time based on your invoice.
