The transition to a simplified taxation system for an entrepreneur means exemption from payment of several types of taxes. This, albeit a little, raises his income. But exemption from value added tax does not always play into the hands of such entrepreneurs: in order to keep their customers using the common system (OSNO), they have to issue VAT invoices.
Instructions
Step 1
Imagine a situation where an OSNO customer chooses between you and your competitor. If the cost of products or services is equal, he will choose a competitor, because he will be able to get a tax deduction from the product purchased from him. The Tax Code allows invoicing by an organization using the simplified tax system, but with some reservations. Clauses 2 and 5 of Article 346.11 of the Tax Code of the Russian Federation states that value added tax is paid by such organizations only in 2 cases: when importing goods from abroad and when performing the duties of a tax agent.
Step 2
The Letter of the Federal Tax Service for Moscow No. 19-11 / 48885 of 08.07.2005 explains the following: a person who is not obliged to pay VAT to the budget does not have the right to issue invoices with the inclusion of value added tax. The document below states that this can still be done, but with some tax implications.
Step 3
What are the tax implications? Firstly, this is the emergence of the obligation to pay VAT with the provision of a declaration for this tax; secondly, the tax amount must be included in income, but cannot be included in expenses, and thirdly, your counterparty may have a problem with obtaining a VAT deduction. However, in the third case, the courts for the most part take the side of the entrepreneur, and not the tax inspectorate.
Step 4
VAT payment The obligation to pay VAT arises only when it is indicated in the invoice. If it is highlighted only in the settlement documents, but not in the invoice, then you are not obliged to pay this tax to the budget. Unfortunately, the “simplified person” will not be able to get a deduction, which means that in any case he loses the amount of tax paid.
Step 5
Terms of payment According to paragraph 4 of Article 174 of the Tax Code, when the obligation to pay VAT appears, its payment is made based on the results of the tax period no later than the 20th day of the period following it. For late payment, the tax inspectorate has the right to issue a fine and charge penalties.
