As you know, received advances are subject to value added tax, and after the sale of the amount of VAT paid from the prepayment are accepted for deduction. However, in certain cases, it is possible not to pay VAT payments from an advance on completely legal grounds.
Instructions
Step 1
Arrange the receipt of an advance payment and the shipment of goods in the same tax period. Accept the accrued VAT amount from the prepayment for deduction.
Step 2
Include the amount of the advance received in the taxable base for VAT, and then calculate and pay value added tax to the budget on the total amount of sales under this transaction (Article 54, paragraph 1 of Article 162 of the Tax Code of the Russian Federation). Indicate in the declaration the amount of VAT that was calculated from the advance and accepted for deduction in the same period.
Step 3
If the organization has an overpayment for value added tax, draw up and send to the inspectorate a letter of application requesting to deduct the tax from the received advance against the overpayment (Article 78 of the Tax Code of the Russian Federation).
Step 4
Check the status of calculations with the budget for VAT for the previous periods, namely, compare the amounts of tax deducted and accrued. If the amount to be deducted exceeds the amount of charges, VAT on advances is taken into account for this difference. (Article 176 of the Tax Code of the Russian Federation).
Step 5
Agree with the buying company on the settlement of the advance payment through the issuance of a bill. Fill in the bill of exchange for the prepayment amount for the item. Transfer it to the buyer on the basis of the securities transfer and acceptance certificate. When drawing up this document, put in it the date of redemption of the bill, which must necessarily be later than the date of shipment of the goods.
Step 6
Receive money from the buyer to pay for this security. In this case, the amount received is not considered an advance payment for the goods, therefore, VAT is not paid. Post the shipment of the goods. The buying firm must then present the promissory note for maturity.
Step 7
Draw up an agreement on the offset of mutual claims in which the selling organization pays off its bill of exchange payable to the buying organization, and the buying organization pays off its debt to the seller organization for the goods received in the amount of the difference between the cost of this goods and its payment in cash (i.e. the amount of the bill).
