Any commercial organization in accordance with Chapter 21 of Article 171 of the Tax Code of the Russian Federation has the right to reduce the total amount of VAT to be paid to the budget by the deductions established by law. To do this, you need to accept VAT deduction.
Instructions
Step 1
Deductions that reduce value added tax include:
- transactions for the purchase of goods, services or works for internal consumption in the organization;
- operations for the purchase of goods, services or works for their further resale to other entities.
Step 2
The official document that confirms the amount of the tax deduction is the invoice with the value added tax highlighted in it. It must be filled in in accordance with clauses 5-5.1 and 6 of article 169 of the Tax Code of the Russian Federation. If the basis for accepting an invoice is the purchase of products, it must be provided with a waybill. If the invoice is issued for the provision of work or services, it must be accompanied by an act of services rendered or work performed.
Step 3
To accept value added tax for deduction, you need to reflect it in accounting. After you receive an invoice from the supplier with the tax highlighted in it, you need to reflect this using the entries: Debit 68 "Calculations of taxes and duties" and Credit 19 "Value added tax on purchased values".
Step 4
Sometimes it happens that the amounts are paid in advance. In this case, value added tax must be charged at the time of receiving an advance, and only then transferred to the budget. The accrued value added tax on the sale of goods, services or works from this advance can be deducted. On the basis of the eighth paragraph of Article 171 and paragraph 6 of Article 172 of the Tax Code of the Russian Federation, no payment is required for deduction.
Step 5
When making an advance payment, the chief accountant must indicate the following entry: Debit 68 "Calculations for VAT" and Credit account 76 "Calculations for VAT from advances received". The company supplying the products must issue an invoice within five calendar days and, after accepting the advance payment, charge the value added tax.
