If an enterprise carries out business transactions, both subject to VAT and exempt from it, it is forced to somehow distribute "input" VAT, that is, included in the cost of purchased goods and services. After all, if the acquired assets are used in VAT-taxable activities, "input" VAT is deducted, and if in non-taxable, it is included in the cost of the product. But usually the organization itself does not know how and where it will spend the acquired assets.
It is necessary
The cost of goods (works, services) shipped during the tax period, both subject to VAT and not
Instructions
Step 1
If your business is so diverse that it includes both value-added taxable transactions and those exempt from it, you must keep separate records of both these transactions and the VAT amounts for purchased goods, fixed assets and intangible assets. In the absence of separate accounting, the entire burden of the "input" VAT will fall on you, since you will not be entitled to either deduct it or include it in expenses. The fact and methodology of separate accounting should be consolidated in the accounting policy, although there is no direct requirement for this in the Tax Code.
Step 2
If the taxpayer basically does not have the ability to determine for what kind of transactions (taxable or not) the purchased goods, services, property rights, etc. will be used, there is a principle of proportional distribution of the “incoming” VAT. For this, an indicator such as the cost of goods (works, services) shipped during the tax period is used. To get the amount of VAT deductible, it is necessary to multiply the amount of VAT to be distributed by the value of goods shipped subject to VAT and divided by the total value of the goods shipped in the tax period. Accordingly, the amount of VAT included in the cost of products is proportional to the value of the shipped products, which are not subject to VAT.
Step 3
Legislation has not established whether to calculate the proportion to take the amount of goods shipped including VAT or not. The Ministry of Finance believes that the cost should be taken without VAT, but the courts sometimes hold a different opinion. So this point should also be registered in the accounting policy.
Step 4
As can be seen from the formula for the proportional distribution of VAT, this distribution can be carried out only at the end of the tax period. During this period, VAT subject to distribution by calculation is deposited in the form of a debit balance on the "Value added tax on acquired values" account.
Step 5
If during the tax period the costs of operations that are not subject to VAT do not exceed 5% of the total costs of the enterprise, then separate accounting may not be kept and the entire amount of “input” VAT may be deducted. This takes into account both direct costs of the production and sale of goods (works, services), and other costs associated with the production and sale of these goods and services.
