Enterprises subject to VAT have the right to write off part of the VAT amount for a certain amount of tax deductions provided for by law. This will minimize the tax paid and reduce the costs of the company. The conditions and procedure for writing off VAT are established by Art. 171 and Art. 172 of the Tax Code of the Russian Federation.
Instructions
Step 1
Calculate the amount of VAT charged on the advance payment received from the buyer and paid to the budget. In the event that the transaction did not take place for various reasons stipulated by the supply contract, or the agreement was terminated, the supplier has the right to write off the tax paid and receive a corresponding deduction from the tax return. This rule is established by clause 5 of article 171 of the Tax Code of the Russian Federation. In this case, you cannot write off if the advance payment was made in cash.
Step 2
Post entertainment and travel expenses in your accounting records. According to clause 7 of article 171 of the Tax Code of the Russian Federation and Chapter 25 of the Tax Code of the Russian Federation, the company has the right to write off a certain amount of VAT, which is established by the specified standards, for the amount of expenses incurred, confirmed by documents.
Step 3
Read clause 2 of article 171 and clause 1 of article 172 of the Tax Code of the Russian Federation, which specify the procedure for writing off VAT in case of payment for the purchased goods, services rendered or work performed. This operation must be carried out with the object of taxation, taken into account and have an invoice for the corresponding amounts.
Step 4
Write off the amount of VAT charged on the cost of products paid by bank transfer. Also, clause 5 of article 171 of the Tax Code of the Russian Federation provides that the seller has the right to write off this amount of VAT if the buyer returned the goods and the tax was paid to the budget.
Step 5
Enter into a property sale and purchase agreement with the supplier, which provides for the transfer of ownership after payment has been made. In this case, reflect the receipt of the goods in the accounting according to the shipping documents on the off-balance sheet account 002, intended for safekeeping. According to clause 1 of article 172 of the Tax Code of the Russian Federation, the buyer has the right to write off the amount of VAT presented by the seller of the property on the date of its acceptance to the off-balance sheet account.
