VAT - value added tax, is an indirect tax paid to the budget of the Russian Federation. Withdrawals are made in terms of added value. VAT has been paid in the Russian Federation since 1992.
Instructions
Step 1
VAT is paid by organizations, individual entrepreneurs, as well as other persons determined by customs legislation.
Step 2
The legislator has established the following objects of VAT taxation: transactions related to the sale of goods (services, works) on the territory of the Russian Federation, which include the transfer of ownership of goods (works, services) and the transfer of the subject of pledge; transfer on the territory of the Russian Federation of goods (services, works) intended for their own needs (despite the fact that expenses on them are not accepted for deduction) when calculating the tax on profit of organizations; execution of works (construction and installation) to satisfy their own interests; import of goods into the territory of the Russian Federation, as well as the territories under its jurisdiction.
Step 3
Tax base VAT is the cost of goods (services, works). Advances must be added to the indicated cost (if any). It is important to pay attention to the fact that advances are not included in the tax base if: there is a tax exemption, or a 0% rate is applied, and also if the production cycle is more than six months. The tax base is determined by the earliest date, that is, the day of shipment (goods, services, works) or the day of prepayment (full payment).
Step 4
The tax period for calculating VAT is one quarter.
Step 5
If the amount of proceeds from the sale of goods (services, works) for the three preceding months (excluding tax) does not exceed 2 million rubles, then the Tax Code of the Russian Federation indicates the possibility of exemption from VAT by filing before the 20th day of the month from which it planned, appropriate notice and documents. After twelve months, you are required to confirm that there was no excess of revenue during this period. For this, supporting documents are provided, as well as a notice of intent to renew or refuse to use the right to exemption.
Step 6
For VAT taxpayers, there is the possibility of obtaining a tax deduction, which in turn reduces the amount of tax paid. Here it is necessary to take into account that the deduction is intended for transactions subject to VAT, as well as in respect of which resale is applied. The deduction is based on the invoice provided by the supplier.
Step 7
VAT is paid by filing a relevant declaration, no later than the 20th day of the month following the reporting quarter.
