According to Chapter 21 of the Tax Code of the Russian Federation, the seller is obliged to charge VAT on the received advance payment for the goods, and the buyer has the right to apply tax deductions for this amount. Despite the fact that advance payments are common, many accountants often have difficulty in recording prepayment VAT in their accounting records.
Instructions
Step 1
Issue documentary evidence of the prepayment transfer. It is possible to accept for accounting and deduction of VAT on advances only if there is primary documentation. This rule is stipulated in clause 9 of article 172 of the Tax Code of the Russian Federation. It is necessary to draw up: an invoice for the prepayment amount, which is drawn up in accordance with the requirements of Article 169 of the Tax Code of the Russian Federation; an agreement that provides for the transfer of an advance payment; another document confirming the fact of the advance payment.
Step 2
Develop and consolidate in the accounting policy of the enterprise a way to reflect transactions for deducting VAT on prepayment and recover these amounts. The fact is that there are no regulatory documents that describe such accounting. As a rule, most accountants use subaccount 76 "VAT on prepayment" for accounting for advance VAT.
Step 3
Transfer the funds as an advance payment for the purchased goods to the seller and reflect this operation in the accounting. To do this, you need to open a loan on account 51 "Current accounts" and a debit on subaccount 60 "Advances issued".
Step 4
After that, on the credit of sub-account 76 "VAT from prepayment" in correspondence with sub-account 19 "Calculations for VAT" reflect the accrued tax amount. Take for deduction the amount of value added tax from the advance by opening a debit on subaccount 68 "Calculations for VAT" and a credit on subaccount 19.
Step 5
Receive the purchased item and transfer the remaining amount owed. In this case, at first, it is necessary to reflect the full cost of the purchased products on the debit of account 41 "Goods" and the credit of sub-account 60 "Settlements for the purchased goods". Next, show the VAT on this amount on the credit of account 60 and the debit of sub-account 19 "VAT on purchased goods".
Step 6
Recover the amount of VAT from the prepayment by opening a debit on subaccount 76 and credit on subaccount 68. Further, VAT is deducted on the goods received on the credit of subaccount 19 and debit of subaccount 68. Read off the prepayment amount, for this, open a credit on subaccount 60 "Advances issued" and a debit on subaccount 60 "Settlements for the purchased goods". After that, the transferred debt is reflected on the credit of account 51 and the debit of subaccount 60.
