Enterprises and organizations subject to value added tax (VAT) can write off part of the VAT amount for a certain amount of tax deductions. This procedure will minimize tax and, as a result, reduce the costs of the enterprise.
The procedure for writing off VAT is established by Articles 171, 172 of the Tax Code of the Russian Federation. Before writing off VAT, you need to calculate the amount accrued on the advance payment from the buyer and paid to the budget.
If the planned transaction for certain reasons specified in the supply agreement did not take place or the agreement was terminated, the supplier can write off the paid tax and submit documents to the tax office to receive the appropriate deduction. This situation is provided for in clause 5 of article 171 of the Tax Code of Russia. In the case of an advance payment in cash, no write-off will be made.
In accordance with clause 7 of article 171 and chapter 25 of the Tax Code of Russia, an organization can write off a certain amount of VAT established by these standards for the amount of documented expenses incurred, for example, for entertainment or travel expenses.
The procedure for writing off value added tax in case of payment for the purchased goods, work performed or services rendered is spelled out in clause 2 of article 171, clause 1 of article 172 of the Tax Code of Russia. This procedure must be carried out with the object of taxation, taken into account and have an invoice for the corresponding amount.
The write-off of the amount of VAT charged on the cost of products and paid by bank transfer is made in accordance with clause 5 of article 171 of the Tax Code of Russia. The same paragraph provides for the write-off of VAT in the event that the buyer returns the goods when the tax is paid to the budget.
When concluding a contract for the sale and purchase of property with the supplier in the event of the transfer of ownership after payment, the receipt of the goods is reflected in the accounting records according to the shipping documents on the off-balance sheet account 002, which is intended for safekeeping. Clause 1 of Article 172 of the Tax Code of Russia provides for the write-off of VAT by the buyer presented by the seller of the property on the date of its acceptance to the off-balance sheet account.
