In accordance with paragraph 2 of Art. 161 of the Tax Code of the Russian Federation, in 2014 a tax agent is considered to be a person who is an intermediary between the tax payer and the state. Wherein this person may not be a payer of value added tax, or receive an exemption from the obligation of a taxpayer and, according to Chapter. 26.1 - 26.3 of the Tax Code of the Russian Federation, apply special taxation regimes.
Primary duty to be performed tax agent– this is the timely and correct calculation and withholding of VAT from the taxpayer when renting municipal property or when purchasing goods and services from foreign entities.
The legislative framework of the Russian state provides for a number of cases when an individual or legal entity can be considered a tax agent:
- organization or individual enterprise purchases goods (work, services) on the territory of the Russian state from foreign persons who are not registered in the Russian Federation;
- this person rents municipal or state property;
- sale by this enterprise on behalf of the state of purchased, confiscated or ownerless property;
- the organization acts as an intermediary and sells products (or work and services) of a foreign enterprise that is not registered in Russia;
- the enterprise acquires directly from the authorities the rights to state or municipal property;
- by court decision, the company sells the property or confiscates it.
Calculation of the tax base and determination of the rate in 2014
Regardless of the type of transaction, the tax base in mandatory Value added tax must always be included. Size tax rate calculated as percentage tax rates in accordance with clauses 2 or 3 of Article 164 of the Tax Code of the Russian Federation and the tax base, which is conventionally taken as 100 and increased by the amount of this rate.
This procedure is approved in paragraph 4 of Art. 164 Tax Code of the Russian Federation.
In 2014, the tax agent is obliged to submit a declaration to the regulatory authority no later than the twentieth day of the month following the reporting month. In the event that within three months monthly income does not exceed 1 million rubles, the declaration is submitted once a quarter.
In this declaration, it is mandatory to fill out title page, as well as sections 1.1 and 2.1. Additionally, section 1.2 “The amount of tax to be paid to the budget, according to the tax agent” and section 2.2 “Calculation of the amount of tax to be transferred by the tax agent” are completed. If the company did not carry out an operation that is subject to VAT in this reporting period or used special mode, then dashes are placed in the indicated sections.
When leasing state or municipal property, the tax base is the amount rent, which is transferred to a local government or state authority.
The tax agent calculates the tax base separately for all leased properties. In the declaration, this amount will be reflected in section 2.2 on line 090, as well as in the total lines 050 and 170. 
When VAT is withheld from foreign company, the tax base in 2014 is considered to be the amount of proceeds from the sale, which is transferred by the tax agent to his partner. Its amount is determined separately for each transaction, that is, from each transfer to a foreign person, the tax agent calculates, withholds and transfers to the state budget VAT.
In paragraph 3 of Art. 45 of the Tax Code of the Russian Federation states that tax payment is carried out only in national currency Russia. Therefore, when paying a foreign counterparty income in foreign currency VAT calculations must be made in Russian rubles at the Bank of Russia exchange rate officially valid at the time of payment.
In the declaration, the amount of income paid to a foreign person and the amount of value added tax calculated from these amounts is reflected in section 2.2 on lines 070 or 080, as well as in the total lines 050 (or 060) and 170.
Lines 130 and 140 will be filled in when the tax agent transfers advance payments to a foreign counterparty for future transactions. These amounts are included in section 2.2 only at the time of payment, that is, once, otherwise a double account may occur in the personal account and the enterprise will have an unreasonable debt to the state budget.
When selling confiscated property the tax base will be equal to the cost of the property (including VAT) and excise taxes. The value of the property must be calculated based on Art. 40 Tax Code of the Russian Federation.
The amount received is reflected in section 2.2 of the declaration on lines 100-120 and in the final lines 040-060, 170. Lines 15-20 and 160 are provided for displaying advance payments.
You should also pay attention to the fact that amounts that are transferred for goods (work, services) to a foreign person or government authorities should not be included in the indicators that are displayed in section 2.1 of the declaration.
In the process of paying funds to authorities or foreign counterparties, an invoice is issued. This document is compiled in a single copy and remains with the individual or legal entity who performs the functions of a tax agent. In the case when the buyer of foreign products or the lessee makes advance payments, the invoice is also filled out, however, when the goods (work, services) are actually posted (performed), this document is not issued again.
The issued invoice must be registered in the sales book. Entries in the purchase ledger are made only when all the conditions stipulated for the deduction are met.
Payment of VAT in 2014
The volumes of value added tax that were withheld through the tax agent are transferred to the budget at its location.
If products were purchased from a foreign enterprise, the place of sale of which was recognized as Russia, then the withheld sums are paid to the state budget within the time limits established for taxpayers to pay VAT in paragraph 1 of Art. 174 Tax Code of the Russian Federation. When purchasing work or services from foreign companies, the tax amount is transferred to the budget simultaneously with the transfer of funds to the foreign counterparty. In this case, two payment orders are submitted to the bank: one of them is for the transfer of funds for goods (work, services) to a foreign enterprise, and the second is for the payment of VAT to the budget.
In operations involving the sale of confiscated property or the lease of municipal and state property, one of the duties of the tax agent is the transfer of withheld amounts within the same time frame as the transfer of VAT for its direct activities.
Budget Classification Code (BCC) in 2014
One of the most important components budget policy of the Russian state is the budget classification. In accordance with clause 1 Federal Law dated August 15, 1996 No. 115-FZ “On budget classification Russian Federation", it provides for the assignment of appropriate codes to classification objects to ensure the uniformity of the form of budget documentation.
The application of the BCC in the Russian Federation is carried out in accordance with the Directives of the Ministry of Finance of Russia, adopted on the basis of Law No. 115-FZ. The use of KBK is provided when filling out settlement documentation for the transfer of payments. These rules also apply to the tax agent. Each payment is credited to the state budget revenue account corresponding to the one entered by the BCC (in the “Purpose of payment” column of the payment order).
To indicate any additional information V payment order there is a “Note” indicator, which, like the budget classification code, carries information in the form of a tax. If these two indicators contain various information, the credit institution will be guided by the KBK. Therefore, processing a payment order requires special attention.
To pay VAT on goods (works, services) sold on the domestic market of the country in 2014, the budget classification code (BCC) is 182 1 03 01000 01 1000 110. This BCC is used by both the tax agent and the taxpayer.
If the BCC is incorrectly specified, all responsibility for not crediting the value added tax for its intended purpose rests with the payer. Also, the Controlling Authority may consider the obligation to pay tax unfulfilled.
For failure to fulfill these obligations, the law provides for liability in the form of a fine in the amount of twenty percent of the amount of VAT to be withheld and paid. But there is a way out of this situation - if the tax agent indicated the wrong BCC in the payment document, he has the right to file a statement about the error he made with a request to clarify the type of payment and its attribution.
Documents confirming the transfer of VAT must be attached to such an application. Next, a joint reconciliation of the listed volumes is carried out, after which the controlling authority clarifies the payment on the day of its actual implementation and recalculates the amount of the penalty.
Tax deductions in 2014
According to paragraph 3 of Art. 171 of the Tax Code of the Russian Federation, a tax agent has the right to include in tax deductions the amount of VAT withheld and paid to the budget. However, taxpayers who carry out the activities specified in paragraphs 4 and 5 of Art. 161 of the Tax Code of the Russian Federation do not have the right to include tax amounts on these transactions in deductions. For the operations listed in Art. 161 of the Tax Code of the Russian Federation, deductions are provided only when property rights or goods (work, services) were purchased for activities that are subject to this tax and it was paid upon their purchase.
The basis for making deductions in 2014 is documentation confirming the payment of tax, as well as documents for the purchase of products.
Deductions are made in a proportion not exceeding the amount of VAT that was calculated upon shipment of products, transfer of property rights or provision of services and performance of work. The tax agent has the full right to deduct the amount of VAT in the period in which this amount was actually paid to the state budget.
Main accounting entries for VAT in 2014
When accounting for transactions related to value added tax, the tax agent reflects it as follows.
If an enterprise purchases goods (work, services) on the territory of the Russian state from foreign entities not registered in the Russian Federation:
When leasing municipal and state property, the tax agent makes the following entries:
Monthly rental accrual:
- Dt 20,23,44,26,25 Kt 60, 76 – rental accrual;
- Dt 19 - Kt 60.76 - reflection of the amount of acquired tax, in accordance with the lease agreement;
When transferring rent, the tenant (tax agent) makes the following entries:
- Dt 68 - Kt 51 – transfer of VAT by the tax agent;
- Dt 60.76 - Kt 68 - VAT is withheld from the lessor’s income;
- Dt 68 - Kt 19 - accepted for VAT reimbursement.
The company can lease property that is under the jurisdiction of municipalities, constituent entities of the Russian Federation or the Russian Federation. In this case, the rental amount is subject to tax, and the tenant becomes a tax agent who is obliged to withhold and pay the specified tax to the budget.
Renting property in 1C 8 3 is fixed by a sequence of operations that allow you to form necessary documents, reflect the movement of funds in accounts and correctly generate accounting entries.
Let's look at the algorithm of actions using an example. Let's say the company "Clean House" is located on common system taxation. To account for income tax calculations, PBU 18/02 is used.
“Clean House” leases property (industrial or warehouse premises) from the municipality. A lease agreement was concluded between the municipal authorities and the company, which stipulates the term, conditions and procedure for mutual settlements. The rental payment includes VAT (18% of the amount) and amounts to 472,000 rubles. Rent is provided on a prepaid basis, the settlement day is the 20th, if the settlement day falls on a weekend, the rent must be paid on the last working day preceding the settlement date.
Leasing of 1C property is accompanied by entering data on the agreement, which is attached to the counterparty. It is important that when filling out the information, the “Organization acts as a tax agent for the payment of VAT” checkbox is checked in the “Type agency agreement» select “Rent (paragraph 1, clause 3, article 161 of the Tax Code of the Russian Federation)”. Payments under the agreement are attributable to general running costs tenant:
Property rental is calculated in 1C 8 3 simultaneously with tax calculation. Since the rent payment already includes 18% (this amount is paid by the tenant), the company must transfer 400,000 rubles to the lessor, and 72,000 rubles to the budget as tax. In relation to the organization, the owner is the service provider, therefore the payment to the lessor is formed through debiting from the current account using the “Payment to supplier” operation:
The payer must issue an invoice. In 1C, this can be done in several ways: entered based on debit from a current account or through registration of invoices. The table part is filled in automatically when you click the “Fill” button. The operation is confirmed with the “Execute” button:
The received invoice is reflected in the list of documents in the “Invoices issued” section. This document reflects that the company is a tax agent with transaction code 06. For the invoice, entries are generated that reflect the accrual of VAT (72,000 rubles) Dt 76 - Kt 68.32, and an entry is created in the sales book. The document is also recorded in the invoice journal:
To transfer the withheld tax to the budget, you must write it off from a current account with the transaction type “Payment of tax”. The debit will be made from account 68.32. The counterparty (owner), data about the agreement, and the document for payment for rental services are entered in the appropriate fields.
If in 2011 you rented property from a government institution, then VAT should have been withheld from the rent and transferred to the budget.
Tenants of property of a state-owned institution were recognized as tax agents for VAT from January 1 to December 31, 2011 (Clause 1, Article 16 of the Law of May 8, 2010 No. 83-FZ). The tax base should have been determined as the amount of rent including tax (clause 4 of Article 173 of the Tax Code of the Russian Federation). The amount of VAT payable to the budget is determined in this case by the calculation method using the tax rate 18/118 (clause 4 of Article 164 of the Tax Code of the Russian Federation).
The tenant-tax agent issues an invoice no later than five calendar days from the date of transfer of rent.
The VAT amount is paid to the budget in equal installments no later than the 20th day of each of the three months following the expired quarter.
The tenant has the right to deduct the paid amount of VAT if the rented premises are used to carry out operations subject to VAT. The basis, as always, will be invoices and documents confirming payment of VAT.
In accounting, the cost of a rented office is reflected in account 001 “Leased fixed assets” in the valuation established in the lease agreement.
The lessee organization keeps records of the leased fixed asset in an off-balance sheet account. Landlords are encouraged to open inventory card for each rented property.
Office rental expenses are expenses for common types activities. The rent amount is recognized as an expense on a monthly basis on the last day of the month. In accounting, the amount of rent is reflected in in this case on the debit of account 26 “Main production” and the credit of account 76 “Settlements with various debtors and creditors”.
In tax accounting, office rental costs are taken into account as part of other expenses associated with production and sales. These expenses are recognized on the date of accrual of rent.
Example 1
In 2011, the organization rented an office in the building of a government agency. The building is federal property. The monthly rent is 118,000 rubles. (including VAT).
According to the terms of the rental agreement, payment is due by the 10th day of the month following the billing month. The cost of a rented office is 10,000,000 rubles. The organization determines income and expenses in tax accounting using the accrual method.
The following entries will need to be made in accounting:
DEBIT 001
DEBIT 26 CREDIT 76
DEBIT 19 CREDIT 76
DEBIT 76 CREDIT 68 “VAT”
DEBIT 76 CREDIT 51
DEBIT 68 “VAT” CREDIT 51
DEBIT 68 “VAT” CREDIT 19
If an organization that is a tenant of the property of a government institution uses the simplified tax system, then it is not exempt from performing the duties of tax agents. Consequently, a simplified tenant is obliged, when transferring rent, to calculate, withhold and transfer to the budget the amount of VAT and issue an invoice.
The tenant on the “simplified” lease does not take the amount of VAT paid as a deduction, but includes it as part of the rent (subclause 3, clause 2, article 170 of the Tax Code of the Russian Federation).
Example 2
An organization using the simplified tax system rents an office in the building of a government agency in 2011. The building is federal property. The monthly rent is 118,000 rubles. (including VAT).
According to the terms of the rental agreement, payment is due by the 10th day of the month following the billing month. The cost of a rented office is 10,000,000 rubles.
The following entries must be made:
DEBIT 001
– 10,000,000 rub. – reflects the cost of the leased fixed asset;
DEBIT 26 CREDIT 76
– 118,000 rubles – reflects the amount of accrued rent;
DEBIT 76 CREDIT 68 “VAT”
– 18,000 rub. – VAT is withheld from the rent and is subject to transfer to the budget;
DEBIT 76 CREDIT 51
– 100,000 rub. – the amount of rent is transferred to the lessor;
DEBIT 68 “VAT” CREDIT 51
– 18,000 rub. – the amount of withheld VAT is transferred to the budget.
Changes in 2012
From January 1, 2012, tenants of federal government property are not recognized as tax agents for VAT in relation to rental amounts. Such changes to paragraph 3 of Article 161 Tax Code introduced by Law of November 21, 2011 No. 330-FZ.
It is important
Tenants who use the simplified tax system and UTII when renting state or municipal property are also recognized as tax agents for VAT.
From January 1, 2012, operations for the provision of services by state institutions are not recognized as an object of VAT taxation in accordance with subclause 4.1 of clause 2 of Article 146 of the Tax Code. This norm was introduced by Law No. 239-FZ of July 18, 2011.
Consequently, in 2012, the state-owned institution-lessor and the tenant do not have any consequences for the calculation and payment of VAT.
Example 3
In 2012, the organization rented an office in the building of a government institution. The building is federal property. The monthly rent is 100,000 rubles.
According to the terms of the rental agreement, payment is due by the 10th day of the month following the billing month. The cost of a rented office is 10,000,000 rubles. Income and expenses in tax accounting of an organization are determined by the accrual method.
The following entries must be made in accounting:
DEBIT 001
– 10,000,000 rub. – reflects the cost of the leased fixed asset;
DEBIT 26 CREDIT 76
– 100,000 rub. – the amount of accrued rent is reflected;
DEBIT 76 CREDIT 51
– 100,000 rub. – the amount of rent is transferred to the lessor.
Forgotten VAT from the tenant
Changes in the Tax Code affected the leasing of government property. In other cases, when leasing state (municipal) property, the tenant has obligations to calculate and pay VAT charged by the lessor. Often the amount in the lease agreement is indicated without VAT. How to calculate tax and how much?
In such a situation, VAT is paid by the tenant on top of the rent. The tax base is determined as the rent increased by the amount of VAT. In this case, the amount of tax payable to the budget is determined by the calculation method using the tax rate of 18/118.
Essentially, a tax calculated and paid in federal budget, is the amount of VAT withheld from the landlord's estimated income. Provided that the leased property was acquired for the purpose of carrying out transactions recognized as objects of taxation, the lessee can take the amount of tax paid as a deduction.
nota bene
A government institution is a state (municipal) institution that provides state (municipal) services and performs work. Financial support activities of a government institution are carried out at the expense of the corresponding budget on the basis of budget estimates.
Taking into account the above, in accounting, the amount of VAT transferred in excess of the rent is reflected as a tax withheld from the lessor’s income. That is, on the date of recognition of rental payments as expenses, an entry is made in the debit of account 19 “Value added tax on acquired assets” in correspondence with the credit of account 76.
Example 4
The organization rents an office in the building government agency. The building is federal property. The amount of the monthly rent in the contract is indicated without VAT and is 100,000 rubles.
According to the terms of the rental agreement, payment is due by the 10th day of the month following the billing month. The cost of a rented office is 10,000,000 rubles. Income and expenses in tax accounting of an organization are determined by the accrual method.
In the situation under consideration, the tax base for VAT is 118,000 rubles. (RUB 100,000 + RUB 100,000 X 18%).
The accountant will make the following entries:
DEBIT 001
– 10,000,000 rub. – reflects the cost of the leased fixed asset;
DEBIT 19 CREDIT 76
– 18,000 rub. (RUB 118,000 X 18/118) – reflects the amount of VAT on rent;
DEBIT 76 CREDIT 68 “VAT”
– 18,000 rub. – reflects the amount of VAT to be transferred to the budget;
DEBIT 76 CREDIT 51
– 100,000 rub. – the amount of rent is transferred to the lessor;
DEBIT 68 “VAT” CREDIT 51
– 18,000 rub. – the amount of withheld VAT is transferred to the budget;
DEBIT 68 “VAT” CREDIT 19
– 18,000 rub. – paid VAT is accepted for deduction.
The state is one of the largest owners of property, which is usually rented out. In accordance with Article 214 Civil Code state property is recognized:
- property owned by the Russian Federation (federal property);
- property owned by right of ownership to constituent entities of the Russian Federation - republics, territories, regions, cities of federal significance, autonomous regions, autonomous okrugs(property of a constituent entity of the Russian Federation).
The lease of property that is federally owned has features relating, in particular, to the conclusion of a lease agreement and the establishment of lease payments. In this case government bodies authorities, acting on behalf of the Russian Federation, within the framework of their competence, can, by their actions, acquire and exercise property and personal non-property rights and obligations. The relations that arise in this case between the owner and the lessor are regulated by Chapter 34 of the Civil Code.
G.G. Jamalova, expert editor
For companies that lease out premises, plots and other property, as well as for tenant companies, there are special conditions VAT taxation. In today’s article we will analyze the main aspects of VAT taxation when renting residential and non-residential premises, and also touch on the specifics of VAT accounting when renting state property.
VAT on rent: general rules
According to the terms of the Tax Code, services for leasing property are considered an operation subject to VAT.
The list of property that is the subject of leasing may, in particular, include: (click to expand)
- premises (both residential and non-residential), buildings, structures, other real estate;
- movable property ( vehicles, production equipment, computer equipment, etc.);
- land.
By general rule, the VAT payer landlord must issue an invoice to the tenant in which the tax amount is allocated on a separate line. The lessor can deduct the amount of VAT.
Rent: constant or variable
Depending on the terms of the contract, the amount of remuneration paid to the lessor can be either constant or variable. If you are renting out a small premises (for example, 1 sq.m. from total area for the placement of an ATM), then it makes sense to establish a fixed rental amount in the contract. The rent in this case is considered constant.
If you are renting out premises with large area, and the tenant uses it as a store (bank, representative office, etc.), then it is advisable to calculate the rental amount based on 2 indicators:
- direct rent;
- the cost of utility services used by the tenant during the reporting period.
The latter indicator can be fixed in the contract at the average value and added to the amount of the rent. In this case, rental payments from the user of the premises will come to you in the form of a constant amount (similar to the example above).
If average utility bills cannot be calculated (for example, the premises are periodically construction works), then it is worth adding a variable indicator to the rent amount. It will be calculated based on the resources actually used by the tenant (electricity, heat, water supply and sanitation services, etc.).
Let's look at the conditions for VAT taxation in each case:
- Let's say you leased out real estate under an agreement that established a fixed fee and specified VAT. In this case, invoices must be issued monthly (quarterly) in the amount specified in the contract, VAT must be charged in accounting and transferred to the budget. The lessor will deduct the VAT amount on the invoice.
- Let's imagine that the rental fee consists of 2 parts, one of which is reimbursement of utility bills. In this situation, you present to the landlord the entire amount of utility bills including VAT + the rent itself. For your part, you can deduct VAT from suppliers of electricity, heat and other utilities. The grounds for the deduction in your case are as follows: You are obliged to hand over the premises to the tenant in a condition suitable for use. To do this, you have concluded agreements with utility services and provided the necessary communications. That is, the cost of utilities is the cost necessary to rent out the premises, therefore, the amount of VAT on them can be deducted.
Lessor - non-resident
Today, there are frequent cases when a non-resident company transfers for use on a paid basis property (real estate) in the Russian Federation, which it owns as an owner. In this case, the non-resident is required to register with the tax authority to pay property tax. Does foreign company in this case, the obligation to pay VAT? This depends on a number of factors, more details of which are in the table below.
| Situation | Description |
| A non-resident rents out premises on an irregular basis | If it is established that the lease of real estate is of an irregular nature, then such activity is not subject to VAT. The tenant, who in this situation acts as a tax agent of a non-resident company, must pay VAT. |
| A non-resident rents out real estate on a systematic basis | A non-resident independently calculates and pays VAT when he regularly leases property. In this case, the activities of the foreign company are recognized as entrepreneurial. |
| The activities of a non-resident constitute a representative office in the Russian Federation | Let’s say a foreign company has acquired ownership of several premises in the Russian Federation, opened a representative office on the territory of the Russian Federation and leases out the property. In such a situation, a non-resident is registered with the Federal Tax Service and is recognized not only as a payer of property tax, but also of income tax and VAT in the general manner. |
We rent state property
Quite often, entrepreneurs and legal entities locate retail outlets (for example, kiosks selling stationery) in public administration buildings, tax office and other state and municipal authorities. In this regard, the business entity leases part of the premises, which is in state ownership. We will discuss below how to calculate VAT in this case.
Rent of state property
Let's say your organization provides Banking services, in connection with which you are renting a room of 5 sq. m. m in the municipal building to accommodate a bank cash desk. Who (you or a government agency) should transfer the VAT amount to the budget? According to the Tax Code, if the lessor under the contract is the state, then the VAT on the transaction must be transferred by the user of the premises, that is, the tenant. However, in practice, the following scheme is used: the lease agreement is concluded not with the owner, but with the balance holder.
In this case, the obligation to pay tax remains with the balance sheet holder: (click to expand)
| Situation | Description |
| The Federal Property Management Agency leases out real estate | If you have entered into a lease agreement with the Federal Property Management Agency directly, then the obligation to pay VAT rests with you as a tax agent. A similar rule applies in the case of concluding agreements with local authorities (for example, with the Regional Property Management Committee). |
| The balance holder transfers the property for rent | Let’s say that the agreement was concluded not with the bodies of the Federal Property Management Agency (local or federal), but with the organization that accepted the property for operational management. In this case, you do not have the obligation of a tax agent, and the balance sheet holder (for example, state or municipal) is obliged to remit VAT. unitary enterprise). The same applies to the conclusion of trilateral agreements, in which the property is transferred by the balance holder, and the Federal Property Management Agency confirms his rights. |
Example No. 1.
JSC "Papierweight" operates in the field of retail sales stationery In October 2016, “Papierweight” received a lease of part of the premises on the 1st floor of the National Technical Institute building. "Papierweight" uses the premises as a retail outlet. The lease is formalized by a tripartite agreement, according to which:
- JSC "Papierweight" acts as a tenant;
- The National Technical Institute (balance holder) leases the property;
- The body of the Federal Property Management Agency (owner) confirms the right of the National Technical Institute to lease part of the premises.
Every month, the National Technical Institute issues invoices to JSC "Papierweight" for payment of rental services, in which the amount of VAT is allocated. The amount of tax is independently calculated and paid to the budget by the National Technical Institute (balance holder). JSC "Papierweight" is not assigned the duties of a tax agent.
Municipal land lease
The taxation of land lease transactions from the state differs significantly from VAT accounting of transactions for the lease of state real estate. The fact is that when renting a plot of land that is state-owned, tax obligations arise neither for the lessee company nor for the lessor government agency. This is due to the fact that rental operations natural resources(including land) are exempt from VAT. Therefore, if you lease land from the state, then you do not need to fulfill the duties of a tax agent. However, you will still have to indicate the operation in section 7 of the declaration.
If the site of a government institution is leased (for example, from a kindergarten or animal shelter), then you do not need to indicate information in the declaration. Tax obligations in this case also do not arise.
Question and answer on the topic of VAT on rent
Question: In September 2016, Molot JSC received a lease of a state-owned land plot. The agreement was concluded between Molot and the Regional Property Management Committee. In November 2016, Molot subleased the land to Serp LLC. Should Hammer charge VAT?
Answer : In this case, 2 operations take place: to obtain a plot for rent, as well as its sublease. Since land lease from the state is not subject to VAT, Molot does not act as a tax agent for this operation. As for sublease services, Hammer must charge VAT on them in accordance with the general procedure.
Question : In April 2016, Znamya JSC accepted a lease for premises owned by Vympel LLC. During the period May–August 2016, Znamya, at its own expense, made capital investments in the premises, which were recognized as separable improvements. Does Znamya have the right to deduct the amount of VAT on the cost of materials and construction work?
Answer : Znamya can deduct VAT as part of the cost of separable investments in the general manner.
Question : In January 2016, Pelican JSC accepted part of the non-residential premises for lease from Flamingo LLC. In March 2016, Flamingo, at its own expense, carried out major renovation premises, which are recognized as an inseparable improvement. How is VAT calculated in this case?
Answer : Regardless of whether the improvements are received on a paid or free basis, the obligation to charge VAT rests with the tenant JSC Pelican. Pelican must also issue an invoice.
When concluding a lease agreement for property that is state or municipal property, the tenant organization is recognized as a tax agent (clause 3 of Article 161 of the Tax Code of the Russian Federation (hereinafter referred to as the Tax Code of the Russian Federation)). Tax agents are required to calculate and withhold from income paid to the lessor, and pay value added tax to the budget.
Property objects are not limited to certain categories, which means that this rule applies to the lease of any property - movable and immovable, including land.
Organizations are recognized as tax agents if they lease property directly from government authorities and (or) local governments. (Letter of the Federal Tax Service of the Russian Federation dated February 14, 2005 No. 03-1-03/208/13 “On VAT taxation of rental premises”).
Therefore, even VAT non-payers are exempt from the obligation to pay VAT in accordance with Article 145 of the Tax Code of the Russian Federation. They are recognized as tax agents if they are tenants of the specified property and bear responsibility in case of failure to fulfill the functions assigned to them to withhold and pay taxes.
The tenant has the opportunity to act as a tax agent only upon transfer of funds to the lessor.
The tax base is determined by the tax agent as the amount of rent including tax.
Therefore, when concluding, make sure that the lessor provides the amount of tax as part of the rent, and the amount of tax should be highlighted on a separate line.
The absence of tax as part of the rent payment can lead to unpleasant consequences. Let's explain why.
The duty of the tax agent is to calculate, withhold from the taxpayer’s income and transfer the amount of tax to the budget (clause 4 of Article 173 of the Tax Code of the Russian Federation). Now let’s imagine that the contract only specifies the amount of the rent. Consequently, it will calculate the amount of tax on the rent at the rate of 18/118, withhold this amount from the amount of the rent and transfer it to the budget. What happened in the end? That the landlord did not receive the full amount of rent. You can do it differently. The tax agent increases the cost of the service under the lease agreement by the amount of tax at the rate of 18%, then calculates the amount of tax from the total amount at the rate of 18/118 and transfers it to the budget. What is the result? The tax amount is not actually withheld from the lessor's income, therefore, the tax agent loses the right to deduct.
In addition, the absence of a tax amount in the agreement, highlighted as a separate line, can be qualified tax authority as the absence in the primary document of the tax amount highlighted as a separate line, which as a result may also lead to the loss of the right to deduction.
Thus, when concluding a lease agreement for state or municipal property, make sure that the contractual relationship is drawn up correctly.
Tax agents are required to pay value added tax regardless of whether rent has been paid or not. The procedure and deadlines for paying VAT are established by tax legislation and cannot be changed by the parties (Resolution of the Federal Antimonopoly Service of the North-Western District dated June 21, 2004 in case No. A26-128/04-29).
Example 1.
The organization rents for production purposes non-residential premises, which is in municipal ownership. According to the lease agreement, the rent is 11,800 rubles per month including VAT and is paid by the tenant no later than the 10th day of the reporting month. The organization is a VAT payer and pays tax to the budget monthly.
Below we consider options for reflection in accounting and tax accounting, depending on the moment of fulfillment of the obligation to pay tax to the budget.
Payments to the budget for tax payments are made by the tenant in the period in which the rental payments are transferred. According to the conditions of the example, rent is paid for a month, and in the same period payments are made to the budget.
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Account correspondence |
Amount, rubles |
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Debit |
Credit |
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VAT reflected on rent |
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The amount of VAT on rent has been calculated and withheld (11,800/118*18) |
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Calculations were made with the budget for payment of withheld tax |
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Accepted for deduction of VAT on rent recognized as expenses |
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Option 2 . Let’s assume that the organization transferred to the budget VAT in the amount of 1,800 rubles, withheld from the rent amount, on the 20th day of the month following the reporting month, which complies with the requirements of the law. Since tax payment by tax agents is made within the time limits established by Article 174 of the Tax Code of the Russian Federation, that is, no later than the 20th day of the month following the expiration tax period. When reflecting the indicated business transactions the order of application changes tax deductions.
Let us note that since January 1, 2006, the conditions for applying deductions from tax agents have not changed and are made when tax agents pay taxes (clause 3 of Article 171 of the Tax Code of the Russian Federation).
The accounting records of the reporting month reflect the following entries:
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Account correspondence |
Amount, rubles |
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Debit |
Credit |
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Rental expenses recognized for the current month |
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VAT reflected on rent |
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The accounting records of the month following the reporting month reflect the following entries:
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Account correspondence |
Amount, rubles |
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Debit |
Credit |
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Rental expenses recognized for the current month |
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VAT is reflected on the rent for the current month |
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Monthly rent listed excluding VAT |
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Calculations were made with the budget for payment of withheld tax for January |
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Accepted for deduction of VAT on rent recognized as an expense in January |
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When performing all transactions recognized as objects of taxation, the taxpayer issues invoices, despite the fact that tax law does not require the tax agent to issue invoices. At the same time, as a general rule, a prerequisite for applying tax deductions is the presence of an invoice. You can use the following procedure for using invoices by tax agents.
An organization acting as a tax agent draws up a single copy invoice for the full amount of the rent in accordance with the terms of the agreement, highlighting the amount of tax. In this case, the invoice is marked “Rental of state (municipal) property.”
Therefore, in our example, the tenant issues an invoice to total amount 11,800 rubles, indicating a tax of 1,800 rubles. The tax rate is 18/118.
End of the example.
The basis for deducting tax amounts withheld by tax agents also serves source documents, confirming the acceptance for accounting of rental services and documents confirming the payment of tax amounts withheld by tax agents. This procedure is regulated by paragraph 1 of Article 172 of the Tax Code of the Russian Federation.
Here is an example from our consulting practice:
Example 2. From the consulting practice of JSC " BKR -Intercom-Audit".
Question.
Company A is a subtenant of company B, which, in turn, rents premises from the Committee of the Russian Federation for State Property Management (acts on behalf of the owner federal property). The premises are located on the territory of a research institute, which is the balance holder.
Who should pay VAT on rent from company A: company B, a research institute, to the budget?
Answer.
A sublease agreement is derived from the main agreement (lease agreement), therefore, in accordance with paragraph 3 of paragraph 2 of Article 615 of the Civil Code of the Russian Federation, the rules on lease agreements are applied to it, unless otherwise provided by law or other legal acts. In this case, the tenant under the main agreement becomes a lessor in relation to the subtenant.
In accordance with paragraph 3 of Article 161 of the Tax Code of the Russian Federation, when federal property, property of constituent entities of the Russian Federation and municipal property are provided for rent on the territory of the Russian Federation by state authorities and management bodies and local self-government bodies, it is determined as the amount of rent including tax. In this case, the tax base is determined by the tax agent separately for each leased property. In this case, the tax agents are the tenants of the specified property. These persons are required to calculate, withhold from income paid to the lessor, and pay the appropriate amount of tax to the budget.
When subletting federal or municipal property, VAT on sublease income is calculated by the sublessor in the generally established manner. The subtenant (company A) transfers cash directly to the sublessor (company B), who calculates VAT on the income received. At the same time, he (the sublessor - company B) fulfills the obligation to pay VAT as a tax agent. At the same time, the subtenant cannot be assigned the obligation to perform the functions of a tax agent, since such functions are assigned to the organization that directly leases federal or municipal property from state authorities and administration or local governments.
This procedure applies subject to the tenant having permission to sublease the property.
End of the example.
More details with questions regarding rental relations, You can find it in the book of JSC “BKR-Intercom-Audit” “Rent”.