When working with contracts, you can come across the notes “excluding VAT” and “VAT not subject to” when determining the contract price, shipping documents, and invoices. In this article we will tell you the difference between “Without VAT” and “Not subject to VAT” and what wording to indicate in the documents.

What does “excluding VAT” mean?

Indication in the documents “excluding VAT” means that the sales price does not include tax. Organizations that make such a note do not pay tax or are temporarily exempt from paying it.

Companies operating under special regimes - simplified tax system, unified agricultural tax, ENDV, PSN and companies combining several regimes () are exempt from paying VAT. Special regimes are convenient because they replace a number of taxes, including VAT.

Companies and individual entrepreneurs on the OSN can also sell goods and provide services without tax if they comply with the quarterly revenue limit and do not produce excisable goods. Revenue received for 3 consecutive months should not exceed 2 million rubles. By exceeding the limit, the taxpayer will lose the opportunity not to pay tax.

What documents to collect to obtain VAT exemption

Organizations and entrepreneurs seeking to avoid paying tax, under the terms of Art. 145 of the Tax Code of the Russian Federation submit tax documents:

• notification of the exercise of the right to tax exemption;
• extract from the balance sheet and data from the financial results report;
• extract from the accounting book (for individual entrepreneurs);
• extract from the sales book.

Prepare and send a set of documents to the tax office by the 20th day of the month in which the benefit began to be applied. You can use the benefit received for at least a year, unless the conditions are violated.

Working without VAT has many advantages: there is no need to calculate and pay tax, prepare a declaration and fill out a purchase book. But at the same time, working without tax may be unprofitable, because when concluding an agreement with an organization that does not pay VAT, the buyer will not be able to receive a deduction, so many counterparties choose companies that pay tax in the general manner.

What does “VAT exempt” mean?

An extensive list of goods, works, services and transactions exempt from VAT is given in Article 149 of the Tax Code of the Russian Federation. Here are the operations exempt from tax (a number of operations from the list require a license; if an organization does not have one, it cannot apply tax exemption):

• sale or transfer for own needs religious literature and paraphernalia;
• Bank operations, performed by banks (except for collection);
• sale of folk arts and crafts;
• services of insurers and non-governmental pension funds;
• lotteries held by decision of government authorities;
• sale of industrial products containing precious metals, scrap and waste;
• sales of rough diamonds to processing enterprises;
• transfer of goods, property rights, provision of services within the framework of charity;
• sale of tickets and subscriptions by physical education and sports organizations;
• loan and repo transactions;
• other operations listed in clause 3 of Art. 149 of the Tax Code of the Russian Federation.

Here are the goods, works and services exempt from tax:

• medical, sanitary, cosmetic, veterinary services and goods;
• care services for the disabled, elderly and sick;
• child care and leisure services;
• funeral goods and services;
• food products produced by educational and medical institutions;
• transportation of the population;
• sale of postage stamps, envelopes, postcards and other postal products;
• warranty service of equipment;
• restoration and restoration of historical buildings, monuments and cultural objects;
• others listed in paragraph 2 of Art. 149 of the Tax Code of the Russian Federation.

Only companies that work in their own interests and not in the interests of others under agency agreements, commission or commission agreements have a chance to be exempt from VAT. Another important condition is to separate and separately account for taxable and non-taxable transactions.

Invoice without VAT, when and who applies

An important difference between firms exempt from tax under Art. 145 of the Tax Code of the Russian Federation, from special regime officers - the need to issue invoices marked “without VAT”. They need to prepare invoices when selling services, goods and work, as well as when receiving advance payments from customers, and register the invoice in the sales ledger.

In addition, such invoices can be prepared by organizations and individual entrepreneurs in special regimes or carrying out operations and selling goods exempt from taxation under Art. 149 of the Tax Code of the Russian Federation. They have no obligation to issue invoices, but they have the right to do so, for example, at the request of the buyer. The seller, at his own discretion, agrees or refuses such a request, but he will not receive any obligations and will not lose anything. To do this, fill out the document correctly. Previously, invoices indicated “VAT exempt”, but now fields 7 and 8 are marked “Without VAT”. They are not required to register the invoice in the sales book, but if they wish to register the document, the right is retained.

The counterparty who received an invoice without VAT does not enter the document into the purchase book, since there is no tax in it. If there is no tax, there is nothing to deduct, and you will not be able to use it even if you have completed documents.

Indication of VAT in the contract

When drawing up an agreement, indicate the subject of the agreement, the transaction price, the payment procedure and VAT. Indicating the contract price without VAT may lead to an increase in the price by the amount of tax. If you are not required to pay tax, indicate “excluding VAT” or “not subject to VAT” and the basis for tax exemption.

When a seller applies a special regime and is exempt from VAT, he indicates in the contract with the buyer a price marked “VAT exempt”; a similar note is left by companies performing transactions exempt from tax under Art. 149 of the Tax Code of the Russian Federation. The contract must make reference to the fact that the selling organization is exempt from paying tax. As a rule, conflict situations in in this case does not happen, since there is no need to calculate VAT, and it is not necessary to allocate VAT in the contract price.

Taxpayers who do not pay tax based on Art. 145 of the Tax Code of the Russian Federation, when selling goods, invoices must be drawn up without allocating VAT. At the same time, “Without VAT” is written on the documents, and a similar note is put in the contract. The seller organization must make a reference in the contract to the basis on which the benefits were received and confirm the right to them with relevant documents.

The cloud service Kontur.Accounting is suitable for companies using special regimes that are exempt from VAT. Keep records together with your colleagues, calculate salaries, generate reports and send them via the Internet. Consultants are ready to help in difficult situations.

Conditional example with conditional prices.

1st case. An LLC that pays VAT buys goods from an Enterprise that also pays VAT.
1. ENTERPRISE (P) with a general taxation system (GTS) purchased timber from an individual entrepreneur with simplified system taxation (USN) at a price = 1000 rubles. (Price is final without VAT).
2. Having made boards from it, P., increasing the price by 1000 rubles, formed the price of his goods without VAT = 2000 rubles. But since it pays VAT 18%, the price including VAT = 2440 rubles. (VAT = 440 rubles).
3. LLC purchased these boards from P. at a price including VAT of 2440 rubles. (price excluding VAT 2000 rubles), manufactured carpentry, increasing the price excluding VAT by 1000 rubles, received the price of his goods 3000 rubles excluding VAT. But since he is obliged to pay VAT 18% of the proceeds, the price including VAT will be 3660 rubles.

2nd case. An LLC paying VAT buys goods from an individual entrepreneur with a simplified tax system (does not pay VAT), which in turn purchased raw materials from an individual entrepreneur also with a USP.
1. An individual entrepreneur with a simplified taxation system (STS) purchased timber from an enterprise also with a STS at a price of 1000 rubles. (Price is final without VAT).
2. Having made boards from it, the individual entrepreneur increased the price by 1000 rubles, and received the price of his goods 2000 rubles. (Price is final without VAT).
3. The LLC purchased these boards from an individual entrepreneur at a price of 2000 rubles, manufactured joinery, increasing the price without VAT by 1000 rubles, and received the price of its goods for 3000 rubles. without VAT.
But since he is obliged to pay VAT 18% of the proceeds, the price including VAT will be 3660 (VAT 660 rubles)
The LLC pays VAT = 660 rubles. Revenue from the LLC after paying VAT = 3000 rubles. Gross value added (GVA) = 1000 rub. (cost + profit).
In the 1st and 2nd cases there is no difference.

3rd case. The individual entrepreneur purchased raw materials from an enterprise with special tax liability (which pays VAT).
1. An individual entrepreneur with a simplified taxation system (STS) purchased timber from an enterprise with a general taxation system (GTS), i.e. pays VAT at a price including VAT of 1220 (price without VAT 1000 rubles + VAT 220 rubles). The price is higher because the company pays 18% VAT.
2. Having made boards from it, the individual entrepreneur increased the price by 1000 rubles, and received the price of his goods 2220 rubles. (1220 rub. +1000 rub.) (Final price excluding VAT).
3. The LLC purchased these boards from an individual entrepreneur at a price of 2220 rubles, manufactured joinery, increasing the price without VAT by 1000 rubles, and received the price of its goods for 3220 rubles. without VAT. But since he is obliged to pay VAT 18% of the proceeds, the price including VAT will be 3930 rubles.
The LLC pays VAT 710 rubles. Revenue from the LLC after paying VAT = 3220 rubles. Gross value added (GVA) = 1000 rub. (cost + profit).

In the 2nd and 3rd cases, the LLC purchases goods from the individual entrepreneur. When receiving the same income, VAT is 1000 rubles, in the 3rd case, the LLC pays VAT on 50 rubles. per unit (710-660) more.
In addition, in the 2nd case, the LLC is forced to increase the selling price including VAT by this amount, which makes the goods in market economy less competitive.

But if in the 3rd case the individual entrepreneur sells the boards to the LLC at a price of NOT 2220 rubles, but 2000 rubles. (having found an opportunity to reduce costs or due to a smaller planned profit), then for the LLC there will be no difference in price.

VAT can be considered one of the most important taxes for the country’s budget and the most difficult to understand. These difficulties in understanding the very essence of VAT cause calculation difficulties tax amounts and control over their payment by the state. VAT quickly turned from an element tax theory into a real element of taxation, successfully applied in practice.

It will not be possible to talk about VAT in one article; there are too many nuances to consider. Today we will try to highlight the main points regarding this tax, and then in separate articles we will examine in detail problematic issues related to this topic.

Historical information about VAT

Most countries that now have VAT introduced it in the 70-80s of the 20th century, and this process was really rapid. This is the only tax in the entire history of mankind that so quickly turned from theory into reality. Now in these countries a third tax revenue The state budget consists precisely of the revenues of this tax. In Russia, VAT became a reality a little later - from the beginning of 1992.

What is the reason for such wide distribution? There are several reasons, let’s highlight the main ones:

• the tax is indirect, that is, it is paid in fact by the end consumer, not the manufacturer;
• broad tax base, since VAT is paid on almost all goods (as well as works/services);
• VAT forms the basis of regular revenues to the state budget, which increase along with rising prices;
• the state, by collecting VAT, in this way receives part of the income from the added value at each stage of the production and distribution chain, and the final result does not depend on the number of links in this chain - it does not matter how many intermediate producers / sellers are involved in the chain.

The special importance of tax revenues from VAT for the state budget is difficult to overestimate - the tax is really important. Control over its calculation and payment is built very strictly by government agencies, so every individual entrepreneur should clearly know the answer to the question: should he pay VAT or not?

What you need to know about VAT

Many beginning entrepreneurs really often wonder: do they need to pay VAT? And if necessary, how to calculate it without making mistakes? IP using general mode When paying taxes you have to pay VAT. But those who use, or Unified Agricultural Tax, do not pay VAT, since the special regime exempts them from this tax. We will talk about the fact that there are exceptions to this exemption in a separate article. Today we will talk about.

What is VAT and how is it calculated? According to the tax classification, VAT is indirect tax, therefore, it is problematic to understand the mechanism for collecting it by the state. Even an entrepreneur who simply works, for example in trade, sometimes finds it difficult to calculate the amount of VAT that he must transfer to the state budget. For large companies, whose activities are extremely diverse, the issue of calculating and accounting for VAT is even more complex.

A serious problem lies in the very concept of “added value”. What it is? This is the cost that a manufacturer (if we are talking about the production stage) or an entrepreneur (if we are talking about the distribution stage) adds to the cost of raw materials / materials or goods / products that they bought to create a new product / service.

But let's not go into theory, let's start in order. To calculate VAT you need to know:

• which business transactions are taxed and which are not;
• how to calculate the value tax base;
• at what rate is the tax calculated in each possible case;
• when it is necessary to accrue tax for payment;
• how to calculate tax deduction amounts and how to use them.

Only the Tax Code of the Russian Federation can answer all these questions.

Objects of taxation

Objects of taxation are listed in Art. 146 – see details there. In short, the following falls under VAT:

• sale of goods/works/services on the territory of the Russian Federation;
• transfer of goods/works/services for own needs;
• construction and installation work performed for own consumption;
• import of goods into the country.

It is also important to know that transactions listed in clause 3 of Article 39 of the Tax Code of the Russian Federation, as well as sales, are not considered subject to VAT. land plots and their shares. Transactions that are not subject to tax are combined into the list of Art. 149.

Place of sale

To calculate VAT, it is important to determine where a particular transaction was carried out, since VAT is paid only on those transactions, the place of which is recognized as the territory of the Russian Federation.

What criteria are used to determine the place of sale? Everything here is quite simple, since the territory of the Russian Federation will be recognized as a place of sale (Article 147) if any of the following conditions are met:

• the goods are located on the territory of the Russian Federation, their shipment / transportation to this moment not produced;
• the goods are located on the territory of the Russian Federation at the time of shipment/transportation.

The territory of the Russian Federation also means the territory falling under the jurisdiction of the Russian Federation.

As for the implementation of works/services, similar conditions for them, when the territory of the Russian Federation will be recognized as the place of implementation, are presented in Art. 148. How to confirm the place of sale of services: here the text of the contract, which is concluded with a Russian or foreign person, as well as documents that serve as confirmation of the provision of the service, come to the rescue.

The tax base

The basis for calculating VAT, in fact, is the value of the object of taxation, that is, proceeds from the sale of goods (works / services), which is calculated on the basis of contract prices. If this value was initially expressed in foreign currency, then this amount must be converted into rubles - calculations are made at the Central Bank exchange rate, which was set on the date the tax base was determined. How the tax base for other transactions is calculated is described in Art. 154-162.

Example 1:

- in the case when an individual entrepreneur receives an advance payment (full or partial) on account of an upcoming delivery, then for this operation he considers the tax base as the amount of payment received, including VAT;

— in a situation where an individual entrepreneur sells goods supplied in reusable containers (a certain deposit price is set for it), the VAT base is determined by the entrepreneur as the cost of the product without taking into account the deposit prices;

— when importing goods into the customs territory of the Russian Federation, to calculate the tax base, the individual entrepreneur adds up the customs value of the goods, customs duties payable and excise taxes.

At what point is the tax base determined? The earliest of the two dates is taken here:

• day of shipment of goods / provision of services;
• day of payment (full / partial) for future deliveries of goods / provision of services.

Example 2:

The individual entrepreneur is engaged in cargo transportation services. 23Aprilhe provided services to Romashka LLC, 26Aprilthe company paid for his services. The earliest date in this example is 23April– day of service provision. It is on this date that the individual entrepreneur must calculate the tax base.

If the situation had been different: Romashka LLC ordered goods transportation services from the individual entrepreneur and paid the invoice on April 23, the services themselves were provided to the individual entrepreneur on April 26. In this case, the earliest date is the date of prepayment for future services - April 23.

Special cases of determining the moment of the tax base are indicated in Art. 167.

VAT tax rates

There are several rates for VAT: 0%,20 %, 10%, 20/120 And10/110 . Rate in20 % is considered general and applies to most transactions, other rates are used to calculate tax in individual cases (Article 164 of the Tax Code of the Russian Federation).

Thus, a 0% rate is provided for goods for export, work and services for loading/transporting export goods. The rate of 0% does not mean that VAT is canceled on these transactions: you also need to submit a declaration to the tax authorities, just the amount of VAT payable on these transactions will be zero.

A rate of 10% is provided for certain groups of goods. These include: food and children's products, domestic and imported medical products, periodicals and books, as well as some other transactions.

Bets in the amount20/120 And10/110 used in some cases according to Art. 154, 155, 161 and 162, when the amount of VAT is determined by the calculation method.

Using a tax deduction

The buyer, having paid VAT to the seller, has the right to use tax deduction, that is, reduce total amount his tax to be paid (Article 166). In the most general form, this means that you can deduct from the tax those amounts of VAT that the individual entrepreneur paid to his suppliers when purchasing raw materials, goods, services, etc. from them. What does this mean?

And also ask your questions in the comments below the article.

Individual entrepreneurs have nothing against working with legal entities, but LLCs often resist such cooperation. What is the reason, what risks do they see for themselves? legal entities in a relationship with an individual entrepreneur? Why might such cooperation be unprofitable for an LLC? Are there ways to level negative points so that all objections are removed? What can an individual entrepreneur do for this?

Most often, LLCs raise two blocks of objections to working with individual entrepreneurs:

• psychological
• and economic.

Let's consider the “stumbling blocks” between individual entrepreneurs and LLCs and possible ways to overcome them.

“IP is not serious”

The organizational and legal form of a legal entity is considered more complex compared to individual entrepreneurship. Beginning businessmen usually register as individual entrepreneurs because they are afraid of a more responsible attitude to accounting reporting, difficulties in managing cash, and some aspects of registration. For IP It is not necessary to have your own accountant, cash register, or even a bank account. Not all individual entrepreneurs get a seal for their enterprise, because the law does not oblige it to be used. When making payments, they do not always have to issue an invoice to the counterparty. No one can prevent an individual entrepreneur from stopping his activities at any time. And most importantly, individual entrepreneurs most often use special tax regimes.

In its turn, OOO considers his degree of responsibility higher. A legal entity has its own accounting department. The founders of an LLC cannot calmly dispose of the proceeds, but only cash them out by legal means and receive dividends. In the vast majority of cases, LLCs are VAT payers. Therefore, legal entities prefer to cooperate with companies of “equal” status.

How to overcome objections from individual entrepreneurs and LLCs

If it’s just a matter of psychological distrust, then overcoming it is not so difficult. The most important concern of counterparties, from which mistrust in individual entrepreneurs needs to be removed, is the financial responsibility of individuals.

“What if the individual entrepreneur closes without fulfilling its obligations?”

On the one hand, it is true that it is much easier for an individual entrepreneur to terminate activities than for an LLC, and the liability to tax authorities at the same time less. But, on the other hand, an individual entrepreneur is a specific person who has a passport and registration, so he will not be able to disappear without a trace, even after closing the enterprise. In addition, the individual entrepreneur is financially responsible with all his property, and not authorized capital, like LLC. Usually this is in financially is expressed in a larger amount than the minimum for a legal entity of 10 thousand rubles. Therefore, in case of unfulfilled financial obligations You can recover much larger amounts of money from an individual entrepreneur than from an LLC, and it is much easier to sue an individual.

“It’s not profitable for us”

The language of numbers is much more specific and inexorable, and economic factor, unlike the psychological one, can become a more serious barrier to cooperation between individual entrepreneurs and LLCs. But even it is not absolutely insurmountable, which we will analyze below.

IP in the vast majority of cases, they are subject to special tax regimes that provide for different approaches to accounting reporting, and, most importantly, to the payment of value added tax. Entrepreneurs – individuals most often choose the simplified tax system, since this tax system has the least tax burden and is simpler financial statements. But VAT should be reimbursed for this tax system it is forbidden. Therefore, having paid for a product or service that contains VAT, the payer of the simplified tax system will have to reimburse the amount of this tax to the budget by filing the appropriate declaration. “Misappropriation” of the VAT amount is punishable by fines and penalties for late payment tax

OOO in turn, they mainly work according to common system(OSNO), where payment of VAT is mandatory. By purchasing goods with VAT from a supplier, the LLC will reimburse this 18% in the future through tax deductions. If they purchased a product or service from a VAT non-payer, they will not have the right to a tax deduction, and they will have to pay VAT on the entire turnover. If a product is purchased for subsequent sale, then its purchase without VAT is a direct loss. Therefore, they prefer not to break the “chain” of suppliers and buyers, each of whom is a value added tax payer.

Options for individual entrepreneurs

If an individual entrepreneur on a simplified tax system wants to cooperate with an LLC on OSNO, then it has several schemes under which a legal entity can agree to such a relationship.

1. Cooperation in the “VAT-free” area. Not every type of transaction requires the allocation of VAT. For example, rental of small premises, repairs, decoration, services of auditors, couriers, outsourcing, purchase of office supplies and other services are not subject to VAT. Therefore, an LLC may well enter into contracts with an individual entrepreneur for the provision of such services, without taking into account VAT.
2. Exclusive supplier. If an individual entrepreneur has no competitors in his niche in the local market, then the LLC cannot dictate terms to him regarding the taxation system. Sometimes it is more profitable for legal entities to receive services or goods from a local supplier, even without VAT, especially if they are small in volume, accounting for only a small percentage of the LLC’s turnover. This will not affect profits.
3. Issuing an invoice with VAT. A “simplified” entrepreneur can issue an invoice to an LLC, including VAT. Of course, you need to file a tax return for this tax. It would seem that there are no problems. However, LLCs have problems when trying to return such VAT from the budget. Most often, you will have to go to court for this, although, as practice shows, court decisions accepted in favor of legal entities.
4. Price reduction by the amount of VAT or more. To ensure that the LLC does not overpay the 18% VAT that is included in the price of the goods, and then expects their return within a year, an individual entrepreneur using the “simplified” can initially reduce the price. If a product is purchased by a legal entity not for resale, then it is even more profitable for it to initially pay less and not have to worry about returning it from the budget. Of course, this scheme is not suitable for subsequent sales, since in this case VAT will have to be paid, since it will not be possible to deduct it from the purchase amount. For such a scheme, individual entrepreneurs will have to reduce prices by more than 18%, because with the usual markup it is easier for a legal entity to interact with VAT payers according to proven schemes. But the savings may make them change their minds.
5. Transition to OSNO, opening an LLC. If transactions with LLC may be planned in large sizes and on an ongoing basis, it makes sense for individual entrepreneurs to think about changing the tax regime. Some entrepreneurs establish an LLC, without ceasing the activities of the individual entrepreneur, using each legal form for the best deals.

Of course, it is easier for enterprises to cooperate with “their own kind,” that is, those that are on the same tax regime, so that VAT does not stand between them as an economic obstacle.

However, discrimination on the basis of taxation must still be eradicated from the modern market.

A small business forced to adapt to the requirements of an LLC by switching to OSNO bears additional expenses on accounting and tax expenses, and due to inexperience, may be at risk of fines and penalties.

In turn, it is unlikely that legal entities will be able to develop successfully by completely refusing to cooperate with small entrepreneurs.

Therefore, a reasonable balance of interests is necessary, which can be achieved through negotiations and mutual compromises.

On numerous forums and blogs, debates continue about what is more profitable: to work on the general taxation system and pay VAT or to be a “simplified” person who does not pay this tax.

At first glance, the situation is clear: working on the simplified tax system without VAT is much more profitable. Firstly, the entrepreneur does not pay this tax, and this is a significant plus for his enterprise. Secondly, there is no need to keep records and submit reports for this tax. However, in reality, working with value added tax also has advantages. The Russian Tax Code is very democratic in the matter of choosing work with VAT or without VAT. Only you can determine what is more profitable for you. And our article, we hope, will help you with this.

Working on a general or simplified taxation system without VAT

First, let's find out in what cases an organization may not pay value added tax to the budget.

There are only two of them:

• the company applies the general taxation system and its revenue for the previous 3 calendar months no more than two million rubles;
• the company applies the simplified taxation system - a simplified taxation system or other special tax regimes: UTII, Unified National Economic Tax or the so-called patent system.

The first option is voluntary, that is, the enterprise can choose whether to work with VAT or not.

And in the case of “simplification” there is no value added tax in principle.

True, here it is necessary to make some reservation: those companies that import products into Russian territory are not exempt from paying tax. Companies selling alcohol and tobacco products are also required to pay VAT. In addition, an organization can be a tax agent in relation to its business partners, VAT payers.

Work with or without VAT? The answer to this question mainly depends on what you do. When selling goods at retail, a company can buy them from so-called “simplifiers.” In this case, it does not matter whether the tax is highlighted in the invoice. Wholesale buyers are a completely different matter. Such companies want to have input tax in order to receive a deduction.

Let's imagine a situation: a company operating on OSN has decided to be “exempt” from VAT. What is needed for this?

Collect and submit documents to the Federal Tax Service:

• notification of the exercise of your right to exemption from this tax;
• extract from the balance sheet of the enterprise;
• a copy of the journal with invoices (received and issued) for the previous reporting period;
• extract from the sales book;
• extract from KUDiR.

This package of documents is provided no later than the 20th day of the month, starting from which your company wants to operate without VAT.

Disadvantages of VAT

Let's start comparing the advantages and disadvantages of working with VAT with the disadvantages. The main disadvantage that opponents of the VAT appeal to is the need to pay this tax. VAT is considered one of the most complex taxes, having all-Russian, federal significance.

An organization that contributes value added tax to the budget is required to maintain, in addition to accounting, tax accounting.

This is a huge amount of work: checking suppliers, reconciling incoming primary documentation, maintaining books of sales and purchases, preparing and submitting tax returns, etc.

If a company operates under a “simplified” tax system with the object of taxation “income minus expenses,” it is profitable for it to buy goods from a VAT payer: in this case, input tax can be counted as part of its expenses.

And if the object of taxation is “income”, then VAT deduction will not be possible. In this case, even having an invoice will not help. Firms operating under OSN and being VAT payers are “lucky” to communicate with more qualified and picky tax authorities. “Accident” here, of course, is very conditional: any mistake by a tax payer can be fraught with large penalties and fines for him. “Simplers” will not be able to make such mistakes in principle.

Advantages of working with VAT

Let's move on from the disadvantages of working with VAT to the advantages. It is no secret that many large companies prefer to choose business partners who pay VAT. It follows from this that if you work without VAT, then the risk of being rejected by a supplier or potential client increases. You have to think about increasing your competitiveness: your advantages must “outweigh” the fact that you do not pay VAT.

The main advantage of working with VAT is that the company can count on a tax deduction for all purchased services or goods.

It is worth noting that VAT can only be refunded up to the amount that was paid to the supplier.

If a company operating on a general system purchased goods without VAT, then it will not be able to deduct the tax. Thus, this advantage from working with VAT will be significant only in one case: if the price of products from a supplier working with tax is less or the same as that of a company working without VAT.

VAT agent

IN tax practice There are cases when VAT is paid not by the taxpayer, but by another company that is a tax agent for VAT. The responsibilities of this entity are listed in Article 161 of the Russian Tax Code. In most cases, the taxpayer appears for his tax agent source of income.

The agent pays tax from the amount that needs to be transferred to the taxpayer. The obligation to withhold tax in order to then transfer it to the state budget follows from an agreement between two parties - the payer and the tax agent.

In fact, the tax agent performs intermediary functions, linking yourself, the state and the taxpayer into a single chain. This scheme is necessary because under certain conditions the taxpayer cannot fulfill his obligations himself.

For example, the following companies act as tax agents:

• who purchased goods or services from a company that is not registered for tax purposes in the Russian Federation;
• who bought state property from government agencies, bankrupt or confiscated property;
• intermediaries of foreign companies that are not Russian tax residents.

The transaction between the two parties is formalized by an invoice addressed to the tax agent. In this case, the sample invoice without VAT is not suitable: the tax must be highlighted. There are only 5 days to do this after the transaction is completed.

The fields "Seller", "Seller's Address" and "TIN" are filled in with the supplier's data. In the fields related to the buyer, indicate the details of your company. Register the invoice in the company's document flow. No later than the 25th day of the month following the reporting quarter, submit to tax return V in electronic format. At the same time, do not forget to fill out section 2. The duties of the tax agent are completed.

In our article we looked at the advantages and disadvantages of working with and without VAT. A company that operates without VAT does not pay it and does not keep full tax records. At the same time, working with VAT has many advantages. One of them is the opportunity to collaborate with a wider range of business partners.