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How to choose the right niche and topic. Choosing a profitable business niche from scratch: how to find a free one. What is a niche in business

The abbreviation VAT is very often used both in everyday life and in the conduct of business. entrepreneurial activity However, the essence of the value added tax in a nutshell is difficult to define. Even experienced accountants and managers cannot always explain what VAT is in simple terms and why it is needed. However, in order to understand the functions of VAT in the tax system, one need not delve into the nuances of calculations and legislative norms.

We will tell you what VAT is in simple words - decoding the definition, the mechanics of accrual and collection, recent changes in tax legislation.

VAT - what is it?

Value Added Tax (VAT) is a fee paid in favor of the state from the cost of goods, work, services at each new stage of production upon sale. The very legislative concept in Chapter 21 of the Tax Code of the Russian Federation demonstrates the essence of the tax quite accurately. From the point of view of an ordinary consumer, it is analogous to a sales tax or turnover tax. The difference is that if the seller also pays VAT, the buyer, when calculating the total amount of his tax obligations to the state, has the right to deduct from the tax the amount that he paid his supplier for goods, works or services subject to VAT.

The following main distinctive features value added tax:

this is an indirect tax, it is already included in the cost of the goods;
as a result, the consumer pays VAT, since when determining the cost of products, the seller adds it to the cost of goods, works or services;
the consumer pays the entire amount of VAT when purchasing goods, however, the state begins to receive it earlier than this moment, since the tax on its part of the value added to the cost of purchased materials, raw materials, works or services is paid by everyone who participates in the production process at the stage of selling the product produced by him .

In this way, several goals are achieved: the tax is evenly distributed among all producers and sellers, the risks of non-payment of the fee are reduced, export goods are exempt from all national indirect taxes, which contributes to their competitiveness, since exporters are exempt from VAT and can return the tax paid to their suppliers .

Definition and calculation

In accordance with the norms of the Tax Code of the Russian Federation, VAT is also calculated, the formula looks quite simple:

Sales VAT = tax base (cost of goods) x VAT rate.

However, we must not forget about the deduction of "input" VAT, which has already been paid to suppliers. Thus, the following formula is obtained:

VAT payable \u003d VAT determined during sale - VAT deductible.

Simple example: The organization carries out tailoring and sale of blankets, for which it acquires fabric and threads. For sewing blankets, you need fabric in the amount of 90 rubles and threads in the amount of 10 rubles. When they are purchased, the company already pays VAT, it is included in the cost of goods by suppliers, this is input VAT. Thus, the previous manufacturers are paid 100 rubles for materials, which already include VAT - 18 rubles.

Next, the company carries out the production of a new product, while attracting workers who are paid wage in the amount of 20 rubles (with all deductions), other expenses in the amount of 10 rubles are made. Of course, the company as a result of the sale of products intends not only to cover them, but also to make a profit. Therefore, the price for blankets is set at 150 rubles. Thus, the company becomes a VAT payer, as it accrues value added. The base for calculating the tax is 150 rubles. VAT charged to buyers will be 150x18% = 27 rubles. As a result, it turns out that the organization will sell blankets at a price of 150 + 27 = 177 rubles.

When the funds from the sale are received, the organization will have to pay VAT. But it is necessary to pay not 27, since the input VAT has already been paid when buying raw materials, but 27-18 = 9 rubles.

The taxpayer independently calculates VAT in the declaration - the reporting document on which taxes are paid. The calculator for calculation can be found online on specialized sites, however, only official resources, for example, the website of the Federal Tax Service of the Russian Federation, deserve trust.

Changes and latest news

In the summer of 2018, the State Duma of the Russian Federation adopted in the third reading a draft law on raising the VAT rate to 20%. Accordingly, Chapter 21 of the Tax Code of the Russian Federation "Value Added Tax" will be subject to changes. VAT in 2018 is still 18%, but after the law comes into force (the document requires the signature of the President of the Russian Federation), the tax will increase by 2% in 2019.

In this case, the value added tax rate in Russia will catch up or even exceed those in many developed countries. For example, in the UK and France, the VAT rate is 20%, and in Germany 19%. In countries such as the USA, Canada and Japan, VAT is not applied at all, instead a sales tax is applied.

What is VAT refundable

In some cases, the amount paid for VAT can be returned. This is very complex issue, which causes mass conflict situations. We can only say that most of them are decided in favor of entrepreneurs.

VAT refund is a specific process, the consequence of which is that the taxpayer receives a part of the paid tax on his current account. For legal entities this becomes possible when at the end of the tax period the amount of VAT is greater than the amount of tax paid to the budget.

But this does not mean that in this case the funds will necessarily be credited back to the taxpayer's account. To complete this procedure, you will need to do certain steps.

How to return VAT - step by step instructions

VAT refund is carried out according to the following scheme:

How to pay VAT?

Quite often, the main reason for refusing to return VAT is the inconsistency of data and incorrect filling of documents. In certain cases, the reason for this may be an incorrect indication of the address (actual instead of legal), or confusion in indicating the numbers of payment documents.

The court allows the use of corrected documents, but it is much easier to do everything right from the beginning.

It is recommended to keep records in such a way as to separate taxable and non-taxable transactions. If such a separation is not done, then it will be almost impossible to return VAT, since this procedure is tied to certain types of work.

You can also expect a refusal to those organizations whose counterparty has not paid VAT.

Legislative regulation

The regulatory framework by which the issue of accrual and refund of VAT is regulated includes the following legislative acts:

Chapter 21 of the Tax Code of the Russian Federation;
Decree of the Government, which was issued under the number 1137, and which refers to the norms for filling out documents necessary for paying tax;
Customs Code of the Customs Union.

It also includes an agreement signed by members Customs Union on the customs value of goods that are transported across the borders of countries.

To get a chance for a VAT refund, it is imperative to comply with the rules for its payment and follow the correct filling of documents.

A summary of the essence of value added tax and the principles of this - in this video:

VAT (value added tax) is the most difficult tax to understand, calculate and pay, although if you do not delve deeply into its essence, it will not seem very burdensome for a businessman, because. is an indirect tax. An indirect tax, unlike a direct tax, is passed on to the final consumer.

Each of us can see the total amount of the purchase and the amount of VAT on the check from the store, and it is we, as consumers, who ultimately pay this tax. In addition to VAT, indirect taxes are excises and customs duties. To understand the complexity of VAT administration for its payer, it will be necessary to understand the main elements of this tax.

Elements of VAT

Objects of VAT taxation are:

sale of goods, works, services on the territory of Russia, transfer of property rights (the right to claim debt, intellectual property rights, lease rights, the right to permanent use of a land plot, etc.), as well as the free transfer of ownership of goods, results of work and provision of services. A number of transactions specified in paragraph 2 of Article 146 of the Tax Code of the Russian Federation are not recognized as objects of VAT taxation;
performance of construction and installation works for own consumption;
transfer for own needs of goods, works, services, the costs of which are not taken into account when calculating income tax;
import (import) of goods to the territory of the Russian Federation.

Goods and services listed in article 149 of the Tax Code of the Russian Federation are not subject to VAT. Among them there are socially significant ones, such as: the sale of certain medical goods and services; nursing and childcare services; sale of religious items; passenger transportation services; educational services etc. In addition, these are services in the securities market; Bank operations; services of insurers; legal services; sale of residential buildings and premises; utilities.

VAT tax rate can be equal to 0%, 10% and 18%. There is also the concept of "settlement rates" equal to 10/110 or 18/118. They are used in the operations specified in paragraph 4 of Article 164 of the Tax Code of the Russian Federation, for example, when receiving an advance payment for goods, works, services. All situations in which certain tax rates apply are given in article 164 of the Tax Code of the Russian Federation.

Please note: from 2019, the maximum VAT rate will be 20% instead of 18%. Estimated rate instead of 18/118 will be 20/120.

Export operations are taxed at a zero tax rate; pipeline transportation of oil and gas; transmission of electricity; transportation by rail, air and water transport. At 10% rate - some foodstuffs; most goods for children; medicines and medical products that are not included in the list of the most important and vital; breeding cattle. For all other goods, works, services, the VAT rate is 18%.

Tax base for VAT in the general case, it is equal to the cost of goods, works, services sold, taking into account excises for excisable goods (Article 154 of the Tax Code of the Russian Federation). At the same time, articles 155 to 162.1 of the Tax Code of the Russian Federation provide details for determining the tax base separately for different cases:

transfer of property rights (art. 155);
income under contracts of commission, commission or agency (Article 156);
in the provision of transportation services and international communication services (Article 157);
realization of the enterprise as property complex(Art. 158);
performance of construction and installation works and transfer of goods (performance of work, provision of services) for their own needs (Article 159);
import (import) of goods into the territory of the Russian Federation (Article 160);
when selling goods (works, services) on the territory of the Russian Federation by taxpayers - foreign persons (Article 161);
taking into account the amounts associated with settlements for payment for goods, works, services (Article 162);
when reorganizing organizations (Article 162.1).

tax period, that is, the period of time at the end of which the tax base is determined and the amount of tax payable for VAT is calculated is a quarter.

VAT payers recognized Russian organizations and individual entrepreneurs, as well as those who move goods through customs border that is, importers and exporters. Taxpayers working on special tax regimes do not pay VAT:, (except when they import goods into the territory of the Russian Federation) and participants in the Skolkovo project.

In addition, taxpayers who meet the requirements of Article 145 of the Tax Code of the Russian Federation can receive exemption from VAT: the amount of proceeds from the sale of goods, works, services for the previous three months, excluding VAT, did not exceed two million rubles. The exemption does not apply to individual entrepreneurs and organizations selling excisable goods.

What is a VAT deduction?

At first glance, since VAT must be charged on the sale of goods, works, services, it is no different from sales tax (on turnover). But if we return to its full name - “value added tax”, then it becomes clear that not the entire amount of sales, but only added value. Value added is the difference between the cost of goods sold, works, services and the cost of purchasing materials, raw materials, goods, and other resources spent on them.

From this it becomes clear the need to obtain a tax deduction for VAT. The deduction reduces the amount of VAT accrued upon sale by the amount of VAT that was paid to the supplier when purchasing goods, works, services. Let's look at an example.

Organization "A" purchased goods from organization "B" for resale worth 7,000 rubles per unit. The amount of VAT amounted to 1,260 rubles (at a rate of 18%), the total purchase price is 8,260 rubles. Further, organization "A" sells the goods to organization "C" for 10,000 rubles per unit. VAT on sale is 1,800 rubles, which organization "A" must transfer to the budget. In the amount of 1,800 rubles, the VAT (1,260 rubles) that was paid when purchasing from organization “B” is already “hidden”.

In fact, the obligation of organization "A" to the budget for VAT is only 1,800 - 1,260 = 540 rubles, but this is provided that the tax authorities deduct this input VAT, that is, they provide the organization with a tax deduction. Receiving this deduction is accompanied by many conditions, below we will consider them in more detail.

In addition to the deduction of VAT amounts paid to suppliers when purchasing goods, works, services, VAT on sale can be reduced by the amounts specified in article 171 of the Tax Code of the Russian Federation. This is VAT paid when importing goods into the territory of the Russian Federation; when returning goods or refusing to perform work or provide services; with a decrease in the cost of shipped goods (work performed, services rendered), etc.

Conditions for obtaining an input VAT deduction

So, what conditions must a taxpayer fulfill in order to reduce the amount of VAT on sale by the amount of VAT that was paid to suppliers or when goods were imported into the territory of the Russian Federation?

should be related to the objects of taxation(Article 171(2) of the Tax Code of the Russian Federation). It is not uncommon for the tax authorities to wonder whether these purchased goods will actually be used in transactions subject to VAT? Another similar question - is there any economic justification (focus on making a profit) when purchasing these goods, works, services?
That is, the tax authority is trying to refuse to receive a tax deduction for VAT, based on its assessment of the expediency of the taxpayer's activities, although this does not apply to the mandatory conditions for deducting input VAT. As a result, many lawsuits are filed by VAT payers for unreasonable refusals to receive deductions in this regard.
Purchased goods, works, services must be taken into account(Article 172(1) of the Tax Code of the Russian Federation).
Having a valid invoice. Article 169 of the Tax Code of the Russian Federation provides requirements for the information that must be indicated in this document. When importing, instead of an invoice, the fact of paying VAT is confirmed by documents issued by the customs service.
Until 2006, to receive a deduction, actual payment condition VAT amounts. Now, Article 171 of the Tax Code of the Russian Federation provides only three situations in which the right to a deduction arises in relation to the VAT paid: when importing goods; travel and hospitality expenses; paid by buyers-tax agents. For other situations, the turnover "amounts of tax presented by sellers" applies.
Discretion and caution when choosing a counterparty. About that, "" we have already talked about. Refusal to receive a VAT tax deduction may also be caused by your connection with a suspicious counterparty. If you want to reduce the VAT that must be paid to the budget, we recommend that you carry out preliminary check your trading partner.
Highlighting VAT as a separate line. Article 168 (4) of the Tax Code of the Russian Federation requires that the amount of VAT in settlement and primary accounting documents, as well as in invoices, be highlighted as a separate line. Although this condition is not mandatory for receiving a tax deduction, it is necessary to track its presence in the documents so as not to cause tax disputes.
Timely issuance of invoices by the supplier. According to Article 168 (3) of the Tax Code of the Russian Federation, an invoice must be issued to the buyer no later than five calendar days, counting from the date of shipment of goods, performance of work, provision of services. Surprisingly, even here the tax authorities see a reason for refusing to receive a tax deduction for the buyer, although this requirement applies only to the seller (supplier). The courts on this issue take the position of the taxpayer, reasonably noting that the five-day period for issuing an invoice is not prerequisite for deduction.
The integrity of the taxpayer. Here it is already necessary to prove that the VAT payer himself, who wants to receive a deduction, is a conscientious taxpayer. The reason for this is the same resolution of the Plenum of the Supreme Arbitration Court dated October 12, 2006 N 53, which defines the "defects" of the counterparty. Paragraphs 5 and 6 of this document contain a list of circumstances that may indicate the unreasonableness of the tax benefit (and the input VAT deduction is also a tax benefit)
Suspicious, according to YOU, are:

the impossibility of real implementation by the taxpayer of business transactions;
lack of conditions for achieving the results of the relevant economic activity;
transactions with goods that were not produced or could not be produced in the specified volume;
accounting for tax purposes only those business transactions that are associated with obtaining tax benefits.
These are such, quite harmless, at first glance, conditions as: the creation of an organization shortly before the completion of a business transaction; one-time nature of the operation; use of intermediaries in transactions; carrying out the transaction not at the location of the taxpayer.
Based on this decision, tax inspectors acted very simply - they refused to receive a VAT deduction, simply listing these conditions. The zeal of its employees had to be restrained by the Federal Tax Service itself, because. the number of "unworthy" of receiving tax benefits just rolled over. In a letter dated May 24, 2011 No. SA-4-9/8250, the Federal Tax Service notes that “... in the practice of tax control, there are cases when the tax authority, avoiding clarity in qualifying the circumstances of the taxpayer receiving unjustified tax benefits, limiting himself to references to paragraphs 1 , 5, 6, 10 Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation of October 12, 2006 No. 53 draws conclusions about the receipt by the taxpayer of unreasonable tax benefits. At the same time, other circumstances that clearly indicate that business transaction done are not taken into account.

Additional terms in order to receive a tax deduction for VAT, there may be a number of requirements of the tax authorities for the execution of documents (accusations of incompleteness, unreliability, inconsistency of the specified information are typical); to the profitability of the VAT payer; an attempt to requalify contracts, etc. If you are sure that you are right, in all these cases it is worth at least challenging the decisions of the tax authorities to refuse to receive a VAT tax deduction in a higher tax authority.

VAT on export

As we have already said, when exporting goods, their sale is taxed at a rate of 0%. The company must justify the right to such a rate by documenting the fact of export. To do this, along with the VAT declaration, a package of documents must be submitted to the tax office (copies of the export contract, customs declarations, transport and shipping documents with customs marks).

In order to submit these documents, the VAT payer is given 180 days from the date of placing the goods under the customs procedures for export. If during this period required documents are not collected, then VAT will have to be paid at a rate of 10% or 18%.

VAT on import

When importing goods into the territory of the Russian Federation, importers pay VAT at customs, which is calculated as part of customs payments (Article 318 of the Customs Code of the Russian Federation). An exception is the import of goods from the Republic of Belarus and the Republic of Kazakhstan, in these cases, the payment of VAT is processed at the tax office in Russia.

Please note that when importing goods into the territory of Russia, all importers pay VAT, including those working on special tax regimes (USN, UTII, ESHN, PSN), and those who are exempt from VAT under Article 145 of the Tax Code of the Russian Federation.

The import VAT rate is 10% or 18%, depending on the type of goods. The exception is the goods specified in Article 150 of the Tax Code of the Russian Federation, upon import of which VAT is not charged. The tax base on which VAT will be charged when importing goods is calculated as the total amount of the customs value of goods, customs duty and excise (for excisable goods).

VAT under USN

Although simplified people are not VAT payers, issues related to this tax nevertheless arise in their activities.

First of all, why don't taxpayers on OSNO want to work with suppliers on the simplified tax system? The answer here is that the supplier on the simplified tax system cannot issue an invoice to the buyer with allocated VAT, which is why the buyer on the OSNO will not be able to apply a tax deduction for the amount of input VAT. A way out here is possible in reducing the sale price, because, unlike suppliers on, simplistic people should not charge VAT on sales.

Sometimes simplistic people still issue an invoice to the buyer with VAT allocated, which obliges them to pay this VAT and submit a declaration. The fate of such an invoice may be debatable. Inspections often refuse buyers to receive a tax deduction, referring to the fact that simplistic people are not VAT payers (at the same time, they actually paid VAT). True, most courts in such disputes support the right of buyers to deduct VAT.

If, on the contrary, a simplistic person buys goods from a supplier working for OSNO, then he pays VAT, for which he cannot receive a deduction. But, according to article 346.16 of the Tax Code of the Russian Federation, a taxpayer on a simplified system can take into account input VAT in his expenses. This concerns, however, only payers, tk. on the simplified tax system Income does not take into account any expenses.

VAT declaration and tax payment

The VAT declaration must be submitted at the end of each quarter, no later than the 25th of the next month, that is, no later than April 25, July, October and January, respectively. Reporting will only be accepted in electronic format if it is presented on paper, it is not considered to be submitted. Starting from the report for the 1st quarter of 2017, the VAT return is submitted according to the updated form (as amended by the Order of the Federal Tax Service of December 20, 2016 N MMV-7-3 / [email protected]).

The procedure for paying VAT is different from other taxes. The amount of tax calculated for the reporting quarter must be divided into three equal parts, each of which must be paid no later than the 25th day of each of the three months of the next quarter. For example, according to the results of the first quarter, the amount of VAT payable amounted to 90 thousand rubles. We divide the tax amount into three equal parts of 30 thousand rubles each, and pay it on the following dates: no later than April 25, May, June, respectively.

We draw the attention of all LLCs - organizations can pay taxes only by bank transfer. This is a requirement of Art. 45 of the Tax Code of the Russian Federation, according to which the obligation of the organization to pay tax is considered fulfilled only after the presentation of a payment order to the bank. The Ministry of Finance prohibits the payment of taxes by LLC in cash.

If you did not manage to pay taxes or contributions on time, then in addition to the tax itself, you will also have to pay a penalty in the form of a penalty fee, which can be calculated using our calculator.

VAT is considered to be the main type of indirect taxes, which is widely used almost all over the world after the massive abolition of the turnover tax. The essence of this tax is that the base of this tax is the created value added. In this article, we will consider in simple terms what VAT is, why it is needed and how to work with it.

VAT, explaining this concept as simply as possible, is a value added tax, that is, a tax on the value that appeared as a result of any actions (less often - inaction) of the company. Such a tax appears only when there is an added value. This means that if the enterprise has not created added value (the final cost of production is less than the initial value), then there are no VAT obligations.

So, for example, a company bought 100 kg of flour for 50 rubles. per kg and baked 80 kg of bread for 150 rubles. per kg. The company bought products for 5,000 rubles, and sold them after processing for 12,000 rubles. Consequently, an added value of 7,000 rubles was created. and it is this added value that will be the tax base for the company:

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What is VAT for?

Any tax is necessary for the state in order to receive money for its activities and ensure the fulfillment of its obligations. Although it is difficult to administer VAT, it is much more difficult to avoid paying this tax than direct taxes. In addition, VAT does not affect the structure of the economy as much as a turnover tax or income tax, since it does not limit the number of transactions in the production of a good or service, which is especially important for modern complex goods and services. That is why VAT has become universal and almost no jurisdiction can do without this tax.

A number of goods and services the state, given their social purpose, exempt from VAT or tax at a preferential or zero rate (in this case, reporting is required). Preferential categories (rate of 10%) include, in particular, children's and medical goods. And at a zero rate, services for international transportation are taxed:

How to work with input VAT

Input VAT is the amount of tax that your company pays “at the input”, that is, when purchasing a product or service from a counterparty. Such VAT will be charged if you purchase goods and services. The tax itself is administered by your counterparty, and you can see its amounts by examining the invoice or other documents for a product or service.

At the same time, it is possible to receive a tax deduction, because VAT is the difference for a business entity between the “input” VAT and the “output” VAT. To do this, you need to receive a full set of relevant documents from the counterparty (invoices, etc.), and goods, services or works must be purchased for transactions subject to VAT.

What is a VAT refund

With the concept of this tax is invariably associated with the concept of its return. The most common reason for a return is the export of the product, as the importing country imposes its own VAT on the product. In order to avoid double taxation, the exporting country returns the previously paid amount of this tax. In practice, unfortunately, it is not uncommon for such a return to occur at the wrong time, which makes VAT refunds a specific area of tax law.

Consider the following example: an enterprise has manufactured products for 25,000 rubles. and paid VAT in the amount of 4,500 rubles. After that, the company found a counterparty and exported products to Germany, paying VAT there in the amount of 4,750 rubles. Thus, the Russian VAT in the amount of 4,500 rubles. must be returned. To do this, you must submit an application, as well as pass a cameral tax audit for the absence of signs of fictitiousness in the transaction. Despite the fact that the Tax Code of the Russian Federation quite clearly regulates the terms for the return of funds, they are often violated, which leads to significant financial waste associated with a lack of working capital.

Value Added Tax is a fairly complex tax, considering high cost money in the Russian Federation leads to certain losses for business, both in terms of its administration, and regarding possible conflicts with the tax authorities. At the same time, a competent accountant knows how to draw up reports in such a way as to minimize possible claims from fiscals.

Every family has its own budget, which people manage at their own discretion. At the same time, any state also has its own funds, which, as a rule, are spent on the development of cities. Where does the money come from? This amount is formed from taxes, and among them there is one confusing option, from which even experienced accountant will tremble. What is VAT in simple words? This type tax is quite difficult to understand, however, it is very important for the formation of the budget of each individual state.

Thanks to its existence, government bodies can regulate the flow of funds to the treasury, not only from legal entities, but also from non-residents of the country where goods are produced or sold, services are provided. Let's try to understand this complex intricacies and understand, if not all, then at least some of its features.

Characteristic feature of the tax

This type of tax is used in many developed countries of the world, including Russia. Here it was introduced for the first time since 1992. The transfer of this tax to the budget, as well as its payment, is regulated by numerous normative documents. But what is characteristic, there is one feature that can confuse many people.

Those who are familiar with the conduct of public affairs know that the so-called duty may be direct or indirect. Value added tax refers to the second option. At the same time, if we state the essence of VAT in simple words, then it all comes down to the fact that only entrepreneurs seem to be subject to it. But ultimately, it is the citizens of the country who pay this tax in the course of shopping in stores or ordering the necessary services. How is this possible?

Other features include the following:

The tax is levied only once on each product, as a result of which its final cost is reduced.
For exporters, this is a chance to be exempt from paying national tax.
In most cases, before any product gets from the manufacturer to the final consumer, it bypasses several intermediaries. Due to the VAT payment scheme, the state has less risk in terms of tax evasion. And somewhere you still can not do without paying.

Many have heard about this tax, but not everyone is exactly aware of what it is and what nuances there may be. Meanwhile, everything here is not as simple as it might seem at first glance. And any domestic citizen is at least to some extent interested in what is VAT in simple words in Russia? But let's not get ahead of ourselves and recall another type of tax that existed earlier.

Alternative option

Back in 1930, when the Union of Soviet Socialist Republics (USSR) still existed, taxes on turnover began to be levied. But after the reforms during the NEP period, thanks to the efforts of the Soviet government, the excise system was restored. However, it did not last long, and soon the turnover tax became popular again.

This type of taxation was calculated as the difference between wholesale and market value. The subjects of taxation were organizations and entrepreneurs in almost any industry. Moreover, the volume of this taxation was proportional to the turnover of any company. At that time, the tax pursued the main goal - to start vertical integration. That is, the production of goods within the company itself was a more profitable solution than their purchase from suppliers from outside.

Before understanding what VAT is in simple words for Russia, it is worth considering that at that time there was a mechanism in place that made it possible to receive a large amount of tax. This was a huge part of the state budget and allowed for a stable and sustainable replenishment of the state treasury. After all, in fact, the tax was an obligation, which is strictly regulated by the terms and form of payment.

Now it has been replaced by another type of taxation - VAT. It is worth going to study it.

Simple VAT

So popular all over the world, three letters are deciphered as follows: value added tax. We all go to stores for groceries or other goods and involuntarily observe these magic three letters in the price tags. But after all, we do not produce this product and do not sell it through outlets- we just buy for our needs.

What is VAT in simple words? The decoding is as follows - this is the part of the funds that constitutes the value added tax of the goods or services, which is sent to the state budget. If it is not created by the enterprise, that is, the final price for the goods is less than the initial cost, then there are no VAT obligations.

There is no escape from the payment, since it is due to this and other taxes that the treasury of any state is replenished. And it is worth noting that this is the most powerful source of funding.

VAT calculation

To determine the amount that will go to the state budget, you must first determine the tax base and tax deduction. The difference between the accrued VAT and the deduction will be exactly the same amount that companies are required to transfer to the treasury.

The price of any product (C) consists of the cost price (A) and the tax amount (B), that is, C=A+B. In this case, the tax itself is calculated by multiplying the value of the goods (A) by the interest rate (K) on the tax and dividing by 100: B=A*K/100.

The best way to understand the whole essence of VAT in simple words is through an example. Let's say the price of a product is 700 rubles, the VAT rate is defined as 18%, and then it will be 126 rubles. That is 700*18/100=126. The total cost will be equal to: 700 + 126 = 826 rubles.

In some cases, it is possible to calculate VAT when the final cost of the goods (C) and the tax percentage are known: B=C/(100+K)*K. For example, C=300 rubles, and K=18%, then B=300/(100+18)*18=45.76 rubles - this is the amount that will be credited to the state budget.

If operations are to be performed great amount, then no one is immune from making a simple mistake in calculations. For such cases, simple and convenient online calculators are provided.

Reporting

All taxpayers must submit reports to the tax authorities at the end of the quarter. This is done no later than the 25th day of the next month following the expired quarter. Otherwise, on personal experience you can find out what VAT is in simple words. When filling it out, you need to define the following values:

VAT tax base.
Input VAT (deduction amount).
tax refundable.

VAT tax base- these are all funds that were received in the course of the sale of manufactured products, the provision of services or works.

Under minus means those funds that are paid to suppliers, which is the total cost of goods or services purchased by the company. This amount may slightly reduce the tax rate according to the declaration. Only for this, certain conditions must be met:

All purchased goods are subject to tax.
The company has correctly completed invoices, as well as invoices that are provided by suppliers (here it is also necessary to monitor the correctness of filling out the documentation).
All products of the company have been booked.

For manufacturers, the tax deduction is the most expensive, and therefore it is necessary to take into account every little thing. For example, if the goods are purchased without presenting an invoice, then you should not hope for a VAT deduction.

Now what about compensation VAT in simple terms. If during the calculations the value of the tax deduction exceeds the amount of the calculated tax, then this is the actual tax overpayment. The company is then entitled to a refund of the overpayment from the state treasury. To do this, you need to drop the declaration, after which tax office careful calculations will be carried out, and the presence of all required documents and correct completion. Then a decision will be made to grant or reject the request.

Benefits of VAT

Each entrepreneur reacts to such a tax in his own way. If you wish, you can both see the pros and find the cons. Representatives of large or small businesses have plenty to choose from. The main advantage of VAT is as follows.

Companies can count on a tax deduction, and here we can talk about the dual nature. Not only the company itself, but also all its partners who purchase goods or services are entitled to VAT refunds. But only within the amount spent. What is a VAT deduction, in simple words, was discussed above.

Majority large companies prefer to deal only with those business partners who pay value added tax. If the entrepreneur avoids tax, this will put him in a disadvantageous light, since there is a high probability of refusal from potential customers or suppliers.

Therefore, you begin to involuntarily think about increasing your competitiveness. Moreover, it should be noted that any large organization is the main source of funding for any state.

There are disadvantages too

Now it is worth touching on the shortcomings, without which, unfortunately, it can not do. Perhaps in our world everything has strengths and weak sides, and nothing else. The main drawback, according to all opponents of VAT, is the need to pay it. In addition, all companies that replenish the state budget in this way, in addition to accounting, should also conduct tax. And this is just a huge front of work:

you need to check the suppliers;
verify incoming primary documentation;
keep books of sales and purchases;
prepare and submit tax returns (and much more).

These shortcomings and some others will say everything about VAT in simple words.

For those organizations operating under a simplified taxation system, where the object of taxation is income minus expenses, it is more profitable to deal with suppliers who pay VAT. Then the input tax can be regarded as a certain part of own expenses.

In the case when the object is the income of the enterprise, then it is impossible to deduct VAT and even the invoice does not contribute to this. Tellingly, firms whose activities are related to the general taxation system often contact tax officials, and in most cases they are very picky.

Rarely, when it can lead, and so any mistake on the part of the taxpayer turns into not only penalties, but large penalties. Those who work on a simplified basis are already insured against such risks.

Why is VAT needed?

In simple words it can be said that any state needs financial resources that allow him to carry out his direct duties. The source of funding, as is now clear, is taxes, including VAT. Moreover, this income is stable and constant. There is a whole article in the tax code that is devoted to indirect tax, and it is paid by almost all citizens of each particular state:

Representatives providing various services to the population (construction, repair, rental of real estate).
Sellers of consumer goods.
Persons responsible for the production of goods.
ordinary consumers.

That is why VAT is classified as an indirect type of tax. The state, in order not to incur financial losses, needs to administer any type of tax. This process is complicated, but it is much more difficult to avoid paying them.

A distinctive feature of the VAT from the turnover tax or income tax is that it does not affect the economy of the state in any way. That is, the number of transactions in the course of the production of goods or the provision of services is not limited by anything. And this is especially important for modern products or services that are complex. For this reason, VAT has become the most common type of tax in many countries around the world.

VAT rate

To finally understand what VAT is, in simple words, it is necessary to give an explanation about interest rates. And according to the tax code Russian Federation, there are three of them:

The 0% rate is applicable for products shipped outside the country of origin, including international shipping services. Article 165 is devoted to this in the Tax Code.
The rate of 10% is charged in accordance with article 164 of the Tax Code of the Russian Federation. As a rule, this includes children's and medical products.
An 18% rate applies to all other goods and services.

In European countries, the rate is even higher and equal to 25%. In Russia, it was 28% in 1992 and then dropped to 20%. Since January 1, 2004, the rate has become constant, and to this day it is 18%.

VAT monitoring

Any state has the right to control the timely receipt of funds to the budget, for which fiscal authorities are involved. Their main task is to control the payment of tax. That is, these people make sure that taxpayers properly perform their duties. Penalties are imposed in the event of:

There was a delay in submitting the declaration. In this case, it is up to 5% of the monthly tax amount.
Non-payment threatens with a sanction of up to 40%.
Everyone makes mistakes, but the penalty is charged only if they lead to an underestimation of the amount of tax paid.

Therefore, it is extremely important not only to pay VAT on time, but also to carefully fill out all the documentation. This will keep you from losing.

Finally

Now, you can understand what VAT is. In simple words, there are difficulties in working with this tax, however, sometimes it only plays into the hands of many entrepreneurs or companies. And we are talking about the possibility of tax deductibility. In addition, any company that pays VAT acquires a higher status in the eyes of serious business partners.

It is necessary to conduct VAT calculations with the utmost care, since mistakes do not go unpunished. BUT unpaid tax and result in significant financial losses. At the same time, one should not hope that the overpaid amount will be taken into account for the next quarter. The state puts its interests above all, and taxes allow it to be independent, on which the well-being of its population depends.

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