Who can work without VAT. The organization works without VAT - features of mutual settlements. Pros and cons of working with VAT
Those who are exempt from VAT by law are wondering why many large companies refuse to conclude contracts as soon as they find out that they operate without VAT. The answer to this question is related to the features of taxation.
The fact is that OSNO companies issue invoices to their customers in which VAT is allocated and the amount of VAT paid by them can be presented for deduction from the budget.
For example, a company on OSNO sold goods worth 10 million rubles, of which 1.53 million rubles. it must transfer to the state in the form of VAT. But over the same period, she spent 7 million rubles on the services of other organizations on OSNO. This amount included her expenses for VAT in the amount of 1.07 million rubles.
It is by this amount that it can reduce its tax burden in the form of VAT. Consequently, not 1.53 million rubles are paid to the budget, but 460 thousand rubles.
The organization can work without VAT, subject to the transition to one of the special modes.
It can be simplified, imputed or ESHN. Usually the choice is 
Work without VAT is especially justified for small organizations, the main circle of which is formed by individuals. These are, for example, representatives of the sphere retail or organizations providing household services to the population (for example, hairdressers or apartment renovations).
Features of interaction
For example, a company bought air conditioners for the office for 100,000 rubles. If the invoice was issued with VAT, then she has the right to compensate 18,000 rubles from the budget. from such a purchase.
If the company purchased air conditioners from a simplistic, then it will not be able to compensate anything.
It turns out that a purchase from a company without VAT costs buyers 18% more than a similar purchase from a seller on OSNO. After all, simplistic people usually keep prices at about the same level as companies on general mode.
Therefore, they prefer to work with other companies on OSNO for economic reasons.
Answers on questions
The invoice is issued without VAT, and the payer works with VAT
Sometimes simplists offer more favorable working conditions and low prices, which makes cooperation with them economically justified, despite the absence of VAT.
There are no legal bans on the work of organizations on OSNO with companies on the simplified tax system, but accountants should ask them for an information letter or other document confirming the right to work without VAT.
The entire amount transferred in favor of the company that issued the invoice without VAT is taken into account in expenses when calculating income tax.
Re-issue of services without VAT by VAT payers
Often there are situations in which the VAT payer is only an agent or commission agent for certain services, i.e. she simply re-exposes the received . What if the committent or final executor is a simplistic? In such a situation, invoices are reissued without VAT, despite the fact that they are on OSNO.
If the VAT payer additionally includes his commission in the amount of the invoice, then VAT must be charged on the amount of this remuneration.
The counterparty on the simplified tax system set VAT
If an organization issues an invoice with VAT on a simplified system, then this imposes on it certain tax implications. It is obliged not only to transfer VAT to the budget, but also to report on this tax. But usually issuing an invoice with VAT is unprofitable for a simplistic person.
Indeed, in fact, he receives less than 18% of his profit, and the simplistic is not entitled to compensate for the tax on costs with VAT in favor of other counterparties.
It is much easier for an organization on the simplified tax system to agree on a discount on their goods in the amount of allocated VAT than to take on additional risks associated with issuing an invoice.
Organization on OSNO sells without VAT
The organization on OSNO is not entitled to issue invoices without VAT. But for some groups of goods, the Tax Code provided for a zero VAT rate. Among them are goods sent for export, space goods, some precious metals, various services for the international transportation of goods, etc. Their full list is contained in 164 Art. tax code.
If the goods are classified as preferential, then the organization on OSNO issues the so-called “zero invoice” to its partners.
What do the simplifiers need to do when they enter into sales contracts with a company on a general basis? And is it worth it to issue an invoice, trying to please the buyer? The answers to these and many other topical questions on the topic can be found in the article prepared by our colleagues from the magazine "Simplification".
For companies and individual entrepreneurs using the simplified system, it does not matter at all what taxation regime their partner applies. This does not affect accounting or tax accounting under the simplified system. But for organizations using the general regime, it matters that you are on a “simplified” system and do not pay VAT (clause 2 of article 346.11 of the Tax Code of the Russian Federation).
After all, if you do not charge VAT on the sale, your counterparty will not be able to deduct it. And this will increase its tax payments to the budget. In this material, we will describe in detail in which cases a partner in the general mode, even without a deduction for value added tax, will be able to benefit both for himself and for you to conclude a deal without losing money.
Situation No. 1 You buy goods from a company on a general basis
If you buy something from firms on a general basis, then it does not matter to the seller what system of taxation you apply. When selling, he will accrue his taxes, and you will take into account the purchased goods (works, services) according to the rules tax accounting with USN.
When a problem occurs. Difficulties may arise if you decide to return the goods that were previously accepted for accounting. Such an operation is treated as a reverse sale from the point of view of VAT. Since before the title to the goods has already passed to you as a buyer, and when returned, it is returned to the seller.
That is, the seller has a purchase of the same product, and the buyer has a sale. In this case, it would be more profitable for the seller under the general regime to buy goods with VAT in order to deduct the tax. Then, taking into account the tax that he accrued upon sale, he will “go to zero”, that is, he will not have any expenses in the form of value added tax. However, you, as a buyer using the simplified system, do not pay VAT, that is, you cannot issue an invoice for resale.
Solution. In this case, the seller himself in the general mode can issue an adjustment invoice (letter of the Ministry of Finance of Russia dated July 24, 2012 No. 03-07-09 / 89). In it, he must reflect the difference by which the quantity and cost of goods sold have decreased, as well as the amount of "input" VAT. There is no need to make any corrections to the original invoice (letter of the Ministry of Finance of Russia dated July 31, 2012 No. 03-07-09 / 96).
However, before issuing a corrective invoice, the company in the general mode needs to receive documents justifying the return of the goods. Such documents are a claim from you as a buyer, an act on identified deficiencies in the form No. TORG-2 or in an independently developed form (Federal Law No. 402-FZ of 06.12.2011 and clause 10, article 172 of the Tax Code of the Russian Federation). Your counterparty has five calendar days to issue an adjustment invoice to itself from the day it receives any of the listed documents. This follows from paragraph 3 of clause 3 of Article 168 of the Tax Code of the Russian Federation. What should be indicated in the corrective invoice is stated in paragraph 5.2 of Article 169 of the Tax Code of the Russian Federation.
Pay attention to this moment. It does not matter for what reason you returned the goods: it was of proper quality or had flaws, the procedure for issuing a corrective invoice will be the same in any case (letter of the Ministry of Finance of Russia dated July 31, 2012 No. 03-07-09 / 100).
Next, the seller will register the corrective invoice in the purchase book. This follows from paragraph 12 of the Rules for maintaining the purchase book, approved by Decree of the Government of the Russian Federation of December 26, 2011 No. 1137. And only after that your partner in the general mode will be able to reduce the VAT payable to the budget.
On a note
Will the company be able to receive a VAT deduction under the general regime if the “simplifier” issued an invoice
Although the “simplifiers” are not VAT payers, no one will punish them if they decide to issue an invoice. Provided, of course, that the corresponding amount of tax will be paid to the budget, and at the end of the quarter, a VAT tax return is submitted to the inspection (clause 5, article 173 of the Tax Code of the Russian Federation). At the same time, the amount of tax paid cannot be included in the expenses accounted for under the simplified tax system (clause 1 of article 346.16 of the Tax Code of the Russian Federation). Therefore, sometimes "simplified" go towards their partner and, in order not to lose him, they still issue invoices.
True, according to the Ministry of Finance and the Federal Tax Service, it is impossible for firms to deduct VAT on such an invoice under the general regime. Since the document was issued by a non-payer of VAT. This means that it was drawn up in violation of the rules (letters of the Ministry of Finance of Russia dated May 16, 2011 No. 03-07-11 / 126 and the Federal Tax Service of Russia dated May 6, 2008 No. 03-1-03 / 1925).
If it so happened that the inspectorate refused the company tax deduction according to the invoices received from the “simplifiers”, she can go to court. Most arbitrators in such disputes support buyers and say that a taxpayer who has transferred tax to a VAT non-payer has the right to a deduction in the generally established manner. After all, according to paragraph 5 of Article 173 of the Tax Code of the Russian Federation, a “simplifier” who sold products with VAT must pay this tax to the budget. This means that the buyer can accept it for deduction. This position, in particular, was taken by the Federal Antimonopoly Service of the Moscow District in resolution No. КА-А40/6142-11-2 dated 06.30.2011 and the Federal Antimonopoly Service of the Urals District in resolution No. Ф09-2100/11-С2 dated May 23, 2011.
Thus, insisting that the "simplistic" issue an invoice, first weigh the pros and cons. Do you really need this document, if because of it, you may have to bring the case to court. It is likely that receiving "input" VAT will not be unprofitable for you.
Case #2 You are selling a product to a company applying the general regime
This is exactly the case when your tax regime affects the size of the tax payments of the company applying the general regime.
When a problem occurs. The problem can occur with every sale because you don't charge value added tax. And for companies and individual entrepreneurs that are under the general taxation regime, this means that they do not have an “input” tax on such a transaction that could be deducted.
Solution. Since you are not a VAT payer, you do not include the amount of tax in the price of the goods (clause 2 of article 346.11 of the Tax Code of the Russian Federation). This means that the goods in this case can be sold cheaper. The buyer in the general mode, in turn, has the right to recognize the entire cost of the goods as expenses that reduce tax base on income tax. The seller on the simplified tax system does not pay VAT and does not include the amount of tax in the price of the goods, which means that he can sell it cheaper.
Therefore, concluding an agreement with companies and individual entrepreneurs in general mode, reduce the cost of goods by the amount of VAT. In this case, even without receiving a deduction for value added tax, those who apply the general taxation regime will not have economic losses. Let's show an example how it looks like.
Example. Calculation of benefits from the purchase of goods from the "simplifier" without VAT
Astra LLC is on the general taxation regime and conducts wholesale trade. The company sold a batch of goods at a price of 23,600 rubles. (including VAT 3600 rubles).
Let's calculate the amount of value added tax and income tax that will have to be paid if you buy this product:
1) from a VAT payer for 18,880 rubles. (including VAT 2880 rubles);
2) at the "simplified" for 16,000 rubles. (without VAT).
For simplicity of calculations, we will consider only the cost of purchasing goods.
First case. When goods are shipped, Astra LLC must charge VAT in the amount of 3,600 rubles. At the same time, when buying goods from a VAT payer, the company will be able to take advantage of a VAT deduction in the amount of 2880 rubles. Therefore, VAT payable will be 720 rubles. (3600 rubles - 2880 rubles).
At the same time, the income included in the income tax base is equal to the value of the goods sold without VAT, that is, 20,000 rubles. (23,600 rubles - 3,600 rubles). And the costs are the purchase price of valuables without VAT, which is 16,000 rubles. (18,880 rubles - 2,880 rubles). Thus, the income tax to be paid by Astra LLC will be 800 rubles. [(20,000 rubles - 16,000 rubles) × 20%].
The total amount of taxes (VAT and income tax) payable is 1520 rubles. (720 rubles + 800 rubles).
Second case. If Astra LLC buys goods from a “simplifier”, it will not be able to use the VAT deduction. Therefore, the tax that must be paid to the budget is equal to that accrued on the sale of goods - 3600 rubles.
In this case, the income taken into account when calculating the income tax will be the same as in the first option, and the expenses are equal to the purchase price of the goods - 16,000 rubles. Income tax will also not change - 800 rubles. The total amount of taxes payable will be 4400 rubles. (3600 rubles + 800 rubles).
Let's compare deductions to the budget. Buying goods from the “simplifier”, LLC “Astra” will pay taxes more by 2880 rubles. (4400 rubles - 1520 rubles). And it may seem that the second method is unprofitable. However, it is not. After all, the supplier of goods in the second method, the company also paid 2880 rubles. less (18,880 rubles - 16,000 rubles).
So in this situation, both options are no different in terms of costs, and the choice of suppliers should not be based on the tax system.
The organization works without VAT, but has contractual relationship and conducts transactions with the company that calculates and pays this tax. Such cases are frequent and require compliance with certain rules for paperwork. The material discusses how to correctly formalize the interaction so as not to violate tax laws.
When VAT is not paid by the seller
If the organization works without VAT, supplying, for example, goods, then it draws up all papers for shipment, without indicating VAT in them. These documents include invoice, invoice, waybill and cooperation agreement. In the places intended for putting down the amounts of this tax, either a dash is put, or “excluding VAT” is written.
There is an opinion that in one of the listed documents it is necessary to indicate the reason for the exemption from VAT. Note that this is hardly appropriate in primary documents, since there are strict filling standards for them. But in the contract you can make a reference to the reason. Nevertheless, no one will punish the seller if the basis is not reflected.
It is noteworthy that some categories of companies must record "without VAT" in strictly defined places. This is an identification mark for the tax office that these companies are exempt either under Art. 145 of the Tax Code of the Russian Federation (in connection with the volume of revenue), or according to Art. 145.1, which grants such a right to participants in Skolkovo.
Companies that use special taxation regimes in their activities (simplification, imputation, patent or unified agricultural tax) are not required to pay VAT. They should not issue such a document as an invoice. This right is given to them by the norms contained in paragraph 3 of Art. 169 of the Tax Code of the Russian Federation. However, they also have the right to issue this document on one condition - all the registration rules contained in paragraph 5 of Art. 168 of the Tax Code of the Russian Federation.
The features of the actions of the buyer who received the documents with the entry “without VAT” are as follows:
He must take into account the received objects of the transaction at the cost indicated in the documents transferred to him. There is no VAT in this cost, and accordingly, it does not need to be separately accounted for, let alone reimbursed.
When transferring money to a supplier in payment document should be the entry "Without tax (VAT)".
When VAT is not paid by the buyer
Consider the case where the seller company uses VAT, and the buyer works without this tax. It is clear that the documents received by the buyer will indicate the amount of tax included in the final purchase amount. But the invoice itself is not allowed to be drawn up for the buyer, if there is a written agreement between the parties. Such permission is contained in s. 1 p. 3 art. 169 of the Tax Code of the Russian Federation.
However, for himself, the seller must still issue an invoice in accordance with all the rules and enter it in the sales book. If this is not done, then the tax authorities consider this as an underestimation of the tax base and apply appropriate sanctions.
If the organization works without VAT and acts as a buyer, then the tax specified separately in the documents of the selling company, it can take into account:
Completely and at a time when reflecting the value of the received objects in accounting. This method is available to those companies that fall under the provisions of Art. 145 and 145.1 of the Tax Code of the Russian Federation, as well as companies using UTII in their activities. In this case, one should take into account the features specified in paragraph 7 of Art. 346.26 of the Tax Code of the Russian Federation.
In a special order, when VAT accounting depends on the type of expenses to which this tax is attributed, and whether it has been paid. If all conditions are met, the buyer company has the right to include it in the costs and reduce the tax base. This method is available to some organizations that use such regimes as the USN and ESHN, which is stipulated by the rules contained in subpara. 8 p. 2 art. 346.5 ch. 26.1 of the Tax Code of the Russian Federation and sub. 8 p. 1 art. 346.16 ch. 26.2 of the Tax Code of the Russian Federation.
Features of the documentary registration of the transaction are as follows:
First, in payment documents, where the basis for payment is given, when transferring funds, the purchasing company must indicate the allocated VAT included in the total amount of payment.
Secondly, the seller company, having received an advance from a non-payer of this tax, has the right to issue an invoice only for itself, if the partner in the transaction, who does not pay VAT, does not need such a document.
Open LLC without VAT — a real task, but for this it is important to choose the right mode of paying taxes. It is no secret that much depends on the form of taxation of the enterprise, type of activity and other factors. Below we will consider what taxes are provided for an LLC (depending on the direction of work), as well as how to avoid VAT (if required).
The subtleties of taxation, or what taxes LLC pays
Payment of taxes in the course of activity is the obligation of any LLC. At the same time, the founders of the company have the right to independently make a choice in favor of a suitable option. The amount of tax payments and the success of the company in particular depends on the correctness of the decision made. That is why it is important to raise the issue of taxation at the stage of drawing up a business plan. Of course, in the future it is possible to re-register an LLC on the simplified tax system without VAT, but this will take time.
Below we will consider the tax regimes that operate on the territory of the Russian Federation, and also highlight the main rates:
- BASIC. For this option, value added, profits, as well as the average annual price of the property are taxed. In this taxation option, 20% is charged on profits, from 0 to 18 percent VAT (depending on the services provided or goods sold), as well as a tax on company property in the amount of 2.2%.
- USN (option - "Income"). If we are talking about such a taxation regime, here taxes are taken only from the profits received (the company's costs are not taken into account). The general parameter is 6%, but for regions it is possible to reduce the rate to 1% (by decision of local authorities).
- STS (option - "Income minus expenses"). Under this regime, taxes are levied on the difference that is obtained between the profits received and the proven costs of the enterprise (must have justifications). If a minimum tax is paid, the resulting profit is used as the tax base. Based on the Russian Federation as a whole, the rate is 15%, but in the regions the percentage may decrease to 5%. The lower payout threshold is 1%.
- UTII- an option for paying taxes (imputation), when payments are not related to the actual profit of the organization. Here the tax rate in the Russian Federation is 15%, but in the regions it is often reduced to 7.5%.
- ESHN- type of taxation, when the tax is levied on the difference between the profit that the LLC received, as well as the proven costs. 6% is taken from the received number.
From the foregoing, it can be seen what taxes the LLC must pay for each of the taxation options. At the same time, it will not be possible to clearly answer the question of what expenses the company expects. This aspect is influenced by many factors - the type of activity, the chosen form of making payments to the Federal Tax Service, the region, the amount of profit, and so on. The total costs may vary by several times.
Is it possible to work without VAT?
Now let's consider whether opening a company without VAT or switching to the form of tax payment of interest is available. As noted earlier, much depends on the chosen taxation option. Let us consider them in more detail in relation to the value added tax.
Combination of OSN and UTII
If an enterprise combines two regimes, namely general and “imputation”, the profit received by the LLC on UTII is not subject to VAT. In order to avoid paying tax, it is required to have separate VAT records for the general and imputed forms. To solve this problem, two conditions must be met:
- If a company or an entrepreneur (IE) purchases goods or services with VAT to work on an “imputation”, the amount of this tax must be taken into account in the price of goods (services). This applies to fixed assets, as well as assets of an intangible nature.
- If an LLC or an individual entrepreneur uses services or purchases goods including VAT to work on a general form (OSN), its amount is taken for deduction (the rules are spelled out in the Tax Code of the Russian Federation).
There are also costs for which it will not be possible to separately account for VAT. As a result, it will be necessary to separate this tax for "imputation" and the general form. This category of costs includes office space rent and utility bills. As a result, the amount of VAT is distributed according to how these goods are used in each of the areas of work. We must not forget about the need to submit a VAT return before the 25th (the report is submitted once a quarter).
If the company operates on a simplified system, it is not required to pay some taxes (including VAT). By the way, individual entrepreneurs also do not pay property tax and personal income tax. But in practice, there are options when "private traders" (IP) and LLC are forced to pay VAT. This category should include:
- Import of goods to the Russian Federation.
- Issuance of an invoice by the taxpayer, where VAT is registered.
- Carrying out transactions under a joint work agreement, as well as a trust management agreement (if the property is located in the Russian Federation).
In these cases, the preparation of declarations including VAT and the payment of this tax is mandatory.
If a partner (supplier), when working on the OSN, writes VAT on the invoice, the LLC on the USN receiving the goods has the right to pay for it. This is because VAT is a tax paid by the supplier, not the company. The recipient of the goods on the "simplified" does not have to pay VAT. In this case, the goods purchased in this case are sold without tax.
By law, LLCs and individual entrepreneurs on a “simplified” system should not pay VAT. If the buyer asks for an invoice including this tax, this is not prohibited by law, but then you will have to pay the amount including VAT, as well as submit the declaration to the Federal Tax Service (at least in electronic form).
Tax agents
In the case of tax agents, the latter must pay VAT and submit reports (declarations). In addition, companies can fulfill similar obligations. A tax agent is forced to pay VAT if he bought goods or used the service of a foreign enterprise that is not registered with the Federal Tax Service of the Russian Federation, and also sells goods that he transfers foreign company. In addition, VAT will have to be paid in the event of the purchase of property from a bankrupt enterprise, when renting or acquiring state property.
Contract without VAT, and contractor with VAT
METHODOLOGY OF THE DEPARTMENT OF QUALITY CONTROL OF SERVICES AND METHODOLOGY INTERCOMP CBU
Moscow, November 2016 - "Accounting in construction" No. 11
What will be discussed: the contractor is going to conclude a contract for repair work with a hospital - a municipal institution. The contract states: “VAT is not charged. Funding source: funds of the Territorial Compulsory Fund health insurance.". But the contractor is not exempt from VAT. Is there an exemption for this case?
The Tax Code does not establish any benefits to the contractor when he performs repair work for a hospital - a municipal institution. In this situation, the cost of work in the contract must be indicated with VAT.
How the price is determined
When concluding a contract, the parties indicate in it that the price is fixed and is determined for the entire period of the contract (part 2 of article 34 of the Federal Law of April 5, 2013 No. 44-FZ).
In addition to the initial (maximum) price of the contract, the customer sets a requirement for the formation of the contract price. Namely, it indicates that, as part of the application, the procurement participant must set the price with or without taking into account taxes and other obligatory payments (letters of the Ministry of Economic Development of Russia dated July 13, 2016 No. D28i-1787, dated May 10, 2016 No. D28i-1317).
The amount stipulated by the contract for the work performed must be paid to the winner of the purchase in the amount established by the contract.
You can change it only in strictly defined cases. They are given in Articles 34, 95 of Law No. 44-FZ (Part 2 of Article 34 of the Federal Law of April 5, 2013 No. 44-FZ). In particular, with an increase in the quantity of supplied goods. Or, for example, when the parties agreed to change the price under a contract that they concluded before January 1, 2014 and will be completed in 2016 (part 18, article 34, part 1.1, article 95 of Law No. 44-FZ).
The contract is concluded at the price proposed by the winner of the purchase (contractor), regardless of which taxation system he applies (part 1 of Article 34 of Law No. 44-FZ).
How to deal with VAT
With regard to VAT, officials explained the following.
Document (for margins)
Answers to questions about VAT on government contracts - in the letters of the Ministry of Economic Development dated October 2, 2015 No. D28i-2884, dated September 30, 2014 No. d28i-1889 (para. 8-11 of the application)
1. In accordance with the legislation on taxes and fees, the contract price must include all taxes and fees. As well as all costs, expenses and other expenses of the contractor (supplier, contractor). Including related, related to the execution of the contract.
When developing the auction documentation, information on the amount of VAT included in the contract price must be indicated in the section "Justification of the initial (maximum) contract price".
2. Information about the system of taxation of procurement participants is not included in the list of documents and information that participants must submit as part of the application.
Law No. 44-FZ does not establish the order of actions of the customer in the case when the winner uses or switches to a simplified system. If the contractor is not a VAT payer (including being on a simplified tax system), then at the conclusion of the contract, a dash is put instead of the tax amount.
That is, what mode the contractor has, the customer does not care. He chooses the minimum offered price. The contract is always concluded at the price offered by the winner of the purchase. The customer will pay the contractor for the work performed (goods received, services rendered) in the amount established by the contract.
The Ministry of Finance, in turn, explained that the scope of application of Law No. 44-FZ does not include relations for the calculation and payment of taxes. They are regulated by the Tax Code (Letter of the Ministry of Finance dated March 20, 2016 No. 02-02-15/17135).
The duty of the taxpayer to allocate VAT on the sale of goods, works and services is established by paragraph 1 of Article 168 of the Tax Code of the Russian Federation. At the same time, the tax consequences of the transaction are determined by the law, and not by the contract. The inclusion in the contract of conditions that do not comply with the provisions of the Tax Code leads to the fact that such a condition is recognized as void (clause 1, article 161 of the Civil Code of the Russian Federation).
Therefore, if the contract contains an indication that the amount of payment for work is not subject to VAT, but the contractor takes it into account in the VAT tax base, the terms of the contract need to be clarified. But taking into account the fact that the price of the contract is firm.
Thus, in the above situation, the contractor must proceed from the fact that the sale of works and services in Russia is recognized as an object of VAT (subclause 1, clause 1, article 146 of the Tax Code of the Russian Federation).
Under a government contract, the state pays for the work of the contractor in the same way as any other customer (for contracts with budget institutions similar rules).
In this case, the amounts received from the customer, the contractor - the VAT payer must be subject to value added tax. He includes them in the tax base on a general basis (letters of the Ministry of Finance dated August 17, 2011 No. 03-07-11 / 227, dated June 9, 2011 No. 03-03-06 / 1/337), issues invoices with the allocated amount tax, etc.
And accordingly, he has the right to deduct input VAT from the costs that he made in order to perform work under the contract.
Demand to clearly indicate the price in the contract - with or without VAT (this only depends on whether you are a VAT payer or not). Then you will not have problems with the tax.
The contract must clearly indicate the amount of VAT the contractor presents. The contractor is not entitled to collect VAT from the customer in excess of the price of the concluded contract.
Solving the problem customer with VAT, contractor without VAT
So, if the contractor is a value added tax payer, the wording "VAT free" (or "VAT free") should not be in the contract. Instead, you need to write: “The price of the work is (indicate the amount) rubles, including VAT at a rate of 18 percent (indicate the applicable tax rate and the amount of tax).” In this case, the price of the contract should remain the same.
Example. How to specify the price of work in the contract
LLC "Contractor" - a VAT payer, concludes a contract for the repair of a hospital with a municipal institution. The established fixed price is 300,000 rubles.
The wording on the price of the contract should be as follows: “The cost of repair work is 300,000.00 (Three hundred thousand) rubles, including VAT -18% - 45,762.71 rubles. (Forty-five thousand seven hundred sixty-two rubles 72 kopecks).
VAT is calculated as follows:
300 000 RUB. / 118 X 18 \u003d 45,762.71 RUB.
*** end of example
Before signing a contract, carefully check the price that is indicated in it. If your company is a VAT payer, the price must include VAT. Otherwise, you will have to calculate and pay tax in excess of the contract price at your own expense. If the customer indicated in the contract that the price is excluding VAT, ask for clarification of the price condition - draw up an additional agreement without changing the price.
If you are not a VAT payer (you apply a special regime or have received an exemption due to low revenue under Article 145 of the Tax Code of the Russian Federation), then the price in the contract is indicated without VAT. If VAT is indicated in the contract, the simplified company will have to transfer it to the budget, despite the fact that it is not a payer of this tax.
When VAT is not charged on the amount received from the budget
The money received from the state counterparty is not subject to VAT, only if it is compensation for the use of regulated prices.
In connection with the use of lower state prices compared to market prices, taxpayers can receive subsidies from the budget (clause 1, article 78 of the Budget Code). There is no obligation to pay VAT on them (letters of the Ministry of Finance dated March 22, 2011 No. 03-07-11 / 65, the Federal Tax Service for Moscow dated June 23, 2009 No. 16-15 / 63905). Because the budget resources allocated to reimburse the costs of paying for the acquired material resources, works, services or to cover losses associated with the use of state regulated or preferential prices (paragraph 3, clause 2, article 154 of the Tax Code of the Russian Federation). These amounts are not related to payments for goods, works or services sold. We are talking only about a subsidy that came from the federal, and not from the regional or local budget. And it includes VAT.
