Interest rates on VAT. How VAT changed in Russia. Transportation of energy carriers across the border of the Russian Federation
Rate 18/118 VAT provided for the circumstances specified in paragraph 4 of Art. 164 of the Tax Code of the Russian Federation. Except rates 18/118 VAT, which is considered to be calculated, its other size is also considered in this capacity - 10/110 VAT. In our material, we will talk about the current tax rates, the formulas used to calculate the tax, and also about the circumstances in which estimated rates are applied at all.
What VAT rates are currently in effect?
In the total number of rates used to calculate VAT, there is a conditional gradation into calculated and basic. The latter, in turn, are divided into 3 categories:
Zero rate (0%) - the circumstances under which taxpayers are entitled to apply it are stipulated by the norms of paragraph 1 of Art. 164 of the Tax Code of the Russian Federation.
10 percent rate (10%) - the circumstances of its use are determined by the norms contained in paragraph 2 of the same article.
18% rate (18%) - applied in accordance with the norms contained in paragraph 3 of this article.
VAT rate 18% should be applied in those circumstances when there is a sale of goods, works or services not named in paragraphs. 1, 2, 4 st. 164 of the Tax Code of the Russian Federation. Since the list is very narrow and cannot be expanded, it turns out that most domestic transactions must be accompanied by an 18 percent tax.
What formulas are used to determine the settlement rate?
The estimated rate can be determined using simple formulas. On the one hand, it would seem simple to calculate the tax - one should apply tax rates of 10% and 18% VAT, having calculated the percentage with their help. Nevertheless, in accounting practice, formulas are used to determine rates, in which, in addition to interest, you need to know the size of the tax base. The calculation is carried out using an elementary formula: the percentage value is divided by the sum of 100 and the percentage value.
In numbers, these formulas look like this:
for a 10% rate: 10 / (100 + 10);
for an 18% rate: 18 / (100 + 18).
This procedure not only follows from accounting practice, it is also approved in paragraph 4 of Art. 164 of the Tax Code of the Russian Federation.
When are settlement rates used?
Here are the circumstances when the rates described are necessarily applicable.
Cash settlements
The norms of paragraph 4 of Art. 164 of the Tax Code of the Russian Federation define a list of circumstances when the described rates are mandatory.
1. When the taxpayer receives money as part of payment for transactions. The list of such operations is provided by art. 162 of the Tax Code of the Russian Federation.
There is one peculiarity here. Its essence is that if amounts are received in addition to revenue, then they will also have to be taxed, and at the same rate as in the main operation. For example, if the principal was taxed at 18%, then an estimated rate of 18/118 would be applied to all cash additions under one contract.
2. Estimated rates are applicable in the following circumstances:
when advance payments are received for the forthcoming sale of goods or the transfer of rights to property.
when VAT is withheld by the agent.
Sale of property
The estimated rate must also be used when selling movable and real estate. This rule is contained in paragraph 3 of Art. 154 of the Tax Code of the Russian Federation and has a nuance: taxable this species property rates must have been purchased previously on the side. Here it is allowed to use the formula both with a 10% tax and with an 18% tax, i.e. rates of 10/110 and 18/118 are possible.
Here is a short list of properties included in this category:
fixed assets purchased for money from budgetary sources;
property donated to the taxpayer and accounted for on the balance sheet, taking into account the VAT paid to the budget by the previous owner.
fixed assets recorded on the balance sheet at a price including VAT;
passenger cars, as well as minibuses that are used for business trips and are accounted for on the balance sheet at cost with this tax inside.
In addition, the estimated rate should be used when taxing:
transactions in the course of which agricultural products and their derivatives obtained as a result of processing are sold;
cars purchased from individuals, if such cars are resold in the future;
transactions for the transfer of rights to property.
Note that the list established by law does not allow additions, that is, it is closed.
How are invoices issued with settlement rates?
When selling property, the value of which includes VAT, the taxpayer is obliged to use the rules for filling out an invoice, approved. Decree of the Government of the Russian Federation of December 26, 2011 No. 1137. At the same time:
in gr. 5 reflects the inter-price difference, taking into account the tax;
in gr. 8 the estimated tax amount is entered.
If the operation is not related to the sale of property, then in gr. 7, the calculated rate used is written without the “%” sign (i.e., “10/110” and “18/118”).
Definition
Value Added Tax (VAT) is a surplus (added) value arising in the process of creating goods, works, services. The tax is paid as the sale of manufactured products (performance of work, provision of services) or receipt of advance payment from the buyer. The calculation and payment of tax are regulated by Chapter 21 of the Tax Code of the Russian Federation.
VAT payers, tax rate
VAT payers are organizations, individual entrepreneurs, as well as persons recognized as taxpayers in connection with the movement of goods across the customs border of the Customs Union.
Currently, the main VAT rate in Russian Federation is 18%. However, for some food products, goods for children, there is a reduced rate of 10%, and for exported goods there is actually no rate of 0% (in this case, the concepts of "tax exemption" and "taxation at a rate of 0% should not be confused - these are different cases).
Tax calculation
Features of VAT calculation
Value added tax is one of the most difficult taxes to calculate and difficult to administer by the state. This is due to the fact that VAT is an indirect tax. This means that the organization pays it at the expense of the funds it receives from the buyer (VAT is included in the price of the goods). Moreover, in order to exclude double taxation of value added, buyers of raw materials, materials, services, present the tax paid as part of the purchase price for deduction. And after the creation and sale of their product, they again calculate VAT and withhold it from the buyer. As a result, the end buyer, usually citizens of the Russian Federation, becomes the final payer of the entire amount of VAT. And in the case of the export of goods outside of Russia (the Customs Union), no one pays VAT, the tax already paid is returned to the sellers after a special procedure for documenting the fact of export.
The tax calculation process is complicated by benefits and different rates. Despite the huge economic importance of the tax, the complexity of its calculation and payment/reimbursement makes VAT one of the most "criminal" and problematic taxes for an accountant - it is illegally reimbursed from the budget of a one-day company, and accountants of respectable enterprises have to prove the right to receive a deduction.
VAT is not an invention of the Russian tax system. Value added tax exists in most developed countries of the world, only tax rates differ (in the Russian Federation - one of the lowest).
For more information about value added tax, the rules for calculating it, and drawing up a declaration, read the articles in the heading "".
Still have questions about accounting and taxes? Ask them on the accounting forum.
Value Added Tax (VAT): details for an accountant
- Review of legal positions on taxation issues reflected in the judicial acts of the Constitutional Court and the Supreme Court of the Russian Federation in the IV quarter. 2019
Value-added tax that the buyer claimed to be deductible on an amended value-added tax return... deduction in respect of the value-added tax amounts claimed by the insolvent entity... deduction of the value-added tax amounts claimed by the supplier. The basis for the additional charge of value added tax on ... value added tax "when determining the arrears, the inspection did not allocate value added tax ...
- Review of letters from the Ministry of Finance of the Russian Federation for July 2019
To the Republic of Armenia, is subject to value added tax in accordance with the procedure provided for by the Tax ... property leased by a value added tax taxpayer, recognized as insolvent (bankrupt) in accordance with ... the Federation, are subject to value added tax on the basis of of paragraph 1 above ... which the seller pays remuneration, the taxation of the value-added tax of these services at the buyer is made ...
- Review of letters from the Ministry of Finance of the Russian Federation for November 2019
In cases where the tax base for value added tax, determined in the manner prescribed by paragraph ... transactions that are not recognized as objects of taxation by value added tax and not subject to taxation (exempted ... by a Russian organization, are subject to taxation by value added tax on territory of the Russian Federation Letter ... and used in activities subject to value added tax, without the availability of invoices issued ...
- Review of letters from the Ministry of Finance of the Russian Federation for August 2019
Obligations of the agent to pay value added tax to the budget on goods (works, services), ... clearing activities, the value added tax rate of 0 percent is applied. ... consumption in other situations. Value-added tax paid to the customs authority upon... 07-13/1/66751 Value-added tax amounts presented by a Belarusian economic entity... and, accordingly, the object of value-added taxation. Letter dated August 13...
- Review of letters from the Ministry of Finance of the Russian Federation for September 2019
The result of the implementation of research work, value added tax is payable customs authorities in ... intended for sale, the zero rate of value added tax is applied if there are documents provided for ... the incompleteness of the re-registration procedure, the reduced rate of value added tax in the amount of 10 percent is not ... , such services are not subject to taxation of value added tax cost in the Russian Federation. Letter from...
- Review of letters from the Ministry of Finance of the Russian Federation for October 2019
Features of determining the tax base for value added tax in relation to services, the cost of which is ... in rubles, the tax base for value added tax is the amount Money transferred ... on the sale of an apartment is subject to value added tax in accordance with the generally established procedure. A letter from ... value added tax is not recognized and, accordingly, such an operation is not recognized as an object of taxation by value added tax ...
- Inseparable improvements. Accounting and tax accounting for the lessor
Additional equipment, reconstruction, modernization of the OS object. Value Added Tax (VAT) According to the official position, the transfer of ... purchases used in the calculation of value added tax, approved by the Decree of the Government of the Russian Federation from ... income in the amount of accrued depreciation. Value Added Tax (VAT) The landlord will not be able to accept ... purchases used in the calculation of value added tax, approved by the Decree of the Government of the Russian Federation dated ...
- Inseparable improvements. Accounting and tax accounting for the tenant
federal law N 402-FZ. VAT ) On the issue of VAT taxation ... (clause 11 PBU 10/99) Value added tax (VAT) The amount of VAT presented to the organization ...
- Practice of the Supreme Court of the Russian Federation on tax disputes for September 2019
subject to value added tax. Any exceptions exempting transactions with value added tax from ... .G., Vodokanal) - Grounds for additional assessment of value added tax and refusal to refund tax ... for deduction and the need to restore value added tax on transactions , payment for which ... and applications tax deduction on value added tax. Definition of September 23, 2019 ...
- The practice of the Supreme Court of the Russian Federation on tax disputes for August 2019
Considering cases related to the collection of value added tax, agreed with the conclusions of the tax authority ... by reducing it by the amount of value added tax by calculation or on the basis of ... the right to claim a deduction for value added tax according to common system taxation at...
- Transformation of accounting (financial) statements: practice of carrying out
Income tax, reimbursable: value added tax reimbursable 14,000 Asset... income tax, payable: value added tax payable 14,000 Liabilities...
- Practice of the Supreme Court of the Russian Federation on tax disputes for November 2019
It is subject to value added tax for the organization. In this connection, in ... - any exceptions exempting from the taxation of value added tax transactions with material values state ... in order to evade the restoration of value added tax. At the same time, in fact, property from ...
- VAT in 2018: clarifications from the Ministry of Finance of Russia
Goods (works, services) subject to value added tax. Therefore, the amount of value added tax presented on the specified goods ... the implementation of transactions recognized as an object of taxation by value added tax, the amount of value added tax paid upon its acquisition ... the above transactions subject to value added tax. Therefore, to deduct the value added tax presented by the seller of such ...
- VAT in 2017. Clarifications of the Ministry of Finance of Russia
The tax base for value added tax when calculating and paying value added tax as a tax ... as gifts, are subject to value added tax. The amounts of value added tax paid by the organization upon acquisition ... pay value added tax to the budget. In this case, the specified amount of value added tax is payable in ...
- Review of letters from the Ministry of Finance of the Russian Federation for August 2018
The agent that calculates and pays value added tax is the subagent that calculates... taxation with value added tax in the territory of the Russian Federation and is subject to value added tax in... value added tax does not arise for such a Russian organization. At the same time, taxation with value added tax ... the validity of the application of the zero rate of value added tax by the committent is confirmed, foreign currency ...
Value Added Tax (VAT) has been in force in Russia for 24 years (since January 01, 1992). It refers to indirect taxes, that is, a certain percentage is added to the cost of goods, works and services, which is then paid to the state. At the same time, the tax burden falls on the shoulders of the final buyer, and not the manufacturer of the product.
A similar tax exists in other states; in total, it has been introduced in 137 countries of the world. The rates are different, the highest in the EU countries - Sweden, Denmark and Norway, is 25%, in Hungary - 27%. The lowest rates are in Switzerland - 8% and Liechtenstein - 7.6%. The US and Japan have abandoned its use. The United States introduced a sales tax at a rate of 0% to 15% (depending on the state), Japan has an 8% consumption tax, which they currently want to raise to 10%.
18%, 10% and 0% - such VAT rates are set in our country. How much interest in 2016, and who pays, is stated in Chapter 21 of the Tax Code of the Russian Federation. The VAT rate of 18% is used most often, for almost all types of products, works and services, with the exception of cases established in Art. 164 of the Tax Code of the Russian Federation. The VAT rate of 10% applies to certain goods specified in the Tax Code and special lists approved by the Government of the Russian Federation. The zero rate is applied for export, international transportation and in other cases in accordance with the Tax Code of the Russian Federation.
In no case can you use the rate at your own discretion, only in accordance with the rules established by the Tax Code, otherwise it will not be possible to subsequently accept VAT for reimbursement.
VAT 18 percent
The main VAT rate in 2016 in Russia is 18%. Art. 164 of the Tax Code of the Russian Federation, the grounds are also fixed here when preferential VAT rates of 10% and 0% are used.
When the VAT rate is already included in the amount, and it needs to be allocated, then the estimated rates of 18/118 or 10/110 are used. All cases of use are recorded in paragraph 4 of Art. 164 of the Tax Code, including when they receive an advance, when selling goods, including VAT, when the tax is withheld by tax agents, etc. It should be noted that all cases of using the estimated rate are specified in the Tax Code of the Russian Federation, and this list is exhaustive. When a VAT rate of 18% is used, then the calculated one will be 18/118, if VAT is 10%, then 10/110.
Consider the problem and find the percentage of VAT:
an advance payment in the amount of 82,600 rubles was transferred. VAT 18% will be equal to 12,600 rubles (82,600 x (18/118)). To calculate VAT, you can use the calculator.
VAT 10 percent
The list of goods, works and services that are subject to VAT at a rate of 10% is set out in paragraph 2 of Art. 164 of the Tax Code of the Russian Federation:
- these include food products - these are meat and meat products (with the exception of delicacies - raw smoked sausages, carbonade, bacon, etc.), dairy products (including ice cream based on it, but not fruit ice), chicken eggs, vegetable oil, margarine, granulated sugar, table salt, grains, mixed fodder, bread and bakery products (including buns), pasta, flour, cereals, live fish (except for salmon, trout and other valuable species), seafood (except for delicacies - red and black caviar, etc.), baby food, products for diabetics, vegetables, etc.;
- children's products: knitwear for newborns, nursery and preschool groups and schoolchildren, garments (including sheepskin and rabbit products), shoes (excluding sportswear), cribs, mattresses, strollers, notebooks, toys, school supplies, diapers and etc.;
- newspapers, magazines and books related to education, science and culture (with the exception of advertising and erotic products). To confirm, you must have a certificate issued by the Federal Agency for Press and Mass Communications;
- medicines and medical devices(including products intended for conducting clinical trials of medicinal products and medicinal products manufactured by pharmacies). The medicine must have a registration certificate, and must also be included in the State Register of Medicines;
- For medicines manufactured by pharmacies, a rate is applied based on the presence of a prescription for medicines.
- services for the transportation of passengers and luggage by domestic air transport and long-distance rail transport.
VAT is one of the most collected and most significant taxes on the territory of the Russian Federation. Having an indirect nature of accrual, the final burden falls on the buyers of goods, materials, and services. The tax rate depends on the type of product, as well as the type of activity of the subject. In the article, we will reveal what the 18% and 10% VAT rate is, in what cases it is used, and also give an example of calculating the 18% VAT rate.
What is VAT?
Value added tax is included in federal taxes. Recognized as indirect. Its final amount, which is included in the total cost of the goods, is paid by the buyer when purchasing the necessary goods or when receiving the service. The tax paid by the buyer to the supplier is transferred to the budget, which replenishes the state treasury.
Most goods and services are taxed. Lists of exempted values and ongoing work from taxation are fixed at the legislative level.
VAT rate 18%, 10%, 0%
The current Russian legislation applies several tax rates. The main one is 18%. It is calculated in cases where the application of other rates is impossible.
Application of 10% VAT considered preferential condition and applies to a limited category of goods, such as essential food products (milk, bread, meat, flour, eggs, etc.), children's products, printed products, and others.
VAT rate 0% used when crossing goods through the customs territory of Russia. VAT on goods is paid in such cases not to suppliers, but directly to the budget of the country of receipt.
Tax rates 10/110 and 18/118 are applied as calculated in the following cases:
- receipt of the amount in the form of insurance payments, interest on commodity loans, financial assistance as a result of the sale of goods;
- receipt of funds on account of the forthcoming shipment, deliveries;
- transfer of property rights;
- withholding tax as a tax agent;
- sale of agricultural products previously purchased from individuals;
- sale of purchased from physical. persons (not recognized as VAT payers) cars;
- under other conditions stipulated by law.
VAT rate 18% and 10%: table of accrual objects and payers
For more information on VAT rates, see the table below.
tax rate | accrual object | Payers |
0% | Goods crossing the border of the Russian Federation, transportation services | Buyers of imported goods |
10% | Some types of food, children's products, medical products, periodicals | Entities involved in the sale of the listed goods |
18% | Other products and services | VAT taxpayers |
18/118 or 10/110 | Estimated rate used when determining the amount of tax payable to the budget | VAT taxpayers receiving cash advances and on other terms |
Download the list of goods with a VAT rate of 10%, 0%
Below is the entire list of goods according to the tax code of the Russian Federation, for which the VAT rate is 10 and 0%.
VAT rate of 18% and 10%: how to calculate?
In order to find out the amount of VAT on the sale of goods or services, it is necessary to determine the initial tax rate. If the sale of goods takes place within the territory of the Russian Federation, 10% or 18% is used. To determine the amount of VAT on the initial cost of materials, tax is charged in the required amount.
For example, products are subject to sale at a price of 100 rubles per unit. The amount of VAT in the amount of 18% is equal to 100 rubles * 18% = 18 rubles. The total cost of the goods presented to the buyer is calculated as the addition of the price without VAT and the amount of tax, that is, 100 rubles + 18 rubles = 118 rubles.
The procedure for calculating VAT at a rate of 10% is similar. At a price of 100 rubles, the tax amount is 10 rubles, the total cost is 110 rubles.
If taxation is provided at a rate of 0% in cases of crossing valuables across the border or in the provision of international transportation, the recipient must independently calculate the tax and pay the amount received to the budget. VAT is charged based on the type of product at a rate of 10% or 18% according to the above rules.
How to allocate tax from the total amount?
When using the estimated VAT rate of 10/110 or 18/118, the reverse procedure applies. If it is necessary to allocate VAT from the amount received as an advance against future deliveries, they are determined with the tax rate. In cases where the shipped goods are not included in the list of valuables for which preferential taxation is applied, the rate of 18/118 is used for calculation.
Upon receipt of an advance payment in the amount of 150,000 rubles, the taxpayer must transfer VAT from the funds received to the budget. If shipment is expected at a rate of 18%, the calculation based on 18/118 is used. The total amount of tax is 150,000 rubles / 118*18 = 22,881 rubles.
VAT rate 18%: accounting and calculation example
Example. Resource LLC sells products in favor of Schema LLC in the amount of 236,000 rubles, including 18% VAT equal to 36,000 rubles. According to the terms of delivery, Schema LLC must independently pick up the valuables from the warehouse on time, otherwise fines in the amount of 5,000 rubles are provided. Schema LLC did not fulfill the terms of the contract, taking the goods later than the established deadlines, as a result of which it transferred a fine in favor of Resource LLC in the amount of 5,000 rubles. In the accounting of Resource LLC, the operations performed are recorded by the following entries:
- - - 236,000 rubles - shipment of goods to the supplier.
- Dt 90-3 - - 36,000 rubles - shipping tax has been charged.
- - Kt 62 - 236,000 rubles - the debt of Schema LLC for the goods was repaid.
- Dt 51 - - 3,000 rubles - a penalty amount was transferred.
- Dt 76 - Kt 91-1 - 3,000 rubles - other income is reflected due to the fine received.
- - Kt 68 - 458 rubles (3000/118 * 18) allocated VAT on the amount of the fine.
Thus, after the operations carried out, the total amount of tax payable to the budget included 458 rubles at the expense of the transferred penalty amounts received.
Application of the estimated VAT rate
VAT is charged when valuables are sold on the territory of the Russian Federation. The exception is goods and services that are exempt from taxation. Subjects applying preferential regimes (UTII, STS, ESHN) also have the right not to charge tax on the sale. In the presence of certain circumstances (insufficient amount of income for previous periods), organizations and entrepreneurs can also receive tax exemption.
For the listed categories, the calculated VAT rates are not applied when receiving advances on account of upcoming shipments. However, the use of preferential regimes does not relieve VAT tax agents from their obligations, which arise when:
- acquisition of valuables from persons who are not residents of the Russian Federation;
- in transactions with property owned by municipal authorities and state administration bodies.
The estimated rate of 10/110 or 18/118 is reflected in the VAT return. The receipt of funds for which tax is required must be accompanied by the preparation of documents - invoices. They indicate the calculated rates of 10/110 or 18/118 without indicating the "%" sign.
To understand what VAT is, it is enough to know how the abbreviation is. VAT is a value added tax. Value added is the difference between the purchase price of a product and the selling price. For example, a company bought computer mice at a price of 100 rubles per piece, and sells them for 150 rubles. The difference of 50 rubles will be considered as added value. In words, the explanation is simple, but this tax has enough nuances.
Despite the fact that VAT, in fact, is a tax for business, the peculiarities of its calculation and payment affect mainly ordinary consumers. Therefore, there is nothing surprising in what leads to a rise in the price of certain goods and services.
In the Russian Federation, the value added tax was introduced on January 1, 1992 by the Decree of the Supreme Court of the Russian Federation "On the value added tax" with a record rate of 28% to this day. However, already in 1993 it was reduced to 20%, and in 2003 to 18%. economic situation forced the government to once again raise the VAT rate to 20%.
Conventionally, value added tax can be divided into two large groups:
- Domestic VAT is paid on the sale of goods and services in the territory of the Russian Federation.
- Import VAT is paid when goods are imported into Russia.
Who pays: the buyer or the seller?
Since VAT is an indirect tax, it is levied all the way through the sale of goods or services. This leads to the fact that funds go to the budget even before the product or service is purchased by the end consumer. Sellers, in turn, include the cost of paying VAT in the final cost of the goods. Thus, the funds in the turnover of the company or organization are returned after the sale of the goods. Be that as it may, if you look from the side of consumers, then the payment of VAT is ultimately placed on their shoulders.
If we consider VAT from the side of businessmen (companies and organizations), where the buyer is, say, a store, and the seller is a manufacturer of goods, then the situation is somewhat different:
- The seller, transferring the rights to the ownership of goods or services to the buyer, at the same time calculates and presents to him, indicating it in the invoice. After that, the buyer transfers this amount to the seller. Despite the fact that the costs of paying VAT remain on the buyer, in fact, the budget receives money from the seller.
- When goods are purchased from foreign organizations that are not registered with the tax authorities, the buyer pays VAT to the budget. The amount of value added tax in this case is withheld immediately upon transfer of funds to a foreign counterparty.
Despite the fact that the legislation imposes the payment of VAT on the seller, ultimately the consumer's wallet suffers. The only exception, perhaps, is the free receipt of goods or services. In this case, the seller must pay VAT on his own.
VAT rates
At the moment, there are three types of value added tax rates in the Russian Federation:
- 0% - for goods or services exported during the export process or under the customs procedure of a free customs zone.
- 10% - food, children's and medical products, as well as periodicals.
- 20% is the general rate applicable in all other cases.
There are also rates of 10/110 and 20/120, which are applied when receiving an advance or determining the tax base in a special manner. For example, when selling agricultural products or cars purchased from individuals who are not taxpayers.
Value Added Tax Calculation Formulas
VAT is calculated using a fairly simple formula:
VAT = Price of goods or services (without tax) * 20%
For example, the price washing machine excluding tax is 20 thousand rubles. Then, VAT \u003d 20,000 * 20% \u003d 4000. It turns out that the end consumer, when buying such washing machine must pay 24 thousand rubles (the price of the machine + VAT).
VAT = price of goods (with tax) * 20/120
For example, when buying a TV set, a consumer paid 35,000 rubles. To understand how much tax was included in the cost of the TV, we substitute the corresponding value in the formula above: VAT \u003d 35,000 * 20/120 \u003d 5833. That is, without VAT, the TV would cost 29 thousand 167 rubles.
VAT exemption
Organizations and individual entrepreneurs who pay taxes under special systems are exempt from paying VAT. These systems include:
- A single tax on imputed income for certain types of activities (UTII).
- Taxation of agricultural producers (ESKhN) - from 2019, the exemption is valid only if a number of conditions are met.
- Patent taxation system ().
- Simplified taxation system (USN).
- Participants of the Skolkovo project (organizations that have received the status of participants in scientific, technological and research activities).
It should be noted that the above organizations and individual entrepreneurs are not exempt from paying VAT if an invoice is issued to the buyer (a document that certifies the actual shipment of goods or the provision of services, including their cost).
Where do the funds received from the payment of VAT go?
Value added tax is one of the main taxes that exist in the Russian Federation. VAT provides 1/3 of all revenues to the state budget and ranks second after oil and gas.
Funds from the federal budget, in turn, are used for the following purposes:
- payment of allowances, subsidies and benefits;
- assistance to the poor and rehabilitation of the disabled;
- development of medicine, education, youth policy and agriculture;
- support for the armed forces;
- environment protection;
- support of museums and various sanatoriums;
- Scientific research.
Simultaneously with an increase in the rate of desk audits, which should have a positive impact on business. The fact is that all value added tax payers submit declarations, which first undergo a desk audit. Until January 1, 2019, such a check took three months. Now this period has been reduced to two months. The positive point is that the money from the declared tax refund will be returned to companies and individual entrepreneurs faster, and not hang in the budget.
However, not everything is so rosy. In the event that the submitted declaration arouses suspicion, the period of a desk audit can be extended to the same three months. Thus, only law-abiding taxpayers benefit.
Why was the value added tax increased?
As mentioned above, the main income of the budget comes from the sale of oil and gas. These revenues have now declined as oil and gas products have fallen in price. The current situation forced the government to resort to increasing the VAT. In general, this measure will allow continuing the financing of important government programs.
Increasing the value added tax will also support existing social programs. For example, some of the preferential types of mortgages, maternity capital, landscaping, etc. According to government estimates, an increase in the VAT rate will additionally bring the budget about 620 billion rubles a year. By the way, if we divide this amount among the entire population of the Russian Federation, it turns out that the increase in VAT will cost one Russian citizen 360 rubles a month.
Advantages of increasing VAT over other methods:
- VAT is collected better than other taxes;
- automatic payment verification system;
- the complexity and danger of tax evasion.
In addition, the increase in VAT is a very loyal decision compared to other scenarios. So, the case could end with the abolition of benefits, the tightening of conditions for state support, or even the abolition of maternity capital or other social assistance. By the way, the funds received from the value added will still not be enough to fulfill all the presidential decrees. In total, about 8 trillion rubles are required for their implementation. rubles to be raised by 2024. VAT will not bring even half of the required amount.
Impact on commodity prices
Prices are rising not only because of VAT. Despite the fact that the rate of this tax has been unchanged for the past 14 years, until 2019, of course, prices still increased. They grew despite the reduction of the Central Bank rate and favorable conditions for lending to individual entrepreneurs. VAT on gasoline has not increased, but the price of it has risen. In general, the pricing of goods and services is not an easy issue, and value added tax alone does not solve everything here.
Although the VAT rate on food, children's and medical products will remain at the same level(10%), their prices will still rise. That is, an increase in the total rate to 20% will still make itself felt. For example, the price will rise due to an increase in delivery costs due to new OSAGO tariffs, as well as a rise in the price of gasoline.
Some products are not subject to VAT at all, for example, services and goods sold by entrepreneurs who pay tax under special systems (UTII, PSN, STS, etc.). However, even in this case, the price may rise for a number of reasons: an increase in the cost of rent, an increase wages employee.
Most of the price increase will affect expensive goods, for example, cars. The fact is that in absolute terms, the added value on them is much higher, and, accordingly, the tax is higher. It turns out that families who spent their money mainly on 0 or 10% will not notice the rate increase to 20% so much, while wealthy citizens will feel it to the fullest.
Comparison of the tax burden with other countries
Value added tax is present in many countries and averages the same 20%. However, comparing the tax burden on citizens solely on VAT is not entirely correct:
- Canada - low VAT (from 7 to 13% depending on the province), but the rates for insurance premiums are significantly higher than in Russia;
- The USA (from 0 to 10% depending on the state), Luxembourg (17%), Denmark (25%) - replenish the budget mainly due to personal income tax, which is significantly higher than ours;
- Germany and Austria (19 and 20% respectively) are high;
- Great Britain - VAT 20%, but personal income tax - 45%;
- Italy - VAT 22%, income tax from 22 to 42%.
But what is really bad is that in all of the above countries, interest rates on loans are significantly lower than in Russia. However, this does not change the fact that comparing the economic situation only in terms of value added tax looks silly. For example, in Russia average pay for utilities is 3 thousand rubles, and in European countries– 300 euros. Wherein drinking water they save money, and the garbage has to be sorted.
Key points about VAT in 2019
Thus, we can conclude:
- The rate increased to 20%.
- Preferential rates have not changed - where it was 0 and 10%, it will remain 0 and 10%.
- An increase in the VAT rate will lead to an increase in prices, on average, by 1.7%.
- Reduced check times. It used to be three months, since 2019 it has become two.
- On average, each Russian citizen VAT increase will cost 360 rubles a month.
- The budget of the Russian Federation will receive an additional 620 billion rubles a year.
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