The value added tax declaration is submitted at the end of each quarter by the 25th of the following month. But it happens that after the reception period has expired, errors are discovered in the report. To correct them, an updated VAT return is intended. In certain cases, the taxpayer is required to submit it, and sometimes he does so at his own request. Let's figure out what the rules are for filing a corrective report and the consequences it may entail.
When do you need to submit a VAT adjustment?
An updated VAT return is submitted to inform the Tax Service about violations in the primary report that the taxpayer independently identified after its submission. But not every mistake requires correction. When this is necessary is stated in paragraph 1 of Article 81 of the Tax Code of the Russian Federation.
The obligation to submit an updated declaration occurs if the primary report does not reflect some data or an error is made, and as a result the tax was underestimated. The reasons may be different - incomplete reflection of income, overestimation of expenses or deductions, as well as unlawful application of VAT benefits.
But errors that did not cause a reduction in the tax amount do not need to be corrected using an updated report. However, the taxpayer has this right. An adjustment to a submitted VAT return is often sent when, as a result of an inaccuracy, the tax was overpaid. Whether to take this step or not is a decision made by the taxpayer.
There are cases when it is definitely not necessary to submit a corrective report:
- VAT was assessed by the tax authority after an audit;
- the taxpayer issued or received an adjustment invoice.
The first case is directly stated in paragraph 2 of section 1 of the current procedure for filling out a VAT tax return from Order No. ММВ-7-3/ [email protected] dated 10/29/2014/ [email protected] Since an additional tax charge was made, it means that the inspectorate already knows about the error. There is no point in informing her about this.
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As for the adjustment invoice, it is reflected in accounting in the current quarter. Therefore, it only affects the amount of tax payable in that period and does not affect past returns.
Example of designing an additional sheet of a purchase book
An example from K+ professionals will help you figure out how to fill out an additional sheet for the purchase book using the new form starting July 1, 2021.
An example of filling out an additional sheet to the purchase book from ConsultantPlus Alpha LLC, after filing a VAT return for the third quarter of 2022, discovered that, as a result of a technical failure, it did not include the indicators of invoice N 716 dated September 29, 2021 for the product subject to traceability, which was received from Beta LLC and capitalized on September 30, 2021. To submit an updated declaration for this period, the organization registered a “missed” invoice in an additional sheet of the purchase book for the third quarter of 2022. You can view a sample by clicking on the picture below. Trial access to K+ is free.
How to avoid a fine when filing an amendment
Does adjusting the declaration always mean a fine? Not at all. If everything is done correctly, sanctions will be avoided. Moreover, even if the update comes with additional tax. The algorithm is described in paragraph 4 of Article 81 of the Tax Code of the Russian Federation. If an error is detected, you should:
- correct it and recalculate the VAT amount;
- calculate penalties (if the payment deadline has passed);
- transfer taxes and penalties to the budget;
- generate an updated declaration and send it to the Federal Tax Service.
It is better to do all this as quickly as possible. After all, you need to be in time before the tax authority itself discovers errors in the declaration. Then a fine will be imposed under Article 122 of the Tax Code of the Russian Federation in the amount of 20% of the underpaid amount. Similar consequences will occur if a VAT statement is first submitted, and only then the tax and/or penalties are paid.
The need to adjust the declaration may arise, including during the period of a desk audit of the primary report. If the Federal Tax Service identifies any inconsistencies during its course, it requests clarification. But even receiving such a request does not mean that the taxpayer will be fined. The inspectorate will invite him to independently check the report, find and correct errors.
Moreover, the Tax Service strongly recommends that payers correct reports and pay additional taxes without waiting for the results of the audit. In this case, no fines are imposed (letter of the Federal Tax Service dated August 20, 2018 No. AS-4-15/16075).
In what cases is the VAT return adjusted?
If necessary, the payer has the right to adjust sales upward or downward in the VAT return. If the cost or volume of goods supplied, work performed or services provided changes, the seller is obliged to issue an adjustment invoice to the buyer (paragraph 3, clause 3, article 168 of the Tax Code of the Russian Federation).
Corrections to the VAT return are necessary if:
- the cost of goods, works, and services sold has changed;
- errors were identified in the report;
- the taxpayer sold additional products or services under the new agreements.
But here’s how to correctly enter an adjustment in the VAT return - register an adjustment invoice in the purchase book or sales book, but do not draw up an additional sheet in the report (clause 12 of the rules for maintaining a purchase book from RF PP No. 1137 of December 26, 2011).
Form and deadline for submission
The VAT clarification must be submitted strictly electronically and in the same form as the primary report. Since 2015, the declaration form has been in force, approved by the above Order No. ММВ-7-3 / [email protected] Recent changes to it were made in connection with an increase in the tax rate and came into force from the beginning of 2022 (Federal Tax Order No. dated 12/28/2018 SA-7-3/ [email protected] ).
The VAT statement must be submitted to the inspectorate at the place of registration of the taxpayer. The rule also applies if the adjustment relates to past periods during which he was served by another Federal Tax Service. In the fields of such a declaration in which OKTMO must be indicated, you must enter the code of the previous inspection.
There are no specific deadlines for sending a VAT return to the tax authority. But if you discover an error that led to an understatement of tax, it would be wise to correct it and report it as soon as possible. After all, as we have already noted, if the tax inspectorate discovers a violation first, a fine will follow.
It makes sense to submit an amendment for VAT reduction for no more than three previous years. This is due to the fact that overpayment of tax can only be refunded for this period. However, sometimes it is possible to obtain a refund of taxes for earlier periods, but only through the courts.
If, as part of a desk audit, the inspectorate requested clarification, and the taxpayer considered it necessary to submit an updated declaration instead, then he should do so within 5 working days. This is exactly how much is allocated by the Tax Code (clause 3 of Article 88) in order to send a response to the request of the Federal Tax Service.
How to enter data on CSF?
If adjustment accounts were created in the current reporting period, then their data will need to be reflected in the declaration for the same period. At the same time , when preparing the declaration, it is not the information from the account itself that is entered , but the data recorded in the relevant books.
So, when compiling it, the buyer will reflect all the required information from the purchase book in section number 3 of the declaration on line 120. And all the necessary information located in the sales book will be transferred to the same section 3, but to line 080. Thus, all relevant information about adjustment accounts will be displayed in the declaration for the current period.
So, if in the current period there were changes in the cost of services, goods or property rights, or their quantity, then simply drawing up an adjusting invoice will be completely sufficient.
There is no need to draw up a new, amended declaration or submit any application about the changes that have occurred. But at the same time, such a corrective invoice must be drawn up in accordance with all the rules (according to the Tax Code of Russia, Article 169) and timely registered in the books of purchases and sales of both the seller and the buyer.
Desk audit of the updated declaration
A desk audit will be carried out on the corrective VAT report. And there is a high probability that the tax authority will have questions. In this case, the taxpayer will receive an electronic request to provide explanations. If a clarification was submitted with a reduction in VAT, then the legality of this will be required to be justified. In addition, the Federal Tax Service has the right to request primary documents and registers for VAT accounting (sales and purchase books, invoice journal).
The response to the clarification must be sent within 5 working days strictly electronically - this procedure has been in effect since 2022. But first you need to confirm receipt of the request by sending a response receipt within 6 working days from the date of sending by the Federal Tax Service.
How to reflect VAT adjustment 1C Accounting 8.3
VAT adjustment is necessary when the purchase or sale price changes. In this situation, an adjustment invoice is generated. Using the example of the 1C Accounting 8.3 program, let's look at adjusting input VAT when the cost decreases. First, we will generate the document “Receipt of goods” and register the “Invoice received”:
When filling out, check the box “Reflect the VAT deduction in the purchase book by the date of receipt”:
Let's say we purchased a large batch of goods, and the supplier offered a discount. Accordingly, there was a decrease in the total cost and VAT. To reflect this in the program, we create a document “Receipt Adjustment”:
In the adjustment on the “Main” tab, you need to check that the basis document is reflected and there is a checkmark next to the “Restore VAT in the sales book” item.
On the “Products” tab, in the “Price” column, set a new cost, and the values in the “Cost”, “VAT” and “Total” columns will be calculated automatically:
Be sure to register an “Adjustment Invoice” in the receipt adjustment; it is this document that will reflect the decrease/increase in the amount. This data will be displayed in the corresponding field of the document:
We generate the “Purchases Book” and “Sales Book” reports, and check how the “Adjustment Invoice” will be reflected in the reporting:
The “Purchases Book” report reflected the initial amount. But in the “Sales Book” report the amount will already be displayed based on the adjustment invoice.
Now let's look at an example of increasing cost. In the same way, we fill out the “Receipt of goods” and register the document “Invoice”:
The supplier increased the price for a new batch of goods, and an “Adjustment Invoice” was issued. If the buyer agrees with the new cost, then the “Receipt Adjustment” document is drawn up in the same way as in the previous case. You can also create a receipt adjustment using the “Create based on” button from the receipt invoice.
You must fill out:
- Type of operation - “Adjustment by agreement of the parties.”
- Base.
- Restore VAT in the sales book – check the box.
On the “Products” tab, in the “Price” column, set a new price.
We register “Adjustment invoice received”:
In this situation, you need to refer to the routine operation “Creating purchase ledger entries”:
Since in the original “Invoice” document the checkbox “Reflect VAT deduction in the purchase book by the date of receipt” was checked, the data from this document is not displayed when creating purchase book entries. But the adjustment entry is reflected.
As a result, both invoices will appear in the purchase ledger:
If the cost decreases, the data from the adjustment invoice is reflected in the sales book, and if the cost increases, it is reflected in the purchase book.
When sold, an adjustment invoice for a decrease in value will go into the purchase book, and for an increase, it will go into the sales book.
Sales adjustments are made in a similar way. We create a document “Adjustment of sales” taking into account the price reduction:
And we register the “Adjustment Invoice”. Fill in the data in the appropriate field to reduce the cost:
Please note that before generating reports, you must complete regulatory VAT operations.
The Purchase Ledger report will reflect the decrease in value based on the created adjustment invoice. The “Operation Code” column will contain 18, and the column with the name of the seller will display the name of our organization:
Now we form “Adjustment of sales” taking into account the increase in price:
The “Adjustment Invoice” document will reflect the increase in the amount:
Now we generate the “Sales Book” report and see the entry for adjusting the increase in the amount:
When to issue an adjustment invoice
All changes to the sale must be carried out within the prescribed period - within 5 calendar days from the date of drawing up documents confirming the buyer’s consent to the adjustments (paragraph 3, clause 3, article 168 of the Tax Code of the Russian Federation). Such registers include a new contract or additional agreement, and other primary documents.
The seller notifies the buyer of the changes in writing by sending him a specific offer. The buyer reviews the application and makes a decision. The parties sign a new contract or additional agreement.
After this, the seller issues a correction invoice and transfers the primary document to the buyer. Both sides reflect changes in the purchase or sales books. Declarations for previous periods do not change. All adjustments are recorded in the VAT reporting for the current quarter.
