Algorithm of actions when an organization transitions from the simplified tax system to the general taxation regime

To begin with, let us remind you that not all companies and individual entrepreneurs can apply the simplified tax system. A complete list of those who are prohibited by law from working in a simplified job is contained in Article 346.12 of the Tax Code. These include companies with branches or representative offices, banks, insurers, investment and non-state pension funds, manufacturers of excisable goods, gambling companies, government and budget institutions, etc.

Switching to simplified mode is not that difficult. It's hard to stay on it. To do this, the “simplifier” must constantly keep certain events and actions under control.

Contributing events and actions

An organization is obliged to switch to the general taxation regime if in any quarter the following occurs:

• excess of the amount of income equal to 64,020 thousand rubles ((60,000,000 rubles x 1.067), where 1.067 is the deflator coefficient established for 2014 (approved by order of the Ministry of Economic Development of Russia dated November 7, 2013 No. 652)). When determining the amount of income, income from sales and non-operating income are taken into account. We must not forget that advances received from counterparties should be included in the calculation of the maximum amount of revenue. But dividends received from other organizations are not taken into account when determining the income limit. Financiers recently recalled this in a letter dated August 25, 2014 No. 03-11-06/2/42282;
• exceeding the average number of employees (100 people);
• excess of the residual value of fixed assets that are used to generate income (100,000,000 rubles);
• being included in the prohibited list from Article 346.12 of the Tax Code. For example, an organization loses the right to apply the simplified tax system if it engages in the production of excisable goods or registers branches or representative offices, or increases the total number of shares of participation of other organizations in its authorized capital to an amount exceeding 25 percent of its value.

Note that individual entrepreneurs have slightly fewer such events. For example, they do not have the opportunity to register branches (representative offices), as well as increase the participation shares of other organizations in the authorized capital, since they do not have an authorized capital. In addition, the condition for exceeding the residual value of fixed assets affects only organizations, and it does not apply to individual entrepreneurs (subclause 16, clause 3, article 346.12 of the Tax Code of the Russian Federation).

If at least one of the above events occurs, the “simplified” person will lose the right to apply the special regime from the beginning of the quarter in which this event occurred. He will be obliged to return to the general taxation system and pay generally established taxes.

Reference

The form for reporting the loss of the right to use the simplified tax system (form No. 26.2-2) is given in Appendix No. 2 to the order of the Federal Tax Service of Russia dated November 2, 2012 No. ММВ-7-3/829. The format for its presentation in electronic form was approved by order of the Federal Tax Service of Russia dated November 16, 2012 No. ММВ-7-6/878.

You will have to report your return to the general regime to your tax office within 15 calendar days after the end of the quarter in which the right to the simplified tax system was lost.

Let's look at an example of how an organization can lose the right to the simplified tax system due to excess income.
Example 1
A company applies the simplified tax system in 2014. Revenue from goods sold (work, services) for January - September of the current year amounted to 59,470,500 rubles, the amount of non-operating income for this period was 5,210,840 rubles. At the end of 9 months, the organization’s income reached 64,681,340 rubles (59,470,500 rubles + 5,210,840 rubles). And it exceeded the income limit established for the current year for the simplified tax system (64,681,340 rubles > 64,020,000 rubles). Since the condition for applying the “simplified tax” for income was violated in the third quarter, the organization loses the right to apply the simplified tax system from the beginning of this quarter. In this regard, from July 1, 2014, she needs to calculate and pay taxes in accordance with the general taxation system. The company must inform the tax office at the place of registration about the transition to the general taxation regime by October 15, 2014, using form No. 26.2-2.

Is it possible to switch to the simplified tax system in the middle of the year?

Taking into account the above, the general rule is this: a newly registered organization or individual entrepreneur can switch to the simplified tax system in the middle of the year.

And the very concept of “middle of the year” is conditional here, because a new business can submit a notification about the transition to a simplified system at the very end of the year or at the beginning. The main thing is to comply with the deadline of 30 days after registration.

For example, if an individual entrepreneur registered on November 20, then he can switch to the simplified tax system within the next 30 days. But if the entrepreneur did not know about this, then the next time he will have the opportunity to transfer from the beginning of the new year. You just need to remember to submit a notice of transfer no later than December 31 of the current year.

It is worse if an LLC or individual entrepreneur is registered at the very beginning of the year, for example, in January-February, and the 30-day deadline for submitting a notification is missed. Then you will have to wait almost a whole year for the right to the simplified tax system.

What to do when returning to general mode

After returning to the general regime, former “simplified” residents will have to pay regular taxes:

• organizations – VAT, profit tax, corporate property tax;
• for individual entrepreneurs – VAT, personal income tax, property tax for individuals.

In addition, you will need to choose an accounting method for calculating income tax - cash or accrual.

If you choose the cash method to work in the general mode, then you will not have any particular difficulties, since you used the same method under the simplified tax system. But it is available only to those whose average revenue (excluding VAT) over the last four quarters has not exceeded one million rubles (clause 1 of Article 273 of the Tax Code of the Russian Federation).

An alternative to the cash method is the accrual method. In the future we will talk only about him.

If you intend to use this method, then problems may arise when leaving the "simplified" one. For example, for transactions in respect of which:

• an unprocessed prepayment has been received;
• an advance was issued to suppliers and contractors for future supplies of goods (works, services);
• goods have been shipped (work completed, services provided) to customers, but not yet paid for by them;
• goods (work, services) have been received from suppliers, but not paid for by you.

If you apply PBU 18/02 “Accounting for corporate income tax calculations,” then due to different rules for the formation of income and expenses, you will have to accrue differences, tax assets and liabilities.

Income accounting

So, you have chosen the accrual method. In this case, when transitioning from the “simplified” regime to the general regime, we recommend remembering one basic “transitional” rule: all “transitional” income and expenses must be taken into account once - either within the framework of the “simplified” regime or within the general regime.

Thus, on the first day of the quarter from which the general regime is applied, “profitable” income will need to include all proceeds from the sale of goods that were not paid during the period of application of the simplified tax system.

The situation with advances is different. Having received an advance when working for the simplified tax system, you had to pay a single tax on it. Therefore, after the transition to the general regime, revenue for shipped goods (work, services) for which this advance was received does not need to be taken into account when calculating income tax.

Thus, when shipping goods (works, services), you recognize revenue in accounting, but not in tax accounting. Therefore, reflect a permanent negative difference. Use it to calculate the permanent tax asset:

DEBIT 68 subaccount “Calculations for income tax” CREDIT 99 subaccount “Permanent tax assets”
– a permanent tax asset has been accrued.
If you shipped goods (work, services) while working on a simplified platform, then the unpaid proceeds were not included in taxable income. Therefore, having received payment, being already in the general regime, attribute it to non-operating income as income “of previous years, identified in the reporting (tax) period” (clause 10 of Article 250 of the Tax Code of the Russian Federation). In this situation, revenue is recognized in tax accounting, but not in accounting. As a result, a positive permanent difference and a permanent tax liability appear:

DEBIT 99 subaccount “Permanent tax liabilities” CREDIT 68 subaccount “Calculations for income tax”
– a permanent tax liability has been accrued.
Thus, on the proceeds of goods (works, services) shipped but not paid for under simplified conditions, you must pay income tax in the first reporting period.

Let us show with an example how to apply PBU 18/02 when changing tax regimes.
Example 2
In December 2012, an organization bought a passenger car and put it into operation.
The book value of the car is 650,000 rubles, the useful life is 37 months in accounting and 60 months in tax accounting. In 2013, the company operated under the general tax regime, calculating income and expenses on an accrual basis. In accordance with the accounting policy in both accounts, depreciation was calculated using the straight-line method. In accounting, depreciation was calculated monthly on the car in the amount of 17,568 rubles (650,000 rubles: 37 months). In tax accounting, depreciation was calculated monthly in the amount of 10,833 rubles (650,000 rubles: 60 months). As a result, the company had a temporary deductible difference in the amount of 6,735 rubles (17,568 rubles - 10,833 rubles) and a deferred tax asset: DEBIT 09 CREDIT 68 subaccount “Calculations for income tax” – 1,347 rubles.
(RUB 6,735 × 20%) – deferred tax asset accrued. Since 2014, the organization has switched to a “simplified” system. By the beginning of 2014, the residual value of the car was:

• in accounting – 439,184 rubles (650,000 rubles – 17,568 rubles x 12 months);
• in tax accounting – 520,004 rubles (650,000 rubles – 10,833 rubles x 12 months).

Since a company using the simplified tax system cannot pay off the deferred tax asset and reduce income tax on it, it must be written off. This was done in 2013.

On December 31, the accountant made the following entry in accounting:

DEBIT 99 CREDIT 09
– 16,164 rub.
((520,004 rubles – 439,184 rubles) x 20%) – the deferred tax asset is written off. For the entire 2014 (the time of work on the simplified tax system), the organization has the right to write off as expenses part of the cost of the car in the amount of 260,002 rubles (520,004 rubles x 50%). Every quarter, the accountant records the amount of 65,000 rubles (260,000 rubles: 4 quarters) in the book of income and expenses.

However, the company worked on a simplified basis for only 6 months, having registered a branch. By the time of the return to the general taxation system (July 1, 2014), the residual value of the car turned out to be equal to:

• in accounting – 333,776 rubles (439,184 rubles – 17,568 rubles x 6 months);
• in tax accounting – 390,004 rubles (520,004 rubles – 65,000 rubles x 2 quarters).

The organization's accountant restored the temporary deductible difference in the amount of 80,820 rubles (520,004 rubles - 439,184 rubles) and the deferred tax asset written off during the transition to the simplified system:

DEBIT 99 CREDIT 09
– 16,164 rub.
– the written-off deferred tax asset was restored. For six months of work on "simplified" depreciation was accrued:

• in accounting – 105,408 rubles (17,568 rubles x 6 months);
• in tax accounting written off as expenses - 130,000 rubles (65,000 rubles x 2 quarters).

Thus, as of June 30, 2014, the temporary deductible difference was partially repaid in the amount of RUB 24,592 (RUB 130,000 – RUB 105,408).

On July 1, 2014, the accountant made the following entries in the accounting records:

DEBIT 44 CREDIT 02
– 105,408 rub.
– depreciation has been calculated on the vehicle; DEBIT 68 subaccount “Calculations for income tax” CREDIT 09
– 4918 rub.
(RUB 24,592 x 20%) – the deferred tax asset is partially repaid. From July 2014, the company will continue to charge depreciation in its accounting records in the amount of 17,568 rubles per month.

In tax accounting, it will be calculated based on the residual value of the car. This is stated in paragraph 3 of Article 346.25 of the Tax Code. And since the useful life of the machine has been established, we must proceed from it.

At the beginning of July 2014, the car had already been in use for 18 months. This means that its remaining useful life is 19 months in accounting and 42 months in tax accounting.

The depreciation amount will be:

• in accounting – 17,568 rubles;
• in tax accounting – 9286 rubles (390,004 rubles: 42 months).

That is, a temporary deductible difference will arise in accounting in the amount of 8,282 rubles (17,568 rubles - 9,286 rubles) for 19 months (as long as the car is depreciated in accounting):

DEBIT 44 CREDIT 02
– 17,568 rub.
– depreciation has been calculated on the vehicle; DEBIT 09 CREDIT 68 subaccount “Calculations for income tax”
– 1656 rubles.
(RUB 8,282 x 20%) – deferred tax asset accrued. After 19 months, depreciation will no longer be calculated in accounting, but will continue to be calculated in tax accounting (in the amount of 9,286 rubles). From this point on, temporary deductible differences and deferred tax assets will be gradually repaid until the vehicle is fully depreciated on the tax books. Every month the Progress accountant will make the following entries:

DEBIT 68 subaccount “Calculations for income tax” CREDIT 09
– 1656 rub. (RUB 8,282 x 20%) – the deferred tax asset is partially repaid.

Expense accounting

Let us turn again to the main transitional rule. In accordance with it, the cost of goods (work, services) that were purchased during the period of work in the “simplified” regime, and paid for after leaving the special regime, can reduce taxable profit in the first reporting period of work in the general regime.

According to financiers, only former “simplifiers” with the object “income minus expenses” can take into account unpaid expenses when switching to a common system. Those who used the “income” object do not have the right to do so (letters of the Ministry of Finance of the Russian Federation dated 04/04/2013 No. 03-11-06/2/10983, dated 01/19/2012 No. 03-03-06/1/20 and dated 29.01. 2009 No. 03-11-06/2/12).

However, the judges in the resolution of the Federal Antimonopoly Service of the Far Eastern District dated December 6, 2010 No. Ф03-8167/2010 indicated that the costs incurred under the simplified tax system must be taken into account in the general regime, regardless of which object of taxation was applied in the special regime. The specifics of the transition from the simplified tax system to the general system are established by paragraph 2 of Article 346.25 of the Tax Code for all organizations without exception. The fact that this rule is not applied by “simplified people” with the object “income” is not mentioned in this article. The arbitrators came to a similar conclusion in the resolution of the Federal Antimonopoly Service of the Ural District dated October 4, 2010 No. F09-8094810-S3 in case No. A50-3582/2010.

Consequently, an organization applying the simplified tax system with the object “income”, when switching to the general regime, can take into account in expenses accounts payable for goods (works, services) and property rights acquired during the period of application of the special regime. But given the opinion of officials on this issue, they will most likely have to defend their position in court.

Income and expenses of the transition period

Income

The rules for returning to the general taxation regime are established by Art. 346.25 Tax Code of the Russian Federation.

According to paragraph 2 of Art. 346.25 of the Tax Code of the Russian Federation, organizations that used the simplified taxation system, when switching to calculating the tax base for corporate income tax using the accrual method, comply with the following rules:

1. Recognize as income income in the amount of proceeds from the sale of goods (performance of work, provision of services, transfer of property rights) during the period of application of the simplified taxation system, payment (partial payment) of which was not made before the date of transition to calculating the tax base for income tax according to the accrual method.

That is, if goods (work, services) were shipped to the simplified tax system, and payment for them was not received before the transition to the simplified tax system, then the proceeds from their sale must be taken into account for profit tax purposes (clause 1, clause 2, article 346.25 of the Tax Code of the Russian Federation) :

– if the organization switched to OSN voluntarily - on January 1 of the year from which it applies OSN;

– if the organization switched to the simplified tax system due to the loss of the right to the simplified tax system - on the 1st day of the first month of the quarter from which it lost the right to the simplified tax system.

2. The specified income is recognized as income of the month of transition to calculating the tax base for corporate income tax using the accrual method.

Payment received for goods (work, services) shipped to the simplified tax system is not taken into account separately for tax purposes.

Example: An organization that used a simplified taxation system in 2013 switched to a general taxation regime using the accrual method from January 1, 2014.

In November 2013, the organization shipped products worth 200 thousand rubles to the buyer. Payment for products according to the contract must take place at the beginning of February 2014.

Revenue in the amount of 200 thousand rubles. should be recognized as income in January 2014 when calculating the tax base for income tax.

The main transitional rule: all “transitional” income and expenses must be taken into account once - either within the framework of the simplification or within the framework of the general regime.

Expenses

According to paragraphs. 2 p. 2 art. 346.25 of the Tax Code of the Russian Federation, organizations that applied the simplified tax system, when switching to calculating the tax base for corporate income tax using the accrual method, recognize as expenses expenses for the acquisition during the period of application of the simplified tax system of goods (work, services, property rights) that were not paid (partially) paid) by the taxpayer before the date of transition to calculating the tax base for income tax on the accrual basis. Expenses are recognized as expenses of the month of transition to calculating the tax base for corporate income tax using the accrual method.

If an organization on the simplified tax system used the object “income” , then, in the opinion of the Ministry of Finance, any expenses related to the period of application of the simplified tax system cannot be taken into account when switching to the general regime, in particular the cost of goods purchased on the simplified tax system, but paid for under the general regime (Letter Ministry of Finance of Russia dated April 4, 2013 No. 03-11-06/2/10983).

Determining the cost of fixed assets and intangible assets

It may happen that by the time you lose your right to the simplified tax system, the cost of any fixed assets or intangible assets will not be fully taken into account in your expenses. The question arises: is it possible to “complete” it after losing the simplified tax system?

If fixed assets (intangible assets) were acquired during the period of application of the simplified tax system, then everything will depend on the object of taxation.

For example, if the “simplified person” used the object “income”, then after the loss of the simplified tax system the cost of fixed assets (intangible assets) cannot be included in expenses when calculating income tax (letter of the Federal Tax Service of Russia dated October 2, 2012 No. ED-4-3/16539, Ministry of Finance of Russia dated 07.12.2012 No. 03-03-06/1/633).

But if the “simplifier” used the “income minus expenses” object, then the unaccounted cost of the objects is written off as “profitable” expenses through depreciation. In this case, the residual value of fixed assets (intangible assets) on the date of transition to the general regime is determined as the difference between the initial cost of the object and the cost written off as expenses when applying the “income-expenditure” simplified tax system.

What happens if the limits are exceeded?

The main advantage of the simplified taxation system is lower rates. So, the right to pay taxes at a minimum depends, first of all, on compliance with the limits.

Standard rates for the simplified tax system are:

• 6% on the “Revenue” object;
• 15% on the “Income minus expenses” object.

These rates apply only if the income received (revenue and certain non-operating income) does not exceed the usual limits on annual income and number of employees. Moreover, in the regions of the Russian Federation, rates can be even lower: up to 1% for the simplified tax system for Income and up to 5% for Income minus expenses.

If the income or number of employees is greater, but the limits for the application of the simplified tax system are observed, then the tax is paid at increased rates:

• 8% on the “Revenue” object;
• 20% on the “Income minus expenses” object.

For convenience, we will collect all the limits in a table.

Table: income limits for applying the simplified tax system in 2022

Insurance premiums

Some “simplified” workers, before losing the right to the simplified tax system, calculated insurance contributions to extra-budgetary funds using general tariffs: 26 percent in the Pension Fund, 2.9 percent in the Social Insurance Fund, 5.1 percent in the Federal Compulsory Medical Insurance Fund. If such an organization loses the right to use the simplified tax system, then no changes will occur in terms of calculation and payment of contributions. It will continue to use general tariffs.

note

If the policyholder loses the right to apply reduced insurance premium rates, then in the RSV-1 Pension Fund calculation, compiled at the end of the period when this right was lost, two subsections 2.1 will need to be filled out - separately for each premium rate.

Things are different if the former “simplified” applied a reduced rate of insurance premiums. The category of beneficiaries, in particular, includes companies engaged in textile and clothing production, furniture production, construction, healthcare, and the provision of social services (subclause 8, clause 1, article 58 of Law No. 212-FZ of July 24, 2009).

If they are from a special regime, then from the beginning of the quarter when they lose the right to use the simplified tax system, they are required to pay insurance premiums at the basic rates (letter of the Ministry of Health and Social Development of Russia dated November 24, 2011 No. 5004-19). And if the loss of the simplified payment becomes known only in the last month of the quarter, contributions for the first, and maybe even the second, months will need to be additionally charged and paid.

In this case, you will not have to pay a penalty. After all, the restored amount of insurance premiums is not an additional payment due to incomplete payment of insurance premiums on time. And for previous periods, the reduced tariff was applied lawfully. Therefore, there are no grounds for charging a penalty (letter from the Ministry of Labor of Russia dated 05/04/2014 No. 17-4/ОOG-243, dated 07/05/2013 No. 17-3/1084).

An example will show what to do with reporting.
Example 3
Let's return to the conditions of example 2. Since the organization switched to the general regime from July 1, 2014, starting from the third quarter it must apply general insurance premium rates. Different tariff codes are provided for “simplified” and “general” tariffs. Therefore, in the calculation of the RSV-1 Pension Fund for 9 months of 2014 and for 2014, the company must include two sheets each of subsection 2.1 “Calculation of insurance premiums according to the tariff” of section 2. In subsection 3.5 “Calculation of the compliance of conditions for the right to apply a reduced tariff for paying insurance contributions by insurance premium payers specified in clause 8 of part 1 of article 58 of the Federal Law of July 24, 2009 No. 212-FZ” section 3, data for the first half of 2014 should be indicated, confirming the legality of using reduced insurance premium rates.

Income tax

After switching to the general regime, you need to calculate taxes as if you were a newly created organization (clause 4 of Article 346.13 of the Tax Code of the Russian Federation).
Newly created ones can pay advance income tax payments quarterly. But they are forced to comply with the condition: sales revenue should not exceed one million rubles per month or three million rubles per quarter. Having violated the specified limit, the company will have to pay monthly advance payments from the next reporting (tax) period (clause 5 of Article 287 of the Tax Code of the Russian Federation). At the same time, there is no need to pay penalties for late transfer of advance payments to the “transition” quarter (clause 4 of Article 346.13 of the Tax Code of the Russian Federation). Example 4
LLC from July 1, 2014 switched from the simplified tax system to the general tax regime. Revenue from sales of products amounted to: in July - 800,000 rubles, in August - 1,100,000 rubles and in September - 1,200,000 rubles. Based on paragraph 2 of Article 286, paragraph 5 of Article 287 and paragraph 4 of Article 346.13 of the Tax Code, the company is obliged to pay a quarterly advance payment based on the results of the third quarter. But since revenue in the third quarter exceeded 3,000,000 rubles (3,100,000 rubles > 3,000,000 rubles), the company must make monthly advance payments during the next reporting period (fourth quarter). The amount of each payment will be 1/3 of the amount of the advance payment calculated for the third quarter.

If a company incurred a loss during the application of the simplified tax system, then after returning to the general regime it cannot take it into account in tax accounting.

VAT

“Simplers” are not VAT payers, with the exception of VAT on the import of goods and when carrying out transactions under simple partnership agreements (joint activity agreements).

Therefore, difficulties in calculating this tax after the loss of the special regime may arise if the “simplified” person receives an advance payment, but ships goods (performs work, provides services), transfers property rights, having already switched to the general regime. In this case, he must include the prepayment amount in “simplified” income and pay a single tax on it.

After switching to the general regime, the company (entrepreneur) is obliged to issue VAT invoices to customers and pay tax to the budget. But since the prepayment was received during the period of work on the “simplified” system, VAT was not included in it.

Therefore, after switching to the general regime, draw up an additional agreement with the buyer to the contract, increasing its amount by VAT. The buyer will remit the tax to you.

If the terms of the contract cannot be changed, you will pay VAT to the budget at your own expense. As a result, you will lose a significant part of your profit.

Working on the simplified tax system, a company can purchase materials for production needs and goods for resale.

She must include the input VAT on materials in “simplified” expenses in full in the period when the materials are paid to the seller and posted to the warehouse.

The company will include input VAT on goods purchased for resale in expenses in proportion to the cost of goods paid to the seller and shipped to the buyer.

However, the organization may not use part of the resources during the period of work under the “simplified” tax regime, but do so under the general tax regime. Since inventories were not included in expenses when calculating the single tax, the company has the right to deduct VAT on them when it becomes a tax payer (clause 6 of Article 346.25 of the Tax Code of the Russian Federation). After all, the resources will now be used in operations subject to VAT. Such a VAT deduction can be applied from the first quarter, in which work resumes under the general regime (letter of the Ministry of Finance of Russia dated March 15, 2011 No. 03-07-11/53).

A more complex option is also possible, when a company buys inventories under the general regime, accepts VAT on them for deduction, and then becomes a payer of the simplified tax system.
The company recovers the deductible VAT and takes it into account as part of other expenses. At the same time, part of the goods purchased under the general regime of activity, and the other - after returning to the general taxation system. It will not be possible to deduct the recovered VAT on inventories that were not used while working on the simplified system. Since this is not provided for by the Tax Code (letters of the Ministry of Finance of Russia dated June 23, 2010 No. 03-07-11/265, dated January 27, 2010 No. 03-07-14/03, dated June 30, 2009 No. 03-11-06/3/174 ). Example 5
In November last year, an LLC, working in general mode, bought goods for 118,000 rubles (including VAT - 18,000 rubles).
We didn't manage to sell them last year. Since the beginning of this year, I have worked in this mode for six months, having lost the right to it from the beginning of the third quarter. During this time, goods worth 60,000 rubles were sold. The company was then forced to return to paying regular taxes. The accountant reflected transactions with this batch of goods with postings: in November 2013 DEBIT 41 CREDIT 60 - 100,000 rubles. (118,000 – 18,000) – goods are accepted for accounting; DEBIT 19 CREDIT 60 – 18,000 rub. – VAT on goods is taken into account; DEBIT 68 subaccount “Calculations for VAT” CREDIT 19 – 18,000 rub. – accepted for deduction of VAT on goods; DEBIT 60 CREDIT 51 – 118,000 rub. – goods have been paid to the supplier. December 31, 2014 DEBIT 19 CREDIT 68 subaccount “VAT calculations” – 18,000 rubles. – input VAT on goods has been restored; DEBIT 91 subaccount “Cost of sales” CREDIT 19 – 18,000 rub.
– the recovered VAT is written off as other expenses. An invoice for VAT amounting to 18,000 rubles was entered into the sales book.

The “fate” of VAT on fixed assets and intangible assets depends on the period of their purchase (creation, construction, etc.): before the transition to the simplified system or while working on the simplified system.

If a company acquired a non-current asset under the general taxation system, then on the eve of the transition to the simplified system, it restores the input VAT, writing it off as other expenses.

If a non-current asset was acquired by a “simplified” person, then the VAT presented by the supplier must be taken into account in the cost of the property. When putting a fixed asset into operation (accepting intangible assets for accounting), the tax can be written off as an expense.

If the object was not put into operation, then the costs of its purchase were not taken into account when calculating the “simplified” tax (subclause 1, clause 3, article 346.16 of the Tax Code of the Russian Federation). Consequently, the organization also did not take into account the amount of input VAT in expenses that reduce the tax base. It follows from this that after the transition to the general taxation regime, input VAT on non-current assets that were not put into operation under the simplified tax system can be deducted in the generally established manner (clause 1 of Article 172 of the Tax Code of the Russian Federation). The same is stated in letters of the Ministry of Finance of Russia dated March 17, 2010 No. 03-11-06/2/36 and dated January 29, 2009 No. 03-07-10/03.

Features of the transition to the simplified tax system when combined with the PSN

Individual entrepreneurs have another special regime - PSN. An individual entrepreneur patent is issued for a specific type of activity and is valid from one to several months.

Is it possible to switch from a patent to the simplified tax system in the middle of the year? Yes, but if the individual entrepreneur announced in advance the choice of a simplified regime. How does this happen in practice?

Let’s assume that the entrepreneur did not submit a notification to the simplified tax system after registration, so he is recognized as a payer of the general taxation system. Moreover, at any time of the year he can apply for a patent and pay taxes for a specific type of activity within the framework of the PSN. If the individual entrepreneur violates the terms of application of the patent or its validity period expires, then the business remains to work on OSNO.

If, immediately after registration, the entrepreneur announced the choice of a simplified system, but at the same time filed a patent, then he combines two modes: simplified tax system and PSN. In this case, if the terms of application of the patent are violated, the individual entrepreneur loses the right to the PSN and remains only on a simplified basis. This is stated in paragraph 6 of Article 346.45 of the Tax Code of the Russian Federation.

In a letter dated June 29, 2017 N SD-4-3/ [email protected] , the Federal Tax Service described how to switch from a patent to the simplified tax system in the middle of the year if the terms of the patent tax system are violated. In this case, the tax is recalculated within the simplified tax system from the date of issue of the patent.

Moreover, if the individual entrepreneur has already paid the cost of the patent or part of it, then this amount is taken into account when calculating the simplified tax. To reflect these amounts in the new declaration under the simplified tax system, special fields have been provided.

Organizational property tax

The object of taxation for corporate property tax is movable and immovable property, which is taken into account on the balance sheet as fixed assets according to accounting data.

The tax base for this tax is calculated, in particular, based on the residual value of real estate and movable property accepted for accounting as fixed assets before January 1, 2013 (clause 1, subclause 8, clause 4, article 374 of the Tax Code of the Russian Federation).

And even if by the time you lose the “simplified tax” the value of your fixed asset has been completely written off in tax accounting, but not completely written off in accounting, it must be included in the base for calculating property tax.

Since, when switching from the simplified tax system to the general regime, taxes are considered as for a newly created organization, for calculating the tax, the residual value of fixed assets in those months when is taken equal to zero (clause 1 of article 375, clause 4 of article 346.13 of the Tax Code of the Russian Federation).

note

Starting from 2015, “simplified” people become payers of corporate property tax, paid in respect of real estate objects, the tax base for which is determined as their cadastral value (clause 2 of Article 346.11 as amended by Law No. 52-FZ dated April 2, 2014).

What you need to pay attention to when switching from simplified tax system to OSNO

There are two reasons for switching from the simplified taxation system (STS) to the general one (OSNO). For example, a taxpayer’s business is expanding, income is growing, and transactions may also appear with large buyers who need to be reimbursed for VAT. Taking into account such circumstances, the taxpayer voluntarily and consciously decides to switch to OSNO. Then he submits a notice of refusal to apply the simplified tax system in form No. 26.2-3 to the Federal Tax Service at the place of registration before January 15 of the year in which he changes the tax regime. The notification indicates the Taxpayer Identification Number (TIN), or KPP for an LLC, tax authority code, company name or full name of the entrepreneur, and the year of transition to the general system.

And a completely different situation is when a company or individual entrepreneur (IP), “leaving the simplified system”, automatically switches to OSNO. This happens when a taxpayer ceases to meet at least one of the following criteria for the simplified tax system, namely:

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the average number of employees exceeded 100 people;

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annual income since the beginning of 2022 has exceeded the limit of 150 million rubles;

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a branch was opened;

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the residual value of fixed assets exceeded 150 million rubles;

—

the share of participation of other companies increased to more than 25%;

—

the company began to engage in activities that are incompatible with the simplified tax system.

By the way, these rules may change. A bill is being prepared according to which a company can violate the limits on the number of employees and income once and still remain on the simplified tax system, albeit with an increased tax rate. But for now this is only in plans.

The taxpayer must submit a message in form No. 26.2-2 about the transition from the simplified tax system to the OSNO if the right to use is lost no later than the 15th day of the month following the quarter in which this happened. The transition from the simplified tax system to the OSNO is counted only when the document is submitted to the tax office. The exception is cases when inspectors themselves identify a violation of the criteria during an inspection. Please note that failure to report or late submission is subject to tax and administrative liability.

In addition, a simplified person who has “flighted from the simplified tax system” must submit a declaration under the simplified tax system no later than the 25th day of the month following the quarter in which the right to apply this tax regime was lost.

What kind of reporting does a taxpayer submit when switching to OSNO?

Starting from the first month of the quarter in which the taxpayer lost the right to the simplified tax system, he applies the OSNO and submits the appropriate reports within the required time frame:

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VAT declaration in electronic form for the quarter in which the right to the simplified tax system was lost, no later than the 25th day of the month following this quarter;

—

income tax return:

• if the right to the simplified tax system is lost in the 1st, 2nd or 3rd quarter - a declaration for the 1st quarter, half a year or 9 months of the calendar year, respectively, no later than the 28th day of the month following the reporting period;
• if the right to the simplified tax system is lost in the 4th quarter - a declaration for the year no later than March 28 of the next year.

If a taxpayer has fixed assets (fixed assets) that are subject to property tax based on book value, he also needs to submit a declaration for this tax. Such fixed assets include:

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movable property items accepted for accounting as fixed assets before January 1, 2013 and included in depreciation groups from three to ten;

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objects of movable property accepted for accounting starting from January 1, 2013 and meeting the conditions:

• belong to depreciation groups from three to ten;
• received as a result of the reorganization or liquidation of an organization, as well as from a related party;

—

real estate objects that are not subject to property tax based on cadastral value.

If the right to the simplified tax system is lost in the 1st, 2nd or 3rd quarter and the law of the corresponding constituent entity of the Russian Federation does not establish reporting periods for property tax, the calculation of the advance payment for property tax is submitted no later than the 30th day of the month following the quarter, in which the right to the simplified tax system has been lost. If the right to the simplified tax system is lost in the 4th quarter, a property tax declaration must be submitted no later than March 30 of the following year.

How to take into account income when switching from simplified tax system to OSNO

If a taxpayer received an advance payment using the simplified tax system, and shipped goods, performed work or provided a service using OSNO, then he must take this revenue into account when calculating tax under the simplified tax system. After all, the simplified system uses the cash method, and income is generated as payment is received, regardless of the date of sale. If goods (work, services) were shipped under a simplified taxation system, and payment for them was received after the transition to the general regime, then the proceeds from their sale must be taken into account when taxing profits:

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on January 1 of the year from which the OSNO applies, if the organization transferred voluntarily;

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on the first day of the first month of the quarter from which the taxpayer lost the right to the simplified tax system.

The taxpayer must also include in the “transitional” income the amount of receivables from buyers (clients) accumulated during the application of the simplified tax system. After all, the accrual method used for taxation of profits on OSNO assumes that revenue is reflected in income as it is shipped. From which it follows that after the transition from the “simplified” regime to the general regime, the cost of goods sold but not paid for (work, services) must be included in income. Moreover, it is required to increase income in the month in which the organization switched to the general taxation system, regardless of when the receivables are actually repaid.

How to take into account expenses when switching from simplified tax system to OSNO

As part of the “transitional” expenses, the taxpayer who applied the “simplified tax” must include the amounts of outstanding accounts payable to suppliers, the budget, employees and others. For example, if services were provided to an organization before its transition to OSNO, and paid for after it, their cost cannot be taken into account when calculating tax under the simplified tax system, since the simplified system uses the cash method of recognizing expenses. In this situation, the cost of services provided to the organization must be taken into account when calculating the tax base for income tax.

Under the accrual method, expenses are recognized in the period in which they are incurred. And the date of payment of expenses does not affect the date of their recognition in any way. Therefore, after the transition from “simplified” to OSNO, the cost of services provided but not paid for must be included in expenses in the month in which the organization switched to the general taxation system. The actual date of repayment of accounts payable does not change this procedure.

What to do with VAT after switching to OSNO

An organization that has lost the right to the simplified tax system becomes a VAT payer from the first day of the quarter in which this happened. And from the beginning of this period, VAT is charged on all transactions subject to this tax.

Please note that for goods, works, services, property rights sold on an advance payment basis, there is a separate procedure. In the event that an advance for them was received before the transition to the general taxation system, and they were sold after that, VAT must be charged only on the date of sale. But, if the receipt of an advance and the sale of goods, works, services, property rights against the received advance occurred after the transition to the general taxation system, VAT must be accrued both on the date of receipt of the advance and on the date of sale. When calculating VAT upon sale, previously accrued VAT on the advance payment can be deducted.

In a situation where goods (works, services, property rights) are shipped after the transition to a general taxation system without prepayment, VAT must be charged. But if they are implemented before the date of transition to the general regime, VAT does not need to be charged, since at that time the organization was not yet a payer of this tax. Amounts of accounts receivable for goods (work, services) shipped during the period of application of the simplified tax system, but repaid after the transition to OSNO, do not increase the VAT tax base.

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Last declaration

Having lost the right to the simplified tax system, the former “simplified tax” must calculate the single tax for the last time and submit a “simplified” declaration.

If you leave the simplified system before the end of the year, the last reporting period for the single tax is also the last tax period (letter of the Federal Tax Service of Russia dated March 27, 2012 No. ED-4-3/5146). And the last tax period, as controllers indicate, will be considered the reporting period preceding the quarter from the beginning of which the company switches to the general regime.

Thus, for a “simplified” person with the object “income,” the last payment for the “simplified” tax will be the payment for the reporting period preceding the quarter in which the right to the simplified tax system was lost. All he has to do is submit a tax return for this reporting period. This must be done no later than the 25th day of the first month following the quarter in which the company lost the right to the special regime (clause 3 of Article 346.23 of the Tax Code of the Russian Federation).

This rule also applies to most “simplified” people with the object “income minus expenses”. Why most and not all? The fact is that, under certain conditions, some firms and entrepreneurs are required to calculate and pay a minimum tax of one percent of the amount of income received. This happens if the amount of tax calculated at the end of the tax period in the general manner is less than the amount of the minimum tax calculated for the same period. Or when a loss is received at the end of the tax period (clause 6 of Article 346.18 of the Tax Code of the Russian Federation).

For a long time, officials strongly recommended using this procedure for calculating the minimum tax for “simplified” people who had lost the right to use the special regime before the end of the year (letter of the Federal Tax Service of Russia dated March 27, 2012 No. ED-4-3/5146, Ministry of Finance of Russia dated June 8, 2005 No. 03-03- 02-04/1-138, dated 05.24.2005 No. 03-03-02-04/2/10).

The Presidium of the Supreme Arbitration Court of Russia came to a similar conclusion. In the resolution dated July 2, 2013, senior judges indicated that the tax period in relation to the simplified tax system is the reporting period preceding the quarter in which the “simplified” lost the right to apply this tax regime.

This means that a company (entrepreneur) that has lost the right to the income-expenditure simplified tax system will need to submit a final declaration and transfer the tax itself no later than the 25th day of the first month following the quarter in which it lost the opportunity to apply the special regime (clause 7 of Art. 346.21, paragraph 3 of Article 346.23 of the Tax Code of the Russian Federation).

Let's look at an example of how to pay tax and file a return in this case.
Example 6
An organization worked for a year using the simplified tax system, paying a single tax on the difference between income and expenses. For six months, she received income in the amount of 30,500,000 rubles, expenses for this period amounted to 29,000,000 rubles. In September, the company's income exceeded the permissible limit. As a result, the company lost the right to a simplified regime in the third quarter. The amount of the advance payment for the single tax for the half-year was: (30,500,000 rubles – 29,000,000 rubles) × 15% = 225,000 rubles. The amount of the minimum tax for the tax period is: RUB 30,500,000. × 1% = 305,000 rub. Since the minimum tax is greater than the single tax, the company must submit a final return and pay the minimum tax. The tax must be transferred no later than the 25th day of the first month following the third quarter, i.e. no later than October 25 of the current year. The company's accountant must send a message to the tax office about the loss of the right to use the simplified tax system in form 26.2-2 no later than October 15 of the current year.

Thus, if an organization has lost the right to use the simplified tax system during the year and has not completed the entire tax period under this special regime, it is not exempt from paying the minimum tax (if there are appropriate grounds for this).

Boris Svain, for the magazine “Practical Accounting”

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The right to apply the simplified tax system

When a company or individual entrepreneur switches to the simplified tax system, it is envisaged that it will operate without VAT. In addition, counterparties will not need to issue invoices, or VAT will not need to be allocated when issuing them. However, not all counterparties believe companies and entrepreneurs and require confirmation that the taxpayer really can not allocate VAT and does not have to pay this tax. The legislation does not provide for the need for taxpayers to confirm to their counterparties the right to use the simplified tax system. But sometimes it’s a good idea to do this, as it often helps maintain relationships with clients. The right to use the simplified tax system for both entrepreneurs and individual entrepreneurs is confirmed by the following documents :

1. A copy of the notice of application of the simplified procedure with a note from the Federal Tax Service. The taxpayer sent this notification to the tax office when he switched to this special regime.
2. A copy of the first sheet of the simplified tax system declaration, with a mark from the Federal Tax Service.
3. A copy of the letter from the Federal Tax Service on the application of the simplified procedure (form 26.2-7).