The procedure for exemption from VAT in 2021-2022

The Tax Code states that individual entrepreneurs and organizations using the simplified tax system are exempt from VAT. But there are a number of exceptions when you still have to pay tax. We will tell you who should pay VAT on the simplified tax system and whether it can be reimbursed.

When to pay VAT on the simplified tax system

• You have issued a VAT invoice to the buyer
• You bought goods from a foreigner
• You conduct transactions with state property
• You have formalized trust management of property

VAT payment deadlines in 2022

How to recover VAT on the simplified tax system

When to pay VAT on the simplified tax system

Entrepreneurs and organizations using the simplified tax system are exempt from paying VAT, this conclusion follows from Art. 346.11 Tax Code of the Russian Federation. But it is precisely because of this that simplifiers have problems finding buyers: if a company buys goods on OSNO without VAT, it will not be able to reimburse the input tax.

In general, the VAT rate is 20%, but a number of goods are taxed at preferential rates of 10% and 0% (Article 164 of the Tax Code of the Russian Federation). Additionally, there are lists of goods and services that are exempt from VAT. It includes operations from Art. 149 of the Tax Code of the Russian Federation and import of goods included in Art. 150 Tax Code of the Russian Federation.

Every simplifier can work with VAT: issue an invoice with the tax and transfer it to the budget. In addition, the Tax Code of the Russian Federation provides for several transactions for which payment of VAT and issuance of an invoice are mandatory.

You have issued a VAT invoice to the buyer

If, at the request of the buyer or by mistake, you issued an invoice with allocated VAT, you are required to pay tax to the budget (clause 5 of Article 173 of the Tax Code of the Russian Federation). In this case, you will be required to pay tax and submit a VAT return.

The VAT return must include the information given in the issued invoices.

A separate case is when you act as an intermediary and purchase goods on your own behalf, you must re-issue invoices from the seller to the buyer. Such transactions are recorded in the invoice journal. For invoices received and issued in the current month, information must be sent to the Federal Tax Service by the 20th day of the next month (clause 5.2 of Article 174 of the Tax Code of the Russian Federation). If you follow the rules, you will not have to pay tax.

You bought goods from a foreigner

Import of goods is another operation that requires payment of VAT (clause 2 of Article 346.11 of the Tax Code of the Russian Federation). In this case, the procedure for paying VAT depends on the country of the seller:

1. The seller is located in the EAEU country - Belarus, Armenia, Kazakhstan and Kyrgyzstan. You need to pay VAT after you accept the goods for accounting. The tax is calculated from the sum of the cost of the goods and the excise tax accrued on it if excisable products are purchased.

2. The seller is located in a country that is not part of the EAEU. You need to pay VAT at customs. The tax is calculated on the sum of the cost of the goods, customs duties and excise taxes.

If you bought a product in Russia, then the tax accrual depends on whether the seller has a permanent establishment in the Russian Federation. If it is not there, then you become a tax agent - you receive the obligation to withhold VAT from the seller and pay it to the budget.

You conduct transactions with state property

Purchasing and leasing state property also makes you a VAT agent, since government agencies themselves cannot pay VAT and submit a report to the inspectorate. In this case, you must deduct the tax and pay it to the budget.

For example, when leasing state property, you must withhold VAT from the rental payment and transfer it to the budget. The landlord will receive less money.

The calculation of the tax amount depends on how the price is stated in the contract - including VAT or excluding VAT. In the first case, use a rate of 20/120, in the second - just 20%.

When purchasing government property, you also become a tax agent and withhold tax on the income received by the seller. The tax may not be withheld if the following conditions for the redemption of state and municipal property owned by the state are met:

• you have rented this state property for at least two years;
• you have no debts on rent and any fines or penalties accrued to it;
• real estate is not included in the list of property free from the rights of third parties;
• on the day of concluding the purchase and sale agreement, you are classified as a small or medium-sized enterprise.

When you act as a tax agent, you are required to issue an invoice yourself - in your name on behalf of the seller. At the end of the quarter, information from such an invoice is reflected in the second section of the VAT return.

You have formalized trust management of property

The sale of property that you received in trust is also subject to VAT (Article 174.1 of the Tax Code of the Russian Federation). You must pay VAT on the sales income and issue an invoice. In the “Seller” column, an additional note “D.U.” is added.

The remuneration that you, as a trustee, receive from the owner of the property is not subject to VAT.

Article 346-11. General provisions (Tax Code of the Russian Federation)

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1. The simplified taxation system for organizations and individual entrepreneurs is applied along with other taxation regimes provided for by the legislation of the Russian Federation on taxes and fees (as amended by the Federal Law of July 21, 2005 N 101-FZ - Collection of Legislation of the Russian Federation, 2005, N 30 , art. 3112).

The transition to a simplified taxation system or a return to other taxation regimes is carried out by organizations and individual entrepreneurs voluntarily in the manner prescribed by this chapter (as amended by the Federal Law of July 21, 2005 N 101-FZ - Collection of Legislation of the Russian Federation, 2005, N 30, Article 3112).

2. The application of a simplified system of taxation by organizations provides for their exemption from the obligation to pay corporate income tax (with the exception of tax paid on income taxed at the tax rates provided for in paragraphs 1-6, 3 and 4 of Article 284 of this Code), property tax organizations (except for the tax paid in respect of real estate objects, the tax base for which is determined as their cadastral value in accordance with this Code). Organizations applying the simplified taxation system are not recognized as taxpayers of value added tax, with the exception of value added tax payable in accordance with this Code when importing goods into the territory of the Russian Federation and other territories under its jurisdiction (including tax amounts subject to payment upon completion of the customs procedure of a free customs zone on the territory of the Special Economic Zone in the Kaliningrad Region), as well as value added tax paid in accordance with Article 174-1 of this Code (as amended by Federal Law of December 31, 2002 N 191 -FZ - Collection of Legislation of the Russian Federation, 2003, No. 1, Article 6; Federal Law of July 7, 2003 N 117-FZ - Collection of Legislation of the Russian Federation, 2003, No. 28, Article 2886; Federal Law of July 21, 2005 N 101-FZ - Collection of Legislation of the Russian Federation, 2005, No. 30, Article 3112; Federal Law of May 17, 2007 N 85-FZ - Collection of Legislation of the Russian Federation, 2007, No. 23, Art. 2691; Federal Law of July 22, 2008 N 155-FZ - Collection of Legislation of the Russian Federation, 2008, N 30, Art. 3611; Federal Law of July 24, 2009 N 213-FZ - Collection of Legislation of the Russian Federation, 2009, N 30, Art. 3739; Federal Law of November 27, 2010 N 306-FZ - Collection of Legislation of the Russian Federation, 2010, N 48, Art. 6247; Federal Law of April 2, 2014 N 52-FZ - Collection of Legislation of the Russian Federation, 2014, N 14, Art. 1544; Federal Law of November 24, 2014 N 376-FZ - Collection of Legislation of the Russian Federation, 2014, N 48, Art. 6657; Federal Law of March 30, 2016 N 72-FZ - Collection of Legislation of the Russian Federation, 2016, N 14, Art. 1902).

(The paragraph has lost force on the basis of Federal Law of July 24, 2009 N 213-FZ - Collection of Legislation of the Russian Federation, 2009, N 30, Art. 3739)

Other taxes, fees and insurance premiums are paid by organizations applying the simplified taxation system in accordance with the legislation on taxes and fees (as amended by Federal Law of July 21, 2005 N 101-FZ - Collection of Legislation of the Russian Federation, 2005, N 30, Article 3112; Federal Law of November 30, 2016 N 401-FZ - Collection of Legislation of the Russian Federation, 2016, N 49, Article 6844).

3. The application of a simplified taxation system by individual entrepreneurs provides for their exemption from the obligation to pay personal income tax (in relation to income received from business activities, with the exception of tax paid on income in the form of dividends, as well as on income taxed at tax rates , provided for in paragraphs 2 and 5 of Article 224 of this Code), property tax for individuals (in relation to property used for business activities, with the exception of objects of taxation with property tax for individuals included in the list determined in accordance with paragraph 7 of Article 378- 2 of this Code, taking into account the features provided for in paragraph two of paragraph 10 of Article 378-2 of this Code). Individual entrepreneurs applying the simplified taxation system are not recognized as taxpayers of value added tax, with the exception of value added tax payable in accordance with this Code when importing goods into the territory of the Russian Federation and other territories under its jurisdiction (including tax amounts, payable upon completion of the customs procedure of the free customs zone on the territory of the Special Economic Zone in the Kaliningrad Region), as well as value added tax paid in accordance with Article 174-1 of this Code (as amended by Federal Law of December 31, 2002 N 191-FZ - Collection of Legislation of the Russian Federation, 2003, No. 1, Article 6; Federal Law of July 7, 2003 N 117-FZ - Collection of Legislation of the Russian Federation, 2003, No. 28, Article 2886; Federal Law of July 21 2005 N 101-FZ - Collection of Legislation of the Russian Federation, 2005, N 30, Article 3112; Federal Law of May 17, 2007 N 85-FZ - Collection of Legislation of the Russian Federation, 2007, N 23, Art. 2691; Federal Law of July 22, 2008 N 155-FZ - Collection of Legislation of the Russian Federation, 2008, N 30, Art. 3611; Federal Law of July 24, 2009 N 213-FZ - Collection of Legislation of the Russian Federation, 2009, N 30, Art. 3739; Federal Law of November 27, 2010 N 306-FZ - Collection of Legislation of the Russian Federation, 2010, N 48, Art. 6247; Federal Law of November 24, 2014 N 366-FZ - Collection of Legislation of the Russian Federation, 2014, N 48, Art. 6647; Federal Law of November 29, 2014 N 382-FZ - Collection of Legislation of the Russian Federation, 2014, N 48, Art. 6663; Federal Law of March 30, 2016 N 72-FZ - Collection of Legislation of the Russian Federation, 2016, N 14, Art. 1902).

(The paragraph has lost force on the basis of Federal Law of July 24, 2009 N 213-FZ - Collection of Legislation of the Russian Federation, 2009, N 30, Art. 3739)

Other taxes, fees and insurance premiums are paid by individual entrepreneurs using a simplified taxation system in accordance with the legislation on taxes and fees (as amended by Federal Law of July 21, 2005 N 101-FZ - Collection of Legislation of the Russian Federation, 2005, N 30 , Article 3112; Federal Law of November 30, 2016 N 401-FZ - Collection of Legislation of the Russian Federation, 2016, N 49, Article 6844).

4. For organizations and individual entrepreneurs using the simplified taxation system, the current procedure for conducting cash transactions and the procedure for submitting statistical reporting are preserved.

5. Organizations and individual entrepreneurs applying the simplified taxation system are not exempt from fulfilling the duties of tax agents, as well as the duties of controlling persons of controlled foreign companies provided for by this Code (as amended by Federal Law No. 376-FZ of November 24, 2014 - Meeting Legislation of the Russian Federation, 2014, No. 48, Article 6657).

(Article 346-11 was introduced by Federal Law of July 24, 2002 N 104-FZ - Collection of Legislation of the Russian Federation, 2002, N 30, Art. 3021)

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Article 346-10. Tax return

Article 346-11. General provisions

Article 346-12. Taxpayers

Questions and answers on Article 346-11

#40438 04/22/2019 (17:03) 300 rubles paid.

Reduce tax on insurance premiums paid.

As an individual entrepreneur on the simplified tax system, income without employees, is it possible to reduce the tax on insurance premiums paid? As I understand it, it is necessary to pay quarterly advance payments, but what amount of payment should be unimportant or is there a minimum? I’ve been registered as an individual entrepreneur for a month and a half, but I’ve only just started earning a couple of thousand income. What amount do I need to pay for the quarter in order to be able to reduce the tax at the end of the year?

Author: Dmitry Replies: 7 Reply Read more

#28702 13.07.2018 (09:20)

The contract must include

Hello . I am an individual entrepreneur using the simplified tax system, I am entering into an agreement for the supply of goods, I need to write in the agreement; ... If VAT is not assessed, indicate the details of the document on the basis of which the Supplier is exempt from paying VAT, and links to articles of the Tax Code of the Russian Federation).... Tell me what should I write down?

Author: Vladimir Replies: 1 Reply Read more

Useful information and samples on Article 346-11

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21.05.2015

Appeal to the tax office

Group: Samples: Appeals in civil cases Author: Site Administrator

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VAT payment deadlines in 2022

When a seller issues a VAT invoice using the simplified tax system, he must pay tax to the budget. You must pay the tax in equal payments of ⅓ each month throughout the entire quarter following the reporting quarter. The dates for 2021 are as follows.

The tax return is submitted by the 25th day of the month following the end of the reporting quarter.

How to recover VAT on the simplified tax system

If you have issued a VAT invoice to your counterparty, you will not be able to deduct the tax. A similar situation has arisen with the import of goods and transactions with state property.

In Art. 172 of the Tax Code of the Russian Federation states that VAT deductions can only be received by VAT taxpayers, to whom simplifiers do not apply. It follows that they are not entitled to a deduction.

Simplified people can issue an invoice with VAT, but they cannot deduct the tax. Therefore, you will have to pay the tax in full to the budget.

Even if you work under the simplified tax system “Income minus expenses,” you still do not have the right to attribute tax to expenses. Simplified people generate invoices and pay VAT according to their own decision, therefore they are not exempt from tax (letter of the Ministry of Finance of the Russian Federation dated November 9, 2016 No. 03-11-11/65552).

Only a trustee can recover VAT. To do this, you need to keep separate records of transactions under the trust management agreement and other activities and receive an invoice from the supplier. If available, a deduction can be issued for the contribution paid.

In cases where a simplifier becomes a tax agent upon import, it is possible to include VAT in the cost of purchased goods, works or services (clause 2 of Article 170 of the Tax Code of the Russian Federation)

On what grounds can entities be exempt from paying VAT?

Each business entity, be it an organization or an individual entrepreneur, is required, in the course of its work, to charge VAT on the goods it produces and the services it provides (Article 143 of the Tax Code of the Russian Federation). But the provisions of Art. 145 of the Tax Code of the Russian Federation allows the possibility of exemption from VAT if the total amount of revenue is less than 2,000,000 rubles. minus indirect taxes for the past 3 months. This rule does not apply to those who pay tax when moving goods through the customs territory of the Russian Federation. Also, these provisions do not affect tax agents.

For more information on the right to exemption from VAT, see the material “Art. 145 Tax Code of the Russian Federation 2022: (questions and answers).”

If an economic entity decides to exercise the right to be exempt from VAT, it should notify the Federal Tax Service of its intention. Notification with supporting documents is provided both in person and by mail. At the same time, you should not wait for a response from the tax authorities, since when submitting documents, the taxpayer already declares his right to an exemption.

For more information on how to start working under the new conditions, read the material “How to start applying the VAT exemption.”

In some cases, VAT exemption is provided immediately after a change in the tax regime due to changed circumstances. Thus, officials approved the exemption for entrepreneurs who had previously worked using a patent. Read about this in the material “An individual entrepreneur who has lost his patent can immediately be exempt from VAT.”

Previously accepted for deduction in accordance with Art. 171 and 172 tax amounts must be restored and transferred to the budget before the VAT exemption begins. This must be done immediately before using the acquired right or in the same tax period if the VAT exemption occurred in the 2nd or 3rd month of the quarter.

Read more about the tax restoration procedure in the article “Starting from 2015, some Osvobozhdenie residents will be able to restore VAT a quarter later.”

In force majeure circumstances, when a taxpayer learns of the illegality of being on the simplified tax system, UTII or other preferential taxation system, he faces the risk of withholding the amount of VAT that could have been accrued for this period of time. However, you can try to avoid this circumstance. You can learn more about this from the material “Did the check confirm the illegality of the special regime? There is a chance to avoid paying VAT.”

The provision of intermediary services is recognized as an object of VAT taxation. But there are also exceptions in which intermediaries also have the right to take advantage of the VAT exemption. Cases in which such a right is allowed are listed in the material “Which intermediary services are not subject to VAT.”

Some transactions are exempt from VAT only if certain conditions are met. Thus, the sale of intellectual property products is not taxed only if there is a license agreement. The position of officials on this matter is reflected in the material “Is it possible not to pay VAT when transferring rights to use software without a license agreement?”

In which cases the transfer of rights to software is not subject to VAT, is also discussed in the materials:

• “The transfer of rights under a sublicense agreement is not subject to VAT”;
• “The acquisition of rights to software under a license agreement from a foreign company is not subject to VAT.”