VAT on food

VAT rate 10%

A rate of 10% may apply if each of the following two conditions is met.

Condition 1. The product must be included in a special list in accordance with paragraphs. 1 item 2 art. 164 Tax Code of the Russian Federation. This list includes basic foods necessary for a healthy diet, but does not include delicacies. For example, the list includes vegetables, milk and products made from it, meat and products from it, except for tenderloin, tongue, sausages, smoked meats and canned food.

The composition of the list changes frequently, inclusions and exclusions occur, and changes must be constantly monitored. For example, from October 2022 it included berries and fruits, including watermelons.

To apply a 10% rate, the product code must be present in any of the following lists:

All-Russian Product Classifier (OKPD2) for domestic goods, in accordance with Government Decree No. 908 dated December 31, 2004 “On approval of lists of codes for types of food products and goods for children subject to value added tax at a tax rate of 10 percent”;
Commodity nomenclature of foreign economic activity (TN FEA) - for imports, in accordance with letter of the Ministry of Finance of Russia dated July 4, 2012 No. 03-07-08/167.

If the product code is not in any of these lists, the seller has the right to apply only a tax rate of 20% when calculating VAT.

Condition 2. The taxpayer must himself confirm his right to a 10% rate. This requires any document certifying the compliance of the food product with technical regulations, according to the letter of the Federal Tax Service of the Russian Federation dated December 7, 2011 No. ED-3-3 / [email protected] and the resolution of the Federal Antimonopoly Service of the North-Western District dated February 1, 2012 No. A56-29589/2011) .

Such documents include:

certificate of conformity;
declaration of conformity.

Unfortunately, there is judicial practice not in favor of taxpayers who are trying to document the 10% VAT rate (Resolutions of the Federal Antimonopoly Service of the North-Western District dated 02.28.2014 No. A56-9963/2013, FAS Moscow District dated 03.13.2008 No. KA-A40/1415 -08).

In accordance with the order of the Federal Tax Service of Russia dated October 29, 2014 No. ММВ-7-3/ [email protected] , the tax base and tax calculated at the VAT rate of 10% are reflected in line 020 (columns 3 and 5) of the VAT return.

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The reduced rate is necessary to ensure financially free access to goods that are socially significant. In the case of children's supplies, this rule is aimed at creating more favorable purchasing conditions for parents and special child care institutions.

In what other cases is VAT 10 percent?

There is an additional product group that is subject to a reduced tax rate. In particular, it includes medical goods and supplies, consumables, furniture and other medical products for use in specialized medical institutions or for treatment at home.

This rule also applies to printed products. Periodicals, books, magazines, etc. Exceptions include books, magazines, and newspapers containing information of an advertising or erotic nature.

A ten percent tax applies to domestic air transportation services. When providing medical and a number of other paid services of high social significance. A complete list of products and services can be clarified by contacting the Federal Tax Service office or on their website in electronic format.

Confirmation of eligibility for a 10% rate

In order to obtain the right to work at a minimum percentage of added value, you will need to provide the Federal Tax Service with appropriate documentation confirming the company’s activities in the chosen field and containing information about the services provided or product groups sold. To do this, it is necessary to clarify the classification codes from the unified register of economic activities corresponding to the products sold by the company.

Next, these codes are entered into documents submitted to the tax office; if they fall under the rule of the minimum level of taxation, the manufacturer or seller receives the appropriate permission and further calculations are made with a 10% VAT charge. If the documents are provided after sales, then the calculation will be made based on the maximum amount of accruals - 20%, since there is no possibility of checking the sold batch of products. Be careful when preparing documents; it is advisable to double-check the data and entered codes.

Reporting must be submitted strictly before starting commercial activities. This will avoid significant unexpected expenses. We recommend contacting the Federal Tax Service department for additional advice from relevant specialists.

VAT rate 0%

Zero VAT rate according to clause 1. Art. 164 of the Tax Code of the Russian Federation applies to the sale of food products outside the Russian Federation. The taxpayer must independently justify the application of this rate and, within 180 days from the date of customs clearance, provide the following documents:

copies of customs declarations or their registers, including electronic ones, in accordance with paragraph 15 of Art. 165 Tax Code of the Russian Federation, clause 10 art. 1 of the Law of December 29, 2014 No. 452-FZ “On amendments to Art. 165 Tax Code of the Russian Federation";
copies of shipping/transport documents or their registers, including electronic ones;
copies of agreements with counterparties.

When applying a zero rate, the taxpayer fills out section 4 of the VAT return. If he was unable to collect the above package of documents on time, he is only entitled to apply a VAT tax rate of 20% or (if the relevant conditions described above are met) - 10%. In such cases, section 6 is filled out in the VAT return.

Transition from UTII to OSNO

For persons who have switched from UTII to OSNO, a deduction of input VAT if goods, work, services, property rights were acquired during the period of application of UTII or imported into the territory of the Russian Federation, but were not actually used before the transition to OSNO.

OSNO is still a complex and tax-expensive system. For small businesses, it is most likely more profitable to be simplified. We have prepared two useful materials - a digest on how to deal with payments and obligations during the transition period, as well as a checklist for changing UTII to simplified tax system.

Exemption from calculation and payment of VAT on food products

Companies and individual entrepreneurs are exempt from VAT in any of two cases:

In accordance with paragraph 5. paragraph 2. Art. 149 of the Tax Code of the Russian Federation - if they produced or sold products in the canteens of educational or medical institutions. And yet, then the taxpayer is also obliged to independently justify the exemption from the calculation and payment of VAT. To do this, in accordance with the letter of the Ministry of Finance of the Russian Federation dated December 3, 2014 No. 03-07-15/61906, he must provide licenses for the provision of medical or educational services.
If the taxpayer is in a special regime and is exempt from working with VAT. In accordance with paragraph 2 of Art. 346.11 of the Tax Code of the Russian Federation, a taxpayer using the simplified tax system is exempt from paying VAT in all cases, except for the following: products are imported into the territory of the Russian Federation or such taxpayer is a tax agent. Individual entrepreneurs on a patent are also exempt from paying VAT, unless they conduct activities that are not covered by the PSN, do not import products into the territory of the Russian Federation and do not carry out transactions taxed under Art. 174.1 Tax Code of the Russian Federation.

The cost of food products exempt from VAT is reflected under code 1010232 in section 7 of the VAT tax return.

Keep VAT records in the Kontur.Accounting web service: there is a built-in system for checking VAT calculations. The service will tell you which documents need to be added and which transactions to check in order to reduce the amount of VAT and avoid fines. In Accounting - simple accounting, payroll, reporting, integration with banks and cash desks. The first two weeks are free for all newbies.

Benefit for IT companies

The VAT benefit provided for in paragraphs will be applied in a new way. 26 clause 2 art. 149 of the Tax Code of the Russian Federation. Starting from the new year, transactions for the sale of exclusive rights to computer programs and databases included in the unified register, as well as the transfer of rights to use these programs and databases, will not be taxed.

The exemption does not apply to the transfer of rights to use computer programs and databases if these rights consist of obtaining the ability to:

distribute or access advertising on the Internet;
post offers on the Internet for the purchase or sale of goods, works, services and property rights;
search for information about potential buyers and sellers or enter into transactions.

That is, now it will not matter under what contract the computer programs were purchased: licensed or not. This means that the purchase of computer programs from foreign organizations will always be subject to VAT .

Because the benefits raised a lot of questions among industry representatives, and the Federal Tax Service had to issue official clarifications.

Read explanations of IT benefits from January 1, 2022

Only developers whose revenue from software production is more than 90% can take advantage of the benefits. Do not forget that the company must also be included in the register of domestic software.

Refund of customs VAT when exporting goods

Participants in foreign trade activities have the right to deduct VAT paid by them when importing goods into the Russian Federation only if the exporter is a VAT payer. If the goods are intended for transactions that are subject to VAT, and they are accepted for accounting. A deduction can be made if the goods are intended for operations that are subject to VAT. To confirm your right to a tax deduction, the following documents may be required:

foreign trade contract with a foreign supplier;
invoice for payment from the supplier (invoice) invoice;
customs declaration (copy);
payment order, bank statements, certified duplicates of payment orders.

The listed documents must be stored for four years.

If an organization is not a VAT payer, then, according to the law, it will not be able to receive a deduction. These are organizations that have chosen tax regimes: simplified taxation system (USNO), unified tax on imputed income (UTI), unified agricultural tax (UST).

Customs VAT rates

Customs duty and VAT rates differ. Customs VAT rates apply to broader product categories and are regulated by the tax legislation of the Russian Federation (Article 164 of the Tax Code of the Russian Federation). Customs VAT rates for the year can take three values: 0%

— tax exemption,
10%
— preferential taxation,
20%
— full taxation.

VAT rate	Application
There are goods the import of which into Russia is exempt from tax, for which VAT will be 0 percent. Before calculating VAT, you need to find out whether this product is eligible for tax exemption and clarify under which customs procedure the product is placed (Article 150, 164 of the Tax Code of the Russian Federation, Government Decree No. 1042 (as amended on March 20, 2018) On approval of the list of medical goods )). To be exempt from this tax, you must provide documents confirming the intended purpose.
0%	consumables used for scientific research not produced in the Russian Federation; technological equipment not produced in the Russian Federation; materials that are used by domestic enterprises for the production of immunobiological medicines; medicines that are not produced in Russia; medical goods that are vital: prosthetic and orthopedic products, raw materials and materials for their production and semi-finished products for them; technical means, including motor vehicles; materials that can be used exclusively for the prevention of disability or rehabilitation of disabled people; corrective glasses (for vision correction), lenses for vision correction, frames for corrective glasses (for vision correction); food products produced by catering organizations and intended for sale to specific canteens and organizations; goods supplied free of charge as assistance, except for excise goods (a certificate from a special commission is required); cultural property acquired for museums and other government institutions; books and magazines for museums and libraries received as part of the international exchange of printed products; goods intended for space exploration; for official use by diplomatic missions; supplies exported from the territory of the Russian Federation; built ships subject to registration in the Russian International Register of Ships; goods for official use by international organizations and their representative offices operating on the territory of the Russian Federation; goods intended for FIFA and its subsidiaries, national football associations, etc.; When placing goods under customs procedures (Article 151 of the Tax Code of the Russian Federation): export; free customs zone; free warehouse; transit; customs warehouse; duty free trade; destruction; refusal in favor of the state; re-export; exported under the customs procedure of re-export, previously placed under the customs procedure of processing on the customs territory, and (or) goods (processed products, waste and (or) residues) received (formed) as a result of processing of goods placed under the customs procedure of processing on the customs territory ; exported under the customs procedure of re-export, previously placed under the customs procedures of: a free customs zone, a free warehouse, and (or) goods manufactured (received) from goods placed under the customs procedures of a free customs zone, a free warehouse; processing of goods in the customs territory, if the import was carried out within specific deadlines; import of processed goods that were placed under the customs procedure of processing outside the customs territory; a special customs procedure, which is applied in special cases, for example, in relation to goods intended for diplomatic missions (Chapter 36 of the EAEU Labor Code);
In some cases, according to Article 164 of the Tax Code of the Russian Federation, the VAT rate will be 10%
10%	1) Food products: livestock and poultry in live weight; meat and meat products (with the exception of delicacies: tenderloins, veal, tongues, sausages - raw smoked premium, raw smoked semi-dry premium, dry-cured, stuffed premium; smoked pork, lamb, beef, veal, poultry - balyk, carbonate, necks, hams, pastrami, sirloin; baked pork and beef; canned food - ham, bacon, carbonade and jellied tongue); milk and dairy products (including ice cream produced on their basis, with the exception of ice cream produced on a fruit and berry basis, fruit and edible ice); eggs and egg products; vegetable oil; margarine; sugar, including raw sugar; salt; grain, mixed feed, feed mixtures, grain waste; oilseeds and products of their processing (meal(s), cakes); bread and bakery products (including butter, crackers and bagel products); cereals; flour; pasta; live fish (with the exception of valuable species: white fish, Baltic and Far Eastern salmon, sturgeon (beluga, bester, sturgeon, stellate sturgeon, sterlet), salmon, trout (except sea trout), nelma, chum salmon, chinook salmon, coho salmon, muksun, omul, whitefish Siberian and Amur, chir); seafood and fish products, including chilled, frozen and other types of processed fish, herring, canned food and preserves (with the exception of delicacies: sturgeon and salmon caviar; white fish, Baltic salmon, sturgeon fish - beluga, bester, sturgeon, stellate sturgeon, sterlet ; salmon; backs and sides of cold-salted nelma; chum salmon and chinook lightly salted, medium-salted and salted salmon; backs of chum salmon, chinook salmon and cold-salted coho salmon, sides of chum salmon and cold-salted chinook salmon; backs of muksun, omul, Siberian and Amur whitefish, cold-smoked chira; preserved fillets - slices of Baltic salmon and Far Eastern salmon; crab meat and sets of individual boiled-frozen crab limbs; lobsters); baby and diabetic food products; vegetables (including potatoes); 2) Products for children: knitwear for newborns and children of nursery, preschool, junior and senior school age groups: outer knitwear, underwear knitwear, hosiery, other knitwear: gloves, mittens, hats; sewing products, including products made from natural sheepskin and rabbit (including products made from natural sheepskin and rabbit with leather inserts) for newborns and children of nursery, preschool, junior and senior school age groups, outerwear (including dress and costume groups) , underwear, hats, clothing and products for newborns and nursery children. The provisions of this paragraph do not apply to garments made of genuine leather and natural fur, with the exception of natural sheepskin and rabbit; shoes (except for sports): booties, husarikov, preschool, school; felted; rubber: small children, children's, school; children's beds; children's mattresses; strollers; school notebooks; toys; plasticine; pencil cases; counting sticks; school account; school diaries; notebooks for drawing; sketchbooks; albums for drawing; folders for notebooks; covers for textbooks, diaries, notebooks; cash register of numbers and letters; diapers; 3) Periodicals, with the exception of periodicals of an advertising or erotic nature. book products related to education, science and culture, with the exception of book products of an advertising and erotic nature; art albums, albums, atlases (except geographical), music publications, tear-off calendars, publications for the blind. 4) medicines, medical supplies and medical equipment, raw materials and components for their production, if there is a registration certificate from the Ministry of Health; in the absence of a certificate, VAT will be 20%.
20%	In all other cases (clause 3 of article 164 of the Tax Code of the Russian Federation).

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