How to reflect R&D expenses in tax accounting

Accounting for other expenses

An organization has the right to take into account expenses not directly mentioned in paragraph 2 of Article 262 of the Tax Code of the Russian Federation as other R&D expenses. There is one condition: the costs must be directly related to the implementation of research or development. For example, these could be:

consulting fees;
products of own production, used as components and semi-finished products when performing R&D;
works and services of a production nature performed on a self-employed basis;
accrued depreciation on fixed assets partially used for R&D.

Such clarifications follow from the letter of the Federal Tax Service of Russia dated May 31, 2013 No. ED-4-3/9941.

The amount of other expenses not exceeding 75 percent of the organization’s expenses for remuneration of employees involved in R&D, the organization performing R&D according to the list approved by Decree of the Government of the Russian Federation of December 24, 2008 No. 988, has the right to take into account in the amount of actual costs increased by an increasing factor 1.5 (clause 7 of article 262 of the Tax Code of the Russian Federation). The amount of other expenses exceeding the limit (including accrued depreciation, labor and material expenses) can be written off only in the amount of actual expenses (without taking into account the increasing factor).

This procedure is established by subparagraph 4 of paragraph 2 and paragraph 5 of Article 262 of the Tax Code of the Russian Federation.

Financing of R&D funds

R&D can be financed by:

Russia;
subjects of Russia;
municipalities;
organizations;
individual.

This follows from the provisions of paragraph 1 of Article 15 of the Law of August 23, 1996 No. 127-FZ.

Government funding is provided by:

scientific organizations;
educational organizations of higher education;
funds for supporting scientific, scientific, technical, and innovative activities;
other organizations that carry out R&D.

This follows from the provisions of paragraph 2 of Article 15 of the Law of August 23, 1996 No. 127-FZ.

An organization can make voluntary contributions for the formation of funds. Moreover, an organization can independently create a fund for financing R&D and contribute funds to it to finance scientific work. This is stated in Article 15.1 of the Law of August 23, 1996 No. 127-FZ.

The amount and timing of the transfer of funds to finance R&D are established by an agreement between the organization and the fund.

The costs of financing the funds are standardized. When calculating income tax, they can be recognized in an amount not exceeding 1.5 percent of income from sales (subclause 6, clause 2, article 262 of the Tax Code of the Russian Federation). For more details, see What income from sales is taken into account when calculating income tax.

Deductions in excess of the norms are not included in expenses when calculating income tax (Clause 45, Article 270 of the Tax Code of the Russian Federation).

An organization's expenses for contributions to funds (unlike other R&D expenses) are recognized for tax purposes in a special manner - in the reporting (tax) period in which they were incurred (clause 6 of Article 262 of the Tax Code of the Russian Federation).

Documents confirming the organization's expenses for the formation of R&D financing funds will be payment orders with bank marks and bank statements. Accordingly, the tax base for income tax should be reduced at the time of transfer of funds for the formation of the fund (clause 1 of Article 252 of the Tax Code of the Russian Federation).

An example of how expenses for the formation of R&D financing funds are reflected in accounting and taxation. The organization applies a general taxation system

Alpha LLC, in accordance with the agreement, contributes funds to an off-budget R&D financing fund registered with the Russian Ministry of Education and Science. The organization pays income tax quarterly. When calculating income and expenses, it uses the accrual method.

According to the agreement, the deadline for transferring contributions to the formation of the R&D fund is no later than the last day of the current quarter. The amount of quarterly deductions is 25,000 rubles.

In the first quarter, income from the sale of Alpha amounted to RUB 1,800,000. (excluding VAT), and the amount of contributions to the fund is 25,000 rubles. This amount was transferred on March 29.

In the first half of the year, income from the sale of Alpha cumulatively amounted to RUB 2,800,000. (without VAT). The cumulative total of contributions to the R&D financing fund amounted to 50,000 rubles. The amount of contributions for the second quarter (RUB 25,000) was transferred on June 28.

The following entries were made in Alpha's accounting records.

March 29:

Debit 91-2 Credit 76 – 25,000 rub. – the organization’s debt for contributions to the off-budget R&D financing fund is reflected (based on an agreement concluded between the organization and the R&D fund);

Debit 76 Credit 51 – 25,000 rub. – funds were transferred for the formation of a fund for financing R&D (based on a bank statement).

The amount of the contribution to the formation of the R&D financing fund for the first quarter does not exceed 1.5 percent of the organization’s sales income (1,800,000 rubles × 1.5% = 27,000 rubles). Therefore, the accountant took into account the entire amount of contributions (25,000 rubles) as part of other expenses when calculating income tax for the first quarter.

June 28:

Debit 76 Credit 51 – 25,000 rub. – funds were transferred for the formation of a fund for financing R&D (based on a bank statement).

The amount of contributions for the first half of the year, calculated on an accrual basis, exceeds the established standard of 1.5 percent of sales income, calculated on an accrual basis (RUB 2,800,000 × 1.5% = RUB 42,000 < RUB 50,000), by 8,000 rub. (50,000 rub. – 42,000 rub.).

Therefore, when calculating income tax for the first half of the year, the accountant included contributions in the amount of 42,000 rubles as other expenses when calculating income tax.

Due to the fact that in accounting the expenses for the formation of the R&D fund are recognized in full, and in tax accounting - within the limits of the standards, in the second quarter the accountant reflected a deferred tax asset:

Debit 09 Credit 68 subaccount “Calculations for income tax” – 1600 rubles. ((25,000 rubles – 17,000 rubles) × 20%) – reflects the deductible temporary difference due to the non-recognition of part of the costs of forming the fund in tax accounting.

R&D: what should be in the contract and how to record the results

Handbook for accountants.

The results of intellectual activity in accounting are qualified as the results of research, development and technological work.

The accounting procedure for R&D expenses is regulated by PBU 17/02 “Accounting for expenses for research, development and technological work.”

During the period of R&D, all actual expenses associated with their implementation are accumulated in account 08 “Investments in non-current assets” (in a separate sub-account).

After completion of the work, expenses incurred are subject to debiting from account 08.

In this case, the order of write-off depends on the result obtained.

When performing R&D, the following results can be obtained:
negative results;
positive and at the same time patentable results;
positive results applicable in production, but not subject to legal protection.

If a negative result is obtained during R&D, then the expenses incurred are recognized as other expenses of the reporting period (written off from account 08 to the debit of account 91).
Reflected in the Financial Results Report as part of “other expenses”. If, as a result of R&D, a result is obtained that is subject to legal protection, then the contract must reflect which party will register the rights to these results in the prescribed manner.

If a decision is made to register the relevant rights (for example, an organization applies for a patent), then R&D expenses will be recorded on account 08 until the receipt of documents confirming that the organization has exclusive rights to the intellectual property.

After receiving such documents, the accumulated expenses will form the initial cost of the intangible asset and will be written off from the credit of account 08 to the debit of account 04. Subsequently, accounting for this asset on account 04 is carried out according to the rules established by PBU 14/2007 “Accounting for intangible assets”.

If organizations decide not to register rights to the results obtained, then records should be kept in the manner prescribed for the case of obtaining a positive result that is not subject to legal protection.

If, when performing R&D, a positive result is obtained that is not subject to legal protection, which is planned to be used in production or management, then R&D expenses are written off from account 08 to the debit of account 04 “Intangible assets”.

The results of R&D are reflected separately in account 04. For these purposes, it is advisable to open a separate sub-account for account 04, for example sub-account 4 “Positive R&D results”.

R&D expenses accounted for in account 04 are written off as expenses for ordinary activities from the 1st day of the month following the month in which the actual application of the results obtained in the production of products (performance of work, provision of services) or for the management needs of the organization began ( clause 10 of PBU 17/02).

Clause 11 of PBU 17/02 provides two ways to write off R&D expenses recorded on account 04:

linear;
proportional to the volume of production.

Note that when choosing a linear method of organization, it is also necessary to select the period for writing off costs.
It can be anything within 5 years. In tax accounting (income tax), positive results of R&D are recognized as part of other expenses associated with production and sales, at a time at the time of completion of work (individual stages of work) (Article 262 of the Tax Code of the Russian Federation). In accounting, the possibility of one-time recognition of such expenses is generally not provided. Therefore, accounting data in any case (regardless of the chosen method of writing off R&D expenses) will diverge from tax accounting data.

Below we consider the situation when Company A (customer) entered into an agreement with Company B (contractor) to perform R&D. The agreement provides for joint financing and sharing of R&D results.

Under the terms of the agreement for the performance of research, development and technological work on the terms of targeted financing (hereinafter referred to as the Agreement), the parties jointly finance the implementation of the work, and also jointly, but at their own discretion, use the result of the work in the ways specified in the Agreement.

In order to correctly qualify the Agreement, we consider it necessary to first pay attention to the main qualifying features of the R&D agreement.

Chapter 38 of the Civil Code of the Russian Federation is devoted to the relations of the parties under an agreement for the performance of research, development and technological work.

Under a contract for the performance of scientific research work, the contractor undertakes to carry out scientific research stipulated by the technical specifications of the customer, and under a contract for the performance of development and technological work - to develop a sample of a new product, design documentation for it or a new technology, and the customer undertakes to accept the work and pay her (clause 1 of article 769 of the Civil Code of the Russian Federation).

The R&D contract should clearly show what work the contractor is performing and what requirements the customer places on it. The terms of reference allow you to determine the subject of the contract, establishing technical, economic, ergonomic and other parameters and standards in accordance with which contract work is carried out and the results obtained are evaluated.

Judicial practice classifies technical specifications as essential terms of the contract for R&D (Determination of the Supreme Arbitration Court of the Russian Federation dated 02/09/2009 N 472/09, Resolution of the Fifteenth Arbitration Court dated 05/02/2012 N 15AP-3736/12, Resolution of the Ninth Arbitration Court dated 03/30/2011 N 09AP-4644 /eleven).

Since the contract for R&D is close in its legal nature to a contract, then by virtue of paragraph. 1 tbsp. 778 of the Civil Code of the Russian Federation, the rules of Articles 708, 709 and 738 of the Civil Code of the Russian Federation apply to the deadlines for completion and the price of work, as well as to the consequences of the customer’s failure to appear to receive the results of the work.

Based on the provisions of Art. 708 of the Civil Code of the Russian Federation on the timing of work under construction contracts, the contractor is responsible for violation of both the initial and final, as well as intermediate deadlines for the completion of work. If the deadline for completing the work, as well as other deadlines established by the contract, is violated, the consequences specified in clause 2 of Art. 405 of the Civil Code of the Russian Federation, according to which the customer may refuse to accept performance and demand compensation for losses if, due to the debtor’s delay, the performance has lost interest for him.

That is, the essential terms of the R&D agreement are:

condition on the subject of the agreement (clause 1 of Article 432 of the Civil Code of the Russian Federation);
condition on the deadline for completing the work (Article 778, paragraph 1 of Article 708 of the Civil Code of the Russian Federation).

The parties agreed on the conditions for the use of R&D results, according to which each party has the right to use the R&D results at its own discretion, and the income from such use remains the property of the specified party.

Thus, within the framework of the Agreement, the contractor, within the period specified by the agreement, carries out research, development and technological work provided for by the customer’s assignment, and the customer is obliged to pay for the execution of these works.

To do this, the customer allocates funds to the contractor, which must be spent by the contractor on performing work under the Contract.
At the same time, to perform the work, the contractor attracts (has the right to attract) his own funds. Upon completion of the work, the contractor provides the R&D result to the customer along with a report on the intended use of funds.

At the same time, the right to use the R&D result remains not only with the customer, but also with the contractor. However, each party uses the result of R&D at its own discretion, and not to achieve any common goal or to obtain a common profit.

The contract must provide both conditions on the responsibility of the customer and the contractor, and conditions characteristic of R&D on the consequences of the impossibility of performing the work.

Your question does not indicate which party to the contract your organization will be. The developer is the customer, and your organization only provides financing? To consult on this issue, it is necessary to clarify the specifics of the contract, the rights and obligations of the parties.

A distinctive feature of an R&D agreement is the imposition on the customer of the risk of accidental impossibility of their execution (clause 3 of Article 769 of the Civil Code of the Russian Federation), since it may turn out that the agreed result cannot be created. If during the work it is discovered that it is impossible to achieve results due to circumstances beyond the control of the contractor, the customer is obliged to pay the cost of previously performed work within the corresponding part of their contract price (Article 775 of the Civil Code of the Russian Federation).

For the same reason, paragraph 1 of Art. 777 of the Civil Code of the Russian Federation establishes the responsibility of the performer only for guilt. As a general rule, the contractor compensates for losses caused to the customer only within the limits of the cost of the work in which deficiencies are identified (if the contract provides for their compensation within the limits of the total cost of the work under the contract). However, lost profits can only be compensated if this is provided for in the contract.

Article 772 of the Civil Code of the Russian Federation establishes the right of both parties to use the results of work, but within the limits and on the conditions stipulated by the contract. Otherwise, the customer has the right to use the results of work transferred to him by the contractor, and the contractor has the right to use the results of work received by him only for his own needs.

Thus, under an R&D contract, the contractor must, in accordance with the customer’s instructions and within the agreed period of time, conduct scientific research and develop a sample of a new product, design documentation for it or new technology, and the customer must accept the result of the work and pay for it, taking upon himself risk of impossibility of performing work.

Based on the above, the main risk - the risk of impossibility of performing the work - is borne by the customer.

Clause 1 of Art. 772 of the Civil Code of the Russian Federation provides that the parties to agreements on the performance of research, development and technological work have the right to use the results of the work within the limits and on the conditions stipulated by the agreement.

That is, in paragraph 1 of Art. 772 of the Civil Code of the Russian Federation contains a rule that gives the parties to the contract the right to determine in the contract itself who will have the right to use the results of work obtained under the contract. This rule does not determine the owner of this right of use: it could be, for example, the customer, the customer and the performer jointly, or some third party.

Thus, the rights to the results of R&D will belong to the Organization depending on the terms of the Agreement, in accordance with which risks are considered.

The results of R&D are reflected in the financial statements as follows.
Line 1110 “Intangible assets” of the balance sheet reflects information about intangible assets (hereinafter referred to as intangible assets), indicating the residual value of these objects, which is defined as the difference between the actual (initial) cost of intangible assets and depreciation charges (taking into account revaluation and impairment). This is indicated by the provisions of paragraph 35 of the Accounting Regulations “Accounting Reports of an Organization” (PBU 4/99), approved by Order of the Ministry of Finance of Russia dated July 6, 1999 N 43n (hereinafter referred to as PBU 4/99), paragraphs 6, 16, 23 of the Accounting Regulations accounting “Accounting for intangible assets” (PBU 14/2007), approved by Order of the Ministry of Finance of Russia dated December 27, 2007 N 153n (hereinafter referred to as PBU 14/2007).

As part of intangible assets in accordance with paragraph 4 of PBU 14/2007, subject to the conditions established by paragraph 3 of PBU 14/2007, in particular, the following may be taken into account:

works of science, literature and art;
programs for electronic computers;
inventions;
utility models;
breeding achievements;
production secrets (know-how);
trademarks and service marks.

Also, business reputation arising in connection with the acquisition of an enterprise as a property complex (in whole or part thereof) may be taken into account as part of intangible assets.
Expenses associated with the formation of a legal entity (organizational expenses) are not intangible assets; intellectual and business qualities of the organization’s personnel, their qualifications and ability to work.

Line 1120 “Results of research and development” of the balance sheet reflects information on expenses for completed research, development and technological work (hereinafter R&D), accounted for in account 04 “Intangible assets” separately, and the amount of expenses reflected in the account is indicated 04 and not written off as of the reporting date as expenses for ordinary activities and (or) other expenses.

This provision follows from paragraph 16 of the Accounting Regulations “Accounting for expenses for research, development and technological work” PBU 17/02, approved by Order of the Ministry of Finance of Russia dated November 19, 2002 N 115n (hereinafter referred to as PBU 17/02), Instructions on the application of the Chart of Accounts for accounting financial and economic activities of organizations, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 N 94n (hereinafter referred to as the Instructions for the Application of the Chart of Accounts).

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Accounting for R&D expenses of contractors

If an organization is a performer of R&D on orders from other organizations, take into account the costs of this contract in the same way as for the usual performance of work or provision of services (clause 10 of Article 262 of the Tax Code of the Russian Federation).

Situation: how can a contractor reflect in accounting and tax accounting the performance of R&D for a customer with the involvement of subcontractors? The results of the work were fully transferred to the customer.

Record R&D for the customer in accounting as normal performance of work or provision of services.

In principle, neither in the accounting nor in the tax accounting of the contractor does such an object as “R&D expenses” arise. After all, the organization carries out R&D on behalf of another enterprise. And the results of the work will be fully transferred to the customer. She herself bears the usual expenses of her business. Therefore, such expenses in accounting are classified as expenses for ordinary activities (clause 5 of PBU 10/99). And in tax - to expenses associated with production and sales (Article 253, paragraph 10 of Article 262 of the Tax Code of the Russian Federation). That is, in the generally established manner, as in the normal performance of work or provision of services for the customer.

An example of reflecting in accounting and taxation the performance of R&D for a customer with the involvement of subcontractors. The contractor applies the general taxation system

Alpha LLC (contractor), on the basis of a government contract, performs R&D on behalf of the customer. The cost of work under the contract is 50,000,000 rubles. (VAT is not assessed on the basis of subclauses 16 and 16.1 of clause 3 of Article 149 of the Tax Code of the Russian Federation). Under the terms of the government contract, the contractor is obliged to perform part of the work with the involvement of a subcontractor. The cost of such work is 23,600,000 rubles. (including VAT – RUB 3,600,000). The cost of work performed on our own is 10,000,000 rubles.

Alpha's accountant made the following entries in accounting:

Debit 51 Credit 62 – 25,000,000 rub. – an advance was received from the customer;

Debit 20 Credit 02 (10, 70, 69, ... ) – 10,000,000 rub. – expenses under the government contract for work performed in-house are reflected;

Debit 20 Credit 60 – 20,000,000 rub. – costs are reflected under the government contract for work performed by the subcontractor;

Debit 19 Credit 60 – 3,600,000 rub. – input VAT on the cost of the subcontractor’s work is taken into account;

Debit 20 subaccount “Calculations for VAT” Credit 19 – RUB 3,600,000. – input VAT is included in the cost of the subcontractor’s work;

Debit 60 Credit 51 – 23,600,000 rub. – money is transferred to the subcontractor;

Debit 62 Credit 90-1 – 50,000,000 rub. – revenue from government contracts is taken into account;

Debit 51 Credit 62 – 25,000,000 rub. – the customer has made final payments under the contract.

Thus, the accountant included in the accounting expenses for ordinary activities: - 10,000,000 rubles. – the cost of work performed in-house; – 23,600,000 rub. – cost of work performed by the subcontractor (including input VAT).

The accountant reflected the revenue in the amount of 50,000,000 rubles. (cost according to government contract).

When calculating income tax in expenses associated with production and sales, the Alpha accountant took into account: - 10,000,000 rubles. – the cost of work performed in-house; – 23,600,000 rub. – cost of work performed by the subcontractor (including input VAT).

Income from work performed for tax accounting purposes amounted to RUB 50,000,000.

The results of the work were transferred to the customer in full on the basis of the acceptance certificate. According to the terms of the government contract, the contractor attached to this act a report on the work performed by the subcontractor with copies of primary documents attached.

If the contractor performs certain works free of charge for the customer, then reflect the gratuitous transfer of the results of such work in accounting and tax accounting in accordance with the generally established procedure.

An example of how R&D work for a customer is reflected in accounting and taxation. Some work is performed for the customer free of charge with the involvement of subcontractors. The contractor applies the general taxation system

Alpha LLC (contractor), on the basis of a government contract, performs R&D on behalf of the customer. The cost of work under the contract is 50,000,000 rubles. (VAT is not assessed on the basis of subclauses 16 and 16.1 of clause 3 of Article 149 of the Tax Code of the Russian Federation). Under the terms of the government contract, the contractor is obliged to perform certain types of work with the involvement of a subcontractor at the expense of extra-budgetary funds (own) in the amount of 23,600,000 rubles. (including VAT – RUB 3,600,000). The results of this work were transferred to the customer free of charge. The cost of work performed on our own is 10,000,000 rubles.

Alpha's accountant made the following entries in accounting:

Debit 51 Credit 62 – 25,000,000 rub. – an advance was received from the customer;

Debit 20 Credit 02 (10, 70, 69...) – 10,000,000 rub. – expenses under the government contract for work performed in-house are reflected;

Debit 91-2 Credit 60 – 20,000,000 rub. – costs are reflected under the government contract for work performed by the subcontractor;

Debit 19 Credit 60 – 3,600,000 rub. – input VAT on the cost of the subcontractor’s work is taken into account;

Debit 91-2 subaccount “Calculations for VAT” Credit 19 – RUB 3,600,000. – input VAT is included in the cost of the subcontractor’s work;

Debit 91-2 Credit 68 subaccount “Calculations for VAT” – 4,248,000 rubles. (RUB 23,600,000 × 18%) – VAT is charged for the gratuitous transfer of work results;

Debit 60 Credit 51 – 23,600,000 rub. – money is transferred to the subcontractor;

Debit 62 Credit 90-1 – 50,000,000 rub. – revenue from government contracts is taken into account;

Debit 51 Credit 62 – 25,000,000 rub. – the customer has made final payments under the contract.

Thus, in accounting, the accountant included as expenses:

– for ordinary activities – 10,000,000 rubles. – the cost of work performed in-house; – other expenses – RUB 27,848,000. (RUB 23,600,000 + RUB 4,248,000) – the cost of work performed by the subcontractor (including input VAT) and the amount of accrued VAT upon transfer of work results free of charge.

The accountant reflected the revenue in the amount of 50,000,000 rubles. (cost according to government contract).

When calculating income tax in expenses associated with production and sales, the Alpha accountant took into account only the cost of work performed on its own - 10,000,000 rubles.

The cost of work performed by the subcontractor is RUB 23,600,000. (including input VAT) the accountant did not take into account when calculating income tax.

Income from work performed for tax accounting purposes amounted to RUB 50,000,000.

The results of the work (including those performed free of charge) were transferred to the customer in full on the basis of the acceptance certificate. According to the terms of the government contract, the contractor attached to this act a report on the work performed by the subcontractor with copies of primary documents.

If the executing organization simultaneously co-finances the work (and receives non-exclusive rights to its results), then it can take such costs into account as part of R&D in proportion to its share in the financing (letter of the Ministry of Finance of Russia dated August 14, 2012 No. 03-07-11/294) .

If an organization carries out several R&D projects, some of which are carried out for its own needs, and some of them as a performer, then it can take into account the work performed for itself as part of R&D, including using an increasing factor of 1.5 (p 1, subparagraphs 1–5, paragraph 2, paragraph 7 of Article 262 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated March 12, 2013 No. 03-03-06/7287).

The state customer can transfer free of charge to the contractor the exclusive right to R&D results that he created under a government contract (clauses 3 and 7 of the Rules approved by Decree of the Government of the Russian Federation of March 22, 2012 No. 233). In this case, when calculating income tax from January 1, 2015, the contractor should not include the cost of the acquired exclusive right in income and expenses. This procedure is established by subparagraph 51 of paragraph 1 of Article 251, paragraph 48.19 of Article 270 of the Tax Code of the Russian Federation and Article 2 of Law No. 463-FZ of December 29, 2014.

Taxation when performing R&D

A scientific budget organization conducts business activities in the form of R&D on the basis of business agreements (including with foreign customers), which are exempt from VAT in accordance with paragraphs. 16 clause 3 art. 149 of the Tax Code of the Russian Federation.

1. Should we register in the sales book invoices issued for these transactions, including for advances received, if there is no obligation to calculate VAT?

2. On what date should exchange rate differences on revenue from foreign customers be calculated in order to determine the tax base for calculating income tax? Has anything changed in the regulations on these issues?

.
In accordance with paragraphs
16 clause 3 art. 149 of the Tax Code of the Russian Federation, the implementation of research and development work by educational institutions and scientific organizations on the basis of business contracts is an operation not subject to taxation on the territory of the Russian Federation.

According to paragraph 1 of Art.
148 of the Tax Code of the Russian Federation, the place of implementation of work
during research and development work is the territory of the Russian Federation, if
the buyer of the work carries out activities on the territory of the Russian Federation
.

The buyer's place of business is considered to be

territory of the Russian Federation in the case of the actual presence of the buyer of works on the territory of the Russian Federation on the basis of state registration of the organization, and in its absence - on the basis of the place specified in the constituent documents of the organization, the place of management of the organization, the location of its permanent executive body, the location of the permanent representative office (if works (services) are provided through this permanent establishment).

According to paragraph 1 of Art. 146

The following transactions are recognized as subject to VAT taxation:

1) sale of goods ( works

, services)
on the territory of the Russian Federation
.

2) transfer of goods on the territory of the Russian Federation (performance of work, provision of services) for one’s own needs

, expenses for which are not deductible when calculating corporate income tax;

3) execution of construction and installation works

for own consumption;

4) import

goods into the customs territory of the Russian Federation
.
That is, the implementation of work

is recognized as an object of VAT taxation only if
the place of implementation of work is the Russian Federation
.

Therefore, performing R&D for foreign companies in your situation is not subject to VAT, not due to the exemption on the basis of clauses 16 clause 3 art. 149 Tax Code of the Russian Federation

, but because this operation
is not subject to VAT
(unless your foreign customers act through their permanent representative office in the Russian Federation).

Thus, when performing work exempted

from taxation with value added tax in accordance with
Art.
149 of the Tax Code of the Russian Federation or
not recognized as an object of taxation
by this tax in accordance with
Art.
148 of the Tax Code of the Russian Federation , value added tax
is not calculated
.
Accordingly, the tax base for value added tax is not determined
.

Consequently, the norm of Art. 167 Tax Code of the Russian Federation

, on the basis of which the day of receipt of
advance payments
(partial payment) towards the upcoming completion of work is the moment of determining
the tax base

does not apply
to such work .

In this regard, advance payments

, received by you on account of the upcoming implementation of research and development work, exempt from VAT taxation in accordance with
paragraphs
16 clause 3 art. 149 of the Tax Code of the Russian Federation , as well as research and development work that is not subject to VAT taxation according to
paragraphs.
4 paragraphs 1 art. 148 of the Tax Code of the Russian Federation
are not subject
to value added tax .

As for the preparation of invoices, clause 3 of Art. 169 Tax Code of the Russian Federation

obliges taxpayers
to prepare invoices
, in particular, when performing transactions
recognized as subject to VAT taxation
, including
those not subject to taxation
(exempt from taxation) in accordance with
Art.
149 Tax Code of the Russian Federation .

Since performing R&D for foreign customers who do not have permanent representative offices in the Russian Federation is an operation not recognized as an object of VAT taxation

should not
issue invoices for these works (including when receiving advance payments) .

In accordance with paragraph 5 of Art. 168 Tax Code of the Russian Federation

when selling goods (works, services), the sales operations of which
are not subject to taxation
(exempt from taxation), settlement documents, primary accounting documents are drawn up and
invoices are issued
without allocating the corresponding tax amounts. In this case, the corresponding inscription or stamp “Without tax (VAT)” is made on these documents.

You must apply this procedure for issuing invoices when performing R&D for customers operating in the Russian Federation (including for foreign customers operating through their permanent representative offices in the Russian Federation).

On the issue of drawing up invoices when receiving advances

from buyers on account of the upcoming supply of goods (as well as the performance of work, provision of services),
exempt
from VAT, the Ministry of Finance of the Russian Federation in a letter dated August 25, 2005 No. 03-04-11/209 reported that since
VAT is not calculated
and accordingly, tax deductions for VAT
are not made
; invoices
should not be
.
However, there is another point of view.
Its supporters note that clause 18 of the Rules of Conduct

journals of records of received and issued invoices, purchase books and sales books when calculating value added tax, approved by Decree of the Government of the Russian Federation of December 2, 2000 No. 914, obliging sellers to draw up and register invoices in the sales book upon receipt of funds in the form of payment, partial payment for upcoming deliveries of goods (performance of work, provision of services),
does not make exceptions
for cases of receiving advance payment for transactions exempt from taxation in accordance with
Art.
149 Tax Code of the Russian Federation .

Although it is obvious that issuing such an invoice and registering it first in the sales book, and then (based on clause 13 of the Rules...) in the purchase book when shipping goods (performing work, providing services) does not make any sense, because the size of the tax base this does not change VAT.

In addition, the Government of the Russian Federation, in accordance with clause 8 of Art. 169 Tax Code of the Russian Federation

has the power to establish only
the procedure for maintaining a journal
of invoices received and issued,
purchase books and sales books
, and not to determine when taxpayers must prepare invoices.

does not directly provide for the obligation of taxpayers to prepare invoices for advances.

Thus, there is no clear answer to the question about the need to issue invoices when you receive an advance payment for R&D, the customer of which operates on the territory of the Russian Federation.

At the same time, the absence of invoices is, in accordance with Art. 120 Tax Code of the Russian Federation

a gross violation of the rules for accounting for income and expenses and objects of taxation and is punishable by a fine in the amount of
5 to 15 thousand rubles
.

To be on the safe side, you can send a request to your tax office, not forgetting to mention the position of officials of the Ministry of Finance of the Russian Federation that is favorable to you, or ask this question directly to the Ministry of Finance and be guided by the clarifications received.

.
For income in the form of a positive exchange rate difference
on property and claims (liabilities), the value of which is expressed in foreign currency, the date of receipt of income is the date of transfer of ownership of the foreign currency, as well as the last day of the current month (
clause 7, clause 4 of Art. 271 Tax Code of the Russian Federation
).

For expenses in the form of negative exchange rate differences

for property and claims (liabilities), the value of which is expressed in foreign currency, the date of expenses is the date of transfer of ownership of foreign currency when performing transactions with foreign currency, as well as the last day of the current month (
clause 6, clause 7 of Art. 272 of the Tax Code of the Russian Federation
).

Income and expenses expressed in foreign currency

, for tax purposes are recalculated into rubles at the official rate established by the Central Bank of the Russian Federation
on the date of recognition of the corresponding income (expense)
.

Obligations and claims expressed in foreign currency, property in the form of currency values are converted into rubles

at the official rate established by the Central Bank of the Russian Federation
on the date of transfer of ownership
when carrying out transactions with such property, termination (fulfillment) of obligations and claims and (or)
on the last day of the reporting (tax) period
, depending on what happened earlier (
clause 8 Article 271 of the Tax Code of the Russian Federation, paragraph 10 of Article 272 of the Tax Code of the Russian Federation
).

Thus, you must recognize income and expenses in the form of exchange rate differences arising in settlements with foreign customers on the date the foreign customer makes the payment or on the last day of the reporting (tax) period, whichever occurs first.

VAT

Under certain conditions, R&D is not subject to VAT. You can take advantage of this benefit:

if the work is carried out at the expense of budgetary funds, funds of the Russian Foundation for Basic Research, the Russian Fund for Technological Development and funds for supporting scientific, scientific, technical, and innovative activities created for these purposes in accordance with the Law of August 23, 1996 No. 127-FZ;
if the work is carried out by educational institutions and scientific organizations on the basis of business contracts.

Exemption from VAT also applies to R&D to create new or improve manufactured products and technologies, if R&D includes:

development of the design of an engineering facility or technical system;
development of new technologies;
creation of prototypes of machines, equipment, materials not intended for sale, their testing for a long time.

This right is granted to organizations by subparagraphs 16 and 16.1 of paragraph 3 of Article 149 of the Tax Code of the Russian Federation.

To confirm the right to apply benefits for R&D, which are financed from budgets, an organization can:

an agreement specifying the source of financing;
notification (certificate) of the customer about the allocation of funds from the budget to finance R&D.

Such clarifications are given in letters of the Ministry of Finance of Russia dated May 18, 2015 No. 03-07-11/28473, dated October 11, 2012 No. 03-07-07/409.

To apply this benefit, the organization is obliged to ensure separate accounting of both VAT-taxable and tax-exempt transactions (clause 4 of Article 149 of the Tax Code of the Russian Federation).

An organization can refuse the R&D benefit and pay VAT in the usual manner (clause 5 of Article 149 of the Tax Code of the Russian Federation).

VAT on the cost of R&D work can be deducted if all necessary conditions are met (clause 1 of Article 172, clause 2 of Article 171 of the Tax Code of the Russian Federation).

Situation: is it necessary to charge VAT on the cost of R&D performed in-house? The organization is not a scientific organization or a performer of R&D commissioned by third parties.

It is necessary to charge VAT on the cost of work performed if R&D costs are not taken into account in expenses when calculating income tax (subclause 2, clause 1, article 146 of the Tax Code of the Russian Federation).

An exception to this rule is the R&D work listed in subparagraphs 16 and 16.1 of paragraph 3 of Article 149 of the Tax Code of the Russian Federation. Regardless of the fact of recognition as income tax expenses, do not charge VAT on them.

If R&D expenses reduce the tax base for income tax (including through depreciation deductions), then there is no need to charge VAT on the cost of R&D performed in-house (subclause 2, clause 1, article 146 of the Tax Code of the Russian Federation).

Situation: at what point - when reflecting on account 08 “Investments in non-current assets” or when reflecting on account 04 “Intangible assets” the sub-account “R&D work” - can input VAT be deducted on R&D expenses?

Accept input VAT on R&D expenses when reflected in account 08 “Investments in non-current assets”.

Chapter 21 of the Tax Code of the Russian Federation does not impose special requirements for the application of VAT deductions for R&D expenses. Representatives of the financial department adhere to this position in private explanations. Input VAT on costs associated with the creation of R&D can be deducted in the usual manner. That is, at the time they are reflected in accounting (for example, on account 08 - for works and services, on account 10 - for materials). Along with this, other conditions required for deduction must be met (availability of an invoice, purchase of property for transactions subject to VAT). This procedure follows from paragraph 2 of Article 171 and paragraph 1 of Article 172 of the Tax Code of the Russian Federation. Thus, the law does not require waiting until R&D expenses are recorded in account 04 “Intangible assets” to apply the VAT deduction on them.

VAT of prototypes

Article 149 of the Tax Code of the Russian Federation provides for the possibility of exempting from VAT the transfer of samples to the customer, subject to certain conditions.

Otherwise, prototypes in circulation are not considered. Among the well-known misconceptions, the transfer of prototypes refers to types of products provided to another party for study with the purpose of concluding a supply agreement. Donating material assets, including product samples, is prohibited between legal entities. The transfer of products is permitted for advertising purposes, which results in an object of VAT taxation.

simplified tax system

Organizations that pay a single tax on income do not take into account any expenses (including R&D expenses) when determining the tax base (Clause 1, Article 346.14 of the Tax Code of the Russian Federation).

Organizations that have chosen the difference between income and expenses as the object of taxation take into account R&D expenses when calculating the single tax. Recognize expenses in the manner established for organizations applying the general taxation system. This procedure is provided for in subclause 2.3 of clause 1 of Article 346.16 of the Tax Code of the Russian Federation.

Situation: is it possible to take into account R&D expenses in the initial cost of fixed assets (intangible assets)? The organization applies simplification.

Yes, you can.

This is explained as follows. The initial cost of fixed assets and intangible assets when applying the simplified procedure is formed according to the accounting rules (paragraph 9, paragraph 3, article 346.16 of the Tax Code of the Russian Federation). And in accounting, R&D expenses are included in the initial cost of fixed assets and intangible assets (paragraph 2, clause 8 of PBU 6/01, clauses 7, 9 of PBU 14/2007).

If, as a result of R&D, an industrially applicable design is obtained for which the organization does not plan to obtain exclusive rights, R&D expenses are included in the initial cost of the fixed asset.

If, as a result of R&D, a sample is obtained for which the organization plans to obtain exclusive rights, then the cost of R&D is also reflected in one of two ways:

accounted for as part of intangible assets;
written off as other expenses within two years.

This procedure is established by clause 9 of Article 262 of the Tax Code of the Russian Federation and follows from the right of an organization to independently choose a group of expenses if the costs incurred can simultaneously belong to several groups (clause 4 of Article 252 of the Tax Code of the Russian Federation).

If an organization applies a simplification and is a performer of R&D on orders from other organizations, then the costs incurred by it are taken into account as part of the expenses associated with carrying out activities aimed at generating income (see, for example, the letter of the Federal Tax Service of Russia for Moscow dated January 16, 2004 No. 21-09/02809). Such expenses are taken into account when calculating the single tax by cost item (for example, labor costs, purchase of materials, etc.) (Article 346.16 of the Tax Code of the Russian Federation).

OSNO and UTII

Account for R&D expenses according to the rules of the taxation system in whose activities the development results will be used.

If the results of ongoing R&D will be used in both types of activities of the organization, then the costs of such work must be distributed (clause 9 of Article 274, clause 7 of Article 346.26 of the Tax Code of the Russian Federation). This is due to the fact that when calculating income tax, expenses related to the organization’s activities on UTII cannot be taken into account. This situation may arise, for example, if work is being done to improve a product that will be sold both through wholesale and retail trade. The cost of R&D related to only one type of activity does not need to be distributed.

For more information on how to allocate expenses related to both tax regimes, see:

How to take into account income tax expenses when combining OSNO with UTII;
How to deduct input VAT when accounting for taxable and non-taxable transactions separately.