Supply contract on standard basis without VAT. Individual entrepreneur – VAT
The Tax Code defines the circle of entrepreneurs who pay this tax. An individual entrepreneur can work with VAT, especially if he plans to cooperate with enterprises. This tax is also paid when importing goods through the territory of the Russian Federation, regardless of the taxation system used. The tax is considered in three variants.
The declaration must be submitted by the 20th of each month.
You need to pay it every month.
Individual entrepreneur with VAT
Our Calculator will help you determine the amount of the fine.The account will be blocked if, after 10 working days from the date set for submitting the declaration, it is not submitted at all (clause
1 clause 3 art. 76 of the Tax Code of the Russian Federation) Penalties will be charged for each day of delay in the amount of 1/300 of the refinancing rate of the Central Bank of the Russian Federation in effect during the period of delay (Art.
75 of the Tax Code of the Russian Federation). You can check whether the tax authorities calculated the amount of penalties correctly using our Calculator. exempted from VAT payer duties.
Why LLCs don’t want to work with individual entrepreneurs
Not all individual entrepreneurs get a seal for their company, because the law does not oblige it to be used. When making payments, they do not always have to issue an invoice to the counterparty.No one can prevent an individual entrepreneur from stopping his activities at any time. And most importantly, individual entrepreneurs most often use special tax regimes. In turn, the LLC considers its degree of responsibility higher.
A legal entity has its own accounting department.
In general, the answer to the question whether an individual entrepreneur pays VAT on the simplified tax system is negative. Tax paid on special regime taxation replaces a number of payments, including VAT.
However, there are a number of exceptions to this rule. An individual entrepreneur works with VAT: when he fulfills the obligations of a tax agent (for example, when purchasing products from foreign companies that cannot be taxpayers, or when renting (purchasing) property from government authorities); when he issues an invoice to the counterparty, where the VAT amount is indicated in a highlighted line (the exception will be activities under intermediary agreements, when the individual entrepreneur is a commission agent or agent).
How does individual entrepreneur work with VAT on OSNO and special modes?
If the individual entrepreneurs are not subject to the above tax items, then VAT must be calculated and paid on each sale made.The tax is added to the cost of valuables, services, works by multiplying the tax rate by this value. Each time an individual entrepreneur carries out a sales operation, he adds tax to the cost and transfers its amount to Russian budget. The amount of VAT is included in the total cost of the transaction, the buyer is provided with documents containing the full cost, taking into account the added tax.
Does the individual entrepreneur pay VAT?
The difference forms the final amount: payable or refundable.Subjects are recognized as legal entities - enterprises, organizations, firms, and individuals - individual entrepreneurs.
The rules for applying VAT are practically the same for them.
When an entrepreneur is registered, this fact implies that the entrepreneur automatically acquired the status of a VAT payer.
As already mentioned, the obligation to pay VAT by an entrepreneur is enshrined in the code.
Individual entrepreneurs and VAT
In other words, tax legislation directly provides: in the case of doing business, a citizen who is not registered as an individual entrepreneur may be recognized as a payer of the relevant taxes, incl.value added tax. To prevent this from happening, you need to understand what activities can be considered entrepreneurial.
An independent concept entrepreneurial activity not in tax legislation.
On what basis does an individual entrepreneur work without VAT?
The tax office clarified that “simplers” have the right to pay VAT if they want, subject to the issuance of invoices with the allocation of VAT. Naturally, you will have to file a declaration and pay tax to the budget.Decide what is more profitable for you: pay VAT or refuse an “inconvenient” customer. If you work without VAT, then you don’t need to include it anywhere. And you don’t need to issue invoices either, because otherwise you will be obliged to pay it to the budget.
Sample agreement for the provision of services by a party applying the simplified taxation system
2.3. Payment for services under this agreement is made within 5 (five) banking days, from the moment of issuing the invoice and/or signing the Service Agreement, by non-cash transfer Money to the Contractor's bank account, or in another way.Sample agreement for the provision of services by a party applying the simplified taxation system
Agreement No. _____
for the provision of services
Open Joint-Stock Company Organization No. 1, hereinafter referred to as the Customer, represented by director Ivan Ivanovich Ivanov, acting on the basis of the Charter, on the one hand, and Limited Liability Company Organization No. 2, hereinafter referred to as the Contractor, represented by director Petrov Petrovich, acting on the basis of the Charter , on the other hand, have entered into this agreement as follows:
1. The Subject of the Agreement
1.1. The Contractor provides equipment repair services to the Customer, and the Customer undertakes to pay for these services on the terms established by this agreement.
2. Cost and payment procedure
2.1. The cost of the services provided is 1,500.00 (One thousand five hundred) rubles 00 kopecks, for the entire period of provision of services.
VAT is not assessed due to the fact that the Contractor applies a simplified taxation system based on clause 2 of Art. 346.11 Chapter 26.2 of the Tax Code of the Russian Federation and is not a VAT payer, according to the letter of the Ministry of Taxes of the Russian Federation dated September 15, 2003 No. 22-1-14/2021-AZh397, invoices are not issued.
2.2 Services are considered provided after the parties sign the certificate of delivery/acceptance of services provided.
2.3. Payment for services under this agreement is made within 5 (five) banking days from the moment of issuing the invoice and/or signing the Agreement for the provision of services, by non-cash transfer of funds to the Contractor's bank account, or in another way.
3. Rights and obligations of the parties
3.1. The customer undertakes:
3.1.1. Ensure unobstructed access to equipment to be repaired.
3.1.2. Accept the services provided.
3.1.2. Produce full payment services provided in the amount and manner provided for in this Agreement.
3.2. The Contractor undertakes:
3.2.1. Provide equipment repair services.
3.2.2. The Contractor has the right to involve non-employees of the Contractor in the provision of services.
4. Responsibility of the parties and resolution of disputes
4.1. For non-fulfillment or improper fulfillment of obligations arising from this agreement, the Parties bear responsibility, the basis and amount of which are established current legislation Russian Federation.
4.2. Disputes and disagreements arising between the Parties in connection with the fulfillment of obligations under this agreement are resolved through negotiations, including through claims.
4.3. If the Parties fail to resolve the dispute pre-trial, it is referred by the interested party for resolution to the Arbitration Court.
5. Duration and procedure for termination of the contract
5.1. The agreement comes into force from the moment of signing and is valid until the parties fully fulfill their obligations under this agreement.
6. Final provisions
6.1. This agreement has been drawn up in 2 (two) original copies, one of which is kept by the Contractor, the other by the Customer, each of which has equal legal force.
7. Legal addresses and bank details of the parties
Customer:
JSC Organization
___________________________
01.10.08 Contract without VAT
The Tax Code gives fairly clear rules on how to calculate the amount of VAT for most cases. True, some situations that companies face remain, as they say, “behind the scenes.” Yes, not one normative act does not contain a direct indication that the contract, for example, for the supply of goods to mandatory the tax amount must be allocated. And this, in turn, creates fertile ground for possible conflicts with inspectors.
In most forms primary documents, and also, quite understandably, special lines are provided in invoices to highlight the amount of VAT. However, some documents recording certain operations carried out by an organization do not provide for a strictly established form. And even the requirements for their design are often very conditional.
For example, any contract concluded by a company must contain a price clause. The civil legislation does not contain a requirement that it would also be necessary to indicate the amount of VAT. The Tax Code requires documenting any operation involved in the formation of the company’s tax base. So it turns out that when setting the price for a product in a supply contract, it would not hurt a company to specify exactly how it is going to calculate VAT in excess of or as part of the specified price. Otherwise, it may turn out that the final cost of sales, which, according to the supplier, includes VAT, in the vision of the tax authorities should be increased by 18 percent.
A similar situation may arise for an organization that at the beginning of the tax period was exempt from the duties of a VAT payer (Article 145 of the Tax Code), but then lost this right. In this case, she is obliged to calculate and pay tax from the beginning of the same quarter. However, if at the time of “loss” she has existing agreements with counterparties, she is faced with the same problem described above: how to calculate tax - in excess set price, or allocate the amount of the budget payment as part of it?
Needless to say, representatives tax structures in such situations they tend to “work for an increase”, or more precisely, to demand an increase in the declared value by the tax rate. After all, in this case, a larger payment will go into the budget. But how justified is this position? The answer to this question, in particular, is given in the resolution of the Federal Antimonopoly Service of the Central District dated August 26, 2008 No. A48-5068/07-18.
Arbitration arithmetic
The organization that has become a participant in this judicial trial, was brought to justice for failure to pay several taxes at once. Among others - VAT. Naturally, in addition to the amount of the fine, the tax authorities “awarded” to pay additional tax, calculating it in excess of the amount of proceeds received from the sale. The organization tried to challenge the tax authorities’ decision, but was only partially successful. Although the judges agreed with the very fact of the violation, they pointed out to the tax authorities that the amount of the surcharge was calculated incorrectly.
They recalled that by virtue of paragraph 6 of Article 168 of the Tax Code, when selling goods, works, and services to the population at retail, the corresponding amount of VAT is included in their prices. In accordance with Article 146 of the Tax Code, the objects of VAT taxation are transactions involving the sale of goods, works and services on the territory of the Russian Federation. At the same time, the Code provides for the use of a calculation method for allocating VAT in some situations, for example, when tax is withheld by tax agents or when selling agricultural products. In such cases, the tax amount is determined based on the percentage ratio of the tax rate to the tax base, taken as 100 and increased by the corresponding tax rate, in other words, as 18/118. The situation in question, according to the judges, fully falls within the scope of this rule. Accordingly, the amount of value added tax is included in the contract price of the goods and must be calculated according to the above-mentioned method.
Interestingly, this is not the first time judges have expressed such a point of view. In the resolution of the Federal Antimonopoly Service of the Ural District dated June 4, 2008 No. Ф09-3975/08-С2 in case No. А76-24488/07 a similar conclusion was made on that simple reason, that VAT belongs to the category of indirect taxes and cannot be determined above the agreed price that the buyer paid to the seller who pays this tax as part of the cost of the goods. To be fair, it is worth noting that the presence in arbitration practice of such court decisions This does not mean at all that tax inspectors, when checking the activities of specific companies, will strictly follow the position expressed by the courts. It is quite possible that the best solution to this potential problem will not be unnecessary in this situation, the foresight shown when concluding an agreement with the counterparty.
M. Yarina. expert " Federal agency financial information"
VAT in contracts
An obligatory point of any contract is its price. In this case, it is necessary to take into account which taxation system the legal entity or entrepreneur operates under. In this regard, the price formulation may be as follows:
The first formulation is used by those whose activities or tax regime do not provide for VAT - these can be persons using a simplified taxation system or applying UTII, or those who are exempt from paying VAT. The list of organizations and individual entrepreneurs whose activities exempt them from the obligation to pay VAT is provided for in Article 145 of the Tax Code of the Russian Federation.
Those taxpayers who are required to pay VAT must use the second formulation and indicate the amount of VAT in the contract price. Otherwise, a situation may arise when the client will be forced to pay an amount greater than specified in the contract. Unfortunately, unscrupulous entrepreneurs and legal entities may deliberately not indicate the amount of VAT in the contract, misleading people. And this misconception lies in the fact that the buyer will be forced to pay the full cost of the contract and in addition the amount of VAT that is established for the purchased product or service.
It is logical to assume that if the contract specifies only the contract price, then in the event of a dispute regarding the payment of VAT, the costs should be borne by the seller, and not by the buyer, who in good faith paid the amount specified in the contract. But the opinion of the courts on this matter is somewhat different. And the seller has the right to collect the amount of VAT from the buyer.
This is due to the application by the courts of paragraph 1 of Article 168 of the Tax Code of the Russian Federation. which reads: When selling goods (work, services), transferring property rights, the taxpayer (tax agent specified in paragraphs 4 and 5 of Article 161 of this Code), in addition to the price (tariff) of the goods (work, services) being sold, transferred property rights, is obliged to present payment to the buyer of these goods (works, services), property rights, the corresponding amount of tax.
In the Information Letter of the Supreme Arbitration Court of the Russian Federation dated December 10, 1996 No. 9 Review judicial practice application of the legislation on value added tax, the court points to the imperative nature of the provisions of the Tax Code. Consequently, if the contract does not directly indicate value added tax, then the contract price must be increased by the amount of VAT. Therefore, costs due to inaccurate completion of the contract fall squarely on the buyer.
As for real cases of an unexpected increase in the contract price, here we can give an example with the tariffs of cellular operators. Advertising usually displays very attractive numbers. But next to them there is always an almost invisible asterisk indicating the link below. And in this link, in an almost unreadable font, it is written that prices are excluding VAT. What does the subscriber get as a result? And the fact that he cannot make a demand for withdrawal extra money from the account, because the amount of tax must also be added to the specified tariff.
From all of the above, we can conclude that before concluding an agreement, it is necessary to find out its final cost. An extra few minutes will save you from unpleasant situations that may arise in the future.
Related links
Download the supply agreement (sample)
A supply agreement is one of the main contracts that is used by almost any entrepreneur. When drawing up and concluding a supply agreement, it is necessary to provide for all mandatory (essential) conditions, without which the agreement will not be considered concluded, and also to take into account possible legal risks associated with failure to fulfill obligations under such an agreement or the occurrence of force majeure circumstances. You can download the supply agreement, a sample of which is given below. It contains everything the necessary conditions in order to purchase a quality product, receive payment for it in a timely manner, and in the event of a violation by the counterparty of its obligations, to defend its interests in arbitration court.
Supply contract
download the supply agreement
DELIVERY AGREEMENT No. ___________
Moscow " " _____________ 2013
_______________________ » , hereinafter referred to as " Provider". represented by ______________________________-, acting on the basis of the Charter, on the one hand, and OOO "_______________", hereinafter referred to as " Buyer". in the face General Director ____________________________, acting on the basis of the Charter, on the other hand, collectively hereinafter referred to as the “Parties” or each individually “Party”, have entered into this Agreement, hereinafter referred to as the “Agreement”, as follows:
1. The Subject of the Agreement
1.1. In accordance with this Agreement, the Supplier undertakes to supply, and the Buyer undertakes to accept and pay for the Goods, on the terms, in the volumes and in quantities specified in the specifications, agreed upon and duly signed by the Parties, which are an integral part of the Agreement.
1.2. The specifications indicate the following data:
Name and quantity of the Product
Price of the Product with the VAT amount highlighted
Product delivery time
Terms of settlements under the Agreement
Consignee details and destination address
Additional (special) delivery conditions.
1.3. The Buyer has the right, in agreement with the Supplier, to change the specification.
1.4. Delivery (shipment) of the Goods is carried out to the address of the Consignee specified by the Buyer, unless other delivery conditions are agreed upon in writing by the Parties.
2. Price and terms of payment for the Goods
2.1. The price, cost of the Goods, terms and payment procedure are determined in accordance with the specification agreed upon by the Parties.
2.2. Calculations are made in non-cash form by transferring funds to the Supplier's bank account in accordance with the terms agreed upon by the Parties in the specification.
2.3. Payment for goods is made in rubles at the rate of the Central Bank of the Russian Federation established on the day of invoice based on the Supplier's invoice and on the terms specified in the Appendices to this agreement. All types of bank fees and expenses under this Agreement, charged by the Buyer’s bank, are paid by the Buyer, charged by the Supplier’s bank, are paid by the Supplier.
2.4. The price includes VAT, the cost of the goods, its transportation, delivery, packaging, as well as the execution of the relevant shipping documentation.
3. Terms and procedure for delivery of the Goods
3.1. The Supplier delivers the goods to the consignee's warehouse with the obligation to deliver the goods to the Consignee within the time frame and on the conditions agreed upon in the specification.
3.2. Expenses upon delivery of the Goods are paid by the Supplier.
3.3. The Supplier is granted the right to early delivery of the Goods with the prior written consent of the Buyer.
3.4. The date of delivery of the Products is considered the date the Buyer signs the delivery note at the Buyer’s (consignee) warehouse in terms of quantity and quality.
3.5. The ownership right passes from the Supplier to the Buyer at the Buyer's (consignee) warehouse from the moment of signing the consignment note on acceptance of the goods in terms of quantity and quality. In this case, the Buyer bears responsibility for the safety of the Goods from the moment of transfer and signing of the relevant invoices.
3.6. No later than one week before the start of delivery, the Supplier shall notify the Buyer by fax or email of the expected delivery date.
3.7. The Supplier undertakes to provide the Buyer with an invoice and delivery note for the shipped goods within 5 days from the date of receipt of the goods at the Buyer’s warehouse.
- 3. Packaging and labeling of the Product
4.1. The packaging must ensure complete safety of the Goods from any kind of damage and corrosion when transporting it by sea, rail, air and road, taking into account several transshipments along the way, as well as long-term storage, taking into account the warranty period.
4.2. The product must be packaged in such a way that it cannot move inside the container when its position changes.
4.3. The packaging must be adapted to overload on trolleys and trucks, if this is allowed by the weight and volume of individual items.
4.4. The Supplier is liable to the Buyer for damage to or damage to the Product due to improper packaging and compensates the Buyer for actual damage associated with poor-quality packaging of the Product.
4.5. The containers and boxes in which the Products will be packaged are marked on three sides: on opposite sides and on top of the box.
4.6. Loading and placing the Goods in vehicle must be carried out in compliance with the rules in force on transport.
4.7. If, upon acceptance of the Goods, damage (shortage) of the Goods is discovered due to a violation of the integrity of its container (packaging), then the Supplier will bear independent responsibility for the short delivery (damage) of the Goods.
5. Acceptance of the Goods
5.1. Acceptance of the Goods by the Buyer based on the number of pieces and external inspection of the integrity of the packaging must be carried out immediately after acceptance of the goods at the warehouse and all defects and comments discovered during inspection must be reflected in the delivery note. Claims regarding the number of pieces and external inspection of the integrity of the packaging that are not specified in the consignment note will not be accepted.
6. QUALITY, COMPLETENESS AND GUARANTEES
6.1. The Supplier guarantees that the quality and completeness of the supplied Goods comply with the terms of this Agreement and are confirmed by a Quality Certificate issued by the manufacturer and an equipment acceptance certificate. If it is necessary, at the Buyer’s request, to carry out an engineering inspection of the Product and installation of equipment by a representative of the Supplier, these actions will be additionally agreed upon and specified in the specifications agreed upon and duly signed by the Parties, which are an integral part of the Agreement.
6.2. In the event of a discrepancy in the quantity and/or quality of the Goods with the terms of this agreement, the Buyer notifies the Supplier of this within 2 days after detection of discrepancies upon receipt of the Goods at the Buyer’s warehouse in accordance with clause 5.1.
6.3. If the quality of the received Goods does not comply with the shipping documents, calling a representative of the Supplier to participate in acceptance is mandatory. If the representative fails to appear within 5 days from the date the Supplier receives the call, acceptance is carried out without the participation of the Supplier's representative with the participation of a representative of a third-party organization.
6.4. If the parties do not reach an agreement on the quality of the products, the parties may engage an expert organization to conduct an analysis, payment for the services of which is carried out at the expense of the Buyer. If the examination confirms the inadequate quality of the products transferred by the Seller, then the costs of paying for the services of the expert organization are reimbursed by the Supplier within 10 working days from the receipt of the relevant conclusion and documents confirming the fact of payment by the Buyer for the services of the expert organization.
7. Rights and obligations of the parties
7.1. The Supplier undertakes:
7.1.1. Deliver the goods in a timely manner within the time limits specified in the specifications to this Agreement. The quality of the Goods must meet the requirements set by the Buyer.
7.1.2. Deliver the Goods in the quantity and assortment specified in the specification, which is an integral part of this Agreement.
7.1.3. The Supplier is obliged to transfer the Goods to the Consignee in containers and packaging provided for goods of this type and ensuring their safety under normal conditions of storage and transportation.
7.2. The buyer undertakes:
7.2.1. Pay for the Goods in the amount and terms according to the specifications.
7.2.2. Ensure acceptance of the Goods by the Consignee.
8. Responsibility of the parties
8.1. For violation of the terms of the Agreement, the Parties are responsible in accordance with this Agreement and the current legislation of the Russian Federation.
8.2. In case of violation of the delivery time provided for in clause 3.1. of this Agreement, the Buyer has the right to recover from the Supplier a penalty in the amount of 0.1% of the cost of products not delivered on time, for each day of delay before the Supplier actually fulfills its obligations to supply the Goods, but not more than 5% of the entire shipment of Goods.
8.3. In case of violation of the payment deadline provided for in Appendix No. 1 of this Agreement, the Buyer shall pay the Seller a fine in the amount of 0.1% of the cost of the amount unpaid on time for each business day of delay until the Buyer actually fulfills the obligations to pay for the Goods, but not more than 5% of the entire batch of Goods.
8.4. Payment of penalties and compensation for losses does not relieve the Supplier from fulfilling its obligations under the Agreement and eliminating violations.
8.5. If necessary, the Buyer submits claims and claims to the Supplier related to unsafe, poor-quality (incomplete) delivery, or collection of penalties for violation of delivery deadlines no later than 15 days from the date of receipt of the cargo by the Buyer (Consignee). The period for responding to a claim is 10 (ten) business days from the date of its receipt.
8.6. The Party is not liable under the Agreement if it proves that fulfillment of its terms is impossible due to unpredictable, unpreventable and insurmountable circumstances (force majeure) beyond the control of the Party: natural disasters, fires, epidemics, military actions, states of emergency, strikes. These circumstances must be confirmed by certificates from Chambers of Commerce and Industry or competent government agencies Russian Federation. The deadline for fulfilling obligations under this agreement is extended in proportion to the time during which the force majeure circumstances occurred, as well as the consequences caused by these circumstances.
8.7. The Parties intend to resolve all disputes and disagreements that may arise in connection with the execution of the Agreement through negotiations. If it is impossible to resolve the dispute through negotiations, it is subject to consideration in accordance with the legislation of the Russian Federation in Arbitration Court Moscow.
9. Privacy
9.1. The terms of the Agreement are confidential. Any documentation and information related to the Contract may be viewed only by persons who have an employment relationship with the Parties and directly perform official duties related to contractual work.
9.2. In case of violation of confidentiality conditions, the guilty Party shall compensate the other Party for the losses caused to it.
10. Duration of the Agreement and the procedure for its amendment and termination
10.1. The Agreement comes into force on the day it is signed by both Parties and sealed and is valid for a year from the date of signing. If the Party does not notify the other Party in writing at least 30 (thirty) calendar days before its end of its intention to terminate the Agreement, it will be considered extended for the next calendar year.
10.2. The Agreement may be terminated early by written agreement of the Parties.
10.3. And changes and additions, as well as all agreements on delivery conditions, including applications, commercial proposals and specifications to this Agreement are valid and are an integral part of the Agreement only if they are in writing, signed by authorized persons and sealed Side. In the event of conflicts between the terms of delivery changed by the Parties and its previous terms, the changed terms of delivery will prevail for the Parties.
11. Final provisions
11.1. The Parties recognize within the framework of the Agreement the legal force and date of receipt of facsimile documents by them.
11.2. In everything that is not specified in this Agreement, the Parties are guided by the current legislation of the Russian Federation.
11.3. All legal, actual, postal and other addresses and bank details of the Parties given in the text of this agreement are genuine and recognized by the Parties. If there is a change in name, address, bank details or reorganization, the Parties are required to notify each other on the same day.
11.4. This Agreement and its Appendices are drawn up in two copies having equal legal force, one copy for each party.
The same rule applies in the opposite case: if you accept VAT as a deduction, then you should have an invoice and an agreement with allocated VAT. At the same time, the Tax Code provides for cases in which you may not indicate the amount of VAT in the contract, in particular if:
- Your organization uses a special regime and is not a VAT payer. For example, you use the “simplified tax” or pay imputed tax;
- As a legal entity, you purchase goods that are not subject to VAT. A similar rule applies in the production of such goods;
- You are an importer of goods not subject to VAT;
- You export goods abroad.
Bank of expert opinions
JSC “Faza” and LLC “Global” entered into an agreement, the payment for which is 12,741 rubles, there is no information about VAT. In the official correspondence preceding the conclusion of the contract, there is information that the price of the contract (12,741 rubles) does not take into account VAT and Global undertakes to pay additional tax.
After signing the agreement, Global refused to pay VAT above the price specified in the agreement. Does “Faza” have the right to present “Global” with an additional amount of tax for payment? “Faza” has the right to file a claim in court to recover the amount of VAT from “Global”.
Important
The basis for this will be letters or other documents confirming business correspondence. Question No. 2. JSC Magnat purchased a batch of goods from LLC Delta.
Attention
The price of the lot under the contract is 741,300 rubles, there is no information about VAT. The amount of VAT is additionally added to the contract price (RUB 741,300.
Agreement without VAT: sample for individual entrepreneurs and LLCs
The question arises: how legal is it to indicate in the agreement the cost of goods without VAT? Is the contract considered valid? What right do individual entrepreneurs and legal entities have to indicate/fail to indicate VAT in an agreement? Read more about this below. Rules and restrictions for legal entities The Civil Code of the Russian Federation does not provide for any restrictions when drawing up an agreement by legal entities - the organization specifies all the terms of the agreement at its discretion.
But we should not forget about tax consequences and before drawing up an agreement without VAT, familiarize yourself with the position of the Tax Code on this issue. Tax law determines that VAT transactions carried out by an organization must be confirmed by documents, including an agreement.
For example, your organization, as a legal entity, sells goods and submits VAT for payment to the buyer. In this case, the amount of tax must be indicated separately both in the invoice and in the contract.
How to correctly issue an invoice from an individual entrepreneur to an LLC and draw up an agreement
Organizations recognized as VAT taxpayers on the basis of Article 145 of the Tax Code of the Russian Federation have the right to apply exemption from the performance of taxpayer obligations. At the same time, when selling goods (work, services) by taxpayers exempt in accordance with Art.
When answering the question of what is subject to VAT, it is necessary to pay attention to 2 aspects: is the operation subject to VAT and is it not listed in Art. 149 of the Tax Code of the Russian Federation. The object of taxation includes 4 groups of operations (clause 1 of Article 146 of the Tax Code of the Russian Federation):
- sale on the territory of the Russian Federation of goods (work, services), collateral, transfer of goods (work, services) on the basis of compensation or novation, transfer of property rights. In this case, the sale can be either paid or gratuitous (clause 1, clause 1, article 146 of the Tax Code of the Russian Federation);
- transfer of goods (works, services) for one’s own needs, i.e. not for the purpose of obtaining income from third parties with their help, but for the needs of the organization itself. Such a transfer is subject to VAT if expenses on it are not recognized for profit tax purposes (clause 2, clause 1, article 146 of the Tax Code of the Russian Federation). Because they cannot be considered economically justified (Article 252 of the Tax Code of the Russian Federation), or they are listed among the expenses not taken into account when calculating income tax (Article 270 of the Tax Code of the Russian Federation). In this case, the fact of transfer of goods must be documented (for example, when transferring goods from one division to another, TORG-13 is issued);
- carrying out construction and installation work for own consumption. These are construction and installation works that the payer performs on his own and for himself (clause 3, clause 1, article 146 of the Tax Code of the Russian Federation). If construction is carried out by contractors, and the organization acts as an investor or developer, then there is no VAT subject to taxation (Letter of the Ministry of Finance dated 09.09.2010 N 03-07-10/12);
- import of goods into the territory of the Russian Federation (clause 4, clause 1, article 146 of the Tax Code of the Russian Federation). It's about on goods crossing the customs border and importing them into the territory of the customs union (clause 3, clause 1, article 2 of the EAEU Labor Code).
What is not subject to VAT?
Those operations that are not recognized as sales are not subject to VAT taxation (clause 1, clause 2, article 146, clause 3, article 39 of the Tax Code of the Russian Federation). This is, for example:
- operations related to the circulation of currency, except for numismatic purposes (clause 1, clause 3, article 39 of the Tax Code of the Russian Federation);
- OS transfer, intangible assets, other property to the legal successor during the reorganization of the company (clause 2, clause 3, article 39 of the Tax Code of the Russian Federation);
- transfer of property to a participant in a business company within its boundaries down payment when he leaves the company, as well as when the company is liquidated (clause 5, clause 3, article 39 of the Tax Code of the Russian Federation).
Other transactions that are not subject to VAT due to the fact that they are not recognized as an object of taxation are listed in clause 2 of Art. 146 Tax Code of the Russian Federation. Among them:
- transfer of residential buildings, kindergartens, roads, electrical networks and other facilities to government agencies and local government(Clause 2, Clause 2, Article 146 of the Tax Code of the Russian Federation);
- transfer of property of state and municipal enterprises during privatization (clause 3, clause 2, article 146 of the Tax Code of the Russian Federation);
- implementation land plots and shares in them (clause 6, clause 2, article 146 of the Tax Code of the Russian Federation);
- transfer of property rights to the legal successor of the organization (clause 7, clause 2, article 146 of the Tax Code of the Russian Federation);
- sale of property, property rights of debtors, declared bankrupt(Clause 15, Clause 2, Article 146 of the Tax Code of the Russian Federation).
In addition, there are transactions that are considered subject to VAT, but at the same time are not subject to VAT taxation (exempt from taxation). They are directly named in paragraphs 1-3 of Art. 149 of the Tax Code of the Russian Federation and their list is closed.
Transactions not subject to VAT tax
These are operations for the sale of certain types of goods and services. Goods not subject to VAT include, for example:
- medical goods specified in the approved list (approved by Decree of the Government of the Russian Federation of September 30, 2015 N 1042, subparagraph 1, paragraph 2, article 149 of the Tax Code of the Russian Federation);
- food products produced by catering organizations and sold by canteens of educational and medical institutions(Clause 5, Clause 2, Article 149 of the Tax Code of the Russian Federation);
- residential buildings, Living spaces, shares in them (clause 22, clause 3, article 149 of the Tax Code of the Russian Federation).
Are services subject to VAT?
In order for services to be subject to VAT, the place of their sale, firstly, must be recognized as the territory of the Russian Federation (Article 148 of the Tax Code of the Russian Federation). And secondly, they should not be named in paragraphs 2, 3 of Art. 149 of the Tax Code of the Russian Federation, which lists transactions not subject to VAT. In accordance with these paragraphs, the following services are exempt from taxation:
- medical services organizations and individual entrepreneurs conducting medical activities (clause 2, clause 2, article 149 of the Tax Code of the Russian Federation);
- services for supervision and care of children in preschool education organizations, for conducting classes in clubs, sections, studios (clause 4, clause 2, article 149 of the Tax Code of the Russian Federation);
- services for repair and maintenance of goods and household appliances within the warranty period of their operation without charging a fee (clause 13, clause 2, article 149 of the Tax Code of the Russian Federation);
- funeral services (clause 8, clause 2, article 149 of the Tax Code of the Russian Federation);
- services of pharmacy organizations for the manufacture of medicines, production and repair of spectacle optics (clause 24, clause 2, article 149 of the Tax Code of the Russian Federation);
- services of sanatorium-resort, health-improving organizations, recreational and health-improving organizations for children located on the territory of the Russian Federation (clause 18, clause 3, article 149 of the Tax Code of the Russian Federation).
The list of non-taxable services is quite large, so only some of them are listed above.
Conditions for applying the VAT exemption under Art. 149 Tax Code of the Russian Federation
Among non-taxable transactions There are those that are conducted within the framework of licensed activities. So, if an organization does not have the appropriate license, then it cannot apply VAT exemption (clause 6 of Article 149 of the Tax Code of the Russian Federation).
In addition, take advantage of the exemption under Art. 149 of the Tax Code of the Russian Federation, organizations and individual entrepreneurs that act in their own interests and not in the interests of another person under a commission agreement, assignment, etc. can. (clause 7 of article 149 of the Tax Code of the Russian Federation).
And one more important nuance. When simultaneously carrying out transactions that are subject to VAT and which are not subject to VAT under Art. 149 of the Tax Code of the Russian Federation, it is necessary to keep separate records of one and other transactions (clause 4 of Article 149 of the Tax Code of the Russian Federation). And also separately account for input VAT on goods, works, services used in one and other transactions.
Article 346.18 Tax base Article 346.19 Tax period. Reporting period Article 346.20 Tax rates Article 346.21 Procedure for calculating and paying tax Article 346.22 Repealed Article 346.23 Tax return Article 346.24 Tax accounting Article 346.25 Features of calculating the tax base when transitioning to a simplified taxation system from other taxation regimes and when transitioning from a simplified taxation system to other taxation regimes Article 346.25.1 No longer in force Chapter 26.2 of the Tax Code of the Russian Federation Simplified taxation system Comments on Chapter 26.2 of the Tax Code RF - Simplified system taxation simplified tax system- simplified taxation system Application of the simplified taxation system (STS) for individuals and legal entities allows you to significantly simplify tax reporting with a simultaneous reduction in the amount of taxes paid.
The use of a simplified taxation system by individual entrepreneurs provides for their exemption from the obligation to pay income tax individuals(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 under 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).
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For organizations and individual entrepreneurs using the simplified taxation system, the current procedures for maintaining cash transactions and order of presentation statistical reporting. 5. Organizations and individual entrepreneurs using the simplified taxation system are not exempt from fulfilling their duties tax agents, as well as the duties of controlling persons of controlled foreign companies provided for by this Code.
Commented article. 346.11 of the Tax Code of the Russian Federation establishes general provisions concerning the simplified tax system. The simplified tax system is used by both organizations and individual entrepreneurs and is used along with other taxation regimes.
And the transition to the simplified tax system or a return to other taxation regimes is carried out by organizations and individual entrepreneurs on a voluntary basis.
Chapter 26.2. simplified taxation system
At the same time, organizations applying the simplified tax system are still not recognized as VAT taxpayers, with the exception of VAT payable in accordance with the Tax Code of the Russian Federation when importing goods into the territory of the Russian Federation and other territories under its jurisdiction, as well as VAT payable in accordance with from Art. 174.1 Tax Code of the Russian Federation. Clause 3 of Art. 346.11 Tax Code of the Russian Federation (as amended) Federal laws dated November 24, 2014
N 376-FZ “On amendments to parts one and two of the Tax Code of the Russian Federation (in terms of taxation of profits of controlled foreign companies and income foreign organizations)", dated November 29, 2014.
Chapter 26.2 of the Tax Code of the Russian Federation, simplified tax system (simplified tax system)
Russian Federation on taxes and fees. The transition to a simplified taxation system or a return to other taxation regimes is carried out voluntarily by organizations and individual entrepreneurs in the manner prescribed by this chapter. 2. The application of the 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 of organizations ( excluding tax paid in respect of objects real estate, the tax base for which is determined as their cadastral value in accordance with this Code).
Tax Code of the Russian Federation
The simplified tax system, as before, is not recognized as VAT taxpayers, with the exception of VAT payable in accordance with the Tax Code of the Russian Federation when importing goods into the territory of the Russian Federation and other territories under its jurisdiction, as well as value added tax paid in accordance with Art. 174.1 Tax Code of the Russian Federation. Also, according to paragraph 5 of Art. 346.11 of the Tax Code of the Russian Federation (as amended by the Federal Law of November 24, 2014 N 376-FZ “On amendments to parts one and two of the Tax Code of the Russian Federation (regarding taxation of profits of controlled foreign companies and income of foreign organizations)”) organizations and individual entrepreneurs Those 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 the Tax Code of the Russian Federation.
Article 346.11. general provisions
This act has been drawn up to confirm that the services under the contract in the amount of 1,500.00 (One thousand five hundred) rubles 00 kopecks were provided by the “Contractor” to the “Customer” in full, efficiently and on time. VAT is not assessed due to the fact that that the “Contractor” applies a simplified taxation system, based on clause 2 of Art. 346.11 Chapter 26.2 of the Tax Code of the Russian Federation and is not a VAT payer, according to the letter of the Ministry of Taxes of the Russian Federation dated September 15, 2003 No. 22-1-14/2021-AZh397, invoices are not issued. 2. The parties to the above agreement have no claims against each other.
Customer: OJSC "Organization" Legal address: Actual address: INN KPP r/s Bank BIK Director I.I. Ivanov " " 20 Contractor: LLC "Organization No. 2" Legal address: Actual address: INN KPP r/s Bank BIK Director P.P.
Petrov " " 20
Sample contract for the provision of services by the party using the simplified tax system
N 376-FZ “On amendments to parts one and two of the Tax Code of the Russian Federation (in terms of taxation of profits of controlled foreign companies and income of foreign organizations)”) provides that the application simplified tax system by organizations provides for their exemption from the obligation to pay: a) 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 the Tax Code of the Russian Federation); b) tax on property of 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 the Tax Code of the Russian Federation).
Info
Contractor, the other - from the Customer, each of which has equal legal force. 7. Legal addresses and bank details of the parties Customer: OJSC "Organization" Legal address: Actual address: INN KPP r/s Bank BIK Director I.I.
Ivanov " " 20 Contractor: LLC "Organization No. 2" Legal address: Actual address: INN KPP r/s Bank BIK Director P.P. Petrov " " 20. Certificate of delivery/acceptance of services provided under Agreement No. K-sk city. Open joint-stock company "Organization No. 1", hereinafter referred to as the "Customer", represented by director Ivanov Ivan Ivanovich, acting on the basis of the Charter, on the one hand, and the Limited Liability Company "Organization No. 2", hereinafter referred to as the "Contractor", represented by director Petrov Petrovich, acting on the basis of the Charter, on the other hand, have entered into this agreement as follows: 1.
Attention
The essence of the simplified tax system and its attractiveness lies in the fact that the payment of a number of taxes is replaced by the payment of a single tax, which is calculated based on the results economic activity taxpayer for taxable period. Organizations and entrepreneurs can switch to using a simplified taxation system on a voluntary basis, subject to certain conditions.
Note that the simplified tax system gives additional benefits as an opportunity to use cash method accounting of income and expenses. Please note that from January 1, 2015, paragraphs 2 and 3 of Art.
346.11 of the Tax Code of the Russian Federation are in force in new editions. So, paragraph 2 of Art. 346.11 of the Tax Code of the Russian Federation (as amended by Federal Laws of April 2, 2014 N 52-FZ “On amendments to parts one and two of the Tax Code of the Russian Federation and certain legislative acts Russian Federation", dated November 24, 2014.
VAT is not assessed according to Chapter 26.2 of the Tax Code of the Russian Federation
The Contractor provides equipment repair services to the Customer, and the Customer undertakes to pay for these services on the terms established by this agreement. 2. Cost and payment procedure 2.1. The cost of the services provided is 1,500.00 (One thousand five hundred) rubles 00 kopecks, for the entire period of provision of services. VAT is not assessed due to the fact that the “Contractor” applies a simplified taxation system, based on clause 2 of Art. 346.11 Chapter 26.2 of the Tax Code of the Russian Federation and is not a VAT payer, according to the letter of the Ministry of Taxes of the Russian Federation dated September 15, 2003 No. 22-1-14/2021-AZh397, invoices are not issued. 2.2 Services are considered provided after the parties sign the certificate of delivery/acceptance of services provided. 2.3.
According to experts, it was the simplified taxation system that in 2017 became the most popular format for carrying out commercial activities of entrepreneurs and organizations. However, it is worth considering that this form of taxation has its limitations, and in some cases it is an economically unprofitable scheme. In any case, before switching to the simplified tax system with common system taxation, UTII or patent, you need to weigh the pros and cons. Advantages of a simplified taxation system As it says Tax code Russian Federation, the simplified tax system allows you to consolidate all taxes in a single payment, calculated according to the results of activities in a specific tax period.
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