Write off vat as expenses. How to write off VAT on expenses
All business entities, to one degree or another, regularly face value added tax. Many organizations are VAT payers and are required to calculate tax payable, but also to deduct VAT on purchased valuables and services. There are situations when it is not possible to accept VAT for deduction - an invoice was lost or not provided, the invoice was issued with errors. For such circumstances, the business transaction of VAT write-off is applied.
In 1C 8.3 software products, a special document "VAT write-off" is used to reflect this operation.
Let's consider in detail how to form a document and what results are obtained after its implementation.
To begin with, we will reflect the receipt of the service with VAT, assuming that in the act on the service VAT is highlighted in a separate line and amount, but the invoice was not attached to the act - this is a classic case, in connection with which the accountant does not have the right to deduct such input tax ...
We will issue the document of receipt of services through the "Purchases" section of the main interface, subsection "Receipt (acts, invoices)". We will register transport services with VAT:
Despite the fact that the invoice is not registered in the System and due to its absence, the document transactions contain movement on account 19 "VAT on purchased values", because the content of the document mentions the rate and amount of VAT.
We proceed to write off VAT. We remind you that it is impossible to deduct VAT in the absence of an invoice, it remains to write off the amount to other expenses, moreover, profit not accepted for tax purposes, which follows from Chapter 25 of Part 2 of the Tax Code of the Russian Federation.
Create a document "VAT write-off". In the main interface, the "Operations" section, go to the "Accounting" subsection, select "Operations log".
In the opened operation log, click on the "Create" button to find "VAT write-off" and add it to the program desktop.
We fill in the document with the necessary details. Using the "Fill in" button, the tabular section can be filled in automatically according to the receipt document, you just need to indicate this document. The tabular section is filled with information from the receipt document.
We proceed to specifying the account for debiting.
If we made advance payments for this receipt, then it would be necessary to take into account the advances, but in the example under consideration there were no advances, and the tab will not be filled in.
Special attention should be paid to the auto-substitution of the other income and expense item - this is an item that is not accepted for tax purposes. After carrying out, taking into account not accepted expenses, we will receive the following entries:
In addition to accounting records, movements will be formed according to the accumulation register “VAT charged”, and the movements will reverse, namely, a receipt with a minus.
Thus, we have written off the amount of VAT that is not deductible from the paying organization.
Attention is drawn to the fact that the System has a special document that allows you to immediately write off VAT when it is registered in the organization. This document is "Advance Report".
If you register the receipt of goods or other assets with an advance report, then in the tabular section there is a column "VAT accounting method". One of the options has the meaning "Written off (not accepted to OU)".
When this value is set, a posting on VAT write-off to account 91 is generated automatically for an item that is not accepted for taxation of profit.
Also, excessive movements in the "VAT charged" accumulation register are not generated.
The enterprise operates on OSNO. When selling goods, we apply the VAT rate of 18% and 0%. Question: How to correctly write off input VAT that will not be filed for refund? Reflection in BU and OU.
If VAT is not filed for refund, then write off input VAT in accounting by posting: Debit 91-2 “Not accepted” Credit 19 - VAT is written off at the expense of the organization's own funds.
Input VAT does not reduce the tax base for income tax (paragraph 1 of article 170 of the Tax Code of the Russian Federation).
How to reflect VAT in accounting and taxation
OSNO
When calculating income tax, the amount of VAT charged to buyers when selling goods (works, services, property rights) should not be taken into account (clause 19 of article 270 of the Tax Code of the Russian Federation).
Input VAT will not affect the calculation of income tax either. This is due to the fact that the amounts of input tax presented by Russian counterparties are accepted for deduction (clause 1 of article 171 of the Tax Code of the Russian Federation). However, there are exceptions to this rule. In some cases, the input tax amounts must be included in the cost of purchased goods (works, services, property rights). In this case, the amount of VAT will be included in expenses when the cost of goods (works, services, property rights) is reflected in tax accounting. For information on the possibility of including in the composition of expenses the amount of VAT (its analogue) paid to foreign counterparties, see How to take into account other expenses related to production and sales when calculating income tax.
If the requirements of the articles and
Sometimes the VAT charged by the supplier is required not to be deducted or included in the price, but to be written off to some other account. The following situations can be cited as examples:
- VAT must be debited to account 91.02, and not to the attribution account, and therefore the inclusion in the price cannot be used, for example, in the absence of a supplier invoice;
- the organization re-invoices for mobile communications to employees (over the limit), then VAT also needs to be attributed to account 73.03 in some proportion;
- when rationing expenses for advertising, VAT should be deducted as expenses are recognized in tax accounting for income tax, in which case the balance of VAT at the end of the year should be written off to account 91.02;
- an error occurred in the previous period, and you need to correct the balances on account 19.
Such transactions should be reflected not by an accounting statement, but by a special document "VAT write-off". In the latest versions of "Enterprise Accounting 3.0" it became possible to fill out a document based on the "Receipt of goods and services", which greatly simplifies the filling procedure and avoids data entry errors. Consider the form of the document and the features of its filling.
On a bookmark "VAT to write off" the fields corresponding to the “VAT charged” register are indicated (a special register that expands the analytics of account 19 in the program). These fields also correspond to the analytic of account 19: Supplier, Document-Basis, VAT account and VAT amount.
In the register, additional fields must be filled: Value type, amount without VAT, VAT rate and date of payment. These additional fields must be filled out especially carefully. since if it is filled in incorrectly, incorrect balances will appear in the “VAT charged” register.
If filling is done manually, then you should get the balances by the register "VAT charged" and fill in the tabular section of the document for them. Register balances "VAT charged" can be seen in the report "Universal report" ... It is necessary to select the register "VAT claimed" and in the settings add the Indicators corresponding to the columns of the tabular section of the document.
On a bookmark "Debit account" the invoice and analytics of VAT write-off are indicated. You can choose any account. When filling out on the basis of a document "Receipt of goods and services" account 91.02 and an item of other income and expenses are automatically set "Writing off the allocated VAT to other expenses".
When posting, the document generates transactions of the form DT "Account write-off" - CT 19 and register movements "VAT charged"... The correctness of filling out the posted document can be checked with a report "Universal report", you need to fill it in the same way as before. When checking, you should pay attention to the fact that the lines with negative income correspond to the lines with residuals in the analytic.
If after reading the article you still have questions, you can ask them in this form. We will try to answer any questions about reflection in programs on the 1C: Enterprise 8 platform on the next business day.
The need to classify VAT as an expense arises in relation to input tax amounts declared for payment by suppliers, as well as by persons carrying out work for various purposes or services (performers, contractors).
In general, this added tax should be allocated to a separate account for subsequent refund. In accounting in such situations, double entries are made that reduce the total VAT to be transferred. The described procedure is enshrined in clause 1 of article 170 of the Tax Code of the Russian Federation.
2nd and 5th paragraphs of Art. 170 contain exceptions to this standard rule, in which VAT is shown as an expense, rather than deducted to reduce the amount payable.
Allocation of VAT to expenses under clause 2 of article 170 of the Tax Code of the Russian Federation
Additional tax shall be accounted for in expenses under clause 2 of Article 170 if:
- Inventories, services rendered, works of various types, for which tax amounts have been paid, are used in operations that are not subject to added tax;
- The place of sale of such acquisitions does not apply to Russian territory;
- The company operates in one of the special regimes and does not have the functions of payers of the tax in question;
- The company is exempt from the VAT tax burden under Article 145;
- Values \u200b\u200bare used in operations that cannot be called implementation;
- Fixed assets, intangible assets, as well as property-type rights were purchased by a banking institution, and are implemented until the start of their operation (use).
In these transactions, the input tax cannot be reimbursed and must be shown in costs along with the value of the acquisitions to which it relates.
Separate accounting of "input" tax
Acquisitions of the company (goods, materials, services, works) can be used for various operations, and among them there can be both taxable and non-taxable. For values \u200b\u200bsubsequently applied in taxable transactions, VAT must be allocated for refund. Tax on valuables used in non-taxable transactions should be shown in tax expense. In order to correctly post VAT to accounts in such situations, you need to organize a separate accounting for input tax. This is achieved through the use of analytical accounts and subaccounts.
Separate accounting of input tax is a prerequisite for attributing VAT to expenses for those acquisitions that are involved in non-taxable transactions.
How the firm should organize separate accounting is not fixed anywhere. Therefore, each economic entity decides this issue for itself on an individual basis. The solution is shown in the accounting policy.
The amount of VAT to be attributed to expenses for tax purposes is determined from the value related to non-taxable transactions in the total value of valuables shipped in a quarter. The exact amount of tax to be included in expenses is determined after the end of the quarter. How exactly this procedure will be organized, what date the operation will be carried out is decided by the organization itself, since the legislative framework on this issue does not have any strict rules. The order of the organization of this process is included in the accounting policy.
If the share of VAT on non-taxable transactions is insignificant (less than 5%), then it is possible not to separate accounting, but to take the entire tax deducted.
The procedure for determining the share of VAT on non-taxable transactions
Calculate the following proportion:
VAT to be attributed to expenses \u003d (Value of items shipped for non-taxable transactions / total value of items shipped for the quarter) * total input VAT for the quarter.
Example:
LLC "ABS" shipped goods in the 1st quarter with a total value of 800,000 rubles, including goods, the sale of which was not subject to VAT, in the amount of 200,000. The total value of input VAT for the 1st quarter. it turned out 60,000 rubles.
VAT to be attributed to expenses \u003d (200,000 / 800,000) * 60,000 \u003d 15,000.
The rest of the tax will be deducted.
Allocation of VAT to expenses according to clause 5 of article 170 of the Tax Code of the Russian Federation
The costs can also include VAT in the situations prescribed in paragraph 5 of Art. 170, for assets acquired by the following person:
- bank, NPF, insurance, clearing company, stock exchange, investment fund, etc .;
- an organization engaged in insurance of export credits and investments against political and business risks;
- party to the agreement of the investment partnership on operations carried out within its boundaries.
In these situations, the input tax acts as an independent type of expense and is allocated separately; such amounts of the added tax are not subject to deduction. The procedure for attributing VAT to costs is carried out after their actual payment to the supplier (performer). In this case, an invoice is not required for this operation, but there must be other forms indicating the fact of the operation - contractual documentation, transfer deeds, invoices, payment forms, in which the amount of the additional tax is indicated in a separate amount.
Under the rules from clause 5 of article 170, VAT falls on goods, work performed, services, prepayments received. The tax on acquired property rights cannot be taken into account in expenses. As for fixed assets, you can write off only the costs of paying tax for those objects that are used later in the production process. If the object has a non-production purpose, then it is impossible to take into account the input tax amounts in expenses.
All the prescribed rules from clause 5 of article 170 are not mandatory for these persons. It is possible to choose an alternative way of accounting for input tax in the form of a VAT tax deduction according to the standard rules described in Art. 171 and 172.
An organization that has the opportunity to make such a choice is obliged to show in an accounting type policy a convenient way of accounting for incoming tax that will be used in the course of its activities. When making a choice, you need to understand that VAT on all incoming transactions should be accounted for using the chosen method. It is not allowed to take into account part of the tax in expenses, and part as a deduction, so you should consider in advance how the company will be more convenient to organize accounting.
Transactions for attributing input VAT to expenses
The VAT charged by the suppliers is allocated from the total cost, the prescribed documentation, and is debit 19 of the account. Further, it is included in the cost of goods and materials or fixed assets, after which it is gradually transferred to expenses as goods are sold, materials are used, depreciation of intangible assets and fixed assets is accrued.
Postings when writing off VAT to expenses for purchased MCs involved in the production process
Operation | Debit | Credit |
The cost of purchased materials (excluding VAT) is credited upon posting | 10 | 60 |
Highlighted the added tax on capitalized materials specified in the supplier's documentation | 19 | 76 (60) |
Money was transferred to the supplier for the purchased materials (total cost including tax) | 60 | 51 |
Added tax after payment is included in the cost of materials | 10 | 19 |
The cost of the MC is written off to the cost of production | 20, 23 | 10 |
Postings when writing off VAT to expenses on commodity valuables purchased for sale
Operation | Debit | Credit |
The cost of purchased goods is reflected upon posting to the warehouse | 41 | 60 |
Highlighted the added tax on accepted commodity values, spelled out in the accompanying documentation | 19 | 76 (60) |
Money was transferred for commodity values \u200b\u200b(including tax) on the basis of an invoice received from the supplier for payment | 60 | 51 |
Paid added display tax on product prices | 41 | 19 |
The cost of goods is transferred to the cost price upon their sale | 90.2 | 41 |
If the enterprise organizes separate accounting of the incoming tax, which is important when simultaneously performing taxable and non-taxable transactions, then different analytical accounts are opened on account 19, each of which will keep a separate accounting of VAT. Separately, tax will be allocated, which is deductible (19-deduction), included in the cost (19-cost) and subject to proportional distribution (19-distribution). It is enough to open 3 sub-accounts to the 19th account. Initially, VAT is credited to the sub-account for distribution, after which the tax is posted between the other sub-accounts.
Postings
Operation | Debit | Credit |
Reflected the cost of purchased goods and materials, taken into account from the supplier (excluding additional tax) | 10 (41) | 60 |
Highlighted the separately added tax declared by the supplier on the accepted values | 19-dist | 60 |
Allocated tax in the share to be refunded | 19-subtraction | 19-dist |
Allocated tax in the share to be attributed to the cost with further write-off to expenses | 19-stand | 19-dist |
The money was transferred on the received invoice for the acquired values | 60 | 51 |
The share of paid VAT on taxable transactions is deductible | 68 | 19-subtraction |
The share of VAT on non-taxable transactions is shown in the cost of the MC (TC) | 10 (41) | 19-stand |
VAT is included in the cost price | 20, 23 (90.2) | 10 (41) |
Postings on attribution of VAT to fixed assets expenses
Operation | Debit | Credit |
The value of the asset is shown, as stated in the supplier's documentation, excluding VAT | 08 | 60 |
Separately allocated VAT for this asset from the supplier's documentation | 19 | 60 |
Money was transferred to the supplier for the OS received (including VAT) | 60 | 51 |
VAT after payment is attributed to the cost of fixed assets | 08 | 19 |
The facility was transferred to the operational process for its intended purpose | 01 | 08 |
Shown monthly accrual of depreciation amounts for the object | 20 (23) | 02 |
VAT write-off on 91 accounts is performed in a number of situations when, for some reason, it is illegal to accept the input tax for deduction (for example, the absence of an invoice if there is a separate amount of VAT in the TORG-12). This article covers common cases in which tax should be charged to other costs.
In accordance with the current legislation, it is legal to deduct the input tax only for travel expenses for industrial trips, that is, in cases where the costs incurred are directly related to the main activity of the organization.
If the business trip was of a non-production nature, then it is advisable to write off the tax to other expenses (Dt 91 Kt 19). Due to the fact that these costs are excluded when determining the taxable base for income tax, it is illegal to deduct VAT.
In addition, there are certain nuances in the design of travel documents for a production trip in order to take tax deduction. Mandatory conditions:
- The presence of an invoice from the hotel, including the mandatory details of this document in accordance with Art. 169 of the Tax Code of the Russian Federation. In this case, the invoice must be issued for the organization, and not for the posted employee, otherwise the acceptance of tax deduction is not feasible.
- Availability of SSO (strict reporting form), drawn up in accordance with the norms approved by the Government of the Russian Federation of 05/06/2008 No. 359. SSO confirm air and railway expenses. Hotels can also provide strict reporting forms (no invoice required).
IMPORTANT! In the submitted documents confirming travel expenses, the amount of VAT claimed must be displayed on a separate line.
When deciding on the deduction of VAT on other documents not provided for by law, one must remember about the possibility of conflict situations with tax authorities.
No invoice with allocated tax in closing documents
A common situation with cash payments is the absence of an invoice with a dedicated tax in the act or checks. In the absence of a document, it is illegal to accept the VAT charged for deduction. Therefore, if it is impossible to receive an invoice for these purchases, it is advisable to write off the tax to account 91 (directly or through account 19).
Expired limitation period for tax deduction
Legislatively established a 3-year period when you can accept input VAT for deduction. There are situations when it was not possible to reflect the tax deduction during this period (for example, the absence of an invoice from suppliers). In this case, the amount of VAT charged refers to other expenses on account 91.
Also, the attribution of VAT (but not input, as in previous cases, but already accrued to be paid to the budget) to account 91 at the expiration of the limitation period is carried out when writing off accounts payable to the customer on the prepayment received from him. According to Russian law, upon receipt of advance payment, the supplier is obliged to issue an advance invoice. According to the document issued, the tax accrued for payment is reflected on account 76 "Advances received". From the specified account, VAT can be subsequently presented for deduction: when selling goods or when returning funds to a counterparty. If the 3-year limitation period has passed and the debt is written off, the amount of VAT is written off simultaneously with the debt to account 91 to the corresponding sub-accounts: the debt to the counterparty refers to the organization's income, presented with a prepayment of VAT - to expenses:
- Дт 62.2 Кт 91.1 - accounts payable to the customer written off;
- Dt 91.2 Kt 76 "Av. floor." - VAT was written off, previously paid to the budget from the advance received.
Operations with peculiarities of transfer of ownership
An asset sale and purchase agreement may provide for a special transfer of ownership of the property after full payment for the goods. At the same time, the supplier submits closing documents, including an invoice, when the assets are actually shipped.
In such a situation, difficulties arise in accepting tax deductible. In fact, the property has been shipped, receipts have been provided, the goods have been capitalized (accounting is kept on off-balance sheet accounts until the transfer of ownership). On the other hand, the goods have not yet passed into the property of the organization, and therefore questions may arise from the side of the regulatory authorities. Based on this, it is more expedient to leave VAT "hanging" on the debit of account 19, and after transferring the payment, accept it for deduction. If suddenly the organization did not manage to pay its supplier, and the latter was liquidated, then it will need to attribute VAT from account 19 to other expenses: Dt 91 Kt 19.
***
So, in some cases (for example, when there is no invoice if there is a separate amount of VAT in TORG-12), input VAT cannot be deducted from the budget, so it is advisable to attribute it to account 91 in order to avoid conflicts with controllers.
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