Value added tax (the most common abbreviation: VAT) among all existing taxes is one of the most difficult tax payments, it is not so simple to calculate. Large organizations with large commodity-money turnover for the calculation and accounting of VAT have a special accountant who knows how to calculate VAT.
Paragraph 1 of Art. 146 of the Tax Code of the Russian Federation says that the following aspects of the enterprise are subject to VAT:
- the sale of goods, services and work throughout Russia;
- the transfer in Russia of goods for their needs, the costs of which are not accepted for deduction when calculating corporate income tax;
- construction and installation works to meet the company's own needs;
- import of goods in the customs space of Russia.
Art. 146 of the Tax Code of the Russian Federation states that VAT payers are obligated to issue invoices established by law to customers and buyers, and it is mandatory to keep relevant sales and purchase books. In addition, it is imperative to keep records of received and issued invoices. The VAT base includes the amount of advance payment, which is received as an advance for future deliveries of goods.
Many novice accountants are interested in how to calculate the VAT from the advance. VAT is calculated according to the following formula: "the amount of VAT is equal to the amount of the advance received divided by 118 and multiplied by 18. If the VAT rate is 10%, then the amount of VAT, respectively, is equal to the amount of the advance received divided by 110 and multiplied by 10" . For VAT, in accordance with the requirements of the legislation, the reporting period is one calendar quarter.
How to calculate VAT
VAT is calculated according to the following algorithm. The amount of all tax deductions is deducted from the amount of tax accrued for the quarter, and as a result, VAT is obtained, the amount of which will need to be transferred to the budget. If the amount of deductions is greater than the amount of tax calculated for the quarter , the tax is subject to reduction. VAT refunds are made in accordance with Art. 78 of the Tax Code. More complete information on how to calculate VAT is provided in the Tax Code of the Russian Federation and in other legal acts.
The tax burden indicator determines the part of the total income of the company paid to the budget. World experience says that for the normal operation of the organization, its optimal value should be from 30 to 40% of the amount of profit. But given the specifics of the tax system in our country, the level of tax burden can vary from 2 to 70%.
To calculate the tax burden, it is necessary to compile a list of tax rates and calculate the income received from the sale of goods (as well as the provision of services, performance of work) that the company received during the reporting period. Next, you need to determine how to calculate the tax burden. It is equal to the ratio of the sum of all tax payments to the amount of income received from sales plus non-operating income. They also single out the tax burden as absolute and relative. The relative burden is more accurate - this is the ratio of the absolute indicator of the tax burden to the value newly created in percent.
Income tax takes into account all the company's net profit for the reporting year. This tax is paid by foreign and domestic companies that profit from their work in Russia. Calculate the corporate income tax is not difficult. The subject of tax is the net profit of the company. Therefore, to calculate income tax, the net profit of the organization for the entire reporting (tax) period is first calculated . To do this, you need to take its expenses from the total profit of the organization. Both that, and another - for the accounting period.
To determine exactly what is considered the profit of the organization, you need to contact the Tax Code. Article 248 defines the items of income that are subject to taxation for income tax, and the Articles of the Tax Code of the Russian Federation from 252 to 267 contain a description of expenses that can reduce the company's profit in calculating net profit.