What is VAT? VAT is perhaps the most popular tax among all. It is paid by all production organizations operating under the general taxation regime. On the one hand, everyone knows about him. On the other hand, this knowledge is, as a rule, so superficial that it seems to many that VAT is a simple addition of 18 percent to the cost of a product or service.
Simple taxes do not exist. The characteristic of VAT shows that this tax has a rather complicated structure , since some enterprises are exempt from paying it, and some receive certain benefits. Therefore, it is important to know such nuances that it is correct to calculate VAT and not to lose your own money due to lack of knowledge in this area. We are talking about elementary fines.
What is VAT? General concepts
Value added tax is an indirect tax, that is, a premium to the price of the goods. It is a form of withdrawing part of the value added to the state budget. VAT is determined as the difference between the cost of goods (services) sold and the cost of material costs for production and circulation.
This tax does not directly affect the pricing, consumption structure, regulates demand. In essence, VAT is one of the most powerful fiscal tools of the state.
In Russia, VAT has been in force since 1992. Now the procedure for calculating VAT and its payment is regulated by Chapter 21 of the Tax Code of the Russian Federation.
Starting January 1, 2004, the VAT rate is 18%.
VAT payers are enterprises and individual entrepreneurs, individuals who transport goods across the border. Organizations and entrepreneurs who work under special tax regimes are exempt from VAT . Therefore, it is necessary for both legal entities and individuals to know that such a VAT.
There is an opportunity to be exempted from paying VAT even when working under the general regime (Article 145 of the Tax Code). According to it, VAT may not be paid by enterprises whose revenue for the past three months has not exceeded 2 million rubles. For exemption you must contact the tax office.
The objects of VAT are transactions of sale of goods (services) and transfer of property rights. In addition, the objects are also operations on the transfer (including gratuitous) of goods, services, construction and installation works intended for own consumption, as well as goods imported into the Russian Federation.
About 70 types of operations under Art. 149 and 150 of the Tax Code are exempted from VAT, and those listed in Art. 146, p. 3 operations are not subject to VAT at all.
To understand what VAT is and how to calculate it, you need to study a lot of regulatory documents.
The tax base is the amount with which the tax is calculated. It is determined (Articles 153-162 of the Tax Code) depending on the type of goods sold. If, when implemented by the taxpayer, different tax rates are applied, then the tax base is calculated separately for each type of goods (services) taxed by type of rate. If the same rates are applied, then the tax base is considered in total for all types of operations that are taxed at this rate. In some cases, the tax office asks for clarification on VAT if there is a variety of rates and objects of taxation.
The obligation to pay VAT arises on the day of payment or shipment (including partial) of goods (services).
Tax is paid quarterly. Deductions are made from the amount of tax. If they exceed the amount of VAT paid, then the difference is refundable.
VAT rates are: 0%, 10% and 18%. The list of products at reduced rates is given in Art. 164 of the Tax Code.
Taxation at a zero rate for the company is more profitable than exemption from VAT. In this case, you can reimburse VAT on purchased goods.
The amounts of VAT paid when purchasing goods (services) in the territory of the Russian Federation are deducted from the amounts of goods sold. In this regard, organizations that pay VAT do not work with enterprises operating under other tax regimes.
Thus, to understand that such a VAT becomes a little easier. In practice, this tax is very similar to value added tax: each seller adds this tax to bills. The buyer can deduct this tax from the amounts paid for goods (services). As a result, VAT payment does not actually fall on sellers of goods, but on their final retail consumers. This system allows you to avoid paying tax on tax. The VAT is actually charged only when the product falls into the hands of the final consumer.