Pay VAT on advances. Calculation of VAT on advances received from the buyer

In the process of entrepreneurial activity, various situations arise when the entrepreneur cannot resolve the situation on his own. The help of specialists, hired accountants or employees employed at the enterprise is required.

Very often questions arise regarding VAT on advances received by law. This is stated in Art. 167 NK. An advance is a product or product or service paid in advance by the buyer on account of promised deliveries.

Documentedly, the supplier determines the tax rate and calculates the amount of VAT on the advance payment.

The law also applies to the taxpayer when he may not calculate the amount of VAT on the advance payment. This happens when he:

• Sells products that are subject to a 0% export rate.
• Sells goods whose production time is more than 6 months. This list is approved by the government Russian Federation.
• Sells products that are tax free. In this case, tax is not charged upon shipment.
• Sells goods outside the Russian Federation. In this case, the goods are not subject to tax.

How to calculate VAT on an advance payment

If the future delivery has already been paid for, then mandatory tax must be charged. In this case, the tax rate is calculated based on the prepayment, and VAT is calculated according to the formula depending on the tax interest rate:

The rate depends on what goods your company sells and what rate was applied to the sale. If an advance was received on goods with a tax rate of 10%, then it is worth considering according to it. In all other cases the regular rate of 18% applies.

When receiving an advance for future shipments, the seller does the following:

• 51/62—reflection of prepayment.
• 76/68 - reflection of VAT on the advance payment.

For example, the enterprise Leto LLC received from Vesna LLC on March 10, 2016 an advance payment for future shipments in the amount of 1,000 rubles. VAT is 180 rubles. On March 15, the goods were shipped.

The following entries are made in the accounting department of Leto LLC:

• Dt-51 Kt-62 - 1,000 rubles.
• Dt-76 KT-68 – 180 rubles.

It is described that the postings were generated based on the advance payment dated 2016.

If the shipment has not been made within five working days, then the following entries are made:

• DT-90 Kt-41 – 800 rubles (cost of goods sold).
• DT-62 KT-90 – 1,000 rubles (sales income).
• DT -90 Kt-68 — 180 rubles (tax).
• Dt-68 Kt- 76 – 180 rubles (tax).

Then an invoice for the advance payment is generated, which must be issued within five working days.

Issuing an invoice for advance payment

According to Resolution No. 1137, the advance invoice is filled out in the sales book. Within five days, the supplier must provide the client with a document confirming the shipment of the goods. You can generate a document in the 1C program and print it in two copies.

The client transferring an advance payment to the counterparty must. All this is done on the basis of issued invoices, and also takes into account the supply agreement, which specifies the clauses for the advance payment, and VAT is calculated from .

See also videos about, issued and from ConsultantPlus:

Postings for advance payments issued

Upon receipt of an invoice from a supplier, the buyer’s accountant generates the following entries:

• 1 transaction – the advance payment to the supplier has been paid.
• 2 entry – the amount of VAT on the advance payment.
• Posting 3 - the amount of goods received.
• 4 entry – input tax, which goes to deduction.
• 5 wiring – .

Recently, many entrepreneurs and enterprises have been working under prepayment contracts. When receiving an advance payment, the supplier has a lot of obligations. They concern not only contractual obligations, but also the allocation of VAT and the payment of advance taxes to the budget.

Often an accountant has a question about how to deduct VAT from advances received.

The tax is charged both upon shipment of goods and upon receipt of an advance payment. But double VAT does not occur, since the company has the right to deduction.

VAT accrual on advance received

When did it happen advance payment, the recipient organization has obligations to the client. The supplier must ship the goods to the client within five working days, unless otherwise specified in the contract.

The VAT amount itself is calculated from tax rate for goods. It can be 10%, but more often it is 18%. An invoice is issued for the advance amount, which is subsequently sent to the buyer. Advance accruals occur in stages as follows:

• Based on NK 168, an invoice is issued within five working days.
• The invoice is recorded in the sales ledger.
• VAT is calculated at a certain rate for goods (10% or 18%).

Using an example, you can see how this happens technically.

In March 2014, an agreement for the supply of goods was concluded between Vesna LLC and Leto LLC. Vesna LLC shipped goods worth 100,000 rubles. VAT amounted to 18,000 rubles.

On April 10, the company Leto LLC transferred an advance in the amount of 50,000 rubles to the counterparty. Now let's calculate VAT on the advance payment. To do this, we will use the formula. We know the rate for the product, it is 18%:

50,000*18%/118=7,627 rubles.

The accountant makes the following entries:

They indicate that an advance payment was received from the buyer on the basis of supply agreements.

Sosnauskiene O. I.

From this article you will learn:
Grounds for the buyer's deduction.
Who can avoid issuing advance invoices?
What to do when the advance amount suddenly changes, or the buyer simply transfers a large amount?

Before 2009, there was a situation where the budget was financed at the expense of VAT payers. This happened in the case when the organization received an advance payment, and transferred the goods themselves (work and services) later. In this situation, the organization included the advance amount in the VAT tax base and, accordingly, calculated and paid tax on it. At the same time, this VAT was not presented to the buyer (customer) (an invoice was not issued).

The buyer who has transferred the advance has the right to deduct VAT, which corresponds to the seller’s obligation to pay VAT on the advance (clause 12 of Article 171 of the Tax Code of the Russian Federation).

This deduction will be made by the buyer based on:

1) invoices issued by sellers upon receipt of payment, partial payment for upcoming deliveries of goods (performance of work, provision of services);

2) documents confirming the actual transfer of payment amounts, partial payment for upcoming deliveries of goods (performance of work, provision of services);

3) a concluded agreement providing for the transfer of the specified amounts.

Instead of simply taking and canceling VAT on advances, legislators allowed buyers to immediately accept the amount of tax paid on the advance as a deduction, because it is not very convenient to reflect the same amount several times. Such changes are carried by the new clause 12 of Article 171 of the Tax Code of the Russian Federation, introduced by Federal Law No. 224-FZ of November 26, 2008 “On Amendments to Part One and Part Two of the Tax Code...”.

However, such a solution to the problem of VAT on advance payment for most organizations is unlikely to significantly reduce the amount of the buyer’s VAT liability. Previously, there was no deadline for issuing an advance invoice. Now it has appeared - 5 days from the date of receipt of the advance. And failure to comply with this deadline by the seller may result in the tax authorities denying the buyer a VAT deduction. To avoid claims from the tax authorities, the buyer needs to carefully monitor the dates for issuing “advance” invoices and, if necessary, ask the seller to correct the date on them, but we must not forget that the money may arrive to the seller later than it was transferred.

In practice, most often the buyer is issued an invoice containing all the essential terms of the contract. And payment by the buyer of such an invoice indicates that an agreement has been concluded in writing between the parties. If the buyer wants to receive a VAT deduction from the advance payment in this case, then the seller must be required to indicate in the invoice that the goods (work, services) are paid in advance.

Having received an advance payment, the seller will have to issue an invoice to the buyer within five calendar days from the date of receipt of the advance payment (clause 1 of Article 168 of the Tax Code of the Russian Federation).

The buyer will be able to deduct VAT only on an invoice issued within five calendar days from the date of receipt of payment. The invoice must include the name of the product. According to the Tax Code, the seller must issue an invoice for each advance received - even for non-monetary payments. This also applies to organizations that are exempt from paying VAT on the basis of Art. 145 of the Tax Code of the Russian Federation. The same applies to organizations selling goods that are not taxed. But issuing an advance invoice in such cases is inappropriate, since it still states “excluding VAT”.

To prevent the deduction from being doubled, in the quarter in which the tax amounts are subject to deduction, the VAT previously accepted for deduction on the advance must be restored, that is, the total amount of tax accruals must be increased (subclause 3, clause 3, article 170 of the Tax Code of the Russian Federation).

It follows from this that in a situation where prepayment and shipment occur in the same quarter, the buyer will have to make two entries in this book and one more in the sales book next year instead of one entry in the purchase book. If the advance payment was transferred in parts, there will be more work.

Example

The organization (seller) entered into an agreement with the organization (buyer) for the supply of office furniture in the amount of 118 thousand rubles. (including VAT 18 thousand rubles). The agreement stipulates that the “Buyer” transfers to the “Seller” an advance payment in the amount of 50 thousand rubles. The prepayment was transferred already in 2009 (for example, on February 27), and the shipment took place on April 2.All changes for the seller come down to the fact that he draws up an invoice not in one copy, but in two, one of which is transferred to the buyer within five days after receiving the advance payment (clause 3 of Article 168 and clause 5.1 of Article 169 of the Tax Code RF). Otherwise, everything is the same as before: VAT is determined at the estimated rate and is reflected in the declaration for the period in which the advance payment was received. During the shipment period, tax is again charged on the entire contract amount, and VAT on the advance payment is deducted. Accordingly, a second invoice is issued to the buyer for the entire amount of the contract (for 118 thousand rubles, including VAT).

But the buyer will have more trouble, because having received an invoice from the seller for prepayment, the buyer also acquires the right to deduct input VAT for this prepayment (clause 12 of article 171 of the Tax Code of the Russian Federation). In addition to the invoice, the deduction will require documents confirming the transfer of the advance payment, as well as an agreement that contains a condition for the advance payment. Thus, in our example, the “Buyer” in the 1st quarter of 2009 will be able to deduct 7,627.12 rubles. VAT paid by him to the seller as part of the advance payment.

So, after receiving office furniture and the corresponding invoice from the “Seller”, the “Buyer” receives the right to deduct the entire amount of VAT under the contract (18 thousand rubles). At the same time, an obligation arises to restore the tax accepted for deduction on the advance payment (subclause 3, clause 3, article 170 of the Tax Code of the Russian Federation). Therefore, in the declaration for the 2nd quarter, the “Buyer” for this transaction will reflect both a deduction in the amount of 18 thousand rubles, and the restoration of the tax previously accepted for deduction in the amount of 7,627.12 rubles .

Tax agents who are buyers will be exempt from the obligation to issue advance invoices. Since 2009, there is one new rule for tax agents that will affect their activities. Such organizations can deduct tax regardless of whether VAT was withheld from the income of the counterparty.

Since 2009, organizations (entrepreneurs) act in this capacity, not only renting state and municipal property, but also when receiving objects that are not assigned to state unitary enterprises (municipal unitary enterprises, institutions) and constitute the federal treasury or the treasury of a constituent entity of the Russian Federation (municipal entity).

The tax base must be determined separately for each transaction involving the sale of such property. It will be equal to the amount of income from the transfer of state property, including VAT. In this case, business entities that purchased a “valuable object” will be recognized as tax agents (clause 3 of Article 161 of the Tax Code of the Russian Federation). Buyers must calculate the amount of tax using the calculation method, withhold it from the income paid and pay it to the budget.

The changes also affected commission agents, agents and attorneys selling products of foreign entities not registered in Russia as taxpayers. If previously the duty of a tax agent arose only when selling goods, now an additional burden has fallen on the intermediary; he needs to report in the event that foreign contractors carry out work, provide services and transfer property rights on the territory of the Russian Federation (clause 5 of article 161 of the Tax Code of the Russian Federation).

When calculating the amount of VAT in such cases, tax agents cannot avoid the obligation to draw up invoices in the manner established by clause 3 of Art. 168 Tax Code of the Russian Federation.

Tax agent responsibilities will also arise when selling property by court decision, including during bankruptcy proceedings. “Honorary status” is assigned to bodies and organizations (PBOYUL) authorized to carry out the sale of such property (clause 4 of Article 161 of the Tax Code of the Russian Federation).

So, tax agents can deduct VAT if the tax was paid by them at their own expense in accordance with Chapter 21 of the Tax Code of the Russian Federation (clause 3 of Article 171 of the Tax Code of the Russian Federation), from which the requirement to withhold and pay VAT from the taxpayer’s income is excluded ( "original seller") The most significant change is the ability for buyers to deduct VAT from prepayment, without waiting for the actual shipment of products.

If you read paragraph 9 of Art. 172 of the Tax Code of the Russian Federation, it says that “deductions of tax amounts are made on the basis of invoices ... if available agreement providing for the transfer of specified amounts». There is no certain clarity about what needs to be stated in the contract: simply the buyer’s obligation to pay an advance on account of upcoming deliveries of goods (works, services) or the obligation to indicate certain amounts in the contract.

Let’s assume that the contract must specify a specific advance amount. But the result is a confusing situation: what to do when the advance amount suddenly changes, or the buyer simply transfers a large amount (both the amount specified in the contract and the amount in the invoice and payment order is different) - do not rewrite the contract every time or draw up additional agreements to it. It can be assumed that the words “specified amounts” mean that the contract must simply indicate that the buyer transfers an advance to the seller on account of future deliveries (namely, the indication of the word advance payment, prepayment, etc., rather than a specific amount). However, this is only a speculative point of view , there is no official clarification yet. But let us recall that in accordance with Art. 3 of the Tax Code of the Russian Federation, all inaccuracies and ambiguities in the legislation are interpreted in favor of the taxpayer.

It makes sense to refund VAT on advances only when there are long-term advances, for example for construction. In the case when an advance was paid within one quarter and the sale took place, there is no economic sense in dealing with VAT refunds from the advance. And since this is a taxpayer’s right, and not an obligation, many organizations will not do this. The sad thing is that there is no explanation on how to implement this in the 1C 8.0 program. It is proposed to issue invoices for each prepayment, and if Internet services are provided, for example, and legal (individual) buyers themselves decide when to top up their personal account with the service provider? And in this case there are no invoices for prepayment, and there never will be. And it is not possible to issue advance invoices automatically simply using payment documents; you will need to enter these invoices manually (for example, 300-500 invoices per month), absurd.

If the buyer does not claim VAT on the advance payment, the final VAT amount will not be underestimated. If the advance payment takes place in the same quarter in which the advance payment was received, then the amount of tax declared for payment or reimbursement according to the declaration will not change at all and the buyer will not face any penalties.

Therefore, in accordance with paragraph 1 of Art. 171 of the Tax Code of the Russian Federation has the right to reduce the total amount of tax by tax deductions. "Has the right to", but there is no obligation.

The new procedure for issuing “advance” invoices came into force on January 1, 2009 and is subject to application if the shipment took place after December 31, 2008 (clause 11 of article 9 Federal Law dated November 26, 2008 No. 224-FZ). If the advance was received from the buyer in 2009, it is clear that the seller must clearly follow the new rules. But what if the advance payment was received, say, at the end of 2008 and the goods were not shipped until December 31 of the same year inclusive? It would seem that, in fairness, the new rules should apply to this situation as well. However, in practice it is problematic to apply them. The fact is that, having received an advance from the buyer, for example, on December 10, the seller has already issued an invoice according to the old rules in one copy. And I registered it in my sales book. This means that it will not be possible to issue a similar document to the buyer in 2009. After all, two copies of the same invoice cannot have different dates. And even if the seller meets the buyer halfway and still issues an invoice for the 2008 advance payment, deducting VAT on such an invoice will be quite risky. In this case, the buyer faces the risk that the tax authorities will not accept VAT as a deduction for this transaction. There are no legal consequences for the seller, because the seller is liable for incorrect execution (untimely transfer) of the invoice Tax Code is not established at all, and there are no special cases or exceptions to the rules.

If the buyer paid the advance on December 31, 2008, shipment of the received advance payment will occur in 2009. And in accordance with clause 11 of Art. 9 Federal Law No. 224-FZ provisions of paragraphs 3–5 art. 161 of the Tax Code of the Russian Federation (relating to the obligation to issue an invoice) are applied when shipment of goods(performance of work, provision of services) and upon transfer of property rights carried out starting from January 1, 2009.

It turns out that the operation seems to have taken place in 2008, but the goods will be shipped in 2009, which means that a new invoicing procedure needs to be applied. This issue is controversial, and until there is official clarification from the Ministry of Finance, it is impossible to come to a common point of view.
For example, if an organization, in its declaration for the fourth quarter of 2008, decides to deduct the VAT accrued in this period on the cost of construction and installation work (C&E) for its own consumption, this cannot be done. Despite the fact that as of the date of filing the declaration for the fourth quarter, new rules for presenting VAT for deduction from the cost of construction and installation work for one’s own consumption are already in effect.

The fact is that the new edition of clause 5 of Art. 172 of the Tax Code of the Russian Federation applies to work performed after January 1, 2009. Therefore, the tax accrued on the cost of construction and installation work in the fourth quarter of 2008 can be claimed as a deduction according to the old rules, that is, in the first quarter.

Everyone is accustomed to the fact that VAT is not a tax that can be included in expenses when calculating income tax (Clause 19, Article 270 of the Tax Code of the Russian Federation). An organization's taxable profit cannot be reduced by expenses in the form of taxes that it imposes on its customers in accordance with the Tax Code of the Russian Federation.

VAT falls under this definition - after all, it is presented in the price of goods to buyers, but not always. The exception is VAT, which must be paid on advances for future deliveries; no one presents it to anyone.
Article 168 of the Tax Code of the Russian Federation states that the organization is obliged to present the amount of VAT to the buyer in addition to the price of the goods upon its sale. That is, it is impossible to present VAT to the buyer before the sale; at the time the advance is received, there is no sale yet - that’s why it’s an advance.

Therefore, nothing prevents the VAT accrued from the advance payment from being classified as other expenses under paragraph 1 of Art. 264 Tax Code of the Russian Federation. It allows you to reduce taxable profit by any accrued taxes, with the exception of those mentioned in Article 270 (and VAT on advances does not fall under it). By writing off VAT from the received prepayment as part of other expenses, the organization will save almost a quarter (24%) of its amount.

At the time of sale of goods for the supply of which the organization received an advance, VAT must be charged. This VAT is already considered to be presented (the sale has taken place), and taxable profit cannot be reduced on it. At the same time, you can deduct VAT accrued from the advance payment.

However, the tax service will most likely be against including VAT on advances as expenses. And if the organization does not want to have legal proceedings with the inspectorate, then, having put the VAT on the advance as a deduction, you need to show its amount in income. But in this case, you need to carefully calculate whether such an undertaking will be profitable.

This depends on many factors: how often the organization enters into prepayment contracts, how much time passes between receiving the advance payment and shipment, how evenly they are distributed across months, etc. For example, if advances are received infrequently and a significant amount of time elapses between them and shipment, it will likely be beneficial to include the VAT on the advance payment as an expense and then recognize it as income at the time of deduction. Indeed, in this case, approximately a quarter of the VAT amount on the advance payment can be given to the state not at the time of its receipt, but at the time of shipment.

The Income Tax Administration of the Federal Tax Service reports: “Yes, VAT amounts on advances can be recognized as other expenses. True, the tax service has never expressed this position in writing - no one has ever sent such requests. Having deducted the VAT transferred from the prepayment, its amount must be recognized as income.”

In an effort to get VAT into the budget early, legislators introduced a special tax - VAT on advances. It differs from VAT itself in that it is not presented to the buyer and is paid even before the VAT object - sales - arises. The authors of Chapter 25, seeking to clear “tax” expenses from VAT, did not take this nuance into account.

But the amount of advance tax transferred to the budget serves as the most common deduction, just like all others, when calculating VAT. It doesn’t occur to anyone to demand payment from the VAT deduction amount paid to the supplier! This is just an element of calculating the amount of tax liability, other than income tax, and in no way connected with it.

Since 2009, the buyer has not received the right to deduct VAT when transferring a third party’s bill of exchange as an advance payment for goods. According to Federal Tax Service specialists, the buyer does not have the right to deduct such VAT. It's all about the wording of clause 12 of Art. 171 of the Tax Code of the Russian Federation, on the basis of which the buyer received the right to deduct VAT on advances. This provision concerns advances transferred in real money. If goods are transferred, then there is no right to deduction. In addition, in the invoice for the advance payment, the seller will not be able to indicate the number of the payment order for the transfer of the advance payment, and this is a violation of the procedure for drawing up invoices.

If at the end of the tax period the amount tax deductions exceeds the total amount of accrued VAT, the resulting difference is subject to reimbursement (offset, refund) after the tax authority verifies the validity of the amount of tax declared for reimbursement within the framework of the desk tax audit. If violations of the legislation on taxes and fees are detected during a desk tax audit, a tax audit report is drawn up, on the basis of which the head (deputy) of the tax authority makes a decision to hold the taxpayer accountable for committing a tax offense or to refuse to hold him accountable.

If no violations are found, then within seven days after the end of the inspection tax authority must decide on VAT refund from the budget. Simultaneously with the decision a decision is made to reimburse (in whole or in part) the amount of tax, applied for compensation (decision to refuse).

In accordance with the amendments made to paragraph 3 of Art. 176 Tax Code of the Russian Federation, tax authority WithJanuary 1, 2009 simultaneously with the decision to prosecute or refuse to prosecute, makes the following types of decisions:

1) a decision to reimburse the full amount of tax claimed for reimbursement;

2) a decision to refuse to reimburse the full amount of tax claimed for reimbursement;

3) a decision to partially reimburse the amount of tax claimed for reimbursement, and a decision to refuse to partially reimburse the amount of tax claimed for reimbursement.

So, introduced into ch. 21 of the Tax Code of the Russian Federation, the amendments entail the following.

1. For the seller - additional paperwork and costs for sending out invoices. But if the seller, in violation of the established obligation, does not issue invoices for the advance received, then the tax authority, during an audit, may hold him accountable for the objects of taxation and fine him at least 5,000 rubles. Therefore, the seller must issue “advance” invoices and file them in the invoice journal so that they can later be presented during verification. But if he doesn’t want to bother with meeting the deadlines for issuing invoices and sending them to customers, then he doesn’t have to do this; it won’t affect anything for him.

2. For the buyer - an increase in the number of documents and transactions to be reflected in accounting and tax registers. Since submitting VAT for deduction is the right, and not the obligation, of the buyer, then, given the complex mechanism for deducting “advance” VAT, he may not apply it if he wishes. And act as before - claim VAT for deduction only on goods (work, services) actually received. There will be no negative consequences for him in this case.

In the process of entrepreneurial activity, various situations arise when the entrepreneur cannot resolve the situation on his own. The help of specialists, hired accountants or employees employed at the enterprise is required. Very often questions arise regarding VAT on advances received by law. This is stated in Art. 167 NK. An advance is a product or product or service paid in advance by the buyer on account of promised deliveries. Documentedly, the supplier determines the tax rate and calculates the amount of VAT on the advance payment. Content

• 1 When VAT is not paid on an advance payment
• 2 How to calculate VAT on an advance payment
• 3 Preparation of invoice for advance payment
• 4 Postings for advance payment issued
• 5 VAT accrual on advance received

When VAT is not paid on an advance The law also applies to a taxpayer when he may not calculate the amount of VAT on an advance.

VAT on advances received in 2018

At the moment, the issue is being actively discussed in all financial departments of the Russian Federation. Now we can definitely say that the tax system will face dramatic changes in the near future, as the President of the Russian Federation himself warned about this.
First of all, the changes will affect value added tax. Different departments propose different concepts for this painful process: an increase in VAT and a simultaneous reduction in income tax, or a reduction in insurance premiums.

Attention

There are three systems for a smooth increase in VAT since 2018. The Ministry of Finance proposes a 22/22 system, according to which: There is an increase in VAT from 18% to 22%; Personal income tax increases from 13% to 15%; Are decreasing insurance premiums to government funds from 33% to 22%.

VAT on advances received and issued

Decree of the Government of the Russian Federation dated December 26, 2011 No. 1137). By the way, VAT is accepted for deduction on that part of the advance payment that is taken into account as payment for shipped goods (Letter of the Ministry of Finance dated November 28, 2014 No. 03-07-11/60891).

Important

Let's explain with an example. The seller received an advance from the buyer in the amount of 82,600 rubles, including VAT of 12,600 rubles. As part of the first batch, the seller shipped goods with a total cost of 42,480 rubles, including VAT of 6,480 rubles.

38.4 Procedure for filling out the declaration).

Procedure and deadlines for paying VAT in 2018

Info

The content of the article:

• Which advances are subject to VAT?
• How to account for VAT on advances received?
  • VAT on advances received: postings
  • Registration of VAT deduction from the advance received after fulfillment of obligations
  • Registration of VAT deduction from the amount of advance received after its return
• VAT on advances issued
  • VAT on advances issued - postings

Advance payments are considered to be payments in the amount of 100% or partially of the contract amount, made before the goods or service are actually received, work is completed, etc. Their primary goal is to ensure the fulfillment of obligations in terms of timing, volume and quality.

VAT 2018: analyzing changes and innovations

Which advances are subject to VAT? As stated in Article 146 of the Tax Code of the Russian Federation, clause 1, the object of VAT taxation is transactions for the sale of services, work or goods on the territory of Russia. Therefore, an organization that has received an advance payment in any amount to secure future obligations must calculate VAT on the amount received.

It must be remembered that not all advances without exception are subject to VAT. 1. Advances made for transactions for which VAT is not legally provided for are not subject to VAT:

• export operations, international transportation and other operations taxed at a zero rate (Article 164 of the Tax Code of the Russian Federation, clause

  1, sub. 1);

• operations not subject to VAT (Article 149 of the Tax Code of the Russian Federation): insurance, banking, medical, educational services, etc.;
• for the sale of services, goods, and performance of work outside Russia (Articles 147 and 148 of the Tax Code of the Russian Federation).

How not to pay VAT on advances received in 2018

VAT, which was accrued earlier on the advance payment, is accepted for reimbursement;

• Dt 62, s/ac "Advances received" - Kt 62 s/ac "Settlements with buyers and customers": 47,200 rubles. – the advance received in May from the buyer is counted.

When transferring VAT to the budget: Dt 68, s/ac "Calculations for VAT" - Kt 51 "Current account": 7,200 rubles. – transfer of VAT to the budget. LLC "Vesna" must issue an invoice to the buyer - LLC "Leto" for 94,400 rubles.
and be sure to note it in the sales book.

The accountant notes the invoice issued for the amount of the advance (RUB 47,200) in the purchase book. Registration of VAT deduction from the amount of the advance received after its return. If the seller received an advance, but subsequently the contract with the buyer was terminated, the amount of the advance should be returned.

VAT on advances

Government Decree No. 468 dated July 28, 2006). In this case, the seller-manufacturer must have a document confirming the cycle duration, issued by the Ministry of Industry and Trade of Russia;

• sells goods that are not subject to VAT (Article 149 of the Tax Code of the Russian Federation). Then VAT will not have to be charged when shipping the goods;
• the place of sale of goods for which an advance was received is not the territory of the Russian Federation (Articles 147, 148 of the Tax Code of the Russian Federation). In such a situation, there is no object of VAT taxation (clause 1, clause 1, article 146 of the Tax Code of the Russian Federation).

Calculation of VAT on advances VAT on advances received is calculated using the calculated rate according to the formula (clause 4 of Article 164 of the Tax Code of the Russian Federation): The choice of rate depends on what goods you are selling and what rate is applied to operations for their sale. If you received an advance payment for goods taxed at a rate of 10%, then VAT must be calculated at a rate of 10/110. Such goods are named in paragraph.

Accounting for VAT on advance payments

If the shipment has not been made within five working days, then the following entries are made:

• DT-90 Kt-41 – 800 rubles (cost of goods sold).
• DT-62 KT-90 – 1,000 rubles (sales income).
• DT -90 Kt-68 - 180 rubles (tax).
• Dt-68 Kt- 76 – 180 rubles (tax).

Then an invoice for the advance payment is generated, which must be issued within five working days. Registration of an advance invoice According to Resolution No. 1137, an advance invoice is filled out in the sales book.

Within five days, the supplier must provide the client with a document confirming the shipment of the goods. You can generate a document in the 1C program and print it in two copies. The client transferring the prepayment to the counterparty must accept the advance VAT as a deduction.

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Home → Accounting consultations → VAT Current as of: December 25, 2015 Advance payment is an advance payment received by the seller for the upcoming delivery of goods, performance of work, provision of services (clause 1 of Article 487 of the Civil Code of the Russian Federation).

How to pay VAT on an advance in 2018

The VAT rate on advances is calculated by dividing the tax rate by the tax base, which is increased by the same percentage of the tax rate. At a VAT rate of 10%, it is equal to 10/110, if a rate of 18% is used - 18/118 (Article 164 of the Tax Code of the Russian Federation, clause 4). The invoice is prepared in 2 copies: the 1st is sent to the buyer, the 2nd is entered by the supplier in his sales book. VAT on advances received: postings Example 1. Accounting for advances received and VAT.

In May, Vesna LLC entered into an agreement with the purchasing company Leto LLC for the supply of sun loungers for a total amount of 94,400 rubles, including VAT. Also in May, Vesna LLC receives an advance in the amount of 50% of the contract volume, or 47,200 rubles.

VAT, included in the amount of the advance payment that must be paid to the budget, is equal to: 47,200 rubles * 18% / 118% = 7,200 rubles. These transactions are recorded using the following transactions: During May:

• Dt 51 “Current account” - Kt 62, s/ac “Advances received”: 47,200 rubles.

It is not obligatory to pay VAT on advances credited towards the subsequent supply of services, goods or production of works for which the production cycle lasts longer than six months (according to the list approved by Decree of the Government of the Russian Federation of July 28, 2006 No. 468) (Article 154, clause 1, paragraph 3; article 167 clause 13 of the Tax Code of the Russian Federation). How to account for VAT on advances received? The seller, having received an advance (partially or for the entire amount of the contract), in accordance with Article 168, paragraph 3, paragraph 3

The Tax Code of the Russian Federation, within up to 5 calendar days after the transfer of the advance payment, must issue and issue an invoice to the customer. The letter of the Ministry of Finance of the Russian Federation “On the application of tax deductions for advance payments” No. 03-07-15/39 explains that an invoice may not be sent if the supplier fulfilled its obligations before 5 days have passed since the advance payment was received .

VAT on advances received is calculated by the seller in a situation where the date of payment for a product (service) is ahead of the date of its sale. However, sometimes the Tax Code of the Russian Federation allows not to pay VAT on an advance received. Let's figure it out.

On our forum you can clarify any issues regarding the calculation of VAT and other federal taxes. So, you can find out how a desk audit of VAT is carried out and what documents are requested by tax authorities during this audit.

VAT on advances received - what is it?

Taxpayers are forced to charge VAT on advances received under subclause. 2 p. 1 art. 167 Tax Code of the Russian Federation. If payment has been received on account of a future delivery, VAT should be charged. In this case, the tax base will be the prepayment itself, and VAT is charged at calculated rates of 10/110 or 20/120, depending on the object being sold (clause 4 of Article 164 of the Tax Code of the Russian Federation).

Accounting for advances from the seller

1. The following postings are made:

Dt 51 Kt 62 - prepayment received.

Dt 76 Kt 68 - VAT is reflected on the prepayment.

2. An advance invoice is being prepared (Article 169 of the Tax Code of the Russian Federation).

The supplier has 5 days to issue it. It is compiled in 2 copies: one for yourself, the second for the buyer. The rules for issuing invoices for advances received are regulated by Decree of the Government of the Russian Federation of December 26, 2011 No. 1137 (hereinafter referred to as Decree No. 1137).

For information on how to correctly fill out an advance invoice, see the material

3. The advance invoice is recorded in the sales book.

The invoice is registered in the period in which the advance payment was received (clause 3 of the Rules for maintaining the purchase ledger, approved by Resolution No. 1137).

• there were no sales during the advance payment period;
• there was a sale during the period of transfer of the advance;
• the advance was returned to the buyer.

Option when there was no shipment during the advance payment period

The seller needs to enter the amount of the prepayment and VAT on the advance received in line 070 in columns 3 and 5, respectively, of section 3 of the VAT return (Order of the Federal Tax Service of Russia dated October 29, 2014 No. ММВ-7-3/558@).

An option when the seller returned the advance to the buyer

• The seller accepts VAT on advances received for deduction (clause 5 of Article 171 of the Tax Code of the Russian Federation), making the following entries:

Dt 62 Kt 51 - refund of advance payment.

Dt 68 Kt 76 - acceptance of VAT on advances received for deduction.

• Reflects VAT for deduction in the purchase book.
• Fills out line 120 of section 3 of the VAT return.

Option for selling previously paid inventory items

• The seller accepts VAT from the advance received for deduction (clause 8 of Article 171 of the Tax Code of the Russian Federation), making the following entries:

Dt 62 Kt 90 - revenue received from sales.

Dt 90 Kt 68 - VAT is charged on sales.

Dt 68 Kt 76 - VAT on advances received is deducted.

• Shows the VAT deduction for advances received in the purchase book with the invoice number that was issued by the seller upon receipt of the advance.
• Fills out a declaration in which the deduction is entered on line 170 of section 3.

On the deadlines for accepting VAT for deduction, see the material “Deductions of “advance” and “agency” VAT cannot be postponed”

Note! Tax authorities believe that VAT is charged on advance payments received in any case, even if the periods of receipt of advance payment and sales coincide (letter of the Federal Tax Service of Russia dated July 20, 2011 No. ED-4-3/11684).

In addition, according to sub. 3 p. 3 art. 170 of the Tax Code of the Russian Federation, the seller, having sold goods and materials for an amount less than the advance payment, can deduct VAT only from the sale amount, and not from the entire prepayment.

For more information on the rules for deducting VAT on advances, see the material “Accepting for deduction of VAT on advances received”

Buyer's actions when making an advance payment

The buyer, by virtue of clause 12 of Art. 171 of the Tax Code of the Russian Federation can accept advance VAT for deduction if:

• there is a correctly executed invoice;
• there is a document confirming payment;
• The contract specifies the possibility of prepayment.

Having transferred the advance, the buyer:

• Makes the following entries:

Dt 60 Kt 51 - advance payment is transferred.

Dt 68 Kt 76 - advance VAT is deducted.

• Enters VAT deductions from advances issued in the purchase book with the invoice number issued by the seller.
• Reflects advance VAT on line 130 of section 3 of the VAT return.
• Restores advance VAT during the sales period: Dt 76 Kt 68.
• Reflects VAT restoration in the sales book.
• Reflects in the declaration VAT on advances on line 090 of section 3 (at rates 10/110 and 20/120).

On the issue of filling out line 090 of the declaration, see the material “How to fill out line 090 of section 3 of the VAT return”

When there is no need to charge VAT on advances received

A taxpayer may not charge VAT on an advance received in the following cases:

• when receiving an advance on non-taxable transactions (Article 149 of the Tax Code of the Russian Federation);
• if advances are made for operations the place of implementation of which is not the territory of the Russian Federation (Article 147, Article 148 of the Tax Code of the Russian Federation);
• the seller does not pay VAT as a “special regime” (Chapter 26.1-26.5 of the Tax Code of the Russian Federation);
• the seller is exempt from paying VAT (Articles 145 - 145.1 of the Tax Code of the Russian Federation);
• an advance payment was made for transactions with a VAT rate of 0% (clause 1 of Article 164 of the Tax Code of the Russian Federation);
• the advance payment is transferred for operations for which a long production cycle is envisaged - more than six months (clause 13 of article 167 of the Tax Code of the Russian Federation).

For information about who is not considered a VAT payer, see the material “Who is a VAT payer?”

How to reflect VAT when receiving an advance payment when switching to the simplified tax system from the special tax system and vice versa

According to Art. 346.12 of the Tax Code of the Russian Federation, a taxpayer using the simplified tax system does not pay VAT, with the exception of certain cases. Consequently, in a situation where the seller charged VAT on the simplified tax system on the amount of advances received, and then switched to the simplified tax system, after which he carried out the sale, there are no grounds for deducting VAT. But he will not need to charge VAT on the shipment either.

If the seller, on the contrary, worked under the simplified tax system and then switched to the general regime, he will have to charge VAT on sales, but it will not be possible to reduce the tax base by the amount of the previously received prepayment (letter of the Ministry of Finance of Russia dated July 30, 2008 No. 03-11- 04/2/116).

On the consequences of the transition from the simplified tax system and to the simplified tax system, see the material “VAT upon transition to the simplified tax system from OSNO: accounting and restoration of tax”

Responsibility of the seller who does not charge VAT on advances received

Art. 122 of the Tax Code of the Russian Federation introduced liability for incomplete payment of VAT in case of understatement tax base. The amount of the fine according to this norm can range from 20 to 40% of the underpaid tax amount, depending on the intentionality of the violation.

For information on the consequences for late payment of VAT, see the material “What is the liability for late payment of VAT?”

Results

Accounting for VAT when receiving advances is for the seller great importance, after all, by charging and paying VAT on prepayment amounts, the taxpayer reduces the tax burden in future periods, since he then accepts the accrued VAT as a deduction.

For the buyer, on the contrary, the transfer of an advance makes it possible to reduce the tax burden in the current tax periods. However, if for the buyer claiming a deduction for advance VAT is a right, then charging VAT for the seller is an obligation, failing which he may be held liable.

VAT on advances received and advances issued is one of the tools for regulating an organization’s expenses for tax payments. To account for VAT on advances, subaccounts 76 of account are used: 76.VA - for received, 76.AB - for issued.

An organization that has paid an advance to a supplier has the right to claim for deduction the VAT paid. Necessary conditions for obtaining a VAT deduction from an advance payment:

• the condition for advance payment must be clearly stated in the contract with the supplier;
• the advance payment must be presented to the SF (no later than 5 days after payment).

VAT deduction is provided if tax period when the advance was transferred. When the final payment for the delivery occurs, that is, the goods are received from the supplier under the acceptance certificate, the organization is obliged to restore the amount of VAT previously claimed for deduction.

In addition to the receipt of goods, the obligation to restore the deduction arises for the organization in the following cases:

• changes in the terms of the contract;
• termination of the contract and return of the advance.

VAT is restored in the same amount in which it was previously accepted for offset. If the terms of the contract determine that the delivery of goods occurs after receiving 100% advance payment, the buyer can transfer the advance in installments. In this case, the amount of VAT reflected in the SF for the supply is restored. In any case, this value coincides with the amount of VAT on all advance tax payments for this supply.

VAT on advances received

When selling products (goods, services) to the buyer, a mandatory condition may be specified in the contract - advance payment in the amount of up to 100%.

On the received advance, the organization issues a tax return and charges VAT at a rate of 18/118%. The amount of this advance is included in the sales book as accrued VAT, that is, a tax that the organization is obliged to pay to the budget.

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In practice, after issuing a SF for the advance received, 3 situations are possible:

• during the advance period the sale occurred;
• no sales occurred during the advance period;
• return of advance payment to the buyer (termination of contract, change of conditions, etc.).

In the first case, after the shipment has been made, the selling organization has the right to present previously paid VAT on the advance received for deduction. That is, the advance SF is closed with a purchase ledger entry.

In the second case, the amount of the advance and the VAT accrued on it is reflected in the VAT return for the current period in line 070 of Section 3.

In the case of an advance refund, it is also possible to claim the VAT paid for deduction, that is, an entry is created in the purchase book. You can take advantage of the deduction within a year after termination of the contract.

In the event of liquidation of the purchasing organization before full fulfillment of the delivery conditions, if it is impossible to return the advance payment, VAT accrued upon receipt of the advance payment is not subject to deduction.

Examples of entries for accounting for VAT on advances

Example of an operation for advances received

Harmony LLC, under an agreement with the buyer Amalgama LLC, must supply a consignment of goods in the amount of 212,400 rubles, incl. VAT — 32,400 rub. 07/10/2016 "Amalgam" transfers an advance payment of 50% of the contract amount: 106,200 rubles. VAT on advance: 106,200 * 18/118 = 16,200 rub.

We reflect in the postings VAT on advances received from the buyer:

In August, Harmony ships a consignment of goods to Amalgam. Sales transactions and deduction of VAT from advances received:

Transactions on advances issued

Let's consider the same operation from the buyer's side. The accountant of Amalgama LLC will reflect VAT on advances issued by postings:

Upon receipt of the goods, the deduction of VAT on the delivery is reflected.