How to recover VAT from the budget, and also obtain the right to deduct “input” VAT?

What is VAT deductible?

For an answer to the question of what VAT deduction is, let us turn to the Tax Code of the Russian Federation, in paragraph 1 of Art.
171 which states that VAT payers are allowed to reduce the total amount of tax calculated according to the rules of Art. 166 of the Tax Code of the Russian Federation for a particular tax period, for the amount of tax deductions. To put it more simply, a VAT deduction is a tax (also called “input”) by which a company can reduce the amount of VAT payable to the budget. But, despite the fact that the payer has the right to deduct VAT, it can not always be used, but only if the conditions listed in the same article are met. 171 Tax Code of the Russian Federation:

1. The objects, resources, and rights acquired by the taxpayer, on which “input” VAT is calculated, must be used in transactions subject to this tax.
2. Acquired material assets and rights are registered.
3. The taxpayer has a correctly executed invoice for these transactions and the corresponding primary document.

Attention! “ConsultantPlus” warns. For some transactions, additional conditions for deducting VAT are provided, namely:... (read more about additional conditions for deducting VAT in K+).

Read about the deadlines for issuing invoices in this article .

In order to take advantage of VAT deductions, the above conditions must be met simultaneously. A little later we will look at each of them in more detail.

Please note: despite the fact that, according to the general rules, deductions are applied upon shipment, that is, regardless of the fact of payment to the supplier, there are still a number of conditions when payment is necessary. This applies, for example, to deductions for VAT paid on the import of goods; advance payments; returning goods; payment for business trips.

The necessary conditions

A tax deduction is a way to reduce the amount of tax a taxpayer would normally pay. There are many types of deduction rights in various situations, all of them are listed in Art. 171 Tax Code of the Russian Federation.

The right to deduction can only be used by an individual entrepreneur or an organization on OSNO, but not by others.

, four main conditions must be met to allow a deduction .

Submission of tax by the supplier. After the supplier sells goods or various services, he must add VAT to their cost; this amount is indicated in the sales documents. If there is no amount of value added tax in the papers, then it will be illegal . If after three months the amount of deductions is more than the amount of VAT, then the difference can be returned .

Purchased goods and services will be involved in transactions that are subject to VAT. If goods and services are not used in an area that is not subject to VAT, then a deduction is not possible .

If products were purchased for taxable transactions, and then they began to be used in non-taxable ones, then in this case the accepted deduction is canceled .

Different types of products must be taken into account. In Art. 172 of the Tax Code of the Russian Federation states the following: so that purchased works, goods, etc. were accepted for deduction, they must first be taken into account and documented. This should be done after the receipt of various goods, etc., during registration according to all accounting rules.

Correctly executed invoice. This is the most important condition for deduction; you need to fill it out correctly:

• UTD (universal transfer document), it must contain all the data on the invoice;
• advance, regular, adjustment invoice.

The deduction must be accepted in exactly the same amount as stated in the papers; if there is none, then, accordingly, there will be no deduction.

What are the tax deductions for VAT 2020?

Deductions can be roughly classified into general and special. General deductions are subject to basic rules that establish the very possibility of applying deductions. Since the main object of taxation under VAT is sales (both paid and not), the general deduction in this case will be the “input” tax on purchased goods, services, rights or the tax paid when importing goods. In the Tax Code of the Russian Federation, clause 2 of Art. is devoted to general deductions. 171.

All other deductions listed in paragraphs. 3–14 tbsp. 171 of the Tax Code of the Russian Federation are special, applied to specific situations. These include, for example, deductions:

• when returning goods;
• capital construction and construction works;
• on business trips;
• advances;
• when the price of a product changes, and others.

IMPORTANT! According to the Supreme Court of the Russian Federation, a taxpayer has the right to deduct VAT, even if it is presented by a tax evader (for example, a “simplified person”) or for a non-taxable transaction. See here for details.

We remind you that a complete list of possible VAT deductions and the procedure for their application can be found in paragraphs. 2–14 tbsp. 171 Tax Code of the Russian Federation. Now let's move on to a detailed consideration of the main conditions for applying deductions.

Also, about the procedure for applying deductions, read the article “Procedure for applying (accepting) tax deductions for VAT: conditions” .

The procedure for applying tax deductions

The procedure for applying tax deductions for VAT is discussed in Art. 172 of the Tax Code of the Russian Federation, which states that in order to deduct tax, in addition to invoices, in some cases, documents are needed confirming payment of VAT amounts withheld by tax agents, or other documents in the cases provided for in paragraphs. 3, 6–8 tbsp. 171 Tax Code of the Russian Federation. Let us separately dwell on the most common aspects of Art. 172 of the Tax Code of the Russian Federation.

According to paragraph 4 of Art. 172 of the Tax Code of the Russian Federation, deduction of tax amounts in case of return or refusal of goods (clause 5 of Article 171 of the Tax Code of the Russian Federation) is made in full after the corresponding adjustment operations are reflected in the accounting records, but no later than one year from the date of return or refusal.

VAT restored by the shareholder (participant, shareholder) on property received as a contribution to the authorized capital, in accordance with clause 11 of Art. 171 of the Tax Code of the Russian Federation is subject to deduction after the property is registered (clause 8 of Article 172 of the Tax Code of the Russian Federation).

In accordance with paragraph 10 of Art. 172 of the Tax Code of the Russian Federation, deduction of tax calculated by the buyer when there is an increase in the cost and/or volume of shipped goods, based on clause 13 of Art. 171 of the Tax Code of the Russian Federation is carried out using adjustment invoices if there is a document confirming the buyer’s consent to a change in cost or volume (contract, agreement or other primary basis).

Let us consider in more detail the conditions for deducting VAT from an advance payment (clause 12 of Article 172 of the Tax Code of the Russian Federation).

Condition 1: participation in taxable transactions

So, tax deductions for VAT can be used when the “input” VAT relates to those objects that are involved in transactions subject to this tax. Moreover, it does not matter how the acquired resources will be used - in production itself or indirectly. For example, purchased office furniture is not directly involved in any production cycle of the company, but it creates the necessary conditions for the work of its employees and is related to its taxable activities. In this case, you can also use VAT deduction.

Please note that the Tax Code of the Russian Federation does not link the possibility of applying a deduction with the moment the resources begin to be used in taxable transactions. That is, if we consider the example of production, the VAT deduction can be used immediately after the purchase of materials, and not when they are released into production. The same applies to expenses of future periods - VAT on them is immediately deductible in full.

Conditions for receiving

All conditions that must be met to receive a deduction are dictated by Article 171 of the Tax Code of the Russian Federation and imply the following:

• purchased products (performance of work, provision of services) must be purchased for the implementation of industrial activities or other operations that are subject to VAT, or for resale;
• all purchased products must be “registered”, that is, credited to the enterprise’s balance sheet;
• the company has all the documents certifying the right to receive the deduction. In the vast majority of cases, this is an invoice that was received from the direct supplier. At the same time, the VAT rate should be highlighted in a separate column both in payment documents and in primary documentation (invoices, certificate of completion of specific work or services provided, payment orders, etc.);
• VAT on products imported into the Russian Federation must be paid at customs control.

The above conditions are included in the general category. This means that in some situations, in order to accept VAT as a direct deduction, additional requirements must be fulfilled. And vice versa, accordingly, there are situations when it is not necessary to fulfill certain requirements.

IMPORTANT: Deductions for products that are subject to a 0% rate are carried out in a special manner.

Condition 2: acceptance for accounting

The next condition for applying the VAT tax deduction, which we will consider, is the need to accept goods, services, and accounting rights. The subtlety is that the Tax Code of the Russian Federation does not specify what kind of accounting we are talking about, and this sometimes creates problems due to differences in the interpretation of this concept by taxpayers and tax authorities.

Indeed, there are several types of accounting, for example accounting, warehouse, management, tax. Which of them should be preferred for the purpose of applying VAT deductions? The most reasonable thing that can be done in such a situation is to follow the procedure for registration, which is established in accounting legislation, namely in the Law “On Accounting” dated December 6, 2011 No. 402-FZ.

According to this document, the basis for recording any business transaction in accounting appears when there is a primary document for it. Thus, confirmation of the fact of registration of goods or services will be the presence of all the necessary primary information on them. Moreover, it then has legal force when all the necessary details are filled out and signatures are present. Tax authorities often use existing “defects” in primary documents to declare a VAT deduction illegal.

We also note that the Tax Code of the Russian Federation does not define any specific accounts on which “purchases” should be reflected. This also often causes disagreements with inspectors. For example, is it legal to take advantage of the deduction if the object is listed on accounts 07 or 08, or can it be applied only when the fixed asset moves to account 01?

You will find the answer to this question in our material How to claim VAT on fixed assets or equipment for deduction.”

Who will receive the benefit

Value added tax, like a number of other fiscal obligations, provides special relief for taxpayers.
In particular, the legislation provides not only preferential rates and tax-free transactions, but also VAT deductibility. To put it simply, what VAT deductible means is an opportunity to reduce the amount of fiscal burden in terms of value added collection. Not everyone will be able to take advantage of this privilege. In accordance with the Tax Code of the Russian Federation, reducing the amount of tax on VAT deductions in 2020 is allowed only to those entities that are payers of this tax. This means that only individual entrepreneurs and organizations that apply the OSN - the general taxation system - have the right to declare obligations for reduction.

For companies and merchants using special lenient tax regimes, the procedure for applying tax deductions for VAT is not provided, since “special regimes” (USN, PNS, UTII, Unified Agricultural Tax) do not pay value added tax. Of course, there are a number of operations during which companies or individual entrepreneurs using special regimes will have to pay VAT to the budget. But even such circumstances do not give subjects the right to take advantage of benefits.

Do you need a personal income tax deduction?

Instructions from ConsultantPlus will help you apply for it even for those who have no income. Get free access to properly prepare and submit documents.

Condition 3: availability of invoice

And the last necessary condition for accepting VAT as a deduction for a business transaction is that the taxpayer-buyer (and, since 2009, the tax agent) has an invoice for this transaction. Yes, not just any form, but filled out accurately and in accordance with the law. This rule is enshrined in paragraph 1 of Art. 169 of the Tax Code of the Russian Federation.

See also our article Made a mistake on the invoice - what and how to correct it .

Important! Hint from ConsultantPlus In some cases, VAT can be deducted without an invoice on the basis of other documents, for example:... (for more details, see K+).

Is it possible to claim a deduction based on a cash register receipt when purchasing goods at retail? Find out here .

And yet it cannot be denied that tax authorities are showing increased interest in invoices. This is not surprising: clause 2 of Art. 169 of the Tax Code of the Russian Federation states one very important feature. It is as follows: if the invoice is drawn up in violation of the rules set out in paragraphs. 5, 5.1 and 6 tbsp. 169 of the Tax Code of the Russian Federation, VAT deduction cannot be applied on them. If, contrary to this procedure, a company decides to deduct tax from incorrect invoices, the tax authorities will have every reason to refuse such a deduction.

For information about errors in filling out an invoice that do not entail a refusal to deduct VAT, see our material “What errors in filling out an invoice are not critical for deducting VAT .

Determination of deductions in the presence of both taxable and non-taxable VAT transactions

If an organization carries out both taxable and non-taxable VAT transactions, it must maintain separate accounting for VAT. The procedure for maintaining separate accounting must be prescribed in the Accounting Policy for tax accounting. Also read the article ⇒ “How to determine sales revenue for VAT distribution in 2020.”

Since there are 2 accounting methods, the company must choose one of them:

Option 1.

If the share of total expenses for the acquisition, production, sale of goods, works, services, and non-VAT-taxable transactions does not exceed 5% of the total share of expenses, then all VAT is deductible. If the share exceeds 5%, separate accounting is carried out according to option 2.

Option 2.

Input VAT is deductible in accordance with separate accounting, regardless of the share of expenses on non-VAT-taxable transactions in the company's total expenses.

The very distribution (division) of input VAT occurs based on the ratio of revenue from transactions subject to VAT to the total revenue of the company.

Example 3.

The company has prescribed the first option for separate VAT accounting.

Revenue for the quarter amounted to 10,000.00 for non-VAT-taxable transactions and 40,000.00 (excluding VAT) for VAT-taxable transactions. At the same time, expenses for non-taxable transactions are 2,000.00, total expenses are 20,000.00. Expenses are given without VAT. VAT in the amount of 3,600.00 – (20,000.00 * 18%) is accounted for in account 19. Determine VAT to be deducted.

Solution.

• First, we will determine whether we can deduct all input VAT, or whether separate accounting is necessary.

2,000.00 / 20,000.00 * 100% = 10%, i.e. exceeds the 5% barrier, which means that we cannot accept all VAT for deduction.

• We determine the share of VAT that we can deduct.

40,000.00 / (10,000.00 + 40,000.00) * 100% = 80% of the VAT recorded on account 19 can be deducted.

3,600.00 * 80% = 2,880.00 – accepted for deduction

3,600.00 – 2,880.00 = 720.00 – taken into account in expenses for ordinary activities.

Accounting entries for VAT deductions (based on Example 3)

table 2

Where:

19.1 “VAT on taxable transactions”;

19.2 “VAT on non-taxable transactions”;

19.3 “VAT on both taxable and non-taxable transactions.”

VAT deduction 2020: invoice requirements

What requirements does tax legislation impose on invoices in order to be able to accept VAT on them as an “input” when calculating tax and filling out a tax return? They must contain:

• number and date;

See: “VAT deduction: if the invoice is dated to the next quarter.”

• names, addresses, TIN of the supplier and buyer;
• names, addresses of the shipper and consignee;
• payment document number (if advance payments were made);
• a list of goods indicating units of measurement or a description of services;
• quantitative indicator of goods shipped or work performed;
• unit price excluding VAT;
• total cost excluding VAT;
• tax rate;
• the amount of VAT calculated at the specified rate;
• total cost including VAT;
• country of origin of goods, customs declaration number (if the goods are foreign-made).

The algorithm for filling out the current invoice form can be viewed in our video review, which we posted here.

The rule for signatures on the invoice: it must be endorsed by the head and chief accountant of the company (if this document is issued by an individual entrepreneur) or other authorized persons who have the appropriate permit. The electronic invoice is certified by the electronic signature of the manager or other employees authorized for this action.

Thus, upon receiving an invoice from a supplier, you must carefully analyze it to ensure that it is correctly filled out and complies with all tax law requirements. And if everything is in order, the deduction can be applied. If not, you should give the document to the supplier for rework.

Type of privilege

Article 171 of the Tax Code of the Russian Federation defines a closed list of transactions when VAT is accepted for deduction by the taxpayer in the current year. Benefits are provided for the following categories of transactions:

1. The taxpayer acquires goods, works, services, property rights for further use in activities. For example, purchasing materials for production or purchasing goods for their further resale. Including the purchase of fixed assets, intangible assets for operation.
2. The organization and individual entrepreneur calculated and paid value added tax independently. For example, when importing goods into the territory of the Russian Federation or when fulfilling the obligations of a tax agent.
3. Liabilities are calculated from advances received or issued against future deliveries of goods, works, and services. Please note that the opportunity to obtain a VAT deduction on advances received remains, even if the transaction does not take place.
4. Receiving property, property rights or intangible assets as a contribution (contribution) to the authorized capital of the organization.
5. The company carried out construction and installation work for its own needs.
6. A foreign organization has submitted tax for payment when purchasing electronic services from it.
7. Tax refund under the Tax Free system. This system allows you to return the paid tax on goods purchased abroad and imported into the territory of the Russian Federation. Please note that the list of goods and the amount of return are determined for each foreign country individually.

IMPORTANT!

Take into account all the above points, otherwise there will be nothing left but to write off the VAT that is not accepted for deduction: the tax authorities will refuse the benefit, and these amounts cannot be attributed to expenses that reduce the taxable base.

Is there a right to deduction on a facsimile invoice?

There are often situations when invoices are endorsed by the top officials of the company not in person, but by facsimile, especially if the organization is large and it is not always possible for managers to promptly sign documents. Is it possible to take a VAT tax deduction on such a document? In most cases, tax and judicial practice shows that no. And that's why.

A facsimile (translated from Latin as “to make like”) is a cliché that accurately reproduces a handwritten signature by photographing or printing. As we have already found out, the Tax Code of the Russian Federation obliges the main or authorized persons of the company to affix their signatures on the invoices issued by it. The possibility of using a facsimile is provided for in clause 2 of Art. 160 of the Civil Code, but it can only be used in cases permitted by law.

So, judges and tax authorities believe that since the Tax Code of the Russian Federation does not contain any indication of the possibility of using facsimiles when endorsing invoices, then this cannot be done. In addition, the Law “On Accounting” obliges all accounting documents to be certified with personal signatures, and not in any other way. Thus, when submitting a “fax” invoice, there is a high probability of denial of VAT deduction.

For information about other ways a signature can be applied, read the article “Can facsimiles be used on invoices?” .

Deduction for invoices issued by the company on the simplified tax system

The simplified taxation system generally provides for the exemption of organizations from VAT - the obligation to pay it arises only in some specific situations. Since the company does not pay VAT, it should not issue an invoice. Thus, the deduction of VAT on invoices issued by simplifiers is illegal. The Ministry of Finance has repeatedly expressed this opinion in its letters (No. 03-07-11/56700 of October 5, 2015, No. 03-07-11/126 of May 16, 2011, No. 03-07-11/456 of November 29, 2010).

But the courts for the most part do not support this position. The right of organizations that are not recognized as VAT payers to enter into legal relations for its payment was confirmed by the Constitutional Court (Resolution of the Constitutional Court of the Russian Federation dated June 3, 2014 No. 17-P). Based on paragraph 5 of Article 173 of the Tax Code of the Russian Federation, having issued an invoice with VAT, the company must pay this tax to the budget. In this case, according to paragraph 1 of Article 169 of the Tax Code of the Russian Federation, its counterparty has a basis for applying a deduction.

VAT deduction on advance invoices

Submitting VAT for deduction is an operation that requires strict evidence. The buyer receives the right to deduct VAT only if he has an invoice that is correct in all respects. If you made an advance payment to your supplier, he must also issue you an advance invoice. The possibility of such a deduction is provided for in clause 9 of Art. 172 of the Tax Code of the Russian Federation. But in order for the buyer to take advantage of the “advance” deduction, he must have:

• correctly executed advance invoice;
• documents confirming the fact of transfer of the advance;
• the corresponding agreement, which contains the conditions for prepayment.

Please note: if a non-cash form of payment is used, the buyer will not be able to apply a VAT deduction, since in this case there will be no confirming payment document for the prepayment. In addition, invoices that are received for prepayment amounts - full or partial, with non-cash payment options cannot be registered in the purchase book, but the total amount of VAT deductible is transferred to the tax return from it.

See also: “Acceptance for deduction of VAT on advances received.”

Invoices for which deductions are not carried forward

Taxpayers have the right to transfer VAT deductions to other reporting periods. The allowable period is three years. Amounts can be carried forward to any quarter; it is not necessary to deduct VAT for the next tax period that follows.

The company can claim credit within three years after the goods or work were registered. It follows from this that invoices for purchased products can be entered into the purchase books not only in the quarter when the right to a refund is granted, but also somewhat later. According to the Tax Code, a period of three years must be counted from the date on which the goods were accepted for registration.

The company purchasing OS has the right to defer the return of funds. At the same time, a partial application for an invoice for fixed assets, equipment and intangible assets is a big risk. Once the asset is accepted, accounting must be complete. Refunds for entertainment expenses may be submitted on the date of establishing the report on advances.

The supplier may accept a tax refund on the price of goods that have been returned to customers. An application for such a return can be made within a year after the product is returned. If the buyer has accepted the goods for registration, then upon return he must issue an invoice to the supplier. If this document is available, the supplier declares a refund of the amount from the return price.

In some cases, the refund cannot be transferred. For example, if a deduction is claimed for travel expenses, for construction and installation work for one’s own consumption, for goods sold for export, the transfer is not allowed.

Results

VAT deduction is the amount of tax billed by the seller, by which the taxpayer has the right to reduce the amount of calculated VAT payable. But in order to claim input VAT for deduction, it is important to take into account all the conditions prescribed by the Tax Code: register goods, use them in VAT-taxable activities and present correctly completed documents. Tax authorities pay special attention to checking input invoices, because if there are errors in these documents, VAT will be excluded from the amounts to be reimbursed.

Find out what is the safe percentage of VAT deductions in your region.

Sources: Tax Code of the Russian Federation

You can find more complete information on the topic in ConsultantPlus. Full and free access to the system for 2 days.

Safe deduction amount

A qualified accountant should know one more formula to determine the safe amount of deduction. This formula determines the share of deductions for the year.

Important!

A high share of deductions for value added tax is such a volume of deductions that for one calendar year is equal to or more than 89% of the total amount of accrued VAT. It is logical to assume that the safe share of tax deductions does not exceed 88%.

It makes sense to note that the tax authorities proposed those same 89% back in 2008 ( ) and until now there have been no innovations.

In the constituent entities of the Russian Federation, the situation is different - regional inspectorates have the right to establish other criteria for the safe share of VAT deductions.