VAT limit. How to calculate the safe share of VAT deductions
All conditions for deducting VAT were met in the 1st quarter of 2016, but there were no sales of products, and accordingly there is no accrued VAT.
Ant LLC is located at OSNO and is engaged in wholesale purchase and sale. In February 2016, the company received a large batch of goods for sale in the amount of 1,180,000 rubles (including VAT of 180,000 rubles). The goods are registered, there is an invoice from the seller with the allocated amount of VAT. In the 1st quarter, Ant LLC was unable to sell goods and there were no other transactions subject to VAT. Therefore, the deduction of “input” VAT in the amount of 180,000 rubles. can be postponed to the second quarter of 2016.
In May 2016, the LLC shipped goods worth 1,534,000 rubles, including VAT of 234 thousand rubles. In the 2nd quarter of 20216, VAT on goods capitalized in February 2016 was accepted for deduction.
The following entries were made in accounting:
In the 1st quarter of 2016:
- D-t 41 K-t 60 1000 000 rub. (goods are capitalized);
- D-t 19 K-t 60 180 000 rub. (VAT on goods is included)
In the 2nd quarter of 2016:
- D-t 62 K-t 90 sub-account “Revenue” 1,534,000 rub. (goods sold to buyer);
- D-t 90 sub-account “VAT” K-t 68 Sub-account “Calculations for VAT” 234,000 rub. (VAT is charged on proceeds from the sale of goods);
- Dt 90 subaccount “Cost” Kt 41 1000 000 rub. (cost of goods sold is written off);
- Dt 68 subaccount “Calculations for VAT” Kt 19 180,000 rub. (accepted for deduction of VAT on goods capitalized in the 1st quarter.
In the VAT return for the 2nd quarter of 2016, the tax was payable in the amount of 54,000 rubles. (234000 – 180000).
If an organization had deducted VAT on goods purchased in the 1st quarter, it would have had to wait a long time for this tax to be refunded from the budget: 3 months of a desk tax audit, which is not known how it could end.
By moving the VAT deduction from the 1st quarter to the 2nd, the organization got rid of the VAT refund procedure from the budget in the 1st quarter of 2016 and, accordingly, from the close attention of the tax inspectorate in the form of an in-depth desk audit.
Almost everyone has come across the abbreviation VAT. This is a value added tax that is levied on producers of various goods. More precisely, the tax is paid by the buyers themselves: a percentage of VAT is included in the cost of the finished product.
Safe VAT deduction in 2017 is certainly an important topic for any entrepreneur. Having understood this issue, you can pay the minimum amount of tax within the framework established by the Tax Code. A deduction is the amount of money by which the amount of tax can be reduced.
VAT deduction is carried out in the presence of an invoice - an accounting document, the absence of which will entail a refusal to consider the request. The invoice is issued not by the taxpayer himself, but by the counterparties with whom he cooperates.
Understanding all the intricacies of VAT is not so easy: even an accounting employee who knows his job may experience some difficulties in the tax “intricacies”. This is because VAT is regulated by a huge number of regulatory documents. This material will help you successfully understand the intricacies of taxation.
VAT rates and deductions
There are three VAT rates in total:
- 18% is the maximum rate, which applies to most objects;
- 10% is the rate levied on children's and food products;
- 0% - the rate for companies engaged in exporting products (documentary confirmation is required that is provided to the tax office).
To calculate the amount of VAT, the total amount of revenue is taken, but the determining factor is the added value, discussed below in the example of toothpaste (at each stage of the purchase of materials, production and sale of products, the supplier, manufacturer and trader pay only their “added” value).
VAT is paid on products, work and services, respectively, deductions are the amounts of “input” VAT. The seller, having sold a batch of his products, deducts the VAT of the production enterprise and the VAT of the supplier of raw materials. Consequently, VAT is paid on the seller's proceeds.
Determination of VAT amounts
It is best to understand the principles of VAT calculation using a clear example (in this case, the production and sale of toothpaste is considered). The raw material supplier provides the pasta manufacturer with the necessary raw materials and materials. He, in turn, takes care of selling the final product to the trading company. The price of toothpaste is determined by the cost of raw materials, production and transportation costs, the planned percentage of the enterprise’s income and VAT, which the manufacturer added to its part of the cost.
Presumably, the purchase of raw materials cost 118 rubles. (taking into account the VAT rate of 18%, which equals 18 rubles). The manufacturer sold the toothpaste to a trading company for 236 rubles. (18% rate is 36 rubles). A trading company sells pasta for 302 rubles. (at the same VAT rate is 46 rubles). Since the supplier of raw materials was the first to pay VAT in the amount of 18 rubles, the manufacturer takes this into account and pays not 36 rubles, but 18 rubles. (36-18=18). The selling company will pay instead of 46 rubles. the resulting difference from previous VAT (46-36=10 rubles).
Safe share of VAT deductions
Thanks to VAT deductions, taxpayers can save significantly on cash payments. Typically, exceeding the safe deduction threshold by more than 89% may result in interest from the Federal Tax Service of the Russian Federation. But the statement of 89% is not entirely true, because each region of Russia has its own safe share of deductions.
With the help of recommended deductions, you can avoid attracting undue attention from the tax inspectorate; the main thing is not to go above the established limits. If the amount of deductions is higher than average, there is a risk of getting caught. Sufficiently high values are analyzed by the inspectorate, and this will certainly alert the tax office.
In order to avoid possible troubles in the future, it is necessary to reduce the share to average values, and transfer deductions to a more favorable time. The Code allows for the transfer of deductions for up to three years.
Calculation of the safe share of VAT deductions
For example, for the Moscow region, the safe VAT deduction is 90.4%. To simplify calculations, there is an amount of 8,000 rubles, the VAT of which is 1,220 rubles. (8000/1.18*0.18 = 1220). The regulated percentage of 90.4% is multiplied by the VAT amount of 1220 rubles. (1220*90.4% = 1103). The amount is 1103 rubles. and there is a tax deduction, and the company must pay 117 rubles. (1220-1103 = 117), which amount to 9.6% of the additional value tax.
The VAT tax period is quarterly, so it is necessary to calculate deductions on the basis of a declaration for 12 months (i.e. for 4 quarters).
When VAT deductions are not accepted
An increase in the safe share of deductions entails an increase in the total amount of VAT that the taxpayer must pay. There are several cases where the payer cannot reimburse the amount:
- an early application for a deduction will cause the tax office to withdraw it (if the invoice corresponds to an earlier date than the deduction itself);
- if the company handed over a copy of the invoice instead of the original document (it may be that the court will consider such a violation a formality, because it can be easily eliminated by providing the original);
- Tax officials will not be able to accept a refund if the deduction is postponed to a later date (this is easy to correct - you need to clarify the data in the declaration).
It is possible that the deduction of the total amount of VAT was accepted incorrectly. In this case, it is necessary to issue an accounting certificate, which notes information about the error and indicates the reporting tax period, or use special accounting entries.
Even if everything is in order with VAT deductions, you should not relax. The reason for the visit of the tax authorities may be the profitability of production, the tax burden, comparison of wages with the statistical average, minimum indicators, etc.
Companies may claim more VAT deductions than in the previous period. The national average increased by 0.4%. However, in some regions the share of deductions, on the contrary, decreased. Therefore, before submitting your VAT return, check the safe percentage of deductions for the 4th quarter of 2018 in your region.
In this article:
Tax authorities have already published information with safe indicators as of November 1, 2018. It’s worth checking the deductions with the tax authorities’ data when you prepare your VAT return for the 4th quarter of 2018. The inspection will ask for clarification and may call for a commission if the company’s deductions are higher than in the region.
Tax officials said that for a risk-based approach to audits, the share of deductions is one of the key indicators of the “danger” of an organization. Suspicion is raised by organizations that deviate from the general indicator by more than 5 percent.
In addition to a high percentage of deductions, inspectors may also ask for clarification if the level is low. According to tax officials, if an organization has no deductions at all or they are minimal, then this will also raise questions, and the company will be asked to provide explanations.
The average safe share of VAT deductions for the 4th quarter of 2018 is 86.9%
Safe share of VAT deductions for the 4th quarter of 2018 by region
Experts from the UNP newspaper calculated which threshold it is undesirable for organizations in each region to exceed.
In the table below, see the safe share of deductions for the VAT return for the 4th quarter of 2018 by region.
| Regions of the Russian Federation |
3rd quarter 2018 |
4th quarter 2018 |
| REPUBLIC | ||
| Adygea | 85,7 | 85,7 |
| Altai | 90,7 | 90,1 |
| Bashkortostan | 87,6 | 88,1 |
| Buryatia | 88,2 | 88,9 |
| Dagestan | 86,1 | 85,6 |
| Ingushenie | 93,3 | 96,2 |
| Kabardino-Balkaria | 93,4 | 93,4 |
| Kalmykia | 80,1 | 82 |
| Karachay-Cherkessia | 93 | 91,8 |
| Karelia | 84 | 83,5 |
| Komi | 79,3 | 78,6 |
| Crimea | 88 | 87,8 |
| Mari El | 89 | 90,1 |
| Mordovia | 90 | 90,1 |
| Sakha (Yakutia) | 86,6 | 86,1 |
| North Ossetia Alania | 86,4 | 86,6 |
| Tatarstan | 87,9 | 87,9 |
| Tyva | 75,5 | 76,9 |
| Udmurtia | 80,1 | 81,1 |
| Khakassia | 89,9 | 89,8 |
| Chechnya | 101,1 | 100,8 |
| Chuvashia | 83,3 | 83,7 |
| THE EDGES | ||
| Altaic | 90 | 90,4 |
| Zabaikalsky | 90,1 | 89,6 |
| Kamchatsky | 89,2 | 90 |
| Krasnodar | 89,6 | 89,9 |
| Krasnoyarsk | 75,1 | 76,4 |
| Permian | 78,9 | 79,3 |
| Seaside | 95,1 | 95,7 |
| Stavropol | 88,5 | 88,8 |
| Khabarovsk | 89,1 | 89,6 |
| AREAS | ||
| Amurskaya | 113,9 | 116,7 |
| Arkhangelskaya | 82,6 | 82,1 |
| Astrakhan | 61,1 | 62,8 |
| Belgorodskaya | 88,5 | 89,2 |
| Bryansk | 86,7 | 87,9 |
| Vladimirskaya | 84,9 | 85,5 |
| Volgogradskaya | 85,7 | 86,4 |
| Vologda | 83,2 | 88,1 |
| Voronezh | 92,5 | 92,7 |
| Ivanovskaya | 92,5 | 92,5 |
| Irkutsk | 77,8 | 77,4 |
| Kaliningradskaya | 64,1 | 62,9 |
| Kaluzhskaya | 87,3 | 88,1 |
| Kemerovo | 82,8 | 83,6 |
| Kirovskaya | 86,7 | 86,7 |
| Kostromskaya | 84,7 | 85,4 |
| Kurganskaya | 87 | 87,1 |
| Kursk | 92,9 | 91,3 |
| Leningradskaya | 81,3 | 81,6 |
| Lipetskaya | 87,7 | 92,9 |
| Magadan | 99,9 | 98,8 |
| Moscow | 90,4 | 90,3 |
| Murmansk | 78,9 | 81,3 |
| Nizhny Novgorod | 88 | 88,3 |
| Novgorodskaya | 86,9 | 89,9 |
| Novosibirsk | 89,2 | 89,5 |
| Omsk | 82,9 | 84 |
| Orenburgskaya | 69,7 | 70 |
| Orlovskaya | 94 | 94,6 |
| Penza | 90,3 | 90,8 |
| Pskovskaya | 88,2 | 87,3 |
| Rostovskaya | 91,7 | 92 |
| Ryazan | 85 | 84,9 |
| Samara | 83,8 | 84,3 |
| Saratovskaya | 85,1 | 84,9 |
| Sakhalinskaya | 97,6 | 98,6 |
| Sverdlovskaya | 87,1 | 88,1 |
| Smolenskaya | 93,2 | 94,2 |
| Tambovskaya | 95,7 | 95,3 |
| Tverskaya | 88,7 | 88,6 |
| Tomsk | 74,1 | 75,6 |
| Tula | 91,5 | 92,7 |
| Tyumen | 83,4 | 84,1 |
| Ulyanovskaya | 91,6 | 91,8 |
| Chelyabinsk | 86,8 | 88,4 |
| Yaroslavskaya | 86,5 | 87,2 |
| FEDERAL CITIES | ||
| Moscow | 88,2 | 88,4 |
| Saint Petersburg | 89,9 | 90,1 |
| Sevastopol | 82,1 | 82,1 |
| AUTONOMOUS REGION | ||
| Jewish | 92,4 | 96,2 |
| AUTONOMOUS DISTRICTS | ||
| Nenets | 119,8 | 121,1 |
| Khanty-Mansiysk - Yugra | 60,1 | 58,4 |
| Chukotka | 103,3 | 105,6 |
| Yamalo-Nenets | 64,9 | 69,4 |
The indicator varies from region to region. In the Khanty-Mansi Autonomous Okrug, for example, the lowest share is 58.4%. And in the Nenets Autonomous Okrug this figure is 121.1%, that is, companies received more tax from the budget than they paid.
"UNP" clarified with regional departments how important it is for them to exceed the regional indicator. In some inspectorates, tax officials are calm about the fact that the figure turned out to be higher than the norm. Inspectors believe that one indicator cannot be used for all companies. Each one must be treated individually. If the rest of the company does not raise any questions, then there is no need to worry. This position is taken, for example, by tax officials in Penza.
In addition to the regional indicator, inspectors pay attention to the indicator established by the Federal Tax Service in order No. MM-3-06/333@ dated May 30, 2007. According to this document, the share of VAT deductions from the amount of accrued tax should not exceed 89 percent. Inspectors adhere to these recommendations.
In the regions they say that if the indicator is more than 89 percent, the company should wait for an inspection. Especially if the organization reimburses the tax. Let the organization be otherwise conscientious and not arouse suspicion.
Reasons why a company may lose VAT deductions
A company may lose deductions even if it has formally complied with all the requirements of the code. The Federal Tax Service explained why auditors will demand to pay more tax.
Check the supplier's counterparties, the company's revenue and the share of VAT deductions. Otherwise, there is a risk of losing them. The controllers of the two regions told what to take into account in the reporting in order to avoid additional charges and on-site audits by tax authorities.
High VAT deductions
Do not exceed the regional indicator for the safe share of VAT deductions for the 4th quarter of 2018 if you do not want the attention of the Federal Tax Service. It is even safer not to declare more than 89 percent. This limit was established by the Federal Tax Service in order No. MM-3-06/333@ dated May 30, 2007. If you show more, auditors may ask for more clarification.
Inspectors compare the company's performance with previous periods. For example, auditors will suspect a scheme if the share in the 4th quarter became sharply higher than the figure for the 3rd quarter.
But high tax rates do not automatically mean that the company received an unjustified tax benefit. For example, for an organization with a seasonal nature of work in one of the quarters, deductions may be significantly higher.
Supplier deals with fly-by-night deals
The company risks deductions if its suppliers conducted shell deals. At the same time, the auditors will remove them, even if they find one-day ones in the third or fourth link of the chain. This was confirmed by the regional Federal Tax Service. Moreover, the tax authorities came up with
Advice from UNP
Collect a dossier on the counterparty before the transaction. To do this, you can use the service from UNP
Using the service, you can obtain an electronic dossier and an expert opinion on the contractor, make sure that he has the necessary licenses, that the company is not classified as bankrupt, etc. Such information indicates caution when choosing partners.
Companies can insure themselves against tax risks if the counterparty works with fly-by-night companies. Ask him to write a letter of guarantee that he carefully selects business partners. A sample is available in the electronic version of the UNP newspaper. Then the company will be able to recover losses from the supplier if additional taxes are assessed.
Inspectors do not have the right to withdraw deductions just because the supplier’s counterparty is a one-day company. The auditors must prove that the transaction is unrealistic (Clause 1, Article 54.1 of the Tax Code). If a deal was concluded for the sake of profit, and the delivery was carried out by the counterparty himself, the auditors do not have the right to remove expenses. But often the reality of the transaction is proven only in court (resolution of the Arbitration Court of the North-Western District dated September 27, 2017 No. F07-9158/2017).
Low revenue
Tax authorities will try to remove deductions if the company has low revenue or did not have taxable transactions. But in the Tax Code there is no such restriction. Therefore, an organization has the right to declare value added tax as a deduction, even if it had no revenue (letter of the Ministry of Finance dated November 19, 2012 No. 03-07-15/148).
If a company submits a tax return for refund, be prepared to submit a large number of papers to the Federal Tax Service. If you are ready for inspection requests and can confirm your right to deductions, you should not refuse them.
How not to exceed the safe share of VAT deductions for the 4th quarter of 2018: recommendations
To keep within the safe share, you can exclude questionable deductions. Tax officials told UNP when they should not be reported.
Controllers do not recommend deducting tax on a cash receipt with VAT allocated. During verification they are refused if there is only a receipt, but no invoice (letter of the Ministry of Finance dated January 12, 2018 No. 03-07-09/634). The only exception is for travel and entertainment expenses.
Tax officials are suspicious of transactions with suppliers in special regimes. You can deduct tax on transactions with such counterparties, but only under two conditions:
- The supplier must issue a VAT invoice. If the counterparty has drawn up a document marked “without VAT”, the tax authorities will not accept the deduction.
- If the seller has issued an invoice with tax, then he must pay the tax (clause 5 of Article 173 of the Tax Code). In this case, a deduction can be claimed. But first, you should make sure that the counterparty has transferred VAT. To do this, you should ask him for a copy of the payment slip.
It is safer for the company to transfer part of the deductions, if in the 4th quarter it had no revenue or it was minimal. Inspectors believe that deductions without revenue are a sign of a scheme. In this case, the company will be asked for clarification or may come with an inspection. If you don’t want to communicate closely with tax authorities, then it’s enough to transfer some of the deductions to other tax periods.
The Tax Code does not consider large deductions a violation. The company is not required to comply with the safe share. If you are sure that you can confirm them, you do not need to transfer deductions. If inspectors have questions, provide contracts, acts, and explanations.
A tax deduction for VAT is the amount of input tax by which the taxpayer has the right to reduce the amount of VAT calculated for payment. The procedure for providing such a deduction is regulated by Art. 171 Tax Code of the Russian Federation.
There are a number of conditions, if not met, tax cannot be deducted:
- Purchased resources for which a deduction was claimed must be used in the future in VAT transactions;
- VAT is confirmed by a correctly completed invoice.
Input VAT is accounted for on account 19.
Safe share of VAT deductions
According to the letter of the Federal Tax Service dated July 17, 2003 N AS-4-2/12722 “On the work of tax authorities’ commissions on the legalization of the tax base,” tax officials will call to the commission if, over the course of several quarters, the taxpayer has claimed more than 89% of the outgoing tax for deduction. 89% is the baseline safe share of deductions That is, if a company has declared a VAT deduction higher than the level expected by tax authorities, then inspectors will pay closer attention to it.
The share of VAT deductions is a tool with which tax authorities determine which taxpayer to check first.
Companies have the right to decide for themselves whether to take this indicator into account or not. Since there are no tax sanctions for exceeding this norm.
An example of calculating the share of VAT deductions with transactions
The Omega LLC company purchased inventory and materials for resale in the amount of RUB 575,300. (including input VAT RUB 87,757.63). The goods were sold for the amount of 690,360 rubles. (including output VAT of RUB 105,309.15). RUB 17,551.52 due. The table below shows the transactions for receiving inventory items and accounting for VAT.
| Debit | Credit | Amount, rub. | Content |
| 41 | 60 | 487 542,37 | Inventory received |
| 19 | 60 | 87 757,63 | Input VAT taken into account |
| 68 | 19 | 87 757,63 | VAT is accepted for deduction |
| 62 | 90 | 690 360 | Inventory sold to buyer |
| 90 | 68 | 105 309,15 | Output VAT |
83.3% of the calculated tax amount was claimed for deduction (87,757.63 ÷ 105,309.15 ×100). That is, the tax authorities have no reason to check the VAT in this case.
BSafe share of VAT deductions in the regions
In addition to the general figure of 89% in the Russian Federation, tax authorities calculate the claimed share of deductions in the context of each individual subject of the Russian Federation. For this, data on the amount of calculated tax and the amount of declared VAT for deduction are summarized in a single report 1-VAT based on declarations submitted in a specific region. Based on this form you can calculate safe share of deductions in the region of interest independently. The formula used for this is:
Дв = Нв ÷ Нр × 100, where
Дв – % of deductions;
Nv – tax claimed for deduction;
Нр – sales tax.
As of 02/01/2016, it is necessary to focus on the values indicated in the table (click to expand)
| Region | Share of deductions, % |
|
| 1 | Adygea | 91,2 |
| 2 | Altai | 93,1 |
| 3 | Altai region | 89,4 |
| 4 | Amur region | 88,6 |
| 5 | Arkhangelsk region | 91,1 |
| 6 | Astrakhan region | 79,5 |
| 7 | Bashkortostan | 90,6 |
| 8 | Belgorod region | 93,6 |
| 9 | Bryansk region | 91,2 |
| 10 | Buryatia | 83,7 |
| 11 | Vladimir region | 84,1 |
| 12 | Volgograd region | 87,8 |
| 13 | Vologda region | 87,2 |
| 14 | Voronezh region | 95,4 |
| 15 | Dagestan | 85,7 |
| 16 | Jewish AO | 94,9 |
| 17 | Transbaikal region | 99 |
| 18 | Ivanovo region | 93 |
| 19 | Ingushetia | 92,9 |
| 20 | Irkutsk region | 87,7 |
| 21 | Kabardino-Balkarian river. | 95,2 |
| 22 | Kaliningrad region | 66,9 |
| 23 | Kalmykia | 127,1 |
| 24 | Kaluga region | 89 |
| 25 | Kamchatka region | 82,6 |
| 26 | Karachay-Cherkesskaya r. | 92,8 |
| 27 | Karelia | 84,7 |
| 28 | Kemerovo region | 86,2 |
| 29 | Kirov region | 88,2 |
| 30 | Komi | 75,9 |
| 31 | Kostroma region | 88,1 |
| 32 | Krasnodar region | 90,1 |
| 33 | Krasnoyarsk region | 80,9 |
| 34 | Kurgan region | 83,4 |
| 35 | Kursk region | 89,5 |
| 36 | Leningrad region | 80,1 |
| 37 | Lipetsk region | 92,2 |
| 38 | Magadan region | 76 |
| 39 | Mari El | 88,1 |
| 40 | Mordovia | 90,4 |
| 41 | Moscow | 90,4 |
| 42 | Moscow region | 90,4 |
| 43 | Murmansk region | 79 |
| 44 | Nenets Autonomous Okrug | 148 |
| 45 | Nizhny Novgorod region | 89,1 |
| 46 | Novgorod region | 86,6 |
| 47 | Novosibirsk region | 91,3 |
| 48 | Omsk region | 86,5 |
| 49 | Orenburg region | 82 |
| 50 | Oryol region | 92,8 |
| 51 | Penza region | 90,1 |
| 52 | Perm region | 85,2 |
| 53 | Primorsky region | 93,2 |
| 54 | Pskov region | 91 |
| 55 | Rostov region | 89,8 |
| 56 | Ryazan region | 87,1 |
| 57 | Samara region | 88,3 |
| 58 | Saint Petersburg | 91,4 |
| 59 | Saratov region | 88,8 |
| 60 | Sakha (Yakutia) | 78,8 |
| 61 | Sakhalin region | 90,3 |
| 62 | Sverdlovsk region | 88,1 |
| 63 | North Ossetia Alania | 90,5 |
| 64 | Smolensk region | 90,7 |
| 65 | Stavropol region | 93,6 |
| 66 | Tambov region | 94,5 |
| 67 | Tatarstan | 91,7 |
| 68 | Tverskaya ob. | 89,9 |
| 69 | Tomsk region | 83,6 |
| 70 | Tula region | 91,5 |
| 71 | Tyva | 88,2 |
| 72 | Tyumen region | 90,1 |
| 73 | Udmurtskaya r. | 87,7 |
| 74 | Ulyanovsk region | 92,2 |
| 75 | Khabarovsk region | 89,6 |
| 76 | Khakassia | 90,6 |
| 77 | Khanty-Mansiysk-Yugra Autonomous Okrug | 69,3 |
| 78 | Chelyabinsk region | 89,4 |
| 79 | Chechenskaya r. | 100,2 |
| 80 | Chuvashskaya r. | 84,9 |
| 81 | Chukotka Autonomous Okrug | 76,7 |
| 82 | Yamalo-Nenets Autonomous Okrug | 82,4 |
| 83 | Yaroslavl region | 87,2 |
| 84 | Sevastopol | 86,8 |
| 85 | Simferopol | 84,5 |
As can be seen from the table, in some constituent entities of the Russian Federation (Nenets Autonomous Okrug or the Republic of Kalmykia), tax authorities will be loyal even to VAT reimbursement from the budget.
For example, the company is located in the Oryol region. During the tax period, 354,000 rubles were collected. input VAT and 387,000 rubles. – outgoing. The share of deductions is 91.47%. The indicator exceeds the general norm for the Russian Federation, but inspectors will not call for a commission, since at the subject level the norm is set at 92.2%.
If there is a lot of input VAT and it exceeds the recommended values, 2 options are possible:
- Leave your actual data and wait for a call to the commission;
- Transfer part of the deductions to later periods.
In the first case, an explanatory letter may be attached to the declaration indicating the reasons for exceeding the permissible percentage of the deduction share.
If the organization has chosen method 2, then deductions can be transferred to later tax periods, but no more than 3 years from the date of capitalization of inventory items. Taxpayers have this right since January 1, 2015, and it is regulated by paragraph 1.1 of Art. 172 of the Tax Code of the Russian Federation. The tax is claimed for deduction in the tax period when the company decided to actually declare it. In this case, the incoming invoice is recorded in the purchase book for this particular quarter.
However, there are exceptions to this rule. The tax must be deducted at one time if:
- subsequent sale of assets is taxed at a rate of 0% ( Letter from the Federal Tax Service of Russia dated April 13, 2016 N SD-4-3/6497@);
- OS objects, equipment for installation or intangible assets are purchased ( Letter of the Ministry of Finance of Russia dated 04/09/2015 N 03-07-11/20293);
- advances have been paid to suppliers or invoices have been received from tax agents ( Letter of the Ministry of Finance of the Russian Federation dated 04/09/2015 N 03-07-11/20290). ⊕
Let's look at an example.
An example of calculating the safe share of VAT deductions
The company Lik LLC is located in the Vladimir region. On September 29, 2015, a batch of goods and materials was purchased for resale in the amount of RUB 468,557. (including VAT RUB 71,322.25). The cost of delivery services was 45,000 rubles. (including VAT RUB 6,864.41). During the 3rd quarter, 338,754.23 rubles were collected. input VAT and RUB 420,305.07. – outgoing. Before submitting the VAT return, the chief accountant calculated the share of the deduction, which amounted to 99.19% ((338,754.23 + 71,322.25 + 6,864.41) ÷ 420,305.07 × 100). The company's management decided not to declare input VAT for the last batch of goods, so as not to fall into the tax authorities’ audit plan.
Postings
| date | Debit | Credit | Amount, rub. | |
| 29.09.2015 | 41 | 60 | 397 234,75 | The goods have been accepted for registration |
| 19 | 60 | 71 322,25 | Input VAT taken into account | |
| 44 | 76 | 38 135,59 | Accepted costs for delivery of goods and materials | |
| 19 | 76 | 6 864,41 | Input VAT taken into account | |
| 68 | 19 | 6 864,41 | VAT on delivery is deductible | |
| 01.10.2015 | 68 | 19 | 71 322,25 | VAT on the consignment of goods and materials is presented for deduction |
SALT for the 19th account for the 3rd quarter of 2015 will look like this: (click to expand)
| Period transactions | Final balance | |||
| date | Debit | Credit | Debit | Credit |
| 338 754,23 | 338 754,23 | |||
| 29.09.2015 | 71 322,25 | 71 322,25 | ||
| 29.09. 2015 | 6 864,41 | 6 864,41 | ||
| Total | 416 940,89 | 345 618,64 | 71 322,25 |
The deduction share in this case is 82.23% (345,618.64 ÷ 420,305.07 × 100). The indicator is lower than the basic standard established in Russia at 89%, but remains at a safe level, since in the Vladimir region the permissible limit is 84.1%.
Summary
Companies are not required to take into account deduction rates. But financial services executives should be aware that by claiming a deduction greater than the norm, the risk of audit increases significantly. Since inspectors of the Federal Tax Service use this data as a criterion for selecting companies - candidates for inspection. And if there is no way to explain the reasons for deviations from regional norms, you can “run into” an on-site inspection. A safe share of VAT deductions is a guarantee of reduced attention from tax authorities.
INTERVIEW
Interviewed by L.A. Elina,
leading expert
Safe share of VAT deductions
Advisor to the State Civil Service of the Russian Federation, 2nd class
- Alevtina Yuryevna, in 2007, one of the criteria for selecting VAT payers for an on-site inspection was a high proportion of deductions from the amount of calculated VAT for the previous 12 months. This indicator was set at 89%Appendix No. 2 to the Order of the Federal Tax Service dated May 30, 2007 No. MM-3-06/333@. What is the current average share of VAT deductions for taxpayers who do not deal with the export of goods abroad?
As of January 1, 2018, the average share of VAT deductions in Russia is 88.06%. In addition, the average share of VAT deductions can be determined for each region. It may be either lower or higher than the national average deduction rate.
The Federal Tax Service does not provide taxpayers with information about safe percentages of deductions. Obviously, they can be calculated based on some information posted on the Federal Tax Service website?
Yes, you can check the current size of the average share of deductions using the 1-VAT report.
The official information of the 1-VAT report is presented in the tables: website of the Federal Tax Service of Russia → Other functions of the Federal Tax Service of Russia → Statistics and analytics → Data on statistical tax reporting forms.
The tax service publishes this report in two forms - consolidated and broken down by constituent entities of the Russian Federation.
Basically, a company can calculate the safe share of VAT deductions using the following formula:
That is, when determining the safe share of deductions for those who are not engaged in export operations, only operations taxed at the tax rates provided for in paragraphs are taken into account. 2-4 tbsp. 164 Tax Code of the Russian Federation.
For example, in accordance with the information reflected in the regional report 1-VAT, posted on the website of the Federal Tax Service of Russia, the safe share of VAT deduction in Moscow as of 01/01/2018 is 88.9% (RUB 12,742,673,812 / 14,159,263 499 rub. x 100%).
Exceeding the safe share of VAT deductions is only one of the criteria for assessing tax risks.
- Is there a gradation of the safe share of deductions by industry - construction, manufacturing, trade, etc.?
The tax service does not currently publish publicly available data on the share of deductions by industry. However, if the share of VAT deductions for a particular taxpayer differs significantly from the average, when conducting a desk audit, the inspector can take into account the industry-specific feature that affected tax deductions.
The taxpayer may also refer in his explanations to the industry specific features of his activities.
- As we understand, the share of deductions is determined for 12 months. Which 1-VAT report should you focus on when determining the share of safe deductions based on the results of the first quarter of 2018?
How can an organization that has no export operations determine whether the percentage of VAT deductions it claims in its return corresponds to a safe value? Which declaration lines should be used for calculation?
The share of VAT deductions is determined as follows:
The resulting share of deductions must be compared with the average (safe) share of deductions in the region.
If the share of VAT deductions for an organization is higher than the safe share for the region, then inspectors may be interested in it. What actions can they take: request clarification, call a commission, schedule an on-site inspection?
Exceeding the safe share of VAT deductions is just one of the criteria for assessing tax risks used by inspectorates when selecting taxpayers for on-site audits. Such an excess in itself does not mean automatic inclusion in the inspection plan. However, if there are other alarming criteria, the tax authority may decide to schedule an on-site audit.
However, for the same reason, companies that are trying to avoid unnecessary control from the tax authorities by adjusting deductions to the required amount must understand that indicating deductions that are obviously below the safe value cannot guarantee a lack of attention from tax inspectors.
Let me also remind you that tax authorities have the right to:
call taxpayers to give explanations by sending a written notice to this effect e subp. 4 paragraphs 1 art. 31 Tax Code of the Russian Federation. Both the head of the organization and its representative, who has the appropriate power of attorney, can appear to give explanations to the inspectorate. b clause 1 art. 26, paragraph 1, art. 27, paragraph 1, art. 29 Tax Code of the Russian Federation;
send the taxpayer a request for explanations. Accordingly, you need to be prepared to present them. There should be no claims from inspectors if the taxpayer can show that he is calculating tax liabilities in accordance with the law, and this is confirmed by the documents he has.