In the early 90's. of the last century, market reforms began in the Russian Federation. Transformed underwent all areas of economic activity of society. Special attention was paid to tax relations. One of the first mandatory contributions that were put into practice was VAT.
Value
The introduction of VAT from January 1, 1992 made it possible to ensure an equal approach to the participation in the process of budgeting of all business entities, regardless of their organizational and legal types and forms of ownership. This was due to the solution of such key tasks as:
- Orientation to harmonization of taxation systems of European countries.
- Providing a permanent source of budget revenue.
- Systematization of revenues.
Functions
Today, VAT is considered one of the key federal taxes. The basis for its collection comes value added. It is formed at all stages of the manufacture and circulation of products / work / services. VAT traditionally belongs to the category of indirect universal taxes. In the form of specific additives, they are charged by including them in the cost of manufactured goods. Thus, part of the tax is transferred to the end user. VAT, acting as the most significant indirect tax, performs 2 complementary functions:
- Regulatory.
- Fiscal.
The latter (considered the main one) consists in mobilizing significant revenues from deductions to the budget revenue item. This is achieved due to the ease of retention and stability of the base. The regulatory function, in turn, is expressed in stimulating production accumulation and tightening quality control and terms of product promotion.
How to determine if an organization is a VAT payer?
The subjects of taxation are all enterprises, regardless of:
- type of their activity;
- departmental affiliation;
- forms of ownership;
- legal form;
- headcount, etc.
VAT payers are legal entities that carry out production and other economic activities and on which, according to the law, are assigned a corresponding obligation. The taxation system applies to companies formed in accordance with regulatory acts of foreign countries, if they operate in the territory of the Russian Federation. Individual entrepreneurs are also VAT payers if their activities are related to the sale of works, products, services subject to value added tax. The subjects include enterprises with foreign investment engaged in production or other commercial work in Russia. The registration of VAT payers in the latter case is carried out at the location of the permanent missions in the Russian Federation.
Customs legislation
VAT payers are entities that import goods into the territory of Russia. In particular, the obligation to make the deduction rests with the declarant or other person determined in accordance with the Customs Code. Tax is levied either at the time or before the declaration is accepted. In the case of gratuitous transfer of products, services, work, the supplier is a VAT payer.
PBUL
From January 1, 2001, an individual entrepreneur is a VAT payer. However, for such entities certain conditions are established. The calculation of tax for enterprises providing transport services is carried out depending on the nature of these transportations. For railway transfers, VAT payers are railway departments and production associations. At the same time, auxiliary subsidiary units that are not related to transportation activities enter as independent entities burdened with tax. If air transport is involved, then the obligation to make deductions rests with airlines, combined squadrons, airports, aviation technical bases, etc. As for road transport, VAT payers are motor vehicle associations and manufacturing enterprises.
Additionally
Ports, shipping companies, emergency rescue units, basin departments and other associations of river and sea transport are VAT payers when they sell services related to transportation on water routes. In the event that supply, wholesale, procurement enterprises carry out sales through intermediaries, the duty on the deduction of value added tax is imposed on both attorneys or commission agents, and on principals or committees.
Important point
In accordance with paragraph 1 of Art. 143 of the Tax Code, the subjects of taxation are:
- Organization.
- Persons who import goods into the customs territory of the Russian Federation.
- Individual entrepreneurs.
The letter of the Ministry of Finance No. 03-07-11 / 66 contains an indication that the autonomous institution is obliged to issue an invoice when renting the premises, including the tax on additional capital. This means that a non-profit organization is a VAT payer. Moreover, in paragraphs 2 and 3 of this article of the Tax Code, these associations are not included in the list of those that can be exempted from taxation.
Exceptions
The legislation contains a list that includes individuals and organizations that are not VAT payers. These include such enterprises whose revenue for the previous three calendar months, which went in succession, during the sale of works, products, services, as well as property rights, excluding tax, did not exceed 2 million rubles. It should be borne in mind that this exemption does not apply to entities selling excisable goods for the above period. This provision also does not apply to persons who import products into the customs zone of the Russian Federation.
Documents for tax exemption
Entities that claim to be exempted from the obligation to make deductions must provide the relevant documents and a written notice to the tax service at the place of registration. The package of papers includes extracts from:
- Books of accounting of expenses / incomes and business transactions (for PBUL).
- Balance sheet (for legal entities).
- Sales books.
In addition, copies of the journals of issued and received invoices must be presented.
The timing
The taxpayer shall be relieved of his duties by the authorized service for 12 calendar months in succession. At the end of this period no later than the 20th day of the following month, entities that have not paid VAT will have to submit a written statement to the supervisory authority. Attached are documents certifying that throughout the entire period of exemption from the tax burden, the amount of profit from the sale of services, products, property rights or work without taking into account the fee did not exceed 2 million rubles for every 3 consecutive months. Within ten days, the submitted information is checked by the tax service.
Responsibility
Based on the results of the audit, the control service may confirm or not confirm the legality of the release of the payer from duty. In addition, the authorized authority may extend the period of non-deduction or refuse the applicant this. In the event that the fact of exceeding the above amount of proceeds for the period of release is revealed, the entity loses the right to benefit. Thus, an individual or company is a VAT payer from the first day of the month in which the violation is established, until the deadline for deduction. Along with this, the amount of penalties and tax sanctions will be collected from the subject.
Registry
How to find out if a subject is a VAT payer? A special state registry was formed to streamline the information. It contains information about all persons burdened by the tax in question. Determining whether an entity is a VAT payer has thus become much easier. It should be noted that several registries have been introduced since the adoption of the Tax Code. This was due to the need to systematize all the information received in the control authorities. For its storage, various bases were formed. However, the most important of all sources is the state registry. It contains all the necessary information about the entities on which the obligation to pay tax lies:
- Registration Information.
- Information on the formation and reorganization of the enterprise.
- Information about ever made changes to the registry.
- Documents that were submitted by an economic entity to the relevant authorities.
Base functions
As mentioned above, the formation of the base was due to the need to systematize information. Data from the registry may be required in different situations. For example, to find out if an entity is a VAT payer. But as a rule, an enterprise does not have such a question. The registry is usually contacted by tax officials during inspections. Also, information from the database is used in the implementation of the accounting audit. Also, if necessary, from the database at the request of authorized structures are transmitted:
- Information on the presence or absence of certain information.
- Documents that were submitted by the company during registration.
- Various extracts.
The order of inclusion of the subject in the register
From the above it follows that VAT payers are almost all enterprises engaged in the production or sale of products in the country to generate income. At the legislative level, a special protocol was approved, according to which the subject is included in the register. Its observance is mandatory. Registration of entities is carried out at the Federal Tax Inspectorate. For registration, you must provide the necessary package of documents. Papers should be executed in accordance with the requirements of the law. Only those enterprises that are recognized as VAT payers are subject to registration in the register.
Features of the procedure
Entering the register is carried out in the following order:
- A corresponding application is submitted to the territorial office of the Federal Tax Service. It is compiled in the form approved by the Government Decree.
- The required package of papers is attached to the application, in which all the necessary information about the subject is present.
- All documents must be sent / submitted personally to the authorized body no later than 10 days before the start of the next tax period.
Documents for registration in the registry
The following should be attached to the application:
- A receipt that a state duty has been paid. Without it, documents will not be considered by a specialized body.
- A paper confirming the fact of formation of an enterprise that falls under any of the categories of VAT payers.
- A document indicating the status of a company operating in Russia (for legal entities that are of foreign origin).
- In the case of the transition of the enterprise from general to a special simplified taxation regime, the original application is presented.
After reviewing the submitted documents and checking the information present in them, the tax inspectorate takes a positive decision on including the subject in the state register. From this moment, the registered person becomes an official VAT payer.