Indirect taxes: types, payment, declaration

The state budget is a set of means by which the state apparatus of the country is formed from taxes, which can be either direct (assigned to the citizens of the country) or indirect (assigned to the citizens of the country through an intermediary - entrepreneur).

The need to divide taxes into two categories: direct and indirect, is related to their classification by the method of collection. The existing tax system in our country combines the possibility of using both direct and indirect options. In this case, direct taxes are levied directly on the income (property) received. They are determined by the percentage and basis for the calculation. Indirect taxes impose on goods and services sold. The one who sells goods and services (the entrepreneur) includes them in the price of the product, and then, having received income from the sale, returns this share to the state in the form of this fee.

It turns out that the tax category under study is paid at the expense of the buyer of the product, and the seller is only an intermediary between the end user and the state. However, the demand for timeliness and indirect charges comes from the manufacturer. These taxes are associated with the consumption of products and services.

The concept

The tax category under study includes those that are set in the form of a surcharge on the cost of goods (products).

Indirect taxes are such for the reason that they are not levied on the manufacturer, but on the final purchaser of the product. They allow you to significantly replenish the state budget. They are actively used in relation to products of mass demand.

General properties

The fact that VAT and excise taxes belong to one category is determined by the following points:

• The ability to influence the growth or decline in the production of goods.
• It is a factor in regulating the price of goods.
• Affects population income.
• Budget revenue generation.

The differences between direct and indirect

The table below contains information on the differences between the two categories of taxes.

VAT: specifications

The main types of indirect taxes include:

• value added tax (VAT);
• excise taxes.

In recent years, VAT provides approximately 30-35% of the total budget revenue in our country. VAT refers to the federal level. The main feature is that this tax is not taxed on the entire cost of production, but only its added part, which occurs at different stages of production.

Most of the goods in our country are subject to VAT. However, the following types of products and services do not belong to this category:

• medical supplies;
• patient care services;
• preschool education services;
• food in school and medical canteens;
• archiving services;
• transportation of passengers in a city (settlement);
• funeral services, etc.

In more detail this list is presented in paragraph 3 of Art. 149 of the Tax Code.

If the company works with products (services), which are both taxed and not taxed, then accounting is done separately. Separate accounting is also applicable at various VAT rates. Possible rates: 0, 10 and 18%.

The 0% rate is considered preferential and applicable for various export operations, for international transportation, in the space industry, in the transportation of gas and oil, etc.

The 10% rate is applicable for the following product groups:

• a number of products (sugar, salt, bread, flour, etc.);
• childen's goods;
• medical purpose;
• print and periodicals;
• transportation by plane;
• purchase of livestock for breeding, etc.

Other products not included in these lists are sold at a rate of 18%. If the company received income below 2,000,000 rubles for the quarter, then it has the right to apply to the authorities for an exemption from VAT.

VAT has its advantages and disadvantages in the process of use.

The main advantages of VAT:

• the possibility of deducting input VAT;
• developed network of partnerships with those who are a major VAT payer in the country.

The main disadvantages:

• significant amounts are paid by enterprises;
• frequent inspections by tax authorities.

Excise

Indirect taxes include excise taxes.

Initially, this collection was supposed to tax only goods for which the demand negatively affects the health of customers (for example, alcohol and tobacco). With the help of excise taxes, the state aims to reduce the consumption of these goods. A separate category is luxury goods, which are also subject to excise taxes.

To date, the list of goods subject to excise taxes is impressive:

• alcohol products;
• tobacco products;
• Cars;
• motorcycles;
• gasoline and diesel;
• engine oils;
• kerosene for aircraft in the form of fuel;
• natural gas;
• fuel for stoves.

Excise tax rates are specified in Art. 193 of the Tax Code. Today, such rates are determined until 2020. Excise taxes are calculated according to the tax base and rate for each product. The total amount is calculated at the end of the month.

Among the main advantages of excise tax can be identified:

• the moment of tax payment coincides with the moment of sale of goods;
• tax evasion is quite difficult;
• the amount of tax is transferred even in the absence of profit.

VAT calculation methodology

Indirect taxes with calculation examples (VAT) are presented below.

VAT = NB * S / 100,

where the NB is the tax base, i.e.

C is the rate,%.

The calculation of VAT also means that you need to highlight the tax, which is laid down in the total amount. We use the formulas:

VAT = C / 1.18 * 0.18 - at a rate of 18%,

VAT = C / 1.1 * 0.1 - at a rate of 10%.

where C is the amount that includes VAT, i.e.

An example of calculating VAT is presented below.

Take the company LLC “Orion”. It sells a batch of products in the amount of 50 thousand units at a price of 100 rubles. The used rate is 18%. Tax is not included in the price. Calculation Method:

• determine the cost of the party excluding VAT:

100 * 50,000 = 5,000,000 rubles;

• determine the VAT:

5,000,000 * 18/100 = 900,000 rubles;

• determine the amount with VAT:

5,000,000 + 900,000 = 5,900,000 rubles .;

• another option for calculating the total amount:

5,000,000 * 1.18 = 5,900,000 rubles.

In documents, the accountant indicates the values:

• cost without VAT - 5,000,000 rubles;
• VAT 18% - 900,000 rubles;
• cost including VAT - 5,900,000 rubles.

Excise Calculation Example

There are several formulas for calculating this tax:

• application of fixed rates:

A = B * CA,

where B is the amount of revenue on excisable goods, units

CA - excise rate, rubles.

• application of interest rates (ad valorem):

A = St * SAK / 100%,

where St is the value of excisable goods sold, t.

Sak - excise rate in% of the value of the goods;

• combined bets:

A = B * CA + St * Sac / 100%.

Income tax and indirect taxes

Direct taxes relate to property and income that are owned by the taxpayer. Taxes such as direct ones replenish the country's budget in a substantial way. However, there is one drawback: it is possible to conceal part of the calculation base, including taxes. This state of affairs leads to the destabilization of the country's financial system.

Income taxes and indirect taxes have a certain degree of correlation. While the studied category of fees is formed on the basis of the premium on the cost of goods or services. Sellers include a portion of such taxes in goods sold. Then they give it to the state. This share is not attributable to company profits and is not taxed on profits.

Importation and taxation

Importing goods and paying indirect taxes is an option for calculating and paying to the country whose customs authority releases the goods.

• When importing goods from countries not participating in the Customs Union, this tax must be paid in the Russian Federation.
• And when importing from the EAEU countries, the tax must be transferred to the country where the owner of the goods is registered. The EAEU includes such countries as Belarus, the Russian Federation, Kazakhstan, Kyrgyzstan, Armenia.

Payment Procedure

The procedure for paying indirect taxes implies the responsibility of the declarant, that is, the buyer.

The following points must be taken into account:

• availability of exemption from VAT;
• applicable customs procedure for the importation of valuables;
• VAT rate;
• calculation formula for tax.

Defined cases of exemption from VAT. In Art. 150 of the Tax Code of the Russian Federation there is a list of goods for the import of which you do not have to pay VAT.

The procedure for paying indirect taxes also depends on the customs procedure under which the goods for import are subject.

The customs procedure is influenced by the goals of the release of goods in the Russian Federation, which is reflected in the table below.

Reports are submitted on indirect taxes to the local IFTS, where the buyer is registered.

It is necessary to determine the VAT on the day of acceptance of the goods for accounting according to the accompanying documentation. If the amounts are indicated in foreign currency, then they are converted into rubles at the current exchange rate of the Central Bank of the Russian Federation.

The tax is payable by the 20th day of the month that follows the month of arrival of the goods. Together with the payment, some of the documents are prepared:

• VAT tax return;
• statement of indirect taxes;
• Bank statement;
• transportation documentation;
• contract from the supplier;
• other things.

Declaration

The deadlines for submitting an indirect tax return are specified in paragraph 20 of the Treaty on the Eurasian Economic Union of 05.29.2014.

This protocol states that the declaration must be submitted before the 20th day of the month following the reporting one. The reporting month is:

• month of arrival of imported goods;
• the month in which it is necessary to make a lease payment in accordance with the terms of the contract.

In addition to the declaration, taxpayers must provide a number of documents.

The indirect tax return consists of a standard cover page and three sections.

The first of these includes VAT data on imported goods. Sections 2 and 3 contain information on excise taxes; they are filled out only if necessary. That is, if the company does not pay excise taxes, then it is only necessary to transfer the cover page and the first section.

The same section contains the amount of VAT payable. In this case, all VAT is divided depending on the type of product. To reflect the total amount of tax allocated page 030.

The second section contains information on all excisable goods, with the exception of alcohol products. Excises are recorded by type of excisable goods. In this section, for each type of product, information about the country from which the product is delivered is given.

The third section contains information about alcohol.

Payment Documentation

An application for the import and payment of indirect taxes is an important documentation for:

• goods processed by importers from the EAEU countries;
• certificates of the fact of the import of goods into the Russian Federation from the territory of the state party in the EAEU and payment of taxes;
• providing tax authorities simultaneously with the declaration of taxes and other relevant documents.

The main purpose of the application is to confirm the fact of payment of these taxes and the exchange of this information with the tax authorities of the country from which the goods were imported.

The application contains three sections and one appendix:

• In the first section, information is entered by the buyer or intermediary (if, according to the laws of the state into whose territory goods are imported, these persons pay indirect taxes).
• The second section is designed to place a record of registration of an application with the tax authority.
• The third section is not always filled out - only in certain cases listed in the fourth paragraph of the rules for filling out an application for indirect taxes.

Conclusion

In the case of indirect taxation, the seller of the goods or services becomes an agent of monetary relations, acting as an intermediary between the state and the payer (end-user of the product).

Indirect taxes are characterized by the ease of collection and payment to the budget. Since these taxes are included in the price of goods and services, they are invisible and psychologically easier for payers.

The advantages of these taxes are mainly related to their role in the formation of the budget revenue item.