The object of taxation is a list of certain legal facts that determine the obligation of a business entity to pay tax for the implementation of the sale of goods. Also, the importation of goods into Russian territory, the possession of property in personal possession, the receipt of an inheritance and simply income is subject to a taxable object.
The current Tax Code of the Russian Federation defines the concept of “object of taxation” as operations related to the
sale of goods, property, as well as income, profit or any other object that can be estimated in value, quantity and physical terms. With the availability of these criteria, tax legislation also stipulates the occurrence of obligations to pay taxes.
However, this definition cannot be recognized as clear only in connection with the availability of the value of the goods sold. The corresponding obligation can arise only during actual implementation, and their cost is the basis for determining the basis for taxation.
It should be noted that each individual tax has its own taxation object, which is regulated by part 2 of this Code.
As property, the current tax legislation implies certain objects of civil rights that can be attributed to property pursuant to the Civil Code of the Russian Federation.
The object of VAT taxation is regulated by Art. 146 of the Tax Code of the Russian Federation, it is based on such elements:
- The sale on the Russian territory of goods, services and works. This also includes the transfer of property rights. At the same time, it should be understood as transfer of ownership of goods on a reimbursable basis, as well as the results of work performed by one person to another, or onerous provision of certain services (Clause 1, Article 39 of the Tax Code of the Russian Federation).
- Implementation in the form of sale of collateral and transfer of goods in accordance with the concluded agreement on the provision of innovations.
It must be taken into account that the object of taxation includes the transfer in Russia of goods for use in their own needs and only if the costs associated with the acquisition of these goods are not taken into account when taxing profits.
When considering tax issues, we should not forget about the application of a
simplified system. When applying “simplified” in the form of an object of taxation can be used:
- income;
- income that is reduced by expenses.
The most effective for a business entity is the object of taxation “income minus costs”, since the use of such a system will allow to take into account the costs incurred by the payer. However, it must be remembered that only expenses included in the special list, which is constantly expanding, are taken into account.
The tax rate when accounting for income minus expenses is 15%. When using income as an object, a single tax is paid at 6%. Therefore, the payer has the right to determine for himself which taxation principle is beneficial to him.