The preparation of tax reports and subsequently its submission is a very serious and difficult matter. A special position among the statements is occupied by the value-added tax return (VAT) , since it is provided for in any transaction for the acquisition or sale of goods - material assets. Organizations with large turnover each month draw up a lot of invoices, in which, in addition to everything else, VAT is calculated. It is not surprising that in such a number of calculations a miscalculation can be made, therefore, knowledge of the rules and the procedure for their correction is of great importance. If a tax return has already been filed and the calculation error was found after, then it is impossible to correct it in the document itself. In this case, an updated declaration on value added tax (UD) should be submitted additionally.
How to file an updated declaration
If a miscalculation is identified that has affected the total amount, it is required to prepare a corrective / updated tax return on value added. It does not display previously submitted correct information, in the new document only the discrepancy of information is indicated. If the error led to the understatement of the tax, at the moment when the taxpayer filed and paid the increased rate, then the declarant independently decides whether he will form a new document with the changes, or leave it as it is.
After filing a clarifying VAT return, you should be ready to check the tax office. The payer can be called to the department of the Federal Tax Service, or the inspector will personally come to check the documentation. If suddenly as a result a discrepancy of data is revealed, then this threatens with significant amounts of penalties, the amount of which depends on the type of activity.
The form of the declaration changes from time to time, according to the new legislation, since 2015, the updated declaration is only issued in electronic form, paper carriers are gone.
What is required to submit a clarification declaration
To submit UD required:
- Have a digital signature key.
- Install the necessary software on the computer.
- Install crypto pro.
- Install crypto arm.
Step-by-step instruction
- Create a qualifying declaration.
- Archive it using crypto arm.
- Put an electronic digital signature.
- Send the file to the tax office.
- Wait for a response on acceptance of the declaration by e-mail.
In what cases is UD filed?
The formation of a revised declaration is provided for by the Tax Code of the Russian Federation, the rule applies not only to value added tax, but also to other types for which reports are submitted to the bodies of the Federal Tax Service. This type of tax report is submitted in several cases:
- With a self-identified error in a previously filed declaration, which led to an understated amount for tax. For example, an invoice with errors was accepted for VAT deduction, which became an obstacle in the calculation.
- A request was received from the tax inspectorate to provide them with clarifications on the declaration or to submit an updated income statement. If the taxpayer agrees with the identified inaccuracies, then the UD is required to be submitted before the expiration of the five-day period. If you disagree with the errors within the same time period, you must provide the tax service with an explanatory note. For failure to meet the requirements of the Federal Tax Service authorities within the specified time period, the organization will be fined 5 thousand rubles, for a secondary violation during the calendar year, the amount will be 20 thousand rubles.
- The goods were shipped for export, but the documentation package confirming the interest-free rate was not collected within the time period established by law. In this case, an updated income tax return is submitted for the period in which the exported goods were shipped (services rendered and work performed at a rate of 0%).
Whoever identified the error, the taxpayer or a tax inspector, for example, during a desk audit, does not matter. The rules for making corrections to the accounting documentation are set out in PBU 22 \ 2010, and in accordance with the Tax Code, article No. 81, the submission of an update declaration is provided for the reporting period of time to which the identified inaccuracy belongs.
Not sure what an electronic revised declaration looks like? A sample can be seen below.
Possible reasons
As mentioned above, the reason for submitting UD may be the mistake of the financial department employee in the calculations. Some accountants submit a clarifying declaration if the amount during the financial audit has been changed, both up and down. Doing this is not worth it, since the Tax Code has an article that says that UD is served only when an error is independently detected.
The results of the audit are recorded and remain with the employees of the tax inspectorate, who, in turn, independently reflect the new information in the card of the personal account of the taxpayer, and when the accountant submits an update declaration, the data is doubled.
When you do not need to file an UD
An updated income statement is not filed in several cases:
- When issuing or receiving an adjustment invoice.
- If the tax service according to the results of the audit additionally charged VAT.
- When the errors found in the declaration do not affect the amount of VAT payable or entail overpayment. In this case, the submission of an updated declaration is not an obligation, but if desired, the taxpayer can submit it.
How to correct VAT deficiencies
The methodology for making adjustments to the calculation of value added taxes is described in detail in article No. 54 of the Tax Code of the Russian Federation in the first paragraph. In accordance with this, when an error for the last quarter was noticed in the current reporting period, only the results of the period in which it was made should be recounted. If it is impossible to establish the moment when an error was formed, then the situation can be corrected in the current report. Most often, errors in calculating value added tax are allowed in the following cases:
- When issuing an invoice.
- At the time of making a mark on purchases and sales.
- In the process of displaying in tax accounting business transactions.
- When filling out the tax report itself.
The easiest way to correct mistakes made when filling out the declaration itself is more difficult to amend certain tax calculation on the invoice. At the initial stage, the changes are recorded in the document, then amendments are made to the accounting information and the report itself. When calculating the tax on an accrual basis, a qualifying declaration is submitted for all the reporting time periods from the moment the error is detected.
Filing a declaration
If an error was identified after the declaration was submitted for the current reporting period, but before the deadline for submitting the reporting itself and / or paying taxes, in this case, punishment in the form of penalties is not provided. At the same time, when an updated VAT declaration is submitted for the elapsed time, a mistake is made in the amount of tax, then a fine and penalty are inevitable. In accordance with the Tax Code, submission of VAT documentation is carried out before the 25th day of the month following the end of the reporting period. Value added tax is paid in equal amounts every month until the 25th day.
A clarifying declaration must be submitted in the form valid at the time that should be corrected, for example, if the declaration is submitted for the period preceding January 1, 2014, then it can be issued in paper form. If the error is not related to the amount of VAT, then there will be no penalties. However, those who recalculate the increase tax for past periods will incur a liability of 20% of the amount unpaid on time. In some cases, tax officials may not hold the payer accountable:
- When he independently discovered an inaccuracy.
- If after the transfer of the declaration a check was carried out that did not find an error.
An updated tax return is filed in the same way as a tax return on the same form. To indicate the purpose of the document, that is, eliminate the error, on the cover page, in the line “correction number”, you must indicate the number 1. A cover letter should be attached to the document asking the payer to accept the document by the territorial body of the Federal Tax Service, as well as indicating the essence of corrections and a list of related papers. According to the Tax Code of the Russian Federation, a cover letter is not required, but most branches require it.
Transmittal letter
In addition to a clarifying declaration, tax authorities require a document that must contain the following information:
- The name of the tax for which the UD is issued, in this case, the VAT should be indicated.
- The reporting and tax period of time for which recalculation is performed.
- Grounds for submitting a document.
- Modified indicators, only new values are required.
- Lines of the document to be changed.
- Details of payment documents for which the missing taxes were transferred.
- Signature of authorized person (general director or chief accountant).
- A copy of the payment order confirming payment of tax and penalties.
When conducting a desk audit, employees of the Federal Tax Service Inspectorate may request primary documentation for which an error was established.
Since 2017, an explanatory note to the amended declaration on value added tax can be submitted exclusively in electronic form in the established format.
Nuances of submitting UD and consequences
When submitting a clarifying declaration, you should know some nuances:
- Situations are quite common when a taxpayer changes his legal address, which entails a change in the tax service branch. If subsequently an error is detected in the reporting that was made even before the address was changed, then the considered declaration is still submitted to the territorial body of the Federal Tax Service at the new place of registration.
- If inconsistencies in the calculation of VAT were identified after the reorganization of the enterprise, then the updated tax return is also submitted to the territorial body of the Federal Tax Service at the place of registration of the legal entity formed after the changes.
- It should be borne in mind that the submission by the taxpayer of UD always generates the interest of the tax service. If a clarifying declaration is generated for the closed tax period, then a desk or on-site check of accruals is almost inevitable. In this regard, many employees of the financial department try to avoid submitting UD, hoping that the tax will not find an error before the statute of limitations.
About the deadlines for submitting an updated declaration
The terms for providing UD and liability are regulated by the Tax Code of the Russian Federation, paragraphs 2–4, article No. 81:
- When an updated 3-NDFL declaration is submitted before the end of the period that is determined for the initial declaration, it is customary to equate the filing in accordance with the established deadlines.
- If you provide a “clarification” after the end of the period for submitting the initial declaration, but before the deadline for tax payment, the taxpayer will not be fined. In this case, the basic condition must be met: the submission of the declaration must be made before it becomes known that the FTS employees have discovered an error or initiated an on-site inspection.
- When submitting UD after the expiration of all deadlines, both the filing of the initial declaration and the payment of tax, the taxpayer will not be held liable if, in addition to the above conditions, two more are met.
The accrued interest and arrears were paid before the updated personal income tax return was submitted.
An on-site audit of the tax service did not confirm the fact of error and the provision of false information, after which an updated declaration was submitted.
Regarding the desk audit of the initial declaration, within the framework of which the UD was filed, its termination may follow when a “clarification” is provided until a tax understatement is detected.
In order to avoid misunderstandings, an updated tax return should be submitted as self-disclosure of inconsistencies in the statements.
Filing a revised declaration
The revised tax return must contain:
- Sections that were filled in the initial declaration, even if they did not reveal errors.
- Sections that you did not fill out earlier, but should have done it. For example, a taxpayer is a tax agent, but did not calculate agent VAT in the initial declaration, therefore, when correcting this inaccuracy, one more section should be included in the UD.
- Appendix No. 1 to the 8th section, if an additional sheet of the purchase book was filled out for the period for which the “clarification” is drawn up.
- Appendix No. 1 to Section 9, if an additional sheet of the purchase book was filled out for the period for which the DD is drawn up.
Filling out an updated declaration
How to fill out this document, it is very important to know, as this is another form in which only reliable indicators are entered, not presented earlier.
On the title page there is a column “Adjustment No.”, which is required. Sections 8-12 need to be completed only when clarification is made in Appendix No. 001. When making amendments to the sales or purchases book after the end of the reporting period, it is necessary to fill out Appendix No. 1 to sections 8, 9.
Signs of relevance
An equally important parameter is a sign of relevance, these fields are filled with numbers 0 or 1.
- 0 is a digit indicating that previously information in sections 8 and 9 was not presented or old information was replaced.
- 1 - the figure is set when the data indicated earlier in the declaration are truthful and relevant.
A sign of relevance is needed so that the payer does not duplicate information. If a lot of errors were found in the declaration, you can put 0 in all sections, after which the information will be completely unloaded.
Consider how to fill out a qualifying declaration with an increased amount. In the case when the UD is formed in order to increase the amount of tax, before submitting the document, payment should be made. If this is not done, the employees of the Federal Tax Service will impose a fine due to delay. A clarifying declaration is filed the day after the debt is closed.
Amount reduction
If the taxpayer forms a UD in order to reduce the amount, this leads to a desk audit by tax officials or a field audit is appointed.
If as a result it turns out that the taxpayer should be left, the necessary amount will be transferred to his account, however, for such an operation he must write a statement to the Federal Tax Service.
The procedure for submitting UD in 2017
How do we submit an updated VAT return? Is there a deadline? In 2015, payers were required to submit documents to the tax service in electronic form. In accordance with article No. 174 of the Tax Code of the Russian Federation, clause 5, all declarations executed on paper are deemed not to be submitted. The same rules apply to the qualifying declaration, therefore, this year they are issued exclusively in electronic format, and what is required for this is described at the beginning of the article.
As for the specific deadlines for submitting the “clarification”, they are not. It is better to hand it over immediately after the inconsistencies in the calculations were independently identified, do not forget that the detection of errors by the Federal Tax Service leads to penalties.
Each taxpayer decides whether to submit a clarifying declaration or not, but do not forget about the possible consequences. Therefore, the best option in this case is to carefully check all the calculations and the declaration itself before handing it over to exclude the appearance of errors as such.