VAT transactions - is it so difficult

Value added tax is a serious article for an accountant working in the main taxation regime. Perhaps, only two taxes cause a huge amount of tax disputes - income tax and VAT. If the land, transport, excise taxes, tax for the use of subsoil must be paid by enterprises operating in certain types of activities or having certain types of property, these two taxes - profit and VAT - must be paid by all commercial organizations based on basic taxation, regardless of the form property, available property or type of activity. All accounting entries for accounting for VAT accrual and refund are one of the most important and sometimes time-consuming responsibilities of an accountant on an independent balance sheet. Large organizations often carry out a separate staffing unit to conduct these operations.

In which cases we charge VAT

Consider the most common cases when there is a need to charge VAT to pay to the budget:

• sale of goods, work, services;
• advance payment from the customer;
• VAT recovery in connection with the sale of a previously acquired fixed asset (regardless of whether it depreciated or not);
• accrual of VAT on the cost of construction work performed on their own.

And now we will consider each case separately and immediately indicate which VAT transactions will be in one case or another. I will not give subaccounts on some accounts, because different enterprises may have different ones.

Realization of goods, work, services

Any commercial enterprise uses this operation in its activity, because without realizing the implementation of works, services or goods, it is impossible to get the most important result of activity - profit. The VAT transactions during the implementation will be as follows:

• D62 - K90.01 - sold goods, work, service;
• D90 - K68.02 - accrued VAT to the budget. It is considered by multiplying the amount of sales by 18%.

Advance payment from the customer

As you know, when receiving funds earlier than the date of the provision of any services, performing various works or selling goods, the seller must accrue from the advance payment the amount of VAT due deduction to the budget. In this case, the postings should be as follows:

• D51 or 50.01 - K62 - received money from the customer to the current account;
• D76AV - K68.02 - VAT is charged to the budget from the amount of the advance payment. It is considered in this case according to the formula 18% / 118%. That is, the amount of the advance must be multiplied by 18 and divided by 118, or vice versa - first divide and then multiply.

VAT recovery in connection with the sale of a previously acquired fixed asset (regardless of whether it depreciated or not)

According to Part 2 of the Tax Code of the Russian Federation, the sale of previously purchased fixed assets is considered income that is subject to VAT. Moreover, in this case, VAT recovery should be done both by enterprises in the general mode and in the simplified taxation system in the "income minus expenses" mode. After all, they also once upon the acquisition of fixed assets on the basis of an invoice issued by the seller accepted this VAT as an expense that reduces the tax base for a single tax. The accounting entries for VAT are as follows:

• D91.02 - K01 - reflects the operation to write off fixed assets at historical cost;
• D02 - K91.01 - the depreciation amount accrued under this operating system is written off;
• D76 - K91.01 - accrued revenue from the sale of fixed assets;
• D91 - K68.02 - VAT is charged for payment to the budget.

Calculation of VAT on the cost of self-constructed construction work

When carrying out construction work for their own needs on their own (the so-called economic support), enterprises are required to charge VAT on the entire cost of construction and installation works. In this case, tax is charged at a rate of 18%. The postings are as follows:

• D19 - K68.02 - VAT is charged for payment to the budget.

But value added tax is not only necessary to pay to the budget. It can also be reimbursed - that is, to reduce the amount payable to the budget by the amount already paid to the supplier of works, goods, services or fixed assets. In addition, VAT is refunded when the advance payment received from the customer is set off when the work, goods, services are sold to him. In addition, you can reimburse the previously paid VAT on the amount of construction work carried out by the economic means. For this, however, it is necessary to observe a number of rules. But here we are only talking about postings, and here we will return to them. So, we will consider three cases of VAT refund.

VAT offset for the purchase of goods, works, services

VAT transactions for this operation are quite simple:

• D08,10,26,20,23,41 - 60 - received goods, work, services from the supplier;
• D68.02 - K19 - the amount of VAT shown by the supplier when purchasing goods, services or works on the basis of its invoice was deducted. In this case, a prerequisite for offsetting VAT is the fact of acceptance of works, goods, services, fixed assets or materials for accounting.

Set-off of previously paid VAT upon receipt of advance payment

In this case, VAT is set off in the month in which the previously received advance payment from the customer is closed by sales to him. The VAT entries are as follows:

• D62 - K90.01 - reflected the sale of services, goods, works to the customer;
• D68.02 - K76AV - the amount of VAT previously calculated from the advance amount is accepted for offset.

Reimbursement of VAT from independently carried out construction and installation works (economic support)

• D68.02 - K19 - the amount of VAT accrued earlier from the amount of construction and installation works performed by an economic agent is accepted for deduction. A prerequisite for such an offset is the condition for payment of this amount of VAT to the budget.