VAT value added tax

For 2020 the VAT is the second largest source of revenue for the post-tax Government of the Russian Federation on an oil and gas sector.

2020

The plan of collecting of the VAT of 4.552 trillion rub

For 2020 charges of the VAT of 4.552 trillion rubles are budgeted, and this plan was implemented even despite collapse of economy.

Tax benefits which entered the authorities for support of economy did not extend to the VAT, and according to the results of the first half of the year of receipt even grew - by 29 billion rubles, up to 2.078 trillion. In August the Ministry of Finance recorded insignificant recession (for 3.7%) which in September accelerated almost by 6 times.

The key tax which is sewn up in the cost of all goods and services in the country and provides every fifth ruble of state revenues, unexpectedly sharply sank in September, 2020. Its receipts fell off for 23%, to 411 billion rubles, follows from operational statistics of the Ministry of Finance.

Mass media reported possible zeroing of the VAT for the domestic IT companies

The Government of the Russian Federation can nullify the VAT for the domestic IT companies, the Vedomosti newspaper with reference to two sources familiar with the course of discussion of the document in the government reports in June, 2020.

It is noted that the Ministry of Telecom and Mass Communications can enter such measure of support to the national plan for development of economy. It is added that the list of measures is still discussed and it can be changed.

According to the edition, the representative of the Ministry of Telecom and Mass Communications refused comments, and in the press service of the government said that "measures of support of IT are sent for study".

"Among other feasible measures on support to the IT industry there is a decrease in an upper level of income tax for the hi-tech companies from 20 to 12%, (for regions — up to 2%), interlocutors of Vedomosti list. According to them, also about termless prolongation of the preferential mode of payment of insurance premiums (now for the IT companies their rate is 14%)", the statement says. is.

• Main article: Privileges for the IT companies in Russia
• Putin sounded a number of instructions for support of the IT industry

2018

Growth of charges of the VAT for 16.4% to 3.6 trillion rub

At the end of 2018 came to the consolidated budget of Russia 3.6 trillion rub (+16.4%) of a value added tax (VAT)^[1].

The State Duma adopted the law on increase in the VAT to 20%

The State Duma adopted in the third, final reading the law^[2]providing increase in a value added tax (VAT) to 20% from 18% and also new rates of social contributions. The bill is initiated by the government, changes become effective since January 1, 2019.

The VAT (value added tax) in the countries of Europe

According to the estimates of the government, increase in the VAT will bring to the federal budget additional 620 billion rubles a year.

Privileges on the VAT at the same time remain. It is about the lowered VAT rates in the amount of 10% for goods of social appointment: food products (except for delicious), children's goods, periodic printing editions and the book products connected with education, science and culture and also medicines and products of medical appointment. Zero rates of the VAT work for internal interregional air transport.

The law grants to producers the right not to recover the VAT accepted to a deduction on goods (works, services) purchased by the subsidies received in 2018 on compensation of a part of the costs connected with release and support of warranty obligations concerning wheel vehicles, the high-performance self-propelled and hook-on equipment, including agricultural machinery.

It will lead to losses of federal revenues in the amount of 27 billion rubles, said in financial and economic justification to the document.

Insurance premiums

The law also provides decrease since January 1, 2019 in a cumulative rate of insurance premiums in state non-budgetary funds up to 30% from 34% and settlement of a tariff of insurance premiums in the Pension fund in the amount of 22%.

"Settlement of a tariff of insurance premiums for mandatory pension insurance concerning the main category of payers in the amount of 22% (instead of a generally established rate in the amount of 26%) within the set value of base for calculation of insurance premiums for mandatory pension insurance will lead in 2021 to reduction of volume of receipts of insurance premiums for mandatory pension insurance in the amount of 948.22 billion rubles, in 2022 in the amount of 1 trillion 16.27 billion rubles, in 2023 in the amount of 1 trillion 86.52 billion rubles, in 2024 in the amount of 1 trillion 171.41 billion rubles", said in a financial economic case.

It is necessary to cover a lack of means from the budget. As a result the transfer from the federal budget in the Pension Fund of the Russian Federation will grow by 502.6 billion rubles in 2019 and for 554.1 billion rubles in 2020, authors of the document counted.

Now the general rate of insurance premiums for employers is 30% (from which 22% 2.9% and 5.1% - in the Social Insurance Fund and Federal Compulsory Health Insurance Fund go to RPF). The rate in 30% is preferential: according to the designings accepted earlier, its action stops since 2021 that would increase load of employers to 34%. Thus, having set a new rate in 30%, the Government of the Russian Federation suggests to refuse increase in this rate in the future.

Amendments to the second reading

To the second reading of the document amendments which prolong for six years - till January 1, 2025 - action of a zero rate of the VAT at passenger air transportation to the Crimea and back were approved. The operating preferential rate is applicable until the end of 2018.

Also zero rate of the VAT is established concerning services in internal air transport of passengers and baggage provided that the point of departure or the point of destination are located in the territory of the Far Eastern Federal District (FEFD) - this preferential rate will also work till January 1, 2025. "For unification we save the same privilege for Kaliningrad", - the head of the State Duma Budget and Taxes Committee Andrey Makarov told.

For 2019-2024 also discount fares of insurance premiums for the NPOs applying a simplified tax system and which are engaged in social service of citizens, research and development, education, health care, culture, art and mass sport (except for professional) and also for charitable organizations last. Rates of contributions to mandatory pension insurance will make 20%, on compulsory social insurance on a case of temporary disability and in connection with motherhood, on compulsory health insurance - 0%.

The law also specifies an order of determination of tax base when implementing goods, works or services taking into account the subsidies provided federal or regional budgets in connection with application by the taxpayer of discounts for the price of these goods, works or services.

The document provides a possibility of a deduction from tax base of VAT amount on the goods purchased by the subsidies received till December 31, 2018. "It is very important for agricultural producers and the organizations implementing projects on construction and reconstruction of highways", - the head of budget committee Makarov considers.

Since January 1 state companies will not be able to include the VAT on separate purchases in the costs and to put them in cost value of goods.

The government decided to raise a VAT rate to 20%

The tax rate for the added value (VAT) in Russia will be raised up to 20% (from 18%), the head of the government Dmitry Medvedev said, the correspondent of RBC^[3] tells ^[4].

The VAT which is transferred to the final prices of all goods and services — a cornerstone of the Russian taxation and budget system. In 2017 the federal treasury collected 5.1 trillion rub of the VAT, or 34% of all budget revenues (.xls). This year the government expects to collect at the expense of the VAT for domestic and import goods and services of nearly 5.8 trillion rub.

The general VAT rate will be raised to 20% since January 1, 2019, the first Deputy Prime Minister, the Minister of Finance Anton Siluanov specified. According to him, this measure will give to the budget in addition more than 600 billion rubles annually since next year. Means will help to finance the "national purposes of development" determined by the May decree of the president, he told.

The government prepares a packet of measures for "compensation" of increase in the VAT.

• First, possibilities of business for the accelerated compensation of value added tax will extend. Now the Tax Code grants the right to the accelerated method of its compensation if the company paid not less than 7 billion rubles of the VAT, excises, income taxes and on mineral extraction in total for three previous years; this threshold will be reduced to 2 billion rubles.
• Secondly, terms of cameral checks at compensation of the VAT will be reduced.
• Thirdly, the government will cancel a tax on personal estate (business repeatedly urged it to cancel, calling "a tax on upgrade"). At last, a rate on contributions of employers to mandatory pension insurance of workers will "be termless" it is recorded at the level of 22% (and 10% at achievement of extreme base on contributions), Siluanov told. By the current legislation, the rate for RPE should return on the level of 26% since 2021.

Vedomosti: the government discusses increase in the VAT to 20%

The government discusses a possibility of increase in a value added tax with 18 to 20%. Increase in the VAT, Vedomosti writes at the end of May, 2018, is considered as one of options to receive a part from 8 trillion rubles necessary for accomplishment of the new "May decree".

According to interlocutors of the edition, increase in the VAT will give to the budget in addition about two trillion rubles within six years.

On "the May decree", as expected, the announced raising the retirement age will give about two trillion more rubles to the budget, reported two sources of the newspaper. The remained four trillion rubles will be brought by loans (about three trillion rubles) and reform of taxation of the oil industry (about one trillion rubles).

Sources of the edition emphasized that this is not about already made decisions. Everything changes very quickly and constantly, one of interlocutors of Vedomosti noted.

2013: Hand over the VAT on the Internet

On January 1, 2014 becomes effective Federal law No. 134-FZ of June 28, 2013. It obliges to hand over declarations on the VAT only on the Internet for the I quarter 2014. It concerns the enterprises of all patterns of ownership and number and also SP.

Who should hand over declarations on the VAT

The organizations are obliged to hand over the declaration on the VAT which exposed the invoice to the partner (voluntarily or by mistake). Happens that the enterprise works at "simplified tax system" and exposes the invoice including VAT. It is authorized the law, but obliges to pay the VAT and to hand over the declaration. And all firms on a general regime of taxation hand over the VAT by default.

What needs to be made now

According to Office of the Federal Tax Service of St. Petersburg in the city more than forty thousand organizations and SP preferring paper declarations to electronic. In total in St. Petersburg 13 special telecom operators. Experts are afraid that during reporting period there can be a confusion connected with entry into force of the new law. Therefore it is worth thinking of connection already now to manage to get used to new technologies.

Why telecom operators are necessary

The Internet reporting for the first time appeared in 2002. And by 2013 changed to unrecognizability. Today telecom operators give great opportunities:

The round-the-clock sending the reporting even on holidays and days off;

• — Automatic update of all forms and built-in check for errors;
• — Sending to any region of Russia, obtaining notifications and reference information;
• — Reconciliation of calculations with the budget;
• — Check of partners on USRLE base and arbitration cases;
• — Risk assessment of tax audit and cameral verification of reports;
• — Financial and tax analysis.

And many other things. You receive the most powerful tool for the solution of a wide range of managerial and accounting tasks.

Alternative methods of submission of reports on the Internet

Really the only way to hand over the reporting on the Internet — to purchase the software at the telecom operator? No, there are also others. Here they.

1. you can purchase the electronic signature in any entrusted Certification center and hand over the report via the website www.nalog.ru. Pluses of such method — the low price (about 2000 rubles a year) and the choice of the certifying cents are much wider than operators. Minuses — you can hand over the report only. Request the reconciliation statement, learn an outstanding amount and receive additional services and also you will not be able to report in RPF.
2. it is possible to Hand over the report directly from the program of a 1C system: Enterprise 8. Obvious pluses — it is not necessary to install third-party programs. Everything occurs in usual 1C. Minuses — not all companies provide sending reports to RPF.
3. At last, you can address to any servicing accounting company (we still call them "Authorized accounting") and to ask to hand over the report for you. At the same time it is necessary to issue the power of attorney of the set sample and to bring it to tax before submission of reports. Pluses — do not need to be bought nothing, the cost of sending one report within 200 rubles. Minuses are the same queues, it is necessary to spend time for the road, the third parties see your digits in the declaration.

By the way, many modern programs and services for accounting also allow to send reports on the Internet.

Violation of a method of delivery of the report

By new edition of point 1 of Article 119 of the Tax Code of the Russian Federation it is defined that since 2014 both taxpayers, and tax agents can be fined for untimely delivery of the declaration (so far it concerns taxpayers). The amount of a penalty — 200 rubles. The amount is quite ridiculous, but there is a risk that the declaration will be considered as unaccepted.

How to be if already today refuse to you acceptance of the report on paper

Such failure is illegal and you can safely uphold the correctness. Terms of entry into force are accurately stated in the law. But keep in mind: tax inspectors will be more loyal treat you if you hand over the reporting on the Internet. It is checked.

You See Also

• Automated system of control of NDS-2 (ASK NDS-2)
• Automated system of control of compensation of the VAT (VAT ASK)

• Taxes in Russia

• SP (individual entrepreneur)
• Economy of Russia
• Privileges for the IT companies in Russia
• Optimization (reduction) of taxes

Notes