HOW TO GET VAT EXEMPTIONS IN 2020-2021?

The identical wording "without VAT" in the shipping documents accompanying documents does not mean identity in terms of business transactions. Exemption from VAT can be based both on the voluntary refusal of the taxpayer in view of compliance with legal restrictions, and as a result of the provision of incentives for goods of a selected range and a number of services.

Release from performance of obligations of the payer

Business entities, when certain conditions are met, are given the right to choose in terms of VAT. Along with paying tax on a general basis, the taxpayer has the right to receive an exemption (Article 145 of the Tax Code of the Russian Federation) applicable to all financial and economic activities, and not partial segments.

Conditions of release

Business entities have the right not to pay VAT of their own free will, provided that the following conditions are met (clause 1.2 of article 145 of the Tax Code of the Russian Federation):

• the volume of proceeds from taxable transactions for the 3 months preceding the planned cancellation does not exceed 2,000,000 rubles (except for unified agricultural tax payers);
• the volume of proceeds from the unified agricultural tax for 2019 is within 90,000,000 rubles, and for 2020 - 80,000,000 rubles (for agricultural producers).
• there is no sale of excisable goods for a three-month period;
• the organization has not received the status of a participant in the Skolkovo project.
• Along with existing business entities, newly registered persons who have not had time to work for a three-month period can take advantage of the privilege. The exemption for “newcomers” became possible due to the changed position of the financial department, set out in the letter dated 23.08.2019 No. 03-07-14 / 64961.

Factors influencing choice

1. VAT status of buyers. Marking "Without VAT" in the issued invoices:

• is indifferent to the end consumer or the person applying the preferential taxation system;
• significant for the VAT payer, as it deprives the right to tax deduction and threatens with the loss of the counterparty.

2. Availability of inventory and acquired non-current assets. Before the "start" of using the exemption, the beneficiary must restore the VAT accepted for deduction (clause 8 of article 145 of the Tax Code of the Russian Federation):

• from the cost of inventory items, works and services planned for use during the exemption period;
• with the under-depreciated at the time of transfer of the value of fixed assets and intangible assets.

3. The share of input VAT, since the taxpayer is obliged to include the amount allocated by suppliers in invoices in the value of assets (subparagraph 3 of paragraph 1 of article 170 of the Tax Code of the Russian Federation). The loss of 20% deductions may be:

• essential - for trade with a low level of trade margins and material-intensive production;
• insignificant - for enterprises providing services with a small proportion of purchased material resources.

4. Control of turnover and goods sold. The beneficiary is automatically deprived of the right to exemption from VAT in the following cases (clause 5 of article 145 of the Tax Code of the Russian Federation):

• exceeding the revenue of the two million mark for any three consecutive months;
• sales of at least one unit of excisable products.

When analyzing the feasibility of the transition, a working enterprise or entrepreneur should take into account the real indicators, and persons who are starting their activities should make a forecast calculation. Among the significant factors:

During the exemption period, the economic entity does not submit tax returns, does not fill out the book of acquisitions, does not calculate and does not pay VAT to the budget, except for situations directly provided for by tax legislation when the tax amount is allocated on a separate line (clause 5 of article 173 of the Tax Code of the Russian Federation).

Algorithm for the transition to preferential treatment

To go to the tax authority at the place of registration, it is necessary to provide a notification of a unified form approved by order of the Ministry of Finance of the Russian Federation of December 26, 2018 No. 286n. The Inspectorate of the Federal Tax Service should be informed within 20 days of the month of the beginning of the use of the exemption regime (clause 3 of article 145 of the Tax Code of the Russian Federation) without prior approval. Extracts from:

financial reporting - for companies;

income accounting books - for individuals who have received entrepreneurial status;

sales books - for persons classified as VAT payers.

The minimum exemption period for a taxpayer is one year, except in cases of early "meeting" when the amount of revenue is exceeded or the sale of excisable goods - as a compromise option, when the use of the exemption regime did not bring the desired economic benefits.

The return to the previous state is different for payers who are on OSNO and pay the Unified Agricultural Tax at the time of the transition:

• the right to exemption is lost from the month of the violation until the end of the period specified in the notification, with the possibility of re-submission - for OSNO;
• the right to use the preferential treatment is lost similarly without the possibility of a repeated attempt - for the Unified Agricultural Taxation.

In the absence of violations, at the end of the exemption period, the taxpayer submits to the tax authority documents confirming compliance with the standards and the next notification of the extension of the exemption or waiver of the applicable regime.

Exemption from VAT on preferential transactions

A number of transactions are subject to VAT exemption, the presence of which relieves the company from the obligation to calculate the tax liability. Non-taxable operations include the operations listed in Article 149 of the Tax Code of the Russian Federation:

• on the sale of medical services and medical assortment goods of domestic and imported production in accordance with a special list, annually revised by the Government of the Russian Federation (subparagraph 1.2, clause 2);
• on the transfer of rights to inventions, the use of the results of intellectual activity in accordance with license agreements, software, databases, industrial designs and know-how included in the unified register of domestic computer programs - an innovation from 01.01. 2);
• banking operations and operations for the transfer of borrowed funds (subparagraph 3.15 clause 3);
• on the sale of securities and shares in the authorized capital of enterprises (subparagraph 12, clause 2)
• on the sale of property assets of persons declared bankrupt, regardless of their inclusion in the bankruptcy estate.

There is no need to notify the tax authorities about the application of the exemption. However, an economic entity has the right to refuse the exemption and charge VAT on a general basis. This can be economically justified in the presence of taxable and preferential transactions in order to include deductions in full without the need for separate accounting. To take advantage of this opportunity, the taxpayer should submit an application to the tax authority with a list of transactions to be refused.

conclusions

Tax legislation provides for two types of VAT exemption, regulated by two different articles of the "fiscal encyclopedia":

1. In the context of taxpayers, exemption from obligations subject to the limitation of the maximum turnover, controlled every three months and excluding the sale of prohibited goods (Article 145 of the Tax Code of the Russian Federation).
2. In the context of operations classified as non-taxable, exempt from VAT charges upon implementation (Article 149 of the Tax Code of the Russian Federation).

To obtain the status of a temporary non-payer, a corresponding notification of the tax office is required, while to use the privilege, only the presence of a provided exempt operation is required, which does not require notification of the Federal Tax Service Inspectorate.