VAT rate 10%
A rate of 10% may apply if each of the following two conditions is met.
Condition 1. The product must be included in a special list in accordance with paragraphs. 1 item 2 art. 164 Tax Code of the Russian Federation. This list includes basic foods necessary for a healthy diet, but does not include delicacies. For example, the list includes vegetables, milk and products made from it, meat and products from it, except for tenderloin, tongue, sausages, smoked meats and canned food.
The composition of the list changes frequently, inclusions and exclusions occur, and changes must be constantly monitored. For example, from October 2021 it included berries and fruits, including watermelons.
To apply a 10% rate, the product code must be present in any of the following lists:
- All-Russian Product Classifier (OKPD2) for domestic goods, in accordance with Government Decree No. 908 dated December 31, 2004 “On approval of lists of codes for types of food products and goods for children subject to value added tax at a tax rate of 10 percent”;
- Commodity nomenclature of foreign economic activity (TN FEA) - for imports, in accordance with letter of the Ministry of Finance of Russia dated July 4, 2012 No. 03-07-08/167.
If the product code is not in any of these lists, the seller has the right to apply only a tax rate of 20% when calculating VAT.
Condition 2. The taxpayer must himself confirm his right to a 10% rate. This requires any document certifying the compliance of the food product with technical regulations, according to the letter of the Federal Tax Service of the Russian Federation dated December 7, 2011 No. ED-3-3 / [email protected] and the resolution of the Federal Antimonopoly Service of the North-Western District dated February 1, 2012 No. A56-29589/2011) .
Such documents include:
- certificate of conformity;
- declaration of conformity.
Unfortunately, there is judicial practice not in favor of taxpayers who are trying to document the 10% VAT rate (Resolutions of the Federal Antimonopoly Service of the North-Western District dated 02.28.2014 No. A56-9963/2013, FAS Moscow District dated 03.13.2008 No. KA-A40/1415 -08).
In accordance with the order of the Federal Tax Service of Russia dated October 29, 2014 No. ММВ-7-3/ [email protected] , the tax base and tax calculated at the VAT rate of 10% are reflected in line 020 (columns 3 and 5) of the VAT return.
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VAT in 2021
From January 1, 2021, changes to the Tax Code come into force. Let's consider the main changes and additions made to the procedure for calculating VAT by Law No. 72-Z dated December 29, 2020.
VAT on medicines, medical products, goods for children and food products
1. exemption for the import and sale of medicines and medical products . From 2021, a VAT rate of 10% will be applied to medicines and medical devices included in the relevant state register, or for which there is a conclusion (permit) from the Ministry of Health.
2. The list of food products and goods for children subject to VAT on import and sale at a rate of 10% has been reduced <*>. Goods excluded from the list will be subject to VAT at a rate of 20%.
Note! The Ministry of Taxation published a letter dated December 31, 2020 N 2-1-9/02663 with explanations of how, from January 1, 2021, VAT rates will be applied in relation to: - certain items of food products, certain items of goods for children when they are sold on the territory of the Republic of Belarus, when their import into the territory of the Republic of Belarus, which will be subject to VAT at a rate of 20% instead of the previously applied VAT rate of 10%; — sales on the territory of the Republic of Belarus of medicines, medical products (including prosthetic and orthopedic products), when imported into the territory of the Republic of Belarus, for which a VAT rate of 10% will be applied. The letter also provides clarification on the nuances of taxation of amounts increasing the tax base.
Note No later than February 1, 2021, it is necessary to re-evaluate (include VAT in the required amount) balances <*>: - food products, goods for children, located in the retail network as of January 1, 2021, the VAT rate for the sale of which from 1 January 2021 increases from 10% to 20%; — medicines, medical devices located in the retail network as of January 1, 2021, the VAT rate for the sale of which from January 1, 2021 is set at 10%. The new Tax Code norms will not be applied when selling leftovers in the period from January 1, 2021 until their prices are brought into compliance with the Tax Code provisions, but no later than February 1, 2021.
VAT for individual entrepreneurs
1. Increased to 465,255 rub. revenue criterion for the purpose of recognizing individual entrepreneurs on the OSN as VAT payers <*>. In 2021, this criterion was 441,000 rubles. <*>.
2. The revenue criterion for recognizing individual entrepreneurs on the simplified tax system as VAT payers in relation to income received by them from commercial organizations in which they or their close relatives are founders or owners has been excluded. In 2021, in respect of such income, it is planned to pay tax under the simplified tax system at an increased (16%) rate <*>.
3. For individual entrepreneurs who decide to pay VAT, regardless of whether they achieve the required revenue criterion, there is an obligation to submit a notification of the decision to the tax authority in the prescribed form and within the prescribed period (no later than the 20th day of the month in which the individual entrepreneur will pay VAT) <*>.
4. The dates from which individual entrepreneurs are recognized as VAT payers are specified:
- from the 1st day of the month following the month in which the revenue criterion was achieved;
- from the 1st day of the month from which the decision to pay VAT was made;
- from the date of state registration for individual entrepreneurs who submitted a notice of VAT payment in the month of state registration.
VAT on the sale of objects by non-residents
1. The scope of works and services for which foreign organizations registered with the tax authorities of the Republic of Belarus pay VAT has been clarified, adding to them installation and other works and services related to construction activities <*>. Let us note that this adjustment is aimed at “linking” with the norms of the Resolution of the Ministry of Construction and Architecture of May 10, 2011 N 17 “On establishing a list of types of work and services related to construction activities.”
2. The obligation has been established for foreign organizations carrying out construction activities and not registered with the tax authorities to register and pay VAT starting from the month on which the earliest date falls <*>:
- the day following the day of registration with the tax authority of the Republic of Belarus before the start of activities on the territory of the Republic of Belarus for more than 180 days;
- the day following the day of expiration of 180 days from the date of commencement of activities (from the date of existence of the construction project) on the territory of the Republic of Belarus.
3. The obligation of a foreign organization that operates through several permanent representative offices on the territory of the Republic of Belarus is established to submit a VAT tax return to the tax authority to which it submits a profit tax return <*>.
Objects of VAT taxation
Turnovers recognized and not recognized as objects of taxation have been adjusted. Namely:
— turnovers related to the sale of the debtor’s property within the framework of enforcement proceedings (including the transfer of the debtor’s property to the claimant) are excluded from the list of objects of taxation and are included in the composition of turnovers not recognized as objects of taxation <*>;
- excluded from the number of turnovers not recognized as objects of taxation is the gratuitous transfer of state property (with the exception of goods specified in Part 1, Subclause 2.6, Article 115 of the Tax Code of 2021) and objects to budgetary organizations of healthcare, education, culture, physical education and sports <* >. Such turnover will not be recognized as sales in accordance with the provisions of Art. 31 NK-2021.
Place of sale for VAT purposes
The list of turnovers for the sale of works, services, property rights, the place of sale of which is determined by the buyer, has been adjusted. Engineering services directly related to real estate are excluded from it, since they are taxed in accordance with subsection. 1.1 art. 117 NK-2021 <*>.
From 2021, the place of sale will not be recognized as the territory of the Republic of Belarus in relation to the part sold by one foreign organization that does not operate in the Republic of Belarus through a permanent representative office, another foreign organization of works, services, property rights to intellectual property, amounting to less than 10 percent of their value in the relevant period, which was consumed in the Republic of Belarus by a representative office, or a permanent establishment, or a branch of such another foreign organization <*>. This norm will apply to works (services), property rights, the moment of actual implementation of which falls on reporting periods starting from January 1, 2021 <*>.
VAT exemption
1. The rule on the exemption from VAT of work (services) performed (rendered) by foreign organizations that are not registered with the tax authorities of the Republic of Belarus and related to the participation of Belarusian organizations and (or) Belarusian individual entrepreneurs in events held in foreign countries has been adjusted. It has been established that conferences are classified as such events, regardless of whether they are international or not <*>.
2. It has been established that in addition to turnover on the sale of services , starting from 2021, turnover on the sale of work and property rights to republican government bodies, paid by them from budgetary funds, and foreign organizations not registered with the tax authorities of the Republic of Belarus will also be exempt from VAT <* >.
3. The norm established by para. 2p. 5Decree N 503, on reducing the criterion for the number of disabled people from 50% to 30% for the purpose of applying VAT benefits. At the same time, in order to be exempt from VAT, a prerequisite is compliance with the established percentage of the number of disabled people on average for the corresponding past period <*>.
4. Services for conducting a preliminary examination of a qualifying scientific work (dissertation) and consideration of a qualifying scientific work (dissertation) by the dissertation defense council <*> are excluded from the number of services related to education that are exempt from VAT.
5. From the number of sales turnovers exempt from VAT, excluded are the sales turnovers of newly built garages, parking spaces and car parks (shares in the ownership of a car park) on the territory of the Republic of Belarus by the developer, customer, garage cooperative, cooperative operating car parking <*>.
6. The list of transactions exempt from VAT carried out by the open joint-stock company “Belarusian Currency and Stock Exchange” has been expanded. From 2021, such operations will also include operations to install and (or) maintain electronic document management systems between the exchange and its clients, as well as systems that provide remote servicing of exchange clients when carrying out clearing activities, activities for registering information on transactions made on an unorganized market and over-the-counter Forex market, organizing trade in financial assets <*>.
Note Let us remind you that from January 1, 2021, the list of housing and communal services services exempt from VAT <*> has been expanded.
Tax base VAT
1. The norm sub-clause has been moved to the Tax Code 2021. 1.2 Decree No. 546 of November 24, 2005 on the procedure for determining the VAT tax base for the sale by legal entities and individual entrepreneurs of vehicles purchased by them without VAT from individuals, including individual entrepreneurs, on the territory of the Republic of Belarus. Thus, the VAT tax base for the sale of vehicles in accordance with Appendix NK-2021 will be determined as the difference between the sales price including VAT and the purchase price of these vehicles <*>.
2. A procedure has been established for determining the tax base for leasing agreements for vehicles purchased from individuals. The tax base of the leased asset in terms of the contract value will be determined as the difference between its contract value including VAT and the lessor's investment expenses for the purchase of the vehicle <*>.
3. the rule on determining the VAT tax base when selling the debtor’s property within the framework of enforcement proceedings in connection with the exclusion of such turnover from the composition of turnover subject to VAT <*>.
Moment of actual implementation (MFR)
1. The rule on determining the MFR of works and services, the result of which cannot be used until their completion, has been adjusted. It is stipulated that the current procedure for determining the MFR applies to individual stages of such work (services) <*>.
2. The rule on the procedure for determining the MFR for rent has been adjusted. Thus, if the rental period does not exceed one month, the last day of the lease <*> is set as the day of delivery of the leased object.
3. The MFR has been determined in relation to amounts that increase the tax base in accordance with clause 4 of Art. 120 Tax Code, for banks as the day these amounts are reflected in accounting <*>.
VAT rates
1. The norm sub-clause has been moved to the Tax Code 2021. 1.2 Decree No. 296 dated 05.08.2019 on establishing a 0% VAT rate for turnover on sales of goods of own production on the territory of the Republic of Belarus to the owner of a duty-free store for their subsequent sale on board aircraft as supplies exported from the customs territory of the EAEU <*> .
2. The application of a 0% VAT rate is fixed on a permanent basis for the implementation of work (services) for repairs and maintenance of vehicles registered in foreign states, performed on the territory of the Republic of Belarus by authorized service centers for foreign organizations or individuals, with the exception of citizens of the Republic of Belarus (instead of restrictions on the application of the zero VAT rate until January 1, 2021) <*>.
3. An editorial amendment has been made regarding the non-application of the 20% VAT rate when importing into the territory of the Republic of Belarus goods specified not only in subparagraph. 2.2, but also in sub. 2.1 and 2.21st. 122 NK <*>.
4. It has been established that it is possible to apply a VAT rate of 20% not only on turnover on the sale of goods subject to VAT at a rate of 10%, but also when importing such goods <*>.
5. It has been determined that in relation to amounts increasing the tax base in accordance with clause 4 of Art. 120 Tax Code, the estimated rate does not apply <*>.
6. The list of data to be indicated in the register of electronic customs declarations for goods has been clarified for the purpose of applying a 0% VAT rate when exporting goods outside the EAEU when declaring goods in the form of an electronic document. The numbers of declarations for goods for express cargo and the date of release of goods <*> have been added to this list.
7. It has been established that exported transport services for the purpose of applying the 0% VAT rate do not include auxiliary transport services (OKRB code 007-2012 -52.29.20.100), consulting services, cargo storage services provided under a separate contract that does not provide for the organization and (or) ensuring international transportation of goods <*>.
8. The rule on the procedure for filling out the ESCF created during the sale of exported transport services, subject to VAT at a rate of 0%, has been adjusted. Thus, in the ESChF it is obligatory to indicate the code of the type of economic activity of the national classifier of the Republic of Belarus OKRB 005-2011 “Types of economic activity”, and forwarders must indicate in the ESChF both the details of the transport document and the details of the application <*>.
9. It has been determined that in order to apply a 0% VAT rate when implementing work (services) for the repair, modernization, re-equipment of aircraft and their engines, units of railway rolling stock, performed (rendered) for foreign organizations or individuals, supporting documents must be available from the payer <*>. Let us remind you that in 2021, copies of such documents were subject to submission to the Tax Inspectorate.
Tax deductions
1. It has been established that foreign organizations that pay VAT in accordance with sub. 2.2 Art. 114 NK-2021, deduct amounts of “input” VAT after they are registered with the tax authority of the Republic of Belarus <*>.
2. An editorial amendment has been made stating that in order to deduct the submitted VAT amounts (including for payers calculating VAT “on payment”) and the amounts of “import” VAT in the reporting period in which the conditions for the deduction are met, filing a VAT return must be carried out within the prescribed period <*>.
3. To the list of dates, the last of which determines the date of the right to deduct VAT amounts paid when importing goods from the EAEU, the date of submission of the VAT declaration, which reflects the amount of VAT, is added, if such a declaration is submitted after the established deadline <*>.
4. The possibility of deducting VAT amounts paid when importing goods from outside the EAEU is established in the reporting period, the deadline for filing a VAT return for which follows after the issuance of the ESCHF, if such ESHF is issued after the filing of the VAT return for the reporting period, in in which the conditions for deduction are met, and the date in line 3ESChF falls on the same period <*>.
5. It is determined that the amounts of VAT attributable to the costs incurred by the customer, developer, shareholder, constituting the cost of goods (works, services) transferred free of charge to state operating organizations during the reconstruction, repair of engineering and transport infrastructure facilities that are under their right of economic management (operational management) are accepted for deduction in the manner established for the deduction of VAT on purchased goods (work, services), property rights <*>.
6. It has been established that the deduction of VAT in the manner prescribed for turnover on the sale of objects at a rate of 20% will not be applied to the amounts of VAT on goods (works, services) transferred free of charge by the customer, developer, shareholder to state operating organizations during reconstruction, repair objects of engineering and transport infrastructure that are under their right of economic management (operational management), in connection with the fulfillment of technical conditions for engineering and technical support of the object, received in the prescribed manner for the purpose of constructing the object <*>.
7. The restriction on the deduction of “input” VAT amounts on gratuitously transferred goods (work, services), property rights to budgetary organizations of healthcare, education, culture, physical education and sports, which are planned not to be subject to VAT from 2021 in accordance with Art. 31NK, as well as amounts of “input” VAT associated with the receipt of income from the provision of services by organizations that are payers of the single tax on imputed income, services for the maintenance and (or) repair of motor vehicles and their components, the sales turnover of which is not recognized as an object VAT taxation in accordance with Part 1, Clause 7, Art. 378 NK <*>.
8. The rule on reducing tax deductions when returning goods imported from the EAEU for their replacement or repair has been adjusted. It is stipulated that such an adjustment will be made if, when returning goods for the specified purposes, an updated part II of the VAT declaration is submitted <*>.
9. The possibility of transferring VAT deductions to a legal successor without transferring goods (work, services), property rights has been established, if this is provided for in the separation balance sheet (transfer deed) <*>.
10. Norm sub. 27.3 Art. 133 of the Tax Code 2021 is set out in a new edition, which establishes the need to reduce tax deductions by amounts of VAT previously accepted for deduction in full in connection with liquidation, in the event of cancellation of the liquidation procedure.
Informing about the election of the reporting period
A deadline has been established for informing about the selection of a quarter as a reporting period if, during the transition to the use of a special taxation regime without paying VAT, and the absence of an appropriate mark on the selection of the reporting period in the VAT return for the previous year, an obligation arose to calculate and pay VAT in the current year. The mark must be put down no later than the 20th day of the month following the quarter in which the obligation to calculate and pay VAT arose (the object of taxation arose). This procedure also applies to individual entrepreneurs who are not VAT payers <*>.
Confirmation of VAT payer status
The Tax Code 2021 establishes the procedure for confirming the status of a Belarusian organization as a VAT payer. Such confirmation will be carried out on the basis of the payer’s application by issuing a certificate in the established form by the tax authority at the place of registration or by certifying the certificate in the form established in a foreign state <*>.
VAT refund
Article 137 of the Tax Code 2021 is set out in a new wording, taking into account the current law enforcement practice. In particular, it stipulates that the offset of the amount of excess VAT against the fulfillment of the tax obligation is carried out if the tax authority has a corresponding declaration.
Tax Free
The procedure for processing documents for VAT refund under the Tax Free system has been simplified. Now you do not need to create a VAT refund receipt in two copies and attach the original confirmation of the export of goods to the VAT refund document. The card check is recognized as a payment document for VAT refund <*>.
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VAT rate 0%
Zero VAT rate according to clause 1. Art. 164 of the Tax Code of the Russian Federation applies to the sale of food products outside the Russian Federation. The taxpayer must independently justify the application of this rate and, within 180 days from the date of customs clearance, provide the following documents:
- copies of customs declarations or their registers, including electronic ones, in accordance with paragraph 15 of Art. 165 Tax Code of the Russian Federation, clause 10 art. 1 of the Law of December 29, 2014 No. 452-FZ “On amendments to Art. 165 Tax Code of the Russian Federation";
- copies of shipping/transport documents or their registers, including electronic ones;
- copies of agreements with counterparties.
When applying a zero rate, the taxpayer fills out section 4 of the VAT return. If he was unable to collect the above package of documents on time, he is only entitled to apply a VAT tax rate of 20% or (if the relevant conditions described above are met) - 10%. In such cases, section 6 is filled out in the VAT return.
What's happened
Recently, the Ministry of Finance informed companies that supply animal feed ingredients from abroad about the need to pay additional VAT on imported feed additives for the last 3 years.
It's all about the inaccuracy of the wording in the regulations and the inconsistency of the explanations of the Ministry of Finance itself.
For importers, such a “knight’s move” will cost from 4 to 7 billion rubles and will naturally affect the cost of meat products for the end consumer .
Let's talk about this scandalous story in more detail.
Exemption from calculation and payment of VAT on food products
Companies and individual entrepreneurs are exempt from VAT in any of two cases:
- In accordance with paragraph 5. paragraph 2. Art. 149 of the Tax Code of the Russian Federation - if they produced or sold products in the canteens of educational or medical institutions. And yet, then the taxpayer is also obliged to independently justify the exemption from the calculation and payment of VAT. To do this, in accordance with the letter of the Ministry of Finance of the Russian Federation dated December 3, 2014 No. 03-07-15/61906, he must provide licenses for the provision of medical or educational services.
- If the taxpayer is in a special regime and is exempt from working with VAT. In accordance with paragraph 2 of Art. 346.11 of the Tax Code of the Russian Federation, a taxpayer using the simplified tax system is exempt from paying VAT in all cases, except for the following: products are imported into the territory of the Russian Federation or such taxpayer is a tax agent. Individual entrepreneurs on a patent are also exempt from paying VAT, unless they conduct activities that are not covered by the PSN, do not import products into the territory of the Russian Federation and do not carry out transactions taxed under Art. 174.1 Tax Code of the Russian Federation.
The cost of food products exempt from VAT is reflected under code 1010232 in section 7 of the VAT tax return.
Keep VAT records in the Kontur.Accounting web service: there is a built-in system for checking VAT calculations. The service will tell you which documents need to be added and which transactions to check in order to reduce the amount of VAT and avoid fines. In Accounting - simple accounting, payroll, reporting, integration with banks and cash desks. The first two weeks are free for all newbies.
Who's against
At the end of May, a meeting was held at the Ministry of Agriculture at which this issue was discussed.
According to the position of the Ministry of Agriculture, set out in the protocol, the clarifications are editorial in nature and do not change the legal regulation of issues related to the taxation of feed additives, Izvestia writes. The purpose of the amendments to the resolution is to remove legal uncertainty regarding the correct VAT rate for the same goods when sold and imported into the Russian Federation, as well as to ensure a uniform legal approach.
According to the business community, a VAT rate of 10% should be applied both to feed additives imported after April 1, 2019, and declared before this date. But the Ministry of Finance thinks differently.
The Federal Customs Service has already begun inspections of companies.
The Ministry of Agriculture noted that the use of an increased rate on components of finished feed will negatively affect the economic efficiency of industry enterprises and will lead to an increase in the price of the final product , the protocol says.
State Duma deputies also spoke out against additional VAT charges for the import of animal feed.
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It is impossible to introduce additional VAT charges to importers of animal feed additives for the past period; this will only ruin suppliers and affect the cost of products and will not support local producers, said Deputy Chairman of the State Duma Committee on Agrarian Issues Ayrat Khairullin.
“I am categorically against this type of additional accrual, since the law should never have retroactive force: what happened is gone . It is necessary to warn in advance about what will happen. There are two sides to this. First, the cost of produced meat and milk will increase; unfortunately, we have no alternative to imported additives. On the other hand, it is necessary to understand what goal the Ministry of Finance is pursuing. If the goal is to localize production in Russia, following the example of the automotive industry, then a set of measures is needed; raising VAT alone will not do,” said Airat Khairullin.
Additional VAT on the import of feed additives will, of course, replenish the budget, but primarily at the expense of taxpayers ,” the deputy noted.
Allocation of VAT
Our free online calculator will help you easily highlight and calculate the VAT tax of 18% (effective in 2021), 20% or 10% - you will get the result in numbers, not in words. To calculate the tax or calculate the allocated amount, use the following formula:
Amount: (1+ VAT rate: 100)
How to do this on a calculator:
Step 1. If the VAT percentage for your type of activity is 10, then you need to divide the number by 1.1, if the VAT is 20%, then by 1.2.
Step 2. You need to subtract the initial amount from the resulting value. Remember: the accrual cannot be negative, so we remove the minus.
Step 3. If you do not need ultra-precise calculations, you can round the result to the nearest kopeck.
If you are not a value added tax payer (you work without VAT), then you do not need to allocate VAT.
