For companies selling goods for export, the law gives the right to a refund of the amount of VAT taken into account during the production or purchase of exported products. In the article we will talk about how to make a VAT refund when exporting (export VAT), and also, using examples, we will look at calculating the amount of the refund and its reflection in accounting.
VAT refund for export: conditions, documents, deadlines
Goods (work, services) that an enterprise sells for export to foreign companies are subject to VAT at a rate of 0%, that is, essentially exempt from tax. This allows domestic exporting organizations to reduce their own costs for the production (purchase) of goods by the amount of VAT paid to suppliers and contractors.
The main condition for receiving a refund is confirmation that the purchased goods (materials, services) were actually sold for export or used in the production of goods that were sold to a foreign buyer.
VAT refund is carried out on the basis of documents confirming export (supply agreement, delivery note, invoices, etc.), as well as upon filing a tax return with information regarding export operations included in it.
If we talk about the time frame for confirming export sales, they are limited to 180 days. It should be counted from the moment the exported goods are placed under the customs procedure.
There are two ways to get your VAT refunded. The first is to receive funds from the budget directly to the current account, the second is to arrange an offset of the amount paid against upcoming payments. In the first case, it is assumed that in the reporting quarter the enterprise sold goods exclusively for export, and it has no debts to the budget. Otherwise, the tax service will issue an offset to the existing debt.
It should be noted that the exporter can receive a VAT refund only if the supplier of goods from whom the goods were purchased for export sales has paid VAT to the budget. If the supplier issues an invoice and the VAT is not paid, then the exporting company is not entitled to a tax refund.
Separate VAT accounting for export transactions
Often accountants have a question about how VAT should be taken into account if an enterprise sells goods not only for export, but also within the country. Let's understand this situation using an example.
Let’s say JSC “Labyrinth” is engaged in the manufacture and sale of interior doors.
At the end of the 3rd quarter of 2016, Labyrinth sold 75 doors to customers from Rostov and Voronezh, and 25 units of products were sent to Poland as export supplies:
- the price of contracts with domestic buyers is 134,800 rubles, VAT is 20,562 rubles;
- cost of export delivery to Poland - 51,600 rubles, VAT 0.00 rubles;
- input VAT on the cost of goods, materials and services spent in the production of sold doors is 94,300 rubles.
To calculate the amount of input VAT, the Labyrinth accountant allocates the share of revenue from export sales from the total amount:
(51,600 rubles / (134,800 rubles - 20,562 rubles)) = 0.45.
To determine the indicator of input VAT for deduction on export sales, “Labyrinth” makes the following calculation:
94,300 rub. * 0.45 = 42.435 rub.
Investigator, the amount of VAT deductible from domestic sales will be:
VAT refund on export
Let's talk about what VAT refund is when exporting goods outside of Russia.
This is sometimes called export VAT refund. True, I like it better when this procedure is called “VAT refund”, because... VAT can be returned in the form of cash to your current account from the budget.
Where does the VAT refund come from when exporting?
Surely you know the nature of VAT and how goods, works and services are levied with this tax. Further, for simplicity, I will call all this in one word “goods”.
If you don’t remember, let me briefly remind you: the rate is 10% or 18%.
It is paid from the difference between “VAT paid” when purchasing goods and “VAT payable” when selling goods.
When exporting, the situation is slightly different. You purchased goods within Russia and thereby paid a certain amount of VAT.
This means that when exporting, there is an overpayment of VAT to the budget. And in accordance with the Tax Code, VAT upon export can be returned to your current account, i.e. you can receive a VAT refund in the form of “real money”.
How to get a VAT refund when exporting?
This is where the fun begins, need to all in just undergo a desk tax audit of all company activities for the quarter in which your company claims VAT refund from the budget.
What risks does a VAT refund entail when exporting?
Let me show you with an example:
You bought or produced goods within Russia.
Let's say its cost is 118 rubles. and VAT paid to the budget is 18 rubles.
In Russia you would sell it with a profit margin of 10%, i.e. for 128 rub.
When selling for export, VAT is 0% and you pay 18 rubles. the VAT paid is removed from the price of the product.
Thus, you sell the product for 110 rubles,
of which 100 rubles is the cost price,
and 10 rub. Your margin (gross profit).
After exporting the goods abroad, based on the results of the tax audit, the budget should have returned VAT 18 rubles to you.
And you would get:
110 rub. The client paid you
18 rub. The budget has been returned to you.
You received 128 rubles.
Of these, costs: cost of goods 100 rubles.
You earned 28 rubles.
What if you did not pass the audit and the VAT was not returned to you?
Then it turns out like this:
110 rub. The client paid you.
Your expenses:
The cost of the product is 100 rubles.
After you have not confirmed the export and have not returned the VAT, according to the Tax Code you are required to pay 18% to the budget from the sale amount, i.e. 110 rub. x 18% = 19.8 rub.
Total your costs: 100 rub. + 19.8 rub. = 119.8 rub.
Total for the transaction: 110 - 119.8 rubles. = -9.8 rub.
Whether you receive a profit or loss from export sales depends on:
- How do you do your accounting?
- How is work with suppliers structured?
- and many other accounting issues.
You can figure everything out yourself and build your accounting as needed, including based on articles on our website, or you can contact our company.
We have been professionally dealing with VAT refunds since 2010.
You can read more about tax audits in the article: Tax audits for VAT refunds
VAT refund when exporting from Russia
What is VAT compensation when shipping goods abroad? This is often called a VAT refund when exporting from Russia.
VAT, or value added tax, is indirect and its rate depends on the type of product. This can be either 10% for vital products or 18% for all other groups of goods.
What is export VAT?
Export VAT is a tax that is determined on goods sold abroad. When purchasing a product in Russia, you have already paid tax on it.
Then you sell it for export, accordingly, VAT on export is 0%. In this case, a situation arises when VAT has been paid, but there is no payment to the budget. That is, when exporting goods, there is an overpayment of VAT to the budget.
Legislatively, the tax inspectorate stipulates a point where you can return money to your account. This is called a zero-rate VAT refund on exports.
How to do it? To begin with, your company will have to undergo a desk audit and provide the necessary documentation for the entire reporting quarter.
Example of export trade - why is it profitable?
Using an example, we can consider how profitable it is for a company to trade outside the Russian Federation.
First, an example of domestic trade:
The company Iceberg LLC purchased goods in the amount of 100,000 rubles. VAT (18%) is 18,000 rubles. If you sell this product in Russia, for example, for 120,000, VAT is 18,305 rubles. (120*18%/118%). Your margin is 120,000 - 100,000 =20,000 rubles. You must pay VAT on this amount. The state will receive 20,000 – 18,000 = 2,000 rubles. This is a tax paid to the state budget. Accordingly, your net profit is 18,000 rubles.
Now consider if this product were sold abroad:
A product with an original cost of 100,000 rubles. VAT for it is 18,000. This product is sold for export for 120,000. In this case, VAT is 0%. According to the tax code, the export rate is 0%. Net profit is 20,000 rubles. But your company has already paid 18% tax, which amounted to 18,000. The state budget must now return this amount to your account. As a result of the export transaction, you can earn 20,000 + 18,000 =38,000 instead of 18,000 rubles.
You can imagine what amounts will be involved if the goods sold amount to millions. The company can get rich on margins alone.
It is not even necessary to sell goods to EU countries, for example, by selling goods to Kazakhstan or Belarus, you can increase your income simply through the margin and get rich.
The 0% rate for export is determined by the Tax Code. The export of goods is regulated by the customs code. The zero rate is applicable for all cases of export of goods outside the Russian Federation. The rate can also be applied to transit countries. This includes:
To sell for export, the enterprise must be on the general taxation system (OSNO). Otherwise, the seller will not be able to take advantage of the 0% rate.
Documents required for zero rate
In order for your company to be able to trade for export, you need to prepare a package of documents.
- Supply contract (copy of the contract) or, as it is called, agreement with a foreign buyer.
- Document from customs. For example, a customs declaration. The papers indicate that the goods crossed the border of the Russian Federation.
- Any accompanying papers or electronic registers with marks from Russian customs officers.
- A copy of the agreement for intermediary services.
Contractual obligations are personally signed by all parties to the contracts.
To confirm the zero VAT rate for export, the seller must submit a tax return to the tax office within six months.
Then the tax authorities do a desk audit, which lasts three months. During the inspection, all documents and data from customs services are verified. If inaccuracies are discovered, tax authorities will require additional data. If you do not provide evidence of discrepancies, the tax authority may cancel the 0% rate for your organization.
In practice, it has been shown that the tax inspectorate is not satisfied with the documents provided by you.
- Verification of the entire reporting quarter, and not just the individual return filed.
- Conduct a counter-check with your supplier to determine how payment is made for goods for export.
- When carrying out control, there must be compliance with the law: a full staff of employees, the presence of an office, licenses to sell these products, the availability of warehouse space.
Export sellers who change their name and legal address within six months from the start of export trade are carefully checked.
As already mentioned, export trade is a very profitable business for companies and entrepreneurs. If they have all the documents and confirmation of a zero export rate, companies can easily earn a large income on the margin itself.
In accordance with the Tax Code, if a company, during a desk audit, does not provide additional documents at the request of the tax authorities, then the use of a zero rate is not permitted, and, accordingly, no refund is due.
However, this does not affect further compensation at the 0% rate. So companies that want to engage in export trading must be prepared for many nuances and “interrogations” from tax authorities.
For details of export operations and VAT, watch this video:
Filling out section 4 of the zero rate declaration
- Section by code 010. This section reflects transaction codes performed during the period.
- Section 020. Tax rates for the past period and for each transaction are reflected there.
- Section 030. Tax deductions are reflected for each completed transaction that was issued upon receipt of goods.
Section 4 of the declaration now fills in all transactions that were performed by the taxpayer. Moreover, the amount is repeated as many times as necessary according to the number of operations. New codes have also been added.
- Codes 060-080, which reflect the return of goods.
- When adjusting the tax amount. This adjustment is made if changes have been made to the price. Codes 090-110.
With the above changes, new sections were introduced - 120, 130. These lines contain data on the amount of tax to be reimbursed, the amount of which was reflected in section No. 4.
That is, we can say that section 4 is filled out by the declarant only when he has all the documentation confirming the legality of the zero rate.
- Line code 060 is reflected by the operation that was given in Appendix 1 to the VAT return.
- Adjustment amounts and tax deductions are entered in lines 070 and 080. These deductions are associated with the operation of returning goods or refusing work.
- Line 090 reflects the operation under code 1010448.
- In line 100, fill in the amount that goes to increase the tax rate on work or goods that have already been sold.
- Line 110 of section No. 4 - the amount that goes to reduce the tax rate is entered.
- The tax amount is indicated in line 120.
VAT refund for export: tax advantages and features of documentary evidence
Leading Lawyer
Dorofeev S.B.
VAT refund for export: what needs to be confirmed first?
Situations leading to the emergence of the right to a VAT refund can be divided into two large groups: export operations and all others (for example, sales at a VAT rate of 10%). The rules for tax refunds from the budget in these cases differ significantly, primarily in that additional requirements are established to receive a VAT refund when exporting.
VAT refund for export consists, in fact, of two stages: confirmation of the 0% VAT rate for export transactions and, in fact, VAT refund, which consists largely of confirmation by the taxpayer to the tax authority of the legality of the deductions applied and the correctness of the calculations made.
The taxpayer is obliged to confirm the reduced tax rate of 0% in relation to export transactions within 180 calendar days starting from the date of placing the goods under the customs export procedure, for which it is necessary to collect a set of documents provided for in Art. 165 Tax Code of the Russian Federation. Otherwise, the taxpayer will be required to calculate VAT on export transactions at general rates (10 or 18%) and pay it for the tax period in which the shipment occurred by submitting an updated tax return, as well as pay penalties for late payment of tax.
These adverse consequences are imposed on the taxpayer due to the fact that when exporting operations before the expiration of 181 days, the taxpayer does not take into account the amount of export operations in the base for calculating the output tax (despite the fact that, from a formal point of view, the sale of goods for export is considered by the Tax Code of the Russian Federation as sales on territory of the Russian Federation).
If the required set of documents is not collected within 181 days, the Tax Code of the Russian Federation requires that the tax consequences of such activities be no different from ordinary sales on the domestic market of the Russian Federation. Therefore, the taxpayer must pay tax for the period of shipment and penalties for late payment.
VAT refund for export: what documents must be submitted to the Federal Tax Service of the Russian Federation?
The specific list of documents submitted to the tax authorities to confirm the zero VAT rate and receive a VAT refund upon export depends on the terms of the export contract, the type of goods (work, services) exported, etc. The specified documents are given in Art. 165 Tax Code of the Russian Federation.
Thus, for “regular” exports outside the Customs Union, the following are provided:
- a contract (a copy thereof) with a foreign person for the supply of goods outside the Customs Union;
- customs declaration (its copy) with the corresponding marks of the customs authorities;
- copies of transport, shipping and (or) other documents with appropriate marks from customs authorities.
It should be noted that this list of documents is the most general, while Art. 165 of the Tax Code of the Russian Federation, in order to confirm a reduced tax rate of 0% in relation to certain specific export transactions (certain types of goods or services or the method of their export), establishes rather different requirements.
At this stage of VAT refund for export, the most important point for the taxpayer is to obtain and provide the tax authority with copies of customs declarations, transport and shipping documents containing the necessary marks of the customs authorities. Literally every such document (on every page) must have a corresponding stamp.
In the absence of such marks from the customs authorities, it will be impossible to confirm the legality of applying the zero rate, even if the possibility of its application can be established on the basis of other documents submitted to the inspection in accordance with Art. 165 Tax Code of the Russian Federation. This approach follows, among other things, from arbitration practice (Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated December 23, 2008 N 10280/08).
The taxpayer can obtain such marks either by independently contacting the relevant customs authority or with the help of a customs representative.
It should also be noted that the list of documents confirming the application of the 0% rate is exhaustive, therefore the requirements of the tax authorities to submit other documents not specified in Art. 165 of the Tax Code of the Russian Federation are unlawful, and the decision to refuse VAT refund is illegal. When considering such disputes, arbitration courts, as a rule, side with the taxpayer (for example, Resolutions of the FAS Moscow District dated 03.08.2009 N KA-A40/7259-09, FAS Volga District dated 26.06.2009 N A12-3559/2008).
It must be remembered that the submission of a complete package of documents that meets the requirements of Art. 165 of the Tax Code of the Russian Federation does not entail the automatic application of a tax rate of 0% and the receipt of a VAT refund upon export. This is only a condition confirming the fact of real export and payment of VAT. Therefore, when deciding on the application of a 0% rate and tax deductions, tax authorities take into account the results of checks of the accuracy, completeness and consistency of the submitted documents, as well as data on the actual implementation of activities. In addition, the results of verification of the fulfillment of taxpayers' obligations to pay VAT to the budget are taken into account.
With regard to the specific requirements for the preparation of documents necessary to confirm the 0% rate, we note that these documents must comply with the requirements of the legislation of the Russian Federation or international legislation. At the same time, there are currently so many disputes between taxpayers and tax authorities regarding these requirements that it is not possible to describe all possible nuances in general, not in relation to specific documents.
In any case, taxpayers starting to carry out export operations are strongly recommended to study in advance the possible requirements of the tax authorities for documents drawn up during their specific operations, as well as the practice of disputes regarding them.
After the documents according to the relevant list have been collected, it is necessary to calculate the tax and fill out section. 4 tax return, and also submit it to the tax authority.
How to speed up VAT refunds when exporting?
In order for VAT refunds on exports to occur faster, the taxpayer has the right to claim deductions related to export activities, simultaneously with the provision of documents confirming the VAT rate of 0%. In this case, the tax authority will, within the framework of one desk audit, check the validity of the application of this rate and the legality of the application of tax deductions.
If everything was done correctly, after just over 3 months the taxpayer will receive a VAT refund on export to his account.
The above recommendations are general; the specific procedure for a taxpayer to obtain a VAT refund when exporting depends on the type of business transactions leading to a VAT refund, as well as the specific circumstances of his activity.
VAT on exports of goods in 2017-2018 (refund)
VAT on the export of goods in 2017-2018 was marked by quite significant changes. The procedure for accounting for VAT in 2017-2018 on export revenue will be discussed in our section dedicated to VAT refund on export .
Export VAT - what is it?
Export VAT is considered to be a tax that arises when goods are sold outside the Russian Federation. When exporting goods, the taxpayer applies a 0% rate, which effectively exempts him from paying tax on such transactions. But if it was not possible to justify the specified rate within the period allotted by the norms of the Tax Code of the Russian Federation, VAT will have to be paid to the budget.
Since 2018, the application of a 0% rate for exports is optional. You can refuse to use it. About this - in the material “Zero” VAT rate has become optional.”
When making “external” shipments, it is necessary to take into account the provisions of Art. 170 of the Tax Code of the Russian Federation on maintaining separate records of taxable and non-taxable transactions.
In order to understand how this type of accounting is carried out, we advise you to familiarize yourself with the topic “How is separate accounting of VAT carried out on exports? ».
- to the countries of the EAEU;
- other foreign countries.
Features of confirming the 0% VAT rate when exporting to the EAEU countries
A distinctive feature of sales to the EAEU countries is the presence of a simplified export procedure, which is due to the agreement between the countries on mutual cooperation.
Therefore, the general list of documents justifying the 0% rate is small and consists of:
- from the contract;
- shipping and transport documents;
- import application or list of applications.
Clause 4 of Appendix 18 to the Treaty on the EAEU stipulates that one of the documents to confirm the zero rate is a bank statement. Why the bank statement is not in the above list, read the material “A bank statement is not required to confirm export to the EAEU” .
What documents can be used to confirm the zero rate if the buyer exports goods to the EAEU states independently, read the publication “Export to the EAEU states: how to confirm the zero VAT rate when goods are self-exported by the buyer” .
We also advise you to pay attention to the requirements for confirmation of the rate when exporting to other countries through the territories of the EAEU countries. You will learn about them from the article “How to confirm a 0% rate if goods are exported without border customs control ».
Like any shipment, exports require an invoice to be issued within 5 days from the date of sale. It is important to pay attention to the registration procedure in case of selling goods through a branch. Read about it in our material « When exporting goods to Armenia, Belarus or Kazakhstan through a division, it is better to indicate the checkpoint of the head office in the invoice." .
You will find out whether such an invoice should be submitted to the Federal Tax Service to justify the 0% rate. Here .
For information on how to take into account the advance amount received by the exporter from its foreign counterparty, see the material “How to take into account advances from partners from the EAEU for VAT purposes? ».
Are the rules for confirming the zero VAT rate when exporting to the EAEU countries and CIS countries the same, read the publication « How to confirm the 0% VAT rate when exporting to CIS countries? .
Confirmation of 0% VAT rate when exporting to other countries
The main documents in this case are:
- customs declaration.
- Contract.
- shipping documents.
The customs declaration can be temporary or complete. Which one is suitable for export confirmation, read in this publication .
The customs declaration can be issued electronically. Is it possible to use a paper copy of it to confirm export? Here .
From the 4th quarter of 2015, some documents from the list can be replaced by registers, the formats of which can be found in the publication “Forms and formats of registers have been approved to confirm the VAT rate of 0%” . For registers of documents confirming the 0% rate, there are also control ratios. For more information about them, see the materials:
What rules for confirming the zero rate apply when exporting to the Ukrainian-controlled Donetsk People's Republic, read the material “How to confirm the export of goods to the territory of the DPR” .
Are there any features of confirming the zero rate if the ownership of the exported goods passes to a foreign buyer in Russia, read in the publication “The moment of transfer of ownership is not important for the zero VAT rate” .
When the zero VAT rate for export becomes non-zero
In accordance with Art. 165 of the Tax Code of the Russian Federation, if sellers selling goods for export do not collect a package of documents justifying the 0% rate, they will have to fulfill their obligation to pay tax. You will have to pay tax at rates of 10 or 18%. This article talks about this in more detail. “What to do if the export is not confirmed within the prescribed period ».
At the same time, the VAT tax base will be increased by the cost of goods for unconfirmed exports. Its method of determination is discussed in the article « Tax base for export - market value of goods under the contract ».
VAT refund when exporting goods
After the stage of submitting to the Federal Tax Service all necessary documents justifying shipment outside the Russian Federation, a desk audit begins, the purpose of which is to determine the validity of the application of the export rate. The procedure for accounting and refunding export VAT can be found in the following articles:
It should be noted that, in accordance with the Tax Code of the Russian Federation, after 180 days from the date of a foreign trade transaction, in the event of non-confirmation of export, companies or individual entrepreneurs charge tax, however, this does not deprive them of the opportunity to use the 0% rate later.
However, tax legislation, while limiting the period of export confirmation, does not indicate the moment from which the specified period should be calculated. This issue is discussed in more detail in the articles:
Deduction for export transactions
Exporter in accordance with Art. 172 of the Tax Code of the Russian Federation can take advantage of the deduction. At the same time, for export transactions, the deduction is applied to the amounts of input VAT, i.e., the tax paid upon the acquisition of goods (work, services) subsequently sent for export. From July 1, 2016, the deduction of input VAT for exporters of primary and non-commodity goods is carried out according to different rules.
What goods are classified as raw materials, you will learn from the material “Which goods are raw materials for deducting VAT from the exporter” .
Read about the use of deductions by exporters of non-commodity goods in the material “Non-resource exporters apply deductions according to the general rules” .
Exporters of primary goods must restore input VAT on purchased goods (works, services) that are used for export operations. When you need to do this, read the material “VAT on goods used for the export of raw materials is being restored” .
You can also read about the specifics of applying deductions within export operations in the article « How to apply VAT deduction on export transactions ».
Return of defects during export
The shipment and return of defective goods occurs not only in the domestic market, but also when sold for export. If a defective product is returned by a foreign supplier, the exporter faces questions: can such a return be regarded as an import and is it necessary to pay VAT in this case? You will find answers to them in the materials:
Export invoices
When selling goods, works, services both on the domestic market and for export, it is necessary to draw up an invoice. When selling on the domestic market, an invoice can be drawn up electronically or a universal transfer document (UTD) can be issued. Is it possible to create an electronic invoice or UTD when selling for export? Read the materials:
Situation: is it possible to apply a zero VAT rate when exporting goods whose buyer is a resident of a state that is not a member of the Customs Union, and the consignee is a resident of a state that is a member of the Customs Union? Ownership of the goods does not pass to the consignee
It is possible, provided that the tax is paid on the territory of a member state of the Customs Union .
Despite the fact that the buyer is not a resident of a state that is a member of the Customs Union, in the situation under consideration there is an actual movement of goods between the territories of the member states of the Customs Union.
The procedure for collecting VAT on the import and export of goods between member states of the Customs Union is established by Appendix 18 to the Treaty on the Eurasian Economic Union. In this case, the Russian organization is recognized as an exporter of goods to the territory of a state party to the Customs Union and, accordingly, has the right to apply a zero VAT rate (clause 3 of Appendix 18 to the Treaty on the Eurasian Economic Union). However, to confirm the application of the zero VAT rate when exporting goods to a member state of the Customs Union, a Russian organization must:
- fill out a VAT return and submit it to the tax office along with a package of documents confirming the fact of export to the member states of the Customs Union.
This follows from the provisions of paragraph 4 of Annex 18 to the Treaty on the Eurasian Economic Union.
When preparing a package of documents to confirm the zero VAT rate, a Russian organization needs to pay special attention to documenting the transaction. In particular, agreements (contracts) on the basis of which goods are exported. If the importer is mentioned in an export contract with a foreign organization only as a consignee, then you should receive from him a document confirming the payment of VAT when importing goods into the territory of a member state of the Customs Union. Such a document is an application for the import of goods and payment of indirect taxes, received either from the consignee - a resident of a member state of the Customs Union, or from a foreign organization - the buyer of goods (if it is tax registered in this state). In this case, the application must contain a mark from the tax inspectorate of the member state of the Customs Union regarding the payment of VAT.
Similar clarifications are contained in letters of the Ministry of Finance of Russia dated March 1, 2013 No. 03-07-08/6170 and dated September 13, 2010 No. 03-07-08/269. Despite the fact that these letters were issued before the entry into force of the Treaty on the Eurasian Economic Union, they can still be applied today.
If a Russian organization does not have such a statement, it does not have the right to apply a zero VAT rate. In this case, when selling goods, it will have to charge a tax at a rate of 18 or 10 percent. This follows from the provisions of paragraph 5 of Annex 18 to the Treaty on the Eurasian Economic Union.
Situation: is it possible to apply a zero VAT rate on exports if the buyer is a resident of a state that is not a member of the Customs Union? The goods are exported to the territory of the Customs Union, but ownership of it is transferred to the territory of Russia
Answer: yes, it is possible, provided that the tax is paid on the territory of a member state of the Customs Union.
Despite the fact that the buyer of the goods is a resident of a foreign state that is not a member of the Customs Union, in the situation under consideration there is an actual movement of goods between the territories of the member states of the Customs Union.
The procedure for collecting VAT on the import and export of goods between member states of the Customs Union is established by Appendix 18 to the Treaty on the Eurasian Economic Union. In this case, the Russian organization is recognized as an exporter of goods to the territory of a state party to the Customs Union and, accordingly, has the right to apply a zero VAT rate (clause 3 of Appendix 18 to the Treaty on the Eurasian Economic Union). The zero rate applies regardless of the fact that ownership of the goods passes from the seller to the buyer in Russia.
To confirm the right to a zero VAT rate when exporting goods to a member state of the Customs Union, a Russian organization must:
- collect a package of documents confirming the fact of export;
- fill out a VAT return and submit it to the tax office along with a package of documents confirming the fact of export to the member states of the Customs Union.
This follows from the provisions of paragraph 4 of Annex 18 to the Treaty on the Eurasian Economic Union and letters from the Ministry of Finance of Russia dated March 1, 2013 No. 03-07-08/6170, dated January 31, 2013 No. 03-07-08/1914 and dated 13 September 2010 No. 03-07-08/269.
Thus, a Russian organization will be able to apply a zero VAT rate if it confirms that VAT has been paid in the territory of a member state of the Customs Union (where the goods were delivered). A document confirming the payment of VAT can be an application for the import of goods and payment of indirect taxes received from a foreign organization - the buyer of goods (if it is registered with the tax authorities in this state). In this case, the application must contain a mark from the tax inspectorate of the member state of the Customs Union regarding the payment of VAT. If a Russian organization does not have such a statement, it does not have the right to apply a zero VAT rate. In this case, when selling goods, it will have to charge a tax at a rate of 18 or 10 percent. This follows from the provisions of paragraph 5 of Annex 18 to the Treaty on the Eurasian Economic Union.
VAT rate
Export of goods, like most other transactions, is subject to VAT. However, when exporting, the tax rate differs from the usual one and is 0 percent (Clause 1, Article 164 of the Tax Code of the Russian Federation).
Certain categories of work (services) related to the export of goods (including for export) are taxed at a rate of 0 percent. These include:
1) services for the international transportation of goods.
- services for the transportation of goods by sea, river vessels, mixed (river-sea) vessels, aircraft, railway transport and vehicles, in which the point of departure or destination of the goods is located outside the territory of Russia (paragraph 1, subparagraph 2.1, paragraph 1 Article 164 of the Tax Code of the Russian Federation);
- services for the provision of own (rented, leased) railway rolling stock and (or) containers for international transportation (paragraph 3, sub-clause 2.1, sub-clause 2.7, paragraph 1, sub-clause 3.1, clause 1, article 164 of the Tax Code of the Russian Federation);
- transport and forwarding services provided under a transport expedition contract when organizing international transportation (paragraph 4, sub-clause 2.1, sub-clause 2.7, paragraph 2, sub-clause 3.1, clause 1, article 164 of the Tax Code of the Russian Federation).
This category does not include the services of Russian carriers on railway transport, listed in subparagraphs 9 and 9.1 of paragraph 1 of Article 164 of the Tax Code of the Russian Federation, which are also subject to VAT at a zero rate;
2) work (services) performed (provided) by pipeline transport organizations for the transportation of oil and petroleum products, as well as transshipment and (or) reloading of oil and petroleum products exported outside of Russia (subclause 2.2, clause 1, article 164 of the Tax Code of the Russian Federation);
3) services for organizing the transportation by pipeline of natural gas exported outside Russia (subclause 2.3, clause 1, article 164 of the Tax Code of the Russian Federation);
4) services for the transfer of electricity from the electrical power system of Russia to the electrical power systems of foreign countries (subclause 2.4, clause 1, article 164 of the Tax Code of the Russian Federation);
5) work (services) performed (provided) by Russian organizations (except for pipeline transport organizations) in sea and river ports for transshipment and storage of goods exported outside Russia (subclause 2.5, clause 1, article 164 of the Tax Code of the Russian Federation);
6) work (services) for processing goods placed under the customs procedure of processing on the customs territory (subclause 2.6, clause 1, article 164 of the Tax Code of the Russian Federation);
7) work (services) performed (provided) by inland water transport organizations in relation to goods exported in the customs export procedure when transporting (transporting) goods across Russian territory (subclause 2.8, clause 1, article 164 of the Tax Code of the Russian Federation).
Conditions for applying the zero VAT rate
Application of a zero VAT tax rate need to be justified . To do this, the exporting organization must:
- confirm the fact of export of goods (the fact of performance of work (provision of services) related to the export of goods for export) with documents, the list of which is given in Article 165 of the Tax Code of the Russian Federation (clause 9 of Article 165 of the Tax Code of the Russian Federation);
- fill out the relevant sections of the VAT return and submit it to the tax office along with the collected package of documents (clause 10 of article 165 of the Tax Code of the Russian Federation).
To collect documents confirming the right to apply a 0 percent VAT rate, the organization is given 180 calendar days.
For goods, the 180-day period is counted starting from the day the goods are placed under the customs export procedure (paragraph 1, clause 9, article 165 of the Tax Code of the Russian Federation). Features of the preparation of documents confirming the right to apply a 0 percent VAT rate when exporting goods are presented in table.
In relation to work (services) related to the export of goods (including for export), the 180-day period is determined in depending on the type of work performed (services provided) .
The tax base
The tax base for VAT must be determined on the last day of the quarter in which the full package of documents provided for in Article 165 of the Tax Code of the Russian Federation is collected. This follows from the provisions of paragraph 9 of Article 167 of the Tax Code of the Russian Federation.
Calculate the amount of the tax base in rubles at the exchange rate on the date of shipment of goods (clause 3 of Article 153 of the Tax Code of the Russian Federation). This procedure applies even if a 100% advance payment is received from the buyer for the supply of goods for export. Such clarifications are contained in the letter of the Ministry of Finance of Russia dated September 12, 2012 No. 03-07-15/123 (brought to the attention of the tax inspectorates by letter of the Federal Tax Service of Russia dated October 3, 2012 No. ED-4-3/16657). Do not charge VAT on advances received for upcoming export deliveries (paragraph 4, clause 1, article 154 of the Tax Code of the Russian Federation). If payment in foreign currency is received after the date of shipment, then do not take into account exchange rate differences when determining the tax base - it will remain unchanged.
Right to deduct VAT
Situation: how to calculate and deduct VAT when exporting petroleum products if, as a result of losses during transportation, the volume of goods shipped does not coincide with the volume of goods originally indicated in the cargo customs declaration?
Do not charge VAT on the cost of losses. And deduct input VAT within the limits of natural loss norms. The explanations here are as follows.
If the seller lost some of the goods during transportation, this does not mean that he sold them, transferred them to someone, or performed another transaction subject to VAT in accordance with Article 146 of the Tax Code of the Russian Federation. Therefore, there is no need to charge VAT on the cost of lost cargo.
It is possible to deduct the amount of input tax on export transactions only in relation to goods actually exported outside of Russia (subclause 3 of Article 165 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated August 9, 2012 No. 03-07-08/244). Therefore, when column 38 of the cargo customs declaration indicates one weight or quantity of goods, and on the “goods exported” stamp these indicators are less, to calculate the deduction, use the value indicated specifically on the stamp. At the same time, VAT on the cost of losses can be deducted only within the limits of natural loss norms. VAT on the cost of goods lost in excess of the norms of natural loss cannot be claimed as a deduction. This procedure follows from paragraph 7 of Article 171 of the Tax Code of the Russian Federation and letters of the Ministry of Finance of Russia dated August 9, 2012 No. 03-07-08/244, dated January 11, 2008 No. 03-07-11/02.
An example of reflecting in accounting transactions for calculating VAT when exporting goods. Export VAT confirmed
On October 3, Alpha LLC purchased a shipment of wood for RUB 590,000. (including VAT - 90,000 rubles) and paid for the purchased goods.
In the same month, Alpha signed a contract for the supply of wood to Finland. The export contract price is USD 30,000.
The wood was shipped to the buyer on October 18. The same date is indicated in the “Release permitted” mark on the customs declaration. Payment from the Finnish company was received on October 25. Selling expenses amounted to 3,000 rubles.
The conventional US dollar exchange rate was:
- October 18 - 30 rub./USD;
- October 25 - 31 rub./USD.
Alpha's accountant made the following entries in the accounting records (the accrual of customs duties is not considered).
Debit 41 Credit 60
- 500,000 rub. (RUB 590,000 - RUB 90,000) - wood was posted to the warehouse;
Debit 19 Credit 60
- 90,000 rub. - input VAT on purchased wood has been taken into account (based on the supplier’s invoice);
Debit 60 Credit 51
- 590,000 rub. - money is transferred to the supplier.
Debit 62 Credit 90-1
- 900,000 rub. (30,000 USD × 30 rubles/USD) - revenue from the sale of goods for export is reflected;
Debit 90-2 Credit 41
- 500,000 rub. - the cost of goods sold is written off;
Debit 90-2 Credit 44
- 3000 rub. - sales expenses are written off.
Debit 52 sub-account “Transit currency account” Credit 62
- 930,000 rub. (30,000 USD × 31 rubles/USD) - money received under an export contract;
Debit 62 Credit 91-1
- 30,000 rub. (930,000 rubles - 900,000 rubles) - a positive exchange rate difference is reflected.
In December, Alpha collected all the documents confirming exports and submitted them to the tax office along with the VAT return for the fourth quarter. The accountant made the following entry in accounting:
Debit 68 subaccount “VAT calculations” Credit 19
- 90,000 rub. - input VAT paid to the supplier of exported goods is accepted for deduction.
In the VAT return, Alpha's accountant indicated export proceeds, converted into rubles on the date of shipment of goods:
30,000 USD × 30 rubles/USD = 900,000 rubles.
In the fourth quarter, Alpha did not charge VAT at rates other than 0 percent. Therefore, at the end of this quarter, the amount of tax deduction exceeds the amount of VAT on sales (the VAT refundable is reflected in the declaration). Alpha does not use the application procedure for VAT refund. After a desk audit, the tax inspectorate decided to reimburse the organization for input VAT paid to the supplier of exported goods (Article 176 of the Tax Code of the Russian Federation).
VAT on unconfirmed exports
If, after 180 calendar days, the organization does not submit to the tax office a package of documents confirming the export of goods (performance of work (provision of services) related to the production and sale of exported goods), it must charge VAT at a rate of 10 or 18 percent (clause 9 of Art. 165 of the Tax Code of the Russian Federation).
In this case, the moment of determining the tax base is considered to be:
- in the general case - the day of shipment (transfer) of goods (performance of work, provision of services);
- during reorganization (if the reorganization ended before the period for confirming the right to a zero rate expired, i.e. no later than the 181st calendar day from the date of placing the goods under the customs export procedure) - the date of completion of the reorganization.
This is stated in paragraphs 1 and 9 of Article 167 of the Tax Code of the Russian Federation.
An example of determining the moment of VAT calculation during the reorganization of an organization. Export VAT not confirmed
Alpha LLC exported a consignment of goods on January 19. On June 20, Alpha was transformed into LLC Trading Company Hermes.
By July 18 (the 180th calendar day from the date of registration of the customs declaration), Hermes did not have time to collect a package of documents confirming export. Therefore, the accountant charged VAT on exported products at a rate of 18 percent.
VAT was charged on the day the reorganization was completed - June 20. It was transferred to the budget on July 14. Since the deadline for payment of VAT accrued for the second quarter expires only on July 20, there is no delay in the tax accrued on exported goods.
If there had been no reorganization process, Alpha would have had to charge VAT on January 19.
If the organization subsequently submits to the tax inspectorate a package of documents justifying the application of a zero tax rate, the paid amounts of VAT at a rate of 10 or 18 percent can be deducted (clause 10 of Article 171, paragraph 2 of clause 3 of Article 172 of the Tax Code of the Russian Federation) .
The amount of input VAT on goods (work, services) that are used to carry out an unconfirmed export transaction can be deducted on the date of shipment of goods for export (clause 3 of Article 172 of the Tax Code of the Russian Federation).
For more information on what to do if an organization has not collected the required package of documents within the prescribed period, see How to calculate VAT for unconfirmed exports .
The calculation of VAT for export transactions is associated with a number of features. Sales for export allow the taxpayer to take advantage of a preferential rate on this tax, but for this it is necessary to fulfill a number of conditions. Let's look at how VAT is calculated for exports, taking into account all legal requirements.
Application of preferential rates when selling for export
VAT on exports of goods in 2018 is calculated at a preferential rate of 0%. But in order to obtain the right to use it, the taxpayer needs to generate a set of documents and submit it to the tax authorities within the established time frame.
The list of required documents is given in paragraph 1 of Art. 165 of the Tax Code of the Russian Federation and includes:
- Contract with a foreign counterparty.
- Declaration with a mark from the customs authority.
- Documents confirming the shipment of goods with marks from customs authorities (bills of lading, goods and transport, sea or air waybills, etc.).
- Documents confirming payment (when sending goods by mail).
Documents must be provided within 180 days from the date the goods are placed under the customs export regime.
If the taxpayer does not have time to do this, then the sale is taxed on a general basis, i.e. a rate of 10% or 18% is applied depending on the category of goods.
VAT refund when exporting from Russia
VAT calculation consists of two “halves” – accrual and deduction. We discussed the conditions under which the accrual benefit applies above. As for the deduction, its application depends on whether the exported product belongs to the category of raw materials.
After changes made to the Tax Code of the Russian Federation in 2016, the deduction for export sales of non-commodity goods is applied on a general basis.
Those. it can be used in the period when the exporter purchased goods (services) related to the export supply and received an invoice, regardless of the availability of documents confirming the export listed above.
As for raw materials, a special procedure for applying the deduction has been retained for them, which will be discussed in the next section.
Features of applying the deduction for raw material exports
First of all, it is necessary to understand which goods are classified as raw materials for VAT deduction purposes. Their list is given in paragraph 10 of Art. 165 Tax Code of the Russian Federation:
- Mineral raw materials and products (oil and its derivatives, ores, coal, natural gas, fertilizers).
- Products of the chemical industry and related industries.
- Wood and wooden products.
- Precious and semi-precious stones and metals, as well as products made from them.
The list of goods indicating the specific nomenclature and HS codes must be approved by the Government of the Russian Federation, but at the moment this has not yet been done. Therefore, the Ministry of Finance, before the appearance of the approved list, recommends comparing the names of the product groups specified in paragraph 10 of Art. 165 of the Tax Code of the Russian Federation with the corresponding groups from the Commodity Nomenclature of Foreign Economic Activity (letter of the Ministry of Finance of the Russian Federation dated February 28, 2018 N 03-07-08/12477).
When exporting goods belonging to these groups, the taxpayer must keep separate records of “input” VAT.
The tax in the part related to the export of raw materials can be deducted only after the tax base for the export shipment has been formed, i.e. upon the occurrence of one of the following events:
- The taxpayer provided all the necessary documents and confirmed the right to apply the zero rate.
- The taxpayer did not manage to collect documents within the prescribed period (180 days) and was charged VAT at a rate of 10% or 18%.
Example
Alpha LLC sold equipment worth RUB 100 million for export. excluding VAT and timber in the amount of 200 million rubles. without VAT. All documents confirming export were collected within the established time frame. Taxable expenses totaled RUB 220 million. excluding VAT, including those related to the sale of wood – 150 million rubles. without VAT.
Deduction for costs associated with the sale of equipment (applied in the tax period in which the costs were incurred and invoices received):
B1 = (220 million rubles – 150 million rubles) x 18% = 12.6 million rubles.
Deduction for costs associated with the sale of wood (applied in the tax period in which the package of supporting documents was collected):
B2 = 150 million rubles. x 18% = 27.0 million rubles.
Total amount of deduction for export operations of Alpha LLC:
B = 12.6 million rubles. + 27.0 million rub. = 39.6 million rubles.
Conclusion
VAT refund for export depends on the category of goods sold. If it relates to raw materials, then the deduction depends on confirmation of export. For other product groups, the deduction is made in the same way as sales on the domestic market, based on invoices received from suppliers.
VAT is one of the main taxes levied in the Russian Federation. We decided to briefly recall the most significant points that taxpayers engaged in or planning to engage in transactions on world markets should know.
General provisions
VAT is a federal indirect tax that is included in the price of a product, work or service.
It must be paid by all business entities with the exception of:
· entities exempt from taxpayer obligations on the grounds provided for in Articles 145.1 of the Tax Code.
In addition, business entities whose total revenue for the three previous consecutive calendar months does not exceed 2 million rubles may be exempt from taxpayer obligations. This right is granted to companies and entrepreneurs by paragraph 1 of Article 145 of the Tax Code. But there are exceptions - companies selling excisable goods and other products listed in Article 145.1 of the Tax Code.
In the latter case, the decision to exempt from VAT is made voluntarily. Anyone wishing to take advantage of this preference must submit the following documents to their tax authority:
· notification of the use of the right to exemption from VAT (approved by order of the Ministry of Taxes of Russia dated July 4, 2002 No. BG-3-03/342);
This package of documents should be submitted to the tax authority no later than the 20th day of the month, starting from which business entities plan to apply the exemption from taxpayer obligations.
Please note: when issuing an invoice with an allocated VAT amount to buyers, the seller is required to pay the tax, regardless of whether he is a VAT payer or not. The basis is paragraph 5 of Article 173 of the Tax Code.
VAT on export transactions
As for foreign economic transactions (export and import), all companies and individual entrepreneurs pay VAT on them. Exceptions are listed in paragraph 2 of Article 143 of the Tax Code.
However, when goods are sent for export, their value is usually taxed at a rate of 0%. This procedure is provided for in subparagraph 1 of paragraph 1 of Article 164 of the Tax Code.
Thus, a tax base is formed for exports. And the corresponding amounts of “input” VAT are subject to deduction in the general manner.
To confirm the right to apply the zero VAT rate, the payer must submit to the tax authorities:
· a copy of the contract with a foreign person for the supply of goods outside the single customs territory of the Customs Union;
· customs declaration (copy of the customs declaration) with marks of the Russian customs authority that released the goods in the export procedure, and the Russian customs authority of the place of departure through which the goods were exported from the territory of the Russian Federation and other territories under its jurisdiction;
· copies of transport, shipping and (or) other documents with marks from the customs authorities of the places of departure, confirming the export of goods outside Russian territory.
If goods are sold through an intermediary, then the following must be additionally presented:
· copies of the commission agreement (agency agreement, agency agreement);
· a copy of the contract between the person supplying goods for export, on behalf of the taxpayer, with a foreign person for the supply of goods outside the customs territory of the Customs Union or outside the Russian Federation.
Please note: the deadline for submitting the “export” package of documents is 180 calendar days. In this case, the countdown should be carried out from the moment the goods are placed under the customs export procedure. If you do not do this, you will have to pay VAT at the usual rate (10% or 18%). But if the documents are subsequently “found,” then the taxpayer has the right to return the amounts of overpaid tax on the basis of Articles and 176.1 of the Tax Code.
VAT on imports
The importation of goods into the territory of the Russian Federation is an operation subject to VAT.
That is, when importing, the company must pay not only customs duties, but also VAT.
The taxpayer has the right to accept the VAT paid when importing goods for reimbursement on the basis of the provisions of paragraph 2 of Article 171 and paragraph 1 of Article 172 of the Tax Code.
An importer has the right to deduct VAT when:
· the purchased goods are planned to be used in operations that are subject to VAT or for resale;
· imported property is placed on the balance sheet of the enterprise.
The taxpayer must have a document confirming payment of import VAT.
VAT deduction is provided for goods that were imported into the territory of the Russian Federation under customs procedures (clause 2 of Article 171 of the Tax Code of the Russian Federation):
· release for domestic consumption;
· temporary import;
· processing outside the customs territory.
VAT deduction can also be provided when importing property without customs clearance.
To confirm his right to an “import” deduction, the taxpayer must submit the following documents:
· agreement with a foreign counterparty;
· account (invoice);
· customs declaration;
· payment documents;
· invoice.
The purchase ledger should include the following information:
· number and date of the customs declaration;
· VAT amount;
· details of the relevant payment document.
Please note: the actual payment of VAT can be confirmed by the form, which is given in Appendix 1 to the order of the Federal Customs Service of Russia dated December 23, 2010 No. 2554. Such confirmation is issued by customs authorities.
Don’t forget about the journal of received invoices and the purchase book. The following details are entered:
· applications for the import of goods and payment of indirect taxes with marks from the tax office;
· payment order for payment of VAT.
However, in some cases, the importer does not accept VAT as a deduction, but must be included in the cost of the imported property. The basis is paragraph 2 of Article 170 of the Tax Code.
So, VAT is included in the price when purchasing goods:
· which are not subject to taxation (exempt from taxation);
· for their implementation outside Russian territory;
· persons who are not VAT payers or who have been exempted from performing relevant duties;
· which will be used for the production of products, the sale of which is not subject to VAT.
Please note: if the scope of application of goods (transactions not subject to VAT) is clarified after VAT has been accepted for deduction, then its amount should be restored. The basis is subparagraph 2 of paragraph 3 of Article 170 of the Tax Code (see, for example, letter of the Federal Tax Service of Russia for Moscow dated October 28, 2009 No. 16-15/113543).
Summary:
1. VAT is a federal indirect tax that is included in the price of goods, work or services.
2. Certain categories of taxpayers may be exempt from VAT.
3. In general, exports are taxed at a rate of 0%.
4. The deadline for submitting the “export” package of documents is 180 calendar days.
5. The importation of goods into the territory of the Russian Federation is an operation subject to VAT.
6. The taxpayer has the right to reimburse VAT paid when importing goods into the territory of the Russian Federation.
As is known, the VAT rate for the export of goods (export outside the Russian Federation) is 0% if the necessary package of supporting documents is collected within 180 days (clause 1, clause 1, article 164 of the Tax Code of the Russian Federation, clauses 2, 3 of the Protocol on collection of indirect taxes (Appendix No. 18 to the Treaty on the Eurasian Economic Union)). If documents to confirm VAT upon export are not collected, then the rate is 18% on the date of shipment.
At the same time, in both cases, the exporter has the right to deduct “input” VAT on goods (work, services) related to export shipment (clause 2 of Article 171, clause 3 of Article 172 of the Tax Code of the Russian Federation). Previously, the VAT tax deduction for exports was declared in a special manner - at the time the tax base was determined. That is, on the last day of the quarter in which the full package of documents listed in Article 165 of the Tax Code of the Russian Federation is collected, or during the shipment period if the package is not collected on time.
Thus, the deduction of VAT was postponed for a long period after the goods (work, services) intended for the export operation were accepted for accounting. This rule put exporters in an unequal position compared to companies selling goods on the domestic market at rates of 18% (10%).
What has changed since July 1, 2016?
From July 1, 2016, thanks to the Law of May 30, 2016 N 150-FZ, the situation with the export deduction has changed.
In paragraph 3 of Article 172 of the Tax Code of the Russian Federation, a new paragraph has appeared, thanks to which the rule on a special procedure for export deductions will not apply to operations for the sale of goods specified in subparagraphs 1 and 6 of paragraph 1 of Article 164 of the Tax Code of the Russian Federation.
That is, input VAT related to the export supply of goods listed in the above subparagraphs is now accepted for deduction in the general manner - on the date of acceptance of goods, works, and services for accounting. Law No. 150-FZ determines that this rule applies only to goods (work, services) accepted for accounting after July 1, 2016.
Let us recall that in subparagraph 6 of paragraph 1 of Article 164 of the Tax Code of the Russian Federation we are talking about the sale of precious metals by taxpayers engaged in their extraction or production from scrap and waste containing precious metals, to the State Fund of Precious Metals and Precious Stones of the Russian Federation, funds of precious metals and precious stones of constituent entities RF, Bank of Russia, banks. Those persons who can be recognized as subjects of mining and production of precious metals in accordance with special legislation on subsoil, precious stones and precious metals, that is, first of all, having a license for the right to use subsoil plots (clause 19 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation dated May 30, 2014 N 33).
But the majority of goods that have received the right to an accelerated tax deduction relate to subparagraph 1 of paragraph 1 of Article 164 of the Tax Code of the Russian Federation, that is, they sell goods exported under the customs export procedure, as well as goods placed under the customs procedure of a free customs zone.
So, from July 1, 2016, when selling goods listed in subparagraphs 1 and 6 of paragraph 1 of Article 164 of the Tax Code of the Russian Federation, in order to deduct input VAT amounts, you do not have to wait for a package of documents to be collected (not collected) and the moment to determine the tax base. Deductions for goods (works, services) used for export operations are made in the general manner: if there is a supplier invoice and the goods, works, services are accepted for registration. In addition, exporters of goods listed in subparagraphs 1 and 6 of paragraph 1 of Article 164 of the Tax Code of the Russian Federation no longer need to establish in their accounting policies the rules for separate accounting of “input” VAT when exporting goods (paragraph 10 of Article 165 of the Tax Code of the Russian Federation has been changed).
An exception to the new rule are raw materials exported under the export regime or placed under the customs procedure of a free customs zone.
For them, the previous procedure remains the same: input VAT is deducted at the time the tax base is determined.
The concept of raw materials is given in paragraph 10 of Article 165 of the Tax Code of the Russian Federation. These are mineral products, products of the chemical industry and other related industries, wood and wood products, charcoal, pearls, precious and semi-precious stones, precious metals, base metals and products made from them. The same paragraph states that codes for types of raw materials in accordance with the unified Commodity Nomenclature for Foreign Economic Activity of the EAEU are determined by the Government of the Russian Federation.
This list has not yet been approved. However, even if it is approved in the near future, then by virtue of Article 5 of the Tax Code of the Russian Federation it will come into force no earlier than one month from the date of official publication and no earlier than the 1st day of the next tax period, that is, no earlier than October 1st. Therefore, the list will not be used in the 3rd quarter in any case.
What should an exporter do? While this list has not been approved by the Government, you can use the unified Commodity Nomenclature for Foreign Economic Activity of the EAEU (approved by Decision of the Council of the Eurasian Economic Commission dated July 16, 2012 N 54). In particular, sections 5 (mineral products), 6 (products of the chemical industry and other related industries), 9, group 44 (wood and wood products, charcoal), 14 (pearls, precious and semi-precious stones, precious metals ), 15 (base metals and products made from them).
If goods were accepted for accounting before July 1, 2016.
Let us repeat, all of the above amendments apply only to those goods (works, services) that will be accepted for registration starting from July 1, 2016, respectively, and to those export transactions that will be carried out starting from the named date (clause 2 of Article 2 Law N 150-FZ).
That is, the deduction of goods (work, services) accepted for accounting from July 1 and intended for export shipment of non-commodity goods, from the 3rd quarter of 2016, will be reflected according to the general rules in Section 3 of the VAT tax return. However, if goods (work, services) were registered before July 1, 2016, they still need to keep separate accounting records of input VAT upon export and claim a tax deduction in the “old” procedure: either in the period when the package is collected , or on the date of shipment if the package is not assembled.
For example, goods were purchased and accepted for accounting in June. In the 2nd quarter, VAT was deducted because it was believed that the goods would be sold on the domestic market. But the goods were never sold within the country, and in August they were shipped for export. We believe that in this situation, during the period of shipment of goods for export, VAT should be restored for payment to the budget, and deducted already in the period when the package of documents is collected.
VAT when exporting goods to the EAEU
The rules for paying VAT when exporting goods to the EAEU countries (Belarus, Armenia, Kazakhstan, Kyrgyzstan) are enshrined in the Protocol on the procedure for collecting indirect taxes and the mechanism for monitoring their payment when exporting and importing goods, performing work, providing services (Appendix No. 18 to the Agreement on EAEU, signed in Astana on May 29, 2014). According to paragraph 3 of the Protocol, when exporting goods from the territory of one member state to the territory of another EAEU member state, the exporter has the right to tax deductions (offsets) in the manner prescribed by the legislation of his state.
Thus, with regard to tax deductions when exporting goods to the countries of the EAEU, the same rules of the Tax Code of the Russian Federation apply as with respect to exports to other countries.
In addition, for exporters to the EAEU countries from July 1, 2016. Amendments to Article 169 of the Tax Code of the Russian Federation are in effect.
Let us recall that in subparagraph 1 of paragraph 3 of Article 169 of the Tax Code of the Russian Federation it is determined that the taxpayer is obliged to draw up invoices, keep books of purchases and sales when performing transactions recognized as subject to VAT. Invoices are not drawn up when performing transactions that are not subject to taxation (exempt from taxation) in accordance with Article 149 of the Tax Code of the Russian Federation.
However, from July 1, 2016 Law No. 150-FZ supplemented this rule with subclause 1.1 - if goods exempt from taxation are exported outside the territory of the Russian Federation to the territory of a member state of the EAEU, the exporter must prepare invoices.
Please note that the new rule applies only when selling goods. If a taxpayer sells work or services that are exempt from taxation to a counterparty from the EAEU, then invoices are not issued
In addition, from July 1, 2016 a new detail was added to the invoice issued to the buyer of goods from the EAEU - a code for the type of goods in accordance with the unified Commodity Nomenclature for Foreign Economic Activity of the EAEU (clause 5 of Article 169 of the Tax Code of the Russian Federation was added).
Thus, when exporting any goods from the territory of the Russian Federation to the territory of a member state of the EAEU, the invoice will need to indicate the appropriate code for the type of goods. True, there is no special column for this detail in the invoice; we will wait for changes to the Decree of the Government of the Russian Federation of December 26, 2011 N 1137.
For now, we believe that the code can be indicated in the “Product Name” line.
This detail is needed by the tax authorities to control export deductions in order to determine which goods are shipped to the EAEU (raw materials or not).
Thus, from July 1, 2016. exporters of non-commodity goods will be able to receive VAT deductions in an accelerated manner. The rule on separate accounting of input VAT no longer applies to them. The new procedure applies only when selling goods for export, incl. to the EAEU countries. With regard to works and services (in particular, international transportation), subject to VAT at a rate of 0%, nothing has changed.