Value Added Tax - a serious articlefor an accountant working on the main taxation regime. Perhaps, only two taxes cause a huge number of tax disputes - profit tax and VAT. If the land, transport, excises, and taxes for the use of mineral resources are to be paid by enterprises operating in certain types of activities or owning certain types of property, these two taxes - profits and VAT - must be paid by all commercial organizations on the basis of the OCHO, regardless of the form property available for property or type of activity. All accounting entries for accounting for VAT accrual and refund are one of the most important and sometimes time-consuming duties of an accountant on an independent balance sheet. Large organizations for conducting these operations very often hire a separate staff unit.
In which cases do we charge VAT
Consider the most common cases when there is a need to calculate VAT for payment to the budget:
And now consider each case separately andimmediately indicate which wiring for VAT will be in this or that case. I will not give sub-accounts on some accounts, because they can be different for different enterprises.
Realization of goods, works, services
Any commercial enterprise uses in itsactivity of this operation, because without realizing the work, services or goods, it is impossible to get the most important result of activity - profit. Postings for VAT during the implementation will be as follows:
Receipt of advance payment from the customer
As you know, when receiving fundsbefore the date of rendering any services, performance of various works or sales of goods, the seller must accrue from the received advance the amount of VAT that is allocated to the budget. In this case, the postings should be as follows:
The restoration of VAT in connection with the sale of a previously acquired asset (whether depreciated or not)
According to Ch.2 of the RF Tax Code, the sale of a previously purchased fixed asset is considered income that is subject to VAT. And in this case, the recovery of VAT should be made both by enterprises on the general regime, and at the simplified taxation system in the "revenue minus expenses" mode. After all, they also once, when acquiring a fixed asset on the basis of an invoice issued by the seller, took this VAT as an expense reducing the taxable base for a single tax. Accounting entries for VAT are as follows:
VAT accrual on the cost of self-made construction work
When carrying out construction work for its ownneeds (by the so-called hospice) the enterprises are obliged to charge VAT for the entire cost of construction and installation works. At the same tax is charged at a rate of 18%. The postings are as follows:
But the value-added tax is not onlymust be paid to the budget. It can also be reimbursed - that is, to reduce the amount payable to the budget by the amount already paid to the supplier of works, goods, services or fixed assets. In addition, the refund of VAT occurs when offsetting the advance payment received from the customer, made when selling works, goods, services to it. In addition, it is possible to reimburse the previously paid VAT from the amount of construction work carried out by the employer. For this, however, it is necessary to observe a number of rules. But here we are only talking about postings, so we will return to them. So, let's consider three cases of VAT refund.
VAT offset when purchasing goods, works, services
Postings for VAT for this operation are quite simple:
Set-off of VAT that was previously paid upon receipt of the advance
In this case, VAT is set off in the month in which the advance payment received from the customer is closed by the sale to the addressee. Postings for VAT at the same time:
Reimbursement of VAT from independently carried out construction and installation works (by the employer)
