Separate VAT accounting: features

Companies that conduct their business with or without VAT, must make separate VAT accounting. It turns out that the operation of dividing the amounts of taxes related to deductions or included in expenses that reduce the taxable base is not an easy task. However, cases are common in which there is simply no evidence on keeping separate records at the legislative level.

The Tax Code lists cases when enterprises are exempt from VAT and have to account for separate expenses. The most common of these are the receipt of interest and dividends on deposits, the provision of loans at interest. In addition, without paying VAT, interest is credited to a settlement account for the use of customer funds by banks.

There are also situations when, for example, a company simultaneously sells products that are subject to VAT and goods that are exempt from this tax. In this case, it simply needs to carry out a separate VAT accounting.

According to the rules, VAT is included in discounted goods for preferential goods, for the rest of operations, this tax must be deducted. If the accountant did not reflect or did not notice the preferential tax, did not include it in the price of the goods, then this fact can be interpreted as committing an offense under taxes.

Enterprises, carrying out the distribution of VAT of indirect costs, are required to maintain a mixed record. To carry out lending, a company must have an appropriate license, and no special permits are required to issue a loan. Also, loans can be issued to everyone, and these transactions are not subject to VAT. However, it is difficult to find a firm that deals only with the issuance of loans.

It turns out that in such a situation it will be necessary to make separate VAT accounting. To do this, the accountant must first determine what goods, services, works, property rights will be used specifically without tax. VAT in such assets is taken into account in their value. Maintaining the same accounting for objects that are purchased for conducting transactions both exempted and taxed, input VAT must be distributed: part of its amount is taken to the deduction, and part is attributed to costs.

A law does not provide for a certain criterion for determining assets that are used in non-taxable and taxable activities. The Tax Code establishes only the requirement to keep separate VAT records and gives instructions on how to divide it. The firm independently establishes and fixes in its accounting policy the procedure for the separate recording of expenses.

In doing so, the development of this policy should be guided by tax legislation.

Maintaining a Uniform Accounting

Income in the form of interest on deposits and dividends are not subject to VAT. However, the basis for this is not the benefits specified in Article 149 of the Tax Code, but the absence of the mentioned operations in Article 146 of the same document. It should be taken into account that many controllers determine the bank interest as a received income in the form of money from the provision of services to provide loans to banks. In this case, you can argue.

It turns out that the client gives the money to the credit organization is not based on the loan agreement. The client receives interest for using the funds by the bank in accordance with the bank account agreement governed by the norms of the Civil Code. In addition, interest on the amount of the deposit is accrued according to the conditions specified in the bank deposit contract. Consequently, interest income from bank investments is not subject to the provisions of the Tax Code, so you do not have to worry about the separate accounting.