How to calculate VAT on advances received. How to deduct VAT when transferring an advance payment to a supplier. On the issue of filling out an “advance” invoice

Particular attention should be paid to reflecting VAT on advances received and paid in the accounting of the seller and buyer, to understand the issue of deducting VAT from advances, as well as tax recovery.

VAT on advance received: postings

In the generally accepted sense, an advance is the transfer of funds against the future delivery of assets or services, i.e., before the transaction is completed. According to the terms of the agreements, the amount of the advance payment can be any.

The seller charges VAT immediately upon receipt of the advance payment, without waiting for the goods to be shipped (Clause 1, Article 167 of the Tax Code of the Russian Federation). If payment is received on the day of shipment, then such payment is no longer considered an advance and is accounted for differently. The seller confirms the fact of receiving the advance payment within five days by drawing up an advance invoice in 2 copies (one of them is addressed to the buyer, the second is kept for himself), registering it in the sales book and reflecting it in the accounting records in the quarter when the payment is received. In the VAT return, the advance payment is recorded in line 070 of the third section.

Tax is calculated on the amount of the advance received at rates 18/118 or 10/110. To account for advances, a subaccount is opened to the account. 62, and VAT is reflected in the “VAT” subaccount to the account. 76. A peculiarity of accounting for VAT on advances is that the tax is calculated twice (although it is paid, of course, once) - upon receipt of the advance and upon shipment. In the seller's accounting, these operations are accompanied by postings:

Operations
Upon receipt of advance payment
Advance received
VAT charged on advance payment
When shipping the goods (accompanied by a duplicate invoice)
Revenue from sales (shipment) is recognized
VAT is charged on the cost of sold assets
Advance payment for goods shipped is credited	62/Advances (AP)
VAT on the transferred advance is accepted for deduction

The seller can deduct VAT accrued on the advance amount after the sale of goods/services, i.e. upon shipment.

Example 1: calculating tax on advance received

On February 20, 2018, the company received an advance (full prepayment) in the amount of RUB 1,500,000. against a future supply of goods subject to tax at a rate of 18%. The product was shipped on March 15, 2018.

Let's calculate VAT on the advance amount using the formula: A x 18 /118, where A is the advance received.

1,500,000 x 18 /118 = 228,813 rubles. Postings:

Operations
20.02.2018
Advance received
VAT is allocated from the advance amount
15.03.2018
After shipment, sales revenue is recognized
VAT is charged on sales
Advance credited
Accepted for VAT deduction

If the sale does not take place (for example, due to termination of the contract), and the advance payment was returned to the buyer, then the seller has the right to deduct the VAT previously accrued on the amount received. He can do this within a year after the advance is returned, reflecting it in accounting as follows:

VAT on advances received in the 2018 balance sheet

In the balance sheet, advances received can be seen in the structure of accounts payable on line 1520 of the liability in the section of short-term liabilities. Since VAT on advances is not reflected in either the income or expenses of the payer company, in line 1520 the amount of advance payments is recorded without taking into account the tax. Thus, VAT on advances received is not recorded in the balance sheet.

The amounts of advances issued form accounts receivable and are reflected in the balance sheet asset without VAT in line 1230. If advances were issued for the acquisition or creation of an asset, then they can be seen in line 1190 “Other non-current assets”.

VAT on advances issued: postings

The buyer can deduct the VAT indicated by the seller in the advance invoice. In the buyer's accounting, advances issued are accounted for in a specially opened subaccount to the account. 60. VAT on the advance, subject to deduction, is reflected in the account. 19. The buyer’s transactions will be as follows:

Operations
Upon receipt of an advance invoice from the seller
Advance transferred	60/ Advances
VAT has been allocated from the advance amount and sent for deduction
Upon receipt of goods and receipt duplicate invoice from supplier
Goods/services have been capitalized
VAT on purchased goods and materials/services
VAT is accepted for deduction
An advance is included in payment for acquired assets
Recovering VAT from advance payment

The buyer also deducts tax twice: from the transferred advance payment and upon delivery of goods and materials. This situation is balanced by recovering VAT from the buyers’ advance payment by posting D/76 K/t 68.

Example 2: tax calculation based on prepayment issued

Returning to our example, let's consider what transactions the buyer's accountant operates with.

Operations
20.02.2018
Advance transferred
VAT charged on advance payment (upon receipt of invoice)
15.03.2018
Inventory materials received and capitalized
VAT on acquired assets
The advance is credited to the value of the received assets
VAT is accepted for deduction
VAT on advance payment has been restored

When receiving an advance payment (prepayment, partial payment) for upcoming deliveries of goods, provision of services, or performance of work, the seller must calculate VAT and include the VAT amount in the VAT return for the current quarter.

Tax base for VAT from advance payment

The Tax Code of the Russian Federation (TC RF) stipulates cases when an advance received is not included in the VAT tax base. This:

1. Receiving an advance on transactions taxed at a rate of 0%
2. Receiving an advance on transactions that are not subject to taxation (exempt from taxation).
3. Receiving an advance for operations with a long production cycle (over six months). Applies if the taxpayer exercised the right to establish the moment of determining the tax base as the day of shipment and the goods, works, and services produced by him are included in the special List of goods, works, and services with a long production cycle. This list is determined by the Government of the Russian Federation.

The procedure for determining the VAT rate on an advance payment

When receiving an advance, the VAT rate is determined by calculation. Depending on the basic rate for goods, works, and services produced, it can be calculated as 18/118 or 10/110.

Example 1.

An advance was received against the supplier of goods taxed at a rate of 10%. The advance amount is 200 thousand rubles, it is necessary to calculate VAT.

VAT in this case will be

200 000,00 * 10 / 110 = 18 181,82

Example 2.

An advance payment was received for services taxed at a rate of 18%. The advance amount is 177 thousand rubles, it is necessary to calculate VAT.

VAT in this case will be

177 000,00 * 18 / 118 = 27 000,00

Peculiarities of determining VAT on an advance payment if the advance payment and shipment belong to the same tax period.

Despite the fact that it seems logical in this case to calculate VAT only once, from shipment, regulatory authorities insist otherwise.

According to the regulatory authorities, VAT must be charged first on the advance received, then on the sale. And accordingly, issue two invoices - for the advance received and for the sale.

Then, when filling out the purchase ledger, you must record the VAT on the advance payment as a tax deduction.

The VAT Declaration must reflect both cases of VAT calculation - both from the advance received and from the sale, as well as the VAT deduction.

Courts often take the opposite point of view and believe that there is no need to charge VAT on advances received if both the advance and the sale fall within the same tax period.

Table 1 shows the documents for each case.

Table 1.

No.	VAT on the advance, if the advance and sale are in the same tax period	Document
1	VAT is charged, an invoice needs to be issued	Letter from the Ministry of Finance of the Russian Federation dated 10/12/2011 No. 03-07-14/99, Letters from the Federal Tax Service of the Russian Federation dated July 20, 2011 No. ED-4-3/11684, dated March 10, 2011 No. KE-4-3/3790, dated 02/15/2011 No. KE-3-3/354@, Resolution of the Federal Antimonopoly Service of the North Caucasus District dated 06/28/2012 No. A32-13441/2010.
2	There is no need to charge VAT	Determination of the Supreme Arbitration Court of the Russian Federation dated September 19, 2008 No. 11691/08, Resolutions: FAS North Caucasus District dated May 25, 2012 No. A32-16839/2011, FAS Volga District dated September 7, 2011 No. A57-14658/2010

Features of issuing an invoice when receiving an advance

Upon receipt of the invoice, the seller must issue an invoice for the advance received.

The procedure for issuing an advance invoice is defined in Decree of the Government of the Russian Federation of December 26, 2011 N 1137.

The period for issuing such an invoice is 5 calendar days, because the same as when issuing a regular invoice.

The invoice is issued in two copies, one of which is transferred to the buyer.

For an advance invoice, it is important to indicate in line 5 the details of the payment document for the advance received.

When indicating the names of goods, works, services, you can use their generic name, which allows you to identify goods, works, services.

Answers to common questions

Question #1:

An advance was received for the supply of goods, some of which are taxed at a rate of 10%, and some at a rate of 18%. How to calculate VAT on an advance received?

According to regulatory authorities, in cases where it is not possible to immediately determine for which product an advance payment was received, it is necessary to calculate VAT using the highest rate (18/118). This opinion is given in Letter of the Ministry of Finance of Russia dated March 6, 2009 No. 03-07-15/39.

Question #2:

When issuing invoices, is it possible to use their separate numbering, adding, for example, the symbols “AB”?

The numbering of invoices must be continuous and carried out in chronological order. There is no separate numbering for advance invoices. At the same time, given that separate numbering of invoices for advance payments does not prevent identification of the buyer and seller, names of goods, works, services, VAT rates and amounts, there should be no sanctions from regulatory authorities.

Question #3:

Is it possible to issue one invoice for all advances from one buyer received in a month (quarter)?

No, you shouldn't do that. You must issue an invoice for the advance received each time you receive funds, as well as non-monetary means of payment.

Question #4:

Is it necessary to charge VAT on an advance payment under a contract if the contract was terminated in the same quarter and the advance payment was returned to the buyer?

According to the regulatory authorities, in this case it is still necessary to calculate VAT; when filling out the VAT Return, it will be necessary to reflect both the tax on the advance received and the VAT deduction in the same amount.

Question #5:

The buyer and seller agreed to reduce the sales amount under the contract after it had been fully paid, so they decided to take the resulting overpaid amount into account as payment under the new contract. Is it necessary to determine VAT on the advance payment in this case?

Yes, it is necessary to calculate VAT and issue an invoice for the advance payment. In this case, the date of receipt of the advance can be considered the date of signing the agreement to reduce the cost of the first sale. A similar opinion was expressed by the Ministry of Finance of the Russian Federation in letter dated October 3, 2017 No. 03-07-11/64367.

When transferring amounts for future deliveries, the seller is required to issue an invoice. The buyer can deduct the tax without waiting for sale. This amendment to the Code was created to reduce the tax burden. How is VAT deducted from advances received in practice?

Relationship

Upon receipt of an advance payment in full or partial amount for future deliveries, the business entity is obliged to charge VAT and issue an invoice. This tax amount is then deductible based on qualifying shipments. Next, we will consider in detail how VAT is offset from advances received from the client.

The invoice period is limited to five days. The exceptions are cases where the shipment was made within the specified period. But what about a buyer who transfers funds at the end of the current period if the seller does not issue an invoice? According to the interpretation of the arbitration court, an “advance on supplies” can be recognized as a payment received in the same period in which it occurred. In addition, for failure to fulfill an obligation (invoicing), in accordance with Art. 120 of the Tax Code, the company may be held liable:

• 5 thousand rubles if the violation occurred during one period;
• 15 thousand rubles. - in several periods;
• 10% of the amount (minimum 15 thousand rubles), if the tax base was underestimated.

In the case of long-term supplies (oil, gas, etc.), invoices can be prepared at least once a month. The document must be issued in the same period in which the prepayment was made.

Billing

The document must indicate:

• name, address, TIN of the parties to the transaction;
• number and date;
• name of goods;
• prepayment amount;
• tax rate;
• VAT amount.

In case of prepayment, the invoice must indicate the tax rate as a percentage of the base. According to these data, it then occurs with advances received. As for the name, the invoice can indicate the name of groups of goods without a detailed explanation.

Decor

1. Prepayment is made under the contract, the buyer wants to take into account VAT on advances received.

In this case, it is necessary to monitor the status of mutual settlements and clearly determine whether a particular payment belongs to the delivery. It is also worth asking the buyer to indicate the prepayment amount in the comments to the receipt. Such control is required because:

• The invoice is independently generated by the client in 1C, issued and printed in 2 copies.
• The advance amount is calculated based on the data in the “Debt Repayment” document. If the “Automatic” calculation method is selected, the difference will be calculated based on the balances of 62.01. After closing all debts, the balance will be carried forward to 62.02. This amount will appear on the invoice. Therefore, before registering a document, you need to make sure that the information provided in the database is up to date.

2. The invoice was issued in only one copy.

A document “Registration of invoices for advance payments” is created, which will automatically generate balances for all unclosed prepayments. This method has its limitations. Before registering a document, you need to make sure that:

VAT calculation

The process algorithm has not changed. The base is determined either on the day of shipment or at the time of payment. The seller must pay tax on the amounts transferred, and the buyer must pay VAT on advances received.

Example. An advance payment in the amount of 118 thousand rubles was received on the LLC account on May 15. (including tax - 18%). The organization made a shipment on May 25 in the amount of 85 thousand rubles. In the accounting of the enterprise, this operation will be reflected as follows:

• DT 51 CT 62 - prepayment reflected (118 thousand rubles);
• DT 76 CT 68 - 18 thousand rubles - VAT on advances received. The postings were generated based on the invoice dated May 15.

If a long time passes between the payment of funds and the presentation of VAT, then the operation can be completed with the following posting:

DT 19 KT TS (Technical account for accounting of settlements with counterparties) - 18 thousand rubles.

DT 68 CT 19 (presentation of VAT for deduction) - 18 thousand rubles.

The supplier's debt is reflected in the financial statements in full. VAT appears on tax invoices.

• DT 90 CT 41 - cost of goods sold (85,000);
• DT 62 CT 90 - income from sale (118,000);
• DT 90 CT 68 - accounting for tax on revenue (18,000);
• DT 68 CT 76 - deduction of VAT on advances received (18,000);
• DT 62 “Prepayments” CT 62 “Settlements with customers” - prepayment (118,000).

This is how VAT is calculated on advances received.

Tax accounting for the buyer

The client who has made an advance payment on account of supplies is subject to deduction of the tax amounts presented by the seller on the basis of the following documents:

• accounts;
• payment slips confirming the transfer of funds;
• agreement.

Let's take a closer look at them. The Ministry of Finance does not provide a special form of invoices used for prepayments. Therefore, a standard document template can be used. If the contract contains a condition on the transfer of money without specifying the exact amount, then the tax calculated based on the figures indicated in the invoice issued by the seller is subject to deduction. If such a clause is missing at all, then the tax cannot be compensated.

Deduction of VAT on advances received

The Tax Code provides for the taxpayer's right to compensation for amounts paid. If an enterprise uses it in relation to deductions for capitalized goods, the tax amount will not be underestimated.

From advances received occurs in the event of the buyer transferring funds towards future deliveries. You can compensate the tax in one of the following periods:

• when the amount of tax on purchased works is deductible;
• if the conditions have changed, the contract has been terminated or the prepayment amounts have been returned.

VAT on advances received will be restored to the amount in which it was previously accepted. It is worth paying attention to this point here. The refund of the received advance VAT, which was accepted with 100% prepayment for supplies made in separate batches, occurs in an amount corresponding to the amount of tax indicated in the invoices. There is no need to highlight the prepayment amount as a separate item in the invoices themselves.

Example

Let's take the conditions from the previous problem. On May 15, the buyer transferred an advance in the amount of 118,000 rubles to the seller’s account. On May 25, the seller shipped the goods against the funds received in the amount of 100 thousand rubles. The process of generating VAT from advances received and transaction registration transactions are presented below.

• DT 60 CT 51 - transfer of advance payment (118,000);
• DT 68 CT 76 - reflection of the tax amount (18,000).

• DT 41 (19) CT 60 - goods are capitalized (100,000) and the amount of tax is reflected (18,000);
• DT 68 CT 19 - - accepted for deduction of VAT (18,000);
• DT 76 CT 68 - tax restored (18,000);
• DT 60 “Settlements with suppliers” CT 60 “Prepayments” - 118,000 - advance payment credited.

It is very important to correctly calculate the amount of taxes payable to the budget. Based on this data, a VAT declaration is generated. Advances received, transferred and tax amounts accrued on them directly depend on the correct calculation of accounts receivable (RD) and accounts payable (AC).

Description of the essence of the issue

Accounts receivable for amounts paid for the purchase of goods are reflected in the balance sheet in the amount of funds actually transferred. Before being able to deduct tax, these figures appear as a current asset. Such debt shows the right of the enterprise to receive the provided objects in the appropriate quantity, quality and required configuration. Refunds can only be made in case of premature payment, failure of the supplier to fulfill obligations and other similar circumstances. But in a worse situation, the company can receive not only previously paid amounts, but also compensation. Therefore, in accounting, the valuation of the asset should reflect not the amount of costs, but the cost of the purchased equipment when it is capitalized. This figure corresponds to the amount of prepayment excluding VAT from advances received.

Tasks

Let's look at a few more examples of tax calculations.

1. in the amount of 118,000 including VAT.

• DT 08 (19) KT 60 - materials were received (100,000) and the supplier’s invoice was taken into account (18,000);
• DT TS (technical account for mutual settlements with counterparties) KT 68 - VAT restored (18,000);
• DT 68 CT 19 - tax accepted for deduction (18,000).

2. Reflection of an advance issued without accepting the right to deduct VAT.

From the buyer's side:

• DT 60 CT 51 - advance paid (118,000);
• DT 19 KT TS - accepted for VAT accounting (18,000).

From the seller's side:

• DT 08 (19) CT 60 - equipment received (100,000) and seller’s account accepted (18,000);
• DT TS KT 19 - the tax amount was restored (18,000);
• DT 68 CT 19 - tax accepted for deduction (18,000).

Another option for processing the operation.

From the seller:

• DT 51 CT 62 - prepayment received - 118,000;
• DT TS KT 68 - tax charged - 18,000.

From the buyer:

• DT 62 CT 90 - sales of products (if 62 is used as a technical account, an entry is created for the amount of one hundred thousand rubles) - 118,000.
• DT 90 CT 68 - the amount of tax on products sold is reflected (the posting is not created if account 62 appears) - 18,000;
• DT 68 CT TS - the tax amount has been restored (the posting is not created if account 62 appears) - 18,000.

Reconciliations of mutual settlements

The acts may indicate amounts both with and without tax. It is better to indicate both numbers. The actual debt is non-monetary, that is, it does not include taxes. But if an advance is offset or there are complex settlements under contracts, VAT figures can be used when calculating the total debt.

Exceptions

The legislation provides for cases when accrual from advances received is not provided:

• for goods that were sold outside of Russia;
• for work taxed at a rate of 0%;
• for services for which tax is not charged at all;
• if the company does not pay VAT at all;
• if the duration of the production cycle exceeds six months (the list of such goods is approved by Resolution No. 468).

In order not to charge tax on prepayments for work with a long production cycle, you must submit, along with the tax return, a copy of the contract with the buyer, a document confirming the features of the technological process.

An enterprise can take advantage of the benefit if the accountant keeps separate records of operations with a long production cycle and VAT amounts on materials involved in this process. These requirements are established by the Tax Code of the Russian Federation.

If these conditions are not met, tax on the advance payment is calculated on a general basis. There is no deferment available. If the seller charged VAT in one quarter and provided documents for the benefit in another, he cannot reduce the tax base, change the invoice or submit a “clarification”. The procedure for maintaining complex accounting is not prescribed by law. Therefore, it is regulated by the internal policies of the organization.

The disadvantage of this scheme is the following: the organization can take into account the amount of VAT on goods purchased for long-term production only on the day the product is sold. If an enterprise received an advance without paying tax, then it will not be possible to reimburse VAT from the budget until the products are sold. Therefore, before using the benefit, you need to evaluate the economic benefit of the operation.

Conclusion

Upon receipt of advance payment for future deliveries, the buyer is required to issue an invoice and charge VAT. Based on the results of shipments, these amounts are subject to deduction. The correct calculation of amounts depends on the correct assessment of receivables and payables. The main rule is that the amounts paid for the goods must be shown separately from the tax on the balance sheet. In addition, deducting VAT on advances received is not an obligation. Amounts are calculated based on invoices. And if the seller provides an invoice untimely, he will be fined from 5 to 15 thousand rubles. This is stated in the Tax Code of the Russian Federation.

When transferring advances (prepayments) to sellers (suppliers, contractors), taxpayers have the right to deduct the amount of VAT transferred as part of the advance (prepayment) if certain conditions are met. Subsequently, these amounts are subject to restoration.

Deduction of VAT from advance payment issued

According to paragraph 12 of Art. 171 of the Tax Code of the Russian Federation, tax amounts presented by the seller of these goods (work, services), property rights are subject to deductions from the taxpayer who transferred the amounts of payment, partial payment on account of upcoming deliveries of goods (performance of work, provision of services), transfer of property rights.

The procedure for applying these deductions is established in clause 9 of Art. 172 of the Tax Code of the Russian Federation. Deductions are made based on:

• invoices issued by sellers upon receipt of payment, partial payment for upcoming deliveries of goods (performance of work, provision of services), transfer of property rights;
• documents confirming the actual transfer of payment amounts, partial payment for upcoming deliveries of goods (performance of work, provision of services), transfer of property rights;
• (i) if there is an agreement providing for the transfer of the specified amounts.

According to paragraph 3 of Art. 168 of the Tax Code of the Russian Federation, upon receipt of payment amounts (partial payment) for upcoming deliveries of goods (performance of work, provision of services, transfer of property rights) sold on the territory of the Russian Federation, the corresponding invoices are issued by the seller no later than five calendar days, counting from the date of receipt specified payment amounts (partial payment).

In accordance with clause 2 of the Rules for maintaining the purchase book (Appendix No. 4 to the Decree of the Government of the Russian Federation of December 26, 2011 No. 1137), invoices received from sellers and registered in part 2 of the log of received and issued invoices are subject to registration in the purchase book, as the right to tax deductions arises in the manner established by Art. 172 of the Tax Code of the Russian Federation.

At the same time, invoices received are not recorded in the purchase book (clause 19 of the Rules for maintaining the purchase book):

(clause “e”) for the amount of payment, partial payment for upcoming deliveries of goods (performance of work, provision of services), transfer of property rights in non-cash forms of payment;

(clause “f”) for the amount of payment, partial payment for upcoming deliveries of goods (performance of work, provision of services), transfer of property rights acquired exclusively for the implementation of transactions not subject to (exempt from taxation) value added tax.

Reader Questions

What is the difference between an advance and a prepayment?

An advance is a partial payment transferred by the buyer to the seller (supplier, contractor) for the upcoming delivery of goods (performance of work, provision of services, transfer of property rights). Advance is a form of prepayment.

Prepayment is an advance payment for goods (work, services, property rights). It can be full (100% prepayment, or the full cost of the transaction), partial (a pre-agreed fixed amount or percentage of the transaction amount), revolving (periodic payments on an advance payment basis under contracts with long-term economic ties).

Is it possible to deduct the amount of VAT from the transferred advance payment if the terms of the contract do not provide for the transfer of an advance payment or prepayment, and the contractor asks to transfer an advance payment for the purchase of materials?

The letter of the Ministry of Finance of the Russian Federation dated March 6, 2009 No. 03-07-15/39 explains that if the agreement does not provide for advance payment (partial payment) or there is no corresponding agreement, and the advance payment is transferred on the basis of an invoice, then the tax on the listed advance payment (partial payment) is not accepted for deduction.

In a situation where an advance is not provided for in the contract, but the parties have agreed to pay an advance, an additional agreement to the contract should be concluded, including a condition for the advance.

The LLC has a general product supply agreement with the brick factory, under which the factory ships bricks to us upon request. The contract states that after receiving the application, the plant issues an invoice to the LLC for payment and provides an invoice for the amount of the prepayment. Products are shipped after payment of the invoice. Since the amounts for applications are different, we cannot indicate the amount of prepayment in the contract. Does an LLC have the right to deduct VAT on prepayment invoices received from a brick factory?

If the contract for the supply of goods (performance of work, provision of services, transfer of property rights) provides for the transfer of advance payment (partial payment) without specifying a specific amount, then value added tax calculated on the basis of the amount of the transferred advance payment should be deducted. payment (partial payment) specified in the invoice issued by the seller. This explanation was given in the letter of the Ministry of Finance of the Russian Federation dated March 6, 2009 No. 03-07-15/39.

The organization rents non-residential premises from an individual entrepreneur and, in accordance with the agreement, makes advance payments to the entrepreneur's cash desk in cash. Can we, based on an invoice for an advance payment issued by an individual entrepreneur, deduct the amount of VAT from the advance payment?

According to the position of the official bodies, when making an advance payment (partial payment) in cash or in non-cash form, tax deduction for such payment (partial payment) is not made, since in these cases the buyer of goods (works, services, property rights) does not have a payment order. See letter of the Ministry of Finance of the Russian Federation dated March 6, 2009 No. 03-07-15/39.

Situation from judicial practice

The company (tenant), under the terms of the lease agreement, transfers the rent in advance. The landlord provides the tenant with an invoice for the amount of the advance received.

Under the agreement for the assignment of the right of claim, the Company (tenant) transferred to the Lessor the right to claim the debt under a contract with the OJSC. Then the Company (tenant) and the Lessor entered into an agreement according to which the Lessor's debt to the Company (tenant) under the assignment agreement is counted against the Company's (tenant's) debt to the Lessor for the advance payment under the lease agreement.

Based on the agreement and invoice for the advance payment received from the Lessor, the Company (tenant) declared the amount of VAT calculated on the advance payment for deduction.

Since the prepayment was made by agreement, that is, using a non-monetary form of payment, the tax authority considered that the Company did not comply with the conditions of paragraph 9 of Article 172 of the Tax Code of the Russian Federation.

However, the courts, guided by the position of the Supreme Arbitration Court of the Russian Federation and the Constitutional Court of the Russian Federation, sided with the taxpayer.

The FAS Volga District, in a resolution dated October 3, 2011 in case No. A12-22832/2010, with reference to the resolution of the Constitutional Court of the Russian Federation dated February 20, 2001 No. 3-P, indicated that when calculating by offsetting counterclaims, the VAT amounts presented to the buyer are considered paid and subject to deduction on a general basis.

Recovering VAT from an advance payment

According to paragraphs. 3 p. 3 art. 170 of the Tax Code of the Russian Federation, tax amounts accepted for deduction when the taxpayer transfers an advance (prepayment) are subject to restoration in the tax period in which:

• the taxpayer has the right to deduct tax on purchased goods (work, services, property rights);
• (or) there was a change in the conditions or termination of the relevant contract and the return of the corresponding advance amounts (prepayment).

Tax amounts are subject to restoration in the amount previously accepted for deduction (paragraph 3, paragraph 3, paragraph 3, Article 170 of the Tax Code of the Russian Federation).

At the same time, as indicated in the letter of the Ministry of Finance of the Russian Federation dated January 28, 2009 No. 03-07-11/20, in the case where the terms of the contract provide for the supply of goods in separate batches after the transfer of an advance payment, the restoration of tax amounts accepted by the buyer for deduction at the listed 100 percent prepayment should be made in the amount corresponding to the tax indicated in the invoices for the purchased goods.

In accordance with clause 14 of the Rules for maintaining the sales book (Appendix No. 5 to the Decree of the Government of the Russian Federation of December 26, 2011 No. 1137), upon restoration in the manner established by clause 3 of Art. 170 of the Tax Code of the Russian Federation, previously accepted for deduction of VAT amounts, invoices on the basis of which the tax amounts were accepted for deduction are subject to registration in the sales book for the amount of tax subject to recovery.

Reader Questions

The general contractor organization entered into a construction contract with the contractor for a total amount of 23,600 thousand rubles, incl. VAT 3,600 thousand rubles. Under the terms of the agreement, the organization transferred an advance to the contractor in the amount of 11,800 thousand rubles. Based on invoice No. 10 dated September 20, 2013, received from the contractor, the organization declared a deduction in the amount of 1,800 thousand rubles in the tax return for the 3rd quarter of 2013.

According to the agreement, the contractor quarterly provides the organization with acceptance certificates for completed work in form KS-2 and certificates of the cost of work performed in form KS-3. In this case, only part of the advance payment in the amount of 50% of the cost of the work accepted by the customer, indicated in the KS-2 form, is counted towards payment for work performed.

In the 4th quarter of 2013, the cost of work performed by the contractor amounted to 7,080 thousand rubles, incl. VAT 1,080 thousand rubles. Of this amount, 3,540 rubles were offset against the advance payment, and the remaining amount was 3,540 thousand rubles. payable. The contractor issued the organization with invoice No. 30 dated December 31, 2013 for work performed in the amount of RUB 7,080. (including VAT) and an invoice for payment in the amount of 3,540 thousand rubles.

How to determine the amount of VAT to be restored in Q4. 2013? What amount is the organization entitled to deduct?

Clause 4 of the Procedure for filling out a VAT tax return (approved by order of the Ministry of Finance of the Russian Federation dated October 15, 2009 No. 104n) establishes that the declaration is drawn up on the basis of sales books, purchase books and data from the taxpayer’s accounting registers. This means that the indicators of the tax return must coincide with the indicators of the sales book (in terms of the total calculated amount of tax), the purchase book (in terms of the total amount of tax deductions), and accounting registers (in terms of analytical accounting of the calculated tax and tax deductions). In this case, accounting entries must be made in strict accordance with the primary accounting documents.

On the date of receipt of invoice No. 10 dated September 20, 2013, the organization performs the following actions for the amount of the advance:

Registers an invoice in the amount of RUB 11,800,000. (including VAT RUB 1,800,000) in the purchase book.

In the tax return for the 3rd quarter of 2013, the organization reflects the amount of VAT in the amount of RUB 1,800,000. as part of deductions in section 3 on line 150.

As of the date of receipt of invoice No. 30 dated December 31, 2013, for the amount of work performed, the organization:

Registers the invoice in part 2 of the log of received and issued invoices;

Registers an invoice in the amount of RUB 7,080,000. (including VAT RUB 1,080,000) in the purchase book;

Registers invoice No. 10 dated September 20, 2013 for the amount of the offset advance in the amount of RUB 3,540,000. (including VAT RUB 540,000) in the sales book.

In the tax return for the 4th quarter of 2013, the organization reflects:

Recovered VAT in the amount of RUB 540,000. according to lines 090 and 110 of section 3;

Tax deduction for work performed in the amount of RUB 1,080,000. according to line 130 of section 3.

In the accounting records of the organization, these transactions are reflected in the following entries.

On the date of payment of the advance:

Debit 60, subaccount “Settlements with suppliers and contractors for advances issued” Credit 51 – 11,800,000 rubles. – an advance was transferred to the contractor (based on payment order, bank statement).

Debit 68, subaccount “Calculations with the budget for VAT” Credit 76, subaccount “VAT on advances issued” - 1,800,000 rubles. – reflects the tax deduction of VAT calculated on the advance payment transferred to the contractor (based on invoice No. 10 dated September 20, 2013).

As of the date the parties signed the acceptance certificate for the work performed:

Debit 20 Credit 60, subaccount “Settlements with suppliers and contractors” - 6,000,000 rubles. – the results of work performed by the contractor in the 4th quarter of 2013 were taken into account (based on the acceptance certificate for completed work, form KS-2);

Debit 19 Credit 60, subaccount “Settlements with suppliers and contractors” - 1,080,000 rubles. – reflects the amount of VAT presented by the contractor on the cost of work performed (based on the act of acceptance of work performed, form KS-2);

Debit 60, subaccount “Settlements with suppliers and contractors” Credit 60, subaccount “Settlements with suppliers and contractors for advances issued” - RUB 3,540,000. – the amount of the advance payment issued is included in the payment for the work performed (based on the contract, a certificate of the cost of work performed and expenses, form KS-3 for the 4th quarter of 2013);

Debit 76, subaccount “VAT on advances issued” Credit 68, subaccount “Calculations with the budget for VAT” - 540,000 rubles. – the amount of VAT tax deduction from advances issued has been restored in the part offset against payment for work performed for the 4th quarter of 2013 (based on an accounting statement, contract, certificate in form KS-3).

On the date of receipt of the invoice from the contractor:

Debit 68, subaccount “Calculations with the budget for VAT” Credit 19 – 1,080,000 rubles. – the amount of VAT presented by the contractor is accepted for tax deduction (based on invoice No. 30 dated December 31, 2013).

In the certificate of cost of work performed (form KS-3), indicate the amount of the offset advance and the amount to be paid;

Providing by the contractor, together with the act (KS-2) and certificate (KS-3), an invoice for payment for work performed only for the amount of the final payment;

The document flow procedure (indication in the KS-3 certificate of the amount of the offset advance and provision of invoices for final payment) is fixed in the contract (in an additional agreement to the contract).

Attached is a sample of the KS-3 certificate, which contains information about the advance.

How to determine VAT on advances received? How to calculate it correctly? First, let's define what is included in the concept of "advance". In concluded supply agreements, when paying for products, an advance payment (advance payment) is often assumed for future deliveries. Advances are a guarantee of payment for the entire shipment of goods in the future. In addition, from the amounts received for products, the taxpayer becomes obligated to pay VAT on advances received.

Here the following situation arises: the amount of VAT is included in the amount of products received. In addition, VAT is charged upon direct shipment of goods. There is a possibility of double taxation here, were it not for the fact that the company can obtain a VAT deduction on advances under certain conditions. Let's consider these conditions in more detail.

According to clause 1 of Article 146 of the Tax Code, an object of VAT taxation arises when a company carries out operations to sell goods, works, and services in the territory of the Russian Federation. At the time of receiving advances from customers and buyers, the company is also obliged to charge VAT at the calculated rate of 10/110 (for products, children's goods, etc.) or 18/118 (for other goods). The tax base in this case is the total amount of prepayment including VAT (Article 154 of the Tax Code).

What is an advance (prepayment)? This is the amount of payment for goods (work, services) received by the supplier before the actual shipment of these goods (work, services) (based on clause 1 of Article 487 of the Civil Code).

When receiving an advance payment, you must issue an invoice in 2 copies within five days (we count calendar days): one copy for the buyer (Article 168 of the Tax Code), the second for you, which must be registered in the sales book.

When the goods (services) are sold, you issue (Article 168 of the Tax Code) another invoice for the shipped goods again in 2 copies (for you and the buyer), and register it again in the sales book.
At the same time, you register the invoice for the advance payment in the purchase ledger.

So, at what point can you deduct VAT on advances received? Here the following conditions must be met: VAT on prepayment must be transferred to the budget, and goods (work, services) sold (clause 8 of Article 171 of the Tax Code).

Let's look at the deduction of VAT on advances received using examples.

Example 1.

Ryabinushka LLC enters into a supply agreement with the buyer Alliance LLC for household goods in February 2013. The contract amount was 236,000 rubles (of which 36,000 rubles are VAT). On February 10, Ryabinushka LLC receives from Alliance LLC an advance payment in the amount of 50% of the total contract amount of 118,000 rubles, which is stipulated in the delivery conditions.

We will calculate VAT on the advance received.

118,000 x 18/118% = 18,000 rubles.

D-t 51 K-t 62-2 “Advances received” = 118,000 rubles. – funds have been credited to the current account in the form of an advance payment

D-t 76-AV “VAT on advances received” - K-t 68 = 18,000 – VAT is charged on the advance

We draw up an invoice for the advance payment and send 1 copy to the buyer.

In May 2013, Ryabinushka LLC ships household goods to the buyer. We issue an invoice for shipment and accept the advance payment for deduction. In accounting we make entries for these transactions

1.D-62-1 “Settlements with buyers and customers” Kt 90 = 236,000 rubles. – goods are shipped to the buyer

2.D- 90 Kit 68 =36,000 rub. – VAT is charged on shipped goods

3.D-t 68 K-t 76-AV “VAT on advances received” = 18,000 rubles. – we accept VAT deduction from advance payment

4.D-t 62-2 “Advances received” - Credit 62-1 “Settlements with buyers and customers” - in the amount of 118,000 rubles. – advance payment from Alliance LLC was credited.

Those. for the first quarter, Ryabinushka LLC will transfer 18,000 rubles. VAT, and for the second quarter of 2013:

36,000 -18,000 = 18,000 rubles.

If the advance is returned

When returning an advance payment in the event of termination of the contract, the company also has the right to deduct VAT on advances. This right can only be exercised within a year from the date of repayment of the advance.
We make accounting entries.

D-t 62 “Advances received” D-t 51 – the advance was returned to the buyer from the current account

D-68 K-t 76-AV “VAT on advances received” - VAT on advances is accepted for deduction.

The advance invoice must be recorded in the purchase ledger.

There are situations when you cannot return the advance payment to a buyer on whom VAT has already been charged and paid. If the buyer to whom you are returning the advance is liquidated, for example, then you will not be able to return the VAT deduction from the advances. Then the advance received is taken into account as part of non-operating income in full. Unfortunately, an advance payment that has already been paid cannot be deducted, nor can it be written off as expenses, since the condition for accepting advances for deduction is not met: there was no sale of the goods (clause 6 of Article 172 of the Tax Code) and the advance was not returned to the buyer (clause 5 of Art. 171 NK).

Read how to fill out a sales book.

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