Energy Consulting Introduces Way to Calculate VAT Tax
OREANDA-NEWS. December 11, 2013. In the course of the online-conference "Agreements in conventional units: complicated challenges for VAT calculation. Mistakes in tax return filing", arranged by Russian Tax Website, experts had reviewed the main novelties in the Tax Code of the RF.
Almin Rabinovich, Chief Methodologist of the Energy Consulting Group, answering the questions asked by website’s users, has told, notably, about the correct ways for VAT calculation if an agreement with a contractor had been made in conventional units.
As Almin Rabinovich explains, in the event of any prepayments the tax base shall be calculated twice: as at the prepayment receipt date, as well as at the shipment date (item1, Cl.167, the RF Tax Code). If a seller receives a 100% prepayment amounted to 118 Rubles under the agreement in c.u., the actual income of the seller (denominated in Rubles) will not be changed at the shipment date vs. the prepayment receipt date. Any c.u. exchange rate fluctuations between these dates will always give rise to 118 Rubles in any cases.
Thus, the tax accrued from a prepayment or shipment will not be amended, amounting one and the same 18 Rubles. If the prepayment is made by installments the rest part of the revenue (uncovered by this prepayment) shall be calculated for the VAT purpose at the c.u. rate set forth at the shipment date.
This case does not have any direct reference to the Tax Code Regulations, but many explanations of the RF Ministry of Finance comply with the economic essence of such relations arranged under c.u. agreements (constant Ruble income initially received as a prepayment) that is they are substantiated. (item 3, Cl.167, the RF Tax Code).
Chief Methodologist of Energy Consulting highlighted as well whether a supplier was entitled now to issue a bill and invoice denominated in c.u. and send consignment notes and invoices in Rubles if the bill had been denominated before in c.u.