Accounting for finished products for the needs of our own production. Transfer of goods for own needs Costs for own needs are not subject to write-off

"Russian Tax Courier", N 19, 2004

In the economic activities of an organization, there are often cases of performing work, providing services or transferring goods for its own needs. What does this mean? Does VAT always arise in such situations?

When does the object of taxation arise?

The object of VAT taxation is the transfer of goods on the territory of Russia (performance of work, provision of services) for one’s own needs, the costs of which are not deductible when calculating corporate income tax. This is stated in paragraph 2 of paragraph 1 of Article 146 of the Tax Code of the Russian Federation.

The above definition highlights two key conditions necessary for the emergence of an object of taxation:

• transfer of goods (performance of work, provision of services);
• impossibility of recognizing the cost of these goods (works, services) as an expense for profit tax purposes (see box).

Let's consider when a situation may arise in which these two conditions are satisfied simultaneously. This is possible only in the case of transfer of goods (performance of work, provision of services) from a structural unit that receives income (income-generating activity) to a unit that does not receive income (non-income-generating activity), but is maintained at the expense of the organization’s own funds. For example, the organization has a boiler house that supplies thermal energy for production needs and also serves the canteen. The canteen provides food to the organization's employees free of charge. That is, the canteen does not receive income. In this case, the transfer of thermal energy from the boiler room to the canteen is carried out for the organization’s own needs, which in turn leads to the emergence of an object of VAT taxation.

The object of taxation will also arise in the case where the goods were initially purchased for activities aimed at generating income, but then used in activities that do not generate income. That is, instead of restoring the deductible “input” VAT on the purchased goods when transferring them for one’s own needs, VAT must be charged on the cost of the goods. For example, the organization purchased a cabinet for the office, but then transferred it to its own gym, which is used free of charge by the employees of this organization. In this case, an object of VAT taxation will arise.

However, if an organization initially purchases a product, the costs of which are not accepted when calculating income tax, and this product is used in one of the organization’s divisions, the object of VAT taxation does not arise. After all, the transfer of goods in such a situation does not occur. The above is also true for cases of acquisition of works and services, the cost of which does not reduce the taxable profit of the organization.

Note! Expenses not accepted when calculating income tax

When calculating income tax, the following expenses are not recognized:

• not economically justified and not related to activities aimed at generating income (clause 1 of Article 252 of the Tax Code of the Russian Federation);
• not documented (clause 1 of Article 252 of the Tax Code of the Russian Federation);
• expressly specified in Article 270 of the Tax Code of the Russian Federation.

Please note: when transferring goods (work, services) to servicing industries and farms, their value will be subject to VAT in the part not accepted when calculating income tax. If the cost of goods (work, services) is included for the purpose of calculating income tax as part of the expenses of service production, the object of VAT taxation does not arise.

How to determine the tax base

So, in the organization there has been a transfer of goods (performance of work or provision of services) from a structural unit that receives income (income-generating activity) to a unit that does not receive income (activity that is carried out at its own expense). The organization has an obligation to charge VAT on the cost of the specified goods (works, services). How to determine this value?

According to clause 1 of Article 159 of the Tax Code of the Russian Federation, in this case, the tax base for VAT is determined as the cost of transferred goods (work performed, services rendered), calculated on the basis of:

• from the sales prices of identical (and in their absence, homogeneous) goods (similar works, services) that were in effect in the previous tax period;
• from market prices taking into account excise taxes (for excisable goods) and without including VAT.

If an organization transfers goods (performs work, provides services) for its own needs, similar to those sold in the previous tax period, there are no problems with determining the tax base. The calculation includes prices at which the same goods (work, services) were sold in the previous tax period<*>.

<*>For most organizations, the tax period is a calendar month. For taxpayers (tax agents) with monthly quarterly amounts of revenue from the sale of goods (work, services) excluding VAT not exceeding 1 million rubles, the tax period is established as a quarter (Article 163 of the Tax Code of the Russian Federation).

What if there was no similar implementation during the specified period? Then the organization needs to determine the market price of goods transferred for its own needs (work performed, services provided). The market price is the price established by the interaction of supply and demand on the market of identical (and in their absence, homogeneous) goods (works, services) under comparable economic (commercial) conditions (Article 40 of the Tax Code of the Russian Federation).

To determine the market price, you need to use official sources of information on market prices for goods, works or services and stock exchange quotes. For example, information from state statistical bodies and bodies regulating pricing, data on market prices published in print media or brought to the attention of the public by other media.

However, in practice, obtaining information about market prices is not easy. Therefore, in the absence of such information, calculation methods are used to determine the market price. According to clause 10 of Article 40 of the Tax Code of the Russian Federation, the market price is calculated using the subsequent sales price method. If this method cannot be applied, the cost method is used. That is, the market price is recognized as equal to the sum of the costs incurred and the profit usual for a given field of activity.

At the same time, in most cases, the above methods are difficult to apply in practice, because the work and services are mostly unique. Therefore, the organization’s expenses for the production of goods, performance of work or provision of services consumed for its own needs, in fact, will be the “market price”. In the absence of information on the market prices of purchased goods that are transferred for one’s own needs, the price of their acquisition will be used in calculating the tax base.

VAT calculation

When the tax base is determined, you can proceed to the calculation of VAT. The amount of VAT when transferring goods (performing work, providing services) for one’s own needs is charged in excess of the cost of these goods (work, services). This is defined in paragraph 1 of Article 166 of the Tax Code of the Russian Federation.

When transferring goods (performing work, providing services) for its own needs, the organization must draw up an invoice and register it in the sales book and the journal of issued invoices (clause 3 of Article 169 of the Tax Code of the Russian Federation). The invoice is drawn up in one copy, since in this case there is no sale of goods (work, services) and the amount of VAT is not presented for payment.

The cost of transferred goods (work performed, services provided) and the calculated amount of VAT are reflected depending on the rate on lines 230 or 240 of section 2.1 of the tax return. The form of this declaration was approved by Order of the Ministry of Taxes and Taxes of Russia dated November 20, 2003 N BG-3-03/644.

Let's look at an example of how VAT is calculated when transferring goods for one's own needs.

Example 1. The chairs were made at the furniture factory. Five chairs were donated to the canteen, which does not receive income but is maintained at the expense of the organization’s own funds. The actual cost of one chair is 400 rubles. The sales price of the same chair in the previous month was 500 rubles. (excluding VAT). The tax period for VAT is a month.

The cost of chairs is 2000 rubles. (400 rubles x 5 pcs.) is not included in expenses when calculating income tax, since these expenses do not meet the criteria specified in clause 1 of article 252 of the Tax Code of the Russian Federation. Thus, in accordance with paragraph 2 of paragraph 1 of Article 146 of the Tax Code of the Russian Federation, an object of taxation arises. The tax base is determined as the sales price of one chair in the previous tax period (500 rubles), multiplied by the number of chairs transferred for one’s own needs (5 pieces). The amount of VAT accrued to the budget will be 450 rubles. (500 rub. x 5 pcs. x 18%).

"Input" VAT

Does an organization have the right to deduct VAT amounts paid to suppliers of goods (works, services) transferred for its own needs?

According to paragraph 1, paragraph 2, Article 171 of the Tax Code of the Russian Federation, VAT amounts presented to the taxpayer and paid by him upon acquisition (import into the customs territory of Russia) of goods (work, services) for the implementation of transactions recognized as objects of taxation under VAT are subject to deductions.

Since the transfer of goods (performance of work, provision of services) for its own needs is subject to VAT taxation, the organization has the right to deduct “input” tax. This tax amount is shown on line 310 and is deciphered on line 317, section 2.1 of the VAT tax return.

Example 2. In September 2004, the organization renovated the kindergarten, which is on its balance sheet and financed from its own funds. In August, the organization did not perform similar work for third parties. The market price of such work is 160,800 rubles. without VAT.

Repair costs include:

• wages and unified social tax - 32,200 rubles;
• materials used for repairs - 102,000 rubles. without VAT.

Expenses for repairing a kindergarten will not be taken into account when calculating income tax, since they are not carried out as part of an activity aimed at generating income. Therefore, VAT in the amount of RUB 28,944 must be charged on the market price of the work. (RUB 160,800 x 18%).

The amount of “input” VAT that is accepted for deduction is equal to 18,360 rubles. (RUB 102,000 x 18%).

Thus, no later than October 20, 2004, the organization must pay VAT to the budget in the amount of 10,584 rubles. (RUB 28,944 - RUB 18,360).

E.V.Selina

Journal expert

"Russian tax courier"

TATYANA IVCHENKO, auditor, tax consultant, general director of 000 "Audit-Expert"

With the help of amendments to legislation and decisions of arbitration courts, previously rather controversial issues of accounting for operations on construction and installation work for one’s own consumption have become much more logical and clearer.

Tax legislation does not contain a definition of “construction and construction work for own consumption”. By virtue of paragraph 1 of Art. 11 of the Tax Code of the Russian Federation, one should be guided by the definitions contained in the regulations of Rosstat (see Letters of the Ministry of Taxes of the Russian Federation dated March 24, 2004 No. 03-1-08/819/16, Federal Tax Service for Moscow dated January 31, 2007 No. 19-11/8073 and dated 02/25/05 No. 19-11/11713).

Correct Qualification

In accordance with the Resolution of the State Statistics Committee of Russia dated December 24, 2002 No. 224, Rosstat dated December 16, 2005 No. 101 and Rosstat Order dated November 12, 2008 No. 278, for construction and installation work (including installation and adjustment of equipment necessary for the operation of buildings, for example installation and installation of equipment for heating, ventilation, elevators, electrical, gas and water supply systems, etc.), performed in an economic way, includes work carried out for its own needs, by the organization’s own resources, including work for which the organization allocates construction funds workers of the main activity with the payment of wages to them according to construction orders, as well as work performed by construction organizations for their own construction (not under contract agreements, but, for example, during the reconstruction of their own office, the construction of their own production base, a warehouse for storing building materials, etc.) P.).

When carrying out construction and installation work in an economic way, the manufacturer and customer of construction work are the same legal entity. To carry out construction and installation work by an organization that is not a construction contractor, it is necessary to carry out a number of rather costly preparatory measures. Before starting construction using an economic method, you need to create your own production base, purchase or rent construction machines and mechanisms, tools and equipment, etc. In addition, the structure of the enterprise must provide a special unit that will directly deal with construction, hire the necessary specialists with payment of wages according to construction orders, have a license for the right to carry out the relevant construction and installation works (Resolution of the Federal Antimonopoly Service dated April 25, 2007 No. A57-11919/06-6). Since 2010, it is necessary to be a member of the relevant SRO, having paid membership fees, entrance fees and contributions to the compensation fund.

Moreover, from para. 3 clause 22 of Rosstat Resolution No. 2 and from decisions of a number of arbitration courts (for example, Resolution of the Federal Antimonopoly Service of the West Siberian District dated April 30, 2008 No. Ф04-2723/2008(4424-А0З-41) in case No. А0З-6547/2007-14 ) it follows that if, during construction using an economic method, individual works are performed by contractors, then the cost of these works is not included in the cost of construction and installation work for own consumption. It is also necessary to separate construction and installation work from equipment installation. Construction and installation work is of a capital nature; its result is either the creation of a new fixed asset, including real estate, or an increase in the initial cost of an existing object. If during installation work there are no construction elements, then the accounting of the work is carried out according to other rules.

A fixed asset can be built for own consumption in three ways:

Contractor (if the work is carried out by third-party contractors);

Economic (if the company carries out construction independently);

In a mixed way.

In accounting, the initial cost of fixed assets built by any of these methods is the sum of all the costs of their construction and commissioning (costs of purchasing materials, purchasing and installing equipment, paying workers, etc.).

The same rule applies in tax accounting, but only under one condition - construction is carried out by contract (Clause 1, Article 257 of the Tax Code of the Russian Federation).

After the work is completed, a report is drawn up indicating the estimated cost of construction.

If an organization enters into an agreement with a customer-developer for the investment of a real estate property being built for it, then accounting is carried out in accordance with Federal Law No. 39-FZ dated February 25, 1999 (as amended on July 24, 2007).

Funds for construction financing, transferred in accordance with the terms of agreements concluded with developers, are taken into account by investors as a debit to account 76 in a subaccount specially opened for this purpose. These funds are thus taken into account throughout the entire construction. Upon completion of construction, after receiving, in accordance with the established procedure, documents from the developer confirming the costs incurred during the construction process and the amount of value added tax paid, investors take into account the cost of construction of the received share using the following entries:

The actual construction costs in terms of the share transferred by the developer to the investor may differ from the amount of the investment contribution.

If construction costs are greater than the amount of the investment contribution according to the estimate, then the parties must determine at whose expense the difference will be covered. If the developer covers the difference, he can do this at his own expense, without taking them into account for tax purposes. If the customer is a customer, then you can agree on an addition to the estimate and take into account additional costs also as part of invoice 08.

If construction costs are less than the amount of the investment contribution, then the resulting difference is either returned to the investor or remains at the disposal of the developer as his income on the basis of an appropriate agreement between the parties to the contract.

After registering the ownership of the received share in the construction project, this share is included in the organization’s fixed assets.

With the economic method, the company carries out construction work independently (that is, without involving third-party contractors). In this case, all costs associated with construction (cost of building materials, depreciation of fixed assets used for construction, wages of workers, etc.) are also recorded as the debit of account 08.

This is reflected in accounting as follows:

Dt08-3 – Kt10 (02,70,69...) - reflects the costs of construction work performed on our own.

The cost of construction and installation work for the organization's own consumption is subject to VAT. In this case, the amount of tax accrued when performing work is subject to deduction.

For income tax purposes, the share received by the investor upon completion of construction, from the moment of filing documents for state registration, is included in fixed assets (depreciable property) at the actual cost of construction.

The amount of VAT received from the developer under a consolidated invoice can be taken as a tax deduction in accordance with clause 6 of Art. 171 Tax Code of the Russian Federation.

In tax accounting, the initial cost of constructed, manufactured fixed assets is determined by:

As the sum of all actual costs associated with the construction and production of an object, with the exception of VAT and excise taxes (clause 1 of Article 257 of the Tax Code of the Russian Federation). This refers to the situation when an organization initially creates (builds) an object of fixed assets for its own needs;

As the cost of finished products, if the organization decides to use part of the produced fixed assets for its own needs (clause 2 of Article 319 of the Tax Code of the Russian Federation). This refers to a situation where an organization produces fixed assets as part of marketable products and, for example, decides to keep some objects for its own consumption.

In conclusion, it should be noted that fixed assets, the rights to which are subject to state registration in accordance with the legislation of the Russian Federation, are included in the corresponding depreciation group from the moment of the documented fact of filing documents for registration of these rights (clause 11 of Article 258 of the Tax Code of the Russian Federation).

Depreciation for tax purposes is accrued from the 1st day of the month following the month the fixed asset was put into operation.

VAT

In accordance with sub. 3 p. 1 art. 146 of the Tax Code of the Russian Federation, construction and installation work performed for one’s own consumption is subject to VAT. Until 2009, VAT on construction and installation work performed for one’s own consumption was deducted as VAT was paid to the budget, that is, in the next quarter.

Starting with the submission of the VAT return for the first tax period of 2009, in accordance with clause 9 of Art. 2 of Federal Law No. 224-FZ dated November 26, 2008, it reflects both the amounts of tax calculated when performing construction and installation work for one’s own consumption, and the amounts of this tax subject to deduction. The Federal Tax Service of the Russian Federation also stated this in Letter No. ШС-22-3/216@ dated March 23, 2009 (agreed with the Ministry of Finance of the Russian Federation).

In accordance with the standards set out in paragraph 4 of Art. 166 of the Tax Code of the Russian Federation, the total amount of tax is calculated based on the results of each tax period in relation to all transactions recognized as an object of taxation in accordance with subparagraph. 1 -3 p. 1 tbsp. 146 of the Tax Code of the Russian Federation, the moment of determining the tax base of which, established by Art. 167 of the Tax Code of the Russian Federation, refers to the corresponding tax period, taking into account all changes that increase or decrease the tax base in the corresponding tax period.

According to paragraph 10 of Art. 167 of the Tax Code of the Russian Federation, the moment for determining the tax base when performing construction and installation work for one’s own consumption is the last date of each tax period.

Consequently, the accrual of VAT payable on construction and installation works for one’s own consumption and the deduction of these amounts will be carried out in the same tax period.

Amounts of VAT not accepted for deduction, which are calculated by the taxpayer for construction and installation work for his own consumption, carried out in the period from 01/01/06 to 01/01/09, are accepted for deduction in the previously valid procedure (clause 13 of article 9 of the Federal Law). That is, if the organization did not have time to deduct the VAT accrued on the cost of construction and installation work in the period from 01/01/06 to 01/01/09, then it must be paid to the budget, and only then can it be accepted for deduction. In the general case (if no errors were made when calculating the tax base and you transferred VAT to the budget on time), this provision applies only to amounts accrued for construction and installation work performed in the fourth quarter of 2008.

Therefore, for example, the amount of VAT accrued in December 2008 could be deducted only in the 1st quarter of 2009 (after paying VAT to the budget on the declaration for the 4th quarter of 2008). Accordingly, the second copy of the invoice, issued in December 2008, must be registered in the purchase book only after the tax has been paid to the budget.

When deciding on the legality of the tax authority’s refusal to deduct the VAT amounts paid to the contractor for construction and finishing work, the lower courts were guided by the provisions of paragraph 1 of Art. 166, para. 1 and 2 clauses 6 art. 171, paragraph 5 of Art. 172, art. 173, para. 1 item 2 art. 259 of the Tax Code of the Russian Federation.

Based on para. 3 paragraph 6 art. 171 of the Tax Code of the Russian Federation, concerning tax deductions when performing construction and installation works for one’s own consumption, the courts considered that the company did not have the right to deduct VAT, since Art. 171 of the Code makes this right dependent on the right to include the cost of completed construction and finishing work as expenses when calculating income tax. In other words, the courts classified the taxpayer’s expenses for paying for construction and finishing work performed by contractors as construction and installation work for their own consumption and indicated that since the company (taxpayer) does not have ownership of the property, its expenses for the production of inseparable capital improvements in this property (subsequently rented) cannot be taken into account as expenses for income tax purposes, and therefore it cannot be granted the right to a tax deduction for VAT.

However, the Supreme Arbitration Court of the Russian Federation did not agree with this logic and recognized the taxpayer’s right to deduct VAT, regardless of whether there was a civil legal registration of relations for the production of inseparable improvements within the framework of a lease agreement for real estate. In the absence of the subject of the real estate lease agreement, the consent of the lessor cannot legally take place. Probably, this position of the Supreme Arbitration Court of the Russian Federation regarding the legality of deducting “input” VAT in relation to inseparable improvements, consent to which is given by a person who is not the lessor of the real estate object (before its state registration), can also be extended to justify the right to deduction when lack of landlord's consent.

The contracting method involves the involvement of construction companies from outside. It is clear that in this situation the organization will pay VAT as part of the payment for the contractor’s services. He will have to pay the budget for this tax. The customer will receive the opportunity to deduct in accordance with clause 6 of Art. 171 of the Tax Code of the Russian Federation. Note that in no other context is contract construction mentioned in Chapter 21 of the Code.

The situation is not so clear with regard to the taxation of construction and installation works when they are carried out in a mixed way. There is no concept of “mixed method” for VAT in the Tax Code of the Russian Federation at all. Because of this omission, two years ago the Ministry of Finance of the Russian Federation issued very unfavorable explanations for payers on how to calculate VAT in this case. According to financiers, this had to be done by analogy with the “economic” method. That is, pay tax on the full amount of construction costs, both using your own and external resources (Letter of the Ministry of Finance of the Russian Federation dated January 16, 2006 No. 03-04-15/01). Moreover, the Federal Tax Service of the Russian Federation immediately began to use the position of the Ministry of Finance, bringing it to its territorial divisions for further use by inspectors and payers (Letter of the Federal Tax Service of the Russian Federation dated January 25, 2006 No. MM-6-03/63).

Thus, organizations carrying out construction and installation work for their own consumption were required to pay tax not only for themselves, but also for the contractor. Despite the fact that the latter is already obliged to remit VAT on the implementation of construction work. What should be done with the “contract” deduction, which is due to the company under construction under clause 6 of Art. 171 of the Code, the tax authorities did not explain.

Fortunately, this controversial situation did not last long. In March 2007, at the request of one of the organizations, the Supreme Arbitration Court of the Russian Federation, in decision dated 03/06/07 No. 15182/06, declared the part of the mentioned letter of the Ministry of Finance of the Russian Federation invalid. The one that talks about charging a “contract” tax during construction for one’s own needs. The Ministry of Finance tried to defend its position in arbitration courts, but they did not support it.

The Presidium of the Supreme Arbitration Court of the Russian Federation, in Resolution No. 7526/07 dated October 09, 2007, recognized the legality and validity of the initial court decision. Thus, when constructing for your own needs, it is necessary to charge and pay VAT only on your own part of the costs.

The right to deduct “input” tax on materials purchased for capital construction does not depend on the fact of filing documents for state registration of rights to the object.

Not so long ago, one of the conditions for deducting input VAT was its payment to the supplier. There have been quite a lot of disputes between taxpayers and tax authorities on this matter. One can recall the sensational Determinations of the Constitutional Court of the Russian Federation dated April 8, 2004 No. 169-O and November 4, 2004 No. 324-O, in which the “reality” of the costs incurred by the buyer (at the expense of one’s own, and not at the expense of borrowed funds) was put forward as a prerequisite for deduction of “input” tax.

The topic has not lost its relevance today. At the end of last year, the Presidium of the Supreme Arbitration Court of the Russian Federation had to return to it (see Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated October 2, 2007 No. 3969/07).

Based on the results of a desk audit, the inspectorate decided to deny the joint-stock company the application of a VAT deduction. The basis was that the company paid its partners partly with funds received under the loan agreement, and partly with money received from the sale of its own shares. According to the inspectors, in this case, the company’s expenses did not correspond to the concept of “real”, since the loan had not been repaid at the time of drawing up the VAT return, and the organization sold the securities to a future supplier. That is, according to the inspectors, the offset of the tax from the budget was illegal.

But the Presidium of the Supreme Arbitration Court of the Russian Federation did not agree with the arguments of the tax authorities. First of all, the judges pointed out that when the company made payments to its counterparties, “there was a real movement of funds in settlement accounts.” At the same time, goods and services were purchased for VAT-taxable transactions. In addition, all funds - both borrowed and received from the sale of shares - are the property of the company, and it has the right to dispose of them at its own discretion. At the same time, the company made payments to repay the loan without delay, within the terms established by the contract. In addition, among the conditions established in the Tax Code of the Russian Federation for obtaining a VAT deduction, there is no condition for full payment of borrowed funds.

The judges of the Supreme Arbitration Court found the ways for the company to attract additional capital to be completely justified and economically feasible. And this removes from the company suspicions of dishonesty and the focus of its actions solely on obtaining a VAT deduction. At the same time, the judges recalled one important provision from the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation dated October 12, 2006 No. 53 “On the assessment by arbitration courts of the validity of a taxpayer receiving a tax benefit.” According to paragraph 9 of this document, it is impossible to draw unambiguous conclusions regarding the methods of raising capital about the “unreasonability” of a tax benefit (in this case, a VAT deduction). Therefore, the company has every right to the deduction presented in the declaration for the disputed period.

Taxpayers, by virtue of paragraph. 3 paragraph 6 art. 171 of the Tax Code of the Russian Federation, has the right to count on a tax deduction, provided that construction and installation work is related to property intended for carrying out operations taxable in accordance with Chapter 21 of the Tax Code of the Russian Federation, the cost of which is subject to inclusion in expenses (including through depreciation deductions) when calculating corporate income tax.

If, when carrying out construction and installation work, an organization intends to subsequently use the facility on which the work is being carried out for activities not subject to VAT, then the VAT accrued on the cost of construction and installation work cannot be deducted. If it has not yet been determined for what types of activities the object will be used, or if it is planned to conduct both taxable and non-VAT-taxable transactions in the future, then the taxpayer has the right to deduct the entire amount of tax accrued on the cost of construction and installation works. Then, in the period when VAT-free transactions appear in accounting, you will have to restore part of the tax accepted for deduction.

The Federal Tax Service of the Russian Federation in Letter dated November 28, 2008 No. ШС-6-3/862@ also gave the corresponding explanations, agreed with the Ministry of Finance in Letter dated November 13, 2008 No. 03-07-15/116. In the situation under consideration, VAT accrued on the cost of construction and installation works performed for one’s own needs is subject to deduction in the generally established manner. After the object is put into operation (that is, when it begins to be used for operations subject to and not subject to VAT), the previously legally deductible VAT must be restored.

The tax is subject to restoration and payment to the budget in the manner prescribed in paragraphs 4 and 5 of clause 6 of Art. 171 Tax Code of the Russian Federation. In particular, at the end of each calendar year (within 10 years counting from the year in which the object begins to depreciate), the VAT return submitted to the inspectorate at the taxpayer’s place of registration for the last tax period must reflect the restored tax amount.

The amount of tax to be restored and paid to the budget is calculated based on 1/10 of the amount of tax accepted for deduction in the corresponding share. The specified share is determined by the cost of goods shipped (work performed, services rendered), transferred property rights that are not taxed and specified in clause 2 of Art. 170 of the Tax Code of the Russian Federation, in the total cost of goods (work, services), property rights shipped (transferred) for the calendar year. The restored amount of tax is not included in the cost of this property, but is taken into account as part of other expenses in accordance with Art. 264 of the Tax Code of the Russian Federation.

As for the tax deduction of “input” VAT on materials used for construction, the Federal Tax Service of the Russian Federation indicated that VAT presented by contractors (customers-developers) on goods (works, services) purchased for construction and installation work is accepted for deduction in in full, regardless of how this object will be used in the future. This conclusion directly follows from the provisions of the Tax Code of the Russian Federation, because self-employed construction is a VAT-taxable operation, therefore, the taxpayer can offset the VAT claimed by suppliers of materials used during construction. To do this, it is necessary that goods (work, services) be registered and that the organization has primary documents, as well as invoices of suppliers and contractors, properly executed. Of course, payment is not required to accept VAT as a deduction.

If an organization creates or builds an object of fixed assets for activities not subject to VAT, then the amount of tax is not deductible and is included in the initial cost of the object.

During construction, the organization may engage contractors to perform certain types of work. In this case, the VAT tax base should not include expenses for the services of contractors.

The invoice previously recorded in the sales ledger should be recorded in the purchases ledger.

The new procedure for deducting VAT on construction and installation work performed on a self-employed basis practically provided taxpayers with the opportunity not to pay VAT to the budget on the cost of this work. This will not only reduce tax payments, but will also make the work of the accountant easier, since you will not have to track the payment of tax to the budget and then accept it for deduction.

Application of the simplified tax system

Based on sub. 22 clause 1 art. 346.16 of the Tax Code of the Russian Federation, the amount of VAT paid to the budget on the cost of construction and installation work is included in expenses when determining the tax base for the tax paid in connection with the use of the simplified taxation system.

The created fixed asset, subject to its payment and commissioning, is recognized as part of tax expenses in equal parts in the corresponding tax period, subject to the application of the “income minus expenses” base.

Thus, if an organization carries out construction and installation work for its own consumption, being in the general regime, and then begins to apply the simplified tax system, then based on the results of the last VAT tax period preceding the transition to the simplified tax system, it will have to calculate VAT on all actual expenses for the implementation construction and installation work during this period and pay it to the budget.

As you know, the transfer of something for the company’s own needs is subject to VAT. This is often understood as any transfer of values ​​from one structural division of a company to another. Is it correct?

What is meant by the term?

The Tax Code does not define this term. There is no such definition in the documents of the departments - the Ministry of Finance and the Federal Tax Service of Russia. However, after analyzing the official explanations of officials, we can determine the conditions under which the operations performed by the company can be qualified as “transfer of goods (performance of work, provision of services) for its own needs,” and such transfer is subject to VAT. There are two main conditions, and they must be met simultaneously.

Condition one: there was an actual transfer of goods (performance of work, provision of services) between the structural divisions of the company. This conclusion follows, in particular, from letters of the Ministry of Taxes and Taxes of Russia dated January 21, 2003 No. 03-1-08/204/26-B088 and the Ministry of Finance of Russia dated June 16, 2005 No. 03-04-11/132.

Condition two: expenses for the acquisition (manufacturing) of transferred goods (works, services) do not reduce the company’s taxable profit. This conclusion follows directly from the wording given in subparagraph 2 of Article 146 of the Tax Code of the Russian Federation. If at least one of these conditions is not met, do not charge VAT.

Based on the results of audits, several main situations can be identified when the accounting department has a question about whether it is necessary to pay VAT in this case. These are the situations:

Property is transferred from the production to the non-production division of the company;

Property is transferred from one production unit of the company to another;

There was no transfer of property between the company's structural divisions, but the costs of purchasing this property are not taken into account when taxing profits.

Let us consider in detail how to resolve the issue of paying VAT in each of these cases.

Transfer from production to non-production department

To decide whether it is necessary to pay VAT when transferring goods (performing work, providing services) to a non-production division of a company, it is necessary to determine how these expenses will be taken into account for tax purposes. The answer to this question will depend, in particular, on the sources from which this non-production division is financed.

Example 1

The paint and varnish plant sells its own products - varnishes and paints for repair work. By decision of the production director, in the first quarter of 2008, 20 cans of paint were transferred for repairs at the recreation center, which is on the balance sheet of the plant.

Option 1

By decision of the founders of the plant, the recreation center is financed from the net profit remaining at the disposal of the company after taxation. The plant's employees rest at the base for free. The recreation center does not conduct any income-generating activities. Since in this case the activities of the recreation center are not aimed at generating income, the company’s costs for the production of transferred paint cannot be taken into account when calculating income tax (since these costs do not meet the expense criteria established in paragraph 1 of Article 252 of the Tax Code of the Russian Federation, they cannot be recognized as economically feasible). Therefore, the transfer of paint is subject to VAT.

Option 2

The recreation center is financed from the income it receives itself. Both company employees and third-party tourists rest at the base for a fee. In this case, the activities of the recreation center are aimed at generating income. Consequently, the company's costs for the production of the transferred paint are taken into account when calculating income tax. And if so, the transfer of paint is not subject to VAT.

Example 2

The company produces medical equipment, in particular tonometers. Tonometers are included in the List of the most important and vital medical equipment, the sale of which in Russia is not subject to VAT (approved by Decree of the Government of the Russian Federation of January 17, 2002 No. 19). In the All-Russian Product Classifier, tonometers are assigned code 94 4130, which is included in the group of medical equipment under code 94 4100 “Measuring devices for functional diagnostics.”

When selling tonometers, the company uses VAT exemption in accordance with subparagraph 1 of paragraph 2 of Article 149 of the Tax Code of the Russian Federation. By decision of the production director, in the first quarter of 2008, 10 tonometers were transferred to the recreation center, which is on the company’s balance sheet. In this case, the transfer of tonometers is not subject to VAT. Moreover, regardless of whether or not the taxable profit of the enterprise is reduced by the costs of maintaining the recreation center. Grounds - paragraph 2 of Article 149 of the NKRF

In this case, as a rule, there are no grounds for charging VAT in accordance with subparagraph 2 of paragraph 1 of Article 146 of the Tax Code of the Russian Federation (when transferring for one’s own needs). Of course, provided that the company’s expenses for the acquisition (production) of transferred goods (works, services) reduce its taxable profit.

Accountants often ask the following question: is it necessary to charge VAT on the cost of surplus materials identified during inventory and transferred for production purposes to another division of the company? We answer: no, it’s not necessary.

The fact is that the value of surpluses identified during inventory is taken into account when taxing profits. True, expenses do not include their entire cost, but only part of it (clause 2 of Article 254 of the Tax Code of the Russian Federation). It is calculated as follows: the amount of non-operating income that was reflected in tax accounting when capitalizing the surplus is multiplied by the income tax rate (24%).

The result obtained is the amount that can be taken into account in tax expenses. Thus, there is no need to charge VAT on the transfer of surplus. A similar point of view is reflected in the letter of the Ministry of Finance of Russia dated September 1, 2005 No. 03-04-11/218. If there is no transfer If there is no fact of transfer, there are no grounds for charging VAT in accordance with subparagraph 2 of paragraph 1 of Article 146 of the Tax Code of the Russian Federation. Even if the purchase price does not reduce the company’s taxable profit.

Example 4

In December 2007, the consulting company purchased a batch of New Year's toys. The purchased toys were used to decorate the office during a corporate event. Since these expenses are not aimed at generating income, they are not taken into account when taxing profits. However, the toys were not transferred to the structural divisions of the company. Therefore, there are no grounds for charging VAT.

How to calculate VAT when transferring goods (work, services) for your own needs, the costs of which are not taken into account when calculating income tax. Rules for determining the tax base when transferring goods (work, services) for one’s own needs.

Question: The company on OSNO is engaged in the sale of chemical products, has a grocery store, canteens where products are sold to customers (at sales prices including trade margins and VAT). Question: if an enterprise writes off products as for its own needs as expenses in accounting at prices without bargaining. mark-ups, whether we correctly calculate VAT for our own needs at discounted prices without bargaining. mark-ups or is it necessary to take into account the trade mark-up, because Identical products are sold by our company in stores and cafeterias.?

Answer: The transfer of goods for the organization's own needs is subject to VAT only if two conditions are simultaneously met:

AND );

, ).

In this case, VAT must be charged. The rules for determining the tax base when transferring goods (work, services) for one’s own needs are established in paragraph 1

identical (and in their absence - homogeneous

clause 1 art. 159 of the Tax Code of the Russian Federation).
If in the previous quarter the organization did not sell identical (homogeneous) material assets (similar work, services), then VAT must be calculated based on the market prices of such goods (work, services) without including tax (clause 1 of Article 159 of the Tax Code of the Russian Federation) .

Please note, for example, tea, coffee, sugar, etc. are purchased for shared consumption by employees without personalization; VAT is not required on the cost of such food.

Rationale

How to calculate VAT when transferring goods (work, services) for your own needs, the costs of which are not taken into account when calculating income tax

When to charge VAT

When transferring goods for your own needs (performing work, providing services), the acquisition costs of which do not reduce taxable profit (including through depreciation deductions), VAT must be charged (subclause 2, clause 1, article 146 of the Tax Code of the Russian Federation).

The obligation to charge VAT when transferring goods (performing work, providing services) for one’s own needs can arise only if the following two conditions are simultaneously met:

there was an actual transfer of goods (performance of work, provision of services) to the structural divisions of the organization, including service industries and farms or separate divisions (letter of the Ministry of Finance of Russia dated June 16, 2005 No. 03-04-11/132 and the Ministry of Taxes of Russia dated January 21 2003 No. 03-1-08/204/26-B088);

costs of transferred goods (services) cannot be taken into account as expenses that reduce taxable profit.

In arbitration practice there are examples of court decisions confirming the legality of this approach (see, for example, decisions of the FAS Volga-Vyatka District dated July 16, 2010 No. A29-8359/2009, Moscow District dated April 6, 2009 No. KA-A40/ 2402-09).

For information about what entries need to be made in accounting when calculating VAT on transactions involving the transfer of goods (performance of work, provision of services) for your own needs, see How to reflect VAT in accounting and taxation.

Situation: Is it necessary to charge VAT on the cost of property (household appliances, tea, coffee, etc.) purchased for shared use by employees and visitors of the organization. The cost of property is not taken into account in expenses that reduce taxable income

No no need.

Sharing (consumption) by employees and visitors of an organization of property acquired by it can be classified as:

or as a sale (free transfer) of goods (subclause 1, clause 1, article 146 of the Tax Code of the Russian Federation);

or as the transfer of goods for the organization’s own needs (subclause 2, clause 1, article 146 of the Tax Code of the Russian Federation).

The object of VAT taxation is the sale or gratuitous transfer of goods, during which their owner changes (subclause 1, clause 1, article 146, clause 1, article 39 of the Tax Code of the Russian Federation). In case of gratuitous transfer, the object of VAT taxation arises only if the ownership of the acquired property is transferred to specific persons. If the property is acquired for the needs of the organization, the ownership of this property is not transferred to specific individuals, and the nature of its use is not related to production and sale. Therefore, there is no need to charge VAT on the value of the property. This follows from letters of the Ministry of Finance of Russia dated August 25, 2016 No. 03-07-11/49599, dated December 13, 2012 No. 03-07-07/133 and dated May 12, 2010 No. 03-03-06/1 /327.

As for the transfer of goods for one’s own needs, the obligation to charge VAT when transferring goods (performing work, providing services) for one’s own needs can arise only if two conditions are simultaneously met:

there was an actual transfer of goods (work, services) to the structural divisions of the organization, including service industries and farms or separate divisions (letter of the Ministry of Finance of Russia dated June 16, 2005 No. 03-04-11/132 and the Ministry of Taxes of Russia dated January 21, 2003 No. 03-1-08/204/26-B088);

costs for the acquisition of transferred goods (works, services) cannot be taken into account as expenses that reduce taxable profit.

In arbitration practice there are examples of court decisions confirming the legality of this approach (see, for example, decisions of the FAS Volga-Vyatka District dated July 16, 2010 No. A29-8359/2009, Moscow District dated April 6, 2009 No. KA-A40/ 2402-09).

In the situation under consideration, the acquired property is not transferred to structural units - it goes into joint impersonal use (consumption) by employees and visitors of the organization, that is, by an indefinite circle of persons. Since the first of the mandatory conditions is not met, the organization has no grounds for charging VAT in accordance with subparagraph 2 of paragraph 1 of Article 146 of the Tax Code of the Russian Federation. Despite the fact that the value of this property does not reduce taxable income.

Considering that the acquired property is not used in transactions subject to VAT, in the situation under consideration the organization has no grounds for deducting input VAT on this property (letter of the Ministry of Finance of Russia dated December 13, 2012 No. 03-07-07/133).

Determination of the tax base

The rules for determining the tax base when transferring goods (work, services) for one’s own needs are established in paragraph 1 of Article 159 of the Tax Code of the Russian Federation. In this case, two options are possible:

in the previous quarter, the organization sold identical (or, in their absence, homogeneous) material assets (similar work, services);

in the previous quarter, the organization did not sell identical and homogeneous material assets (similar work, services).

If in the previous quarter the organization sold identical (homogeneous) material assets (similar work, services), then VAT must be calculated based on their price (clause 1 of Article 159 of the Tax Code of the Russian Federation). 6-NDFL with the amount of payments calculated for insurance premiums. Inspectors will begin to apply this control ratio starting with reporting for the first quarter. All control ratios for checking 6-NDFL are given in. For instructions and samples of filling out 6-NDFL for the first quarter, see the recommendations.”

VAT for own needs (Brot I.)

Article posted date: 03/31/2013

For the purpose of calculating VAT, the object of taxation includes the transfer of goods, performance of work or provision of services for one’s own needs. This is true only on the condition that expenses for such are not taken into account when calculating income tax. This article will discuss when such an object of taxation arises.

The object of taxation for value added tax is determined by Art. 146 of the Tax Code. According to paragraphs. 2 clause 1 of this article, in addition to sales transactions, the transfer of goods on the territory of the Russian Federation, as well as the performance of work or provision of services for one’s own needs, the costs of which are not deductible (including through depreciation deductions) when calculating income tax, are recognized as such. .

Transfer for own needs

The Tax Code does not define the concept of “own needs”. Its definition can be found in clause 5.8 of the Instructions for filling out the federal statistical observation form N 22-Housing and communal services (consolidated) “Information on the work of housing and communal organizations in the conditions of reform”, approved by Rosstat Order No. 41 of January 31, 2013. According to this norm production (own) needs are the consumption of water, heat, electricity, gas for organizing the technological process of production and transportation of services, as well as for the household needs of organizations. Moreover, taking into account that form N 22-Housing and communal services (consolidated) is filled out by business entities that provide public services to the population, water, heat, electricity, gas should mean resources produced by the housing and communal services organization. Thus, we can conclude that in paragraphs. 2 p. 1 art. 146 of the Tax Code, we are talking about cases when products of own production are sold for own needs.
Meanwhile, within a company such operations are necessary and, in principle, possible only if there are separate divisions in its structural organization. At the same time, it is obvious that, unlike goods purchased externally, work or services ordered from third parties cannot be “overfulfilled” or “overprovided” by one “outsourcer” for another. And if there is no transfer of anything between divisions, then the object of VAT taxation does not arise (Resolutions of the Federal Antimonopoly Service of the West Siberian District dated June 25, 2012 N A67-3382/2011; FAS Moscow District dated September 28, 2011 N A40-61104 /10-116-271).
Thus, we can conclude that transfer for own needs arises only when:
- goods are transferred from one structural unit to another;
- one division performs work (provides services) for another division.
A similar point of view is expressed by the Ministry of Finance of Russia (Letter of the department dated June 16, 2005 N 03-04-11/132).
Consequently, the object of VAT taxation arises if expenses for goods, work, services in these cases are not taken into account when taxing profits. The question is, does this mean that they should, in principle, not be accepted for tax accounting or VAT will not have to be calculated even if the taxpayer, of his own free will, did not include their income tax expenses?

Object of VAT taxation

The list of expenses not taken into account for profit tax purposes is given in Art. 270 of the Tax Code and is open in nature. According to paragraph 49 of this article, when calculating income tax, any other expenses that do not meet the criteria given in paragraph 1 of Art. 252 of the Code. Let us remind you that in accordance with the latter, only expenses are recognized in tax accounting:
- justified (economically justified);
- documented;
- produced to carry out activities aimed at generating income.
Obviously, if expenses do not meet these criteria, then the object of VAT taxation provided for in paragraphs. 2 p. 1 art. 146 of the Tax Code does not arise. At the same time, if certain expenses comply with all the requirements of the Tax Code, the taxpayer may decide not to include them in reducing the income tax base. Should VAT be charged in this case? As a rule, tax authorities proceed from the fact that the object of VAT taxation arises in the circumstances under consideration. However, arbitration courts, headed by the Presidium of the Supreme Arbitration Court of the Russian Federation, take a different point of view. If the taxpayer does not exercise the right to include costs associated with the transfer of goods (performance of work, provision of services) for his own needs as expenses for profit tax purposes, then this does not entail the emergence of an object of taxation for VAT (Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated June 19, 2012 N 75/12; Federal Antimonopoly Service of the East Siberian District dated October 30, 2007 N A33-18423/06-F02-8077/07).

Note! In certain cases, the operation of transferring goods (performing work, providing services) for one’s own needs may be classified as transactions not subject to taxation in accordance with Art. 149 of the Tax Code. Therefore, there is no need to charge VAT in such circumstances.

In other words, the obligation to pay VAT when transferring goods (performing work, providing services) for one’s own needs arises only if two conditions are simultaneously met. Firstly, the very fact of transfer within the organization from one structural unit to another is necessary. Secondly, the fact that it is impossible to take into account (including through depreciation) the organization’s costs for the purchase of transferred goods or for performing work (rendering services) as expenses that reduce income tax (Resolution of the Federal Antimonopoly Service of the West Siberian District dated June 25, 2012 No. in case No. A67-3382/2011).
Moreover, in the Resolution of June 15, 2011 in case No. A33-18079/2008, representatives of the FAS of the East Siberian District came to the conclusion that the object of VAT taxation for own needs does not arise if the corresponding expenses cannot be taken into account when calculation of income tax insofar as the goods are transferred (work performed, services provided) for a unit conducting activities subject to UTII.

The procedure for determining the tax base

The VAT base for the transfer of goods (performance of work, provision of services) for one’s own needs is determined in the manner provided for in paragraph 1 of Art. 159 of the Tax Code. This is taken to be the cost of the corresponding goods (work, services), calculated based on the sales prices of identical (and in their absence, homogeneous) goods (similar work, services) in force in the previous tax period (quarter), and in their absence - based on market prices including excise taxes (for excisable goods) and without including tax. In this case, it is necessary to determine the tax base on the day of the “internal” transfer of goods or performance of work, provision of services (clause 11 of Article 167 of the Tax Code).