VAT Recovery

recovery of VAT - a procedure carried out by the Internal Revenue Service in certain cases.For example, if previously on the property or other assets imposed VAT deductible, when it is transferred to public organizations in the form of associations or cooperatives as a partial payment or a share contribution tax be restored.

When calculating the total amount of the required payment for the base should not take the initial and residual value of the asset.However, the revaluation was not necessary.In addition, when the transfer of property as a contribution to the share capital can be required to obtain from the host company corresponding deduction.Recovery of VAT should be documented.As a rule, such a document serves as an agreement on the transfer of property or an intangible asset in the property of another economic entity with a note on the amount of tax assessed.

Under current law, a legal person shall, having received an invoice for the deduction of value added tax, to register that fact in the book sales.Moreover, the registration is made on the residual value of the asset.What is most interesting, the Ministry of Finance does not consider it necessary to simultaneously display data changes in book purchases.They allow registration in this book is already upon presentation of the right to deduct.Recovery of VAT is essential if the finished products, the services provided, as well as other property used in operations for which the accrual of the tax does not seem necessary action.When the reorganization of the legal entity with the simultaneous transfer of ownership chosen successor, is recovering only the size of the tax deduction.

So, the question remains as to where are the amounts of VAT and as a member of the accounting department distributes them in reporting.Often, the amount of tax included in the article other costs, which means that in the calculation and payment of income tax significantly reduced the remaining income.Thus, the recovery cost increases the amount of the VAT.Moreover, the relevant postings to be made in a timely manner, ie in the period in which there was a transfer of assets or other fixed assets.

special way made recovery of VAT in the transition to the USN.In this case, the above procedure must be carried out before the actual transition to the simplified system, that is, in the last fiscal year.It is worth noting one more thing.If the "Simplified taxation" involves the introduction of UAT, the recovery procedure is not necessary.So before you irrevocably transfer to the budget of the assessed tax amount, should carefully examine the existing law.We remind that the payment is required to implement only when it is clearly spelled out in legislation.Otherwise, no member of the tax authority has no right to demand immediate payment of the business entity of value added tax.Ultimately, any trial on the subject over in favor of a legal entity.

Many companies and organizations enjoy preferential taxation and are also faced with the need for such a procedure, as the recovery of VAT.Transactions in such a situation would be quite different.A particularly tight account for the companies that use its account and preferential and conventional system, since they have to keep separate records.This often leads to additional questions and attacks on the part of the tax.It is still not legally approved by a clear algorithm of separate accounting of financial resources.Legal person enough to develop its own system and mark it in the constituent documents.