Can the SP operate VAT?

Many newly registered businesses raises the question: "Can the SP operate VAT?".There are many nuances of the application of this tax, including individual entrepreneurs.If you try to answer the question briefly, it should clearly say "Yes! Can".But in any case - it is worth considering in more detail.

SP on Ba

According to the legislation, SP is subject to VAT, as well as the organization, when they applied Ba.

Individual entrepreneurs are taxpayers in respect of its actions carried out with a view to profit, that is a result of commercial activity.As well as the enterprise, IP, VAT payer, must register with the tax authorities and at this point has the right to choose as the tax system simplified taxation system by filing an application.If such an application is not submitted by an individual entrepreneur time, it automatically becomes liable to pay tax remains at Ba.


avoid paying the employer can also, if the payer will UTII and UAT, but only to the extent that the employment which is the basis for the application UTII.If an individual entrepreneur of the Russian Federation has several activities, he will have to be reported separately, and each may be of some VAT payer.


However, even those individual entrepreneurs who pay UTII in a situation of delivery of products and product groups in the territory of the Russian Federation from abroad are required to pay tax on such goods.

USN for IP

If SP is on the UPDF, but the 3 calendar months of its profit exceeded 2 million rubles, he automatically loses the possibility to use simplified taxation system and becomes the payer of value added tax.

Thus, use exemption from having to pay an individual entrepreneur can, with little momentum.As soon as his revenue exceeds the statutory limit of two million, SP is automatically transferred to Ba and becomes a VAT payer.

These rules provide for a simplified tax system and IP organizations.Return the possibility of applying the exemption, he will only be able in the next calendar year, if you send a corresponding application to the inspection and make the paper, which can confirm the presence of its capacity to use the simplified taxation system.These documents are:

  • book sales;
  • copy of the book accounting of income and expenses;
  • copy of the magazine invoices.

If according to these documents, any revenue for the three-month reporting period, the total does not exceed two million rubles, the question of whether SP work with VAT, will be decided in the negative.SP regains the use of STS for the next 12 months and, therefore, ceases to be a VAT payer.The application and the required papers must be submitted to the inspection no later than October 20 of this year to enable the simplified taxation system for the next year.

excisable products

When trading excisable products SP pays the value added tax of the Russian Federation, regardless of whether the tax regime in what it is.In adherence to the tax legislation such products for IP are:

  • tobacco products;
  • cars and motorcycles with an engine capacity greater than 150 liters.from.;
  • gasoline, diz.fuel and engine oil;
  • jet fuel, natural gas.

Despite the fact that alcohol is also included in the list of excisable products, mention it when talking about the SP does not make sense, since 2014 SP forbidden sell alcohol, regardless of the order in the form of taxation which they are located.This provision establishes the law.

value-added tax, benefits

The legislation provides for a number of business options, which are not subject to VAT.Accordingly, if the SP conducts any such activities, to pay tax does not need to.VAT exemption are divided into mandatory, do not apply to impossible.In the case of such activities is the question of whether SP work with VAT, will be decided in the negative.But there are also so-called tax preferences, namely, voluntary benefits, which are used or not, can solve the taxpayer.

Mandatory exemptions to the mandatory non-application of VAT are the following options for business:

  • Filing for temporary use buildings to foreign states or their residents.
  • Trade, production of essential products for medical purposes, components, according to the list approved by the law.
  • Providing services for medical diagnosis, prevention, treatment and rehabilitation, this list does not include veterinary clinics and beauty clinics.
  • Provision of care in need of care, pregnant women, the disabled, the elderly and children.
  • Passenger urban, suburban and long-distance by road, rail, river and sea transport, except taxis and taxis.
  • provision of services and performance of works provided ritual agencies.

preferences in VAT

Voluntary benefits can use the IP or not to his liking.Do not always use the opportunity to non-application of VAT is suitable for entrepreneurs, some taxes in Russia give its advantages.

Most major counterparties taxed at Ba does not enter into contracts with enterprises and entrepreneurs exempt VAT.Because such cooperation would deprive them of the opportunity to realize their right to apply the deduction for purchased products.Sometimes, in order to attract profitable contractors employed consciously goes to waive the VAT exemption.In the business areas listed below, this situation may occur.The preferences of VAT apply in respect of:

  • production and trade of products for religious purposes.It is, for example, religious literature, religious objects.
  • provision of services and the production of goods produced and sold by an individual entrepreneur with disabilities, or in situations where the number of employees with disabilities, migrant entrepreneur in aggregate exceed 80 per cent.
  • manufacture and trade of goods of national art crafts, held in the special lists of local authorities.
  • insurance of various kinds.
  • Law offices.
  • trade in tickets to film screenings, concerts and mass entertainment events.
  • job developers, trade premises or shares in them.

VAT rates

If SP is a VAT payer, he will have to pay tax to the budget of one of the three approved rates.There are taxes in Russia, with more betting options, the VAT - one of them.In most cases, the VAT rate is 18%.It operates in all situations unless legally different.

rate 0%

0% used for export production for the country under the export regime, as well as on a number of activities:

  • transportation of oil and gas for the Russian border by pipelines;
  • suburban passenger transportation by rail or by air when one of the destinations located in the Republic of Crimea;
  • services customs cargo;
  • products imported into the territory of the Russian Federation representative offices of foreign countries, duly accredited in Russia, provided they are used for the benefit of diplomatic missions and diplomats' families for personal use.

rate of 10%

rate of 10% applies to an exhaustive list of goods, which include:

  • food staples;
  • products made for children;
  • all printed periodicals, other than those containing erotic or promotional aspect;
  • drugs and products for medical purposes, except for the vital, all exempt from the application of VAT;
  • breeding cattle.

All other products and services not included in the above group, the taxable VAT at 18%.

Pros and cons of applying VAT to

IP application of the VAT bears much more minuses than pluses.Among them worth mentioning are significant negative factors as:

- The difference in the methods of recognition of income and expenses for personal income tax and VAT.If the organization paying the income tax, may choose the method of recognition of income and expenses and thus pull together account for two taxes at the SP is no such possibility.The tax legislation clearly indicated that the income and expenses for the purpose of personal income tax should be used to pay for, and for VAT purposes - for the shipment.That is, in fact, will develop a situation where different registers of accounting at the IP data will be different at the end of the reporting quarter.This greatly confuses and complicates the work of the accounting department.

- Mandatory electronic reporting of VAT, introduced in 2014 for enterprises of all forms of ownership, and complicate the work of the accounting department and SP.If the tax declarations of the UPDF and other spices.regimes is still possible to pass on paper, the application of VAT will automatically entails additional costs in money and time.It will be necessary to conclude an agreement on the transmission of data on telecommunication channels with specials.operator to produce digital signature businessman, install additional software, ensure the availability of the Internet in the workplace accountant or entrepreneur, which is likely to require an agreement with your service provider, and additional costs.

- complexity and unwieldiness of the declaration of taxes and do not facilitate the work.VAT returns have to take on a quarterly basis, in the same time and pay the tax.In addition, a closer inspection following the reporting enterprises and individual entrepreneurs who pay VAT.This is due to the large number of violations in the sphere of VAT.

plus VAT

The advantages of the application of VAT by an individual entrepreneur can be attributed unless more willing to cooperate with major customers VAT payers due to the possibility to apply the deduction.This is especially true of public contracts, major contracts in strategic areas of the economy.

If SP plans to participate in such activities, the amount of contracts may cover all the above disadvantages.In addition, the fact that the application of VAT and allows the owner to take into account the input VAT as a tax deduction, interacting with the VAT payers, not only in the implementation of transactions, but also purchasing transactions.

VAT declaration

VAT returns for the IP exists in several versions.It:

  • VAT returns for the SP to Ba.
  • declaration for IP VAT on regimes.
  • VAT declaration on indirect taxes.

In the first situation fed a standard declaration of VAT.Since 2014 it must necessarily be submitted only in electronic form.In a situation of error detection after the date of the declaration should be sent inspectors utochnenku immediately when the errors are detected.Rent a declaration on a quarterly basis by the 20th day in the embodiment, the volume of revenue for the settlement of VAT in the last quarter was not more than one million.In other embodiments, the declaration sent to the tax authority on a monthly basis and up to 20 numbers.

VAT declaration while on regimes directed to tax in the embodiment of excisable products, or in a variant of conducting several activities.One of which is subject to special.mode, and the other (s) is not.This declaration is also supplied in electronic form before the 20th day.

declaration on indirect taxes applied when trading products in the area of ​​customs union.That is, the export of products to the territory of Belarus.Such a declaration is served in the inspection of products after importation together with the application of the import.In the embodiment, when the SP is working with organizations in Belarus, the question of whether to work with IP VAT is unequivocally positive.Served declaration before the 20th day after posting sales to accounting.This kind of declaration can not be corrected.In case of detection of errors and defects served another application of the import.