NEW PROVISIONS OF THE TAX CODE OF THE RUSSIAN FEDERATION REGARDING VALUE ADDED TAX

 VAT recovery by legal successors

In the event of a company's reorganization, the VAT amounts previously accepted by it for deduction are subject to restoration by its successor (Federal Law No. 325-FZ of September 29, 2019). This applies to deductions related to goods, works, services, fixed assets, intangible assets, property rights, as well as payment, partial payment for upcoming deliveries of goods, the performance of work, provision of services, transfer of property rights.

The restoration of VAT accepted by the reorganized organization for deduction is carried out by Small Business Accountants in Walsall the legal successor in three cases (Information of the Federal Tax Service of Russia dated 02.21.2020):

§  the use by the legal successor of goods, works, services in operations that are not subject to VAT, including when applying special taxation regimes;

§  the acquisition by the assignee of goods, works, services against advances paid by the reorganized organization for upcoming deliveries;

§  with a decrease in the cost of goods, works, services purchased by the reorganized organization.

Operations not taxable (exempt from) VAT

Services for the management of solid municipal waste provided by regional operators are exempt from VAT (Federal Law No. 211-FZ of July 26, 2019). In order to apply the privilege, the authorities of the subject must approve the maximum uniform tariff (excluding tax). Starting from the year in which such a tariff is in effect (not earlier than 2020), taxpayers have the right to use the exemption for five consecutive calendar years. The entitlement will not be lost even in the event of further establishment of the maximum tariff including tax.

VAT exemption

Starting from 2020, unified agricultural tax payers have the right to take advantage of the exemption from VAT, but for this, the amount of income should be no more than 90 million rubles per year (in 2019 - 100 million rubles). Recall that the procedure for determining and recognizing income when applying the Unified Agricultural Tax is established by Art. 346.5 of the Tax Code of the Russian Federation. The profit from the sale is determined by the procedure established by Art. 248 and 249 of the Tax Code of the Russian Federation. When calculating the amount of income in order to exempt from VAT, income received from the sale of goods, performance of work, provision of services in accordance with the procedure provided for in Art. 249 of the Tax Code of the Russian Federation, as well as income specified in Art. 250 of the Tax Code of the Russian Federation, provided that they are indicated by the taxpayer on the basis of Art. 249 of the Tax Code of the Russian Federation (Letter of the Ministry of Finance of Russia dated 06.05.2019 No. 03-07-14 / 32716).

Zero rate

From 2020, transit traffic of empty containers and wagons is taxed at a zero rate (clause 1 of article 164 of the Tax Code of the Russian Federation). To confirm the right to apply it and receive tax deductions, it is necessary to present supporting documents, the list of which has been adjusted (Federal Law No. 322-FZ of September 29, 2019).

Importation of goods and payment of indirect taxes

From February 1, 2020, a new format for the application for the import of goods and the payment of indirect taxes has been in effect (Order of the Federal Tax Service of Russia dated 13.12.2019 No. ММВ-7-6 / 634 @).

Declaration

The VAT tax return has been changed (Order of the Federal Tax Service of Russia dated November 20, 2019 No. ММВ-7-3 / 579 @). This is due to the peculiarities of reflecting the implementation of transmission services:

§  civil aircraft registered or subject to registration in the State Register of Civil Aircraft of the Russian Federation under lease or leasing agreements (subparagraph 17, clause 1 of article 164 of the Tax Code of the Russian Federation);

§  civil aircraft registered or subject to registration in the State Register of Civil Aircraft of the Russian Federation, as well as works and services for the construction of such aircraft (subparagraph 15, clause 1 of article 164 of the Tax Code of the Russian Federation);

§  aircraft engines, spare parts and components for the construction, repair and modernization of civil aircraft in Russia (subitem 16, clause 1, article 164 of the RF Tax Code).