The procedure for cancellation of VAT is set by articles 171, 172 of the Tax code of the Russian Federation. Before you write off the VAT, it is necessary to calculate the amount accrued on the advance payment from the buyer and paid to the budget.
If the planned transaction for certain reasons, stated in the supply agreement, did not take place or the agreement was terminated, the supplier may deduct the paid tax and submit documents to the tax office to receive the corresponding deduction. This situation provided by item 5 of article 171 of the Tax code of Russia. In case of making advance payment in cash cancellation is not possible.
In accordance with paragraph 7 of article 171 and Chapter 25 of NK of the Russian organization may write off a certain amount of VAT, set by these regulations, the amount of documented costs made, for example, representation or travel expenses.
The order of write-off of value added tax in case of payment of the purchased goods, executed works or rendered services prescribed in clause 2, article 171, clause 1 of article 172 NK the Russian. This procedure must be carried out with the object of taxation, taken into account and have an invoice for the appropriate amount.
Cancellation of VAT charged on the cost of production and paid by Bank transfer, made in accordance with paragraph 5 of article 171 NK the Russian. The same paragraph provides for the cancellation of VAT in case of return the buyer of the goods for the payment of tax to the budget.
At the conclusion of the supplier of the contract of purchase and sale of property stipulated in the transfer of ownership after payment, receipt of goods is recognised in the accounting for shipping documents to the off-balance account 002 which is designed for safe storage. Paragraph 1 of article 172 NK the Russian Federation provides for the cancellation of VAT by the buyer against the seller of the property at the date of its adoption on the off-balance account.