Read more about input VAT
Input VAT is the VAT that you paid to the vendor for payment of goods or services. At the conclusion of the contract, as a rule, immediately raises the question of the VAT works contractor or not. Firms that are themselves on the common system of taxation more profitable to work with the same suppliers, as input VAT can be deducted from the amount of tax laid to pay to the government. Input VAT, the supplier shall notify the purchaser in addition to the cost of goods and services. Organizations and individual entrepreneurs who work without a VAT tend to have a lower price for the same goods and services.
For tax purposes, input VAT can be used as follows:
1. To receive reimbursement. At the end of the reporting period (one quarter) taxed, exhibited to paying customers during the period (shipment), and it is deducted from the VAT already paid or accepted for accounting from suppliers. The difference is paid to the budget. If input VAT is greater than output VAT, it can be returned from the budget.
2. To take into account the cost of goods or services (regulated by paragraph 2, article 170 of the tax code).
3. To include in the costs that reduce the profit tax. (governed by section 5, article 170 of the tax code).
Documentary evidence of input VAT
The document, which confirms the input VAT is the invoice. This document should be addressed specifically to the buyer, for this "Buyer" must use the correct name and all details. The invoice is the first that requested during a tax audit, so the document needs to be perfect. There are various guidelines on how to issue an invoice. Empty fields or sections with errors, misspellings are not allowed. The document is not validated and the VAT amount will not be credited and this will lead to high fines and arrears. Fraud VAT possible criminal liability of officials.
When applying the simplified system of taxation paid to suppliers VAT can be written off to expenses upon presentation of supporting documents.
Reporting on VAT
The value added tax you need to report. The Declaration is dealt once per quarter – up to the 20th day of the month following the quarter. From 1 January 2014 this document send to the tax office only in electronic form. At the same time you must calculate and pay the advance payment of VAT.
Advice 2: What is the Declaration
Declaration – disambiguation, which is used in several areas. For example, in the economy, using the tax, customs and property Declaration law – the Declaration of independence, human rights etc.
Declaration (from the Latin declaration "statement") is the official (documentary) the announcement of a private or legal entity or state. Distinguish between economic and legal Declaration. Economic Declaration are a statement of income, property, goods, smuggled across the border, etc. for Example, customs, tax, property Declaration. The person filing the Declaration is called the declarant.
Legal Declaration – the official document, which contains the main principles of domestic or foreign policy of a state or organization or of the rights and freedoms of the individual. For example, the Declaration of independence, universal Declaration of human rights, etc.
Economic return is filed to the relevant authorities for the calculation of the fee or tax. Customs Declaration is a statement of goods transported across the border, which are subject to export duties. The application should be made in the form of a questionnaire and can be written in the language adopted in the customs point, the most common is English. After filing, the declarant is obliged to present these products at the request of customs officers to perform customs duties.
Tax Declaration – a statement of income received over a certain period, which is submitted to the tax office. On the basis of the Declaration according to the current tax rate is charged a tax that is required to pay the taxpayer. However, organizations are required to file a tax return even if no income, and private entrepreneurs (notaries, lawyers, Tutors, etc.) in the presence of income.
Property declarations the tax Declaration of the property subject to taxation. The statement also served in the tax office.
The legal Declaration was adopted by popular vote and signed by the parties. The global Declaration can be considered as the Universal Declaration of human rights, which was adopted by a vote of 48 countries. The Declaration of independence are taken in each independent state, and are a fundamental part of the Constitution. This documentary is a political statement was adopted by the main organ, for example, the U.S. Declaration of independence was adopted by vote among members of Congress.
Other well-known legal declarations:• Declaration on environment and development in Rio de Janeiro contains the main principles of environmental protection and environmental management measures;• Declaration of the UN on sexual orientation is a variation of the Declaration on the rights of the patient concerning his gender identity.