As a result of mutual settlements with counterparties, the company accumulates certain debts, which constitute a significant share of assets and liabilities. It is important to control the amount of arrears in favor of the company in order to avoid a sharp decline in the client’s solvency and not to miss the claim period. Correct accounting of obligations and timely write-offs allow us to form a reliable picture of the financial and property status of the organization. In this connection, it is necessary to know everything about VAT transactions when writing off expired accounts receivable.
Statute of limitations
The general limitation period is three years (Article 196 of the Civil Code of the Russian Federation). However, according to the law, for certain types of requirements the period can be reduced or increased (Article 197 of the Civil Code of the Russian Federation). For example, a transaction can be declared invalid within a year (clause 2 of Article 181 of the Civil Code of the Russian Federation). One of the shareholders can challenge the sale of a share in the common property within three months if his pre-emptive right to purchase has been violated (clause 3 of Article 250 of the Civil Code of the Russian Federation). The duration of the limitation period is determined in the following order:
- for obligations for which the fulfillment period is determined - at the end of the obligation fulfillment period;
- for obligations for which the fulfillment period is not defined or is determined by the moment of demand - from the day the creditor submits a demand for fulfillment of the obligation. If the creditor has given the debtor some time to fulfill the demand - after the end of the last day of the obligation to fulfill the obligation.
This is stated in paragraph 2 of Article 200 of the Civil Code of the Russian Federation.
The limitation period may be interrupted. The basis for interrupting the limitation period is the actions of a person indicating the recognition of a debt. After a break, the limitation period begins anew; the time elapsed before the break is not counted in the new period. However, there is a limitation: the limitation period cannot exceed 10 years from the date of violation of the right, even if the period was interrupted. The exception is the cases established by the Law of March 6, 2006 No. 35-FZ on countering terrorism.
This procedure follows from the provisions of Article 203 and paragraph 2 of Article 196 of the Civil Code of the Russian Federation.
Answers to pressing questions
Question 1. The on-site tax audit began in 2017. Representatives of the Federal Tax Service assessed additional VAT for 2013. Do they have the right to collect the arrears in this case?
Answer: In your case, if the arrears are forcibly discovered for 2013, the tax service does not have the right to collect the arrears, since the statute of limitations has already expired. However, the Federal Tax Service will still accrue the arrears to you, and it will remain on your personal account. If you need a certificate of no tax arrears, you will not be able to obtain it. In this case, you have two options: either pay off the debt or prove in court that the determination of arrears is incompetent.
Question 2. What measures can tax officials take to collect debt?
Answer: The tax authority is obliged to send the taxpayer a demand for payment of tax debt. In accordance with paragraph 4 of Art. 31 of the Tax Code of the Russian Federation, Part I, in the case of sending a tax demand for payment of debt by registered mail, it is considered that this letter was received by the taxpayer on the sixth working day from the date of sending the tax demand. If tax officials do not receive a response from the taxpayer, then they have the right to make a demand for tax payment to the bank in which the taxpayer’s current account is opened, or to seize the taxpayer’s current account.
Question 3. What responsibility does the head of the enterprise bear for late payment of tax? (click to expand)
Answer: The manager may bear both administrative and criminal liability for non-payment of tax. If the action or inaction of a manager is in the nature of a tax crime, then the manager may be brought to criminal liability under Article 199 of the Criminal Code of the Russian Federation. If the activities of the manager do not constitute a tax crime, then the manager may be subject to administrative liability.
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Debt inventory
Accounts payable must be written off separately for each obligation. Determine the amount of overdue accounts payable based on the inventory results.
Carry out the inventory by order of the manager. You can use the standard form of this order (Form No. INV-22). Or you can develop a template yourself, approving it in the appendix to the accounting policy.
Written justification for writing off a specific obligation is an inventory act (you can use standard form No. INV-17 or a self-developed form) and an accounting certificate. Based on these documents, the manager issues an order to write off accounts payable.
This is stated in paragraph 78 of the Regulations on Accounting and Reporting.
Documenting
In the accounting of an organization, all obligations are taken into account in the context of analytics: separately by counterparties and contracts. Some enterprises additionally detail calculations based on shipping documents and payment orders.
According to accounting requirements, liabilities must be inventoried at least once during the reporting period. Such requirements allow timely identification of errors, lack of primary documents, violation of debt repayment terms, and the amount of assets and liabilities of the enterprise. At the initiative of the creditor, the debt can be checked with greater frequency, for example, based on the results of each quarter.
An additional method of monitoring debt arrears is to send reconciliation acts to counterparties. The document can be generated on any date and contains all transactions that affect the status of obligations. The form is handed over to the debtor by hand or sent by mail. The signing of the act by the counterparty is confirmation of the amount of arrears.
All transactions with accounts receivable must be reflected in accounting
The debt write-off procedure is documented with the following documents:
- Order from the manager on conducting an inventory and appointing the composition of the commission.
- Act of monitoring receivables and payables.
- Explanatory note from an accountant, financial analyst.
- An order of the executive body to repay hopeless arrears by charging them to expenses and profit.
- An accounting certificate confirming the execution of a business transaction.
The forms of the listed documents can be developed independently by the organization and approved by internal regulations. It is permissible to use additional forms containing information that is relevant in a given situation. For example, an accountant can further justify the need to close the debt in a memo addressed to the director.
Accounting
If the accounts payable are not repaid by the organization in a timely manner and are not claimed by the creditor, then in accounting they are subject to write-off after the expiration of the statute of limitations (clause 7 of PBU 9/99, clause 78 of the Regulations on Accounting and Reporting). An exception to this rule is tax debt (fees, penalties, fines). The expiration of the limitation period is not a basis for writing off such debt.
The amount of written off accounts payable for which the statute of limitations has expired should be included in other income in the amount in which this debt was reflected in accounting (clause 7, 10.4 of PBU 9/99).
In accounting, reflect the write-off of accounts payable by posting:
Debit 60 (62, 66, 67, 70, 71, 76-4) Credit 91-1 – the amount of accounts payable with an expired statute of limitations is written off.
Make such an entry in the period in which the statute of limitations for accounts payable expired (clause 16 of PBU 9/99).
Unclaimed liabilities
Accounts receivable (RA) is the total value of unfulfilled contractual obligations in favor of the organization. If the deadline for transferring funds has not yet arrived, then the arrears are considered current, normal, that is, on a given date the probability of repaying the debt is quite high. Receivables at the enterprise are accounted for in accounts 60, 62, 66, 67, 68, 69, 70, 71, 73, 76, 58.
When the terms of the agreement are violated, the collection procedure does not bring results, the receivable may be recognized as doubtful and impossible to repay.
Bad debts - a set of debt obligations for which the period of claim has expired or insurmountable obstacles have arisen in the return of assets
In most cases, such debts cannot be repaid and must be written off as enterprise expenses or at the expense of reserve funds, since there is no security deposit. This category may include any debit arrears: advances for upcoming deliveries, on account, overpaid wages, budget fees, loans, etc.
Clause 2 of Art. 266 of the Tax Code of the Russian Federation defines the criteria for classifying receivables as uncollectible:
- The period of demand (prescription) has expired.
- The obligation was terminated under civil law due to the impossibility of fulfillment.
- The corresponding act of the state body was issued.
- The defaulter ceased operations and went bankrupt.
- Based on the FSSP resolution to terminate proceedings in the absence of property, information about its location, and the address of the defaulter.
The company has the right, but not the obligation, to create reserve funds for unclaimed debts. The amount of the reserve increases non-operating expenses at the end of the reporting period, determined based on the results of the periodic inventory by proportionally deducting the debit balance. In the future, this fund is spent exclusively for its intended purpose, and if there are insufficient funds, the write-off is attributed to costs not related to production and sales. To recognize a debt as problematic, it is sufficient to meet at least one of the above conditions.
The balance is closed in the reporting period when this circumstance is identified.
In practice, the most common reasons for writing off receivables after the expiration of the statute of limitations is the exclusion of the counterparty from the state register.
Tax nuances
It is worth noting that regulatory authorities especially closely monitor transactions for repaying receivables because they are recognized as uncollectible. Let us list the circumstances when the inspectorate will require adjustments to the amount of costs and fiscal reporting for income tax:
- There are counter homogeneous demands between the participants in the relationship.
- The receivable does not have a direct connection with the sale of goods and services; it was received during the redemption of claims.
- The written off arrears do not belong to the group of expenses that reduce the taxable base (Article 270 of the Tax Code of the Russian Federation).
- The amount of interest income expected but not received.
- Excessively transferred amounts of budgetary and extra-budgetary fees that have not been claimed for refund are not presented for deduction for three years.
- If the debtor is recognized as a fictitious company engaged in criminal activities.
Sometimes writing off an overdue receivable can raise questions from the tax authorities.
BASIC
The amount of accounts payable written off due to the expiration of the limitation period, as well as for other reasons, should be included in non-operating income (clause 18 of Article 250 of the Tax Code of the Russian Federation). Other grounds, in particular, include the exclusion of the creditor from the Unified State Register of Legal Entities:
- in connection with its liquidation (Article 21 of the Law of August 8, 2001 No. 129-FZ, letters of the Ministry of Finance of Russia dated October 1, 2009 No. 03-03-06/1/636, Federal Tax Service of Russia dated June 2, 2011 No. ED-4-3/8754);
- at the initiative of the tax inspectorate, if the organization does not actually carry out activities (Article 21.1 of the Law of August 8, 2001 No. 129-FZ, letter of the Ministry of Finance of Russia dated March 25, 2013 No. 03-03-06/1/9152).
In these cases, the amount of accounts payable must be included in the tax period when the creditor was excluded from the Unified State Register of Legal Entities. This is confirmed by arbitration practice (see, for example, decisions of the FAS Moscow District dated April 3, 2014 No. A40-17207/13, West Siberian District dated July 27, 2011 No. A46-12818/2010, Far Eastern District dated February 9, 2010 No. F03-8171/2009).
At the same time, do not include accounts payable for taxes (fees, penalties, fines) written off or reduced in accordance with current legislation or by decision of the Government of the Russian Federation when calculating income tax (subclause 21, clause 1, article 251 of the Tax Code RF).
Situation: in what period, when calculating income tax using the accrual method, should written-off accounts payable be included in income? The debt is written off due to the expiration of the statute of limitations.
Include the amount of overdue accounts payable in non-operating income on the last day of the period in which the statute of limitations expired.
As a general rule, under the accrual method, income is recognized in the reporting (tax) period in which it arose (Clause 1, Article 271 of the Tax Code of the Russian Federation). In the situation under consideration, such a period is recognized as the period in which the statute of limitations on accounts payable has expired. On the last day of this period, the amount of overdue accounts payable, confirmed by documents, must be included in non-operating income (subclause 5, clause 4, article 271 of the Tax Code of the Russian Federation). Similar clarifications are contained in the letter of the Ministry of Finance of Russia dated January 28, 2013 No. 03-03-06/1/38.
Arbitration practice confirms this conclusion (see, for example, resolutions of the Presidium of the Supreme Arbitration Court of the Russian Federation dated February 22, 2011 No. 12572/10, dated June 8, 2010 No. 17462/09, determinations of the Supreme Arbitration Court of the Russian Federation dated July 1, 2010 No. VAS-8633 /10, dated January 22, 2010 No. VAS-18173/09, resolution of the Federal Antimonopoly Service of the West Siberian District dated April 28, 2012 No. A27-10579/2011, dated June 23, 2011 No. A81-5014/2010, dated 22 April 2010 No. A27-18504/2009, Far Eastern District dated March 23, 2012 No. F03-845/2012, Volga District dated September 22, 2009 No. A65-20719/2008). The listed court decisions were made on disputes, the subject of which was the need for written reasons for writing off debt. The courts recognized that the presence of unclaimed accounts payable must be confirmed by the results of the inventory, and the decision to write it off must be formalized by order (instruction) of the head of the organization. However, the absence of such documents is not a reason for not including unclaimed debt as income. The Presidium of the Supreme Arbitration Court of the Russian Federation, in Resolution No. 17462/09 of June 8, 2010, indicated that organizations are required to include unclaimed accounts payable in their income in the period in which the statute of limitations for them has expired. This follows from the totality of the provisions of paragraph 18 of Article 250 of the Tax Code of the Russian Federation, paragraph 27 of the Regulations on Accounting and Reporting. This must be done regardless of whether an inventory of the debt was carried out and whether administrative documents on its write-off were issued. Violation of the established inventory procedure does not relieve organizations from fulfilling this obligation. There are examples of court decisions on a similar situation (see, for example, the resolution of the Federal Antimonopoly Service of the Volga District dated December 24, 2013 No. A49-132/2013).
It should be noted that previously many courts (including the Presidium of the Supreme Arbitration Court of the Russian Federation) took a different point of view on this issue (see, for example, Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated July 15, 2008 No. 3596/08, determinations of the Supreme Arbitration Court of the Russian Federation dated June 28, 2010 No. VAS-7601/10, dated May 20, 2010 No. VAS-5700/10, dated November 25, 2009 No. VAS-15439/09, dated October 31, 2008 No. 14252/08, dated January 31, 2008 No. 16192/07, resolution of the Federal Antimonopoly Service of the Ural District dated February 17, 2010 No. F09-564/10-S3, Far Eastern District dated January 25, 2010 No. F03-8058/2009, dated December 14, 2009 No. F03-6832/2009, dated August 25, 2009, No. F03-3449/2009, dated June 8, 2009, No. F03-2324/2009, Central District, dated August 21, 2008, No. A09-6013/07-24, Volga District dated November 21, 2007 No. A57-10603/06, East Siberian District dated September 12, 2007 No. A33-12062/06-F02-5493/07, Moscow District dated September 9, 2009 No. KA-A41 /8500-09, North Caucasus District dated January 22, 2009 No. A53-8888/2008-C5-14, Northwestern District dated December 18, 2007 No. A05-13752/2006-11, West Siberian District dated March 9, 2006 No. F04-8885/2005(20013-A27-3)). When making decisions in favor of taxpayers, the courts proceeded from the fact that the fact that the statute of limitations had expired in itself is not enough to write off unclaimed accounts payable. Based on the norms of paragraph 78 of the Regulations on Accounting and Reporting, they came to the conclusion that without written grounds (an inventory report in form No. INV-17 and an order from the head of the organization), accounts payable cannot be written off. That is, the obligation to include this debt in income arises only in the period when such documents are drawn up.
However, with the release of the Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated June 8, 2010 No. 17462/09, one should expect that arbitration practice on the issue under consideration will become homogeneous.
Situation: should the amount of bad accounts payable be included in income when calculating income tax? The organization uses the cash method.
Include the amount of bad accounts payable as part of your income when calculating your income tax.
Letter No. 03-11-04/2/66 of the Ministry of Finance of Russia dated March 23, 2007 states that the amount of accounts payable written off due to the expiration of the statute of limitations must be included in non-operating income. This position is based on the fact that Article 250 of the Tax Code of the Russian Federation is mandatory for use by all organizations, regardless of the method by which they determine income and expenses. Consequently, written off accounts payable with an expired statute of limitations increases the tax base for income tax. An exception is accounts payable for taxes (fees, penalties, fines) written off or reduced in accordance with current legislation or by decision of the Government of the Russian Federation. Such debt is not included in income when calculating income tax (subclause 21, clause 1, article 251 of the Tax Code of the Russian Federation). Similar explanations are contained in the letter of the Ministry of Finance of Russia dated July 3, 2009 No. 03-11-06/2/118. Despite the fact that these letters are addressed to organizations using the simplified tax system, they are also applicable to organizations using the general taxation system.
Earlier, in letter dated August 26, 2002 No. 04-02-06/3/61, the Russian Ministry of Finance gave other explanations. It followed from the letter that income should include accounts payable only for those expenses that previously reduced the tax base. Under the cash method, unpaid expenses do not reduce taxable income. Income is recognized on the date of receipt of funds (receipt of other property) or on the date of repayment of debt in another way (clause 2 of Article 273 of the Tax Code of the Russian Federation). Based on this rule, the expiration date of the limitation period is not the moment of recognition of income. Therefore, writing off overdue accounts payable cannot be equated to receiving payment. Consequently, the organization has no reason to increase taxable profit by the amount of this debt.
It should be noted that with the release of later clarifications, organizations that adhere to the previous point of view of the Russian Ministry of Finance may have conflicts with inspectors.
An example of how the amount of written off accounts payable is reflected in accounting and tax purposes. The organization uses the cash method
In January 2013, Alpha LLC received materials worth 120,000 rubles from Torgovaya LLC. (including VAT – 18,305 rubles). According to the supply agreement, Alpha was required to pay for the supplied materials on January 20, 2013. The materials were not paid for on time. For three years, Hermes made no attempts to collect the amount of accounts payable from Alpha. The statute of limitations for Alpha's debt starts on January 21, 2013 and expires on January 20, 2016.
On January 23, 2021, Alpha's accountant conducted an inventory of accounts payable. Based on its results, accounts payable with an expired statute of limitations were identified in the amount of 120,000 rubles. Based on the results of the inventory, the head of Alpha decided to write off accounts payable with an expired statute of limitations.
The following entries were made in Alpha's accounting.
In January 2013:
Debit 10 Credit 60 – 101,695 rub. – materials are capitalized;
Debit 19 Credit 60 – 18,305 rub. – input VAT is reflected;
Debit 68 subaccount “Calculations for VAT” Credit 19 – 18,305 rub. – accepted for deduction of VAT on capitalized materials.
January 23, 2021:
Debit 60 Credit 91-1 – 120,000 rub. – the amount of accounts payable for unpaid materials is written off.
When calculating income tax, the accountant included the amount of written-off debt in income (RUB 120,000).
Situation: is it possible to take into account when calculating income tax using the accrual method, input VAT accepted for deduction on capitalized goods (work, services) not paid for by the organization? The organization writes off accounts payable due to the expiration of the statute of limitations.
Yes, you can. However, the inclusion of VAT, previously accepted for deduction, in non-operating expenses may be considered economically unjustified.
Based on the literal interpretation of subparagraph 14 of paragraph 1 of Article 265 of the Tax Code of the Russian Federation, when calculating income tax, an organization has the right to include in non-operating expenses input VAT, which relates to written-off accounts payable for capitalized goods (work, services).
However, in private explanations, representatives of the Russian Ministry of Finance express a different point of view. They believe that in the situation under consideration, the application of this rule will lead to the organization reducing its tax liabilities twice by the same amount:
- tax base for VAT, accepting input tax for deduction from the budget;
- tax base for income tax if input VAT is taken into account in expenses.
In such conditions, the inclusion of VAT, previously accepted for deduction, into non-operating expenses may be considered economically unjustified (clause 1 of Article 252, clause 49 of Article 270 of the Tax Code of the Russian Federation).
An example of how to reflect in accounting and taxation the write-off of accounts payable with an expired statute of limitations. The organization uses the accrual method
Alpha LLC pays income tax monthly. Accounting for income and expenses is carried out using the accrual method. On September 10, 2013, the organization received materials worth RUB 59,000. (including VAT – 9000 rubles). The payment period under the contract is seven banking days, not counting the day of delivery. For three years the materials were not paid for. Moreover, the supplier did not make any claims (in court), and Alpha did not take any measures to repay its debt.
Based on the results of the inventory carried out on September 24, 2021, the head of Alpha decided to write off accounts payable with an expired statute of limitations (accounting certificate, order of the manager).
The following entries were made in Alpha's accounting records.
September 10, 2013:
Debit 10 Credit 60 – 50,000 rub. – materials are capitalized;
Debit 19 Credit 60 – 9000 rub. – input VAT is reflected;
Debit 68 subaccount “Calculations for VAT” Credit 19 – 9000 rub. – accepted for deduction of input VAT.
September 24, 2021:
Debit 60 Credit 91-1 – 59,000 rub. – the amount of accounts payable with an expired statute of limitations is written off.
When calculating income tax for September 2021, Alpha’s accountant included 59,000 rubles in income. The accountant does not take into account the input VAT, previously accepted for deduction in the amount of 9,000 rubles, in expenses (clause 49 of article 270, clause 1 of article 252 of the Tax Code of the Russian Federation).
Accounts payable may arise if the organization has not shipped goods (work, services) to the buyer (customer) against the received advance payment. If, after the expiration of the statute of limitations or for other reasons, such debt is subject to inclusion in non-operating income, writing off VAT on it has some features.
In accounting, reflect the write-off of VAT by posting:
Debit 91-2 Credit 76 subaccount “Calculations for VAT from advances received” - the amount of VAT paid to the budget from an advance for which goods (work, services) were not shipped (performed, provided) is written off.
This procedure follows from paragraphs 11, 16 and 18 of PBU 10/99.
When writing off accounts payable for an unprocessed advance received on account of transactions that are subject to VAT at a rate of 0 percent (exempt from taxation), the obligation to accrue and pay VAT does not arise (letter of the Ministry of Finance of Russia dated July 20, 2010 No. 03-07-08 /208).
Situation: in what period, when calculating income tax, should written-off accounts payable be included in income? The organization uses the accrual method. The debt is written off due to the liquidation of the creditor.
Recognize the amounts of such accounts payable on the last day of the period corresponding to the date of making an entry in the Unified State Register of Legal Entities on the liquidation of the creditor.
The amount of accounts payable written off in connection with the liquidation of the organization must be included in non-operating income (clause 18 of Article 250 of the Tax Code of the Russian Federation). As a general rule, under the accrual method, income is recognized in the reporting (tax) period in which it arose (Clause 1, Article 271 of the Tax Code of the Russian Federation). In the situation under consideration, this period is the date of liquidation of the creditor. The organization is considered liquidated from the moment of its exclusion from the Unified State Register of Legal Entities (clause 3 of Article 49 of the Civil Code of the Russian Federation). From this moment all obligations of the organization cease (Article 419 of the Civil Code of the Russian Federation). Consequently, the amounts of such accounts payable must be recognized by the taxpayer on the last day of the period corresponding to the date of making an entry in the Unified State Register of Legal Entities on the liquidation of the creditor (subclause 5, clause 4, article 271 of the Tax Code of the Russian Federation).
If an organization includes the specified debt in income in later periods, then it will have to adjust the tax base for the corresponding reporting period and submit updated tax returns (clause 1 of Article 54 of the Tax Code of the Russian Federation).
Similar clarifications are contained in letters of the Ministry of Finance of Russia dated September 11, 2015 No. 03-03-06/2/52381 and the Federal Tax Service of Russia dated June 2, 2011 No. ED-4-3/8754.
If the organization does not recalculate the tax base and does not submit updated tax returns, tax inspectors may assess additional taxes, penalties and fines based on the results of the tax audit. Arbitration practice on this issue is developing in favor of tax inspectorates (see, for example, the ruling of the Supreme Arbitration Court of the Russian Federation dated June 7, 2011 No. VAS-6518/11, resolution of the Federal Antimonopoly Service of the West Siberian District dated January 27, 2011 No. A46-4108/2010 , Ural District dated January 25, 2010 No. Ф09-10607/09-С3).
Situation: how can a subscriber organization reflect in accounting and taxation the funds that were mistakenly credited to its personal account opened with a telecom operator? The money is transferred through the payment terminal.
Incorrectly received funds will have to be reflected in income only when the statute of limitations expires, usually three years. And provided that during this period, the one who mistakenly transferred the money will not demand it back. And he has the right to do so. Until this happens, take into account erroneous amounts as part of unexplained receipts. This is explained as follows.
Telecom operators open personal accounts for each subscriber to account for advances transferred by subscribers and payments for services rendered. To reconcile calculations, the subscriber can request a special report from the operator - account details. It must reflect all payments, including amounts received from unknown payers. Formally, the organization does not have the right to immediately use these amounts. After all, anyone who made a mistake in their personal account number has the right to demand it back from the telecom operator.
This conclusion follows from subparagraph “d” of paragraph 27, paragraphs 43 and 45 of the Rules, approved by Decree of the Government of the Russian Federation of May 25, 2005 No. 328.
So, until the statute of limitations has expired, take into account erroneously received amounts as part of unexplained receipts. To do this, you can open a corresponding subaccount for account 76 “Settlements with various debtors and creditors” - “Settlements for outstanding payments”. Make an entry in accounting:
Debit 60 Credit 76 subaccount “Settlements for outstanding payments” - erroneously received funds are reflected as accounts payable.
If the statute of limitations has expired and the payer has not demanded a refund, then reflect the unclaimed amounts in other income (clause 7, 10.4 of PBU 9/99, clause 78 of the Regulations on Accounting and Reporting). To do this, make the wiring:
Debit 76 “Settlements for outstanding payments” Credit 91-1 – the amount not claimed by the creditor is reflected as part of other income.
Apply the same rule when taxing. Include the unclaimed amount in non-operating income on the last day of the period in which the statute of limitations expired (clause 18 of Article 250, subclause 5 of clause 4 of Article 271 of the Tax Code of the Russian Federation).
Advice: if there are sufficient grounds, unexplained amounts can be reimbursed to the payer or taken into account in income without waiting for the expiration of the statute of limitations.
For example, this is possible in the case where, without the knowledge of the organization, money was transferred by an employee to whom the subscriber number is assigned. Request an explanatory note from him regarding this matter. By decision of the manager, the amount of expenses for communication services can be reimbursed to the employee upon his written application accompanied by supporting documents. But if he lost the payment receipt or refused a refund, include the unknown amounts in income without waiting for the expiration of the statute of limitations, based on the explanatory and detailed account. This approach will protect the organization from possible claims from tax inspectors regarding distortion of the base when calculating income tax. Do this if you have full confidence that the “unclarified” amount will not be claimed by the payer. Otherwise, it is better to wait until the statute of limitations expires.
simplified tax system
When calculating the single tax under simplification, the amount of written off accounts payable must be taken into account as part of non-operating income. This rule applies both to organizations that pay a single tax on income, and to organizations whose object of taxation is income reduced by the amount of expenses. It does not matter during the period of application of which taxation regime the accounts payable were formed. This follows from the provisions of paragraph 1 of Article 346.15, paragraph 18 of Article 250 of the Tax Code of the Russian Federation. Similar clarifications are contained in letters of the Ministry of Finance of Russia dated February 21, 2011 No. 03-11-06/2/29, dated March 23, 2007 No. 03-11-04/2/66.
An exception is accounts payable for taxes (fees, penalties, fines) written off or reduced in accordance with current legislation or by decision of the Government of the Russian Federation. Such debt is not included in income when calculating the single tax (subclause 1, clause 1.1, article 346.15, subclause 21, clause 1, article 251 of the Tax Code of the Russian Federation).
If the organization owes a debt to the supplier, then include in income:
- proceeds from the sale of goods (clause 1 of article 346.15, clause 1 of article 249 of the Tax Code of the Russian Federation). Those for which the organization has not paid the seller. At the same time, do not take into account the cost of such goods written off as overdue accounts payable (letter of the Ministry of Finance of Russia dated August 7, 2013 No. 03-11-06/2/31883). After all, expenses for the purchase of goods are recognized as they are sold and provided that they are paid (clause 2 of Article 346.17 of the Tax Code of the Russian Federation). But in this case this is not done;
- the amount of written off accounts payable in the amount of the cost of unpaid goods (clause 1 of Article 346.15, clause 18 of Article 250 of the Tax Code of the Russian Federation).
When writing off a debt to customers, the amount of the prepayment not closed by delivery is taken into account in income only once - at the time of receipt of such an advance. There is no need to re-record income as accounts payable written off, as this would result in double taxation of the same amounts. As of the date of writing off accounts payable, the simplified organization has no income in the sense of Article 41 of the Tax Code of the Russian Federation.
This follows from paragraph 1 of Article 346.17, paragraph 1 of Article 346.15, paragraph 18 of Article 250 of the Tax Code of the Russian Federation.
An example of reflection when simplifying the amount of written off accounts payable. The organization calculates a single tax on income reduced by the amount of expenses
Alpha LLC received goods from Torgovaya LLC in January 2013. According to the supply agreement, materials had to be paid before January 20, 2013 in the amount of 100,000 rubles. Alpha did not pay for the goods on time. The goods were sold on May 20, 2013, the proceeds amounted to 120,000 rubles.
For three years, Hermes made no attempts to collect the amount of accounts payable from Alpha. The statute of limitations for Alpha's debt starts on January 21, 2013 and expires on January 20, 2021.
On January 23, 2021, an Alpha accountant, based on inventory results, identified accounts payable with an expired statute of limitations in the amount of RUB 100,000. The head of Alpha decided to write off accounts payable with an expired statute of limitations.
When calculating the single tax, Alpha’s accountant included in income:
- in January 2013: 20,000 rubles. – revenue from sales of goods;
- in January 2021: RUB 100,000. – the amount of accounts payable written off.
The accountant did not reflect the cost of goods sold but not paid for as expenses.
Why can tax authorities charge a taxpayer when accounting for VAT?
What is a tax violation? Tax Code Part I, Article 106 introduces the concept of a tax offense. A tax offense is an unlawful act (in violation of the legislation on taxes and fees) committed (action or inaction) by a taxpayer, insurance premium payer, tax agent and other persons for which liability is established by this Code.
Translated into simple language, this means that an enterprise, individual entrepreneur or individual deliberately (guiltyly) violated tax laws (for example, underestimated the tax base) or did nothing (for example, did not file a tax return on time).
Now let's move directly to VAT - value added tax.
Responsible tax authorities can be brought to justice for:
Improper fulfillment of the taxpayer's obligations to pay taxParagraph 1, Article 45 of the Tax Code of the Russian Federation states that if the taxpayer has not fulfilled or has not properly fulfilled his obligations to pay tax (paid less tax, paid, but not on time, etc.), then the tax authority may make a demand for tax payment.
The emergence of taxpayer obligations as a result of a tax audit
Several examples can be given.
The organization LLC “Horns and Hooves” uses a general taxation system and has a low level of income, which does not exceed two million rubles for three consecutive months. Such an organization has the right to be exempt from VAT. And accordingly, it is not accrued or paid to the budget. During the work process over the next three months (for example, March, April and May), revenue from the sale of goods or services amounted to two million and one ruble. Those. in accordance with the Tax Code, such an organization loses the right to be exempt from VAT, and is obliged to additionally charge and pay VAT to the budget. If the organization does not do this on its own, then as a result of a tax audit this fact may be revealed. And then the tax inspectorate will remind the taxpayer of the obligation to pay tax.
The same organization’s total revenue for the last three months does not exceed two million rubles. But the organization received a license to trade excisable goods, such as alcoholic beverages. And she began to implement them. In this case, she also loses the right to be exempt from VAT. And if the tax was not accrued and paid, then the fact will certainly be revealed as a result of a tax audit. And then the tax authority will again remind you of your responsibilities with all the ensuing consequences.
Gross violation of the rules for recording income and expenses
A gross violation of the rules for accounting for income and expenses means the following:
lack of primary documents or invoices
systematic (two or more times during a calendar year) untimely or incorrect reflection in the accounting accounts of transactions related to VAT accounting
Failure to submit a VAT return
Here we mean either failure to submit a tax return at all (even a zero one), or failure to submit it on time, in accordance with tax legislation.
Failure of a tax agent to fulfill the obligation to withhold or remit VAT
In accordance with Article 24 of the Tax Code, a tax agent has the same responsibilities for calculating and paying taxes to the budget as a taxpayer.
Failure to provide the tax authority with information necessary for tax control
This means failure to provide the necessary information (information about the taxpayer, provision of documents with obviously false information), failure to provide documents for control, as well as refusal to provide documents at the request of the regulatory authority.
Unlawful failure to provide information to the tax authority
Examples of such situations:
A desk audit of the taxpayer is underway. The tax authority had doubts about the correctness of the information being reflected. The tax authority demanded additional information. In accordance with the Tax Code, this information must be submitted within five days. If the required information is not provided within the specified period, this is considered an unlawful failure to report.
There is an interesting nuance here. If a taxpayer is required to submit a VAT tax return in electronic form, and the tax authority has requested additional information on the tax return, then the taxpayer is obliged to provide this information also in electronic form in the required format established by the federal executive body authorized for control and supervision in the field of taxes and fees. If the requested information is provided in paper form, such information is considered not provided. And therefore, an unlawful failure to report.
Violations by the taxpayer of the rules and conditions from a taxation point of view in controlled transactions
The explanations for these violations are quite extensive and capacious and require writing a separate article. Therefore, I will not dwell on them. I will only say that a controlled transaction is considered a commercial transaction between interdependent persons (legal entities or individuals and legal entities or individuals (individual entrepreneurs) who are VAT payers.
OSNO and UTII
If an organization applies a general taxation system and pays UTII, it is obliged to keep separate records of income, expenses and business transactions (clause 7 of Article 346.26 of the Tax Code of the Russian Federation). When calculating income tax, include in non-operating income only those written-off accounts payable that arose as part of activities under the general taxation system. For more information about this, see How to take into account expenses if an organization combines the general taxation system and UTII.
If accounts payable arose for goods (works, services) that were used in both types of activities, then when writing them off, include the entire amount of non-operating income in the calculation of the tax base for income tax. This was stated in the letter of the Ministry of Finance of Russia dated March 15, 2005 No. 03-03-01-04/1/116. This position is based on the fact that the current tax legislation does not contain a mechanism for distributing non-operating income between different types of activities.
Debt elimination
Based on the results of monitoring, receivables recognized as bad are subject to repayment from the company’s reserve fund or are included in financial results.
Resources for covering debts are taken into account according to the account. 63, costs increase the debit balance of the account. 91, if there is no reserve or it was not sufficient to complete the write-off.
It is important to understand that at the moment of liquidation of the debit balance of the relevant accounting accounts, the obligation is not completely canceled. Over the next five years, debts will be recorded on an off-balance sheet account. 007. This requirement is based on the fact that during the specified period of time the financial or property situation of the defaulter may change, and it will be possible to restore the arrears in accounting and return assets.
In tax accounting, an increase in costs occurs when the grounds for closing debit obligations arise. Depending on the availability of a reserve fund, the reason for repaying the debt, the amount will be covered by the reserve or the amount of other expenses will increase. For example, a prepayment receivable, regardless of the availability of a covering fund, will be written off as non-operating expenses. And debts on sales operations will be closed from the reserve or against financial results.
Typical entries for writing off overdue, bad receivables in 2021. are given in the table.
In relation to written-off debts of individuals, the accounting department must act as a tax agent and accrue personal income tax, since the repayment amount is recognized as the actual income of the debtor.
