For which transactions do you need to confirm the VAT exemption?
Before moving on to explanations for filling out the register, let's decide for which transactions you need to submit a document confirming the VAT exemption, and for which you do not.
To do this, let's get acquainted with the concept of tax benefits. Tax benefits are tax breaks for certain groups of taxpayers, including the opportunity not to pay taxes at all or to pay them in a smaller amount (Clause 1 of Article 56 of the Tax Code of the Russian Federation). In other words, VAT benefits include transactions that are not taxed for some taxpayers, but are taxable for others. And it is necessary to create a register of documents based on them.
But operations for which VAT exemption is available to all categories of taxpayers are not eligible. And there is no need to compile a register of supporting documents for VAT benefits (clause 14 of the Resolution of the Plenum of the Supreme Arbitration Court dated May 30, 2014 No. 33).
Our material “Art. 149 of the Tax Code of the Russian Federation (2018): questions and answers.”
And to obtain complete and up-to-date information on VAT benefits, we suggest taking a look at our special section.
{\rtf1\fbidis\viewkind4\ansicpg1251{\info{\title Federal Tax Service of Russia dated January 26, 2017 N ED-4-15/ [email protected] “On sending clarifications” (together with the “Procedure for determining the volume of documents subject to request in the context transaction codes")} {\company ConsultantPlus Version 4016.00.30} {\creatim\yr2017\mo2\dy1\hr22\min15} } {\fonttbl \f0\fcharset204\froman\fprq2 Arial; \f1\fcharset204\fmodern\fprq1 Courier New; \f2\fcharset204\froman\fprq2 Arial; \f3\fcharset204\fmodern\fprq1 Courier New; \f4\fcharset204\fmodern\fprq1 Tahoma; \f5\fcharset204\froman\fprq2 Tahoma; \f6\fcharset204\froman\fprq2 Arial; \f7\fcharset204\froman\fprq2 Arial; \f7\fcharset204\froman\fprq2 Arial; \f500\fcharset204;} {\colortbl; \red0\green0\blue0; \red0\green0\blue255; \red0\green255\blue255; \red0\green255\blue0; \red255\green0\blue255; \red255\green0\blue0; \red255\green255\blue0; \red255\green255\blue255; \red0\green0\blue128; \red0\green128\blue128; \red0\green128\blue0; \red128\green0\blue128; \red128\green0\blue0; \red128\green128\blue0; \red128\green128\blue128; \red192\green192\blue192; \red51\green51\blue153; \red239\green222\blue199; \red0\green0\blue0; } {\stylesheet {\s0 \f0\fs20\b0\i0\nosupersub\ul0\strike0 ConsPlusNormal;} {\s1 \f1\fs20\b0\i0\nosupersub\ul0\strike0 ConsPlusNonformat;} {\s2 \f2\ fs16\b\i0\nosupersub\ul0\strike0 ConsPlusTitle;} {\s3 \f3\fs20\b0\i0\nosupersub\ul0\strike0 ConsPlusCell;} {\s4 \f4\fs18\b0\i0\nosupersub\ul0\ strike0 ConsPlusDocList;} {\s5 \f5\fs20\b0\i0\nosupersub\ul0\strike0 ConsPlusTitlePage;} {\s6 \f6\fs20\b0\i0\nosupersub\ul0\strike0 ConsPlusJurTerm;} {\s7 \f7\ fs20\b0\i0\nosupersub\ul0\strike0 ConsPlusTextList;} {\s8 \f7\fs20\b0\i0\nosupersub\ul0\strike0 ConsPlusTextList;} } \doctype0 \jcompress \readonlyrecommended \paperw11906 \paperh16838 \margl1133 \margr 566\ margt1440 \margb1440 \expshrtn \sectd\sbkpage\pgwsxn11906\pghsxn16838\marglsxn1133\margrsxn566\margtsxn1440\margbsxn1440 \linex0\guttersxn0\headery0\footery0 \pard\plain\outline level0\s2\f2\fs16\qc\fi0\li0\b\ i0\nosupersub\ul0\strike0 MINISTRY OF FINANCE OF THE RUSSIAN FEDERATION\par \pard\plain\s2\f2\fs16\qc\fi0\li0\b\i0\nosupersub\ul0\strike0 \par \pard\plain\s2\f2\ fs16\qc\fi0\li0\b\i0\nosupersub\ul0\strike0 FEDERAL TAX SERVICE\par \pard\plain\s2\f2\fs16\qc\fi0\li0\b\i0\nosupersub\ul0\strike0 \par \pard\plain\s2\f2\fs16\qc\fi0\li0\b\i0\nosupersub\ul0\strike0 LETTER\par \pard\plain\s2\f2\fs16\qc\fi0\li0\b\i0\ nosupersub\ul0\strike0 dated January 26, 2021 N ED-4-15/ [email protected] \par \pard\plain\s2\f2\fs16\qc\fi0\li0\b\i0\nosupersub\ul0\strike0 \par \pard\plain\s2\f2\fs16\qc\fi0\li0\b\i0\nosupersub\ul0\strike0 ABOUT THE DIRECTION OF CLARIFICATION\par \pard\plain\s0\f0\fs20\qj\fi0\li0\ b0\i0\nosupersub\ul0\strike0 \par \pard\plain\s0\f0\fs20\qj\fi540\li0\b0\i0\nosupersub\ul0\strike0 Federal Tax Service of Russia in order to increase the efficiency of VAT administration, while simultaneously reducing the volume documents requested from taxpayers, sends recommendations for conducting, using a risk-based approach, desk tax audits of VAT tax returns that reflect transactions that are not subject (exempt from taxation) to VAT in accordance with paragraphs 2 and 3 of Article 149 of the Code and fall under the concept of a tax benefit, taking into account paragraph 1 of Article 56 of the Code and the position of the Plenum of the Supreme Arbitration Court of the Russian Federation “On some issues arising in arbitration courts when considering cases related to the collection of value added tax”, set out in paragraph 14 of Resolution No. 33 of May 30, 2014 (hereinafter referred to as the tax benefit).\par \pard\plain\s0\f0\fs20\qj\fi540\li0\b0\i0\nosupersub\ul0\strike0 When conducting desk tax audits, it is advisable to take into account the combination of the following factors:\par \pard \plain\s0\f0\fs20\qj\fi540\li0\b0\i0\nosupersub\ul0\strike0 - the level of tax risk assigned by the Risk Management System of JSC NDS-2 (hereinafter referred to as the RMS),\par \pard\ plain\s0\f0\fs20\qj\fi540\li0\b0\i0\nosupersub\ul0\strike0 - the result of previous desk tax audits of VAT tax returns on the issue of the legality of taxpayers using tax benefits.\par \pard\plain\s0\ f0\fs20\qj\fi540\li0\b0\i0\nosupersub\ul0\strike0 In accordance with paragraph 6 of Article 88 of the Code, it is necessary to request from the taxpayer being audited an explanation of the transactions (for each transaction code) for which tax benefits were applied (hereinafter - Explanations). The taxpayer has the right to submit Explanations in the form of a register of supporting documents (hereinafter referred to as the Register), as well as a list and forms of standard agreements used by the taxpayer when carrying out transactions under the relevant codes. The recommended form of the Register is given in Appendix No. 1 to this letter.\par \pard\plain\s0\f0\fs20\qj\fi540\li0\b0\i0\nosupersub\ul0\strike0 Based on the information contained in the Register submitted by the taxpayer, The tax authority, in accordance with Article 93 of the Code, should request documents confirming the validity of the application of tax benefits. For the purposes of this letter, documents mean a set of documents confirming the validity of the application of tax benefits for individual transactions (hereinafter referred to as Documents).\par \pard\plain\s0\f0\fs20\qj\fi540\li0\b0\i0\nosupersub\ul0 \strike0 The volume of Documents subject to demand is determined for each transaction code in accordance with the algorithm set out in Appendix No. 2 to this letter. At the same time, at least 50% of the volume of Documents subject to demand must confirm the largest amounts of transactions for which tax benefits are applied.\par \pard\plain\s0\f0\fs20\qj\fi540\li0\b0\i0\nosupersub \ul0\strike0 If the taxpayer fails to submit the Register or if the Register is not submitted in the recommended form (if it is impossible to identify supporting documents, it is impossible to correlate them with the benefits used, it is impossible to comply with the requirements of this letter, the amount of the transaction is not indicated in the register), the Documents are requested without the use of risk. oriented approach.\par \pard\plain\s0\f0\fs20\qj\fi540\li0\b0\i0\nosupersub\ul0\strike0 If the tax authority has information indicating a possible unlawful application of benefits for certain transactions, the tax authority it is necessary to request documents confirming the legality of the application of benefits for these transactions.\par \pard\plain\s0\f0\fs20\qj\fi540\li0\b0\i0\nosupersub\ul0\strike0 The departments of the Federal Tax Service for the constituent entities of the Russian Federation should be informed of the above to the territorial tax authorities and ensure its execution. qr\fi0\li0\b0\i0\nosupersub\ul0\strike0 Valid\par \pard\plain\s0\f0\fs20\qr\fi0\li0\b0\i0\nosupersub\ul0\strike0 state councilor\par \pard \plain\s0\f0\fs20\qr\fi0\li0\b0\i0\nosupersub\ul0\strike0 Russian Federation\par \pard\plain\s0\f0\fs20\qr\fi0\li0\b0\i0\nosupersub \ul0\strike0 2nd class\par \pard\plain\s0\f0\fs20\qr\fi0\li0\b0\i0\nosupersub\ul0\strike0 D.V.EGOROV\par \pard\plain\s0\f0\ fs20\qj\fi0\li0\b0\i0\nosupersub\ul0\strike0 \par \pard\plain\s0\f0\fs20\qj\fi0\li0\b0\i0\nosupersub\ul0\strike0 \par \pard\ plain\s0\f0\fs20\qj\fi0\li0\b0\i0\nosupersub\ul0\strike0 \par \pard\plain\s0\f0\fs20\qj\fi0\li0\b0\i0\nosupersub\ul0\ strike0 \par \pard\plain\s0\f0\fs20\qj\fi0\li0\b0\i0\nosupersub\ul0\strike0 \par \pard\plain\outlinelevel0\s0\f0\fs20\qr\fi0\li0\ b0\i0\nosupersub\ul0\strike0 Appendix N 1\par \pard\plain\outlinelevel0\s0\f0\fs20\ql\fi0\li0\b0\i0\nosupersub\ul0\strike0 {\i\cf2 {\line } Federal Tax Service of Russia dated January 26, 2017 N ED-4-15/ [email protected] “On sending clarifications” (together with the “Procedure for determining the volume of documents to be requested by transaction codes”) \{ConsultantPlus\}}{\line} \par}
When and how to fill out the register of documents confirming the validity of VAT benefits
So, we have decided on the list of transactions for which the VAT benefit applies. Now let's see how to fill out the register of documents confirming the validity of VAT benefits. First, take the form recommended by the tax authority. You can download it at the end of our article “To justify VAT benefits, tax authorities will require a new register.”
Of course, you can create your own register form, but firstly, this is not necessary, and secondly, if the register is compiled in a different format, the Federal Tax Service will refuse you a selective approach to verification and will ask for a full list of documents.
As for the timing, the register of supporting documents for VAT benefits is submitted to the Federal Tax Service in response to the requirement to submit documents within 5 business days from the date of receipt by the taxpayer applying the benefits.
But there are no official explanations about the procedure for entering information into the register of documents. But Appendix No. 3 to the letter of the Federal Tax Service of Russia dated January 26, 2017 No. ED-4-15 / [email protected] shows a sample register.
We have studied it and now we will tell you about the procedure for filling it out.
Advice: before moving on to entering information about supporting documents into the register, first group them by transaction codes, then by type of transaction (activity), and then by counterparty. Arrange documents for transactions in descending order of amounts, i.e., first indicate documents for large sales amounts, and at the end - for small ones.
First, we transfer the information from columns 1 and 2 of section 7 of the VAT declaration to columns 1 and 3 (respectively) of the register of supporting documents for the VAT benefit. If different types of sub-operations were carried out under the same operation code, then the amount in column 3 must also be broken down by these sub-operations. Moreover, their names must be written in column 2 of the register.
In columns 4, 5, 6, opposite the corresponding group of operations and sub-operations, insert the name, INN and KPP of the counterparties. And opposite each counterparty, in columns 7, 8, 9 and 10, we indicate the type of document confirming the validity of the application of tax benefits, as well as the number, date and amount of this document.
The Tax Code of the Russian Federation does not contain a list or description of documents that can prove the legality of using tax benefits. Therefore, in the register of supporting documents for VAT benefits that we are considering, we register all the primary and other accompanying documents related to the specific operation. In particular, these are:
- an agreement for the provision of services (works), which contains a description of the preferential operation;
- an invoice indicating the name of the transaction and the amount marked “excluding VAT”;
- payment order, cash register receipt or other payment document indicating the preferential transaction and its cost with the note “excluding VAT”;
- a license to provide a preferential operation, if it is subject to compulsory licensing, etc.
Try to indicate the most complete list of documents in the register. The more details it provides, the fewer documents tax inspectors will ask for later.
After submitting a correctly completed register, inspectors will be able to request no more than 40% of documents, and these 40% should include no more than 500 documents.
The exception is the situation when the number of supporting documents is less than 30 pieces. In this case, the taxpayer will have to prepare a full package of documents, regardless of whether he submitted the register to the Federal Tax Service or not.
Letter dated January 26, 2017 No. ED-4-15/ [email protected]
The Federal Tax Service of Russia, in order to increase the efficiency of VAT administration, while simultaneously reducing the volume of documents required from taxpayers, sends recommendations on conducting desk tax audits of VAT returns using a risk-based approach, which reflect transactions that are not subject (exempt from taxation) to VAT taxation in accordance with paragraphs 2 and 3 of Article 149 of the Code and falling under the concept of a tax benefit, taking into account paragraph 1 of Article 56 of the Code and the position of the Plenum of the Supreme Arbitration Court of the Russian Federation “On some issues that arise in arbitration courts when considering cases related to the collection of value added tax”, set out in paragraph 14 of Resolution No. 33 of May 30, 2014 (hereinafter referred to as the tax benefit).
When conducting desk tax audits, it is advisable to take into account the combination of the following factors:
- the level of tax risk assigned by the Risk Management System of JSC NDS-2 (hereinafter referred to as the RMS),
- the result of previous desk tax audits of VAT tax returns on the issue of the legality of the use of tax benefits by taxpayers.
In accordance with paragraph 6 of Article 88 of the Code, it is necessary to request from the taxpayer being inspected an explanation of the transactions (for each transaction code) for which tax benefits were applied (hereinafter referred to as the Explanations). The taxpayer has the right to submit Explanations in the form of a register of supporting documents (hereinafter referred to as the Register), as well as a list and forms of standard agreements used by the taxpayer when carrying out transactions under the relevant codes. The recommended form of the Register is given in Appendix No. 1 to this letter.
Based on the information contained in the Register submitted by the taxpayer, the tax authority, in accordance with Article 93 of the Code, should request documents confirming the validity of the application of tax benefits. For the purposes of this letter, documents mean a set of documents confirming the validity of the application of tax benefits for individual transactions (hereinafter referred to as the Documents).
The volume of Documents to be requested is determined for each transaction code in accordance with the algorithm set out in Appendix No. 2 to this letter. At the same time, at least 50% of the volume of Documents subject to request must confirm the largest amounts of transactions for which tax benefits are applied.
If the taxpayer fails to submit the Register, or if the Register is not submitted in the recommended form (if it is impossible to identify supporting documents, it is impossible to correlate them with the benefits used, it is impossible to comply with the requirements of this letter, the transaction amount is not indicated in the register), the Documents are requested without using a risk-based approach.
If the tax authority has information indicating the possible unlawful application of benefits for certain transactions, the tax authority must request documents confirming the legality of the application of benefits for these transactions.
The departments of the Federal Tax Service for the constituent entities of the Russian Federation will communicate the above to the territorial tax authorities and ensure its implementation.
Acting State Advisor of the Russian Federation, 2nd class D.V. Egorov
