General Audit Department on the procedure for calculating VAT on advance payments in connection with rate changes in 2021

Advance in 2021 at a VAT rate of 18%, shipment in 2021

In 2018

An agreement for the provision of services has been concluded between the parties. The price includes VAT, so the total amount under the contract in 2021 will not change due to changes in the VAT rate (20%).

24.10.2018

The selling organization received a 100% advance payment under the service agreement in the amount of 118,000 rubles. (including VAT 18%), put up the SF for an advance.

15.01.2019

On account of the advance received, the Organization provided services worth RUB 118,000. (including VAT 20%), put up the SF for sale.

Accounting with the Seller

24.10.2018

• VAT was calculated on the advance received at the rate of 18/118 - in the amount of 18,000 rubles. (118,000: 118 x 18).

15.01.2019

• VAT on sales was calculated and presented to the buyer at a rate of 20% - in the amount of RUB 19,666.67. (118,000: 1.20 x 20%).
• accepted for deduction of VAT on advances in the amount of 18,000 rubles. – as calculated in 2021.

SF for advance – VAT 18/118%

SF for sales – VAT 20%

Accounting with the Buyer

24.10.2018

• accepted for deduction of VAT on advances issued at the rate of 18/118 - in the amount of 18,000 rubles. (118,000: 118 x 18).

15.01.2019

• Input VAT was accepted for deduction at a rate of 20% - in the amount of RUB 19,666.67. (118,000: 1.20 x 20%);
• VAT on advances in the amount of 18,000 rubles was restored in the sales book. – how they were accepted for deduction in 2021.

Actual news

08.11.2018

How to switch to new VAT rates from January 1, 2021

From 2021, the basic VAT rate is 20 percent (subparagraph “c”, paragraph 3, article 1 and part 3, article 5 of the Law of August 3, 2018 No. 303-FZ).
It corresponds to the new calculated rate of 20/120 percent. The rates of 0 and 10 percent were retained. In the recommendation you will find detailed instructions for sellers with examples of how to calculate VAT during the transition period. They are based on the explanations that the Federal Tax Service provided in letter No. SD-4-3/20667 dated October 23, 2018.

General rules for the VAT transition period

Check the terms of the contracts that will be valid next year. It is likely that an additional agreement will have to be drawn up to these contracts taking into account the new rate. Formally, an increase in the tax rate is not a basis for making changes to agreements that the parties entered into before 2021 and did not fulfill as of January 1, 2019. But the parties have the right to clarify the settlement procedure and the cost of the contract, taking into account the new VAT rate (clause 1.1 of the Federal Tax Service letter No. SD-4-3/20667 dated October 23, 2018).

Key advice for sellers: if possible, move at least part of January deliveries to December 2021. This will allow you to charge VAT on the proceeds at an 18% rate. For the same reason, it makes sense, if possible, to sign acceptance certificates for work performed or services provided in December 2021.

Apply the new 20 percent VAT rate only to goods, works, services or property rights whose shipment date falls on or after January 1, 2021. The date of conclusion of the contract does not affect the rate. This procedure follows from paragraph 4 of Article 5 of the Law of August 3, 2018 No. 303-FZ. Explanations about this are in the letters of the Ministry of Finance dated 09/07/2018 No. 03-07-11/64045, dated 08/06/2018 No. 03-07-05/55290 and dated 08/01/2018 No. 03-07-11/53970 and paragraph 1.1 of the letter of the Federal Tax Service dated October 23, 2018 No. SD-4-3/20667.

At what rates should the seller be charged VAT during the transition period?

Payment received in 2021, implementation - in 2021

In 2021, the organization received an advance against the supply of goods that it will ship to the buyer in 2021. In this case, you will pay tax on the advance payment to the budget at a rate of 18/118 percent. In 2021, VAT will have to be charged at a rate of 20 percent - after the goods are shipped to the buyer. And you will deduct the tax that you paid earlier on the advance payment - in the amount that was previously accrued.

Depending on the terms of the agreement, VAT must be calculated differently when changing rates. See the diagram for possible options.

Let's consider the procedure in all possible situations.

Situation 1. The contract indicates the cost with allocated VAT

Typically, the agreement allocates a specific amount of VAT or indicates a tax rate of 18 percent. In this case, agree with the buyer how you will determine the cost of goods (work, services) to calculate VAT at a rate of 20 percent.

For example, the contract indicates a cost of 118,000 rubles. (including VAT – 18,000 rubles). There are two ways. You can increase the tax amount to 20,000 rubles without changing the price of goods without VAT (100,000 rubles). Then the buyer will have to pay an additional 2000 rubles. to the original contract amount. Another way is to change the price without VAT and the tax amount without changing the total cost of the goods. Then the new VAT amount will be 19,667 rubles. (RUB 118,000 × 20/120), and the price without VAT is RUB 98,333. (RUB 118,000: 120 × 100%). Accordingly, there will be no need to recalculate with the buyer.

In any case, it makes sense to sign an additional agreement to the contract with the counterparty. In it, indicate in what order you will indicate the cost and amount of tax in 2021 in connection with the transition to a new rate (clause 1.1 of the Federal Tax Service letter No. SD-4-3/20667 dated October 23, 2018).

An example of how to calculate VAT for payment in 2021 and shipment in 2019

In October 2021, Alpha LLC received a 100 percent advance from the buyer for the upcoming supply of goods subject to VAT at a rate of 20 percent. The total price of the contract is 118,000 rubles. (including the cost of goods - 100,000 rubles, VAT - 18,000 rubles). The accountant calculated VAT from the advance received, issued an invoice to the buyer for the advance and registered it in the sales book. I made the following entries in accounting:

Debit 51 Credit 62 subaccount “Calculations for advances received”

– 118,000 rub. – received money from the buyer;

Debit 76 subaccount “Calculations for VAT on advances received” Credit 68 subaccount “Calculations for VAT”

– 18,000 rub. (RUB 118,000 × 18/118) – VAT is charged on the advance received.

In January 2021, Alpha shipped the goods to the buyer. In 2019, the accountant must charge VAT at a rate of 20 percent on sales proceeds. Even if the price of goods without VAT remains the same, the tax amount increases by 2000 rubles. This difference can be covered either at the expense of the buyer or at the expense of the seller.

The buyer transfers the underpaid amount to the seller

. If the counterparties have made such a decision, fix it in an additional agreement to the contract. In this case, in the invoice for shipped goods, Alpha’s accountant will indicate:

Cost of goods (work, services), total without tax (column 5)	100,000 rub.
Tax rate (column 7)	20%
Tax amount (column	20,000 rub.
Cost of goods (work, services), total including tax (column 9)	120,000 rub.

After shipment, the accountant will make the following entries in Alpha’s accounting:

Debit 62 subaccount “Settlements for shipped goods” Credit 90 subaccount “Revenue”

– 120,000 rub. – revenue from the sale of goods is reflected;

Debit 90 subaccount “VAT” Credit 68 subaccount “VAT calculations”

– 20,000 rub. (RUB 100,000 × 20%) – VAT is charged for payment to the budget;

Debit 62 subaccount “Settlements for advances received” Credit 62 subaccount “Settlements for shipped goods”

– 118,000 rub. – the advance payment is counted towards payment under the contract;

Debit 51 Credit 62 subaccount “Settlements for shipped goods”

– 2000 rub. – the amount of debt has been received from the buyer;

Debit 68 subaccount “Calculations for VAT” Credit 76 subaccount “Calculations for VAT on advances received”

– 18,000 rub. – VAT accrued on the advance payment is accepted for deduction.

The seller charges VAT at his own expense.

If the final payment amount under the contract does not change, the seller charges an additional amount of VAT by reducing the cost of goods. In fact - at the expense of their profits. If you choose this option, it must also be enshrined in an additional agreement to the contract. In this case, you will have to recalculate the amount of VAT, based on the assumption that 118,000 rubles. – the price of a consignment of goods, which includes VAT at a rate of 20 percent. The tax amount will be equal to:

118,000 rub. × 20/120 = 19,667 rubles.

On the shipping invoice, the accountant will indicate:

Cost of goods (work, services), total without tax (column 5)	RUB 98,333 (118,000 – 19,667)
Tax rate (column 7)	20%
Tax amount (column	RUB 19,667
Cost of goods (work, services), total including tax (column 9)	118,000 rub.

The postings will be like this:

Debit 62 subaccount “Settlements for shipped goods” Credit 90 subaccount “Revenue”

– 118,000 rub. – revenue from the sale of goods is reflected;

Debit 90 subaccount “VAT” Credit 68 subaccount “VAT calculations”

– 19,667 rub. – VAT payable to the budget has been accrued;

Debit 62 subaccount “Settlements for advances received” Credit 62 subaccount “Settlements for shipped goods”

– 118,000 rub. – the advance payment is counted towards payment under the contract;

Debit 68 subaccount “Calculations for VAT” Credit 76 subaccount “Calculations for VAT on advances received”

– 18,000 rub. – VAT previously accrued on the advance payment has been accepted for deduction.

Situation 2. The contract indicates the cost excluding tax

In this case, the tax must be charged on top of the cost of goods, work or services. Let’s assume that the contract specifies the cost of goods – 100,000 rubles. without VAT. When selling goods in 2021, tax must be charged in the amount of 20,000 rubles. Since in 2021 an advance was received in the amount of 118,000 rubles. (including VAT - 18,000 rubles), you need to decide what to do with the amount of VAT underpaid by the buyer - 2,000 rubles.

Just as in the first option, this difference can be covered either at the expense of the buyer or at the expense of the seller.

The buyer can pay the difference without additional agreement to the contract. After all, recalculation is associated with changes in legislation. But if he refuses to pay additionally, then the difference arising from the VAT increase will have to be covered by the seller’s profit. In this case, you will have to change the terms of the contract and specify in the additional agreement the fixed cost of the goods, including VAT - 118,000 rubles. And it turns out that the parties reduced the “net” cost of the goods. In 2021 it will be 98,333 rubles. (RUB 118,000 × 100: 120). The amount of VAT in 2021 will be 19,667 rubles. (RUB 98,333 × 20%).

An example of how to calculate VAT if the price in the contract is specified without tax

In December 2021, Alpha LLC received from the buyer a 100 percent advance in the amount of 118,000 rubles. (including VAT - 18,000 rubles) towards the upcoming delivery of goods. Alpha issued an invoice to the buyer for this amount. In the same month, Alpha’s accountant calculated VAT on the advance payment to the budget.

According to the initial contract, the cost of goods is 100,000 rubles. excluding VAT. When shipping goods in 2021, Alpha must charge a tax in the amount of 20,000 rubles. The buyer refused to pay the difference arising due to the change in the tax rate. Therefore, in January the parties signed an additional agreement to the contract, according to which the cost of goods excluding VAT is 98,333 rubles.

The product was shipped to the buyer on January 20, 2021. An invoice was issued on January 22 for the amount of 118,000 rubles. (including VAT – 19,667 rubles). In January 2021, Alpha's accountant must charge VAT in the amount of RUB 19,667. (98,333 rubles × 20%) and deduct VAT on the advance received in 2021 in the amount of 18,000 rubles.

Situation 3. The contract does not directly say whether VAT is included in the price or not

It happens that the VAT amount is not allocated in the contract. And it is not clearly stated whether it is included in the price of the contract or not. In this case, follow paragraph 17 of the resolution of the Plenum of the Supreme Arbitration Court dated May 30, 2014 No. 33. Analyze the terms of the agreement and the circumstances of its conclusion, including business correspondence.

The tax is included in the contract price.

Let us assume that the total contract price payable to the supplier is indicated without VAT. But at the same time, from the terms of the contract or the circumstances preceding its conclusion, it follows that the tax is taken into account in the price of the contract. In this case, the supplier must himself allocate the amount of VAT using the calculation method (clause 17 of the resolution of the Plenum of the Supreme Arbitration Court of May 30, 2014 No. 33).

For example, the cost of goods under the contract is 118,000 rubles. VAT on advance = 18,000 rubles. (RUB 118,000 × 18/118). VAT on shipment = RUB 19,667. (RUB 118 × 20/120).

In this case, if the parties decide not to make recalculations, then with an increase in the VAT rate, the cost of goods will decrease. VAT will be increased at the expense of the supplier.

The contract price does not include VAT.

Another option is that the total contract price payable to the supplier is indicated without highlighting VAT. But at the same time, from the terms of the contract or the circumstances preceding its conclusion, it follows that the tax is not taken into account in the price. In this case, the supplier must charge VAT on top of the price and present the tax amount to the buyer (clause 17 of the resolution of the Plenum of the Supreme Arbitration Court of May 30, 2014 No. 33).

In 2021, partial advances were received for supplies of 2019

It happens that the buyer pays in the form of an advance only part of the full amount due under the contract. Let’s say that in 2021 the organization received a partial advance from the buyer, and in 2021 it shipped the goods and received the remaining amount due.

Overall, the tax consequences are similar to those of a 100 percent advance in 2021. In 2021, charge VAT at the rate of 18/118 on the amount of the advance received and present it to the buyer. After shipping the goods in 2021, the supplier accepts this tax as a deduction.

In this case, in 2021 the buyer has not yet paid the full amount under the contract. Therefore, if VAT is allocated (or not allocated, but is included in the price), it makes sense to conclude an additional agreement on the new cost and recalculate the underpaid amounts. If the price is set without VAT, it is not necessary to change the conditions. See the diagram for more details.

An example of how to calculate VAT for a partial advance in 2021, shipment and final payment in 2021

Under an agreement concluded in 2021, Alpha LLC ships a batch of goods worth RUB 118,000 to the buyer. (including VAT). The buyer makes an advance payment of 59,000 rubles in December 2021, and pays the remaining amount after shipment.

In December 2021, Alpha’s accountant charged VAT on the advance received in the amount of 9,000 rubles. (RUB 59,000 × 18/118) and issued an invoice to the buyer for this amount.

At the beginning of January 2021, the parties signed an additional agreement to the contract, according to which the cost of goods is 120,000 rubles. (including VAT). At the same time, new obligations of the buyer were agreed upon. After shipment, the buyer must transfer to Alfa not 59,000 rubles, but 61,000 rubles. (RUB 120,000 – RUB 59,000).

After shipment, Alpha issues an invoice to the buyer in the amount of RUB 120,000. (including VAT - 20,000 rubles), accrues 20,000 rubles. VAT is payable to the budget and deducts VAT accrued on the advance payment, 9,000 rubles.

Situation:

how to calculate VAT on the surcharge of 2 percent that the seller received from the buyer. In 2021, the buyer paid an advance payment including VAT at a rate of 18/118 for the 2021 shipment. In 2019, before shipment, the buyer paid the difference

After receiving the additional payment, prepare an adjustment invoice for the advance payment

and indicate new data there: VAT rate - 20/120, the amount of tax at this rate and the new cost including VAT.

Please note: in this case, the difference between the initial and final cost is an additional payment of tax. This is not an advance payment. Therefore, if you receive additional tax payment in 2021, do not charge VAT at the rate of 20/120 on the amount received.

Paragraph 3 of clause 3 of Article 168 of the Tax Code allows you to issue adjustment invoices when the cost of goods changes. During the transition period, the Federal Tax Service allowed the issuance of such invoices, including for advances (clause 1.1 of the Federal Tax Service letter No. SD-4-3/20667 dated October 23, 2018).

Let’s assume that the price of a product without VAT is 100,000 rubles. In December 2018, the buyer made an advance payment in the amount of 118,000 rubles, including VAT - 18,000 rubles. The seller issued him an invoice for the advance payment. The parties did not review the price of the goods without VAT. But taking into account VAT, the cost of delivery in 2021 increased to 120,000 rubles, including VAT of 20,000 rubles. In 2021, before the goods were shipped, the buyer transferred an additional payment in the amount of 2,000 rubles. (RUB 120,000 – RUB 118,000).

The seller drew up an adjustment invoice for the advance payment, in which he indicated new information: tax rate - 20/120, tax amount - 20,000 rubles. and delivery cost – 120,000 rubles. On this invoice there is an additional payment of 2000 rubles. - This is a tax that must be transferred to the budget.

The difference between the tax amounts indicated in the adjustment invoice should be reflected in the VAT return on line 070 in column 5. Take this difference into account when calculating the total quarterly tax amount. In this case, on line 070 in column 3 of the VAT return, indicate the number “0”.

All other transactions, that is, VAT on advance payment (excluding surcharges) and VAT on shipment, should be reflected as usual. Having received an advance in 2021 (excluding surcharges), charge VAT at the rate of 18/118. When shipping goods in 2021, deduct VAT from the advance payment, the amount of additional payment (according to the adjustment invoice) and charge VAT on shipment at a rate of 20 percent.

The buyer, in turn, in 2021 has the right to deduct VAT from the advance payment - on the basis of an adjustment invoice for the advance payment, which takes into account the additional payment. In 2021, the buyer must restore the VAT deduction on the advance payment and accept the VAT deduction on the shipment.

A special case is if the buyer is a VAT non-payer. For example, a simplified organization or a VAT payer that applies an exemption under Article 145 of the Tax Code. In such a situation, the seller reflects the amount of the additional payment in the sales book based on a separate adjustment document. It must contain total (consolidated) data on all additional payments of 2 percent VAT that the seller received for a month or quarter, regardless of the CCP readings. Explanations about this are in paragraph 1.1 of the letter of the Federal Tax Service dated October 23, 2018 No. SD-4-3/20667.

An example of how a seller can arrange an additional payment for an advance payment for 2021 due to an increase in the VAT rate from 18 to 20 percent. The additional payment was received in 2021 before the goods were shipped

The seller, Torgovaya LLC, and the buyer, Alpha LLC, entered into an agreement for the supply of still water in the amount of 10,000 bottles at a price (excluding VAT) of 10 rubles. The total cost of the batch (excluding VAT) is 100,000 rubles. (10,000 bottles × 10 rubles).

Hermes received an advance from the buyer on November 5, 2021 in the amount of 118,000 rubles, including VAT - 18,000 rubles. (RUB 118,000 × 18/118). Hermes issued the buyer an advance invoice dated November 5, 2018 No. 358 with these indicators. Shipping against the advance payment is planned for May 2021.

From January 1, 2021, the VAT rate was increased from 18 to 20 percent. The parties agreed that the price of the goods excluding VAT remains the same. In this regard, the total cost of the contract increased by 2000 rubles. and amounted to 120,000 rubles. (RUB 100,000 + RUB 100,000 × 20%).

On January 20, 2021, Hermes received an additional VAT payment from the buyer in the amount of 2,000 rubles. The Hermes accountant drew up an adjustment invoice dated January 20, 2019 No. 1 to the advance invoice dated November 5, 2018 No. 358. In it, he reflected an additional tax payment in the amount of 2,000 rubles.

Situation:

how to calculate VAT on the surcharge of 2 percent that the seller received from the buyer. In 2021, for the 2021 shipment, the buyer paid an advance, including VAT at a rate of 18/118, and then paid the difference

There are two options. The first is to draw up an invoice for the advance payment for the amount of the additional payment and charge VAT on it at the rate of 18/118. The second is to draw up an adjustment invoice for the advance payment

and indicate there the increased cost including VAT, the VAT rate - 18/118 and the new VAT amount.

In any case, consider such an additional payment as an advance payment towards the upcoming delivery. Apply VAT rate 18/118 to this surcharge. The fact is that you received an additional payment in 2021, when the new VAT rate of 20 percent had not yet come into effect. Therefore, you have no reason to consider the amount received from the buyer as an additional payment of tax.

Paragraph 3 of clause 3 of Article 168 of the Tax Code allows you to issue adjustment invoices when the cost of goods changes. During the transition period, the Federal Tax Service allowed the issuance of such invoices, including for advances (clause 1.1 of the Federal Tax Service letter No. SD-4-3/20667 dated October 23, 2018).

Let’s assume that the price of a product without VAT is 100,000 rubles. In December 2018, the buyer made an advance payment in the amount of 118,000 rubles, including VAT - 18,000 rubles. The seller issued him an invoice for the advance payment. The parties did not review the price of the goods without VAT. But taking into account VAT, the cost of delivery in 2021 increased to 120,000 rubles, including VAT of 20,000 rubles. In 2021, before the goods were shipped, the buyer transferred an additional payment in the amount of 2,000 rubles. (RUB 120,000 – RUB 118,000).

The seller drew up an adjustment invoice for the advance payment, in which he indicated new information: delivery cost - 120,000 rubles, tax rate - 18/118, tax amount - 18,305.08 rubles. (120,000 × 18/118). The amount of additional payment to the budget was 305.08 rubles. (RUB 18,305.08 – RUB 18,000).

The difference between the tax amounts indicated in the adjustment invoice should be reflected in the VAT return on line 070 in column 5. Take this difference into account when calculating the total quarterly tax amount. In this case, on line 070 in column 3 of the VAT return, indicate the number “0”.

All other transactions, that is, VAT on advance payment (excluding surcharges) and VAT on shipment, should be reflected as usual. Having received an advance in 2021 (excluding surcharges), charge VAT at the rate of 18/118. When shipping goods in 2021, deduct VAT from the advance payment - on two invoices for the advance payment or on an adjustment invoice. Charge VAT on the shipment at a rate of 20 percent.

The buyer, in turn, in 2021 has the right to deduct VAT on the advance payment - on the basis of two invoices for the advance payment or on the basis of one adjustment invoice for the advance payment from the seller, which takes into account the additional payment. In 2021, on the date of shipment of goods, the buyer must restore the VAT deduction from the advance payment and deduct VAT on the shipment. Explanations about this are in paragraph 1.1 of the letter of the Federal Tax Service dated October 23, 2018 No. SD-4-3/20667.

An example of how a seller can arrange an additional payment for an advance payment for 2021 due to an increase in the VAT rate from 18 to 20 percent. The additional payment was received in 2021 on account of the 2021 shipment

The seller, Torgovaya LLC, and the buyer, Alpha LLC, entered into an agreement for the supply of still water in the amount of 10,000 bottles at a price (excluding VAT) of 10 rubles.

The total cost of the batch (excluding VAT) is 100,000 rubles. (10,000 bottles × 10 rubles).

Hermes received an advance from the buyer on November 20, 2021 in the amount of 118,000 rubles, including VAT - 18,000 rubles. (RUB 118,000 × 18/118). Hermes issued the buyer an advance invoice dated November 20, 2018 No. 400 with these indicators. Shipping against the advance payment is planned for May 2021.

From January 1, 2021, the VAT rate was increased from 18 to 20 percent. The parties agreed that the price of the goods excluding VAT remains the same. In this regard, the total cost of the contract increased by 2000 rubles. and amounted to 120,000 rubles. (RUB 100,000 + RUB 100,000 × 20%).

On December 25, 2021, Hermes received an additional advance payment from the buyer - 2000 rubles. The Hermes accountant compiled an adjustment invoice dated December 25, 2018 No. 401 to the advance invoice dated November 20, 2018 No. 400. In it he reflected the total amount of the advance, taking into account the additional payment - 120,000 rubles, including VAT - 18 RUB 305.08 The amount of VAT to be paid additionally is RUB 305.08.

When shipping in 2021, the seller issues an invoice to the buyer in the amount of RUB 120,000. (including VAT - 20,000 rubles) and accepts for deduction the VAT previously accrued on the advance (18,305.08 rubles). The buyer accepts for deduction VAT on shipment (RUB 20,000) and restores VAT accepted for deduction on advance payment (RUB 18,305.08).

Situation:

How can a seller calculate VAT if in 2021 the buyer made an advance payment for 2021 supplies? The advance includes VAT at the rate of 20/120

Having received an advance in 2021, charge VAT at the rate of 18/118. When shipping goods in 2021, take this VAT as a deduction and charge VAT on the shipment at a rate of 20/120. Do not issue adjustment invoices and do not take into account additional payments separately.

The VAT rate of 20 percent is effective from January 1, 2021. Therefore, if in 2021 the seller receives an advance from the buyer, he has no reason to apply the VAT rate of 20/120. Despite the fact that the advance was received against a supply, which will be subject to VAT at a rate of 20 percent. In 2021, the new rate cannot be applied, even if the advance payment was received against the 2021 shipment.

Therefore, charge VAT as usual - taking into account the VAT rate that is in effect on the date of the transaction. Having received an advance from the buyer in 2021, charge VAT at the rate of 18/118. It doesn’t matter that the buyer actually transferred to you the increased cost of the goods, calculated taking into account VAT at a rate of 20 percent. When shipping goods in 2021, deduct VAT from the advance payment - according to the invoice for the advance payment. Charge VAT on the shipment at a rate of 20 percent.

In 2021, the buyer has the right to deduct VAT from the advance payment - according to the invoice for the advance payment with VAT at the rate of 18/118. In 2021, on the date of shipment of goods, the buyer must restore the deduction of VAT from the advance payment and deduct VAT on shipment at a rate of 20 percent. Explanations about this are in paragraph 1.1 of the letter of the Federal Tax Service dated October 23, 2018 No. SD-4-3/20667.

An example of how a seller can obtain an advance from a buyer due to an increase in the VAT rate. The advance was received in 2021 on account of the 2019 shipment. The advance amount is 100 percent of the cost of goods, including VAT at a rate of 20 percent.

The seller, Alpha LLC, and the buyer, Torgovaya LLC, entered into an agreement for the supply of still water in the amount of 10,000 bottles at a price (excluding VAT) of 10 rubles.

The total cost of the batch (excluding VAT) is 100,000 rubles. (10,000 bottles × 10 rubles).

Shipping against the advance payment is planned in January 2021. From January 1, 2021, the VAT rate will be increased from 18 to 20 percent. The parties agreed that the price of the goods excluding VAT remains the same. In this regard, the total cost of the contract increased by 2000 rubles. and amounted to 120,000 rubles. (RUB 100,000 + RUB 100,000 × 20%).

Alpha received an advance from the buyer on November 23, 2021 in the amount of 120,000 rubles, including VAT - 18,305.08 rubles. (RUB 120,000 × 18/118). Alpha issued the buyer an advance invoice dated November 23, 2018 No. 403 with these indicators. Alpha's accountant charged VAT in this amount, since in 2021 there is no basis for calculating VAT on an advance at a rate of 20/120.

On January 20, Alpha shipped goods worth RUB 120,000 to the buyer. (including VAT - 20,000 rubles). The accountant reflected in the purchase book a deduction of advance VAT in the amount of RUB 18,305.08. In the sales book, the accountant recorded the accrual of VAT on shipments in the amount of 20,000 rubles.

Shipment in 2021 – payment in 2021

VAT payable to the budget on shipment is charged at a rate of 18 percent. The new tax rate of 20 percent does not apply to goods, work, services or property rights, the date of shipment of which fell before January 1, 2021 (Clause 4, Article 5 of Law No. 303-FZ dated 03.08.2018, letters of the Ministry of Finance dated 06.08 .2018 No. 03-07-05/55290 and dated 01.08.2018 No. 03-07-11/53970).

An example of how to calculate VAT for shipment in 2021 and payment in 2019

In October 2021, Alpha LLC shipped goods to the buyer for a total amount of 118,000 rubles. (including VAT at the rate of 18% - 18,000 rubles). The buyer paid for the goods in January 2021. The following entries have been made in the seller's accounting:

In December 2021:

Debit 62 Credit 90 subaccount “Revenue”

– 118,000 rub. – goods are shipped to the buyer;

Debit 90 subaccount “VAT” Credit 68 subaccount “VAT calculations”

– 18,000 rub. – VAT payable to the budget has been accrued.

In January 2021:

Debit 51 Credit 62

– 118,000 rub. – payment received from the buyer.

In this situation, the change in the VAT rate does not affect the contract concluded in 2021. The amount stated by the seller on the invoice corresponds to the amount paid by the buyer.

Buying Tips

Buyers accept for deduction the VAT that the seller indicated in the invoice. The table below will also help you quickly navigate the rules of the transition period.

At what rates should the buyer deduct VAT during the transition period?

Situation:

How can a buyer deduct VAT if he received an invoice for the 2021 shipment along with the goods later - in 2019

Deduct VAT at a rate of 18 percent. At the time of shipment, this was the rate in effect. Therefore, you paid tax at this rate. We also received an invoice at a rate of 18 percent. It doesn’t matter that you received the goods at a time when another rate is already in effect. Explanations about this are in paragraph 1.1 of the letter of the Federal Tax Service dated October 23, 2018 No. SD-4-3/20667.

The new VAT rate of 20 percent applies only to goods, works, services or property rights, the date of shipment of which fell on the period from January 1, 2021. This procedure follows from paragraph 4 of Article 5 of the Law of August 3, 2018 No. 303-FZ. Explanations about this are in the letters of the Ministry of Finance dated 08/06/2018 No. 03-07-05/55290 and dated 08/01/2018 No. 03-07-11/53970. © Material from the BSS “Glavbukh System”.

How to reflect VAT when receiving an advance payment when switching to the simplified tax system from OSNO and vice versa

If an individual entrepreneur previously worked on the main tax system and received an advance from the buyer, and then switched to the simplified tax system, then the following procedure applies. Considering that this tax almost always does not need to be paid under the simplified tax system, there is no obligation to pay tax upon completion of the transaction. However, a previously taken into account advance payment is not allowed to be deducted.

If an entrepreneur switched from the simplified tax system to the general taxation system, having previously received an advance payment, then upon delivery of a consignment of goods and receipt of full payment, he pays VAT in full to OSNO.

Changes from 2021 and features of transitional provisions

If the parties have agreed to sell a consignment of goods subject to receipt of an advance payment from the buyer, the seller is obliged to charge value added tax upon receipt in accordance with the current rate at a given time.

That is, for an advance payment received in 2021, it was necessary to proceed from the current rate of 18%, and if the advance was paid in 2021, then a rate of 20% should now be applied.

Once the money has been paid, the tax payment should occur on the same day. In this case, the date of shipment will not matter. This is regulated by subparagraph 2 of paragraph 1 of Article 167 of the Tax Code of the Russian Federation.

After delivery of the goods, VAT must be calculated based on the rate in effect at the time of shipment of the goods. However, we must remember that part of the tax was accrued upon receipt of the advance payment. Now you need to file the remaining tax.

From the beginning of 2021, the value added tax rate has been changed. This was done on the basis of Federal Law No. 303 dated August 3, 2018. An important question is at what rate it is necessary to ship goods, an advance payment for which was paid in the previous year.

For the transition period, the following rule applies. If the delivery of a batch of goods occurs in 2021, then the corresponding value added tax rate will be equal to 20%, despite the fact that with advance payment it was 2% less.