Carrying out R&D under a government contract, VAT taxation 2020

The concept of prototypes and actions with them

A prototype is understood as a product created on the basis of newly developed technical documentation in order to determine the feasibility of its production release. Scientific and educational enterprises are involved to develop technical documentation and produce a prototype. Features of prototypes as an object of transfer to the customer:

• Prototypes for analysis of compliance with their documentation are an object for experimentation and should not be intended for subsequent implementation.
• It is assumed that prototypes fail or are destroyed during testing.
• A research, scientific, educational institution does not have the right to use the product at its own discretion, as in the case of their ownership.
• Prototypes that receive a positive assessment are transferred to the customer, unless they are created within the framework of the development of one enterprise and technological process.

Exemption from VAT when transferring prototypes for research is based on the absence of a transfer of ownership rights that the performer does not have (

https://youtu.be/wjmVj_yeNOg

Carrying out R&D under a government contract, VAT taxation 2020

Situation: at what point - when reflecting on account 08 “Investments in non-current assets” or when reflecting on account 04 “Intangible assets” the sub-account “R&D work” - can input VAT be deducted on R&D expenses? Accept input VAT on R&D expenses when reflected in account 08 “Investments in non-current assets”. Chapter 21 of the Tax Code of the Russian Federation does not impose special requirements for the application of VAT deductions for R&D expenses. Representatives of the financial department adhere to this position in private explanations. Input VAT on costs associated with the creation of R&D can be deducted in the usual manner. That is, at the time they are reflected in accounting (for example, on account 08 - for works and services, on account 10 - for materials). Along with this, other conditions required for deduction must be met (availability of an invoice, purchase of property for transactions subject to VAT). All Trainings.ru, 2006—2018

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VAT of prototypes

Article 149 of the Tax Code of the Russian Federation provides for the possibility of exempting from VAT the transfer of samples to the customer, subject to certain conditions.

Otherwise, prototypes in circulation are not considered. Among the well-known misconceptions, the transfer of prototypes refers to types of products provided to another party for study with the purpose of concluding a supply agreement. Donating material assets, including product samples, is prohibited between legal entities. The transfer of products is permitted for advertising purposes, which results in an object of VAT taxation.

How do accounting and tax accounting relate?

Example. CJSC Khlebo entered into an agreement with the research organization Sfera to develop technology for preventive bread using alfalfa processing product. The cost of development is 480,000 rubles. (NDS is not appearing).

Option 1. As a result of R&D, an invention was obtained and patented. The total costs for patenting amounted to 18,900 rubles. The patent is valid for 10 years.

In tax accounting, as in accounting, the exclusive right to an invention, the useful life of which exceeds 12 months, is taken into account as part of intangible assets. The initial cost of intangible assets for two types of accounting will be the same - 498,000 rubles. {amp}lt;7{amp}gt;. The cost of intangible assets (inventions) is repaid by calculating depreciation over the useful life, determined based on the validity period of the patent (Clause 2 of Article 258 of the Tax Code of the Russian Federation) - 10 years. Thus, depreciation rates in accounting and tax accounting are the same.

Option 2. The invention is not patented. No exclusive rights arose.

R&D expenses meet all the requirements of PBU 17/02. The organization uses the straight-line method of writing off R&D expenses. The useful life of the invention is established by order of the director and is 5 years.

In accounting, an asset emerged in the form of a result of R&D. Monthly accounting expenses include the amount of 8,000 rubles. (RUB 480,000 / 5 years / 12 months).

In tax accounting, expenses incurred are written off within a year after the completion of R&D, subject to the use of their results. Thus, the amount of 40,000 rubles is included in tax expenses monthly. (RUB 480,000 / 12 months).

That is, in tax accounting, R&D expenses are written off faster than in accounting accounting. As a result, a taxable temporary difference and a corresponding deferred tax liability are formed (clause 18 of PBU 18/02).

We suggest you familiarize yourself with what violations are involved in retaking the theory

To avoid these discrepancies, it can be recommended that the organization set, for accounting purposes, the useful life of the invention equal to a year. This possibility is not excluded by clause 11 of PBU 17/02, which states that the useful life should not exceed 5 years. Less than 5 years - please.

Option 3. The organization does not plan to use the positive result of R&D (invention) for production needs due to economic infeasibility (or, for example, a change in activity profile).

In accounting, R&D expenses are recognized in full (RUB 480,000) as part of other expenses of the reporting period.

https://www.youtube.com/watch?v=ytabouten-GB

The situation in tax accounting is ambiguous. The R&D produced a positive result, but the taxpayer does not intend to use this result for any reason. The idea comes that these expenses cannot be taken into account for profit tax purposes at all. And some authors believe that this is so, referring to the economic unjustification of expenses established by paragraph 1 of Art. 252 of the Tax Code of the Russian Federation.

...the economic justification of expenses is determined not by the actual receipt of income in a specific tax (reporting) period, but by the target orientation towards generating income as a result of all economic activities of the taxpayer...

...The Tax Code (Article 262) ... does not provide for cases in which costs are not included in expenses. This rule is due to the fact that the taxpayer, by incurring such expenses, obviously intends to create new or improve the products being manufactured, and, accordingly, these expenses are initially aimed at making a profit...

... Art. 262 of the Tax Code does not contain the grounds and criteria on which R&D expenses incurred by the taxpayer should not be included in expenses that reduce profit, that is, these costs are in any case included in expenses.

The above arguments confirm that R&D expenses are always economically justified and should be taken into account for profit tax purposes.

The issue we are considering can be approached from a completely different angle. In principle, the legislation does not contain criteria for the positive use of R&D results. Therefore, an organization can install them on its own, say, such as:

• compliance with technical specifications;
• economic feasibility of using R&D results;
• the focus of R&D results on creating products that meet consumer demand.

In our opinion, these criteria can be formulated in such a way that a positive result of R&D will be the result exclusively used by the enterprise.

Agree, the subjectivity of this approach is fair: those developments, the results of which are theoretically applicable, nevertheless cannot be used by a specific taxpayer in specific economic conditions, which means that they did not give a positive result for him.

Taking into account the above, we believe that the taxpayer in this example has the right to take into account R&D expenses in production during the year. Thus, the amount of 40,000 rubles will be written off monthly as tax expenses, while in accounting, R&D expenses are written off at a time (480,000 rubles). As a result, the enterprise has deductible temporary differences in its accounting, and therefore a deferred tax asset (clause 17 of PBU 18/02).

V.V. Sporynin

Journal expert

Accounting

and taxation"

Conditions for exemption of R&D work from VAT

The legislation defines the requirements on the basis of which enterprises have the right not to charge VAT on research work:

• The work is carried out at the expense of the budget and Russian funds - research, technological development, support for scientific activities.
• Provided that the enterprise belongs to educational institutions or scientific activities when concluding contracts for economic purposes. Educational institutions must have a license to operate.

For educational and scientific institutions, the source of funding is not taken into account. The benefit, which does not depend on the source of financing, is applied both by the performers themselves and by third parties (co-executors) involved in the execution of the project. In this case, co-executors must also belong to the field of activity in the field of science or education.

R&D VAT

Question:

A small (micro) commercial enterprise at OSNO received a grant from the Federal State Budgetary Institution Fund for Assistance to the Development of Small Enterprises in the Scientific and Technical Sphere for R&D. Scientific activity is not the main activity of a small enterprise. According to the agreement with the Fund, within the framework of this grant, the small enterprise was obliged to spend part of its own funds on the purchase of materials and fixed assets for R&D purposes, which was done. Some materials and fixed assets were purchased with VAT of 18% (invoices from suppliers are available, issued in accordance with the requirements of the Tax Code of the Russian Federation). The grant was received in two tranches in 2015-2016; in December 2020, the Fund confirmed a positive result on R&D; the small enterprise used the grant and part of its funds for specific expenses determined by the Fund, while the results of the R&D performed remain with the executing organization. As part of the agreement with the Foundation, in December 2016 an application was submitted to register a patent for the results of work performed (NMA). There is no result on registration of intangible assets yet. As part of the same agreement with the Fund, the R&D product was sold to the buyer (medical company) with 18%. Questions: 1. Does a small enterprise have the right to deduct VAT on purchased materials and fixed assets in terms of purchases from its own funds and in terms of purchases under a grant, and if so, at what point (when a positive result was recognized or when the implementation or is it necessary to wait for the result of registration of intangible assets? 2. If a small enterprise does not have the right to deduct VAT, then can it be included in the initial cost of intangible assets on account 08 in terms of the grant and in terms of its own funds? 3. Can a small enterprise (micro ) apply PBU 17/02 if it applies OSNO? 4. From what point in time can a small enterprise (micro) apply PBU 17/02 if the result of R&D is positive, but under an agreement with the Fund an application was filed to register a patent for the results of work performed ( Intangible assets), but there is no result on the registration of intangible assets yet?

Answer:

You can receive a VAT deduction.

Ch. 21 of the Tax Code of the Russian Federation does not provide for any other features of VAT taxation of goods (works, services), which, when purchased, are paid for at the expense of a grant transferred to an international organization.

Tax legislation gives taxpayers the right to reduce VAT, which is calculated for payment to the budget, for tax deductions (clause 1 of Article 171 of the Tax Code of the Russian Federation, Letter of the Federal Tax Service of Russia for Moscow dated July 15, 2009 N 16-15/72646).

Chapter 21 of the Tax Code of the Russian Federation clearly defines the conditions for applying the VAT deduction presented when purchasing goods (work, services) (clauses 1, 2 of Article 171, clause 1 of Article 172 of the Tax Code of the Russian Federation):

— acquisition of goods (works, services) for carrying out operations recognized as objects of taxation under VAT;

— availability of invoices issued by sellers of goods (works, services);

— registration of the specified goods (works, services).

As we can see, the right to a tax deduction does not depend on the source of funds used to pay for goods (works, services) or through which VAT was transferred to the budget.

You can apply PBU 17/02

By Order of the Ministry of Finance of Russia dated May 16, 2016 N 64n (came into force on June 20, 2016), additions were made

PBU 17/02 “Accounting for expenses for research, development and technological work.” All amendments are addressed to enterprises that have the right to use simplified accounting methods.

In accordance with Part 4 of Art. 6 of the Law on Accounting <5> the following economic entities have the right to use simplified methods of accounting, including simplified accounting (financial) reporting:

— small businesses (micro);

— non-profit organizations;

- organizations that have received the status of participants in a project for the implementation of research, development and commercialization of their results in accordance with the Federal Law of September 28, 2010 N 244-FZ “On Innovation.

Since your organization is a small business, you have the right to apply PBU 17/02. The possibility of applying PBU does not depend on what taxation system your company uses (OSN, simplified tax system, UTII).

Moment of application of PBU

Order of the Ministry of Finance of Russia N 64n came into force on June 20, 2016, but it does not indicate the moment when its application began. Naturally, orders to change accounting policies must have a date no earlier than June 20. PBU 1/2008 “Accounting policies of the organization” allows you to change the accounting policies in connection with changes in the legislation of the Russian Federation (clause 10). According to clause 12, changes in accounting policies are made from the beginning of the reporting year, unless otherwise determined by the reason for such a change. Similar rules are contained in Art. 8 of Law No. 402-FZ. Thus, organizations have the right to apply simplified accounting methods starting with reporting for 2020. Avoiding retrospective recalculation of financial reporting indicators is also one of the ways to simplify accounting (clause 15.1 of PBU 1/2008).

When deciding whether to implement simplifications starting with reporting for the current year, you need to evaluate the labor intensity of adjustments to transactions made in the first six months. Thus, the accountant will need to highlight inventories that have not been written off as of the date of entry into force of changes in the accounting policy, write them off completely, or reverse their value by the amount of costs that, according to the new rules, are no longer included in the actual cost of inventories. The same is with fixed assets accepted for accounting from 01/01/2016: you will have to correct the entries in account 08 and the debit of account 01 for the amount of costs not attributable to the original cost of the fixed assets, and also adjust the already accrued depreciation.

And in accordance with paragraph 2 of PBU 17/02, the Regulations apply to research, development and technological work:

• for which results were obtained that are subject to legal protection, but were not formalized in the manner prescribed by law;
• for which results were obtained that are not subject to legal protection in accordance with the norms of current legislation.

Those. You can start using PBU now.

Applications

• Question ___When implementing the program Development of treatment strategy (41 kB)
• Correspondence of accounts How to reflect grant funds in accounting (86 kB)
• Article Simplified ways of keeping records of additions (Emelya (153 kB)
• Article So that small reporting does not become a big problem (7 kB)

Related questions:

1. Initial cost of intangible assets How to correctly determine the initial cost of each intangible asset if, during the R&D process, several RIAs capable of legal protection were obtained (i.e., upon completion of R&D, 2 patent applications were filed……
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187

Benefits for certain types of activities

In addition to the basic conditions for VAT exemption in paragraphs. 16.1 clause 3 art. 149 of the Tax Code of the Russian Federation provides for a benefit, the right to which arises on the basis of conducting certain types of activities. Preferred areas include the implementation of work that results in new or improved designs in the areas of:

• Engineering systems or their individual objects.
• New technological processes leading to the possibility of producing new products and products.
• Creation of new, non-certified models of equipment, materials that enable research to obtain data and subsequent registration of information in documentation.

When carrying out R&D and surveys in these areas, VAT exemption arises regardless of the source of financing for the work. Amounts of input VAT received from suppliers when purchasing materials and raw materials for creating samples cannot be deducted. When carrying out several types of activities, some of which are subject to VAT, separate accounting will be required.

The procedure for applying VAT benefits in relation to R&D

29.08.2007
“As follows from the case materials, the tax inspectorate in February 2003 conducted an on-site tax audit of the compliance of KIB Compass LLC with the correct reflection in accounting and tax reporting of turnovers not subject to value added tax, as well as the correctness of calculation and payment of value added tax cost for 2000 - 2002. The results of the inspection are reflected in the act dated 02/07/2003 N 5.

During the audit, the tax authority found that the Company unlawfully did not impose value added tax on operations for the implementation of research and development work performed by it as a co-executor in accordance with agreements concluded between the State Committee of the Russian Federation for Fisheries and the All-Russian Scientific Research Institute and the Design and Survey Institute of Economics, Informatization and Automated Fisheries Management Systems (hereinafter referred to as VNIERKH).

According to the tax inspectorate, KIB Kompas LLC does not have the right to exempt the above-mentioned operations from taxation, since it does not have state accreditation as a scientific organization. In addition, the company did not provide evidence that the work it performed was paid for from the federal budget.

Based on the audit materials, the tax authority made a decision dated March 17, 2003 No. 41 on an additional assessment of 383,495 rubles to the Company. value added tax, accrual of 156,419 rubles. penalties for its incomplete payment, as well as bringing LLC CIB Kompas to tax liability provided for in paragraph 1 of Article 122 of the Tax Code of the Russian Federation, in the form of 76,699 rubles. fine

The taxpayer did not agree with the decision of the tax inspectorate and challenged it in the arbitration court.

According to the applicant, the right to exemption from value added tax on operations for the implementation of research and development work paid for from budget funds is granted to the taxpayer regardless of whether he has a certificate of state accreditation as a scientific organization.

The tax inspectorate filed a counterclaim with the arbitration court to recover 76,699 rubles from KIB Kompas LLC. tax sanctions, considering holding the Company liable as legal and justified.

The court of first instance, having examined the case materials, agreed with the taxpayer’s arguments and invalidated the tax authority’s disputed decision. The tax inspectorate refused to satisfy the counter-application.

• The cassation court considers the decision of the court of first instance to be correct and not subject to cancellation.
• As stated in paragraph 3 of Article 21 of the Tax Code of the Russian Federation, taxpayers have the right to use tax benefits if there are grounds and in the manner established by the legislation on taxes and fees.
• According to Article 56 of the Tax Code of the Russian Federation, benefits on taxes and fees are recognized as benefits provided to certain categories of taxpayers provided for by the legislation on taxes and fees compared to other taxpayers, including the opportunity not to pay tax or to pay it in a smaller amount.

Subparagraph “m” of paragraph 1 of Article 5 of the Law “On Value Added Tax”, which was in force until 01.01.

2001, a benefit was established according to which research and development work carried out at the expense of the budget, as well as funds of the Russian Foundation for Basic Research, the Russian Fund for Technological Development and created for these purposes in accordance with the law, are exempt from value added tax extra-budgetary funds of ministries, departments, associations; research and development work carried out by educational and scientific institutions on the basis of business contracts.

A similar rule is contained in Chapter 21 of the Tax Code of the Russian Federation, which came into force on January 1, 2001.

From the literal interpretation of the above norms, it follows that if research and development work is carried out at the expense of budget funds, they are not subject to value added tax, regardless of whether the organization performing them is scientific or not.

The court of first instance established and confirmed by the case materials that LLC KIB Kompas, in accordance with the agreements concluded between the State Committee of the Russian Federation for Fisheries and VNIERH, carried out, as a co-executor, research work on the development of scientific, methodological and information support for the development of markets fishery products in the Northern and Western regions;

forming a forecast of resource support for the functioning of fishery complexes of the Northern and Western fishing basins in the long term until 2020, and so on. These agreements indicate that the work is financed from the budget. Moreover, the case file contains a letter from the State Committee of the Russian Federation for Fisheries (case sheet 106), which states that the financing of research and development work under agreements concluded by the Committee with VNIERKH was carried out using targeted budget funding.

Under such circumstances, the cassation court believes that KIB Kompas LLC justifiably did not impose value added tax on the controversial work, and the tax authority had no grounds for additional tax assessment.”

1. Thus, subclause 16 of clause 3 of Article 149 of the Tax Code of the Russian Federation contains two alternative VAT benefits, that is, R&D is exempt:
2. 1) carried out at the expense of budget funds, as well as funds of the Russian Foundation for Basic Research, the Russian Fund for Technological Development and extra-budgetary funds of ministries, departments, associations formed for these purposes in accordance with the legislation of the Russian Federation;
3. 2) carried out by educational and scientific institutions on the basis of business contracts;

For the first benefit, the main feature is the source of funding for the work and the status of the contractor is not at all important, that is, it can be any organization.

Since the main feature is the source of funds, co-executing organizations can also take advantage of the benefit.

In this case, the contract must indicate the source of funds, and a letter from the government agency that received budget funds and allocated these funds for R&D is also required.

https://youtu.be/Svl5_pTioBk

The requirement of the tax authorities that in order to obtain the right to use the first benefit the taxpayer must have the status of an educational and scientific institution is illegal.

For the second benefit, the main feature is the contractor’s status as an educational and scientific institution and the source of financing for the work is not important.

The Federal Tax Service reviewed the letter* of the Federal Antimonopoly Service dated October 10, 2016 N MO/69488/16 regarding the application of value added tax (hereinafter referred to as VAT) by organizations performing work as part of experimental design work to develop the design of an engineering facility or technical system, and reports the following.

________________

* See the application at the link. — Note from the database manufacturer. In accordance with subclause 16.

1, paragraph 3, Article 149 of the Tax Code of the Russian Federation (hereinafter referred to as the Code), exempts from VAT taxation on the territory of the Russian Federation the performance by organizations of research and development work (hereinafter referred to as R&D) and technological work related to the creation of new products and technologies or improvement of manufactured products and technologies, if research, development and technological work includes the types of activities specified in this subclause, including the development of the design of an engineering object or technical system.

Exemption from VAT taxation of the above R&D and technological work is applied by organizations (performers) regardless of the source of financing of these works, provided that such work includes the types of activities named in subclause 16.1 of clause 3 of Article 149 of the Code.

When performing other work, this exemption does not apply. At the same time, the Federal Tax Service of Russia notes that, in accordance with subparagraph 16 of paragraph 3 of Article 149 of the Code, R&D carried out at the expense of budget funds, as well as funds of the Russian Foundation for Basic Research, the Russian technological development fund and extra-budgetary funds of ministries, departments, and associations formed for these purposes in accordance with the legislation of the Russian Federation (hereinafter referred to as the funds).

We invite you to familiarize yourself with the Income Certificate in VTB Bank 24 form: sample

In this regard, if payment for R&D is made from budgets or the above funds, then VAT exemption is applied both by the performers and co-executors of these works. Taking into account the above, in the case of financing R&D for the development of the design of an engineering object or technical system at the expense of federal funds budget, performing organizations and co-performers of the specified works have the right to apply the exemption provided for in subparagraph 16 of paragraph 3 of Article 149 of the Code.

Accounting for work during the creation of prototypes

Accounting for R&D expenses is determined by PBU 17/02. When executing an order, enterprises take into account costs on account 08 with the opening of secondary registers: “8” to reflect expenses and “9” to form the cost of completed work on creating samples. When calculating the cost of creating prototypes, standard postings are used in accounting.

Upon completion of the work, an entry is made in the accounting: Dt 08/9 Kt 08/8 for the cost of expenses in the manufacture and testing of the prototype.

An example of the formation of the cost of a prototype

Research Institute "Pribor" entered into an agreement with NP "Progress" for the development of technical documentation with the production of prototypes within a month. When carrying out expenses, wages were accrued to the performers in the amount of 325,000 rubles, subject to contributions in the amount of 98,150, materials were spent in the amount of 25,700 rubles. General business expenses amounted to 180,000 rubles. Upon completion of the work, an act of transfer of technical documentation with a sample of the cost of costs was signed. The following entries are made in the accounting of research institutes:

1. Dt 08/8 Kt 70 in the amount of 325,000 rubles;
2. Dt 08/8 Kt 69 – 98,150 rubles;
3. Dt 08/8 Kt 10 – 25,700 rubles;
4. Dt 08/8 Kt 26 – 180,000 rubles;
5. Dt 08/9 Kt 08/8 – 628,850 rubles.

If the result of experimental work is used in the technological process of the enterprise, the amount of costs is included in the cost price, in the debit of account 20.

OSNO and UTII

Account for R&D expenses according to the rules of the taxation system in whose activities the development results will be used.

If the results of ongoing R&D will be used in both types of activities of the organization, then the costs of such work must be distributed (clause 9 of Article 274, clause 7 of Article 346.26 of the Tax Code of the Russian Federation). This is due to the fact that when calculating income tax, expenses related to the organization’s activities on UTII cannot be taken into account. This situation may arise, for example, if work is being done to improve a product that will be sold both through wholesale and retail trade. The cost of R&D related to only one type of activity does not need to be distributed.

For more information on how to allocate expenses related to both tax regimes, see:

• How to take into account income tax expenses when combining OSNO with UTII;
• How to deduct input VAT when accounting for taxable and non-taxable transactions separately.

Common mistakes when assessing VAT on prototypes

Errors may occur in the documentation flow when creating prototypes and when assessing VAT. The most common ones include:

• Use of a contract for the creation of technical documentation and samples that does not comply with the requirements of Art. 769 of the Civil Code of the Russian Federation and the absence of a work acceptance certificate.
• Incorrect classification of items or products transferred to a partner for the purpose of concluding a business agreement as prototypes. Transfer of objects is subject to VAT.

To qualify products as prototypes, careful documentation is required.

What applies to objects ↑

When taxing VAT, it is necessary to correctly determine the object of taxation - the sale of goods, works, services. Realization refers to the transfer of ownership rights.

The definition of what is subject to VAT taxation is established by Article 146 of the Tax Code of the Russian Federation.

Operations subject to tax:

• transfer of rights when selling goods, including property rights;
• provision of services and work;
• transport of goods on the territory of the Russian Federation;
• acquisition and transfer of goods for one’s own needs, the amounts of which are not included in expenses when taxing profits.

Taxation is carried out in a similar manner in relation to works and services, including construction and installation work.

List of goods

Goods, the transfer of which are subject to VAT, are understood as the subjects of the supply contract.

The tax base is the amount of market value specified in the contract or its integral part - an appendix to the document (specification).

When checking the compliance of prices with market levels, special attention is paid to the cost of sales when interdependent persons participate in transactions.

Starting from 2012, these transactions are subject to additional control. Interdependent persons include those structures or persons that can affect the cost of the product.

If one person has a contribution to the authorized capital of another, then the transaction between them can be considered as a contractual relationship of interdependent persons.

Services

The provision of services by one person to another is subject to VAT taxation. In this case, a mandatory condition is the place of provision of the service - the territory of the Russian Federation.

In this context, a striking example is transport services under a contract, provided both within the territory of the state and abroad.

When exporting/importing to Russia

When importing goods into the territory of the Russian Federation, the taxpayer has the right to apply a VAT deduction upon application.

This condition is not used with the participation of goods or products:

• exempt from taxation;
• the place of sale of which is not the territory of the country;
• in case the taxpayer maintains a regime in which VAT is not paid.

To receive a deduction, you must confirm the transaction with documents, make entries in the purchase book and submit a declaration.

In the case of export transactions, the taxpayer has the right to apply a “0” VAT rate.

Export data must be confirmed by documents that must be submitted to the Federal Tax Service within 180 days from the goods being cleared from customs control.

R&D

→ → Current as of: March 29, 2020

Research and development work (R&D) is the conduct of fundamental and applied research, experimental development, the purpose of which is the creation of new products and technologies.

To accept R&D for accounting purposes, certain conditions must be met ():

1. the use of R&D results can be demonstrated.
2. the amount of R&D expenses is determined and can be confirmed;
3. the use of R&D results for production or management needs will lead to income in the future;
4. it is possible to document the completion of the work (for example, there is an acceptance certificate for the work performed);

If at least one of the conditions is not met, then expenses associated with R&D are written off to account 91 “Other income and expenses”, subaccount “Other expenses”. Account 91 also debits those R&D expenses that did not produce a positive result. R&D expenses are collected from the debit of account 08 “Investments in non-current assets”, subaccount “R&D” from the credit of accounts:

1. 70 “Settlements with personnel for wages”, 69 “Settlements for social insurance and security”;
2. 02 “Depreciation of fixed assets”;
3. 60 “Settlements with suppliers and contractors”, etc.
4. 10 "Materials";

Completed R&D expenses are written off from account 08 to the debit of account 04 “Intangible assets”.

https://youtu.be/r1yn8eij484

From the 1st day of the month following the month in which it started

R&D: solving complex problems

The article from the magazine “MAIN BOOK” is relevant as of March 7, 2012. Questions were answered by A.V.

Zatsepin, lawyer The procedure for accounting for R&D expenses has changed significantly since 2012. True, it has raised many questions before. And not only for income tax, but also for VAT.

We recommend reading: Proposal of the procurement participant regarding the object

We offer you the most optimal options for tax accounting for such expenses.

E.R. Tikhomirov, Kemerovo Our organization (general taxation regime) carries out R&D for itself and, on their basis, creates new high-tech production of products, the sale of which is subject to VAT.

Is it possible to deduct input VAT on materials (work, services) used during R&D or should it be included in the cost of materials?

: Since R&D is carried out to carry out transactions subject to VAT in the future, the goods (work, services) for their implementation are considered acquired for the same purposes.

Therefore, you have the right to deduct input tax on them after you receive invoices from suppliers and accept goods (work, services) for accounting, , . You only need to include VAT in the cost of goods if you initially plan to use the results of R&D for VAT-free activities.

R&D accounting: in accounting, tax accounting, posting, with the contractor and the contractor

Author of the article Olga Lazareva 5 minutes to read 3,860 views Contents Many enterprises carry out research and development work, the main goal of which is the development and implementation of innovative modern technologies that reduce costs and produce higher-quality new products.

E. Zubareva, Krasnodar Our organization independently carried out R&D. What documents are needed to account for expenses for tax purposes under the simplified tax system? : R&D expenses include all costs associated with their implementation. Documents for their accounting depend on the type of expenses themselves.

R&D expenses, like any other expenses, must be reflected in the accounting accounts, no matter what form they take - tangible or intangible.

In this situation, it should be taken into account that accounting and tax accounting are different. In the article we will look at how accounting and tax accounting for R&D is carried out at an enterprise, what standard entries are required to reflect it. The essence of R&D is to carry out special activities related to the creation of completely new or improvement of existing products, optimization of technological processes or management methods.

It should be taken into account that the result of R&D must be something new and unique, for example, a product or technology - the introduction into the production and economic process of something already created earlier is not the resulting indicator of R&D. Research and development work can be carried out by both specialized design and research bureaus and directly commercial enterprises for their own purposes or as services to an outside organization. When interacting between two parties, an agreement is concluded,

How to reflect R&D expenses in tax accounting

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An organization has the right to take into account expenses not directly mentioned in paragraph 2 of Article 262 of the Tax Code of the Russian Federation as other R&D expenses. There is one condition: the costs must be directly related to the implementation of research or development.

For example, these could be:

1. consulting fees;
2. products of own production, used as components and semi-finished products when performing R&D;
3. accrued depreciation on fixed assets partially used for R&D.
4. works and services of a production nature performed on a self-employed basis;

Such clarifications follow from the letter of the Federal Tax Service of Russia dated May 31, 2013.

No. ED-4-3/9941. The amount of other expenses not exceeding 75 percent of the organization’s expenses for remuneration of employees involved in R&D, the organization performing R&D according to the list approved by Decree of the Government of the Russian Federation of December 24, 2008 No. 988, has the right to take into account in the amount of actual costs increased by an increasing factor 1.5 (p.

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7 tbsp. 262 of the Tax Code of the Russian Federation). The amount of other expenses exceeding the limit (incl.

including accrued depreciation, wages and material costs) can be written off only in the amount of actual costs (without taking into account the increasing factor).

5 p. 2 art. 262 of the Tax Code of the Russian Federation).

Tax accounting for R&D in 2020

I.V.

Artemova, chief accountant, consultant In 2020, changes came into force in the tax accounting procedure for expenses on research and development (R&D), including those that can be carried out using an accelerated depreciation rate. R&D is carried out in order to create new or improve manufactured products (goods, works, services), create new or improve existing technologies, methods of organizing production and management. If institutions make these expenses through income-generating activities, they have the right to take them into account when calculating income tax.

The specifics of accounting for R&D expenses for customer institutions and institutions carrying out these developments for themselves are established by Article 262 of the Tax Code of the Russian Federation. The Federal Law (hereinafter referred to as Law No. 166-FZ), which entered into force on January 1, 2020, introduced changes to the Tax Code of the Russian Federation in terms of accounting for R&D expenses.

According to Art. 262 of the Tax Code of the Russian Federation, R&D expenses include: 1) depreciation of fixed assets and intangible assets used for R&D; 2)material costs directly related to R&D; 3) remuneration of workers involved in R&D; 4) other expenses directly related to R&D, the amount of which is standardized; 5) cost of work under contracts for R&D – for the customer; 6) contributions for the formation of funds to support scientific, scientific, technical and innovative activities. Expenses

R&D: cost accounting

In tax accounting, R&D expenses are recognized regardless of whether they produce a positive result or not.

This procedure is established by subparagraph 4 of paragraph 2 and paragraph 5 of Article 262 of the Tax Code of the Russian Federation. If an organization acts as a customer under R&D contracts, then the cost of such work performed by the contractor must be reflected separately (sub-clause

To reflect the costs of research with a positive result, it is necessary to put the development into production. This follows from the Tax Code of the Russian Federation.

However, officials allowed this rule to be ignored. The main difference between research and development (R&D) and related activities is the presence of an element of novelty in the developments. In this case, we are talking specifically about the creation (development) of a new type of technology, product, service, etc.

d. Therefore, say, the introduction of new technologies into production does not apply to R&D.

When calculating income tax, expenses for scientific research are reflected as part of other expenses (sub.

4 clause 1 and sub. 4 paragraphs 2 art. 253 of the Tax Code of the Russian Federation). Moreover, regardless of whether the research gave a positive result or not (p.

2 tbsp. 262 of the Tax Code of the Russian Federation). Expenses are taken into account for one year, from the 1st day of the month following the month of completion of the research or its individual stage.

If an organization orders scientific research, then an acceptance certificate signed by the parties is also required. At the same time, in paragraph 2 of Article 262 of the Tax Code of the Russian Federation, for R&D that yielded positive results, there is an additional condition. Expenses can be taken into account if research results are used in production or in the sale of goods, performance of work, or provision of services.

It turns out, if we interpret literally

The procedure for accounting for R&D expenses (nuances)

> > > January 18, 2020 Accounting for R&D expenses is a very hot topic due to the increasing volume of research and development carried out to create and implement new products and technologies. How to account for costs associated with research and development?

How to take these expenses into account when calculating income tax?

We will analyze the nuances of accounting for R&D costs in our article.

In tax accounting (TA), there are specifics of what can be taken into account as a reduction in the base for calculating income tax. Expenses accompanying the development or improvement of the organization’s products, works or services can be accepted as R&D at NU.

In Art. 262 of the Tax Code of the Russian Federation establishes regulations for accounting for R&D costs.

These include:

Depreciation of fixed assets and intangible assets (excluding buildings and structures) involved in these developments, calculated for full months. Payment for the labor of employees who took part in R&D. The list of these expenses is limited by paragraphs. 1, 3, 16 and 21 art. 255 of the Tax Code of the Russian Federation and includes:

salary according to tariffs (salaries); additional payment to employees for night work, multi-shift work, combining positions, as well as for work on holidays and weekends, overtime service, hazardous working conditions; employer costs caused by the conclusion of contracts for compulsory or voluntary insurance of development participants, in the manner prescribed by clause 16 of Art. 255 Tax Code of the Russian Federation;

The most common questions ↑

The process of VAT taxation, despite the appearance of clarity and elaboration of the issue, has pitfalls. These are so-called topics that have a narrow focus or are rarely used by companies.

Construction and installation works

Construction and installation works performed for one’s own needs are subject to VAT. Based on the results of the work carried out to form the construction project, an estimate of all operations performed is created.

The construction and installation estimate includes:

• materials used to create the property;
• wages of own employees diverted to create construction and installation works;
• taxes accrued on wages.

The cost of the object is formed from the full amount and is subject to taxation at the time of completion of construction.

If an order or other documents establish that the object is being delivered in stages, then the VAT base is formed upon completion of the formation of documents for the construction stage.

The amount of VAT accrued on construction and installation works can be deducted in the accrual period.

The conditions for applying the deduction are:

• application of construction and installation works in activities subject to VAT. In case of partial use of the object, the deduction is made in proportion;
• expenses incurred during the construction of the facility fall under Chapter 25 of the Tax Code of the Russian Federation.

The taxpayer has the right to deduct the amount of materials purchased for the construction of a construction and installation project.

For free transfer

Transfer of ownership rights is also carried out in the case of gratuitous transfer of goods or property. The tax base is calculated based on the rules established by Art. 40 Tax Code of the Russian Federation.

The value of property or goods transferred free of charge is determined at market prices.

The exception is the transfer of funds in the form of a subsidy. It is possible to determine whether a subsidy is taxable based on the absence of an action to exercise or transfer rights.

Is there an agency fee?

Separately, it is necessary to consider intermediary operations as an object of VAT taxation.

When concluding an intermediary agreement, the object of taxation is only the commission received during the provision of services.

Remuneration can be presented in the form of:

1. Fixed amount.
2. Percentage for the volume of services provided in a specific period of time.
3. The total difference between the price of the goods declared by the commission agent and the realized value.

The procedure for determining remuneration is determined by contractual relations. In the Russian Federation, mandate agreements, commissions and agency agreements have been adopted.

Regarding medical services and equipment

Medical services provided by institutions are exempt from VAT. The services include diagnostic studies (Government Decree No. 132 of February 20, 2001).

The activities of medical institutions must be licensed. The requirement for a license also applies to branches if their employees carry out activities.

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Sales of medical equipment are exempt from VAT. The norm is established by Article 149 of the Tax Code of the Russian Federation. The composition of preferential medical equipment is approved by the list of the Government of the Russian Federation.

Are utility services recognized as a taxable object?

Utility service providers are organizations that have the right to do so. When providing services, they charge VAT for HOA companies and other intermediaries.

Invoices forwarded for payment by end consumers - the public - are not subject to VAT. Housing associations in this case are not providers of public services.

When implementing software (software)

The transfer of exclusive rights to software is not subject to VAT. In this case, a license agreement is concluded with clearly defined conditions for the user.

The acquirer of rights can use this product for his own needs or gets the opportunity to distribute it.

To obtain VAT benefits, the main documents are the contract. It is necessary to approach its preparation carefully and indicate all the essential terms of the contract.

If an illiterate contract is concluded, the document may be considered insignificant. The taxpayer will be charged the amount of the VAT penalty with the payment of penalties and fines.

Is the premises rental taxable?

Lease relationships are a special case of service provision. At the same time, the accrual of VAT on the amount of rental payments depends on the tax regime chosen by the enterprise.

In a lease agreement for municipal or state property, the tenant organization acts as a tax agent.

The enterprise has the obligation to calculate VAT and transfer it to the budget at the time of payment of rent under a sublease agreement.

What to do when paying state duty?

State fees apply to transactions involving the registration of legal rights or requests.

State duty and other government payments are not subject to VAT.

About the insurance premium

The result of the activities of an insurance organization is not subject to taxation and is not taxed in accordance with Article 149 of the Tax Code of the Russian Federation.

Pursuant to the rules of this article, the following are not subject to taxation:

1. Amounts received as insurance compensation under insurance contracts.
2. Interest and other additional amounts accrued under agreements.

Amounts of compensation for damage received from persons who caused harm to clients insured by the company are also not subject to taxation.

The order of amounts and the mechanism for receiving them must be specified in the insurance contract.

If consulting services are provided

Consulting services are no different from other contractual obligations provided to clients. Such services are subject to VAT.

When determining the VAT base, it is necessary to clearly understand the place of provision of services. If the place of sale is the territory of the Russian Federation, then these services are subject to tax.

When providing services to foreign representative offices and companies, amounts are not subject to taxation.

Is the loan taxable?

The provision of a loan under an agreement can be in monetary or non-monetary form. When using money circulation, the taxpayer does not charge VAT.

The transfer of funds for a time is not a sale. Exempt from payment:

• the amount of transferred borrowed funds.
• accrued interest for issuing a loan.

When transferring a loan in kind, for example, a commodity loan, the transaction does not have the benefit of tax exemption. The legislative norm is established by clause 15, clause 3, article 149 of the Tax Code of the Russian Federation.

For accounting purposes, amounts received under insurance contracts when compensating for losses are non-operating income, in respect of which double entries are made.