General Audit Department on the issue of re-billing utility bills under a sublease agreement

Compensation for utilities to the landlord - an individual

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The article from the magazine “MAIN BOOK” is current as of July 5, 2013.

magazine No. 14, 2013

We thank Margarita Vladimirovna Zhovtanovskaya, Naberezhnye Chelny, an employee of Elkom Ltd. LLC for the proposed topic of the article.

Simplified landlords who pay income tax at a rate of 6% face the following problem.

Amounts received from tenants of premises for the utilities they consumed (light, water, heat, garbage removal) are transferred in full to the supplying organization.

However, simplifiers have to include these amounts in income subject to a single tax. Let's see if this can be avoided.

Possible options are shown in the table.

Condition of the contract	Is there taxable income?
The tenant himself enters into contracts with supplying organizations and pays them for utilities without the participation of the landlord (option 1)	No
The landlord provides the tenant with intermediary services in purchasing and paying for utilities for a fee. This form of calculation can be reflected:	The agreement between the lessor and the supplying organization is concluded: later than the mediation agreement and in the interests of the tenant (option 2);	No
earlier than the mediation agreement (option 3)	Yes
The landlord pays for utilities and re-invoices the tenant (without extra charge) (option 4)	Yes
The tenant pays utility costs as part of the rent. 2 tbsp. 614 Civil Code of the Russian Federation (option 5). In this case, the contract usually states that the rent consists of two amounts: constant (payment in a fixed amount); variable (payment for utilities consumed in the corresponding period)	Dap. 1 tbsp. 346.15 Tax Code of the Russian Federation

Let's take a closer look at the pros and cons of these options.

Typically, tenants use utilities at the same rate as the owners of the premises.

This leads to the conclusion that landlords do not receive any economic benefit directly from the reimbursement of the cost of these services (in the part attributable to the tenant).

In this case, there should be no income taxed under the simplified tax system. 41 Tax Code of the Russian Federation. By the way, this is what some courts thought earlier, Resolution of the Federal Antimonopoly Service UO dated 04.08.2009 No. F09-4747/09-S2.

However, in this case, for tax purposes, it is important who, in accordance with the contract, is obliged to provide heating of the premises, electricity supply, etc.:

the lessor, and this most often happens, then he must also bear the costs of paying for such services (and calculate the rental cost based on this). By compensating the lessor for his expenses, the lessee relieves him of the costs under the contract. This is where the economic benefit arises - the amount of compensation must be included in income (option 4). This approach was supported by the Supreme Arbitration Court Resolution of the Presidium of the Supreme Arbitration Court of July 12, 2011 No. 9149/10, and now the courts will not make other decisions;
tenant, then there is no problem: the corresponding costs are not the landlord’s income. And the question of taxation is removed for him by itself: all calculations for utility bills relating to the rented premises occur without the participation of the lessor (option 1). These transactions are not reflected in his accounting, and he does not need to worry about paying taxes on them. By the way, if the contract does not say anything about who pays the utilities for the premises, then this should be done by the tenant. 2 tbsp. 616 of the Civil Code of the Russian Federation.

As we can see, independent contractual relations between the tenant and supplying organizations are most convenient in a tax sense for the owner of the premises. But this arrangement is not very welcomed by other participants in the chain, and in practice it is rarely used.

Tenants come and go, so it is easier for supply organizations to enter into one long-term contract with the owner of the premises than to constantly renew contracts with his clients.

And it’s more convenient for the latter to work only with the landlord, and not with a certain number of different services.

By drawing up an intermediary agreement with a tenant, simplified tenants, as a rule, hope to avoid having to pay tax on the amounts transferred by the tenant to reimburse his utility expenses.

After all, money that is transferred to the intermediary to fulfill his obligations or to reimburse expenses incurred under the contract is not considered income (except for the remuneration itself) sub. 9 clause 1 art. 251, sub. 1 clause 1.1 art. 346.15 Tax Code of the Russian Federation.

That is, the tenant, as it were, instructs the landlord to conclude contracts for electricity and water supply in favor of the tenant and make payments on them.

1. Establish in the lease agreement a rent consisting of a fixed and variable part, which corresponds to the provisions of Art. 614 Civil Code of the Russian Federation. The variable portion of the rent may include payments based on the costs incurred by the lessor in connection with the leased property.

In this form, the parties to the agreement agree on compensation by the tenant, for example, property tax, land, transport taxes, utility payments for the leased property. The terms of the lease may include compensation for services such as hot and cold water, heating, energy, telephone and Internet charges.

2. Provide for compensation in a separate agreement in excess of the fixed amount of rent established by the lease agreement.

Important to remember

Utility payments may be included in the fixed rent amount. In this case, the lessor makes preliminary calculations of the average monthly cost of utilities, by which monthly rental payments should be increased. The procedure for recording transactions in accounting is identical to the procedure for recording rent from the lessor.

The landlord determines the procedure for calculating utility bills payable by the tenant.

·based on the readings of separately installed meters;

· in proportion to the space occupied by the tenant;

· proportional to the power of devices installed in the rented areas.

The landlord transfers utility fees to service providers, and the tenant, in turn, reimburses the landlord for expenses after providing documents confirming the actual cost of utilities and their actual payment.

The procedure for reflecting business transactions for reimbursement of fees for utilities and communication services in the lessor's accounting records is given in the journal.

Operations involving the transfer of electricity, water, and gas by the lessor to the lessee do not relate to operations for the sale of services for VAT tax purposes, since the lessor himself does not provide (produce) services.

Based on paragraph 1 of Art. 539 of the Civil Code of the Russian Federation, the subscriber of the energy supplying organization is the lessor with whom the energy supply agreement has been concluded. A similar conclusion is contained in the Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated December 8, 1998 No. 5905/98, which states that a subscriber is a person whose balance sheet includes an object that consumes energy.

Important to remember

Since the rules of the energy supply agreement apply to relations related to the supply of gas, heat, water and other goods through the connected network, unless otherwise established by law, other legal acts or does not follow from the essence of the obligation (Article 548 of the Civil Code of the Russian Federation), then In these cases, the lessor is not the supplying organization.

Thus, the landlord actually carries out the functions of collecting utility payments from the tenant and transferring them to organizations providing utility services, i.e., he is an intermediary. This is not about reselling utilities to tenants, but about compensating the landlord for the costs of paying them.

Therefore, the landlord does not have to issue invoices to the tenant for the amount of utilities consumed by him. The tenant compensates the cost of consumed services, including VAT. When receiving invoices from utility service providers, the lessor can deduct only the amount of VAT that will be attributable to services consumed directly by the lessor for VAT-taxable activities. Similar explanations are given in the letter of the Ministry of Finance of Russia dated March 3, 2006 No. 03-04-15/52.

The procedure for taxing with income tax compensation amounts for utility payments received by the landlord from the tenant is ambiguous.

According to the Russian Ministry of Finance, such amounts should be included in non-operating income in accordance with the provisions of Art. 250 of the Tax Code of the Russian Federation (letters from the Ministry of Finance of Russia dated March 24, 2009

No. 03-03-05/47, dated December 27, 2007 No. 03-0306/4/158). The institution's expenses for paying for utilities, subject to the conditions provided for in Art. 252 of the Tax Code of the Russian Federation are also taken into account for profit tax purposes.

An analysis of arbitration practice allows us to conclude that the position of the Russian Ministry of Finance is not indisputable (see Resolution of the FAS of the East Siberian District dated March 21, 2007 No. A74-3165/06-F02-1481/07).

The Supreme Arbitration Court of the Russian Federation, in its Determination No. 18186/07 dated January 29, 2008, also indicated that the amount of compensation for utility bills received from the tenant is not the income of the landlord. In this case, the costs of maintaining and using the leased premises are compensated, and the costs of paying for utilities associated with the operation of the leased premises are not expenses of the owner - they do not lead to a decrease in his economic benefits, since they are compensated by the tenant.

According to the author, compensation for utility costs received from the tenant does not lead to an increase in the landlord’s income; accordingly, it is not taken into account when calculating income tax due to the absence of an object of taxation (Article 247 of the Tax Code of the Russian Federation). In this case, payments for utility services transferred by the institution from the personal account to supplying organizations are not taken into account for the purposes of calculating income tax, since they are actually expenses of the tenant.

https://youtu.be/3PVxbhJZiqg

Filling out the declaration

The tax return of a housing association under the simplified tax system must be filled out in accordance with the form approved by Order of the Tax Service No. 7-3-99. The text of the declaration must contain the following information:

Name of the HOA.
Taxable period.
Details of the partnership as a legal entity, incl. banking.
Name and code of the tax office where the information is provided.
Code of activity of the partnership according to the classifier.
The amount of advance payments received as of the date of filing the declaration.
The amount of tax payable, minus advance payments.

Attention! With a simplified calculation scheme, the tax is calculated independently by the accounting staff of the housing association, but the tax service has the right to initiate a verification of the calculation data by requesting the necessary payment documents from the board.

You can find out how to correctly fill out a declaration under the simplified tax system in our article.

What is an agreement for reimbursement of utilities by the tenant and a sample of its preparation

Nowadays, own premises are an unaffordable luxury for many organizations. So they resort to renting. In addition to rent, the tenant usually also pays for utilities. The article will discuss what a simplified tenant needs to do (naturally, with the object “income minus expenses”) so that accounting for utility bills in expenses does not result in tax problems.

A tenant can pay utility bills in different ways. It all depends on how his relationship with the landlord is structured.

The main options, approximate wording that can be used in contracts, as well as the types of tax expenses that will appear in each case, are given in the table. A separate column is devoted to documents (in addition to payment documents (Clause 2 of Article 346.17 of the Tax Code of the Russian Federation)) that can confirm the validity of accounting for utility bills in expenses (Clause 2 of Article 346.16, clause 1 of Article 252 of the Tax Code of the Russian Federation).

Utility payment option	Sample entries for payment of utility services in contracts	Type of expenses that include utility costs	Documentation
Utility payments are included in the rent
Utility payments - fixed part of the rent	From the lease agreement: “The rent is set at ____ rubles, including VAT ____ rubles, per month and includes the cost of utilities consumed by the Tenant.”	Lease payments (Subclause 4, clause 1, Article 346.16 of the Tax Code of the Russian Federation)	- lease contract; — lessor’s invoice for rent (if its issuance is provided for in the lease agreement)
Utilities are a variable part of the rent	From the lease agreement: “The rent is set in the form of a fixed payment in the amount of ____ rubles, including VAT ____ rubles, per month and a variable payment in the amount of the cost of utilities consumed by the Tenant for this period. The amount of the variable payment is determined on the basis of utility bills in proportion to the area occupied by the Tenant and is paid on the basis of an invoice issued by the Landlord with copies of utility bills attached" {amp}lt;*{amp}gt;	Lease payments (Subclause 4, clause 1, Article 346.16 of the Tax Code of the Russian Federation)	- lease contract; - landlord's invoice for rent; - copies of utility bills
Utility bills are paid separately from rent
Utility payments are paid to the landlord according to his account	From the lease agreement: “The rent is set at ____ rubles, including VAT ____ rubles, per month. The Tenant is obliged to compensate the Lessor for the cost of utilities consumed by the Tenant during this period. The corresponding amount is determined on the basis of utility bills in proportion to the area occupied by the Tenant and is paid on the basis of an invoice issued by the Landlord with copies of utility bills attached" {amp}lt;*{amp}gt;	Material expenses (Subclause 5, clause 1, Article 346.16, subclause 5, clause 1, Article 254 of the Tax Code of the Russian Federation)	- lease contract; — landlord’s account for utility bills; - copies of utility bills
Utility payments are paid to the landlord under an intermediary agreement	From the agency agreement with the landlord: “The Agent undertakes to: - enter into agreements with utility providers: ______________ in order to provide electricity, heating, water supply to the premises rented by the Principal under lease agreement No. _________ dated _________; — transfer to these organizations the funds accepted from the Principal as payment for the services provided by them; - no later than _______ days after the end of each month, send to the Principal a report on the fulfillment of the instructions provided for in this Agreement. The Principal is obliged to pay the Agent a remuneration for actions performed under this Agreement in the amount of _________ rubles. per month"	Material expenses (Subclause 5, clause 1, Article 346.16, subclause 5, clause 1, Article 254 of the Tax Code of the Russian Federation). Remuneration to the intermediary is taken into account in expenses as payments of commissions, agency fees and remunerations under agency agreements (Subclause 24, clause 1, Article 346.16 of the Tax Code of the Russian Federation)	- lease contract; — intermediary agreement with the landlord; — intermediary account for utility bills; — report of the intermediary (Articles 974, 999, 1008 of the Civil Code of the Russian Federation); - copies of utility bills
Utility bills are paid to utility providers	The tenant himself enters into an agreement with utility providers (Articles 539, 548 of the Civil Code of the Russian Federation)	Material expenses (Subclause 5, clause 1, Article 346.16, subclause 5, clause 1, Article 254 of the Tax Code of the Russian Federation)	- lease contract; — agreements with utility service providers; - supplier invoices

MINISTRY OF THE RUSSIAN FEDERATION FOR TAXES AND FEES

LETTER dated September 29, 2004 N 22-1-14/ [email protected]

ABOUT THE SIMPLIFIED TAX SYSTEM

The Small Business Tax Administration, having reviewed the request, reports. On issue 1.

The list of expenses accepted when calculating the tax base for the single tax paid by taxpayers in connection with the application of the simplified taxation system is established by paragraph 1 of Article 346.16 of Chapter 26.2 “Simplified Taxation System” of the Tax Code of the Russian Federation (hereinafter referred to as the Code).

In accordance with subparagraph 5 of paragraph 1 of Article 346.16 of the Code, when determining the object of taxation in the case where the indicator of income reduced by the amount of expenses is used as an object of taxation, taxpayers reduce the income received by material expenses, which, according to paragraph 2 of Article 346.

16 of the Code are adopted in relation to the procedure provided for calculating corporate income tax in Article 254 of the Code. According to subparagraph 5 of paragraph 1 of Article 254 of Chapter 25 “Organizational Income Tax” of the Code, material expenses, in particular, include the taxpayer’s costs for the purchase of fuel, water and energy of all types spent on technological purposes, production (including by the taxpayer himself for production needs) of all types of energy, heating of buildings, as well as costs for transformation and transmission of energy.

Taking into account the above, expenses for payment of heat, electricity and water supply spent for the above purposes are subject to inclusion in the expenses taken into account when calculating the tax base for the single tax paid in connection with the application of the simplified taxation system by all taxpayers, including trade organizations and non-production enterprises.

Head of the Small Business Taxation Department, State Advisor of the Tax Service of the Russian Federation, 1st Rank A.N. MELNICHENKO

——————————————————————

Good luck!

A tenant can pay utility bills in different ways. It all depends on how his relationship with the landlord is structured. The main options, approximate wording that can be used in contracts, as well as the types of tax expenses that will appear in each case, are given in the table. A separate column is devoted to documents (in addition to payment documents (Clause 2 of Article 346.17 of the Tax Code of the Russian Federation)) that can confirm the validity of accounting for utility bills in expenses (Clause 2 of Article 346.16, clause 1 of Article 252 of the Tax Code of the Russian Federation).

Utility payment option	Sample entries for payment of utility services in contracts	Type of expenses that include utility costs	Documentation
Utility payments are included in the rent
Utility payments - fixed part of the rent	From the lease agreement: “The rent is set at ____ rubles, including VAT ____ rubles, per month and includes the cost of utilities consumed by the Tenant.”	Lease payments (Subclause 4, clause 1, Article 346.16 of the Tax Code of the Russian Federation)	- lease contract; — lessor’s invoice for rent (if its issuance is provided for in the lease agreement)
Utilities are a variable part of the rent	From the lease agreement: “The rent is set in the form of a fixed payment in the amount of ____ rubles, including VAT ____ rubles, per month and a variable payment in the amount of the cost of utilities consumed by the Tenant for this period. The amount of the variable payment is determined on the basis of utility bills in proportion to the area occupied by the Tenant and is paid on the basis of an invoice issued by the Landlord with copies of utility bills attached" {amp}lt;*{amp}gt;	Lease payments (Subclause 4, clause 1, Article 346.16 of the Tax Code of the Russian Federation)	- lease contract; - landlord's invoice for rent; - copies of utility bills
Utility bills are paid separately from rent
Utility payments are paid to the landlord according to his account	From the lease agreement: “The rent is set at ____ rubles, including VAT ____ rubles, per month. The Tenant is obliged to compensate the Lessor for the cost of utilities consumed by the Tenant during this period. The corresponding amount is determined on the basis of utility bills in proportion to the area occupied by the Tenant and is paid on the basis of an invoice issued by the Landlord with copies of utility bills attached" {amp}lt;*{amp}gt;	Material expenses (Subclause 5, clause 1, Article 346.16, subclause 5, clause 1, Article 254 of the Tax Code of the Russian Federation)	- lease contract; — landlord’s account for utility bills; - copies of utility bills
Utility payments are paid to the landlord under an intermediary agreement	From the agency agreement with the landlord: “The Agent undertakes to: - enter into agreements with utility providers: ______________ in order to provide electricity, heating, water supply to the premises rented by the Principal under lease agreement No. _________ dated _________; — transfer to these organizations the funds accepted from the Principal as payment for the services provided by them; - no later than _______ days after the end of each month, send to the Principal a report on the fulfillment of the instructions provided for in this Agreement. The Principal is obliged to pay the Agent a remuneration for actions performed under this Agreement in the amount of _________ rubles.

Accounting for Income and Costs

With a simplified tax calculation system, it is important to separate funds received as payment for services from members of the HOA and from residents who have not joined the organization; this is done using entries D 86 and K 26.

Other entries that allow you to take into account basic income and expenses include:

Receiving subsidies – D55 and K50.
Expenses for repair work – D20 and K60.
Receipt of contributions – D76 and K86.
Payment on receipts for special services of non-HOA members – D76 and K60.
Expenses for payment of services of suppliers – D91 and K60.
Tax calculation when using the simplified tax system - D26 and K68.
Profit from renting out premises – D62 and K90.

If there is no separate accounting, then all receipts are considered income on which taxes must be paid.

Important! To exclude profit from business activities (including rental of premises) from the total amount of income under the simplified tax system, you need to use entries D84 and K86, which transfer commercial profit into funds for targeted financing.

What is an agreement for reimbursement of utilities by the tenant and a sample of its preparation

per month"

Material expenses (Subclause 5, clause 1, Article 346.16, subclause 5, clause 1, Article 254 of the Tax Code of the Russian Federation). Remuneration to the intermediary is taken into account in expenses as payments of commissions, agency fees and remunerations under agency agreements (Subclause 24, clause 1, Article 346.16 of the Tax Code of the Russian Federation) - lease agreement; — intermediary agreement with the landlord; — intermediary account for utility bills; — report of the intermediary (Articles 974, 999, 1008 of the Civil Code of the Russian Federation); - copies of utility bills Utility payments are paid to utility service providers The tenant himself enters into an agreement with utility providers (Articles 539, 548 of the Civil Code of the Russian Federation) Material expenses (Subclause 5, clause 1, Article 346.16, subclause 5, clause 1, Article 254 of the Tax Code of the Russian Federation ) - lease contract; — agreements with utility service providers; - supplier invoices

Communal payments

Reimbursement of utility payments to the landlord using the simplified tax system (income) - is that really income? Is it possible for a landlord using the simplified tax system (6%) not to take into account in his income the amount of compensation by the tenant for the cost of utilities? or are we following the lead of the Ministry of Finance? Letters of the Ministry of Finance of Russia dated 07/16/2009 N 03-11-06/2/130, dated 02/10/2009 N 03-11-09/42, dated 11/17/2008 N 03-11-05/274, dated 04/07/2008 N 03 -11-04/2/67 Hera

Individual entrepreneur on the simplified tax system “Income”. The individual entrepreneur has an agreement for the joint use of premises with the LLC. Based on this agreement, the LLC conducts its activities in these areas, and the individual entrepreneur pays rent and utility bills. Subsequently, the LLC reimburses the individual entrepreneur for utility and rental payments to the bank account. Is it necessary to withhold the simplified tax system (USN) from this income?

06 Aug 2020 consurist 319

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Simplified tax system: utility costs for simplified tenants

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per month"

Important to remember

Important to remember

No. 03-03-05/47, dated December 27, 2007 No. 03-0306/4/158).

When one of the parties to a transaction operates under a simplified taxation system, accountants often encounter difficulties. A clear example of this is the lease agreement. The most common problem is related to utility costs. The most typical questions here are as follows. Can a “simplified” tenant include “utilities” in expenses? Does a lessor working under a simplified system have the right to reissue an invoice received from a utility organization to the tenant?

Many questions arise for companies operating under a simplified system when they lease state or municipal property. Is it necessary to pay VAT to the budget in this case? And if necessary, can it be taken as a deduction?

Another problem is the cost of renovating leased premises. Can they be taken into account when calculating the single tax?

In this article we will talk in detail about all the nuances of leasing when one of the participants in such a transaction applies a simplified taxation system.

A company operating under the simplified system has no problems with rent payments. Clause 4 of clause 1 of Article 346.16 of the Tax Code of the Russian Federation directly states that such payments can be included in expenses that reduce taxable income. But this article of the Code is silent about public services. But officials have spoken out on this issue more than once.

For a long time, the opinion of tax authorities was as follows. The cost of utilities can be written off as an expense only if they are included in the rent. Now their position has softened somewhat. The Letter of the Ministry of Taxes and Taxes of Russia dated September 29, 2004 N 22-1-14 / [email protected] states that the “simplified” can include as expenses those utilities that are paid in addition to the rent.

True, there are some limitations here. According to officials, only the cost of heating, water and energy can be written off as expenses. The fact is that such expenses are prescribed in paragraph 5 of paragraph 1 of Article 254 of the Tax Code of the Russian Federation. As you know, this article contains a list of material costs. And in paragraph 2 of Article 346.16 of the Tax Code of the Russian Federation it is said that when “simplified” one must be guided by the list given in Article 254.

As for the cost of such public services as, say, garbage removal, then, according to tax officials, it cannot be written off as expenses under the simplified system. It is difficult to object to this, since Article 346.16 of the Tax Code of the Russian Federation indeed contains an exhaustive list of expenses taken into account when calculating the single tax.

So, it turns out that now a “simplified” tenant can take into account utility bills when calculating the single tax, both when they are included in the rent and when they are transferred separately. However, the first option is much more convenient. To implement it, you need to stipulate in the agreement with the landlord that the cost of utilities is included in the rent.

Let's start with the first problem. If the tenant does not have direct contracts with utility services, then he transfers money for electricity, water, heat, etc. to the lessor - either as part of the rent or as transit payments. In any case, the money received in the landlord’s current account is considered his income.

The situation is much worse for landlords who calculate a single tax based on income. When receiving transit money, they have to charge taxes on amounts that are then transferred to public utilities and, in fact, are their income. However, there is a way to avoid this trouble. To do this, you need to conclude an intermediary agreement with the tenant - agency or commission.

This scheme will allow the landlord not to count in his income the money received for “utilities” from the tenant and redirected to specialized organizations. The fact is that intermediaries should not include in their income the amounts they received from principals or principals in order to pay for the services purchased for them.

The second problem for “simplistic” landlords, as we have already said, is related to invoices. Naturally, tenants who pay VAT want to receive invoices for utility services in order to deduct the tax. But if these services are paid for by the landlord, then utility companies issue invoices in his name. Based on such documents, the tenant will not be able to deduct VAT.

Typically, in such cases, the landlord re-issues utility invoices to the tenant on its own behalf. But the problem is that neither the Tax Code of the Russian Federation nor any other regulations currently in force provide for such re-issuance of invoices. Therefore, the landlord may have problems. It is possible that the tax authorities, citing clause 5 of Article 173 of the Tax Code of the Russian Federation, will require the lessor to pay the VAT indicated in the invoice.

To minimize the risk, it is also worth resorting to a scheme with an intermediary agreement. The fact is that agents and commission agents can easily issue invoices on their behalf received from sellers of goods, works and services purchased for principals and principals. This is directly stated in the Letter of the Ministry of Taxes and Taxes of Russia dated May 21, 2001 N VG-6-03/404. This document is still in effect, and businesses can follow it without fear of sanctions from tax authorities.

When renting municipal or state property, an enterprise becomes a tax agent and must withhold VAT from the rent and transfer it to the budget. This is required by clause 3 of Article 161 of the Tax Code of the Russian Federation. Does this rule apply to tenants who work under the “simplified” system and, as you know, are exempt from VAT?

The amount of VAT that must be withheld from the rent is calculated at a rate of 18%/118% (clause 4 of Article 164 of the Tax Code of the Russian Federation). And if the rental agreement specifies the fee without VAT, its amount must be multiplied by 18 percent. The tax is transferred to the budget simultaneously with the rent.

Tax agents who pay VAT have the right to deduct the tax withheld from the rental payment. But the “simplified people” do not have such a right. But they can write off this tax as expenses (of course, if they calculate a single tax on the difference between income and expenses). This is stated in paragraph 8 of paragraph 1 of Article 346.16 of the Tax Code of the Russian Federation. This can be done as soon as the VAT is transferred to the budget.

Example. Jupiter LLC operates under a simplified taxation system, charging a single tax on the difference between income and expenses. The company rents a warehouse space from the territorial administration of the Russian Ministry of Property. The rent is 177,000 rubles. per month including VAT.

When transferring the next rental payment, the accountant of Jupiter LLC withholds from it and pays VAT to the budget - 27,000 rubles. (RUB 177,000 x 18%: 118%).

This is especially true for companies with the object of taxation “income minus expenses” in order to have the right to reduce the tax base.

It is important to have a clear understanding of how expenses should be accounted for in a simplified manner, what expenses are entered into KUDRiR, and to understand the composition, conditions and moment of recognition of expenses.

But there is still a way out. Let's consider the possible options.

The Ministry of Finance of Russia in a letter dated April 17. 2013 N 03-11-06/2/13101 provided a way to formalize relations in which the lessor can avoid including compensation amounts in income - this is the conclusion of an agency agreement.

The fact is that income does not include income in the form of property received by a commission agent or other attorney in connection with the fulfillment of obligations under a commission agreement, agency agreement or other similar agreement. And also for reimbursement of expenses incurred by a commission agent, agent or other attorney for a principal, principal or other principal, if such expenses are not subject to inclusion in the intermediary’s expenses in accordance with the terms of concluded agreements (subclause 9, paragraph 1, article 251 of the Tax Code RF).

In accordance with paragraph 1 of Article 1005 of the Civil Code of the Russian Federation, under an agency agreement, the agent undertakes, for a fee, to perform legal and other actions on behalf of the principal in his own name, but at the expense of the principal or on behalf and at the expense of the principal. Under a transaction made by an agent with a third party on his own behalf and at the expense of the principal, the agent acquires rights and becomes obligated, even if the principal was named in the transaction or entered into direct relations with the third party for the execution of the transaction.

Reporting

With a simplified system, the accounting department of a housing association reports income and expenses in the following ways:

Drawing up a report for submission to the auditor and housing inspection authorities.
Filling out a tax return.

The report for regulatory authorities must reflect the following information:

The amount of planned income and expenses, in accordance with the estimate approved by the general meeting.
The amount of actual expenses incurred and income received.
Sources of income.
Directions of expenses.
Reasons for overexpenditures and other discrepancies.
Information about taxes and insurance fees paid.

The report is subject to submission to the auditor and the annual general meeting of owner-members of the HOA. The source of information for generating the report is the accounting ledger and regular payroll records.

For more information on how an HOA submits its reports and balance sheet to the simplified tax system, as well as what accounting entries are made, read our material.

Accounting for expenses under the simplified tax system (simplified) - Kontur.Accounting

Accounting for expenses for organizations using the simplified tax system must comply with a certain procedure.

This is especially true for companies with the object of taxation “income minus expenses” in order to have the right to reduce the tax base.

Not all expenses of an organization on the simplified tax system reduce the tax payable. The legislation establishes a clear list of costs that fall under the concept of simplified expenses. This list is given in Art. 346.17 of the Tax Code of the Russian Federation, and it is broad enough for organizations to make expenses when doing business and reduce the tax base. Here are the main types of costs for the simplified tax system:

Payment of salaries, travel allowances, social and pension insurance contributions.
Purchasing goods or paying for work used in business activities.
Taxes and fees.
Rent, utility bills, communications, without which it is impossible to run a business.
Advertising, information services.
Purchase of fixed assets and intangible assets.
Economic needs of the organization, maintenance of cash register systems.
Transport costs, fuels and lubricants, maintenance of the organization’s transport, its repair.
Mandatory property insurance, notary services, licensing.

Sometimes expenses include unreasonable expenses: voluntary insurance, marketing research. To avoid errors in determining expenses, it is better to refer to letters from the Ministry of Finance. And if an expense cannot be unambiguously classified in accordance with the list from the Tax Code article, it is better not to take it into account when calculating the tax.

Conditions for recognizing expenses

To avoid mistakes when accounting for expenses, it is important to take into account a number of conditions in addition to the list from the article of the Tax Code of the Russian Federation:

The expense must be economically justified, it must be aimed at generating income - it is important to be able to explain how certain expenses help your business.
You must pay the supplier in full.
The product or service for which the expense was made was received by you, and there are documents - invoices, acts, invoices - that confirm the expense and receipt of the product or service.
If we write off expenses for the purchase of goods for resale, the goods must have already been resold.
If we write off expenses for the purchase of goods for production, the goods must already be put into production.

Moment of expense recognition

It is equally important to understand at what point cash expenditures become expenses from the point of view of established standards. Let's be clear: when an organization purchases goods or work for its activities, the following processes occur:

Payment to the supplier.
Receipt of goods, materials or works/services from the supplier.
Shipment of goods to the final buyer or transfer of materials to production.

To recognize an expense and enter it into KUDIR, it is necessary to complete all these processes. That is, the date of the last of these events becomes the day the expense is recognized.

Employee compensation is another category of expenses for an organization. Expenses under this item are taken into account on the day when the employee received his salary in person or on a bank card. The same applies to the transfer of taxes, fees and contributions, as well as payment for the services of contractors.

Accounting for expenses when purchasing fixed assets is carried out at the end of the tax period and only if a number of conditions are met. The fixed asset must be accepted for accounting; it must be used to generate income. If a product requires state registration, it must take place.

The cost of a non-current asset is written off in equal installments until the end of the calendar year on the last day of each quarter.

If the facility is purchased in installments under an agreement, put into operation and, if necessary, registered, then expenses can be accounted for by actual payment of parts of the debt.

Accounting expenses

In the simplified accounting book, the organization records only the expenses listed in Art. 346.16 Tax Code of the Russian Federation. But in accounting, the company records all business transactions in order to accurately reflect data on the current financial condition. In accounting, expenses are divided into two categories:

Expenses for ordinary activities.
Other expenses.

The first section includes expenses related to the main activities of the organization. To account for such expenses, several accounts are provided depending on the direction of the expense - according to the Instructions to the Chart of Accounts. For example, for production costs there is account 20 “Main production”, for the sale of products there is account 44 “Sales expenses”.

Costs that cannot be classified under normal activities are classified as other expenses. For example, these are expenses for the sale of fixed assets, interest on loans and borrowings, sanctions for violation of contracts.

Kontur.Accounting will help you correctly classify expenses and tell you when and what amount can be included in expenses. We invite you to watch our free webinar on simplified cost accounting. Get acquainted with the capabilities of the service for free for 14 days, keep records, calculate salaries and send reports using Kontur.Accounting.

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Source: https://www.b-kontur.ru/enquiry/312