What is the value added tax
Under such a notion asvalue-added taxunderstand the taxation system in whichtax is directed at the production, exchange or resale of goods. Depending on the type of product, there are different interest rates. Interest rates are negotiated in special regulations. At all,value-added taxis included by the seller or manufacturer in the cost of the goods, then paid by the buyer. It is calculated the samevalue-added taxas the difference between the VAT paid by the buyer and VAT paid for expenses, which are included in the cost of this product.
Taxpayers of this tax are -organizations, individual entrepreneurs, as well as persons whose activities are aimed at moving goods across the customs border. Taxpayers are not:
- broadcasting official companies thatThey hold the Olympic Games, distribute and organize media products, which are also held during the Olympic Games.
- foreign organizations that conduct the Olympic Games.
Persons who payvalue-added tax, must register with the tax authority. If they are individual entrepreneurs, then they are obliged to enter the tax authority at the place of residence, and if they are organizations, they must enter the tax authority at the place of their immediate location or at the place of a separate subdivision that is located on the territory of the Russian Federation. And then producedaccounting for value added tax.
Pay the tax should be those persons who have in their possession the object of taxation. These include:
- the sale of services and goods, as well as the transfer of property rights in the territory of the Russian Federation.
- transfer of services and goods for own needs.
- importation of goods into the territory of the Russian Federation.
- execution of installation and construction works for own consumption.
With regard to such a notion asvalue-added tax rate, then herevalue-added taxgoes at rates of 0.10 and 18%.
The 0% rate is for goods:
- which are exported in the customs regime, as well as services that are related to the production of goods.
- services that offer transportation of passengers and their luggage, which are located outside the Russian Federation.
- goods, services and works that are aimed at space activities.
- precious metals.
- goods for use by foreign governments.
- ships that are built and are subject to the register of the Russian Federation.
The rate of 10% is charged to the following goods:
- goods for children;
- medical products of foreign and domestic production;
- printed publications and book products, which are related to science, education and culture.
Well, in all other cases apply a rate of 18%. Besides,value-added tax ratecan be determined by the calculation method. When importing goods into the territory of the Russian Federation, rates of 10 and 18% are applied. The tax rate is defined as the ratio of the interest rate to the tax base, which is taken as 100, increased by the appropriate amount of the tax rate.
The value added tax is paid onthe results of each period from the sale of goods for the expired period of equal shares, but not later than the 20th. Taxes are transferred to the federal budget. In all payment documents, this tax is allocated in a separate line. Thanks to the value-added tax, the state receives income at each stage of the sale of goods, which provides a stable source of income. In some countries, several rates may be set for economic and political reasons.