Individual entrepreneur issues an invoice with VAT. Savings due to tax deductions - invoice for individual entrepreneurs

Companies that apply such a special tax regime as the simplified tax system are exempt from VAT and do not have to issue invoices. However, some simplifiers still have to do this, for example, when they work with counterparties who present such terms of cooperation. We will discuss in detail how an invoice is issued under the simplified tax system with and without VAT in 2020 in the article.

Invoice under simplified tax system

All organizations and individual entrepreneurs using the simplified tax system are not VAT payers, which means they do not need to issue an invoice. However, if certain situations arise, such a document will be needed.

These include situations where “simplified” people pay VAT: (click to expand)

• Import of goods;
• Operations under a simple partnership agreement, or trust management of property and concession agreement;
• When a company performs the duties of a tax agent, for example, rents state or municipal property.

When concluding an agency agreement, an organization may have questions about the need to issue an invoice. An invoice will be required if the company on the simplified tax system is a commission agent or an agent and carries out operations:

• Upon the sale of goods by the principal or principal, who is a VAT payer;
• Upon the purchase of goods from a VAT payer for the principal or principal, who is a VAT payer.

When selling goods to the principal or principal, an invoice must be issued in the usual manner. The document must indicate the date of the invoice, as well as the serial number of the document, according to the chronology used in the company.

When purchasing goods for the principal or principal, you must re-issue the invoice received from the seller. The following is indicated on the invoice:

• Line 1 – date of the document from the seller;
• On lines 2, 2a and 2b – data on the seller (name, address, tax identification number and checkpoint);
• On line 5 - details of payment documents (if any) for the transfer of funds by the commission agent to the seller, and by the committent to the commission agent;
• The tabular part must contain information on the quantity of products, their cost, the amount of VAT, as well as other indicators issued by the seller in the invoice.

Invoice marked “without VAT”

Companies should not issue an invoice marked “without VAT” on the simplified tax system. Only companies exempt from VAT put this mark. Organizations that are considered exempt from VAT are recognized in accordance with Article 145 of the Tax Code of the Russian Federation.

Companies that apply the simplified tax system do not qualify as such “exempt” payers, since they are not initially payers of this tax. Accordingly, there is no need to issue a “simplified” invoice marked “without VAT”.

Some counterparties still insist on an invoice. Such companies should keep in mind that they will not receive a deduction for “input” VAT on such an invoice. And why they continue to demand such invoices is not clear.

“Simplers” are not obliged to fulfill such a request. They have the right to explain to their counterparties that in order to post the purchased goods, documents such as an invoice for payment, an invoice and a statement will be sufficient. And if the counterparty continues to insist and it is impossible to convince him, then you can issue the required document. Please indicate that the purchase does not include VAT.

Important! If a company has issued an invoice without VAT using the simplified tax system, the agreement with the counterparty and the entire “primary” document should also not contain tax.

Invoice journal

A unified form can be used as a logbook.

Zero VAT on the invoice

Organizations using the simplified tax system should also not put a real VAT rate of 0% in the invoice. Only companies that are VAT payers can apply this rate. In addition, it must be confirmed by specific documents that organizations submit along with the VAT return to the tax office.

If an accountant decides to meet the buyer halfway and issue a document with zero VAT, the tax authorities have the right to charge it, not at a zero rate, but at a rate of 18%. This will happen because VAT is indicated in the invoice, and it is impossible to confirm that the company’s rate is zero.

If you issue an invoice with VAT

Some organizations, on their own initiative, may issue invoices, highlighting VAT. In this case, they are required to pay tax to the budget and also submit a VAT return to the Federal Tax Service. This must be done before the 25th day of the month following the quarter in which the document was issued. For example, a company issued an invoice using the simplified tax system on February 10, 2020; accordingly, it must submit a VAT return by April 25, 2020.

It is important to understand that issuing an invoice with allocated VAT does not give the simplifier the right to a tax deduction on purchased goods. Only VAT payers have the right to such a deduction, and organizations using the simplified tax system are not such.

Issuing individual entrepreneur invoices using the simplified tax system

For entrepreneurs using the simplified system, the same requirements for issuing invoices apply as for organizations using the simplified tax system.

The legislative framework

Answers to common questions

Question: A simplified company, at the request of the buyer, issued an invoice, highlighting VAT. After that, in accordance with the requirements of the law, I paid this tax to the budget and filed a VAT return. When calculating the simplified tax system, will VAT be included in the tax base? (click to expand)

Answer: The tax base for simplifiers is income, which must first of all be economically profitable. Paid VAT is not a benefit for the company, and therefore should not be included in the base for calculating the simplified tax system. Accordingly, when calculating the tax, the simplified tax system does not need to be included in the VAT base.

The main difference between reporting by an entrepreneur and a legal entity is the independent management of document flow by the business owner, and not by a separate accounting department. That's why Individual entrepreneurs are given 5 calendar days, not working days, to issue an invoice.

The starting point is the day of receipt of property rights to the goods, the date of shipment, receipt of services, acceptance of work or receipt of an advance. In cases of prepayment, an invoice is drawn up twice, upon receipt of the advance payment and upon fulfillment of the terms of the transaction. You can find out how an advance invoice is prepared.

Article 169 of the Tax Code of the Russian Federation contains the basic requirements for indicating to an individual entrepreneur the features of a transaction in an invoice:

Important! Reliable and correct indication of all the listed information in the invoice gives the individual entrepreneur the right to receive a tax deduction when transferring the purchase book to the tax service.

You can find out more about what an invoice is and the features of using the document.

Do you need a document?

Should I issue a document if I work without VAT?

The obligation to issue an invoice under the conditions of the seller's exemption from VAT, in accordance with paragraph 5 of Article 168, occurs in cases provided for in Article 145 of the Tax Code of the Russian Federation. We are talking about individual entrepreneurs with revenue of less than 2 million rubles per quarter, who do not work with excisable goods.

Such entrepreneurs, after notifying the Federal Tax Service, are exempt from VAT for 12 calendar months, unless conditions arise for the cancellation of such a right. The exemption is then reviewed and updated annually.

In other cases the taxpayer has the right, but not the obligation, to issue an invoice, and may use it solely for your convenience.

An example of such a situation is the exemption from tax of part of the consignment indicated in the invoice together with goods subject to tax. Also, an optional invoice for tax-free goods will help maintain consistency in document numbering.

Read about when you need an invoice without VAT.

How to display?

Option with VAT

When receiving invoices from contractors who are individual entrepreneurs, the buyer should especially carefully monitor their authenticity and especially the presence of the signature of the entrepreneur himself. The main difference from receiving a document from an LLC is the requirement for a personal visa.

Important! The absence of one of the key details, such as a personal signature or duplication of data in column 3, is grounds for refusal of a deduction during an inspection.

If an entrepreneur has issued an invoice, but the form contains an error, then it will be impossible to obtain a VAT deduction even through the court.

In case of tax exemption

Drawing up an invoice for goods “without VAT” is possible in 2 variations:

1. If all the goods in the batch have such a mark, then in line 8 of the form with the total tax amount this mark is duplicated, and such a tax document is not considered.
2. If some services or goods are exempt from tax, then column 8 indicates the actual amount excluding these data.

An invoice without VAT is filled out in accordance with the general rules for preparing this document, since Government Decree No. 1137 dated December 26, 2011 was updated by Appendix 2 to the resolution dated February 1, 2018. It is enough to enter the entry “excluding VAT” in the appropriate section of the table. The mark can be made separately, in a printed document by hand, for example, when signing a document.

Actions after issue

When receiving an invoice from the entrepreneur's authorized representative, the buyer has a high chance of being denied a deduction from the tax service and will have to go to court. The judge will check the authenticity of the transaction and, most likely, will grant the request to annul the refusal on a formal basis, but this will take the buyer time and money.

To avoid legal costs and other unpleasant moments associated with the incorrectness of this document, The nuances of issuing an invoice should be specified in the supply agreement. In any case, the supplier is not responsible for issuing an invoice, unless otherwise specified in the contract.

Conclusion

For goods, services and works subject to VAT, and invoices without VAT, since 2017, are drawn up in a similar way on an identical form. The only difference is the mark “Without VAT” in the corresponding rows of the table, opposite the names of goods and services.

The supplier issues a document with VAT because its tax system requires it. You won’t be able to persuade him even for gifts for the New Year or March 8th.

You simply pay the invoice with VAT, and in the purpose of payment indicate “including VAT 18%”. There is no problem with this.

Entrepreneurs sometimes write to us that if they pay a VAT invoice, the tax office will automatically transfer them to the general taxation system. It is a myth.

If an entrepreneur works on the simplified “income minus expenses” basis, he can include the VAT amount in expenses along with the goods and services he purchased. The Tax Code speaks about this. To confirm expenses, keep invoices.

Another situation is if you work on a simplified basis, but the client asked you to issue him an invoice with VAT. He works with VAT and will be able to offset it. He is comfortable, but you are not. If you issue an invoice, you will have to:

• pay this VAT to the tax office by the 25th day of the month following the quarter;
• submit your VAT return electronically.

If you issued an invoice to the buyer with VAT, and then paid the supplier's invoice with VAT, VAT from the supplier cannot be accepted for offset.

An individual entrepreneur invoice is a document that allows you to receive a VAT deduction from the Federal Tax Service. According to current regulations, document flow must be carried out with a minimum number of errors during registration. An entrepreneur, according to the area of ​​activity regulated in the Tax Code of the Russian Federation, can work both with and without VAT. It is necessary to determine whether the absence of a tax amount in the invoice is allowed or if VAT is not paid, it is not necessary to issue it.

The essence and role of an invoice

An invoice is drawn up by the seller and transferred to the buyer no later than 5 days after the transaction and is confirmation of the provision of services or the supply of goods.

According to Decree No. 1137 of December 26, 2011, an invoice can be presented on electronic or paper media with equal legal force. Invoices generated digitally must be certified with an electronic digital signature (EDS). It is possible to draw up a corrective document, both separately for the advance payment for delivery and the total paid invoice when releasing goods on prepayment.

Based on its purpose, an invoice must be prepared by all legal entities and individual entrepreneurs who contribute to the state budget in the amounts prescribed by law.

Regulatory support for the procedure for generating invoices for an entrepreneur and reflecting the facts of economic activity is provided in the Tax Code of the Russian Federation:

1. Articles 168-169, which provide information on the rules of compilation, types, including the legality of creating an electronic version and types of business activities exempt from VAT.
2. Paragraphs 11 and 26 of Article 346 determine the obligation to issue documents or its absence under different taxation regimes;

Additionally, the Order of the Federal Tax Service No. ММВ-7-69/3 dated February 27, 2014 defines the procedure for drawing up invoices of all types and formats.

Please note that starting from the 1st quarter of 2019, an invoice must be provided using a new form.

If the individual entrepreneur is on the general taxation system, then invoices must be issued, regardless of the type of activity, within 5 days.

All generated documents are reflected in the Purchase and Sales Books. The purchase book is a register of invoices received from third-party market counterparties for which the tax was paid. The sales book reflects the individual entrepreneur's accounting of all issued documents, on the basis of which the VAT deduction is calculated.

Procedure for filling out an invoice without VAT

In 2019, there were many changes in the regulatory framework for accounting and tax accounting that need to be applied.

Starting from January 1, 2019, individual entrepreneurs on OSN and special regimes are exempt from maintaining registers that duplicate the information reflected in the Book of Purchases and Sales. However, as before, all registration books are provided by those, regardless of the taxation system, who provide intermediary and audit services or are developers, and also enter into commission and agency agreements.

This obligation is specified in Article 174 of the Tax Code of the Russian Federation.

The journals are submitted to the supervising tax authority in the month following the reporting period (usually a quarter) no later than the 20th day. When concluding mediation agreements, “summary” invoices may be presented. All responsibilities are specified in Letter of the Ministry of Finance of the Russian Federation No. 03-07-14/2821 dated January 28, 2015 and Decree of the Government of the Russian Federation No. 1279 dated November 29, 2014.

Detailed filling procedure, which regulates the content of the following information:

• serial number and date of invoices;
• full name and tax identification number of the supplier and buyer;
• name and quantity of goods supplied or services provided;
• cost, in Russian rubles, for one unit and the entire batch;
• the tax rate in effect on the date of the transaction;
• the amount of tax to be transferred to the budget;
• information about the sender and recipient of the cargo;
• if the vacation was made on an advance payment, you must indicate the date and number of the payment document;
• unit of measurement of goods. Not specified when providing services.

Information in accordance with Article 169 of the Tax Code of the Russian Federation must be contained in electronic and paper format. When generating a paper invoice, it is necessary to generate 2 copies, one is received by the seller, the second is given to its customers.

Who may not issue an invoice?

Depending on the taxation procedure chosen by the individual entrepreneur, payment of VAT may not be provided for; accordingly, the question objectively arises about the need to issue invoices to those who are exempt from the quitrent.

According to the Tax Code of the Russian Federation, tax is not paid:

• working in retail trade;
• employed in public catering;
• providing services for cash only;
• operating in the securities market and selling shares and bonds;
• selling goods to consumers who use preferential tax regimes.

Details are provided in Articles 168 and 169 of the Tax Code, which reflect nuances depending on the chosen taxation system.

Under the special regime, tax is not paid, which is reflected in the reporting provided. Special regimes include simplified taxation system, UTII, unified agricultural tax.

However, according to paragraphs 11 and 26 of Article 346, individual entrepreneurs can generate and issue invoices without indicating the amount of value added tax.

“Closing” documents without an invoice are a delivery note or an act of acceptance and transfer of goods (services).

If an invoice is generated incorrectly, namely indicating VAT in it, if the individual entrepreneur is not a tax payer, it will be necessary to pay it and report to the Federal Tax Service.

Consequences of errors in invoices

Like any document, an invoice should not, but may contain “technical” errors.

Paragraph 2 of Article 169 of the Tax Code of the Russian Federation clearly defines on the basis of which errors a VAT refund can be refused, and which are not recognized as significant and do occur.

The task of the tax authorities is to control the timely receipt of taxes to the budget, increase their amount, prevent non-payment and reduce the amounts subject to deduction. If a specialist from the department identifies inaccuracies or typos, he will form a negative conclusion and no VAT deduction will be made.

If an employee of the Federal Tax Service was able to identify the participants in the transaction by name or tax identification number, type of product or service and their cost, amount and amount of tax, then I have no right to refuse a VAT deduction.

The signature on the documents must be affixed with your own hand; the use of a facsimile may be regarded as an error in the preparation of the document. Judicial practice proves the opposite; however, to save time on communicating with the tax service, endorse the documents yourself or by third parties, if they have the authority.

Of course, subsequently, after identifying any errors, it will be necessary to make changes to the counterparty’s registration card in order to avoid misunderstandings and controversial situations with government agencies in the future.

Nuances of activity that arise for individual entrepreneurs

Any invoice must be certified by a signature, which is located after all the required details, usually in its lower right part.

The individual entrepreneur has the right to sign personally, as stated in Article 21 of the Tax Code of the Russian Federation, indicating information about the number and date of registration of the status. Delegation of the right to sign invoices to third parties by orders or other internal regulations is not permitted. This obligation makes it difficult for those persons who are not permanently present at the place of business to timely transmit invoices to customers.

One of the options for executing the instruction is to provide a notarized power of attorney to the responsible person, who is an accountant. In the power of attorney, indicate which documents the representative is allowed to visa. The best option would be to purchase an electronic signature and endorse documents with it online, if necessary.

The presence on the invoice and the date of its issue is not a mandatory requirement if such data is contained on the stamp.

The invoice must be certified with a “live” or electronic signature of the individual entrepreneur and must have a seal with all the necessary parameters, with the obligatory indication of the certificate number and the date of its issue.

The changes that came into force at the beginning of 2019 concern information in the invoice, as well as the calculation and payment of VAT:

1. The VAT declaration is submitted no later than the 26th day of each month following the reporting period only in electronic form.
2. Before submitting the declaration to the Federal Tax Service, it is necessary to summarize the amounts in the Book of Purchases and Sales.
3. If an individual entrepreneur issues zero invoices on USP, he is not required to provide a declaration.

It is necessary to draw up documents correctly and provide accounting and tax reporting on time. Remember that errors identified by the audit are not always critical, but may serve as grounds for refusal of compensation.

Timely adjust the procedure for maintaining accounting, management and tax accounting when the legislative framework changes. Each entrepreneur must competently substantiate his position and optimize costs during negotiations with tax authorities or by defending his rights in court.

IP simplified taxation system income minus expenses. Give an explanation of the application of VAT under the simplified tax system. Our manager is negotiating with a large buyer of products. The purchase is not a one-time purchase, there are different batches throughout the year, but VAT is required. The manager does not want to lose such a buyer and proposes to issue an invoice with VAT only for this counterparty. Can the buyer accept the VAT charged by the seller using the simplified tax system? Consequences for the seller when issuing VAT, besides paying the tax and declaration? Do I need to keep a book of purchases and sales? How often can you issue a VAT invoice while using the simplified tax system?

Answer