How to process a return of a defective product from a buyer. What is the procedure for documenting the return of defective goods to the supplier, in particular, the preparation of primary documents, as well as the reflection of these transactions in accounting? Documents n

Individuals and legal entities have the right to return previously purchased goods to the seller, if there are grounds for doing so. It is important to properly process and reflect the return of products in accounting. Relations between supplier and buyer are regulated by the Civil Code of the Russian Federation.

The legislative framework

The buyer has the right to return the product to the supplier even if it is not defective or damaged. This rule is established by Article 421 of the Civil Code of the Russian Federation. There are the following reasons for a return:

• All necessary documents are missing.
• Defect detected.
• The product has expired.
• The supplier sent products in a smaller volume than was agreed upon, or the wrong product was delivered (according to Articles 466 and 468 of the Civil Code of the Russian Federation).
• Unsatisfactory product quality (Article 475 of the Civil Code of the Russian Federation).
• There is no container if there should be one (Article 482 of the Civil Code of the Russian Federation).

Upon acceptance of the goods, the buyer must carefully inspect it. If any defects are found, a refund will be issued.

Procedure for returning goods for various reasons

All cases of goods returned to the supplier can be considered as one of three aspects.

1. Inadequate quality, defects, discrepancies in assortment, set or packaging are detected upon acceptance - then a return is issued without transferring the goods to the buyer, it is immediately returned to the supplier, since acceptance does not occur.
2. Despite the detected deficiencies, the receiver is forced to accept the goods, knowing that he will have to issue a return later. In this case, the products are accepted by the buyer for safekeeping.
3. Planned returns of products not sold on time - the so-called reverse sales.

The reasons for the return are fundamental when processing the transaction. The accounting entries used depend on them. The key point is whether ownership has already passed from the supplier to the buyer, or not yet.

Return of low-quality products

If the buyer discovers the poor quality of the goods, he can choose one of several ways:

1. Return of products with refund of money paid.
2. Return of low-quality goods for exchange for quality ones.

The procedure is regulated by Articles 518 and 475 of the Civil Code of the Russian Federation. It differs in a number of nuances:

• If minor defects are found on the product that can be quickly corrected, the buyer has only one option - returning the product to eliminate the defects.
• If a defect is detected not on the entire product, but only on part of the set, only this part is replaced.
• If a product is purchased by a legal entity for the purpose of resale (for example, products are purchased by a retail store), only the provisions of the Civil Code of the Russian Federation will apply, and not the Law on the Protection of Consumer Rights. The return procedure applicable to retail customers does not apply in this case.

Returns may be made within the warranty or expiration date. However, there are exceptions. You can return products within 2 years under the following circumstances:

• The buyer can prove that the deformation occurred before he received the goods (according to Articles 471 and 477 of the Civil Code of the Russian Federation).
• If the product does not have an expiration date or warranty period.

You can prove the presence of deformations using photos, videos and witness testimony.

Registration of return of low-quality goods

If the buyer finds any defects, he must immediately notify the supplier. This procedure is stipulated in Article 483 of the Civil Code of the Russian Federation. If no notification was sent to the seller, then he has the right to refuse the return.

IMPORTANT! The buyer, according to Article 514 of the Civil Code of the Russian Federation, must accept low-quality products for safekeeping until they are actually returned. Until this moment, it is he who is responsible for the safety of the goods.

If the supplier agrees with the claims presented to him, the following documents are drawn up:

• A report of detected defects (can be drawn up according to), which sets out existing claims.
• Return invoice for goods (can be issued by).

If the defects are minor, the products are returned to be corrected. It makes sense to draw up a document that specifies the deadline for correcting all detected defects.

If the supplier undertakes to eliminate defects in the shortest possible time, there is no need to issue a return invoice. The rule is stipulated by Article 518 of the Civil Code of the Russian Federation.

The supplier may also deny that the product is of poor quality. In this case, it is necessary to prove the presence of defects using the following documents:

• Claims.
• Notifications to the supplier about the date of the examination.
• Protocol on preparation for examination.
• Expert opinion.

ATTENTION! A report on detected defects, drawn up unilaterally, is not evidence of low quality products. But there is an exception: the agreement between the parties specifies the application of the instructions “On the procedure for accepting goods” dated April 25, 1966.

Return of quality products

The buyer has the right to return quality goods to the supplier if the following grounds exist:

• Rights to products are vested in other persons (Article 460 of the Civil Code of the Russian Federation).
• The supplier did not timely deliver the accompanying documentation and components for the goods (Article 464 of the Civil Code of the Russian Federation).
• A smaller quantity of products was received than agreed upon (Article 466 of the Civil Code of the Russian Federation).
• The range of products was not observed (Article 468 of the Civil Code of the Russian Federation).
• There is no complete set (Article 480 of the Civil Code of the Russian Federation).
• The packaging does not meet the requirements for it established by law or agreement (Article 482 of the Civil Code of the Russian Federation).

You can add to the list yourself. For example, the supplier undertakes to transfer accompanying documents within a certain period of time. If he does not do this, the buyer has the right to issue a return. Additions must be fixed in the agreement between the parties. If the parties to the transaction have previously agreed, the products can be returned even without serious reasons. For example, a return is issued if the buyer does not sell the product within the agreed time frame.

Registration of return of products that could not be sold

As mentioned earlier, the contract can provide for the possibility of returning goods that could not be sold within the specified time frame. From a tax point of view, the transaction has signs of reverse sale. That is, the supplier becomes the buyer, and the buyer becomes the supplier. To complete the procedure, the following documents are required:

• Packing list.
• Invoice.

IMPORTANT! Large retail chains do not have the right to return goods if they could not be sold. The exception is the sale of bakery products.

FOR YOUR INFORMATION! It is difficult to carry out such a transaction when selling alcoholic products, since the sale of alcohol requires the availability of separate licenses.

Reflection in accounting

Three transactions are recorded in accounting:

1. Registration of invoice for goods receipt.
2. Write-off of goods from credit.
3. Fixing a statement about the receipt of money from the supplier (in this case, posting DT51 KT76 is used).

This procedure is relevant when defects are discovered before the products are accounted for. In this case, you need to draw up an act. The products will be returned to the supplier.

If a defect is identified after capitalization, it is required to issue a certificate of non-compliance to the supplier. Subsequently, all transactions are reflected in subaccount 76.6 “Calculations for claims.”

Example of using postings

The company bought nails for the amount of 25,000 rubles. Before receiving the shipment, a transfer of 50% was made to the supplier. After posting, a defect was discovered - the nails were not straight enough. When returning, the buyer uses the following transactions:

• DT60 KT51. Explanation : prepayment. Sum : 12,500 rubles.
• DT68 KT76. Explanation : VAT reflection. Sum : 1,906 rubles.
• DT41 KT60. Explanation : acceptance of products for accounting. Sum : 25,000 rubles.
• DT19 KT60
• DT60 KT60. The advance has been credited.
• DT68 KT19. Registration of an invoice in the amount of 3,813 rubles.
• DT76 KT68. VAT restoration.
• DT76 KT41. Return of products to the supplier.
• DT76 KT68. VAT accounting in the amount of 3,813 rubles.
• DT51 KT76. Refund by supplier.

The supplier uses other wiring.

Value added tax issues when returning goods

Taxation cannot be ignored when shipping or returning an item. If both the supplier and the buyer are on a common tax system, this is the simplest option. In this case, all deliveries are entered into the sales book, and then VAT is charged on them. When a product is sold, its cost is included in direct costs.

But if one of the parties to the transaction is on a special taxation system, this issue becomes somewhat more complicated, since for special systems:

• the VAT amount is included in the cost of the goods when they are posted;
• the cost of goods includes VAT, due to which the shipping price changes;
• no invoice is issued (VAT is not charged).

If the supplier is on OSNO, and the buyer is on “simplified”, then when he returns the cost of the receipt will be greater than in the delivery invoice - by the amount of VAT.

Return of goods from buyer to seller is not such a rare situation in the modern market. The reasons may be different, the most common are the quality is lower than previously stated, incomplete equipment, and so on. We will try to talk about the conditions under which this procedure can take place.

How to prepare documents for returning goods

Organizations often face product returns. This means that goods are transferred from buyers to sellers. The Civil Code of the Russian Federation describes in detail the reasons why this can happen:

• The goods are transferred in the absence of the necessary containers.
• The quality of the product is not meets the standards.
• Not The package complies with the documents.
• When receiving goods less than originally in papers.
• The buyer is not received an important part of the papers related to product.

Ownership of the goods passes to the buyer if the goods are transferred to him from the seller. But the buyer may waive this right if there is a reason for doing so.

If any defects are identified, the buyers, for their part, draw up a statement of discrepancy. A claim for the return of the goods is attached to this act, after which everything is transferred to the seller.

Return of goods: example of a transaction from a buyer

Account 76 was additionally introduced due to the fact that the buyer transferred payment for the goods to the seller. The account is called “settlements with different debtors, creditors”. The buyer may have a credit debt after the reversal has been carried out. The client moves from the category of “buyers” to the group of “creditors”. Account 76 is precisely intended for settlements with creditors. The debt will be repaid when the seller returns the money to the buyer. Then the account is reset to zero.

Registration of goods return to the supplier

Let's consider the same example, but now we need to understand how to take into account for the buyer a product of inadequate quality returned to the seller. The supplier transferred the goods to the buyer for a total amount of 11,800 rubles. VAT amounted to 1800 rubles. The buyer made payment and then returned all the goods.

The wiring might then look like this:

Supplier: reverse sale of goods

Often contracts try to take into account one more clause. According to it, the buyer can return the product if it has not been sold after a month, for example. Reversal is not used in this situation. Only a reverse sale is processed. The seller's wiring may look like this:

Returning goods for buyers with a simplified taxation system

This situation differs from the others in that the right to deduct VAT from the original seller is lost. When the goods were sold for the first time, the tax had already been paid. VAT cannot be deducted on returns. After all, the invoice is simply missing. This is when returning a quality product.

The seller’s income is reduced by the cost of the product; if it is of poor quality, it is returned by the buyer, and the seller himself works according to a simplified system. A reversal entry in the “Income” column is the most successful solution for displaying the operation.

Return of goods - civil law

You can only return items that were actually delivered. A supply agreement is the main document regulating the transfer of goods from suppliers to buyers and back. If the delivered goods do not satisfy at least one of the buyer’s requirements, the latter may refuse the purchase. Returning goods is one of the possible forms of refusal.

Regular customers and product returns

Not only organizations, but also ordinary customers face the problem of returning goods. The Civil Code of the Russian Federation says that such a claim can be sent either before the expiration of the warranty period or throughout the entire service life.

If we talk about technology, in this case the maximum possible period is 15 days, but at the same time, there can be no talk of any discounts. Once this period has passed, the product can only be returned if a truly significant defect is identified.

Sellers, for their part, are obliged to fulfill buyers’ requirements no more than 10 days after receipt of the claim. You must return the same amount as the cost of the product on the day of registration and response to the claim.

Buyers should only put their demands in writing because often sellers will try to avoid payment by any means possible.

As a small conclusion

Clear interaction between the two parties involved in the transaction, coordinated actions - this is what is important in this situation. Regardless of why exactly the product had to be returned. Only in this case can you not be afraid of negative tax consequences for everyone.

In this article we will look at how to return a product. Let's consider accounting for the return of goods from the supplier and the buyer, and what entries are made for both parties.

Return of goods to the supplier from the buyer. Decor

Often, in practice, organizations are faced with the return of goods, that is, their movement from buyer to seller. There can be many reasons for this; they are described in detail in the Civil Code of the Russian Federation:

• the buyer did not receive the necessary documents related to the goods (Article 464);
• upon receipt, the goods turned out to be less than indicated in the documents (clause 1 of Article 466);
• the assortment does not correspond to the documents (clause 1 of Article 468);
• goods of inadequate quality (clause 2 of Article 475);
• the goods are not properly packaged and delivered without the necessary containers (clause 2 of Article 482).

When the goods are transferred from the seller to the buyer, the ownership of this goods passes to the buyer, who, for the reasons stated above, has the right to refuse it and return everything to the seller. If any violations are detected, the buyer draws up and attaches it and sends it to the seller.

In the accounting of the seller (supplier), the return is accompanied by reversal (cancellation) of the sale. Let's look at seller accounting as an example.

Example of returning goods from a buyer

Postings when returning goods from the buyer:

It is worth noting here that in this example, account 76 “Settlements with various debtors, creditors” was additionally entered, this is due to the fact that payment was received from the buyer for the goods. After the reversal, an account payable arose to the buyer, and the buyer himself moved from the category of “buyers” to the category of “creditors.” In this regard, we are introducing an additional account 76, specifically intended for settlements with creditors; we transfer accounts payable to this account. After the seller returns the money to the buyer, the debt will be paid off and account 76 will be reset to zero.

If there is no payment from the buyer, then there will be no need for invoice 76, in which case there is no need to enter it.

Registration of goods return to the supplier

Above, we looked at the situation when a return comes from the buyer, and we looked at the transactions that reflect the seller’s accounting.

Now let's look at how the buyer accounts for the return of improper goods to the supplier. Let's consider the above example again: The buyer received goods from the supplier in the amount of 11,800 rubles. (including VAT 1800 rubles), paid for the goods, and then returned them in full to the seller.

Postings for returning goods to the supplier

Similarly, additional account 76 “Settlements with various debtors, creditors” is introduced, which transfers the seller from suppliers to the category of debtors. After the supplier returns money for the goods according to the claim, this account is reset to zero.

The example discussed above is relevant if the product is returned due to the reasons specified at the beginning of the article, that is, when the product is of inadequate quality and does not correspond to the attached documents.

Resale of goods to the supplier

Another situation is possible. The purchase and sale agreement may contain a clause under which the buyer has the right to return the goods, for example, in a month, if he does not sell it. In this case, the return of the goods is not processed by reversal; the buyer formalizes a reverse sale, that is, acts as a seller and sells the unsold goods to the supplier at the purchase price.

For the buyer, this sale is formalized in the traditional way. The supplier's postings will look like this:

This product return scheme, of course, is not beneficial to the supplier. After all, a batch of goods is disposed of at one price, but is returned at a higher price (in our example, the cost of 8,000 rubles was written off from account 41, and this product was already received back to the warehouse at 10,000 rubles).

Accounting for settlements with suppliers and contractors (postings, account 60).

In accordance with the Civil Code of the Russian Federation, the buyer can return the goods to the seller. At the same time, the procedure for recording such transactions in accounting will depend on a number of conditions (in particular, whether a high-quality product is returned or a low-quality one, etc.). L.P. tells how to process a refund in accounting and tax accounting, taking into account the latest clarifications of the Russian Ministry of Finance. Fomicheva, auditor, member of the Chamber of Tax Consultants of the Russian Federation.

Legal basis for returning goods

The goods may be returned by the buyer to the seller for various reasons. In accordance with current legislation, two options are possible:

• the product is returned due to the fact that it does not meet the requirements specified in the contract (poor quality or does not correspond to what was ordered);
• high-quality goods are returned by mutual agreement of the parties (for example, if the parties do not want to draw up a commission agreement, and further sale of the goods is not possible or does not give the intended effect).

Article 484 of the Civil Code of the Russian Federation determines that the buyer is obliged to accept the goods transferred to him. Exceptions when the buyer has the right to demand replacement of the goods or refuse to fulfill the sales contract are, in particular, provided for in Article 475 of the Civil Code of the Russian Federation - fatal defects are found in the goods.

Inadequate quality may be detected by the buyer during the process of posting the goods, after they have been posted, or during further sales. According to civil law, the seller is responsible for defects in the goods if the buyer proves that these defects arose before the transfer of the goods to the buyer or for reasons that arose before that moment (Article 476 of the Civil Code of the Russian Federation). If a quality guarantee was issued for the product, the seller is responsible for the defects unless it is proven that they arose due to the buyer’s violation of the rules for using the product, its storage, the actions of third parties, or force majeure.

If the buyer bought a quality product and the supplier duly fulfilled its obligations under the supply contract, then the buyer has no reason to refuse part of the goods and return it to the supplier. For this reason, the parties may agree on a new relationship governed by the return delivery agreement. The parties will switch places: the buyer will act as the seller of the goods he owns, and the former seller will act as the buyer of this goods. That is, in fact, a new supply agreement will arise between the parties. Accordingly, the buyer's return of goods will be reflected in accounting as a regular sale. And the former supplier of the returned goods, having the invoice of the former buyer, after the arrival of the returned goods will be able to accept the “input” VAT for deduction.

The position of “reverse implementation” is supported by the Ministry of Finance of Russia (letters dated March 21, 2005 No. 03-04-11/60, dated March 23, 2007 No. MM-6-03/233), the Department of Tax Administration of Russia for Moscow (letter dated March 18, 2003 No. 24-11/14735). The reason for this is the desire to see the supplier's invoice as the only document that can be recorded in the purchase ledger. Financiers and tax authorities do not want to directly acknowledge the shortcomings of legislators regarding the impossibility of drawing up an invoice for returned defects.

However, “reverse sales” are not always beneficial for the former supplier due to problems not with VAT, but with the calculation of income tax. It is necessary to capitalize previously sold goods (products) at the sales price (sales), which creates accounting difficulties. In addition, the supplier cannot withdraw "unrealized profits" on which taxes have already been paid.

Documentation of the return of goods...

The return of goods to the supplier if a defect is detected during the sales process, if the goods do not comply with the standard or agreed sample in terms of quality, or if the goods are incomplete, is carried out by issuing an invoice (clause 2.1.9 of the Methodological recommendations for accounting and registration of operations for the receipt, storage and release of goods in trade organizations, approved by letter of Roskomtorg dated July 10, 1996 No. 1-794/32-5).

The invoice is drawn up according to the unified form TORG-12 (approved by Resolution of the State Statistics Committee of Russia dated December 25, 1998 No. 132) indicating, for example, the text “Invoice for the return of low-quality (incomplete) goods.” In addition, it must contain a link to the details of the act declaring the product to be of poor quality. This is an act of a unified form No. TORG-2 or TORG-3 (approved by Resolution of the State Statistics Committee of Russia dated December 25, 1998 No. 132). An act in form No. TORG-2 is drawn up for domestic goods, and in form No. TORG-3 - for imported goods. The acts are drawn up upon initial acceptance of the goods by the buyer and are the legal basis for filing a claim with the supplier. Acceptance of goods returned by a retail buyer is documented with a consignment note (form No. TORG-12) in 2 copies. One copy is attached to the product report, and the other is handed to the buyer and is the basis for exchanging goods or receiving a sum of money for this product (clause 10.3 of the Methodological recommendations for accounting and registration of operations for receiving, storing and releasing goods in trade organizations approved by a letter from Roskomtorg of Russia dated July 10, 1996 No. 1-794/32-5).

The processing of a refund depends on whether the goods are returned on the day of purchase or later (i.e. after the end of the shift and the Z-report is taken from the cash register). The differences are due to the fact that in the first case, the buyer’s money is issued from the operating cash register, and in the second case, from the main cash register.

...on the day of purchase

In accordance with Section IV of the Standard Rules for the operation of cash registers when making cash settlements with the population, approved by letter of the Ministry of Finance of Russia dated August 30, 1993 No. 104, the refund of the amount of money is made from the store's operating cash desk using a cash register receipt issued at this cash desk. In this case, the check must bear the signature of the head of the organization (or his deputy).

For the amount of the refund, an act is drawn up in form KM-3, approved by Decree of the State Statistics Committee of Russia dated December 25, 1998 No. 132. This act is drawn up in one copy by a commission consisting of the head of the commodity department (section), a senior cashier and a cashier-operator. Cash receipts accepted from the buyer and canceled are pasted onto a sheet of paper and, together with the above act, are submitted to the accounting department for the cash report.

Amounts of money paid on cash receipts returned to customers are reflected in column 16 of the Cashier-Operator Book. The total of this column reduces the amount of revenue received by the trading organization for a given day.

If the buyer presents a cash receipt containing several items of goods, the trade organization may give the buyer a copy of the receipt certified by the administration of the organization in return.

The fact that this procedure for preparing documents is currently accepted by the tax authorities is indicated in the letter of the Federal Tax Service of Russia for Moscow dated 06/08/2006 No. 22-12/49655.

It is more logical to reflect the return of money to the buyer in a separate section, thereby organizing analytical accounting using a cash register so that you can always fill out the Sales Book correctly.

... not on the day of purchase

If the money for the goods is not returned on the day of purchase, and also if the cash receipt is lost by the buyer, then you should be guided by the Procedure for conducting cash transactions in the Russian Federation, approved by the decision of the Board of Directors of the Central Bank of the Russian Federation dated September 22, 1993 No. 40. In this case, the refund is carried out only from the main cash register according to a cash receipt order (form No. KO-2) based on a written application from the buyer upon presentation of an identification document. The same procedure is provided for in the Methodological Recommendations.

The application for a refund is drawn up by the buyer in any form.

• acceptance of “old” goods;
• implementation of the new.

The buyer may not demand a refund, but will want to exchange the product for a quality one or one more suitable for him. We will consider further how to formalize this operation in accounting.

Value added tax in case of returning goods...

...from the seller

Sales, in accordance with paragraph 1 of Article 39 of the Tax Code of the Russian Federation, means the transfer of ownership of goods on a reimbursable basis, as well as in some cases on a gratuitous basis. The return of low-quality goods within the meaning of paragraph 1 of Article 39 of the Tax Code of the Russian Federation should not be recognized as a sale, including for the purposes of calculating VAT. This conclusion is confirmed by the presence of special provisions of paragraph 5 of Article 171 and paragraph 4 of Article 172 of the Tax Code of the Russian Federation, which provide for the specifics of the seller’s application of VAT deductions in cases of return of goods or refusal of them. The possibility of applying this procedure when returning goods is not determined by the Tax Code of the Russian Federation depending on whether or not a transfer of ownership has occurred.

In accordance with Articles 171, 172 of the Tax Code of the Russian Federation, when returning or refusing goods, the seller has the right to a deduction. You can receive it within one year from the moment the relevant adjustments are reflected in the accounts.

How exactly to make these adjustments and what to adjust is not stated in the text of Article 172 of the Tax Code of the Russian Federation. This can be considered as adjustments to previous sales and a reflection of the fact of the return of goods. The fact that upon return the data previously reflected in the accounting accounts of sales transactions and VAT amounts is adjusted is stated in the letter of the Department of the Ministry of Taxes and Taxes for Moscow dated October 16, 2003 No. 24-11/58268. It also confirms that when returning a defective product, the buyer may not issue invoices, but register the documents received in the purchase book only regarding the quality goods.

This provision was also confirmed in the letter of the Department of Tax Administration of Russia for the Moscow Region dated October 29, 2003 No. 06-21/18752/sch931.

To implement the provisions of paragraph 5 of Article 171 of the Tax Code of the Russian Federation in the VAT return, the form of which was approved by order of the Ministry of Finance of Russia dated November 7, 2006 No. 136n, a special line 320 is provided in section 3 “Tax deductions”. A similar line 270 was provided in the previous tax return , the form of which was approved by order of the Ministry of Finance of Russia dated December 28, 2005 No. 163n. This is a completely separate line of the declaration; it shows deductions for the return of goods and advances upon termination of the contract by the parties (clause 5 of Article 171 of the Tax Code of the Russian Federation). There is no provision for any adjustment to previously recorded sales revenue when returning defective goods in the tax return.

Judging by the period allowed by law to reflect the deduction, the legislator introduced a one-year limit only in relation to the moment of the buyer’s refusal or return of the goods. Moreover, both facts are named as equivalent.

The movement of invoices is regulated by Decree of the Government of the Russian Federation dated December 2, 2000 No. 914 (hereinafter referred to as Decree No. 914).

Of the operations named in paragraph 5 of Article 171 of the Tax Code of the Russian Federation, only operations for the return of advances are regulated in paragraph 13 of Resolution No. 914.

Since paragraph 5 of Article 171 of the Tax Code of the Russian Federation regulates both the return of an advance payment and the return of low-quality goods, there should be no differences in the accounting of the two operations. There must be a deduction and it is recorded in the purchase ledger within a year of the adjusting entries.

However, there is one difference between these two operations. An invoice was issued for the advance payment received, and it is this that is recorded by the seller in the purchase book upon termination of the contract. And Resolution No. 914 does not say what to register in the purchase book when returning goods.

The basis for deductions in paragraph 1 of Article 172 of the Tax Code is invoices. In special cases named in paragraphs 3, 6-8 of Article 171 of the Tax Code of the Russian Federation, deductions are possible on the basis of other documents, but paragraph 5 of Article 171 of the Tax Code of the Russian Federation is not included in such cases. For this reason, when returning goods, both the tax authorities and the Ministry of Finance want to see the buyer's invoice for the returned goods. But when returning low-quality, incomplete goods, an invoice cannot be issued, since the buyer does not have sales.

For this reason, the seller has no choice but to register his old invoice, previously issued for the sale of goods, including those that do not comply with the terms of the supply agreement, as the basis for the deduction.

The Ministry of Finance of Russia, in letter dated 02/11/2000 No. 04-03-03, recognized that a corrective entry in the sales book (at that time adjustments were made like this) of the seller for the purpose of reducing the amount of VAT payable to the budget can be made:

• both on the basis of primary documents received from the buyer (for example, invoices), and on the basis of the invoice issued by the buyer for the returned goods;
• based on the note on the return of goods made by the buyer in the invoice received from the seller and returned to the seller along with the goods.

Particular attention was drawn in the letter to the fact that the refund to the seller of VAT previously paid to the budget on shipped goods is made only if the returned goods are recorded in the accounting records.

In addition, the Russian Ministry of Finance recognized the possibility of making adjustments to the transaction to the seller by indicating the original invoice in the event that the goods are returned by a VAT non-payer. For this reason, the defaulter cannot issue an invoice for “reverse sales” (see letters of the Ministry of Finance of Russia dated July 14, 2005 No. 03-04-11/162, dated October 3, 2005 No. 03-04-14/18). The Department of Tax Administration for Moscow, in a letter dated November 27, 2003 No. 24-11/66327, recognized such an adjustment also for the situation when the goods are returned by an individual and receives money in return from the seller.

From the above, we conclude that as a basis for a deduction, the seller of low-quality, incomplete returned goods may well indicate in his purchase book his own invoice for a previously completed sale.

The Russian Ministry of Finance spoke on this matter in letter dated 03/07/2007 No. 03-07-15/29. In paragraph 2 of this letter, the financiers acknowledged that if the buyer did not register the goods, the seller makes a deduction by amending the invoice previously issued upon shipment.

The procedure for making corrections is established by paragraph 29 of Resolution No. 914. The Ministry of Finance of Russia has already proposed a way to correct a previously issued invoice in a number of letters, for example, in letter dated July 14, 2005 No. 03-04-11/162. Just how exactly the corrections should be made was not previously indicated.

The letter dated 03/07/2007 No. 03-07-15/29 indicates the procedure for making corrections to the invoice. The quantity and cost of shipped goods are adjusted (if a partial return is made). At the same time, the Ministry of Finance advises to additionally indicate the quantity and cost of returned goods in the invoice. The corrected invoice is signed and certified by the seller's seal indicating the date of the corrections. The date of the corrected document must coincide with the date of acceptance for registration of the goods returned by the buyer.

The letter provides a specific example of this operation. We will correct it by adding the seller’s data.

Example 1

The seller LLC "Plaza" shipped to the buyer on January 8, 2007 a batch of goods in the amount of 100 units. with a total cost of 1,180 rubles, including VAT - 180 rubles. and issued invoice No. 5.
From this batch of goods on February 22, 2007, 30 units of goods worth 354 rubles. including VAT - 54 rub. returned to seller. The tax period for the seller is a calendar month.

In this case, the invoice issued by the seller upon shipment of goods for 100 units. and registered by him in the sales book in the tax period for January 2007, should be registered in the seller’s purchase book for the cost of the returned goods in quantity 30 units. The seller must indicate himself as the buyer, and the basis for the deduction must be the previous shipping document.

If the buyer returns the entire batch of goods, that is, 100 units indicated in the invoice registered by the seller in the sales book in accordance with the established procedure, the cost of goods accepted for registration in the amount of 100 units returned is indicated in columns 7-8b of the seller's purchase book buyer, and the corresponding amount of VAT. In other words, in case of 100% return of goods not received by the buyer (for example, due to defects), it is necessary to completely repeat the details of the shipment document in the purchase book.

And paragraph 3 of this letter explains how to process the return of goods to the seller by individuals and other persons who are not VAT payers. The latter refers to persons applying special tax regimes.

In this case, the transaction must be completed in the same way, regardless of whether the goods are accepted or not registered by persons who are not VAT payers. That is, the buyer registers his previous invoice in the purchase book in full or in part, depending on the volume of the goods returned.

The issue of returning goods sold in retail trade using cash register equipment and issuing a check to an individual or other persons who are not VAT taxpayers without issuing invoices to the buyer was specially considered. In the seller's purchase book, it is recommended to register the details of the cash receipt issued when returning funds to the buyer, provided there are documents confirming the acceptance and registration of the returned goods. In this case, registration of documents in the seller’s purchase book is made on the date of acceptance of the returned goods for registration. Thus, on the date of registration of TORG-12 by a retail store to accept returned goods, the purchase book must indicate the details of the cash receipt order according to which the buyer received money for the returned goods.

Thus, a reasonable, legally established approach triumphed. And the taxpayer-buyer will no longer listen to the demands of tax inspectors to resubmit tax returns for the previous period due to the reflection of the return in an additional sheet to the sales book of the tax period in which the initial sale took place.

The return of goods should be processed as a reverse sale only if the buyer has received the goods, accepted them for accounting, and then returns them to the former seller. The financial department once again confirmed this position in letter No. 03-07-1529 dated 03/07/2007.

In this case, the procedure specified in paragraph 16 of Resolution No. 914 is used and the buyer registers invoices issued to him when returning goods accepted for registration in the sales book. This procedure is established by paragraph 3 of Article 168 of the Tax Code of the Russian Federation. An invoice received by the seller of goods from the buyer is subject to registration in the purchase book as the right to tax deductions arises in the manner established by Article 172 of the Tax Code of the Russian Federation.

Should the former seller, having received the defective goods, restore the “input” VAT on the costs of purchasing or producing defective goods and products?

Losses from defects for profit tax purposes are classified as other expenses that are associated with production and sales (subclause 47, clause 1, article 264 of the Tax Code of the Russian Federation). Consequently, despite the fact that part of the acquired values, works, and services was used in the production of defective products, the deduction was made by the organization lawfully and the organization is not obliged to restore the amounts of “input” VAT accepted for deduction on defective costs. Of course, the question will arise about the economic justification of marriage (Article 252 of the Tax Code of the Russian Federation). For this reason, subparagraph 47 of paragraph 1 of Article 264 of the Tax Code of the Russian Federation is usually used by manufacturers, but not by trade organizations.

Trade organizations, using Articles 518, 475 of the Civil Code of the Russian Federation, file a claim with the supplier of defective goods. The claim includes all losses of the buyer, including VAT paid to the supplier and losses for the return of products (clause 7 of the Temporary Methodology for determining the amount of damage (losses) caused by violations of business contracts, communicated by letter of the USSR State Arbitration Court dated December 28, 1990 No. S-12/NA -225).

In letter dated 03/07/2007 No. 03-07-15/29, the Ministry of Finance also addressed this issue. Paragraph 4 of the letter is devoted to adjusting the deductions of the taxpayer-seller. Financiers insist on their position, which they have always expressed.

If the goods returned to the seller are not subsequently used by him to carry out operations recognized as objects of taxation, then the amounts of tax accepted for deduction when purchasing goods used for the production and (or) sale of returned goods are subject to restoration and payment to the budget. Restoration is carried out in the tax period in which the returned goods were accepted for accounting by the seller. In this case, the registration of invoices in the sales book when the specified tax amounts are restored is carried out in the manner established by paragraph 16 of Resolution No. 914. In other words, although the cost of a justified defect is taken into account when calculating income tax, it does not lead to the occurrence of VAT-taxable transactions reason for non-participation in further implementation. This means that the tax authorities will demand the restoration of “input” VAT on expenses that form a write-off irreparable defect.

... from the buyer

Unfortunately, neither the Tax Code of the Russian Federation nor Resolution No. 914 provide special procedures for the buyer to account for VAT when returning low-quality goods to the supplier. Perhaps the legislators did this on purpose, since the ownership of a low-quality product does not pass to the buyer.

The buyer has two options:

• or issues an invoice for the return and then reflects the sales transaction, which is not applicable when returning a defective product (why - see above);
• or issues only an invoice for the return of defects and, on its basis, adjusts the VAT previously accepted for deduction, if the operation took place. In this case, the tax authorities may be inclined to require filling out an additional sheet to the purchase book for the previous period when VAT was accepted for deduction.

Direct return of defective goods does not fall under the cases of VAT recovery listed in paragraphs 2 and 3 of Article 170 of the Tax Code of the Russian Federation. However, the Federal Tax Service of Russia announced the need to restore the tax when exchanging property with a hidden defect in a letter dated 08/09/2006 No. ШТ-6-03/786@ with reference to a letter dated 05/10/2006 No. 03-4-03/892. Letter No. 03-4-03/892 addressed the situation with VAT paid at customs when importing equipment. During the operation of one of the imported machines, a hidden defect was discovered, and the machine was returned to the foreign supplier. In this situation, the Federal Tax Service of Russia recommended that the taxpayer, during the period of returning goods of inadequate quality to the supplier, restore for payment to the budget the amount of tax that was previously legally accepted for deduction, in part attributable to the returned defect.

No matter how controversial this position is, it is the only one possible for the buyer, the safest and the mirror of the deduction that will be shown by the former seller on the date of return of the goods.

No updated declarations for the previous period are submitted, and the restored tax is reflected on line 370 of section 2.1 of the VAT tax return (line 430 of the old declaration form). According to the explanations given by the Ministry of Finance of Russia in letter No. 03-04-09/22 dated November 16, 2006, the restored tax amount is reflected in the sales book.

However, in letter No. 03-07-15/29 of the Ministry of Finance of Russia dated 03/07/2007, another way of solving the situation when returning unreceived goods by the buyer is proposed. This approach is based on the deduction of VAT at the time of receipt of the goods. Capitalized - take it for deduction and reflect the sale upon return. If you haven’t capitalized it, don’t make a deduction. Let's consider how the data from the previous example will affect the buyer.

When returning an item, the buyer will receive a corrected invoice from the former seller on the return date. And in his purchase book he must reflect the deduction only for the goods received. But he does not have the right to a deduction for returned goods, including in a situation of 100% return.

Only the Ministry of Finance indicated that a deduction for capitalized goods is provided if there is an invoice corrected by the seller. And corrections are made on the date of return of the goods. And this is a loss for the buyer. After all, he could have received a deduction for the capitalized goods earlier. It seems that buyers with a large turnover of goods and operations to return defects will sue the tax authorities over this position.

Income tax when returning goods

If the seller reverses previously occurring sales transactions, he can reduce taxable income for income tax purposes by the amount of profit not actually received (due to the return of defects). The fact that the seller in such a situation can submit an updated income tax return for the period when the initial sale was reflected is stated in the letter of the Department of Taxation of Russia for the Moscow Region dated October 29, 2003 No. 06-21/18752/sch931.

However, let us recall that in accordance with Article 81 of the Tax Code of the Russian Federation (as amended by Federal Law No. 137-FZ of July 27, 2006), filing an updated declaration is the right of the taxpayer in a situation where there was no understatement of the amount of income tax in the previous period.

Losses from defects are included in other expenses associated with production and sales (subclause 47, clause 1, article 264 of the Tax Code of the Russian Federation). These costs may be recognized by the manufacturer as indirect or direct (Article 318 of the Tax Code of the Russian Federation) to the extent not reimbursed by the person responsible for the defect (Article 252 of the Tax Code of the Russian Federation).

Claims submitted to suppliers of components and recognized by them are reflected by the taxpayer as part of non-operating income (clause 3 of Article 250 of the Tax Code of the Russian Federation). When applying the accrual method, they are taken into account in the reporting period in which the claims were recognized by the debtor or on the date the court decision entered into legal force (subparagraph 4 of paragraph 4 of Article 271 of the Tax Code of the Russian Federation). A similar position was confirmed in the letter of the Ministry of Finance of Russia dated January 19, 2007 No. 03-03-06/1/16.

Accounting for product returns

Paragraph 4 of the letter of the Ministry of Finance of Russia dated November 12, 1996 No. 96 explained that if the buyer (customer) returns the product (without replacing it), the data previously reflected in the sales accounts and accounts of settlements with customers and the budget must be clarified (corrections are made records). This position was also supported by representatives of the tax authorities (clause 4 of the letter of the State Tax Service of Russia dated June 17, 1994 No. VG-6-01/213 and the Department of the Ministry of Taxes for Moscow dated October 16, 2003 No. 24-11/58268).

Correction of sales data by the seller can be made using the “reversal” method on the date the error was discovered (clause 11 of the Instructions on the procedure for drawing up and presenting financial statements, approved by order of the Ministry of Finance of Russia dated July 22, 2003 No. 67n).

When returning money to the buyer

Let's consider an example of reflecting in the seller's accounting an operation to return a defective product, which is not recognized by the buyer as a “return” sale.

Example 2

Organization "Alpha" on June 25, 2007 shipped goods worth 118,000 rubles. (including VAT 18,000 rubles) to the Beta organization under a purchase and sale agreement. The cost of the shipped goods is 80,000 rubles.
Organization Beta notified Alpha on July 4, 2007 that the product was defective and must be returned.
On July 15, 2007, the goods were returned to the Alpha organization and on the same day the seller transferred money to it.

In accounting, this can be reflected in the following order - see table. 1.

Table 1

Note:
* Separately, we would like to draw the attention of readers to this wiring. According to the economic essence of the operation, it should be performed using the red turn method. But tax authorities often interpret reversals as the need to file an updated return.

In this example, you can see the time gap between the date the buyer was notified of the refusal of the goods and the date of the actual return of the goods. The actual return of the goods to the warehouse and the signature of the person responsible may not coincide with the date of the return notification. It is for this reason that, in the author’s opinion, it is necessary to use the “Goods in transit” subaccount.

When should you record the deduction in this case? The text of paragraph 5 of Article 171 of the Tax Code of the Russian Federation allows a deduction on the date of refusal by the buyer and on the date of receipt of the goods. Since the Russian Ministry of Finance has repeatedly emphasized the obligation of capitalization, it is prudent not to violate this rule.

However, what is capitalization as a necessary condition for deduction? Is it the arrival at the warehouse and the signature of the materially responsible person on the receipt documents, or the receipt of goods at the moment of transfer of ownership of it? After all, goods in transit or goods owned by the seller, but located in the buyer’s warehouse, are still reflected in the balance sheet (capitalized).

Failure to show adjusting entries as of the date the buyer received the claim is incorrect.

Since this issue is not resolved in accounting, it is more prudent to make the deduction on the date of actual receipt of the returned goods at the warehouse of the former seller. Actually, this position was confirmed in the letter of the Ministry of Finance of Russia dated 03/07/2007 No. 03-07-15/29.

When reflecting the return of defective goods on July 15, the seller will deduct the amount of VAT on the returned goods on the basis of paragraph 5 of Article 171 of the Tax Code of the Russian Federation and will reflect line 320 of Section 3 “Tax Deductions” in the tax return as a deduction. The basis for the deduction will be the registration on July 15 in the purchase book of the invoice dated June 25, 2007 (initial sale). If the cost of the defective goods is less than the sales amount, you need to reflect the deduction in the proportion corresponding to the cost of the defective goods.

Reversal entries on account 90 when returning low-quality goods are made if the sale and return of the goods occurred in the same year. If the return is made by the buyer in the year following the sale, account 91 “Other income and expenses” is used and the transaction is reflected as losses from the previous year identified in the current year.

Replacing a defective product with a quality one...

If defects are detected, the consumer has the right to demand replacement of the product both with a product of a similar brand (model, article) and with the same product of a different brand (model, article).

The replacement of the product must be made within seven days from the date the consumer submits the request, and if additional verification of the quality of the product is necessary, within 20 days. If at the time of submitting a request for replacement the seller does not have the required product, the product will be replaced within a month.

In this case, the consumer, upon his request, must be provided with a similar durable product free of charge (with delivery) for the replacement period.

However, in relation to technically complex and expensive goods, the requirement for replacement is subject to satisfaction only if significant defects in the goods are discovered.

If a dispute arises between the seller and the consumer, the question of whether the product is expensive or not is decided by the court, taking into account the specific circumstances of the case.

If the buyer exchanges the returned item for another, the seller actually performs two operations:

• acceptance of "old" goods,
• implementation of the new.

If the price of the returned goods is less, the buyer pays the required amount; if the returned goods are more expensive, then the buyer is refunded part of the money he previously paid.

But new realization does not always happen. For example, if a buyer exchanges one dress size for another size, or the exchanged goods are equal in value, then a simple exchange occurs with the registration of the movement of warehouse documents. The same can be said about the exchange of low-quality goods for similar high-quality ones.

... to a similar one

When registering and recording operations for the receipt and exchange of low-quality goods, it is necessary to be guided by the Methodological Recommendations for accounting and registration of operations for the reception, storage and release of goods in trade organizations, approved. by letter of Roskomtorg of Russia dated July 10, 1996 No. 1-794/32-5 (hereinafter referred to as the Methodological Recommendations).

If the seller replaces a low-quality product with a high-quality product of a similar brand (for example, a different size), then the price of the product (sales) is not recalculated, therefore, questions about the reflection of this operation in accounting will not arise.

This is indicated by the Russian Ministry of Finance in letter No. 96 dated November 12, 1996, which states that corrective entries are made if there was no replacement of the goods. The operation of replacing a product returned by the buyer with a quality product of the same value can be reflected in the corresponding subaccounts of account 41 “Goods”, for example:

Debit 41 subaccount "Goods of poor quality" Credit 41 subaccount "Retail goods"

It is possible to use the account correspondence scheme specified in tables 4.4 and 10.1 of the Methodological Recommendations. We present it adjusted to the new chart of accounts - see table 2.

table 2

There are also entries for adjusting the trade margin if the product is accounted for at its selling price.

For VAT, nothing changes; the VAT previously paid on revenue is not adjusted, and since no new product has been sold, VAT is not charged on its sales price.

Nothing changes for the purposes of calculating income tax.

… another

When replacing a product of inadequate quality with a product of a different brand or model, a difference in their value may arise, which is either paid additionally by the buyer or returned to him.

In accounting, such a replacement can be reflected in the following way: first reverse the previously recorded revenue, then, after the product is replaced, show sales again.

There is no need to update previously filed VAT returns. The return of defective goods will be shown in the current declaration on line 320 (deduction), and the sale of quality goods will be shown in the usual manner.

The Ministry of Finance of Russia, in letter No. 04-02-05/1 dated April 28, 2000, regarding this transaction, approved the reflection in accounting of the difference in the sales price (by additional accrual or reversal). In this case, the transaction will be shown collapsed in the tax return, which is not very convenient and may cause criticism during the audit.

We return the defect to the supplier ourselves

The buyer may discover a defect after receiving the goods at the warehouse (for example, when preparing a batch of goods for sale to another buyer) or after selling the goods to another buyer. In this case, the buyer must send a notification or claim to the supplier about identified defects in the quality of the goods.

The correspondence scheme for accounts for accounting for substandard goods returned by customers is indicated in tables 4.4 and 10.1 of the Methodological Recommendations. We present it adjusted to the new chart of accounts - see Table 3.

Table 3

Note:
* It makes more sense to allocate low-quality goods in a separate subaccount to account 41, for example, “Defective goods” (author’s note).

You can reflect these transactions not by the fact of shipment, but by the fact of filing a claim. In this case, the goods must be capitalized in off-balance sheet account 002. When the defect is shipped to the supplier, this account is credited.

As we have already said in the VAT section, on the date of the return of the defect or the filing of a claim, the VAT previously accepted for deduction can be restored by an accounting entry:

Debit 76-2 Credit 68 - VAT on returned defective goods has been restored.