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Time of compensation of VAT amount when determining payments to the budget
Time of compensation of VAT amount when determining payments to the budget
The rules for calculating the offset VAT amounts when determining the taxpayer's payments to the budget are determined in accordance with Article 175.1.1 of the Tax Code. Specialist Nihad Samadov interprets this requirement of the legislation.
According to Article 175.1 of the Tax Code, unless otherwise provided for in this Article, the amount of VAT paid during the purchase of goods (works, services) for transactions subject to VAT shall be transferred from the buyer's bank and other payment account to the bank and bank of the person providing those goods (works, services). to another payment account, the VAT amount is offset when paid to the VAT deposit account. For the purposes of this article, bartering of goods (works, services), mutual compensation of financial obligations arising from the value of the goods (works, services) provided, or payment of the value of the transaction to the deposit account opened by the notary in the bank for transactions carried out through a deposit account, VAT of that transaction the value of which is equal to the payment to the bank and other payment account of the person providing the goods (works, services). The timing of the offset VAT is determined as follows:
- the time when the value of the goods (works, services) and the corresponding VAT amount are paid in full according to the received electronic invoice for transactions involving sending goods, performing work, or providing services considered to have been carried out during the reporting period.
Let's say that "A", a VAT payer, received services worth 1,416 manats including VAT from another VAT payer "T" in March. An electronic invoice was obtained in the month when the service was received, and 1,200 manats were transferred to the bank account and 216 manats were transferred to the VAT deposit account. Enterprise "A" sold goods worth 3,540 manat including VAT to enterprise "C" in March, and enterprise "C" made the payment in March. The amount of 216 manats should be deducted from the 540 manats liability of "A" enterprise for the month of March, and VAT in the amount of 324 manats should be transferred to the budget.
Example 1: VAT payer enterprise "A" purchased services worth 17,700 manats including VAT. For the service received, the seller submitted an electronic invoice in May 2024, and in the same month, 17,700 manats were paid by the enterprise without cash (15,000 manats to the bank account, and 2,700 manats to the VAT deposit account). In this case, the enterprise can offset the VAT amount of 2,700 manats in May.
Example 2: VAT payer enterprise "A" purchased services worth 17,700 manats including VAT. The seller submitted an electronic invoice for the service received in May 2024, and the full cost of the service was paid by the enterprise in cash in September (15,000 manats to the bank account and 2,700 manats to the VAT deposit account). In this case, the enterprise can offset the VAT amount of 2,700 manats in September.
Example 3: VAT payer enterprise "A" purchased services worth 17,700 manats including VAT. The full cost of the received service was paid in cashless manner in May 2024 (15,000 manats to the bank account, and 2,700 manats to the VAT deposit account). However, the seller submitted an electronic invoice in September. In this case, the enterprise can replace the VAT amount of 2,700 manats in September.
Example 4: VAT payer enterprise "A" purchased services worth 17,700 manats including VAT. The full cost of the received service was paid by the enterprise as an advance in April 2024 without cash (15,000 manats to the bank account, and 2,700 manats to the VAT deposit account). The seller submitted an electronic invoice on the day the service ended, that is, on September 14. In this case, the enterprise can replace the VAT amount of 2,700 manats in September.
The rules for calculating the offset VAT amounts when determining the taxpayer's payments to the budget are determined in accordance with Article 175.1.1 of the Tax Code. Specialist Nihad Samadov interprets this requirement of the legislation.
According to Article 175.1 of the Tax Code, unless otherwise provided for in this Article, the amount of VAT paid during the purchase of goods (works, services) for transactions subject to VAT shall be transferred from the buyer's bank and other payment account to the bank and bank of the person providing those goods (works, services). to another payment account, the VAT amount is offset when paid to the VAT deposit account. For the purposes of this article, bartering of goods (works, services), mutual compensation of financial obligations arising from the value of the goods (works, services) provided, or payment of the value of the transaction to the deposit account opened by the notary in the bank for transactions carried out through a deposit account, VAT of that transaction the value of which is equal to the payment to the bank and other payment account of the person providing the goods (works, services). The timing of the offset VAT is determined as follows:
- the time when the value of the goods (works, services) and the corresponding VAT amount are paid in full according to the received electronic invoice for transactions involving sending goods, performing work, or providing services considered to have been carried out during the reporting period.
Let's say that "A", a VAT payer, received services worth 1,416 manats including VAT from another VAT payer "T" in March. An electronic invoice was obtained in the month when the service was received, and 1,200 manats were transferred to the bank account and 216 manats were transferred to the VAT deposit account. Enterprise "A" sold goods worth 3,540 manat including VAT to enterprise "C" in March, and enterprise "C" made the payment in March. The amount of 216 manats should be deducted from the 540 manats liability of "A" enterprise for the month of March, and VAT in the amount of 324 manats should be transferred to the budget.
Example 1: VAT payer enterprise "A" purchased services worth 17,700 manats including VAT. For the service received, the seller submitted an electronic invoice in May 2024, and in the same month, 17,700 manats were paid by the enterprise without cash (15,000 manats to the bank account, and 2,700 manats to the VAT deposit account). In this case, the enterprise can offset the VAT amount of 2,700 manats in May.
Example 2: VAT payer enterprise "A" purchased services worth 17,700 manats including VAT. The seller submitted an electronic invoice for the service received in May 2024, and the full cost of the service was paid by the enterprise in cash in September (15,000 manats to the bank account and 2,700 manats to the VAT deposit account). In this case, the enterprise can offset the VAT amount of 2,700 manats in September.
Example 3: VAT payer enterprise "A" purchased services worth 17,700 manats including VAT. The full cost of the received service was paid in cashless manner in May 2024 (15,000 manats to the bank account, and 2,700 manats to the VAT deposit account). However, the seller submitted an electronic invoice in September. In this case, the enterprise can replace the VAT amount of 2,700 manats in September.
Example 4: VAT payer enterprise "A" purchased services worth 17,700 manats including VAT. The full cost of the received service was paid by the enterprise as an advance in April 2024 without cash (15,000 manats to the bank account, and 2,700 manats to the VAT deposit account). The seller submitted an electronic invoice on the day the service ended, that is, on September 14. In this case, the enterprise can replace the VAT amount of 2,700 manats in September.