The procedure for calculating the amount of VAT payable to the budget
When a taxpayer carries out transactions subject to different VAT rates (for example, 0%, 10% and 20%), the amount of tax paid to the budget is determined as follows:
Step 1. Determine the tax base separately for each rate
The tax base is calculated separately for each type of transaction based on the tax rate. For example:
- Transactions subject to a 0% tax rate — exports of goods or services of an international nature.
- Transactions subject to a 10% tax rate are the sale of food, children's goods, medicines and medical products.
- Transactions subject to a 20% tax rate — other goods and services.
The amount of tax on the transactions of each group is calculated by multiplying the tax base by the corresponding tax rate.
Step 2. Accounting for the tax deduction ("incoming") tax
For tax deduction purposes, the total amount of VAT paid to suppliers upon purchase of goods (works, services) is taken into account. However, since the company carries out different types of operations, the principle of separate accounting applies. The incoming tax is distributed among the types of transactions subject to different rates.
The specifics of accounting for incoming taxes at different rates
The special feature is the distribution of the total amount of incoming taxes between transactions subject to different rates. For this purpose, the method of proportions is used, also called the cost allocation method.
The calculation is performed using the formula:
Deductions at a specific rate = The share of revenue at the corresponding rate/Total taxable revenue× Total tax deduction
Where:
- The share of revenue at the appropriate rate is the amount of product sales at a certain rate relative to total sales.
- Total taxable revenue is the total amount of sales of all types of products subject to taxation.
- Total tax deduction — the entire amount of VAT paid by suppliers.
Example of the situation: The company is engaged in the production of baby food (10% rate) and confectionery (20% rate). During the reporting period, the sales volume amounted to:
- Baby food — 8 million rubles,
- Confectionery products — 12 million rubles.
In total, the total taxable revenue amounted to 20 million rubles. The total amount of incoming VAT paid by the supplier is 3 million rubles. Then the calculation of the share of incoming tax for each group looks like this:
Deduction for baby food = 8/20×3 000 000 = 1 200 000 rubles
Confectionery deduction = 12/20×3 000 000 = 1 800 000 rubles
A practical example of the application of the method of proportional division of tax deductions
Consider the situation with a medical equipment manufacturer that sells products both domestically (10% tax rate) and exports them (0% tax rate).Suppose an enterprise has purchased raw materials and components totaling 10 million rubles, including the supplier's VAT in the amount of 2 million rubles. Product sales amounted to:
- Exports (0%) — 30 million rubles,
- Internal sales (10%) — 20 million rubles.
The proportion method assumes a distribution of the following type:
Export share (0%) = 30/50 = 0.6
Domestic sales share (10%) = 20/50 = 0.4
Then the tax deductions will be:
Export deduction = 0.6×2 000 000 = 1 200 000 rubles
Deduction for internal sales = 0.4×2,000,000 = 800,000 rubles
This approach allows you to avoid double taxation and ensure a fair refund of the tax paid to the supplier.
