IP on OSNO in 2018: accounting, reporting
In this article you will learn:
how does an entrepreneur keep records on the traditional general taxation system (hereinafter referred to as the “Basic Taxation System”);
how are the income and expenses of the merchant on the OSNA taken into account;
how to report to a businessman on an OSNO on his activities.Entrepreneurs use the traditional general system of taxation for a reason.
The determining factors for choosing such a system are not only the businessman’s turnover, which may go beyond the limits of special tax regimes, but also the business sector in which the businessman works. So, in the B2b market, the competing value, all other things being equal, in the quality of the goods (work, service) is the value of the price. The last businessmen with the traditional tax system are determined taking into account indirect tax (VAT). That is, the tax that is presented as part of the price to the buyer. A commercial buyer, under certain conditions, is entitled to a guaranteed deduction amount in the amount of the indirect tax rate (VAT).
It is also beneficial for businessmen who work for export or use exemption from VAT to apply the traditional taxation system. The former, for example, use the same amount of VAT deduction as a tax planning tool. And the second (exempted from VAT) simply pay a lower income tax (13%), compared to the simplified tax system at a rate of 15 percent. And the list of expenses that reduce the personal income tax base is expanded and is determined according to the rules of Chapter 25 of the Tax Code of the Russian Federation (income tax). While on the simplified tax system, the list of costs that reduce the single tax base is strictly regulated.
Rules for accounting for IP transactions applying OSNO
Regardless of which system the entrepreneur uses, he is exempted from accounting if he keeps records of income and expenses in the manner established by tax legislation. Such rules are established in article 6 of Law No. 402-FZ On Accounting.
Entrepreneurs on the traditional taxation system keep records of income and expenses and business transactions according to the rules established in the distant 2002. So, during this period, the Order of the Ministry of Finance of Russia No. 86n and the Ministry of Taxes and Duties of the Russian Federation No. BG-3-04 / 430 of August 13, 2002 (with amendments and additions) was created and is still in force.
It is according to the rules of this document that a businessman keeps records of transactions in a special book of income and expenses.
On a note! The author of the article is often asked questions about the need for an Order on the accounting policy of an entrepreneur based on OSNO. Here, the Law and Chapter 23 of the Tax Code does not indicate directly the existence of such a document. However, do not forget that merchants on the general taxation system are VAT payers. And in the event that an entrepreneur carries out both taxable and tax-exempt operations, he must keep separate records thereof, the methodology of which is mandatory in the accounting policy.
No such operations? Then the accounting policy can not be created. But it should be noted that traditionally businessmen are often asked for such a document during tax audits. Therefore, the presence of an order on accounting policies will not be amiss.
So, the book of income and expenses is kept in the form established by Order of the Ministry of Finance of Russia No. 86n and the Ministry of Taxes and Duties of Russia No. BG-3-04 / 430. Clause 7 of this document expressly states that the merchant has the right to develop the form of a book of accounting for income and expenses. However, such a self-developed document should be agreed with the tax authority at the place of registration.
The book of accounting for income and expenses is kept in one copy. It makes no sense to duplicate data in similar documents and other tax accounting registers. But from the new tax period (year), the book must be opened with a new one.
By the way, this rule also applies if an individual entrepreneur conducts several types of activities on the OSNO. That is, all operations are reflected in only one book.
The book can be kept in an automated program – in electronic form or in paper. Although it is difficult to imagine now the automated process of business operations of IP on the OSNO with VAT.
If a merchant keeps an electronic book of records, then at the end of the year it is printed, numbered, stitched together with the number of pages indicated on the last sheet. Such a book should be certified by the tax authority with a seal.
Don’t keep a book? Then you violate tax laws. Such an offense is recognized as a gross violation of the rules for accounting for income, expenses and the object of taxation. The penalty for such an offense is provided for in Article 120 of the Tax Code of the Russian Federation.
All entries in the book of income and expenses should be made in chronological order. This must be done on the basis of primary documents. According to the primary documents, business operations and the corresponding income and expenses are introduced.