Explanatory note on VAT deductions. How to correctly write an explanatory note to the tax office

In the event of claims from the tax inspectorate, it is often necessary to draw up a written response (using a sample) to its requirements with the provision of appropriate explanations. How to correctly compose such an answer in different cases, ready-made examples and step-by-step instructions are in this article.

When to Provide Explanations

First of all, it is important to understand that providing explanations is not always the employer’s responsibility. If the tax office has identified inconsistencies or errors, the organization must provide explanations only if they were found during a desk audit. The most common violations are:

• incorrect information in tax returns;
• inconsistencies in the data provided in one or more reporting documents;
• violations in transactions related to obtaining tax benefits (holidays, reduced rates);
• contradictions between the information provided by the taxpayer and the data available to the tax office.

Thus, a response to the tax authorities’ request to provide appropriate explanations (using the sample) is mandatory if a desk audit was carried out, which revealed violations. And in all other cases, providing written explanations is the right of the company. However, as experience shows, it is better to take care and send a letter to the inspection, since this often helps in conveying your position to the inspectors.

Practice shows that in most cases, explanations must be provided in connection with discrepancies regarding VAT and income tax.

Procedure for compilation

In general, the procedure goes as follows:

1. After a desk audit has been carried out, the tax office sends a request in the form of a paper letter or email. The text indicates data that, in the opinion of the inspectorate, was compiled incorrectly, as well as discrepancies in the information contained in different documents.
2. Then the taxpayer is obliged to provide his explanations as soon as possible - up to 5 working days. This period begins on the working day following the day of receipt of the notification.
3. You can send it either by mail (registered mail), by courier, or electronically. Moreover, in the case of an email, it is important to verify it using an electronic digital signature. If it has not been created, the only option left is to send it in regular paper form. It is also important to know that it is often necessary to provide documents with explanations along with the application itself. Then the text of the letter must indicate the attachments: the name of the document, quantity and type (original or copy) are written down.

NOTE. The legislation does not deprive the taxpayer of the right to provide his explanations orally. However, in order to be on the safe side (in case of possible litigation), it is better to put everything in writing, a copy of which must be kept with you (it is also better to print out and duplicate the electronic version).

How to compose: sample requirements

There is no approved form, so each company has the right to choose its own option. It is best to print it on a branded bank. And you can draw up a document according to the general rules:

1. The abbreviated name of the tax inspectorate is written in the “header” in the upper right corner (for example, “to the Interdistrict Inspectorate of the Federal Tax Service No. 19 for the Chelyabinsk Region”).
2. Under the information about the addressee, all data about the sender is written down: the letter is sent from a specific official (usually the director of a company or the head of a branch), therefore his full name, position and abbreviated name of the organization (for example, Khlebodar LLC), as well as the address, are indicated and contact details.
3. Under the “header” on the left side you can make a note indicating under what number and date the letter was registered in the organization’s outgoing correspondence journal.
4. Next in the center is the title of the letter, which reflects its essence, for example, “Response to the request of the tax inspectorate” (and in brackets it is explained for what reason).
5. In the text of the letter itself, the circumstances are first very briefly stated - i.e. a mention that a letter has been received from the tax office demanding an explanation, in response to which the company sends its letter.
6. What follows is the actual explanation with a detailed but most concise description of your position. As a rule, 1-2 printed sheets are enough.
7. If any documents are attached to the letter, they are also listed in the “Attachments” section.
8. Finally, the sender indicates the position, once again writes down the name of the company, puts a signature and its transcript.
9. Bottom line, left corner – date of document preparation. It must be indicated in order to have additional proof that it was provided on time.

A finished example is presented below.

Types: ready-made examples for common situations

In practice, there are several common cases when tax authorities present a requirement to provide a response (based on a company model) explaining their position on a particular topic. Ready-made solutions are discussed below.

If the fixed asset was sold at a loss

The inspectorate acquired the right to demand explanations from the company on this matter relatively recently – since 2014, which is quite legal. However, in practice, there are often cases where representatives of inspection bodies essentially abuse their rights and ask for clarification regarding such cases:

• the asset was sold, but losses were incurred only due to actual depreciation (depreciation), which is why it was necessary to sell the asset at a lower price;
• the asset was sold at a price higher than its residual value - such cases often arise for purely market reasons due to an unstable economic situation.

In these cases, the company is not required to provide any explanation. However, in the response letter it can be stated that profit was declared in the reporting documents, and the organization did not provide any factual errors or deliberately false information.

Application of benefits when paying property taxes

Since in 2015 taxes are not paid on all movable property assets (except for those belonging to depreciation groups 1 and 2) (provided that the company bought them after January 1, 2013), the law essentially approved the benefit. Such preferential property is already designated in the Tax Code (Article 381).

However, many representatives of the inspection (perhaps out of ignorance) began to demand documents that confirm the possibility of receiving this benefit, as well as a complete list of all movable objects that are exempt.

It is important to keep 2 points in mind here:

1. The letter must contain a specific list of the assets in question. Otherwise, you can only send copies of contracts and other documents that confirm the fact of purchase and the date of its completion. The contracts also reflect the type of selling company: dependent or independent, which has its own meaning.
2. If assets were purchased from an affiliated company (as well as in cases where the assets were acquired as a result of a company reorganization), then taxes on such property are paid.

NOTE. The inspectorate may request a specific list of assets, i.e. preferential property, and it will be in the interests of the company to provide such data. Then the situation can be clarified especially quickly.

And here is what a sample response to such requirements looks like when it comes to providing explanations on preferential property.

Of course, all property objects of their 1st and 2nd depreciation groups are not included in this list. There are no benefits for them, and besides, representatives of the tax service do not have the right to demand clarification specifically on these things.

If property taxes are greatly reduced or increased greatly

Representatives of the tax inspectorate often become interested in cases where in one financial year the actually paid property tax decreased, and in the next it remained at approximately the same level (i.e. did not increase). The attention of inspectors is especially often drawn to situations where the differences between these values ​​are too large (in their opinion), since this may indicate an illegal financial scheme aimed at non-payment.

In addition, 3-4 years ago there were precedents when interdependent organizations deliberately simply transferred some of the movable property assets into each other’s ownership in order to significantly reduce the payment amount. Since in 2015 the tax is paid from such a base, and the company’s tax has not actually increased, it means, logically, that it is deliberately evading payment.

The answer is provided according to the actual situation. The most often influenced by objective factors:

• liquidation of certain property assets due to optimization and/or unfavorable economic situation;
• sale of property;
• disposal of fixed assets.

The company then simply acquires property from a firm with which it is not interdependent. It is this reason that plays the main role. To prove their position, they send purchase and sale agreements and financial documents confirming such a legal scheme.

Relationship between depreciation and property tax

In such cases, suspicion arises because property is depreciated, but property taxes are not paid. Inspectors may again suspect some illegal activity. However, in practice, the reason is most often easily explained and provable. The fact is that a fairly large share of the company’s assets is property that belongs to depreciation groups 1 and 2, and no tax is paid on it. An example response for this case is provided below.

If the costs are too high

Tax authorities often demand explanations due to the fact that expenses, in their opinion, are growing too quickly and make up a fairly large percentage of the company’s budget. Practice shows that suspicion is raised in cases where the profit is only a fifth or less. It is very simple to explain the increase in costs, especially against the backdrop of real economic reasons:

• instability in the foreign exchange market (exchange rate differences);
• the need to increase wages due to the actually decreased incomes of the population over the past 3 years in a row;
• rising costs due to inflation.

What happens if you don’t respond to a request?

Responding to a tax request is the company’s responsibility, since if you completely ignore the message, the inspectorate has the right to fine the organization for:

• 5000 rubles if it was not provided for the first time;
• 20,000 rubles – for the second time (calculation is carried out by calendar years).

Thus, providing an explanation in most cases is not particularly difficult. And ignoring the letter is not in the interests of the company: the point is not only in a possible fine, but also in the fact that by explaining its position, the company often saves itself from the need to conduct further proceedings, including litigation.

Video commentary

Today, some institutions have to face the need to provide an explanation to the tax authorities after any audit or reporting. To ensure that explanations do not provoke additional checks by the supervisory authority, the preparation of the explanation must be taken very seriously, with full responsibility, and not delay in responding.

What requirements are relevant now?

As a rule, the requirement to provide explanations arises after a certain period after reports or declarations, and the reason for the requirement may be any erroneous entry or inaccuracy in reporting. Quite often, questions arise from supervisory structures regarding reporting for VAT refunds when counterparties’ reports do not match, due to discrepancies in tax data in income tax returns. Questions may also arise as a result of unjustified losses of the enterprise during an audit, when sending an updated declaration or in tax reporting, in which the tax amount is shown to be less than in the initial information, etc.

For example, for VAT there are 3 main types of requirements for writing explanations, a sample of which was developed and approved electronically by the Federal Tax Service standards:

• According to control compliance
• For disagreements with counterparties
• About information not recorded in the sales journal (letter of the Federal Tax Service No. ED-4-15/5752 dated 04/07/2015).

Requirements for explanations after VAT returns may arise for other reasons, but a sample document has not yet been developed by the tax authorities.

To send a response, the payer has 6 working days to report receipt of the request, plus another 5 working days to send a response to the request (weekends and holidays are not taken into account).

How to write explanations to the tax office in 2019

If the payer has received a request from the tax service for an explanation, it means that the inspectorate has found something suspicious in the payer’s declaration. It should be noted that the Federal Tax Service Inspectorate provides desk control of all declarations and accounting reports using an automatic electronic program that can quickly identify errors in reporting (discrepancies between data in reports, discrepancies between the submitted declaration and the information available to the assigned inspector), as a result of which the Federal Tax Service Inspectorate submits a request for an explanation of this fact (clause 3 of Article 88 of the Tax Code of the Russian Federation). There may be other reasons for submitting a request for explanation.

The explanatory note to the Federal Tax Service is drawn up in free form, except for explanations during the desk audit of the VAT declaration. If the payer believes that there are no inaccuracies or inconsistencies in the sent report, then this should be indicated in the explanation of the requirement:

« ...In response to your request No. 75 dated March 2, 2019, we report that there are no inaccuracies in the tax return for the requested time. Based on this, we consider it unacceptable to make corrections to the reporting for the specified time...».

If you discover an error in reporting that does not entail a tax reduction (for example, a technical inaccuracy in displaying a code), you can explain what error was made, indicate the correct code and provide evidence that this inaccuracy did not lead to a reduction in the amount of tax paid or send an updated declaration.

However, if an inaccuracy is discovered that results in a tax reduction, an amended return must be submitted immediately. It makes no sense to give explanations under such circumstances (clause 1 of Article 81 of the Tax Code of the Russian Federation; Letter of the Federal Tax Service No. ED-4-15/19395 dated November 6, 2015).

Every taxpayer is obliged to know that the legislation does not provide that explanations must be submitted only in writing, i.e. this suggests that explanations can be provided orally, however, to avoid any misunderstandings, it is better to prepare a written response.

Explanation to the tax office regarding losses

When checking unprofitable enterprises, the tax service carefully examines whether income taxes are underestimated. The audit period covers the past two years or more. When a taxpayer receives a request to explain the cause of losses, it is necessary to promptly send a response to the supervisory service, which explains in detail why costs are higher than income. For example, you can refer to the fact that the company was created recently, there is still little clientele, and the costs of renting the building and maintaining employees are high, etc. In the answer, it is necessary to pay attention to the fact that all costs are documented and the reporting is drawn up correctly. For greater clarity, you can create a table displaying a list of costs for the year broken down by operations.

Download the explanatory note to the tax office on losses

(Video: “We draw up explanations of losses in response to the request of the tax authority”)

Explanation to the tax office about discrepancies in declarations

Supervisory structures check all declarations using automatic programs, and they can very quickly find a discrepancy between the information in one declaration (for example, for VAT) with the information for another (for example, for income tax) or with the accounting report. In this case, the inspection is forced to contact the payer with a demand to explain the reason for the discrepancy between indicators (for example, revenue).

Considering that accounting in institutions is not carried out in the same order as accounting in the supervisory service, it is not difficult to explain the identified discrepancies. For example, VAT tax data may not coincide with the amount of profit, since there are non-sales income that is not subject to VAT (fines, dividends, exchange rate discrepancies). This circumstance may cause discrepancies, which should be written about in the response to the request. (Article 250 of the Tax Code of the Russian Federation).

Explanation from the Federal Tax Service on VAT

When drawing up explanations to the Federal Tax Service regarding VAT, you must keep in mind that there are some nuances here. As noted earlier, payers are required to submit a declaration in electronic form (clause 3 of Article 88 of the Tax Code of the Russian Federation), therefore, explanations for VAT by institutions are required to be submitted in electronic form. In this case, explanations must be submitted according to the accepted template (FTS Regulation No. MMV-7-15/682@ dated December 16, 2016) and if an institution submits electronic explanations not in the required template, then it may be fined (Clause 1 of Article 129.1 of the Tax Code RF). However, in September 2017, the Federal Tax Service issued a resolution No. SA-4-9/18214@) dated September 13, 2017, which canceled the fine to the payer for an incorrect sample of explanations.

If an enterprise has the right to submit a VAT return in paper form, then it is better to provide explanations according to the samples accepted by the Federal Tax Service (Appendices 2.1-2.9 to the Federal Tax Service letter No. AS-4-2/12705 dated July 16, 2013). It should be noted that the use of these samples is not necessary.

To make the explanation more reliable, you can attach copies of invoices, extracts from sales and purchase logs.

If an inspector demands an explanation from an enterprise about the low tax burden compared to the industry average, then this circumstance can be explained as follows:

“...In the declaration for the required reporting for the requested time, there was no incomplete display of information that would lead to a reduction in tax payments. Therefore, the company believes that clarification of the tax return for the specified time is not required. The tax burden on the main activities of the institution was reduced at the specified time due to a decrease in income and an increase in the institution’s costs...».

And then you need to state the amount of decrease in the amount of revenue and increase in expenses for the requested time compared to the past period, and the reasons for this circumstance (decrease in the number of buyers, increase in prices for the purchase of goods, etc.).

(Video: “UNP News – Issue 8″)

What to do when the tax demand is unfair

There are times when tax structures require explanations when there are no reporting errors. There is no need to ignore such requirements from the tax office. In order to avoid misunderstandings and not be subject to sanctions (including unexpected inspections by supervisory services), it is required to immediately notify the inspectorate that all submitted reports are correct and, if possible, provide copies of supporting documents. We must remember that for the inspection, it is not the text of the explanation that plays an important role, but the fact of the answer itself.

Sample of a response to a tax request for clarification

As noted earlier, there is no unified sample response to an inspection requirement, so you can write an explanatory note in any form. Of course, the text of the response must be displayed in the correct business style adopted for official letters.

• First, usually in the upper right corner, you need to write the address of the tax office, where the institution must provide an explanation. Next, write the letter number, locality and district to which the institution belongs.
• The next line displays the data of the sender of the document: name of the institution, address, and contact phone number.
• In the next paragraph of the letter, before drawing up the text of the explanation, you need to display a link to the number and date of the request by the inspectorate and succinctly describe the essence of their requirement, and only after that you need to start describing the explanations.
• The explanation must be described very carefully, providing the necessary links to supporting materials, certificates, legislation, regulatory documents, etc. The clearer this section of the explanation is, the greater the hope that the controlled body will be satisfied with the answer.
• In the explanation, it is strictly forbidden to refer to unreliable data, as this will be quickly identified with subsequent severe sanctions from tax inspectors.

In cases where the tax inspectorate, when analyzing the reporting provided by the taxpayer, identifies any violations, errors or other circumstances that raise questions for it, it sends a request for clarification to the organization that provided such reporting.

When is this document necessary?

Usually, reason for clarification factors such as:

• Identifying errors in the submitted declaration;
• The presence of contradictions in documents for the reporting period or in relation to previously provided information;
• Submitting a clarifying return that reduces the amount of tax compared to the original;
• Reflection of losses for the reporting period from the payer.

A response to such a request must be sent within five days of receipt.

According to changes in legislation since 2015, in some cases, before sending explanations, it is also required to notify the tax office of receipt of the request.

Punishment for non-compliance

Penalties It is precisely for failure to provide explanations upon request that are not provided for, but in case of refusal to provide explanations, the tax inspectorate has the right to at least conduct an on-site audit, and at maximum start the procedure for liquidating the taxpayer, so it is extremely undesirable to ignore such requests.

The need to submit an explanatory note to the tax authorities is described in this video:

If you have not yet registered an organization, then easiest way This can be done using online services that will help you generate all the necessary documents for free: If you already have an organization and you are thinking about how to simplify and automate accounting and reporting, then the following online services will come to the rescue and will completely replace an accountant at your enterprise and will save a lot of money and time. All reporting is generated automatically, signed electronically and sent automatically online. It is ideal for individual entrepreneurs or LLCs on the simplified tax system, UTII, PSN, TS, OSNO.
Everything happens in a few clicks, without queues and stress. Try it and you will be surprised how easy it has become!

Rules for drawing up an explanatory note

An explanation must be drawn up addressed to the head of the tax office at the place of registration on the official letterhead of the organization. In most cases, it is compiled in any form. For some types of required explanations from the tax service, a recommended form of submission is provided.

To use such forms are not required, since they are advisory in nature, however, their use, firstly, is desirable to prevent disagreements with the recipient, and secondly, it is often much more convenient from the point of view of filling out, as it eliminates many issues in terms of registration.

When composing an answer should be considered not only the topic (for example, an explanation of the salary, justification of losses, etc.), but also focus on the actual content of the request, since it may include both the need to provide general information on the specified topic, and a requirement for a narrower focus or provide for the provision of specific documents.

In general terms, the explanation is usually as follows: “In response to your request No.... dated... for clarification regarding... we report the following.” And then the text of the answer is formed depending on the essence of the question that has arisen.

The specific content of the explanatory note depends on the content of the request, but you can consider the most common options in more detail.

Explanation of losses

First of all, they include explanation of losses reflected in income tax reporting. Of course, such clarifications are not required in every case of reflecting a loss, and only for organizations that have been registered for a relatively long time, since for newly created companies a loss at the beginning of their activities is a completely normal phenomenon.

Additional reasons The following factors may contribute to the request:

• A sufficiently large amount of loss received based on the results of the reporting period;
• The organization operates at a loss for two or more reporting periods.

In such cases The Federal Tax Service may attribute the company is classified as problematic or suspected of deliberately understating profits as a basis for calculating tax. Therefore, when receiving such a request, the taxpayer is especially interested in providing information of such quality and quantity that will be sufficient to resolve all such questions.

For clarification must be described in detail all factors that served as the basis for the formation of a loss (changes in the exchange rate, carrying out necessary expensive measures on a one-time basis, force majeure situations that caused major damage, etc.). To prove these circumstances, it is advisable to attach supporting documents. In the conclusion, it is required to describe the measures taken to prevent loss in future reporting periods, preferably also with supporting documents.

Explanations on employee salaries

In addition to tax losses may be of interest and the procedure for paying income tax on it.

Regarding wages, questions often arise regarding its size if it is less than the established minimum. Such situations often arise if an employee is registered at half the rate. In this case, it is necessary to refer to, and, which implies a volume of work that does not require a whole working day and full-time employment of the employee. You can also further justify the reasons that led to this situation, for example, a reduction in production volume, an increase in productivity, an increase in the efficiency of labor organization, etc.

The following video material will help you correctly compose an explanatory note to the tax office:

Personal income tax payment

Regarding payment by a legal entity as a tax agent questions may arise regarding identified errors in the calculation of the tax base and the tax itself. If an error actually occurred, it is necessary to take measures to correct the situation and provide documents confirming the correction of the error. If it is not possible to correct it, a justification must be provided. When disagreements arise due to differences in the method of calculation and in fact the information was provided correctly, you simply need to describe in detail the method of calculation used and its justification.

Other situations for clarification

In addition to explaining the reporting of the organization itself, it may be required to provide information regarding counterparties. This situation is called a counter audit and consists in the fact that a request comes from the tax office asking for a list of transactions carried out and available documents regarding them regarding any counterparty organization. As a rule, this is done over a limited period of time. In this case, the response is simply drawn up in strict accordance with the requested information, or it is indicated that during the specified period no transactions were carried out with this organization.

In running a business, it is very important to know...

If you ever need to write a similar note to the tax authority, you need to do it very competently. Today you can familiarize yourself with recommendations on how to write an explanatory note to the tax office. The recommendations given below will also be useful in interaction with superiors and other officials.

First, let's define what it is, explanatory note to the tax office. You need to write a memorandum addressed to the director, but it is also possible to write an explanatory note. The key difference between these two documents is the absence of proposals and conclusions at the end of the document, and the design itself is, in principle, very similar to each other. This document explains the point of view of the author of this paper. This event may well be a failure to complete tasks assigned by management, as well as a violation of generally accepted labor discipline.

This document is able to explain in full any unpleasant situations that have arisen at work, with an ambiguous interpretation of the reasons for what is happening, which led to unpleasant and inevitable consequences.

There is another function that this document performs: it can clearly explain the contents of another document. In this case, the explanatory note is attached to the main document as an appendix.

Absolutely all taxpayers, without exception, are simply obliged to submit the appropriate reports to the tax control authorities within specific deadlines and in the prescribed manner. In some exceptional cases, the taxpayer may be required to write an explanatory note to the tax office, which can adequately and completely explain the reason for the actions that led to certain consequences.

Write an explanatory note correctly

Follow the mandatory standard layout material when writing an explanatory note: at the very top there must be a header, then you should write the name of the document, then the main part, which fully explains the reasons for the current situation, at the very bottom the signature and date. In such situations, the use of a business and official writing style is highly encouraged. This style of writing is characterized by laconicism, lack of emotional background, a certain dryness, and coloration in the presentation of explanations. Under any circumstances, you need to remember the general veracity of the material presented, as well as reliable argumentation.

In the main part of the document, first, the identification by inspectors of the relevant services of inconsistencies or gross violations of basic rules and regulations is written. Next, you should briefly state all the reasons that led to non-compliance and inconsistency of the mandatory rules. If necessary, you can write down measures that will be taken in the future to avoid the recurrence of such violations.

In most cases, all tax inspectors require a detailed explanation in circumstances where the person who provides the reporting material records a constant loss of the enterprise in the reporting periods. The following may be adequate reasons that led to this situation:

1. To develop the activities of the enterprise, they carried out indexation and increased salaries for personnel, which led to an improvement in overall competitiveness;
2. Thorough reconstruction of facilities, which steadily increases costs, as well as a decrease in sales volumes;
3. A significant reduction in prices for services or goods in order to significantly increase the overall competitiveness of the company, which led to a general decrease in gross income;
4. Loss of an important strategic counterparty.

An example of writing an explanatory note to the tax office:

Violations:

Thanks to the above examples and norms, you know how to correctly write an explanatory note to the tax office.

The chief accountants sent dozens of tax demands that they received from their inspectors to the UNP editorial office. We have collected the most popular requests and prepared sample responses to tax requests for clarification.

In this article:

Tax officials are asking for clarification of more and more indicators. Moreover, it is not always clear what to answer. Most tax queries relate to differences in VAT returns, tax reductions and errors in property tax calculations. Let's look at the most common tax claims and tell you how to prepare explanations.

Responses to the tax office’s request for clarification: samples

Response to the tax office’s request for an explanation of the sale of a fixed asset at a loss . Since 2014, inspectors have the right to demand that the amount of loss be justified (clause 3 of Article 88 of the Tax Code of the Russian Federation). But tax authorities, using this rule, require clarification, even if the losses were received only from the sale of depreciable property, but in general the declaration shows profit. The inspectorate does not have the right to demand a response letter (clause 7 of article 88 of the Tax Code of the Russian Federation).

In addition, the organization is not required to explain why it was unable to sell the asset for more than its residual value. This can be explained by the unstable economic situation. In response, we can confine ourselves to explaining that the statements state profit, but there are no errors or contradictions.

Letter to the tax office to provide clarification on the application of property tax benefits . From January 1, 2015, movable assets (except for property of the first and second depreciation groups), which were acquired from January 1, 2013, are exempt from property tax as a benefit (clause 25 of Article 381 of the Tax Code of the Russian Federation). Therefore, the inspectors sent out a mass mailing to confirm the benefit, demanded documents and a list of benefit property (Clause 6, Article 88 of the Tax Code of the Russian Federation), and wanted to know where the asset came from. If it is purchased from an affiliated company or received after reorganization, then tax must be paid.

If a specific list of documents is not specified in the request, then in response it is worth submitting contracts, invoices from suppliers, and commissioning certificates. Contracts and invoices confirm in which year the goods were purchased. And the acts indicate when she accepted them for accounting. The contract also shows who the supplier is. If it is an independent organization, then the benefit is legal. It is also worth compiling a list of preferential property indicating the residual value as of the 1st day of each month. This way you can confirm that there were no errors when filling out the declaration (see response to the tax office’s request for documents, sample).

Limited Liability Company "Romashka"

Ref. No. 350 from 07.28.18

On No. 01-07/300 dated 07.24.18

EXPLANATION

about the cost of preferential property

In response to the request for documents and information, Romashka LLC reports the following. In column 4, lines 020 – 080 of section 2 of the property tax calculation for the first half of 2018, Romashka LLC reflected the cost of preferential property, which is exempt from tax on the basis of paragraph 25 of Article 381 of the Tax Code of the Russian Federation. On line 130 of section 2 – the code of the applied benefit is 2010257. To confirm the application of the benefit, we present a list of property exempt from tax:

Application:

a copy of the agreement with LLC “Supplier” on 3 sheets;

copies of delivery notes on 40 sheets;

copies of inventory cards OS-6 on 40 sheets;

copies of commissioning acts in form OS-1 on 40 sheets.

Limited Liability Company "Granit"

TIN 7701025478, checkpoint 770101001, OGRN 1045012461022

Moscow, st. Basmannaya, 25

To the Head of the Federal Tax Service of Russia No. 1 for Moscow

Ref. No. 320 from 07/28/18

On No. 01-07/420 dated 07.24.18

EXPLANATIONS

about the reasons for the high share of expenses

In response to the request for clarification, Granit LLC reports the following.

Costs for the purchase of goods, interest on loans, exchange differences in the income tax return for the first half of 2018 increased compared to the same period last year and amounted to 88.3 percent of sales revenue. The Tax Code does not determine the ratio of income and expenses that companies are required to adhere to in their business activities. There are no errors or contradictions in the reporting, so the inspection has no right to demand clarification.

However, we inform you that Granit LLC purchases the main range of goods abroad. Therefore, an increase in the share of expenses is associated with changes in the exchange rate, an increase in purchase prices and a change in suppliers. At the same time, the sales volume does not yet allow for high profits and maintaining the same share of costs.

General Director Astakhov I. I. Astakhov

The company only has movable assets on its balance sheet that were registered in 2013; it does not pay property tax on them. Do tax authorities have the right to demand documents confirming benefits? Yes, if the property is included in the third to tenth depreciation groups. From January 1, 2015, movable assets (except for property of the first and second depreciation groups) are exempt from property tax as a benefit if registered since 2013 (clause 25 of Article 381 of the Tax Code of the Russian Federation). And tax officers at their desks have the right to demand documents confirming the validity of the application of benefits (clause 6 of Article 88 of the Tax Code of the Russian Federation).

Responses to the Federal Tax Service's request for clarification on VAT 2019

Letter to the Federal Tax Service to fill out a questionnaire after the inspection. Tax officers actively come for inspections during desk VAT audits. They acquired this right in 2015 (clause 1 of Article 92 of the Tax Code of the Russian Federation). An inspection is ordered if the tax in the declaration is claimed for reimbursement or the inspection reveals discrepancies with the data in the counterparty’s reporting. And such inconsistencies are found on every second inspection.

Inspectors combine inspection with interrogations. For example, they may ask questions to employees and contractors who perform work in the office. After the visit, they are often given a questionnaire and the same questionnaire is sent to the counterparty.

To ensure that the event goes smoothly, it is safer to instruct employees in advance how to respond to inspectors. And at the same time, find out from your counterparties whether they will fill out the questionnaire and what they will write there. It is safer for the supplier and buyer to have the same answers.

You can refuse the inspectors, because the Tax Code of the Russian Federation does not provide for any questionnaires. However, the inspectorate has the right to call employees for questioning even within a chamber (Article 90 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated November 30, 2011 No. 03-02-07/1-411).

Letter from the INFS on the provision of invoices, purchase and sales books . When checking VAT returns, inspectors request invoices, purchase and sales books. Many people wonder why inspectors need this information if everything is already in the declaration. But the reporting includes only information from books and invoices. Therefore, documents must be submitted if a declaration for compensation has been submitted or inspectors have found contradictions in it (clause 8, 8.1 of Article 88 of the Tax Code of the Russian Federation). Otherwise, for each document not submitted, a fine of 200 rubles is possible (Clause 1, Article 126 of the Tax Code of the Russian Federation).

Letter to the INFS on the provision of documents on transactions not subject to VAT . During VAT inspections, inspectors request documents on non-taxable transactions. For example, if an organization issues loans, they require confirmation of exemption under Article 149 of the Tax Code of the Russian Federation.

Inspectors motivate such requests by the fact that they have the right to demand documents confirming the right to benefits (clause 6 of Article 88 of the Tax Code of the Russian Federation). But issuing loans is not a tax benefit. These transactions are exempt from taxation regardless of which company makes the transactions (subclause 15, clause 3, article 149 of the Tax Code of the Russian Federation). This means that inspectors do not have the right to demand documents, referring to paragraph 6 of Article 88 of the Tax Code of the Russian Federation. The judges also agree with this (resolution of the Arbitration Court of the North-Western District dated February 19, 2015 No. F07-1155/2014). Therefore, in the tax office’s response, you can politely refuse to provide documents (see the response to the tax office’s VAT requirements, sample).

See below for formalized letters for the tax office for VAT 2018.

TIN 7701025478, checkpoint 770101001, OGRN 1045012461022

Moscow, st. Basmannaya, 25

To the Head of the Federal Tax Service of Russia No. 1 for Moscow

Ref. No. 300 from 07/28/18

On No. 01-07/160 dated 07.24.18

LETTER

about the right to demand documents

In response to the request for documents, LLC “Company” reports the following.

During a desk audit of the declaration for the second quarter of 2016, the inspectorate requested documents confirming the use of VAT exemption (subclause 15, clause 3, article 149 of the Tax Code of the Russian Federation).

As part of a desk audit of a VAT return, the inspectorate has the right to request documents only in the following cases:

When confirming the right to tax benefits (clause 6 of Article 88 of the Tax Code of the Russian Federation);

When confirming the legality of deductions, if the declaration is with compensation (clause 8 of Article 88 of the Tax Code of the Russian Federation);

If contradictions or inconsistencies are identified in the declaration (clause 8.1 of Article 88 of the Tax Code of the Russian Federation).

In other cases, inspectors are prohibited from requesting documents (Clause 7, Article 88 of the Tax Code of the Russian Federation). This conclusion is confirmed by the judges (determination of the Supreme Arbitration Court of the Russian Federation dated January 31, 2014 No. VAS-497/14). Operations for issuing loans do not relate to tax benefits, the tax was declared for payment in the declaration, and the inspection did not reveal any contradictions in the reporting. In this regard, the company reserves the right not to provide the requested documents.

General Director Astakhov I. I. Astakhov

Response to the INFS requirement: sample for providing an explanation of an error in VAT codes . Inspectors will ask for clarification if the supplier registers an invoice with code 26, and the buyer with code 01. Such verification rules existed before, but now the Federal Tax Service has officially formalized them in letter dated September 20, 2016 No. SD-4-3/17657.

Tax authorities usually require clarification from both parties to the transaction. If the supplier made a mistake, he will confirm the mistake or report the inaccuracy or provide an amendment. It is enough for the buyer to explain that he bought the goods and reasonably claimed the deduction.

Limited Liability Company "Company"

TIN 7701025478, checkpoint 770101001, OGRN 1045012461022

Moscow, st. Basmannaya, 25

To the Head of the Federal Tax Service of Russia No. 1 for Moscow

Ref. No. 1 from 11/10/18

EXPLANATIONS

The demand states that LLC “Company” declared in the declaration for the third quarter a deduction on invoice dated September 12, 2018 No. 20013, which JSC “Supplier” did not register in the sales book for the same period.

LLC "Company" received this invoice from JSC "Supplier" in connection with the purchase of goods and reflected it in the purchase book with code 01. LLC "Company" claimed a deduction for the above invoice on the basis of clause 1 of Art. 172 of the Tax Code of the Russian Federation.

An error in the VAT return for the third quarter of 2018 was made by Supplier JSC, which registered this invoice with transaction code 26.

Attachment: letter from Supplier JSC dated 11/08/18.

General Director Astakhov I. I. Astakhov

Response to the INFS request for clarification on the transfer of VAT deductions . When transferring the deduction to subsequent quarters, inspectors also require an explanation for this.

The company received the request because it moved the deduction to another quarter. The Tax Code directly allows this; the company has the right to claim a deduction within three years (clause 1.1 of Article 172 of the Tax Code of the Russian Federation). Therefore, inform the inspectors that there are no errors in the declaration, and the company took advantage of the right to declare a deduction at a later period. Just in case, you can ask the supplier for an extract from the sales book and attach a copy of it.

Limited Liability Company "Company"

TIN 7701025478, checkpoint 770101001, OGRN 1045012461022

Moscow, st. Basmannaya, 25

To the Head of the Federal Tax Service of Russia No. 1 for Moscow

Ref. No. 1 from 11/10/18

EXPLANATIONS

In response to the received request for explanations dated November 7, 2018 No. 4-978, Company LLC reports the following.

The request states that in the third quarter, LLC "Company" declared a deduction on the invoice dated 07/04/18 No. 20013, which JSC "Supplier" did not register in the sales book for the same period.

Under the purchase and sale agreement No. 54-AR dated June 28, 2018, Company LLC purchased goods from Supplier JSC.

JSC Supplier reflected this operation in the sales book for the second quarter of 2018.

LLC "Company" took advantage of the right to transfer the deduction, which is provided by paragraph 1.1 of Article 172 of the Tax Code of the Russian Federation. The company reported a deduction for this invoice in the third quarter of 2018.

Appendix: An extract from the sales book of JSC “Supplier” is attached.

General Director Astakhov I. I. Astakhov