VAT is not subject to the simplified taxation system. How to write in the contract that VAT is not subject

Article 346.11. General provisions of the simplified tax system

1. The simplified system of taxation by organizations and individual entrepreneurs is applied along with other taxation regimes provided for by the legislation of the Russian Federation on taxes and fees.

The transition to a simplified taxation system or a return to other taxation regimes is carried out by organizations and individual entrepreneurs voluntarily in the manner prescribed by this chapter.

2. The application of the simplified system of taxation by organizations provides for their release from the obligation to pay tax on profits of organizations (with the exception of tax paid on income taxable at the tax rates provided for in paragraphs 1.6, 3 and 4 of Article 284 of this Code), tax on property of organizations ( except for the tax paid in respect of immovable property, the tax base for which is determined as their cadastral value in accordance with this Code). Organizations applying the simplified taxation system shall not be recognized as taxpayers of value added tax, with the exception of value added tax payable in accordance with this Code when goods are imported into the territory of the Russian Federation and other territories under its jurisdiction (including tax amounts subject to payment at the end of the customs procedure of the free customs zone on the territory of the Special Economic Zone in the Kaliningrad Region), as well as value added tax paid in accordance with Articles 161 and 174.1 of this Code.

The paragraph is invalid.

Other taxes, fees and insurance premiums are paid by organizations applying the simplified taxation system in accordance with the legislation on taxes and fees.

3. The application of the simplified taxation system by individual entrepreneurs provides for their release from the obligation to pay tax on personal income (in relation to income received from entrepreneurial activity, with the exception of tax paid on income in the form of dividends, as well as on income taxed at tax rates provided for by paragraphs 2 and 5 of Article 224 of this Code), tax on the property of individuals (in relation to property used for entrepreneurial activities, with the exception of objects of taxation by tax on the property of individuals included in the list determined in accordance with paragraph 7 of Article 378.2 of this of the Code, taking into account the specifics provided for in paragraph two of clause 10 of Article 378.2 of this Code). Individual entrepreneurs applying the simplified system of taxation are not recognized as taxpayers of value added tax, with the exception of value added tax payable in accordance with this Code when goods are imported into the territory of the Russian Federation and other territories under its jurisdiction (including tax amounts, payable at the end of the customs procedure of the free customs zone on the territory of the Special Economic Zone in the Kaliningrad Region), as well as value added tax paid in accordance with Articles 161 and 174.1 of this Code.

The paragraph is invalid.

Other taxes, fees and insurance premiums are paid by individual entrepreneurs using the simplified taxation system in accordance with the legislation on taxes and fees.

4. For organizations and individual entrepreneurs applying the simplified taxation system, the current procedure for conducting cash transactions and the procedure for submitting statistical reports remain.

5. Organizations and individual entrepreneurs applying the simplified taxation system are not released from the duties of tax agents, as well as the duties of controlling persons of controlled foreign companies, provided for by this Code.

As a general rule, organizations and individual entrepreneurs using the simplified taxation system do not charge or pay VAT, because are not recognized as payers of this tax. However, in some cases, they still have to pay VAT and submit a VAT return.

Simplifier issued an invoice with VAT

Since organizations and individual entrepreneurs on the simplified tax system are not VAT payers (clauses 2, 3 of article 346.11 of the Tax Code of the Russian Federation), they should not issue invoices with the allocated tax amount when selling their goods, works, services (hereinafter referred to as goods). But sometimes buyers force simplistic people to issue such invoices, because. they will be able to deduct the VAT indicated in them, which, of course, is beneficial to them.

If the simplifier issues an invoice with VAT to the address of its buyers (customers), then it will have to:

• transfer this VAT to the budget in full at the end of the quarter, namely no later than the 25th day of the month following the quarter in which the invoice was issued (Article 163, paragraph 1, paragraph 5, Article 173, paragraph 4, Article 174 of the Tax Code of the Russian Federation);
• submit a VAT declaration in electronic form to your IFTS also no later than the 25th day of the month following the quarter (clause 5, article 174 of the Tax Code of the Russian Federation).

Issuing an invoice does not make a simplified taxpayer a VAT payer and does not give him the right to deductions. Therefore, when maintaining such a “simplification with VAT”, it is impossible to reduce the amount of VAT that he must pay to the budget by the VAT presented to the simplified supplier by suppliers (paragraph 5 of the Decree of the Plenum of the Supreme Arbitration Court of May 30, 2014 N 33).

The payment received from the buyer is taken into account in the income of the simplifier, excluding VAT (clause 1 of article 346.15, clause 1 of article 248 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance dated 08.21.2015 N 03-11-11 / 48495).

By the way, in a situation where a simplistic person acts as an intermediary, buys and sells goods on his own behalf, he absolutely legally must issue or reissue invoices with allocated VAT (clause 1, article 169 of the Tax Code of the Russian Federation). But at the same time, he does not have an obligation to pay VAT.

When else do you need to pay VAT under the simplified tax system

Other situations where simplified taxpayers must pay VAT are:

• in the performance of duties (Article 161, clause 5 of Article 346.11 of the Tax Code of the Russian Federation);
• when importing goods into the territory of Russia;
• when conducting operations under a simple partnership agreement, an investment partnership agreement, an agreement on trust management of property or concession agreements on the territory of the Russian Federation (clauses 2, 3 of article 346.11, article 174.1 of the Tax Code of the Russian Federation).

VAT upon transition to the simplified tax system

Restoring VAT when switching to the simplified tax system from the general taxation regime (DST) is one of the important things to do before changing the regime. VAT amounts on balances of goods, raw materials, materials as of the date of transition to the simplified tax system, previously accepted for deduction, must be restored in the amount in which they were accepted for deduction. And in relation to fixed assets and intangible assets, VAT must be restored in an amount proportional to their residual (book) value, excluding revaluation (clause 2, clause 3, article 170 of the Tax Code of the Russian Federation).

It is necessary to restore VAT in the quarter preceding the transition to the simplified tax system (clause 2, clause 3, article 170 of the Tax Code of the Russian Federation). That is, if you planned to switch to a simplified system from 2021, then you had to restore VAT in the fourth quarter of 2020.

Recovered VAT for income tax purposes is accounted for as other expenses (Article 264 of the Tax Code of the Russian Federation).

Accounting for input VAT under the simplified tax system

Although they themselves are not VAT payers, when buying goods, works, services from suppliers on the DOS, they pay them with VAT. Such input VAT under the simplified tax system in 2020, as before, is recognized in expenses simultaneously with the cost of purchased goods, works, services (clause 8, clause 1, article 346.16 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance dated 10.27.2014 N 03-11-06 /2/54127).

And VAT on costs that are not taken into account in expenses cannot be taken into account when calculating tax under the simplified tax system.

What is not subject to VAT, see Article 146 of the Tax Code. First of all, these are operations that are not implementation. Also in the code there is a list of transactions that are not subject to VAT due to the exemption. But it is dangerous to confuse them.

How to recover VAT from an advance -

What transactions are not subject to VAT

There are two types of transactions from which companies and entrepreneurs have the right not to charge tax. The first type is transactions that are taxable. The second type - operations that are from VAT taxation.

Operations that are not subject to taxation

The Tax Code has a list of transactions for which VAT is charged. To determine what is not subject to VAT, you need to look at paragraph 1 of Article 146 of the Tax Code of the Russian Federation. If the operation does not meet the criteria from this article, then it is not an object. So, this is a transaction that is not subject to VAT taxation. For example, these are penalties and fines that the company transfers under an agreement with a counterparty.

In addition, the Tax Code has a list of operations that are not an object. Such transactions are not subject to VAT on the basis of paragraph 2 of Article 146 of the Tax Code.

First of all, these are transactions that, according to the law, are not sales (Article 146 of the Tax Code of the Russian Federation). To understand in which cases a transaction is not subject to VAT, you need to look at paragraph 3 of Article 39 of the Tax Code. It lists operations that are not recognized as implementations. For instance:

• transfer of assets to the successor during the reorganization of the company (subclause 2, clause 3, article 39 of the Tax Code of the Russian Federation);
• transfer of property to a member of a business company within the limits of his initial contribution upon his withdrawal from the company, as well as upon liquidation of the company (subclause 5, clause 3, article 39 of the Tax Code of the Russian Federation);
• transactions with the circulation of foreign currency, except for numismatics (subclause 1, clause 3, article 39 of the Tax Code of the Russian Federation);
• transfer of property, if such an operation is of an investment nature (subclause 4, clause 3, article 39 of the Tax Code of the Russian Federation).

In addition to such transactions, transactions not subject to VAT include:

• gratuitous transfer of residential buildings, kindergartens, roads, power grids and other facilities to state authorities and local governments (subclause 2, clause 2, article 146 of the Tax Code of the Russian Federation);
• transfer of property of state and municipal enterprises during privatization (subclause 3, clause 2, article 146 of the Tax Code of the Russian Federation);
• sale of land plots and shares in them (subclause 6, clause 2, article 146 of the Tax Code of the Russian Federation);
• transfer of property rights to the legal successor of the organization (subclause 7, clause 2, article 146 of the Tax Code of the Russian Federation).

For some transactions that are exempt from VAT, the organization may pay this tax (ie, waive the exemption). The list of such operations is established in paragraph 3 of Article 149 of the Tax Code of the Russian Federation. It is up to the organization to decide whether or not to use the exemption for such transactions.

If an organization applies an exemption, then VAT presented by suppliers of goods (works, services) used in the implementation of such operations cannot be deducted. Include input tax amounts in the cost of such goods (works, services). How to pay VAT on tax-exempt transactions >>>

Operations exempted from tax by law

The following transactions are exempt from VAT:

• sale of medical goods specified in the closed list (approved by Decree of the Government of the Russian Federation of September 30, 2015 No. 1042, subparagraph 1, paragraph 2, article 149 of the Tax Code of the Russian Federation);
• sale by canteens of educational and medical institutions of food products produced by catering organizations (subparagraph 5, clause 2, article 149 of the Tax Code of the Russian Federation);
• transfer of goods and property rights to charity (subclause 12, clause 3, article 149 of the Tax Code of the Russian Federation);
• issuance of guarantees and guarantees by non-banking organizations (subclause 15.3, clause 3, article 149 of the Tax Code of the Russian Federation);
• sale of residential buildings, premises and shares in them (subparagraph 22, clause 3, article 149 of the Tax Code of the Russian Federation);
• transfer for advertising purposes of goods, the cost of acquiring or creating which does not exceed 100 rubles per unit (subclause 25, clause 3, article 149 of the Tax Code of the Russian Federation).

A complete list of non-taxable VAT transactions can be found in Article 149 of the Tax Code.

Are VAT exemptions valid in 2019?

Answered by Olga Duminskaya,

Counselor of the State Civil Service of the Russian Federation, 2nd class

« Yes. Companies still have the right not to tax the sale of goods, works, services specified in Article 149 of the Tax Code. For example, you do not need to calculate VAT on the transfer of promotional goods worth 100 rubles. and less.
Only the exemption for waste paper was canceled (clause 2, article 2 of the Federal Law of June 2, 2016 No. 174-FZ). At the same time, in this case, the buyer, as a tax agent, must charge VAT in the same manner as when buying scrap metal (clause 8, article 161 of the Tax Code). Therefore, buyers of waste paper can use clarifications for companies purchasing scrap metal.»

Read about other changes in VAT.

What transactions are subject to VAT in 2019

The transactions subject to VAT include:

• sale on the territory of Russia of goods, works, services and collateral, including under a compensation or novation agreement (subclause 1 clause 1 article 146 of the Tax Code of the Russian Federation);
• transfer of ownership of goods, the results of work performed and the provision of services free of charge (subclause 1 clause 1 article 146 of the Tax Code of the Russian Federation);
• transfer of goods, works and services for own needs (subclause 2, clause 1, article 146 of the Tax Code of the Russian Federation);
• performance of construction and installation work on their own for their own needs (subclause 3, clause 1, article 146 of the Tax Code of the Russian Federation).
• importation of goods into the territory of Russia (subclause 4, clause 1, article 146 of the Tax Code of the Russian Federation).

Note that organizations and entrepreneurs have the right to receive exemption from VAT. As a general rule, you can use the exemption if the proceeds without VAT from the sale of goods (works, services) for the previous three consecutive calendar months did not exceed 2,000,000 rubles. (Clause 1, Article 145 of the Tax Code). Some features have conditions for exemption from VAT:

Example of revenue calculation for using the VAT exemption:

LLC “Trading firm “Germes”” sells non-excisable goods. From May 1, the organization decided to exercise the right to exemption from VAT.
To do this, the accountant determined the proceeds from the sale of goods for the period February-April. At the same time, the accountant did not include advances received from buyers in the calculation. Revenue without VAT for the specified period amounted to:
- from the sale of fixed assets - 50,000 rubles;
- from the sale of non-excisable goods - 1,450,000 rubles.
The total amount of revenue, which is taken into account when determining the right to exemption from VAT, is 1,500,000 rubles. (50,000 rubles + 1,450,000 rubles). It does not exceed 2,000,000 rubles. Therefore, from May 1, Hermes can take advantage of the exemption and not pay VAT when selling non-excisable goods and other property that is not subject to excises (fixed assets, materials, etc.).

An organization or individual entrepreneur using the VAT exemption is required to issue invoices. In such invoices, do not allocate the amount of VAT, but make a note or stamp “Without tax (VAT)”. But there are exceptions >>> In addition, there are cases when such companies and entrepreneurs must submit a declaration for this tax.

What services are not subject to VAT

To understand whether services are subject to VAT or not, determine the place of their implementation. If this is the territory of Russia, but the tax will have to be charged (Article 148 of the Tax Code of the Russian Federation). How to issue an invoice for services - with or without VAT - depends on whether the services are in the list of transactions. Services not subject to VAT in 2017 are listed in paragraphs 2 and 3 of Article 149 of the Tax Code.

We list which frequent services are not subject to VAT in Russia:

• medical services provided by medical organizations (subclause 2, clause 2, article 149 of the Tax Code of the Russian Federation);
• services for the supervision and care of children in organizations of preschool education, conducting classes in circles and sections with minor children (subclause 4, clause 2, article 149 of the Tax Code of the Russian Federation);
• services for the repair and maintenance of goods under warranty without charging a fee (subclause 13, clause 2, article 149 of the Tax Code of the Russian Federation);
• funeral services (subclause 8, clause 2, article 149 of the Tax Code of the Russian Federation);
• services of sanatorium-resort and health-improving organizations (subclause 18, clause 3, article 149 of the Tax Code of the Russian Federation).

Implementation without VAT on simplified

It is possible to conclude that the sale is not subject to VAT in connection with the application of the simplified tax system, based on the wording from the articles of the Tax Code of the Russian Federation. The USN is not subject to VAT on the basis of paragraph 2 of Article 346.11 of the Tax Code of the Russian Federation. This means that in the contract with a simplified taxation system, prices are indicated without VAT.

You can work without VAT on the basis of the wording of Article 346.11 of the Tax Code of the Russian Federation:

Organizations applying the simplified taxation system shall not be recognized as taxpayers of value added tax, with the exception of value added tax payable in accordance with this Code when goods are imported into the territory of the Russian Federation and other territories under its jurisdiction (including tax amounts subject to payment at the end of the customs procedure of the free customs zone on the territory of the Special Economic Zone in the Kaliningrad Region), as well as value added tax paid in accordance with Articles 161 and 174.1 of this Code.

The primary documents of the company are also exhibited without VAT due to the use of a simplified taxation system.

The company used a common system in 2018. Since 2019, the company has switched to simplified. In 2018, the buyer transferred the advance. The company will ship the goods in advance in 2019. How to deal with value added tax? VAT calculation depends on

Chapter 26.2 of the Tax Code of the Russian Federation provides concessions for simplified companies, so their operations are not subject to VAT on the basis of paragraph 2 of Article 346.11.

Such companies do not issue invoices in accordance with the same paragraph from Article 346.11 of the Tax Code of the Russian Federation, even with the mark “excluding VAT”. An exception when you will have to issue an invoice and transfer VAT:

• the organization is a commission agent or agent who purchases or sells goods on its own behalf, but in the interests of the committent or principal;
• the organization is a VAT tax agent;
• the organization is a participant in a simple partnership agreement that conducts common business, or a trustee, and under this agreement receives advance payments or ships goods.

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Agreement No. _____
for the provision of services

1. The Subject of the Agreement

1.1. The Contractor provides the Customer with equipment repair services, and the Customer undertakes to pay for these services on the terms established by this agreement.

2. Cost and payment procedure

2.1. The cost of the services rendered is 1,500.00 (One thousand five hundred) rubles 00 kopecks for the entire period of the provision of services.

2.2 Services are considered rendered after signing by the parties of the act of delivery/acceptance of services rendered.

2.3. Payment for services under this agreement is made within 5 (five) banking days from the date of issuing an invoice and / or signing the Service Agreement, by non-cash transfer of funds to the account of the Contractor, or in another way.

3. Rights and obligations of the parties

3.1. The customer undertakes:
3.1.1. Provide unhindered access to equipment to be repaired.
3.1.2. Accept the services rendered.
3.1.2. Make full payment for the services rendered in the amount and in the manner prescribed by this Agreement.

3.2. The Contractor undertakes:
3.2.1. Provide equipment repair services.
3.2.2. The Contractor has the right to engage in the provision of services that are not employees of the Contractor.

4. Liability of the parties and dispute resolution

4.1. For non-fulfillment or improper fulfillment of obligations arising from this agreement, the Parties shall be liable, the basis and amount of which are established by the current legislation of the Russian Federation.

4.2. Disputes and disagreements arising between the Parties in connection with the fulfillment of obligations under this Agreement shall be resolved through negotiations, including in the complaint procedure.

4.3. If the Parties fail to settle the dispute in the pre-trial procedure, it is submitted by the interested party for resolution to the Arbitration Court.

5. Validity and procedure for termination of the contract

5.1. The Agreement comes into force from the moment of signing and is valid until the parties fully fulfill their obligations under this Agreement.

6. Final provisions

6.1. This agreement is made in 2 (two) original copies, one of which is with the Contractor, the other - with the Customer, each of which has the same legal force.

7. Legal addresses and bank details of the parties
Customer:

JSC "Organization"
Legal address:
___________________________
The actual address:

Director _____________ I.I. Ivanov

"__" ____________20__

Executor:

LLC "Organization No. 2"
Legal address:
___________________________
The actual address:
______________________________
TIN ____________ KPP __________

r / s ___________________________
Bank__________________________
BIC _________________________

Director______P.P. Petrov

"__" ____________20__

Certificate of delivery / acceptance of services rendered under Contract No. _____

Open Joint Stock Company "Organization No. 1", hereinafter referred to as the "Customer", represented by Director Ivanov Ivan Ivanovich, acting on the basis of the Charter, on the one hand, and Limited Liability Company "Organization No. 2", hereinafter referred to as the "Contractor", represented by Director Petr Petrovich Petrov, acting on the basis of the Charter, on the other hand, have entered into this agreement as follows:

1. This act is drawn up to confirm that the services under the contract in the amount of 1,500.00 (one thousand five hundred) rubles 00 kopecks were provided by the "Contractor" to the "Customer" in full, efficiently and on time.
VAT is not charged due to the fact that the "Contractor" applies a simplified taxation system, on the basis of paragraph 2 of Art. 346.11 Chapter 26.2 of the Tax Code of the Russian Federation and is not a VAT payer, according to the letter of the Ministry of Taxes of the Russian Federation dated September 15, 03 No. 22-1-14 / 2021-АЖ397, invoices are not issued.

VAT is not subject to tax according to chapter 26 2 of the tax code of the Russian Federation

Other taxes are paid by organizations and individual entrepreneurs applying the simplified tax system in accordance with the legislation on taxes and fees. In accordance with paragraph 4 of Art. 346.11 of the Tax Code of the Russian Federation for organizations and individual entrepreneurs using the simplified tax system, the following remain valid: a) the procedure for conducting cash transactions. The Central Bank of the Russian Federation approved Instruction No. 3210-U dated March 11, 2014 “On the Procedure for Conducting Cash Operations by Legal Entities and the Simplified Procedure for Conducting Cash Operations by Individual Entrepreneurs and Small Business Entities” and Instruction No. 3073-U dated October 7, 2013 “ On the implementation of cash settlements”, which came into force on June 1, 2014; b) the procedure for submitting statistical reports.

Organizations that have received the status of a participant in a project for the implementation of research, development and commercialization of their results in accordance with the Federal Law "On the Skolkovo Innovation Center" and keeping records of income and expenses in the manner established by Chapter 26.2 of the Tax Code of the Russian Federation determine the date of receipt of income (expenditure) on a cash basis without taking into account the restriction specified in the first paragraph of this clause. Open article

• Article 346.6 of the Tax Code of the Russian Federation Tax base Upon transition to the payment of the unified agricultural tax by an organization applying the simplified taxation system in accordance with Chapter 26.2 of the Tax Code of the Russian Federation, the residual value of the acquired (constructed, manufactured) fixed assets and acquired (created by the organization itself) is reflected in the accounting as of the date of such transition ) intangible assets, determined in accordance with paragraph 3 of Article 346.25 of the Tax Code of the Russian Federation.

An error occurred.

Attention

For non-fulfillment or improper fulfillment of obligations arising from this agreement, the Parties shall be liable, the basis and amount of which are established by the current legislation of the Russian Federation. 4.2. Disputes and disagreements arising between the Parties in connection with the fulfillment of obligations under this Agreement shall be resolved through negotiations, including in the complaint procedure.

Chapter 26.2. simplified taxation system

Payment for services under this agreement is made within 5 (five) banking days from the date of issuing an invoice and / or signing the Service Agreement, by non-cash transfer of funds to the account of the Contractor, or in another way. 3. Rights and obligations of the parties 3.1. The customer undertakes: 3.1.1.

Important

Provide unhindered access to the equipment to be repaired.3.1.2. Accept the rendered services.3.1.2. Make full payment for the services rendered in the amount and in the manner prescribed by this Agreement.

The Contractor undertakes: 3.2.1. Provide equipment repair services. 3.2.2. The Contractor has the right to engage in the provision of services that are not employees of the Contractor.

4. Responsibility of the parties and resolution of disputes 4.1.

Chapter 26.2 of the Tax Code of the Russian Federation Simplified taxation system (usn)

Organizations applying the simplified taxation system shall not be recognized as taxpayers of value added tax, with the exception of value added tax payable in accordance with this Code when goods are imported into the territory of the Russian Federation and other territories under its jurisdiction (including tax amounts subject to payment at the end of the customs procedure of the free customs zone on the territory of the Special Economic Zone in the Kaliningrad Region), as well as value added tax paid in accordance with Articles 161 and 174.1 of this Code. Paragraph two became invalid on January 1, 2010. Other taxes, fees and insurance premiums are paid by organizations applying the simplified taxation system in accordance with the legislation on taxes and fees.

3.

Tax Code of the Russian Federation

• for limited liability companies, all tax payments must be made exclusively by bank transfer;
• documentary evidence of expenses deducted from income is required;
• the presence of restrictions on expenses for which the tax base can be reduced (the list is in Article 346.16 of the Tax Code of the Russian Federation).
• the need for accounting by legal entities;
• low probability of official partnership with individual entrepreneurs and organizations that are VAT payers;
• the need for timely payment of advance payments according to the data of the Book of Accounting for Expenses and Income;
• the requirement to conduct cash transactions in accordance with paragraph 4 of Article 346.11
• restrictions defined by the Tax Code of the Russian Federation for the simplified tax system: - for individual entrepreneurs: the number of employees must be less than 100 people, income less than 1.5 million rubles.

Article 346.11. general provisions

N 382-FZ "On Amendments to Parts One and Two of the Tax Code of the Russian Federation") provides that the application of the simplified tax system by individual entrepreneurs provides for their release from the obligation to pay: a) personal income tax (in relation to income received from entrepreneurial activity, with the exception of tax, paid from income in the form of dividends, as well as from income taxed at the tax rates provided for in paragraphs 2 and 5 of Article 224 of the Tax Code of the Russian Federation); b) tax on the property of individuals (in relation to property used for business activities, with the exception of objects of taxation by the tax on the property of individuals included in the list determined in accordance with paragraph 7 of article 378.2 of the Tax Code of the Russian Federation, taking into account the features provided for in par. 2 paragraph 10 article 378.2 of the Tax Code of the Russian Federation).

Sample contract for the provision of services by the party applying the USN

Open article

• Article 169 of the Tax Code of the Russian Federation if, when determining the tax base by them in the manner prescribed by Chapters 23, 25, 26.1 and 26.2 of the Tax Code of the Russian Federation, income in the form of remuneration from the performance of these agreements is taken into account as income.

Info

Agreement No. for the provision of services in K-sk on March 04, 2018 Open Joint Stock Company Organization No. 1, hereinafter referred to as the Customer, represented by Director Ivan Ivanov acting on the basis of the Charter, on the one hand, and the Company with limited liability "Organization No. 2", hereinafter referred to as the "Contractor", represented by Director Petrov Petr Petrovich, acting on the basis of the Charter, on the other hand, have concluded this agreement as follows: 1.
Subject of the contract 1.1.
The provisions of chapter 26.2 of the Tax Code of the Russian Federation are used in the following articles:

• Article 161 of the Tax Code of the Russian Federation Features of determining the tax base by tax agents in accordance with Chapters 26.1, 26.2, 26.3, 26.5 of the Tax Code of the Russian Federation, they calculate and pay tax on the sale of goods specified in paragraph one of this clause, starting from the period in which these persons switched to the general taxation regime, until the day the circumstances that are the basis for loss of the right to exemption from the performance of taxpayer obligations or to the application of appropriate special tax regimes.

VAT is not subject to tax according to chapter 26.2 of the tax code of the Russian Federation

The use of a simplified taxation system is accompanied by the following positive aspects:

• the ability to choose from two taxation options “Income” and “Income reduced by the amount of expenses”;
• no need to maintain accounting records (only for individual entrepreneurs);
• lower tax rates;
• the possibility of deducting the amount of paid insurance premiums from the income received (when using the “Income minus expenses” scheme);
• no need to prove the validity of these costs during desk audits;
• the possibility of reducing the tax rate by regional legislative acts;
• the rarity of field tax audits

Payment of VAT under this taxation system is required only in case of import of products to the domestic market of the Russian Federation.

Individual entrepreneurs applying the simplified system of taxation are not recognized as taxpayers of value added tax, with the exception of value added tax payable in accordance with this Code when goods are imported into the territory of the Russian Federation and other territories under its jurisdiction (including tax amounts, payable at the end of the customs procedure of the free customs zone on the territory of the Special Economic Zone in the Kaliningrad Region), as well as value added tax paid in accordance with Articles 161 and 174.1 of this Code. Paragraph two became invalid on January 1, 2010. Other taxes, fees and insurance premiums are paid by individual entrepreneurs using the simplified taxation system in accordance with the legislation on taxes and fees.