How to calculate VAT 18% of the amount - formula and examples

VAT is a value added tax. Operates in the Russian Federation since 1992. According to the form of inclusion in the budget, it belongs to the type of indirect. When purchasing goods, the consumer pays the seller the tax included in the price.

This system works like this:

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1. The buyer acquires the goods with the aim of reselling or using them for the production of other goods, at the same time, he paid the tax included in the price;
2. Further, after production, a new product will be sold to the end user at a price formed from the sum of all costs, including the cost of materials (excluding VAT, see clause 3), labor costs, etc. + 18% VAT to the received value;
3. The manufacturer, when calculating his tax payments to the budget, can deduct from the amount of tax received from consumers the amount of tax that he paid for the purchased raw materials.

Tasks that the built system of VAT payment is designed to solve:

• exclude multiple tax collection between the stages of the production and commercial cycle;
• reduce the risk of tax evasion;
• frees exporters from payments, raises the competitiveness of national products.

Value Added Tax Rates in Russia:

• 18% basic.
• 10%, for selected products from the list.
• 0%, on the operations set out in art. 149 of the Tax Code of the Russian Federation.

Taxpayers must keep separate records of transactions for each tax rate.

Who pays VAT and who does not

VAT taxpayers are:

• companies with legal status persons, regardless of the type of ownership and relationship to departments that are engaged in production and / or commercial activities, incl. insurance companies and banks (with the exception of tax-free transactions), international associations, foreign residents, non-profit organizations (when carrying out trading operations);
• persons carrying valuables through customs.

All payers are required to register with the tax authority.

Do not pay value added tax:

1. Organizations, enterprises and individual entrepreneurs translated into:
   • simplified taxation system;
   • payment of the unified agricultural tax;
   • imputed income by types of activities subject to UTII taxation;
2. From 2008 to 2016 for work on holding and organizing the Olympic and Paralympic Games in Sochi by foreign organizers.

A company (or individual entrepreneur) may be exempt from tax payments based on the amount of revenue received from the sale of goods or services over the past three months, if this total income (excluding tax) is less than 2 million rubles. Applicable only for operations in the territory of the Russian Federation.

The period for VAT payment is quarter. The transfer of funds and the filing of a tax return is made no later than the 20th day of the month following the expired three-month period. When transporting valuables through customs, payments are made in accordance with customs legislation.

According to experts' forecasts, no change in the VAT rate is expected in the coming years.

How to calculate VAT 18 percent of the amount

Formula for calculating VAT:

X \u003d (Amount * 18) / 100, where X is the amount of tax.

The formula for calculating VAT from the total amount with tax:

X = (AmountN/118) * 18, where AmountN is the total cost including tax.

The formula for calculating the amount without VAT:

X = (Amount N / 118) * 100, X - amount without tax, Amount N - amount with VAT.

The formula for calculating the amount with VAT:

AmountN = Amount * 1.18, where Amount - the amount without VAT, AmountN - the amount with VAT.

The formula for calculating the amount of tax to be paid to the budget, minus VAT paid to suppliers:

SumP - the cost of the supplier, SumT - the cost of the intermediary.

VAT \u003d Amount T - Amount P.

Task for example VAT calculation

The seller purchased from the supplier products in the amount of 10,000, a total of 50 pieces. at a price of 200 rubles. a piece. The supplier included in the price an 18% tax, which he paid to the budget. From this we can conclude that 200 rubles. this is 118%, of which 18 is tax and 100 is the real price.

Having made a proportion, we calculate the price without tax:

200/118 \u003d X / 100, where X is the cost without VAT;

X \u003d (200 * 100) / 118 \u003d 169.5 rubles.

The value of VAT per item is equal to 200 - 169.5 \u003d 30.5 rubles.

Total VAT for the entire batch 30.5 * 50 \u003d 1525 rubles. This amount is called the “incoming” contribution.

Confirmation for the tax office of the purchase of goods with VAT included can be a check, invoice, invoice.

Assume that, taking into account all costs and the desired profit, the price of one product is set at 1000 rubles. After the sale of the entire batch, the proceeds will be 50,000.

In it, the merchant, similarly to the supplier, included an 18% tax, which is:

50000/118 \u003d X / 18, where X is the value added tax;

X \u003d (50000 * 18) / 118 \u003d 7627 rubles. This is the “outgoing” contribution.

The seller must pay the difference between “outgoing” and “incoming” VAT to the budget:

7627 - 1525 = 6102 rubles

The second way.

Calculate the difference between the purchase price and the retail price:

50,000 - 10,000 \u003d 40,000 rubles. This value is taken as 118% or 1.18, then the VAT will be:

40000 / 1.18 \u003d 33898 rubles. (or is it 100%);

40000 – 33898 = 6102.

Ultimately, the buyer will pay the tax cost.

Using the 1C program in accounting

Enterprise is one of the most common platforms in Russia. The Accounting configuration is used in warehouse, accounting and tax accounting. The developer is from the Russian Federation, so the program takes into account all existing laws and requirements of Russian legislation. The functionality of 1C allows you to create invoices, books of purchases and sales, reflect the calculations of taxes and fees on the accounts of the organization.

When entering data on the receipt or sale of the amount for transfer to the budget are calculated automatically according to the rates specified in the settings and directories. After posting the document, the program itself generates and records postings on accounts.

Based on the entered data, you can create and send an invoice for printing. The built-in “VAT Accounting Assistant” will help simplify the user’s work, which is relevant for enterprises that do not use a simplified VAT calculation system.

The key to the flawless construction of accounting in 1C is the correctly set parameters.

Debugging 1C: Accounting for calculating VAT 18%:

Through the menu, open the form for setting the company's accounting policy, go to the first tab "VAT".

The indicators are set individually for each firm for a period of one year.

The enterprise maintains either simplified tax accounting or “non-simplified” accounting. In the first case, it is enough to check the box of the same name.

Maintaining “not simplified” accounting in the system is as detailed as possible and has various mechanisms:

• Control of transactions with VAT 0%;
• Inclusion of the tax in material and production costs, if it was not deductible, when transferring it to a taxable UTII at retail, or when selling goods outside the Russian Federation;
• The tax accepted for deduction should be included in the composition of other expenses for costs, the economic operations of which are not taxed or, upon sale, the rate is 0%;
• Keeping batch records of goods and transactions subject to various VAT.

• paying UTII;
• carrying out capital construction;
• carries out import or export operations;

VAT Accounting tab

• The first two parameters (period and tax base) are not available for editing in the new editions; these details are set by default due to the changed legislation.
• The tax will be taken into account immediately during the implementation, if there is a checkbox "Charge VAT on shipment ...".
• The “Organization performs…” checkbox enables batch accounting functions, a new tab “Without VAT and 0%” appears to specify the exact settings.

The third tab defines the algorithm for determining “incoming” and “outgoing” VAT amounts. These parameters can be set individually for each counterparty agreement.

Tab "Amount differences" for accounting and smoothing the difference when calculating the tax. For example, if contracts are concluded using y. units (currency, except rubles), and the amounts in the documents were reflected in rubles. set the checkbox “Invoices for settlements to be generated in rubles”.

There are two ways to reflect VAT in documents:

• VAT on top.
• including VAT.

The choice is not regulated anywhere, it depends on the convenience of perception by employees. This option is located in the pricing policy settings, or on the “Price and currency” tab right in the document.

1C tools allow the user to make manual adjustments to accounting figures.