Paying value added tax is an urgent systematic problem for every businessman. It would seem that the Hamlet question “to be or not to be?”, that is, “to pay or not to pay?” it can't be here. However, there is one: an individual entrepreneur can work with VAT, or he can refuse it. The Tax Code of the Russian Federation provides such an opportunity, it depends on the type of activity and on the choice of taxation system.
By accepting the general taxation system (OSNO), an individual entrepreneur must pay VAT; working on a simplified system (STS), he is exempt from paying value added tax. At first glance, it is easier to refuse to pay additional fees. But entrepreneurs Germany WhatsApp Number List do not always realize that, as they say, there is a blessing in disguise. What are the advantages of accepting VAT for payment?
If an individual entrepreneur plans contracts with large counterparties, then in order to increase his reputation and competitive attractiveness, his assets should include VAT deductions. In this case, working at OSNO is an advantage and a kind of guarantee for further business development for individual entrepreneurs. But for a small business that does not seek to "grow", the simplified tax system with the missing VAT "burdens" is quite acceptable and inexpensive.
But not always money is lost - sometimes they are returned in the form of a specific VAT deduction. This happens in cases where, for example, the goods appear in a transaction that is also subject to VAT: in order to avoid double taxation, the IP has the right to a refund. Further, if the goods are defective and, accordingly, returned to the supplier as illiquid, but the tax on it has been paid: the affected entrepreneur-supplier is entitled to compensation. Most sole proprietors deal with the lease of premises for their activities, and if this lease is municipal, then the rent tax is reimbursed to the tenant-individual.
As you can see, the payment of VAT is fraught with many profitable options. But if, nevertheless, an individual entrepreneur is determined to try not to deal with VAT, here he can be advised, firstly, to refer to Art. 145 of the Tax Code of the Russian Federation, which we have already mentioned, and cut the size of your profit: if in three months it has not reached the limit of 2 million rubles, you can not pay tax. Secondly, there is an option to increase production costs and, as a result, reduce the tax base. The more the company spends, the lower the VAT.