In this article we will look at VAT on the construction of fixed assets. We will learn about the procedure for accounting for VAT during construction, VAT deductions during construction in 2018. We will analyze the procedure for issuing invoices.

The procedure for reflecting VAT during the construction of fixed assets has its own characteristics. The tax accounting mechanism and the specifics of obtaining a tax deduction depend on many factors: how the construction was carried out - economic or contract, how the object was handed over - at one time or in stages, etc. Today we will understand the features of VAT accounting during the construction of OS and provide answers to common questions on the topic.

Normative base

The procedure for reflecting VAT during the construction of fixed assets, as well as the mechanism for obtaining a tax deduction, is regulated by the following legislative acts:

No.	Normative act	Description
1	PBU 6/01	When reflecting operations for the construction of fixed assets (on your own, through contractors, in a mixed way), you should be guided by the general rules of accounting, in particular, the provisions provided for in PBU 6/01 “Accounting for fixed assets.”
2	NK chapter 21	The regulatory document describes the general procedure for recording VAT (taxpayers, taxable transactions under fixed assets, exemptions from payment, etc.).
3	NK Art. 171	The Tax Code describes the procedure for using the right to a tax deduction during the construction of an operating system.
4	NK clause 10 art. 167	According to this provision of the Tax Code, the company’s obligations to pay VAT to the budget arise at the moment the completed asset is accepted onto its balance sheet.
5	Government Decree No. 914 of 02.12.2000	The document describes the mechanism for issuing invoices during the construction of operating systems, as well as the specifics of reflecting documents in the Sales Book.
6	Explanations in letters from ministries and departments	Special cases and controversial situations regarding VAT accounting during the construction of fixed assets are discussed in letters from various departments. In particular: · letter of the Ministry of Finance No. ШТ-6-03/527 dated 07/04/2007 describes the procedure for determining the tax base for a mixed type of OS construction (the company’s own forces + contractors); · in letter of the Ministry of Finance No. 04-03-11/91 dated 05.11.2003 indicates the occurrence of tax obligations for a company that carries out construction and installation work on its own (if such work is not capital).

Accounting for VAT during OS construction

OS construction by the organization

If technical capabilities and financial resources are available, the company has the right to create an OS object on its own. In this case, the organization’s employees are involved in the work, and the costs of purchasing the necessary raw materials are borne directly by the company.

All costs associated with the production of OS should be reflected according to Dt 08.3. According to CT, production accounts can be used (20, 23, 25, 26), accounts for remuneration of company employees involved in the construction of the facility (70, 71), accounts for reflecting the raw materials used (10), etc.

Let's look at an example:

LLC “Status Plus” carried out the construction of the office space using its own resources:

• construction lasted from 04/01/17 – 05/31/17;
• for the construction of “Status Plus” materials were purchased in the amount of 602,904 rubles, VAT 91,968 rubles, of which used in April - 201,501 rubles, VAT 30,737 rubles, in May - 401,403 rubles, VAT 61,231 rubles;
• in the period 04.17 – 05.31.17, “Status Plus” workers were paid a salary in the amount of 87,650 rubles. (including contributions to extra-budgetary funds).

The office was put into operation on 05/31/17 (act KS-2 and certificate KS-3 were issued). The following entries were made in the “Status Plus” accounting:

date	Debit	Credit	Sum	Description
30.04.17	10.8	60	RUR 511,206	Materials purchased for construction are reflected (602,904 rubles - VAT 91,968 rubles)
30.04.17	19	60	RUB 91,968	VAT is reflected on purchased materials
30.04.17	68 VAT	19	RUB 91,968	VAT on the cost of cement materials is deductible
30.04.17	08.3	70	RUB 87,650	The salaries of workers involved in office construction are taken into account (for April 2017)
30.04.17	08.3	10.8	RUR 170,764	Materials were transferred for construction in April 2017 (201,501 rubles - 30,737 rubles).
31.05.17	08.3	70	RUB 87,650	The salaries of workers involved in office construction are taken into account (for May 2017)
31.05.17	08.3	10.8	RUR 340,172	Materials were transferred for construction in May 2017 (401,403 rubles - 61,231 rubles).
31.05.17	01	08.3	RUB 686,236	The office space was put into operation (RUB 87,650 * 2 months + RUB 170,764 + RUB 340,172).
31.05.17	19	60	RUR 123,571	VAT charged on construction and installation work ((RUB 87,650 * 2 months + RUB 511,206) * 18%)
31.05.17	68 VAT	19	RUR 123,571	VAT is accepted for deduction

OS creation through contractors

Under current legislation, the cost of work of contractors hired for the construction of an environmental facility is subject to VAT in the general manner. As when creating an operating system on an economic basis, an organization engaging contractors must reflect VAT on the cost of work at the time the facility is put into operation (based on the KS-2 act and the KS-3 certificate). On the same day, the VAT amount should be deducted.

Let's look at an example:

JSC Concord entered into an agreement with the contractor Master Plus LLC to carry out work on the construction of a warehouse. According to the contract:

• the work estimate is 104,704 rubles, VAT 15,972 rubles;
• Concord supplies Master Plus with part of the materials necessary for construction;
• "Concord" monthly reimburses the cost of materials purchased by "Master Plus" and used in construction;
• “Master Plus” must hand over the OS object by 08/01/17.

In June 2017, Concord purchased a batch of cement in the amount of 33,208 rubles, VAT 5,066 rubles. and handed it over to Master Plus.
In June and July 2017, Master Plus purchased paint and varnish products and materials for finishing work (linoleum, wallpaper) for a total amount of 48,706 rubles, for which it provided the corresponding reports (for June - 28,306 rubles, for July - 20,400 rubles).
07/31/17 between “Concord” and “Master” plus the object acceptance certificate (KS-2) and certificate KS-3 were signed. Based on the results of construction, the cost of work corresponds to the amount indicated in the estimate.

The following entries were made in the Concord accounting records:

date	Debit	Credit	Sum	Description
30.06.17	10.8	60	RUR 28,142	Materials (cement) purchased by Concord for transfer to the contractor are reflected (33,208 rubles - 5,066 rubles)
30.06.17	19	60	RUR 5,066	VAT on purchased cement is reflected
30.06.17	68 VAT	19	RUR 5,066	VAT on the cost of a batch of cement is accepted for deduction
30.06.17	10.7	10.8	RUR 28,142	A batch of cement was transferred to Master Plus for construction
30.06.17	08.3	10.7	RUB 28,306	The cost of materials purchased by Master Plus and used during construction in June 2017 is taken into account
31.07.17	08.3	10.7	20,400 rub.	The cost of materials purchased by Master Plus and used during construction in July 2017 is taken into account
31.07.17	08.3	60	RUR 88,732	The initial cost of the warehouse space is reflected: contract work (RUB 104,704 – RUB 15,972)
31.07.17	19	60	RUR 15,972	VAT on contract work has been taken into account
31.07.17	68 VAT	19	RUR 15,972	VAT on contract work is deductible
31.07.17	01	08.3	RUR 137,438	The warehouse was put into operation (RUB 88,732 + RUB 28,306 + RUB 20,400)

Phased delivery of the facility

Delivery of an unfinished facility

When reflecting VAT on transactions with unfinished construction projects, the following features should be taken into account:

1. When purchasing materials for use in OS construction, take into account and deduct VAT in the general manner (at the time the materials are received for accounting). This applies to both the purchase of raw materials during self-construction and the purchase of materials for transfer to the contractor.
2. If the contractor has transferred the OS to the company, recognized as an unfinished construction project (work on the project has not been completed, but the KS-2 act and KS-3 certificate have been signed for the cost of the work performed), then VAT must be charged on the cost of the work performed (similar to the stage-by-stage delivery of the facility).
3. When constructing an OS on a self-employed basis, VAT is reflected and deducted on the basis of invoices drawn up by the company. Regardless of the degree of completion of the project, invoices are issued monthly for the amount of work performed (worker wages) and materials purchased.

Preparation of invoices

The company has obligations to issue invoices if the construction is carried out on its own. When building an OS on a self-employed basis, the company should issue an invoice, since it is the basis for reflecting VAT and accepting it for deduction.
The document is drawn up based on the results of the month, it includes the total amount of work and materials used during construction. In the lines “Seller”, “Consignee and his address”, “Consignor and his address”, “Buyer” the company must indicate its own data. After issuing an invoice, one copy is registered in the Sales Book; after VAT is transferred to the budget, the second copy is registered in the Purchase Book. Invoices received from contractors and suppliers are registered in accordance with the general procedure and are also the basis for deducting VAT.

VAT on the construction of fixed assets: answers to questions

Question No. 1: Based on the completion of the construction of the basement, the contractor GlavStroy LLC handed over the KS-2 certificate and the KS-3 certificate to the customer Sigma JSC. At the same time, the act indicates the amount under the contract (without indexation), and the certificate indicates the amount taking into account indexation. Are the documents correctly completed?

Answer: The explanations of the Ministry of Finance do not prohibit such execution of the KS-2 act and the KS-3 certificate. To reflect VAT, the Sigma accountant must draw up a certificate calculating the indexation amount and indicating the amount of VAT.

Question No. 2: In August 2017, an unfinished construction facility was mothballed at Kompakt JSC. The contractor Kontur LLC was involved in the conservation work (cost of work - 12,303 rubles, VAT 1,877 rubles). How should Kompakt record the amount of VAT on conservation work?

Answer: VAT accounting in this case is carried out in accordance with the general procedure. Based on the invoice and upon signing the work acceptance certificate, the following should be reflected in the Kompakt accounting: Dt 19 Kt 60 – VAT accounting; Dt 68 VAT Kt 19 – VAT deductible.

Despite the fact that construction and installation work has been subject to VAT since January 1, 2001, disputes regarding the interpretation of the term “construction and installation works for own consumption” are sometimes resolved only in court.

The tax base for these transactions is determined on the last day of each tax period (Clause 10, Article 167 of the Tax Code of the Russian Federation). The taxpayer has the right to deduct the accrued amount of VAT from the cost of construction and installation work (paragraph 2, clause 5, article 172 of the Tax Code of the Russian Federation).

Problematic issues related to the terminology “construction and installation work for own consumption”.

Before moving on to the composition of construction and installation work included in the object of VAT taxation, let’s define the concept of “construction and installation work for our own consumption.”

The provisions of tax legislation do not define the concept of “construction and installation works for one’s own consumption”; clause 4 of Article 38 of the Tax Code of the Russian Federation discloses only the general concept of work performed for tax purposes.

According to the legal position expressed in the Decision of the Supreme Arbitration Court of the Russian Federation dated March 6, 2007 No. 15182/06, to define the concept of “construction and installation works for own consumption” it is recommended to be guided by the explanations contained in the regulations of Rosstat of the Russian Federation.

The list of construction and installation works is given in clause 3.1 of the Methodological Provisions on the system of statistical indicators developed in the system of construction and investment in fixed capital, approved. By order of Rosstat of the Russian Federation dated March 11, 2009 No. 37. These include, in particular, construction work on the construction, reconstruction, expansion, technical re-equipment of permanent and temporary buildings and structures and related work on the installation of reinforced concrete, metal, wood and other building structures.

According to clause 19 of the Order of Rosstat of the Russian Federation dated October 28, 2013 No. 428 “On approval of the Instructions for filling out federal statistical observation forms: No. P-1 “Information on the production and shipment of goods and services”, No. P-2 “Information on investments” , No. P-3 “Information on the financial condition of the organization”, No. P-4 “Information on the number, wages and movement of workers”, No. P-5 (m) “Basic information on the activities of the organization” for construction and installation works (including installation and commissioning equipment necessary for the operation of buildings), performed in an economic way, includes work carried out for its own needs by the organization’s own resources, including work for which the organization allocates workers for the construction of the main activity with payment of wages according to construction orders, as well as work performed construction organizations for their own construction (not within the framework of construction contracts, but, for example, during the reconstruction of their own administrative building, the construction of their own production base, etc.).

The list of works included in the construction and installation work is given in the All-Russian Classifier OK 029-2001. The vast majority of these works are related to the construction of facilities and the installation of building elements and structures. The classification of activities for the installation and installation of building elements and equipment necessary for the operation of buildings is carried out according to group 45 “Construction”.

Thus, sections 45.3 “Installation of engineering equipment of buildings and structures”, subsection 45.31 “Electrical installation work” includes the following types of work:

Installation in buildings and other construction sites;

Electrical wires, electrical fittings and electrical appliances;

Telecommunication systems;

Electric heating systems;

Radio and television antennas;

Fire alarm systems;

Anti-burglary (security) alarm systems;

Elevators and escalators;

Lightning rods, etc.

subsection 45.34 “Installation of other engineering equipment” includes:

Installation of lighting and signaling systems for roads, railways, airfields and ports, performance of other electrical installation work not included in other groups;

Installation in buildings and other construction sites of fittings and equipment not included in other groups.

But the “statistical” definition is also generalized, which gives tax authorities the opportunity to equate any work related to the current, major repairs of fixed assets to construction and installation work for their own consumption.

The taxpayer has to prove in court that certain works are not construction and installation work for their own consumption:

Types of work that tax authorities include under the concept of “construction and installation works for own consumption”	Court verdict	Details of the court decision
Work on the installation of the chief engineer's office and the installation of the roof.	In the case where construction or installation work is not of a capital nature (not related to the creation of new fixed assets and does not change the initial cost of existing fixed assets), the object of VAT taxation does not arise. Work in the building of an administrative and amenity plant is not work of a capital nature, entailing a change in the initial cost of the fixed asset.	Resolution of the Fourth Arbitration Court of Appeal dated April 3, 2014 No. A78-4284/2013.
Purchase of equipment.	Costs for the purchase of equipment, including costs associated with its acquisition, are independent costs and are not included in the costs provided for construction work. Accordingly, they are not recognized as expenses for carrying out construction and installation works for one’s own consumption and are not subject to inclusion in the tax base under Article 159 of the Tax Code of the Russian Federation.	Resolution of the Fifth Arbitration Court of Appeal dated April 3, 2014 No. A51-21000/2013.
Restoration work related to cable damage.	Carrying out restoration work on the damaged cable did not entail the creation of a new fixed asset item, nor did it lead to an increase in the initial cost of a previously existing item, and therefore there were no grounds for charging VAT on the cost of the work.	Decision of the Arbitration Court of the Altai Territory dated January 20, 2014 No. A03-10206/2013.
Restoration work to eliminate damage to the water supply network.	VAT cannot be charged on the amount of damage due to the fact that work to eliminate damage to the water supply network is aimed at restoring their normal functioning, and is not construction and installation work for one’s own consumption.	Decision of the Arbitration Court of the Samara Region dated January 17, 2014 No. A55-16332/2013.
Work on cladding the flight of stairs at the entrance to the bar, manufacturing and installation of metal structures for the freight-passenger elevator shaft.	The work performed is a major overhaul. There are no grounds for charging VAT on the cost of work performed.	Resolution of the Federal Antimonopoly Service of the North-Western District dated December 12, 2013 No. A66-11903/2012.
Work on redevelopment of the library premises in the building (dismantling wall cladding, baseboards, stands, etc.).	As a result of the work performed, a new fixed asset item was not created, and the initial cost of the fixed asset in operation was not changed. The courts came to the correct conclusion that the tax inspectorate had no grounds for including the cost of the disputed work in the VAT tax base.	Resolution of the Federal Antimonopoly Service of the East Siberian District dated November 1, 2013 No. A19-3291/2013.

As noted in the Resolution of the Fifth Arbitration Court of Appeal dated April 3, 2014 No. A51-21000/2013, construction and installation work for one’s own consumption involves the construction of objects exclusively for use in the activities of the enterprise, and not for the purpose of their further sale, and therefore, when they are carried out, the taxpayer (developer) ) acts as the producer of the work and as the final consumer, that is, after completion of the construction and installation work on its own, for its own consumption, the object completed by capital construction is used by the organization (entrepreneur) that carried out the construction and installation work.

Thus, in order for construction and installation works to be considered carried out for one’s own consumption, the following requirements must be met in total:

The work is associated with the implementation of capital construction in the form of new construction, as well as reconstruction, expansion and technical re-equipment of existing enterprises and non-production facilities (Regulations on accounting for long-term investments, approved by Letter of the Ministry of Finance of the Russian Federation dated December 30, 1993 No. 160, Letter of the Ministry of Finance of the Russian Federation dated 05.11.2003 No. 04-03-11/91);

The work is performed for the needs of the organization (entrepreneur);

For example, when constructing objects for the purpose of their subsequent sale, such construction work cannot be qualified as carried out for one’s own consumption (Letter of the Federal Tax Service dated July 8, 2014 No. GD-4-3/13220@, Determination of the Supreme Arbitration Court of the Russian Federation dated February 22, 2012 No. VAS-816/12, Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated November 23, 2010 No. 3309/10).

The work is carried out using the organization’s (entrepreneur’s) own resources;

For the work, workers of the main activity are involved, that is, those who have concluded employment contracts with this organization (entrepreneur);

The above-mentioned employees of the organization (entrepreneur) are paid wages according to construction orders.

As the practice of audits shows, when installing (assembling) equipment and manufacturing household equipment, taxpayers calculate VAT on the cost of work performed on their own, believing that we are talking about performing construction and installation works for their own consumption. To a large extent, this is facilitated by the explanation of the Ministry of Finance of the Russian Federation (Letter No. 03-07-11/142 dated May 29, 2007), regarding the need to charge VAT on operations related to the installation of equipment performed by the organization’s own resources.

EXAMPLE No. 1

In one of the divisions of JSC “Lutik”, shelving for storing finished products was manufactured.

The following entries will be created in the accounting records of JSC Buttercup:

			Amount, in rubles
Construction materials purchased for the manufacture of shelving have been accepted for accounting.
VAT is taken into account on the cost of building materials.
VAT is accepted for deduction.
The cost of written-off building materials is taken into account.
The department's costs associated with the manufacture of shelving are taken into account.
Reflected as part of capital investments are the costs associated with the manufacture of racks. Calculation: 100,000 rub. + 25,000 rub. = 125,000 rub.

In this case, the object of VAT taxation does not arise in the form of the cost of construction and installation work performed for one’s own consumption, if fixed assets are not manufactured within the framework of construction and installation work.

Thus, considering the taxpayer’s cassation appeal regarding the obligation to charge VAT on the cost of work performed on the manufacture of trailers and lockers for workers, the Federal Antimonopoly Service of the North-Western District (Resolution dated June 13, 2006 No. A26-11042/2005-217) noted the following: “... The taxpayer did not carry out construction and installation work during the manufacture of trailers and lockers. By virtue of sub. 2 p. 1 art. 146 of the Tax Code of the Russian Federation for the purposes of Chapter 21 of the Tax Code of the Russian Federation, the object of VAT taxation is the transfer of goods on the territory of the Russian Federation (performance of work, provision of services) for one’s own needs, the costs of which are not deductible (including through depreciation deductions) when calculating corporate income tax . The costs of manufacturing trailers and lockers for workers must be deducted when calculating income tax in accordance with subsection. 7 clause 1 art. 264, art. 252 of the Tax Code of the Russian Federation...".

Since the production of fixed assets by one’s own resources for production needs is not subject to VAT (due to the absence of construction and installation work for one’s own consumption), the “input” VAT on purchased materials (work, services) used in the production of fixed assets is included in the tax deductions in the generally established manner, that is, subject to the conditions provided for in paragraph 2 of Article 171 and paragraph 1 of Article 172 of the Tax Code of the Russian Federation.

The decision of the Federal Antimonopoly Service of the Ural District dated February 22, 2005 No. F09-587/05-AK confirms the legitimacy of this approach: “... the taxpayer manufactured containers for his own needs, which were registered as fixed assets. Thus, the applicant justifiably applied a tax deduction for VAT in the general manner, including for VAT paid to suppliers for materials used for the manufacture of containers.”

Answering a taxpayer’s question about the occurrence of VAT taxation costs for the costs of manufacturing non-standardized equipment on our own, representatives of the financial department (Letter of the Ministry of Finance of the Russian Federation dated April 13, 2006 No. 03-04-11/65) noted that “... if the costs of manufacturing non-standardized equipment with one’s own resources are accepted for deduction when calculating corporate income tax, then the transfer of such equipment for one’s own needs is not subject to VAT taxation.”

Thus, in this situation (despite the formation of capital investments in accounting), VAT is not charged on the cost of construction and installation works carried out in-house.

EXAMPLE No. 2

A gear crushing machine has been installed in one of the divisions of Lyutik JSC. The installation of the machine was carried out by the organization's employees.

The costs of the department that installed the gear crushing machine include the following cost elements:

Workers' wages;

Payroll deductions;

Electricity;

Other shop overheads.

The above expenses in accounting increase the initial cost of the machine.

According to the All-Russian Classifier of Types of Economic Activities OK 029-2001, the above works do not relate to construction and installation works (installation of equipment has an OKVED code different from the construction and installation work code). As noted in the Resolution of the Federal Antimonopoly Service of the Moscow District dated March 28, 2012 No. A40-10464/11-129-46, “... the main feature that allows defining work as construction and installation work is the execution of construction, of which installation work is a part.”

Installation of equipment outside the scope of construction work does not fall under the definition of “construction and installation work for one’s own consumption.”

Thus, as in example No. 1, the organization does not have the obligation to calculate VAT on the cost of installation of the machine.

One of the criteria for classifying completed work as construction and installation work for one’s own consumption is the work being performed by the organization itself, i.e. employees who are in an employment relationship.

EXAMPLE No. 3

The organization carried out construction and installation works with the involvement of individuals on the basis of civil contracts. Work on repairing the premises, installing a cage line, and repairing the vessel was carried out by individuals under civil contracts, who were not engaged in the taxpayer’s main activity, and no employment contracts were concluded with them.

When conducting an on-site inspection, the tax authority assessed these works as construction and installation work for its own consumption with the corresponding VAT charge.

However, as the judges noted (Decision of the Arbitration Court of the Republic of Karelia dated July 31, 2014 No. A26-1492/2014), in order for construction and installation works to be considered carried out on their own - in an economic way, all the requirements of the State Statistics Committee must be collectively met: work performed for the needs of the organization; the work is carried out by non-construction organizations on their own; for work, the organization allocates workers for the construction of the main activity, that is, those who have concluded employment contracts with this organization; the above-mentioned employees of the organization are paid wages according to construction orders.

It is impossible to equate individuals who performed work under concluded civil contracts with their own employees, and the work performed by them with work performed by the organization on its own, which is subject to VAT taxation.

Thus, in this situation, the tax inspectorate had no legal grounds for including these costs in the cost of construction and installation work for its own consumption as an object of VAT taxation.

Composition of construction and installation costs included in the VAT tax base

When performing construction and installation work for one's own consumption, the tax base is determined as the cost of work performed, calculated on the basis of all actual expenses of the taxpayer for their implementation (clause 2 of Article 159 of the Tax Code of the Russian Federation).

What is included in the taxpayer's actual expenses? The tax base takes into account only expenses incurred by the taxpayer himself, incl. and costs for the development of design estimates (Letter of the Ministry of Finance of the Russian Federation dated March 22, 2011 No. 03-07-10/07).

The cost of construction and installation works performed by contractors is not included in the amount of accrued “construction and installation” VAT (Letter of the Ministry of Finance of the Russian Federation dated 09.09.2010 No. 03-07-10/12, Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated 02.09.2008 No. 4445/08 , Decision of the Supreme Arbitration Court of the Russian Federation dated 03/06/2007 No. 15182/06, clause 19 of the Order of the Rosstat of the Russian Federation dated 10/28/2013 No. 428) both with a mixed method of performing work, and entirely by the contractor. If an organization transfers customer-supplied materials to the contractor, then the tax base in terms of construction and installation work for its own consumption also does not arise (Letter of the Ministry of Finance of the Russian Federation dated March 17, 2011 No. 03-07-10/05).

However, in a number of cases, even in the absence of actual costs for construction and installation work, tax authorities try to charge additional VAT using the calculation method for determining the cost of construction and installation work performed.

EXAMPLE No. 4

The taxpayer carried out construction and installation work on its own for its own needs for the construction of a capital construction project - a store building.

The work was carried out by the taxpayer’s family without hiring workers or paying them wages. Based on this, the taxpayer did not have actual expenses for construction and installation work and, accordingly, the tax base for calculating and paying VAT on operations to perform these works did not arise.

However, during the audit, the tax authority assessed additional VAT on the cost of construction and installation work performed using the calculation method, guided by paragraphs. 7 clause 1 art. 31 of the Tax Code of the Russian Federation, due to the taxpayer’s lack of documents confirming the amount of expenses incurred. The basis for determining the cost of work was information on specific indicators of the cost of a unit of measurement of construction volume, established in the collection No. 26 “UPVS of buildings and structures on state farms, collective farms, intercollective farms and other agricultural enterprises and organizations.”

That is, when calculating the cost of construction and installation work carried out economically, the tax authority calculated the estimated cost of a capital construction project, including both the costs of carrying out the work and the costs of purchasing materials.

At the same time, as noted in the Resolution of the Fifth Arbitration Court of Appeal dated April 3, 2014 No. A51-21000/2013, the cost of a fixed asset is not identical to the concept of the cost of construction and installation work, and therefore the VAT tax base established by the inspection does not correspond to either by size, nor by right of the taxpayer’s obligation to pay VAT.

Let us remind you that starting from January 1, 2009, changes were made to clause 5 of Article 172 of the Tax Code of the Russian Federation regarding the application of deductions for construction and installation works

Since deductions and accrual of “construction and installation” VAT are made in the same tax period (at the time the tax base is determined), the question arises about the advisability of such a sophisticated mechanism for determining VAT payable. Indeed, in cases (and, in practice, these are the majority) when:

The constructed facility is intended for use in activities subject to VAT;

The cost of the object is repaid through depreciation deductions, taken into account in expenses when calculating income tax (clause 6 of Article 171 of the Tax Code of the Russian Federation)

VAT on construction and installation works is zero and the budget receives nothing.

And only if one of the conditions is not met (for example, the use of the constructed facility in an “imputed” activity) the VAT previously accepted for deduction is restored. If construction and installation work is financed from budgetary funds, then “construction and installation” VAT is not deductible due to the fact that the constructed facility is not intended for use in activities subject to VAT, and is also not depreciated in tax accounting. And in this case, the correct classification of the work performed as construction and installation work is of great importance.

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What should the chief accountant know? The issue of responsibility is perhaps the most pressing issue for every employee whose responsibilities include making decisions on important areas of the employer’s activities. The most responsible job is, of course, performed by the chief accountant. His work is related to making financial decisions, preparing accounting and tax documents, and submitting these documents to authorized bodies. In this material we will consider what kind of responsibility can be applied to the chief accountant, and what he risks. More details about: - administrative; - disciplinary; - material; - criminal and subsidiary liability. And also about fines, penalties and criminal sentences against the chief accountant, see the material prepared by the lawyer of the RosCo - Consulting and Audit company, Kirill Bogoyavlensky. Read: https://site/press/za_chto_otvechaet_glavnyy_bukhgalter/ All the most interesting things about taxes, law and accounting from the leading consulting company in Russia "RosCo". Stay up to date with the latest news, watch and read us where it is convenient for you: YouTube channel - https://www.youtube.com/c/RosCoConsultingaudit/ Facebook - https://www.facebook.com/roscoaudit/ VKontakte - https://vk.com/roscoaudit Twitter - https://twitter.com/RosCo_audit Instagram - https://www.instagram.com/rosco.

Regardless of the degree of completion of the project, invoices are issued monthly for the amount of work performed (worker wages) and materials purchased. Issuing invoices The company has obligations to issue invoices if the construction was carried out on its own. When constructing an OS on a self-employed basis, the company should issue an invoice, since it is the basis for reflecting VAT and accepting it for deduction. The document is drawn up at the end of the month, it includes the total amount of work and materials used in construction. In the lines “Seller”, “Consignee and his address”, “Consignor and his address”, “Buyer” the company must indicate its own data. After issuing an invoice, one copy is registered in the Sales Book; after VAT is transferred to the budget, the second copy is registered in the Purchase Book.

Accounting and taxation of construction and work carried out on a self-employed basis

The document “Calculation of VAT on construction and installation work (economic method)” is intended for calculating VAT on construction and installation work performed by economic method, in accordance with clause 10 of Article 167 of the Tax Code of the Russian Federation. VAT is accrued on construction and installation work performed in-house, on objects that are not accepted for accounting as fixed assets, on the last day of the month of each tax period, which is established in the accounting policy (accounting and tax accounting).
To avoid repeated accrual, at the end of the tax period, only one document for calculating VAT for construction and installation work in a business manner can be entered for an organization.

Programs

When materials used in construction are received, VAT on their cost should be reflected by posting Dt 19 Kt 60. Also, upon receipt of materials, VAT deduction is reflected.

Read also the article: → “How to calculate VAT on an amount in 2018?” Let's consider an example: Status Plus LLC carried out the construction of office space on its own:

• construction lasted from 04/01/17 – 05/31/17;
• for the construction of “Status Plus” materials were purchased in the amount of 602,904 rubles, VAT 91,968 rubles, of which used in April - 201,501 rubles, VAT 30,737 rubles, in May - 401,403 rubles, VAT 61,231 rubles;
• in the period 04.17 – 05.31.17, “Status Plus” workers were paid a salary in the amount of 87,650 rubles. (including contributions to extra-budgetary funds).

The office was put into operation on 05/31/17 (act KS-2 and certificate KS-3 were issued).

Accounting for construction and installation works for own consumption in 1s 8

VAT accrued on construction and installation work ((87,650 rubles * 2 months + 511,206 rubles) * 18%) 05/31/17 68 VAT 19,123,571 rubles. VAT accepted for deduction Creation of fixed assets through contractors Within the framework of current legislation, the cost of work of contractors hired for the construction of an OS facility is subject to VAT in the general manner.

As when creating an operating system on an economic basis, an organization engaging contractors must reflect VAT on the cost of work at the time the facility is put into operation (based on the KS-2 act and the KS-3 certificate). On the same day, the VAT amount should be deducted. Let's consider an example: Concord JSC entered into an agreement with the contractor Master Plus LLC to carry out work on the construction of a warehouse.

VAT on the construction of fixed assets in 2018

Attention

There are two modes for filling out the document:

• determining the tax base when performing construction and installation work for own consumption on the last day of the month of each tax period;
• taking into account the provisions of the transition period reflected in paragraph 6 of Article 3 of Federal Law No. 119-FZ of July 22, 2005. (VAT accrual on construction and installation work carried out on a business basis during 2005).

Automatic completion of the document is carried out on the basis of debit turnover of account 08.03 “Construction of fixed assets” according to the “Self-financing” construction method. When filling out the document, the amounts of VAT already accrued in the selected tax period for construction and installation work using a business method when accepting construction projects for accounting as fixed assets are taken into account.

Based on the document “Calculation of VAT on construction and installation work (economic method)”, the document “Invoice issued” is entered.

Reflection of VAT accrual for construction and repair works in an economic way

Used for transactions not subject to VAT. The following options are provided for automatically filling out the tabular part Real Estate Objects: Fill in - Selection of real estate objects - the tabular part is filled in with real estate objects that must be reflected in the VAT return in accordance with the requirements of the Tax Code of the Russian Federation: the real estate object was put into operation no earlier than 2006 (this condition can be disabled by the corresponding checkbox in the selection form); a fixed asset object has an asset accounting group installed - building, structure, land (the list of groups can be changed in the selection form, if you want to select fixed assets with an empty group, you need to add an empty element to the list) ;the real estate object is not fully depreciated. If the tabular part of the document is already filled in with real estate objects, they will be reflected in the selection form.

Economic construction: accounting and taxation

Read also the article: → “How to allocate VAT” Delivery of an unfinished object When reflecting VAT on transactions with unfinished construction objects, the following features should be taken into account:

1. When purchasing materials for use in OS construction, take into account and deduct VAT in the general manner (at the time the materials are received for accounting). This applies to both the purchase of raw materials during self-construction and the purchase of materials for transfer to the contractor.
2. If the contractor has transferred the OS to the company, recognized as an unfinished construction project (work on the project has not been completed, but the KS-2 act and KS-3 certificate have been signed for the cost of the work performed), then VAT must be charged on the cost of the work performed (similar to the stage-by-stage delivery of the facility).
3. When constructing an OS on a self-employed basis, VAT is reflected and deducted on the basis of invoices drawn up by the company.

Regulatory framework The procedure for reflecting VAT during the construction of fixed assets, as well as the mechanism for obtaining a tax deduction, is regulated by the following legislative acts: No. Regulatory act Description 1 PBU 6/01 When reflecting operations for the construction of fixed assets (on our own, through contractors, in a mixed way) you should be guided by the general rules of accounting, in particular, the provisions provided for in PBU 6/01 “Accounting for fixed assets”. 2 Tax Code Chapter 21 The regulatory document describes the general procedure for reflecting VAT (taxpayers, taxable transactions under fixed assets, exemption from payment, etc.). 3 NK Art. 171 of the Tax Code describes the procedure for using the right to a tax deduction during the construction of an operating system. 4 NK clause 10 art. 167 According to this provision of the Tax Code, the company’s obligations to pay VAT to the budget arise at the moment the completed asset is accepted on its balance sheet.

How to reflect VAT on construction and installation works using the economic method

The exception is cases of capital construction carried out by the organization for its own needs. In other situations, the cost of the created OS object is subject to VAT in the general manner.

What work is classified as construction and installation work for one’s own consumption when determining the object of VAT taxation. How to charge VAT when performing construction and installation works for one’s own consumption - read the article.

Question: If an object is built economically, but is not intended for production purposes, is VAT charged on construction and installation works using one’s own resources? Can it be accepted for deduction or not?

Answer: 1. Despite the fact that you are building a non-production facility, you must charge VAT on the construction and installation work performed (subclause 3, clause 1, article 146 of the Tax Code of the Russian Federation).

2. Accept VAT for deduction only if two conditions are met (paragraph 3, paragraph 6, article 171 of the Tax Code of the Russian Federation):

You can use the deduction in the same quarter in which the organization charged VAT on the cost of construction and installation work. If the conditions are not met, there are two options: not to deduct VAT or to collect evidence that the construction is related to operations subject to VAT and is necessary for the process of making a profit from the organization’s activities.

Rationale

How to calculate VAT when performing construction and installation work for your own consumption

Object of taxation

Carrying out construction and installation work for one’s own consumption is subject to VAT (subclause 3, clause 1, article 146 of the Tax Code of the Russian Federation).

Situation: what work is classified as construction and installation work when determining the tax base for VAT

This issue is not regulated by law.

The tax base when performing construction and installation work for one’s own consumption is defined as the cost of the work performed, calculated on the basis of all the actual expenses of the organization for their implementation (clause 2 of Article 159 of the Tax Code of the Russian Federation). At the same time, construction and installation include work related to capital construction.

In accounting, capital construction costs are reflected in account 08 “Investments in non-current assets”. Therefore, in practice, tax inspectorates require that VAT on construction and installation work performed on a self-employed basis be charged on the entire amount of expenses collected on account 08 in connection with capital construction, with the exception of the cost of contractors’ work.

However, this point of view is not entirely justified. To determine which types of construction work are considered capital, follow the All-Russian Classification of Products by Type of Economic Activities (OKPD 2), which was approved by Rosstandart Order No. 14-st dated January 31, 2014.

For types of construction work according to OKPD2, see section F. In particular, the following groups are named in this section:

Work on the construction of residential buildings - 41.20.3;

Construction work on the construction of non-residential buildings and structures (work on the construction of new facilities, construction of extensions, reconstruction and repair of buildings) - 41.20.4;

Construction work on the construction of municipal facilities for liquids - 42.21.2;

Specialized construction works - .

At the same time, for calculating VAT, classify as capital works only those that resulted in:

To create new fixed assets, including real estate (buildings, structures, etc.);

To a change in the initial cost of objects in operation (in cases of completion, additional equipment, reconstruction, modernization, technical re-equipment, partial liquidation and on other similar grounds).

An example of calculation and reflection in accounting of VAT on the cost of construction and installation work for own consumption. The organization does not enjoy the right to distribute VAT payable to the budget evenly over three months

Alpha LLC is constructing its new office building on a self-sustaining basis. In the first quarter, Alpha carried out work on drilling a water well at the construction site. The work was carried out using the organization's own resources.

To carry out hydrological work, Alpha purchased construction materials for a total amount of 118,000 rubles. (including VAT - 18,000 rubles). The materials were fully used when drilling the well. Other costs associated with hydrological work were:

The salary of workers involved in well drilling (including contributions to compulsory pension (social, medical) insurance and insurance against accidents and occupational diseases) is 68,000 rubles;

Depreciation of construction machinery and equipment - RUB 32,000.

Drilling wells is associated with the construction of buildings and structures (OKPD2 code 42.21.24), accordingly, the performance of these works in a self-employed manner is subject to VAT.

The tax base for calculating VAT was:
100,000 rub. + 68,000 rub. + 32,000 rub. = 200,000 rub.

The amount of VAT accrued on the cost of work performed is equal to:
200,000 rub.* 18% = 36,000 rub.

Alpha's accountant made the following entries in the accounts.

During the first quarter (as the organization carries out relevant operations):

Debit 10 Credit 60
- 100,000 rub. - materials intended for hydrological work on the construction site have been capitalized;

Debit 19 Credit 60
- 18,000 rub. - reflects the amount of input VAT on materials intended for hydrological work on the construction site;

- 18,000 rub. - accepted for deduction of input VAT on materials intended for hydrological work on the construction site (based on supplier invoices);

Debit 60 Credit 51
- 118,000 rub. - paid for materials;

Debit 08 Credit 10
- 100,000 rub. - the cost of materials used to carry out hydrological work on the construction site has been written off;

Debit 08 Credit 70, 68, 69
- 68,000 rub. - wages were calculated for workers involved in hydrological work on the construction site (including contributions for compulsory pension (social, medical) insurance and insurance against accidents and occupational diseases);

Debit 08 Credit 02
- 32,000 rub. - reflects the depreciation of construction equipment and equipment used in hydrological work.

- 36,000 rub. - VAT is charged on the cost of construction and installation work performed on a self-employed basis.

The cost of construction and installation work carried out on a self-employed basis in the first quarter was reflected by Alpha's accountant in the invoice drawn up on March 31. At the same time, the invoice was recorded in the sales ledger and purchase ledger. On the same day, Alpha’s accountant recorded the VAT deduction:

Debit 68 subaccount “VAT calculations” Credit 19
- 36,000 rub. - accepted for deduction of VAT accrued for payment to the budget on construction work performed on a self-employed basis.

In April, VAT on the cost of construction and installation work was transferred to the budget as part of the total tax amount reflected in the declaration for the first quarter.

Situation: what work is classified as construction and installation work for own consumption when determining the object of VAT taxation

Construction and installation works for its own consumption are recognized as work as a result of which an organization creates an object to be used in its own activities (letter of the Ministry of Finance of Russia dated June 23, 2014 No. 03-07-15/29969, Federal Tax Service of Russia dated July 8, 2014 No. GD-4-3/13220).

The composition of construction and installation work should be determined taking into account the regulations of Rosstat (letter of the Ministry of Taxes and Taxes of Russia dated March 24, 2004 No. 03-1-08/819/16).

In its documents, Rosstat identifies construction and installation work for its own consumption with construction and installation work performed in an economic way. These include:

Work performed for the needs of the organization on its own (including work for which the organization allocates employees of its main activities and pays them salaries according to construction orders);

Work performed by construction organizations as part of their own construction (for example, during the reconstruction of their administrative building, construction of their own production base, etc.).

How to deduct VAT when performing construction and installation work for your own consumption

When performing construction and installation work for its own consumption, an organization can deduct:

Input VAT on goods (works, services) purchased for construction and installation work;

The amount of VAT accrued on the cost of construction and installation work.

Input VAT on goods (work, services) purchased to perform construction and installation work for your own consumption is deductible in the usual manner (paragraph 1, clause 5, article 172 of the Tax Code of the Russian Federation). That is, after registration of the specified goods (works, services) (paragraph 2, paragraph 1, article 172 of the Tax Code of the Russian Federation) and in the presence of an invoice (paragraph 1, paragraph 1, article 172 of the Tax Code of the Russian Federation).

Conditions for applying the deduction

VAT accrued by an organization when performing construction and installation work for its own consumption should be deducted if the following conditions are simultaneously met:

The property in respect of which construction and installation work was carried out is (will be) used in transactions subject to VAT;

The cost of property for which construction and installation work was carried out is taken into account in expenses (including through depreciation) when calculating income tax.

If at least one of these conditions is not met, then do not deduct VAT accrued on construction and installation work (paragraph 3, paragraph 6, article 171 of the Tax Code of the Russian Federation).*

At what point can VAT be deducted when performing construction and installation work for one’s own consumption?

You can use the deduction in the same quarter in which the organization charged VAT on the cost of construction and installation work.* The moment the VAT amount is presented for deduction is the last day of each quarter. In the tax return for the reporting quarter, you must indicate both the amount of accrued VAT and the amount of tax to be deducted. This procedure follows from the provisions of paragraph 2 of paragraph 5 of Article 172, paragraph 10 of Article 167 of the Tax Code of the Russian Federation.

An example of reflection in accounting and taxation of VAT accrued when performing construction and installation work for own consumption

In the first quarter, Alpha LLC's sales revenue, subject to VAT, amounted to RUB 1,000,000. Alpha's accountant assessed VAT on the amount of this revenue for payment to the budget in the amount of 180,000 rubles. The input tax claimed for deduction in the first quarter is 150,000 rubles.

In the same tax period, Alpha carried out construction and installation work for its own consumption - it reconstructed the building. The cost of these works amounted to 277,778 rubles. Alpha's accountant charged VAT on this amount in the amount of 50,000 rubles. (Clause 2 of Article 159 of the Tax Code of the Russian Federation). The reconstructed building is intended for use in the activities of Alpha, subject to VAT. Depreciation charges for a reconstructed building are taken into account when calculating income tax. Therefore, Alpha has the right to deduct the amount of tax accrued from the cost of construction and installation work. The deduction amount is reflected in the VAT return for the first quarter.

The total amount of VAT payable to the budget based on the results of the first quarter is equal to:
180,000 rub. + 50,000 rub. - 150,000 rub. - 50,000 rub. = 30,000 rub.

The Alpha accountant transferred the tax to the budget in equal shares (10,000 rubles each) in three stages - April 24, May 25 and June 23.

The following entries were made in Alpha's accounting records.

Debit 19 Credit 68 subaccount “VAT calculations”
- 50,000 rub. - VAT was charged on the cost of construction and installation work for own needs performed in the first quarter;

Debit 68 subaccount “VAT calculations” Credit 19
- 50,000 rub. - VAT accrued on the cost of construction and installation work for own needs for the first quarter was accepted for deduction.

Debit 68 subaccount “VAT calculations” Credit 51
- 10,000 rub. - one third of the total VAT amount for the first quarter was transferred to the budget.

Debit 68 subaccount “VAT calculations” Credit 51
- 10,000 rub. - one third of the total VAT amount for the first quarter was transferred to the budget.

Often, the deduction of VAT on improvement costs depends on their recognition in tax accounting

Since the Russian Ministry of Finance is against recognizing most expenses for improvement in tax accounting, it does not recognize the legality of deducting VAT on them. Thus, the Ministry of Finance of Russia in a letter dated March 15, 2011 No. 03-03-06/1/136 stated that since snow removal, garbage removal and lawn improvement are not used to carry out operations subject to VAT, tax amounts on such expenses are not deductible are accepted.

In turn, the courts support taxpayers if the costs of landscaping are related to their production activities, which are subject to VAT*. For example, the resolution of the Federal Antimonopoly Service of the North-Western District dated April 27, 2009 No. A56-23561/2008 states the following. Work on landscaping the territory of the coal terminal is directly related to its activities, which include coal mining and harm to the environment. In addition, the land lease agreement stipulated that the tenant was obliged to carry out landscaping work on the territory.

Thus, when the organization carries out construction and installation works aimed at improving the adjacent territories, it is necessary to charge VAT on such work quarterly. In this case, the company issues an invoice in two copies, registers it in the sales book and at the same time reflects the corresponding amounts in the VAT return. Moreover, the obligation to charge VAT does not depend on whether improvement facilities built on one’s own will be used in the organization’s production activities or not.

At the same time, the deduction of VAT accrued on the specified basis depends on this factor. Thus, the Federal Tax Service of Russia, in a letter dated March 23, 2009 No. ШС-22-3/216@, explained the following. The deduction of VAT calculated by the taxpayer when performing construction and installation work for his own consumption is subject to the following conditions:

— the facility under construction is intended for use in operations subject to VAT (clause 2 of article 171 of the NKRF); — the cost of the object is subject to inclusion in expenses, including through depreciation deductions, when calculating income tax (paragraph 3, paragraph 6, article 171 of the NKRF).

Moreover, such a deduction can be presented in the same tax period in which VAT on the cost of construction and installation work is calculated for payment (paragraph 2, clause 5, article 172 of the NKRF).

As for the amounts of VAT paid on the purchase of materials, works and services that were used to carry out construction and installation works, they, in the author’s opinion, can be deducted in the generally established manner (paragraph 1, clause 5, article 172 of the NKRF). That is, as the invoice is posted and received.

At the same time, a situation is possible when the cost of goods, works or services used in the construction of a non-production facility is not included in the tax base for construction and installation works. For example, the cost of the contractor’s work (decision of the Supreme Arbitration Court of the Russian Federation dated March 6, 2007 No. 15182/06). Then the deduction of the tax paid for these works, in the opinion of the Federal Tax Service of Russia, is illegal (letter dated 03.23.09 No. ШС-22-3/216@).

Alexander Sorokin answers,

Deputy Head of the Operational Control Department of the Federal Tax Service of Russia

“Cash payment systems should be used only in cases where the seller provides the buyer, including its employees, with a deferment or installment plan for payment for its goods, work, and services. It is these cases, according to the Federal Tax Service, that relate to the provision and repayment of a loan to pay for goods, work, and services. If an organization issues a cash loan, receives a repayment of such a loan, or itself receives and repays a loan, do not use the cash register. When exactly you need to punch a check, look at

VAT on the construction of fixed assets - the procedure for accounting and deducting this tax has a number of features that differ from the procedure for accounting and deducting VAT during the sale and acquisition of fixed assets. Let's take a closer look at these features in our article.

The procedure for calculating VAT during construction and installation works

To calculate VAT when performing construction and installation work for the taxpayer’s own consumption, the following steps are performed sequentially:

1. The tax base for completed construction and installation works is calculated.
2. The tax period in which VAT must be calculated and the tax amount must be calculated is determined.
3. An invoice is drawn up for the cost of construction and installation work performed.
4. The amount of VAT on purchased materials, works, services necessary for carrying out construction and installation work, and the amount of VAT accrued on the volume of construction and installation work performed are subject to deduction.
5. A completed VAT return is submitted to the tax authority.
6. Tax is paid to the budget if the declaration reflects the amount of VAT payable.

Determination of the tax base for VAT during construction and installation work

The tax base for VAT when performing construction and installation work is determined as the cost of this work. The indicated cost includes all expenses of the taxpayer actually incurred by him during the construction of fixed assets.

If third-party organizations are partially involved in carrying out construction and installation work, then the cost of construction work performed by contractors should not be included in the tax base (see decision of the Supreme Arbitration Court of the Russian Federation dated March 6, 2007 No. 15182/06 and resolution of the Federal Antimonopoly Service of the Ural District dated January 14, 2008 No. Ф09-11071/07-С2). Tax officials also adhere to this position (letter of the Federal Tax Service of Russia dated July 4, 2007 No. ШТ-6-03/527).

VAT accrual on construction work

VAT when performing construction work for own consumption must be calculated at the end of each tax period (clause 10 of article 167 of the Tax Code of the Russian Federation). Thus, the taxpayer calculates the amount of VAT on a quarterly basis based on the volume of work that was performed during the quarter.

On the last day of the quarter, an invoice is issued in accordance with Art. 163 of the Tax Code of the Russian Federation and clause 21 of the rules for maintaining a sales book, approved by Decree of the Government of the Russian Federation of December 26, 2011 No. 1137. The document can be drawn up in one copy, since the buyer to whom the second copy should be transferred does not exist as such (clause 6 of the rules for filling out an invoice - invoices approved by Decree of the Government of the Russian Federation dated December 26, 2011 No. 1137). Based on this, in the lines “Seller”, “Consignee and his address”, “Consignor and his address”, “Buyer” it is necessary to enter the details of the taxpayer who carried out the construction work on his own.

The invoice issued in this way is simultaneously registered in the purchase book and the sales book (clauses 3 and 21 of the rules for maintaining the sales book, approved by Decree of the Government of the Russian Federation of December 26, 2011 No. 1137 and paragraph 2 of clause 20 of the rules for maintaining the purchase book, approved by the Government Decree RF dated December 26, 2011 No. 1137).

VAT deduction in construction

When carrying out construction and installation work in an economic way, the taxpayer can claim the following amounts of VAT for deduction:

1. VAT paid to suppliers when purchasing materials, works, services used during construction work.
2. VAT paid to the seller of an unfinished capital construction project, subsequently completed using economic methods.
3. VAT, which was accrued when performing construction and installation work for own consumption.

In this case, the VAT amounts specified in clauses 1 and 2 can be deducted as materials, works, services are received and invoices are received from suppliers (letter of the Ministry of Finance of Russia dated September 21, 2007 No. 03-07-10/20, Federal Tax Service Russia in Moscow dated July 22, 2008 No. 19-11/069325). The data on the amount of input VAT on goods (work, services) purchased for construction and installation work, and the amount of tax presented by contractors, are necessary to calculate the indicator on line 120 of section. 3 VAT declaration forms (paragraph 6, clause 38.13 of the procedure for filling out the declaration, approved by order of the Federal Tax Service of Russia dated October 29, 2014 No. ММВ-7-3/558@).

It is necessary to deduct VAT, which was accrued on the amount of expenses incurred during the construction of a fixed asset using one’s own resources, on the last day of the tax period at the time the tax base is determined. This procedure for accepting deductions is established in paragraph. 3 paragraph 6 art. 171 and para. 2 clause 5 art. 172 of the Tax Code of the Russian Federation. Thus, VAT on completed construction work can be deducted in the same quarter in which it was accrued for payment to the budget (letter of the Federal Tax Service of Russia dated March 23, 2009 No. ШС-22-3/216@). The specified amount of tax must be reflected in the VAT return in lines 060 “Performing construction and installation work for own consumption” section. 3 and 140 “The amount of tax calculated when performing construction and installation work for own consumption, subject to deduction” section. 3 (clauses 38.3 and 38.10 of the Procedure for filling out a tax return for value added tax, approved by order of the Federal Tax Service of Russia dated October 29, 2014 No. ММВ-7-3/558@).

Results

VAT on the construction of fixed assets is calculated and deducted at the end of each tax period. The basis for calculating the tax is the costs incurred during the construction campaign. VAT refundable is taken into account in the purchase book as materials and work are received, as well as the necessary documentation is received.