Today we are going to find out if an individual entrepreneur can work with VAT. Anyway, you have to get acquainted with a variety of tax systems in Russia, which are used specifically for individual entrepreneurs. In fact, this issue is extremely important. Indeed, depending on your decision, the amount of taxes will change, as well as their amount. Therefore, it is worth finding out about all the possible scenarios. Maybe it will not be profitable for you to work on this or that system.
Do they pay VAT
First you need to understand who pays VAT. After all, some believe that the so-called value-added tax is not paid by individual entrepreneurs. In fact this is not true.
As already mentioned, a lot depends on your tax system. In some cases, FEs will have to pay VAT. And without fail. Also, this payment is made by organizations that are engaged in sales. However, in the same way as entrepreneurs. Thus, if you are considering whether an individual entrepreneur can work with VAT, the answer will be yes. The question is different - under what circumstances and how beneficial is it.
General system
To understand all this, you will have to get acquainted with a variety of tax systems. And the first option that only takes place is IP on OSNO. This option is common in Russia, but it is not always profitable.
The general taxation system is the option that is chosen by all entrepreneurs by default. You will work on it if, during registration, a special mode was not specified as an IP.
Perhaps this system is the most complete in relation to the payment of taxes. Here trouble with them will be more than enough. Perfect for those who are going to engage in trade, mainly wholesale. Otherwise, an OS on OSNO is not a very profitable option. In particular, if you plan to work independently and only "for yourself", you will have to look at the special (special) tax regimes. Among them, you are sure to pick yourself something suitable.
DOS and taxes
So, we found out if the IP can work with VAT. But in what cases does this option take place? If you choose OSNO, then the value added tax will have to be paid without fail. In principle, it is because of it that it is advantageous to choose this system when conducting wholesale sales.
Which will have to pay taxes to an individual entrepreneur, if he preferred to work using the general tax system? Here the list is not too big, but the deductions are serious.
The first payment that will have to be paid to the state treasury is our VAT. At the moment, it is 18% of the amount received for the goods sold by you. The exact numbers will have to be calculated each time yourself. As you might guess, this is a non-fixed payment. However, like most taxes in Russia.
What does an individual entrepreneur pay when working on an OCO, in addition to VAT? Property Taxes. They are calculated according to general principles for all organizations. If you do not own property, then this payment is canceled. And you can avoid it.
Last, but not least, is income tax. Individual entrepreneurs will pay 13% when working on the OSNA. But the organizations were less fortunate - they are expected to withdraw 20% of the profits.
UTII
Depending on how the individual entrepreneur works, one or another taxation system should be chosen.As we have already found out, there is a basic. This option is beneficial if you plan to engage in wholesale. After all, it is here that the VAT appears, which is able to please you.
But there are also so-called special modes. IP taxation implies freedom of choice. True, you can only work on one system at a time. For example, the most common option is UTII. Or, as it is also called, "imputation".
This option is not used by everyone. After all, there is a special list of activities in which it is possible to use UTII. If your business does not meet the advanced requirements, you will either have to switch to OSNO, or choose some other special mode. UTII helps reduce your premiums. So sometimes this option is really beneficial. Usually he is chosen when this is possible in principle. And it doesn’t matter whether you work with employees, or only "for yourself."
Fixed payment
Can an individual entrepreneur work with VAT? We have already found out that in general such an opportunity takes place. But only with basic. What to do if you choose "impute"? Here you can only rejoice. Why?
The thing is that UTII means the payment of a fixed tax. True, the calculation will be carried out using the established coefficients for a particular tax reporting period. The amount of payment will depend on numerous factors: the size of the premises used in your business, the number of employees or vehicles, and so on. Each type of activity is characterized by its own criteria that affect the amount of tax paid. Consider this factor when choosing a tax system.
A distinctive feature of UTII is that the taxes of individual entrepreneurs in this case do not depend on your income. Therefore, sometimes this scenario may indeed prove beneficial. For example, when you have high profits, and the amount of tax, taking into account all factors, turns out to be small.
Patents
What's next? IP taxation is a very difficult issue. Every year, Russian legislation undergoes changes that quite often have a positive effect on entrepreneurship. For example, a new special tax regime has recently been introduced. It is called a patent.
What is meant by it? You will have to buy a special document confirming your right to conduct this or that activity - a patent. This is the only payment that is required of you. After no taxes and other contributions, you do not pay to the state treasury. We can say that everything is paid in advance.
The patent regime is not available for all types of activities. But it is perfect for citizens who want to try themselves as an individual entrepreneur. After all, the minimum term of a patent is 1 month, and the maximum is a year. After that, you will again have to buy this permission to conduct this or that activity.
How much will a patent cost? It all depends on several factors. Firstly, from your activities. Secondly, from the region of residence (registration as an entrepreneur). Thirdly, from the period for which the document is acquired. As already mentioned, IP should not pay any taxes when working under this scheme.
STS
True, the conversation does not end there. Indeed, individual entrepreneurs have a choice of taxation system, and not so small. Another option is USN. For IPs, it is often this option that is beneficial and also suitable for minimal cash loss. The people call it "simplified."
The main advantage of this system is that it does not require any additional paperwork and a huge amount of reporting. For example, in all previous cases, you will have to register a cash register, keep a special book of income and expenses, as well as a check book.And when working on the simplified tax system for IP, these reporting forms are not available. It is enough to submit a tax return once a year.
What do we pay for USN
What does an individual entrepreneur pay if he decides to work on a "simplified account"? There are several options. The first is when you have both income and expenses. In this case, you will have to pay a tax in the amount of 5 to 15%, which is taken from the amount received after deducting from the profit all your expenses for doing business. The exact tax rate depends on your business and region of residence. You will have to find out these data in the tax service of your city.
If you do not have any expenses, then it is more advisable to pay the state according to the second scheme. It involves paying 6% of your profit per year. And nothing more. Only deductions to the Pension Fund and the Compulsory Health Insurance Fund. These payments are fixed annually in a fixed amount. True, if your profit is more than 300,000 rubles a year, then you will have to additionally transfer 1% of your profit.
Can an individual entrepreneur work with VAT when choosing a simplified tax system? No, this is impossible. All that an individual entrepreneur can do in this case is to choose a specific tax calculation scheme. "Income - expenses" is perfect when you have huge expenses in business. Otherwise, it is advisable to choose the option with the payment of 6% of the profit.
Unified agricultural tax
The last alignment that is only taking place is the UCN. An individual entrepreneur should use this taxation if he works with agricultural products or processes them. And on their own.
In truth, such an option is extremely rare in Russia. After all, he means quite serious tax burden. So entrepreneurs who are involved in agricultural activities, prefer to work on the OSNO or patents. Less and less common is the USC. Now it’s clear who pays VAT and which tax system to choose.
