Russia - Taxes

[Hubbitus]

In current situation in Russia for end users generally applied only VAT (Value Added Tax) on Russian (for translate): НДС - Налог на Добавленную Стоимость.

In most cases VAT is 18%. For some kind of products (f.e. for kids) it consist only 8%. Also published list of product where VAT not applicable (most famous is Software).

Also, not all firms should pay it. There present some form of finance accounting without VAT. F.e. simplify form of accounting. In majority it is on firm choose.

[Matthieu Biart]

Hi Hubbitus!

Thank you for this contribution.

I do not understand how you know a "firm" may not pay VAT. Does it provide you an ID that you must check in order to know if the VAT is applicable or does it simply "tell" you "VAT does not apply to my case"?

Moreover how do VAT apply to voucher/discount coupon, shipping, handling cost?
Does the PrestaShop current order process & invoice fit your legislation requirements?

Thank you in advance.

[Hubbitus]

Hello.

I do not understand how you know a "firm" may not pay VAT. Does it provide you an ID that you must check in order to know if the VAT is applicable or does it simply "tell" you "VAT does not apply to my case"?

No, there no possibilities known pay or not firm VAT without direct question about it.

Moreover how do VAT apply to voucher/discount coupon, shipping, handling cost?

As I can understand voucher/discount coupon is only form of discount. So, it is not have any sence for VAT. After apply any discount, special offers we have price what should be payd by client. On it sum VAT must be applyed (in case when it must be appplyed)

Shipping is service, and VAT should be applied in case when firm use it.

Does the PrestaShop current order process & invoice fit your legislation requirements?

Thank you in advance.

For our legislation requirements I think will be very cool have settings options to seller firm - pay o not VAT at all.

Also, great part (not full, but big) where it may be automated is software. In short terms all software with box - VAT should be applied. All downloadable software, OEM software - not. Yes, in case when price of software included in total price of product (notebook f.e.) on hardware part VAT applicable, but on Software - not. Sometime it is hard to calculate and when cost part is not significant (or very hard distinguished) it just ignored and full VAT applied (but sell price in this case small increased)

[Matthieu Biart]

Moreover how do VAT apply to voucher/discount coupon, shipping, handling cost?

As I can understand voucher/discount coupon is only form of discount. So, it is not have any sence for VAT. After apply any discount, special offers we have price what should be payd by client. On it sum VAT must be applyed (in case when it must be appplyed)

Ok for the application, but what about tax distribution?

Here is an exemple:

Ipod nano (tax included): $100
Keyboard (tax included): $100
Happy new year voucher (tax included): $10

Product total (tax included): $200
Voucher total (tax included): $10

Total (tax included): $190

VAT:

- Product: 8% => $8

- Product: 5% => $5

- Voucher: 5% => $0.5

You can see the tax distribution at the end of my exemple.
So my questions are: Does any tax apply to discount? If yes which one?

Thanks for your contribution.

[Hubbitus]

I small can't understand why you calculate VAT on discount. In other words, granted discount is only decreased price? Or not?
So, back toy your example:
Ipod nano (tax included): $100
Keyboard (tax included): $100
Happy new year voucher: $10
we can treat as (f.e., if we decrease price on one product on full $10 no changed globally):
Ipod nano (tax included): $95
Keyboard (tax included): $95
and VAT will:
For Ipod nano (18%) => $14.49 ($95 * 18 / 118)
Keyboard (tax included): $14.49

[Matthieu Biart]

So, back toy your example:

Ipod nano (tax included): $100

Keyboard (tax included): $100

Happy new year voucher: $10

we can treat as (f.e., if we decrease price on one product on full $10 no changed globally):

Ipod nano (tax included): $95

Keyboard (tax included): $95

and VAT will:

For Ipod nano (18%) => $14.49 ($95 * 18 / 118)

Keyboard (tax included): $14.49

Ok, your example is wrong in the way that the Ipod nano is 8% charged whereas the Keyboard is 5%.
No matter. As far as I understand your voucher is equaly distributed to all products but before tax application.
So my example should most look like this:

Happy new year voucher: $10
Ipod nano (tax excluded): $87 ($92 - $5)
Keyboard (tax excluded): $90 ($95 - $5)

Product total (tax excluded): $187
Voucher total: $10

Total (tax excluded): $177
Total (tax included): $188.46 ($87 * 1.08 + $90 * 1.05)

VAT:

- Product: 8% => $7.36 ($92 * 0.08)

- Product: 5% => $4.75 ($95 * 0.05)

(Where both the Ipod nano & the Keyboard price included are $100)

Could you tell me if I'm right?