VAT in Russia
By Yuriy Zarya, IT Project Manager and Thomas Titsch, Director ERP
VAT and Profit tax return in SAP
Russian legislation obligates companies to provide the VAT return in a specific format. As it undergoes
frequent changes, it adds a lot of complexity to statutory filing in Russia. SAP provides its clients with preconfigured solutions for clear VAT reporting that fully comply to Russian tax and legal requirements.
As of April 2015, the VAT return should include information on all incoming and outgoing VAT
invoices. In addition, the authorities will accept only VAT returns provided in the mandatory electronic
format. In early 2015, SAP provided a new necessary update of its ERP system (these updates are called
“notes”) that covers these latest changes to the VAT declaration form and ensures the capability to
deliver the VAT return in the XML format as requiredby the Russian Federal Tax Service (FNS).
For profit tax reporting, there are actually two options. Which option a company should choose
depends on the size and complexity of the business (e.g. on the quantity of fixed assets and assets under
construction). For full automation, SAP provides a template solution based on the Special Purpose
Ledger functionality (FI-SL). In newer systems, the new-GL functionality can be used as well. However,
this solution requires some effort to implement. If your business is not as complex, it may be a
better business decision to obtain the data from your accounting numbers in SAP and prepare
the actual tax return in Excel. As an example, for one of our clients (import and wholesale), our
accountants spent on average 2–4 hours per month. Implementing the fully automated solution
would pay off only after a significant time.
VAT in 1C
All 1C standard solutions are 100 percent compatible with all VAT requirements. All VAT related calculations and transactions are fulfilled automatically from primary documents and operations that are filled-out by users in the data base. 1C provides automatic generation of all necessary reports and forms required by the Tax Code and other normative documents:
- Purchase ledger
- Sales ledger
- VAT declaration
We at SCHNEIDER GROUP consult and provide our international clients with the back office services they need to expand their business into or within Russia, Kazakhstan, Belarus, Ukraine, Poland and Germany. Our services include accounting outsourcing, tax consulting, import, EPR systems and support in legal matters. To increase their efficiency and profit, we implement and develop modern technology and constantly improve processes and workflows. We have been utilising the very solutions we provide for over a decade among our 500 experts.