Amendments in VAT accounting
On 30 June 2014, Russian government passed Decree № 735 that contained amendments to Decree
№1137 «Formats and principles of filling for the documents that are used for VAT accounting purposes».
Amendments mainly concern Purchase and Sales Books and principles of running Invoice Journal. All
amendments came into force on 1 October 2014.
Simultaneously, Russian tax authorities announced changes in VAT declaration forms. VAT declaration
should contain information collected from Purchase and Sale Books. It’s expected that soon all VAT
declarations will be provided to Tax authorities online through special telecommunication channels. Such
amendments on the one hand will help to automatize verification of VAT declaration within one taxpayer
(through analysis of interdependence between different sections of VAT declaration). On the other hand,
such approach is aimed to match data between counterparties to identify differences. Such amendments
are regarded as measures to prevent money laundering and tax evasions.
Decree № 1137 «Formats and principles of filling for documents that are used for VAT accounting
purposes»
New section of Purchase Book: operation types codes, information about intermediates, currency code,
Custom declaration number.
Removed from Purchase Book: Purchased value taxed by different VAT rates, non-VAT taxable operations,
country of origin.
SAP offers the following Notes:
1) 2076038 New Government regulation №735 «On amendments being made to Regulation
№1137»- sales and purchase ledgers- ALV format (from 09.10.2014)
2) 2074991 Sales/Purchase Ledger: Statement №735 «On amendments being made to Regulation
№1137» (from 16.10.2014)
3) 2074992 Sales/Purchase Ledger: Statement №735 «On amendments being made to Regulation
№1137» (from 20.10.2014)
4) 2079189 Sales/Purchase Ledger: Integration with Invoice Journal (Commission Trade) (from
14.10.2014)
5) 2085792 Sales/Purchase Ledger: Statement №735- fixes (from 30.10.2014)
6) 2095693 Sales/Purchase Ledger: Statement №735- agent data (from 15.11.2014)
7) 2097168 Sales/Purchase Ledger: agent name and data
8) 2091844 Purchase Ledger: only first 10 characters are displayed for currency text (colu
(07.11.2014)
9) 2070322 Sales/Purchase Ledger: BADI extensions (01.10.2014)
From October 2014 Invoice Journal becomes an obligatory VAT report only for companies that are working
in interest of another company based on commission or agency contracts. Due to this changes a new
section «Information about intermediating activities» and operation codes were added. In a new Invoice
Journal information about date and number of invoice is aggregated.
For intermediate operations Principal’s name should be reflected in Purchase and Sale Books. To do this
a functionality of long text in financial documents should be maintained. Principal should be indicated in
long texts. Based on long texts and operation codes interpretation an information about Principal and
Agent will be reflected in Invoice Journal. In that case Purchase and Sales books will reflect Principal as a
partner.
SAP recommends to use functionality of Invoice Journal despite the fact that Invoice Journal functionality
becomes non-obligatory for companies others then intermediators. First of all printing of revision invoices
1
is done through Invoice Journal. The other reason is that SAP currently is working on additional
functionality of counterparties’ data check (INN, KPP, OKPO).
SAP offers following notes:
1) 2057650 Invoice Journal: Statement №735 «On amendments being made to Regulation №1137»
(from 09.10.2014)
2) 2084988 Statement №735: Customizing for Types of Commission Trade (from 24.10.2014)
3) 2088470 Regulation №735: Invoice Journal Print Form (from 31.10.2014)
4) 2068123 VAT on commission Trade (from 17.09.2014)
5) 1987000 VAT on commission Trade (from 06.10.2014)
6) 2098959 Invoice Journal: agent and seller data, PDF form, texts instead of roles in MIR (from
27.11.2014)
7) 2094064 Electronic VAT Invoices - incoming digital signature (from 13.11.2014)
8) 1883352 Invoice Journal: Electronic invoice improvements (from 23.10.2014)
9) 2079189 Sales/Purchase Ledger: Integration with Invoice Journal (Commission Trade) (from
14.10.2014)
10) 1835422 VAT Invoice Journal: error UNCAUGHT_EXCEPTION (from 02.10.2014)
11) 1808927 Electronic VAT Invoices (Russia) - signature file (from 02.10.2014)
VAT declaration
From 1 January 2015 VAT declaration should be formed in electronic format and submitted to Tax
authorities through operators of electronic document management. Upload of electronic VAT declaration
could be done through official website of Russian Tax Authorities by using electronic signatures, within
the pilot project launched by Russian Tax Authorities.
Format of VAT declaration hasn’t been approved yet.
Expected amendments in SAP VAT declaration programs:
1)
2)
3)
4)
Sections 1-7 are formed from VAT declaration
Sections 8-9 will be formed from information in Purchase and Sales Books
Sections 10-11 will be formed from Invoice Journal
Section 12 is still under discussion
Last Notes offering by SAP:
1) 2019739 FIN_LOC_CI_42: VAT solution, Cash Flow, Stock overview on HANA (from 21.11.2014)
2) 2098060 VAT Return Russia: Prerequisite Objects for the Note 2019739 (from 21.11.2014)
3) 2058372 VAT Return for Russia (New): INN is incorrect, KBK is not filled, Subdivision's K (from
21.11.2014)
Appendix
2
Purchase book
-old.xls
Purchase
Book-new.xls
Sales Book-old.xls Sales Book-new.xls
3
Invoice
Journal-new.xls
Invoice
Journal-old.xls