The Ministry of Finance of Russia in its Letter dated 18.01.2022 N 07-04-09/2185 has issued recommendations on auditing the annual accounting statements of organizations for 2021, which inter alia provide an explanation on VAT accounting in lease payments.
In particular, the recommendations indicate that the amount of VAT (refundable and non-refundable) for both the lessee and the lessor is an obligation to pay taxes arising from the requirements of the tax legislation. Therefore, the amount of VAT to be paid by the lessee is not a part of the lease payments stipulated by the lease agreement and is not included in the lease payments when assessing the lease obligation in accordance with FSBU 25/2018.
The amount of VAT is subject to recognition by the lessee in accounting as an obligation at the time it become due. This approach is applied regardless of the procedure for VAT refund (deduction).
NAZALI VERGI & HUKUK