Value Added Tax the Internet Trading: Features of Documentation, Accounting and Reporting

Abstract

The scientific article reveals the peculiarities of documenting the value added tax calculations (hereinafter - VAT) in online commerce. The rules for filling in tax invoices and calculating adjustments to them in accordance with changes in the current tax legislation have been clarified. The issues related to the recognition of VAT liabilities for e-commerce transactions are specified. It is determined that the sale of goods on full prepayment with the use of payment services takes place in three stages: the operation of acceptance by payment service funds from the buyer, which forms a corresponding electronic message of acceptance of funds; non-cash transfer operation by the payment service of funds received from the buyer to the seller's bank account; transfer of goods to the buyer. The basis for accrual of VAT liabilities is the contractual value of goods, while the bank's fee which is withheld by the acquirer automatically when crediting money to the account does not reduce the tax base. Certain recommendations are offered to improve the method of accounting for the sale of goods on the terms of card prepayment and subsequent payment through the postal carrier for businesses whose main activity is Internet commerce. Analytical sections are considered to reflect in the accounting of VAT liabilities for transactions on the sale of goods through the online store on the card prepayment basis. The method of compiling a VAT tax return in terms of identifying transactions for sale of goods in the context of online commerce needs to be improved. Based on this, the structure and rules of filling in the current VAT tax return were considered and recommendations for improving reporting indicators were proposed.

Keywords

• e-commerce, value added tax, tax liabilities, tax invoice, tax return