02.07.08

Russia’s Ministry of Finance (MinFin) has refused to follow a judgment from the Supreme Arbitration Court (SAC) that an entrepreneur should be able to file VAT deductions based on cash register receipts. An appropriate ruling was made by the SAC in May and announced in Resolution #17718/07 from May 13, 2008.

MinFin explained: “If a private entrepreneur pays VAT, in order to qualify for the deduction they must fulfill all conditions prescribed in the TC. First, the merchandize must be entered into accounting records. Second, the purchased goods must be used in activity subject to VAT. Thirdly, a sales invoice must be filed. A cash register receipt may not replace a sales invoice in this case.”

If the VAT amount is significant and the entrepreneur would like to have it reimbursed, he has two options: try to obtain a sales invoice from the seller, or make the deduction based on cash register receipts and prepare to defend the deduction in court.

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Source: «Главбух»