How to Recover VAT when Transitioning to Simplified Taxation System

• The Russian Ministry of Finance explains how to recover VAT when transitioning to the simplified tax system (USN).
• VAT can only be recovered for assets that will be used in operations not subject to VAT.
• Fully depreciated assets and assets in use for at least 15 years are exceptions.
• The recovered tax amount is reflected in the declaration for the last tax period of each calendar year for 10 years.
• If a taxpayer transitions from the general taxation system to USN and has been using real estate for over 10 years, they do not need to recover VAT for those assets.
• When transitioning to USN, VAT amounts for goods, works, services, and non-real estate assets used for less than 10 years must be recovered in the tax period before the transition.
• The recovered tax is the same amount previously deducted, and for assets, it is proportional to the residual (book) value without revaluation.

Source: garant.ru

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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