September 2020 VAT exemption notification

If the organization has small revenue, it can refuse to pay VAT. To do so, it is required to submit an appropriate notification to the tax office.

September 2020 Notification Rules

The Tax Code specifies the conditions under which companies using general income taxation system have the right to submit a notification of VAT exemption:

• 3 months have passed since the registration date. For example, to be able to file a notification in September, a company must be registered in June or earlier. In this case, the determination of the amount of revenue will be made on the basis of June, July and August;
• income without VAT for the previous 3 months shall be no more than 2 million rubles. In this case, the proceeds are taken into account only for those transactions that are subject to VAT;
• during the previous 3 months the company did not sell excisable products.

September 2020 Notification Deadline

The notification shall be sent before the 20th day of the month from which the organization plans to exercise the right to exemption from VAT. However, in September, deadline falls on Sunday (a weekend), and therefore is postponed to September 21.

After filing notification, the right to VAT exemption can be exercised for 12 months. However, this only applies to the “internal” tax. When the period ends, the company is obliged to confirm that its income during this period in every three calendar months was not more than 2 million rubles. Also, the taxpayer should submit again a notice for exemption from VAT or a refusal to do so.

How to Submit the September 2020 Notification

The form of the document is contained in the Order of the Ministry of Finance dated December 26, 2018 No. 286n. In addition, you need to submit extracts from:

• balance sheet – it reflects revenue. The document is submitted only by legal entities;

• sales books;

• ledger and business transactions. The document is submitted by an individual entrepreneur;

• ledger of legal entities and individual entrepreneurs who switched from simplified taxation to general income taxation system.