Tax Funnels Seventy Five

  AT THE ASSIGNOR The seller charges VAT only on the amount of excess of the amount of income received during the assignment over the amount of the assigned monetary claim (clause 1 of article 155 of the Tax Code of the UK Federation). But this does not happen often, as receivables are usually sold at a price below the debt itself. When selling debt at a loss, the tax base is zero. On the basis of paragraph 1 of Art. 155 of the Tax Code of the UK Federation,  Small Business Accountants in Walsall it can be concluded that the seller's object of taxation arises only if he concedes the debt for goods (work, services) subject to VAT. Consequently, when it comes to non-taxable transactions, then the concession should not be the basis for calculating tax. But the Federal Tax Service does not agree with this statement. In a letter dated August 14, 2017, No. SD-4-3 / 15915 @, she explained that clause 1 of Art. 155 of the Tax Code of the Uk Fede...

  AT THE ASSIGNEE The cost of acquiring the right to claim is recognized by the assignee in income tax expense. The income reflects the payment received from the debtor, as well as the amounts transferred by the new assignee (if the assignee decides to resell the debt to another person). THE DEBTOR The transfer of the right of claim from the seller to a third party in the analytical accounting of the debtor company is reflected on the basis of a written notification received from the original creditor about the assignment of the right to claim the debt. VAT The procedure for determining the tax base when exercising property rights is regulated by article 155 of the Tax Code of the uk Federation. AT THE ASSIGNOR The seller charges VAT only on the amount of excess of the amount of income received during the assignment over the amount of the assigned monetary claim (clause 1 of article 155 of the Tax Code of the Russian Federation). But this does not happen oft...

ACCOUNTING AND TAX ACCOUNTING OF TRANSACTIONS UNDER CESSION AGREEMENTS   Waiting for a client to pay you is an unaffordable luxury, especially in a situation when a business needs funds and we are talking about large amounts. It is naive to hope for good faith, but calling and reminding is not always effective, besides, the seller's business reputation may suffer. There is one correct solution to optimize settlements - the assignment of the claim or, in other words, the assignment. The service is not free, but it is also effective - the client's debt has been repaid, while the business relationship with him has not been spoiled. Let us consider how transactions under cession agreements are reflected in accounting and tax accounting . INCOME TAX AT THE ASSIGNOR If the seller of goods (works, services) keeps records of income and expenses on an accrual basis and at the same time assigns the right to claim a debt to a third party before the due date of pa...