Main » 2011 » October » 13 » Municipal property and VAT - When it is necessary to pay
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Municipal property and VAT - When it is necessary to pay
When you purchase a municipal property VAT must be calculated at the time of transfer of money for it. This was once again explained the Russian Finance Ministry in its letter № 03-07-14/94 of September 27, 2011. An individual entrepreneur has acquired municipal property from which the VAT must be paid to the budget. The property was purchased with installment payments over several years. Payments are transferred by a taxpayer each year. This raises the question of payment of value added tax. The Office believes that the acquisition of municipal property, must pay VAT at every annual remittance. Ministry
of Finance explained that the implementation of municipal property,
which is not reserved for public enterprises and institutions, VAT must
be listed to the tax agent. In our case, the name of a purchaser of such property. Therefore,
when an entrepreneur takes on municipal property by installments, the
amount of VAT is determined at the time of the transfer of funds, but in
our situation, every year. In
turn, the officials noted that tax inspectors have no right to demand
payment of VAT when the taxpayer receives title to the property. In
addition, on the issue of municipal property and VAT recall that at one
time, the Ministry of Finance has already explained the issue in its
letter № 03-07-14/64 dated July 7, 2009. Operations on the implementation of state and municipal property are recognized subject to VAT. If you pay the property tax agent should calculate the appropriate amount of tax payable to the budget. Also at the time, we mentioned the following. At
the conclusion of separate subdivisions of the lease of municipal
property required to pay VAT on the organization of the place of
registration organization in the tax department. Reported by the Finance Ministry in its letter № 03-07-11/448 on November 26, 2010.
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y VAT must be calculated at the time of transfer of money for it. 
