Article 166. The Order of Calculation of the Tax

1. The amount of tax when determining the tax base according to Articles 154 - 159 and 162 of the present Code shall be calculated as the percentage share corresponding to the tax rate of the tax base, and in case of separate record-keeping - as the amount of tax received as a result of additional amounts of taxes calculated separately as percentage shares of appropriate tax bases corresponding to tax rates.

2. The total amount of tax in case of sale of goods (works, services) shall be defined as an amount resulting from additional amounts of tax calculated according to the order laid down by Item 1 of the present Article.

3. The total amount of tax shall not be calculated by taxpayers being foreign organisations who are not registered with tax authorities as taxpayers. In such a case amount of tax shall be calculated by tax agents separately on each operation in the sale of goods (works, services) on the territory of the Russian Federation according to the order established by Item 1 of the present Article.

4. The total amount of tax in case of sale of goods (works, services) shall be calculated by the results of each tax period as applied to all operations recognised as a tax basis under Subitems 1 - 3 Item 1 Article 146 of the present Code, the date of which sale (transfer) refers to the corresponding tax period taking into account all changes that increase or reduce the tax base over the appropriate tax period.

5. The total amount of tax in case of import of goods to the customs territory of the Russian Federation shall be calculated as the percentage share of the tax base estimated according to Article 160 of the present Code and corresponding to the tax rate.

If according to the requirements established by Item 3 of Article 160 of the present Code, the tax base shall be defined separately for each group of imported goods, then for each of the aforesaid tax bases the amount of tax shall be calculated separately according to the order established by paragraph one of the present Item. In doing so, the total amount of tax shall be calculated as the amount received as a result of addition of amounts of taxes estimated separately for each of such tax bases.

6. The amount of tax on operations of sale of goods (works, services) taxed according to Item 1, Article 164 of the present Code under the 0 per cent tax rate shall be calculated separately on each such operation according to the order established by Item 1 of the present Article.

7. If the taxpayer maintains no book-keeping or record-keeping of items of taxation, tax authorities shall have the right to calculate tax amounts payable on the basis of data available on other similar taxpayers.

Article 167. The Moment of Determining the Tax Base, When Selling (Transferring) Goods (Works and Services)

1. For the purposes of the present Chapter, the moment of determining the tax base depending on the accounting policy adopted by the taxpayer for the purposes of taxation, unless otherwise is not stipulated by Item 6 - 11 of the present Article, shall be as follows:

1) for taxpayers who have approved in their accounting policy for the purposes of taxation the moment of determining the tax base as per shipment and presentation of settlement documents to the buyer - the date of shipment (transfer) of goods (works, services);

the day of shipment (transfer) of goods (works, services);

the day of payment of goods (works, services);

2) for taxpayers who have approved in their accounting policy for the purposes of taxation the moment of determining the tax base in accordance with the receipt of money resources, the day of payment of shipped goods (performed works, rendered services).

2. For the purposes of the present Article, the payment of goods (works, services) shall be defined as the termination of the counter obligation of the buyer of aforesaid goods (works, services) to the taxpayer which is directly connected to the delivery (transfer) of these goods (performance of works, rendering of services) except for the termination of the counter obligation by the buyer-drawer issuing his own bill of exchange. The payment of goods (works, services), in particular shall be defined as:

1) receipt of funds in the accounts of the taxpayer or his commission agent, attorney or agent in a bank or in the cash department of taxpayer (commission agent, attorney or agent);

2) discharge of an obligation by offset;

3) transfer by the taxpayer of the right of demand to a third person on the basis of agreements or according to law.

3. In cases when goods are not shipped or transported, but there is conveyance of property to these goods, such conveyance of property for the purposes of the present Chapter shall be equated to its sale.

4. If in case of termination of the counter obligation of the buyer of goods (works, services) to pay for these goods (works, services) by the buyer-drawer transferring his own bill of exchanges as the payment of aforesaid goods (works, services) shall be recognized the payment by the buyer-drawer (or other person) of said bill of exchange or transfer by the taxpayer of aforesaid bill of exchange under the endorsement to a third person.

5. If the buyer fails to perform prior to the lapse of limitation of actions under the right of demand of execution of the counter obligation involved in the delivery of goods (performance of works, rendering of services), the earliest of the following dates shall be recognized as the date of payment of goods (works, services):

1) the day of lapse of said period of limitation;

2) the day of writing-off debt receivable.

6. In case of sale of goods (works, services) on a gratuitous basis, the moment of determining the tax base shall be defined as the day of shipment (transfer) of goods (performance of works, rendering of services).

7. In case of sale by the taxpayer of goods transferred to him for storage as per a contract of warehouse storage involving the issue of the warehouse certificate, the date of sale of aforesaid goods shall be defined as the day of sale of the warehouse certificate.

8. In case of the sale by a finance agent of services of financing with assignment of a monetary claim, and also in case of sale by a new creditor who has received the aforesaid demand of financial services, the moment of determining the tax base in respect of said services shall be defined as the day of the subsequent assignment of such claim or the performance by the debtor of such claim.

9. When selling goods (works, services) stipulated by Subitems 1 - 3 and 8 of Item 1 of Article 164 of this Code, the moment of determining the tax base with regard to said goods (works, services) shall be the last day of the month in which a complete set of the documents provided for by Article 165 of this Code is prepared.

Where a complete set of the documents provided for by Article 165 of this Code is not ready on the 181th day, as of the date of placing goods under the customs treatment of export, transit and movement of supplies, the moment of determining the tax base with regard to said goods (works, services) shall be determined in compliance with Subitem 1 of Item 1 of this Article.

10. For the purposes of the present Chapter, the date of performance of civil and erection works for own consumption shall be defined as the day of entry in the records of the appropriate facility of completed capital construction.

11. For the purposes of the present Chapter, the date of transfer of goods (performance of works, rendering of services) for one's own needs recognized as an item of taxation according to the present Chapter shall be defined as the day of performance of aforesaid transfer of goods (performance of works, rendering of services).

12. The accounting policy adopted by the organization for the purposes of taxation shall be approved by appropriate orders and orders of the head of the organization.

The accounting policy shall be applied for the purposes of taxation as of January 1 of the year following the year of the its approval by an appropriate order, order of the chief of the organization.

The accounting policy for the purposes of taxation adopted by organization shall be obligatory for all separate units of the organization.

The accounting policy for the purposes of taxation adopted by the newly founded organization shall be approved no later than the end of the first tax period. The accounting policy for the purposes of taxation accepted by the newly founded organization shall be considered as being applied from the date of creation of the organization.

If a taxpayer is not certain as to what method he is going to use to determine the moment of determining the tax base for tax calculation and payment purposes the moment of determining the tax base specified in Subitem 1 Item 1 of the present article shall be applied.

Individual businessmen for the purposes of this Chapter shall chose a way of defining the moment of determining the tax base and shall notify the tax bodies about it prior to the 20th day of the month next following an appropriate calendar year.

Article 168. The Amount of Tax Presented by the Vendor to the Buyer

1. In case of sale of goods (works, services), the taxpayer in addition to the price (tariff) of sold goods (works, services) is obliged to present an appropriate amount of tax for payment to the buyer of these goods (works, services).

2. The amount of tax presented by the taxpayer to the buyer of goods (works, services) shall be calculated on each kind of these goods (works, services) as the percentage share corresponding to the tax rate specified in Item 1 of the present Article of the prices (tariffs).

3. In case of sale of goods (works, services), the relevant invoices shall be presented to the buyer not later than five days from the day of shipment of goods (performance of works, rendering of services).

4. The appropriate amount of tax shall be stated in a separate line in settlement documents, including in the registers of cheques and registers to receive funds from the letter of credit, primary registration documents and in invoices.

5. In case of sale of goods (works, services), the operations on which sale are not subject to taxation (are exempt from taxation), and also when according to Article 145 of the present Code a taxpayer is released from performance of the taxpayer obligation, the settlement documents and the primary registration documents shall be made out and invoices shall be submitted without pointing out the corresponding amount of tax. In so doing, the appropriate inscription shall be made or the stamp " Without the tax (VAT)" shall be affixed to said documents.

6. In case of sale of goods (works, services) to the population at wholesale prices (tariffs) the appropriate amount of tax shall be included in said prices (tariffs). In so doing, the amount of tax shall not be stated on labels of goods and price tags which are handed out by vendors nor on receipts and other documents issued to buyers.

7. In case of the sale of goods in cash by retail and public catering organisations (enterprises) and individual businessmen and also other organisations, individual businessmen performing works and providing services for a pay immediately to the general public, the requirement laid down by Items 3 and 4 of the present Article concerning registration of settlement documents and making out invoices shall be considered fulfilled if the vendor has issued to the buyer a cash voucher or another document of an established form.

Article 169. The Invoice

1. An invoice is the document used as the basis to accept the presented amounts of tax for deduction or reimbursement in the order stipulated by the present Chapter.

2. Invoices made out and issued in violation of the order established by Items 5 and 6 of the present Article can not constitute a ground to accept for deduction or reimbursement the tax amounts presented to the buyer by the vendor. Failure to meet the requirements to the invoice which are not stipulated by Items 5 and 6 of the present Article can not be the basis for the refusal to accept for deduction an amount of tax presented by the vendor.

3. The taxpayer is obliged to make out the invoice, to keep log-books of received and issued invoices, books of purchases and books of sales, unless otherwise stipulated by Item 4 of the present Article:

1) in case of performance of operations defined as items of taxation according to the present Chapter including those not taxable (exempt from taxation) according to Article 149 of the present Code;

2) in other duly defined cases.

4. Invoices shall not be made out by taxpayers on operations of sale of securities (except for broker and intermediary services), and also banks, insurance organizations and non-state pension funds on operations which are not taxable (exempt from taxation) according to Article 149).

5. An invoice shall state:

1) the serial number and date of the invoice;

2) the name, address and identification numbers of the taxpayer and buyer;

3) the name and address of the consignor and consignee;

4) the number of the settlement document when an advance or other payments are received against future deliveries of goods (performance of works, rendering of services);

5) the name of the delivered (shipped) goods (description of the executed works, rendered services) and unit of measurements (where it is possible to indicate);

6) the quantity (volume) of goods (works, services) delivered (shipped) under the invoice on the basis of units of measurement accepted for it (where it is possible to indicate);

7) the price (tariff) per unit of measurement (where it is possible to indicate) under an agreement (contract) less the tax, and if state controlled prices (tariffs) are used, including the tax, with allowance for amounts of the tax;

8) the cost of goods (works, services) for the entire quantity of delivered goods (shipped) on the invoice (executed works, rendered services) less the tax;

9) the sum of excise duty levied on excisable goods;

10) the tax rate;

11) the amount of tax the buyer of goods (works, services) is charged which is defined on the basis of effective tax rates;

12) the cost of the entire quantity of goods delivered (shipped) (executed works, rendered services) under the invoice with allowance for the amount of tax;

13) the country of origin of goods;

14) the number of the cargo customs declaration.

Information stipulated by Subitems 13 and 14 of the present Items shall be submitted concerning goods whose country of origin is not the Russian Federation. The taxpayer selling aforesaid goods shall be responsible only for the conformity of aforesaid information in the invoices presented by him to the information contained in the invoices received by him and in the shipping documents.

6. The invoice shall be signed by the head and chief accountant of the organization or other officials authorized thereto by an order (by other administrative document) of the organization or by a letter of authority on behalf of the organization. When an invoice is drawn up by an individual businessman the invoice shall be signed by the individual businessman, and state the requisites of the state registration certificate of such individual businessman.

7. In case when an obligation is denominated in a foreign currency under the terms of a deal, the amounts of money specified in an invoice, can be stated in foreign currency.

8. The order of keeping a log-book of received and drawn up invoices, books of purchases and books of sales shall be established by the Government of the Russian Federation.