Article 198. The Tax Amount Presented by the Vendor to the Buyer

1. The taxpayer selling excisable goods he has produced from on-commission raw material (materials), or selling excisable mineral raw materials, or selling alcohol products from the excise warehouses of wholesalers, is obliged to present for payment to the buyer of said goods and/or mineral raw materials (owner of the give-and-take raw material (materials) a corresponding amount of excise tax.

2. The appropriate amount of excise tax shall be stated in a separate line in settlement documents, including in the registers of receipts and registers to receive funds from a letter of credit, primary registration documents and in invoices (Article 169 of the present Code), save the cases when excisable goods and excisable raw materials are sold off the territory of the Russian Federation.

3. In case of the sale of excisable goods and/or excisable mineral raw materials, the operations on which sale according to Article 183 of the present Code are exempt from taxation, settlement documents, primary registration documents and invoices are to be made out without allocation of the appropriate excise tax amounts in separate lines. In so doing, the stamp "Without excise tax" is affixed or the phrase is written on said documents.

4. In case of the sale of excisable goods to the population at wholesale prices, the appropriate tax amount shall be included in the price of said goods. Thus, on labels of goods and price tags which are displayed by the vendor and also on receipts and other documents issued to the buyer, the appropriate excise tax amount shall not be singled out.

5. In case of import of excisable goods to the customs territory of the Russian Federation, the appropriate filled in customs forms and settlement documents confirming the fact of payment of the excise tax shall be used as control documents to prove propriety of tax deductions.

6. If excisable goods are exported under the customs treatment of export from the territory of the Russian Federation, the following documents must be submitted to the tax authorities at the place of registration of the taxpayer to confirm propriety of exemption from payment of the excise tax and the tax deductions within 180 days from the date of sale of said goods:

1) contract (copy of the contract) of the taxpayer with his contracting party on the delivery of excisable goods. If the excisable goods are delivered for export under a contract of commission agency, contract of delegation or an agency contract, the taxpayer shall submit to the tax authorities a contract of commission agency, contract of delegation or an agency contract (copies of the said contracts) and the contract (copy of the contract) of the person delivering the excisable goods for export on order of the taxpayer (in accordance with the contract of commission agency, contract of delegation or agency contract) with the contracting party.

In case the export of excisable goods produced from on-commission raw materials is effected by an owner of on-commission raw materials, the taxpayer shall submit to the tax authorities the agreement between the owner of excisable goods produced from on-commission raw materials and the taxpayer on production of excisable goods and the contract (copy of the contract) between the owner of on-commission raw materials and the contracting party.

In case the export of excisable goods produced from on-commission raw materials is effected by another person under a contract of commission agency or another agreement with the owner of the on-commission raw materials, the manufacturer of these goods from on-commission raw materials acting as the taxpayer shall submit to the tax authorities in addition to the agreements between the owner of excisable goods produced from the on-commission raw materials and the taxpayer on production of excisable goods the contract of commission agency, contract of delegation or agency contract (copies of said documents) between the owner of these excisable goods and the person delivering the goods for export, as well as a contract (copy of the contract) of the person delivering the excisable goods for export with the contracting party;

2) payment documents and a bank abstract (copies of payment documents and copies of a bank abstract) confirming the actual receipt of proceeds from sale of excisable goods to the foreign person to an account of the Russian supplier with a Russian bank.

If the delivery for export of excisable goods is performed under a contract of commission agency, contract of delegation or an agency contract, the taxpayer shall submit to the tax authorities the payment documents and a bank abstract (their copies) confirming the actual receipt of proceeds from the sale of excisable goods to the foreign person to an account of the commission agent (attorney, agent) with a Russian bank registered with the tax authorities.

In case the export of excisable goods produced from on-commission raw materials is performed by the owner of said goods, the manufacturer of these goods from on-commission raw materials acting as the taxpayer shall submit to the tax authorities the payment documents and a bank abstract (their copies) confirming the actual receipt of proceeds from the sale of excisable goods to the foreign person to an account of the owner of the excisable goods produced from on-commission raw materials with a Russian bank. After proceeds from the sale of goods produced from on-commission raw materials to the foreign person are received in an account of the taxpayer or holder of these excisable goods from an organization registered as a taxpayer in the Russian Federation, but not from the foreign person, it is necessary to submit to the tax authorities, besides payment documents and bank abstracts (their copies), the contracts of delegation as regards the payment for exported excisable goods between the foreign individual or organisation which has effected the payment.

If foreign currency earnings from the sale of excisable goods are not entered into the territory of the Russian Federation, are performed in compliance with the procedure established by the legislation of the Russian Federation on currency regulation and currency control, the taxpayer shall submit to the tax authorities the documents (their copies) confirming the right not to enter foreign currency earnings to the territory of the Russian Federation;

3) a cargo customs declaration or a copy thereof bearing an annotation of the Russian customs body which has cleared the good under the customs regime of export and the Russian customs body in whose area of activity the check-point is located through which the said goods have been taken out of the customs territory of the Russian Federation (hereinafter referred to as "border customs body").

When petroleum products are taken out of the territory of the Russian Federation under the customs regime of export by pipeline a full cargo customs declaration shall be filed as bearing annotations of the Russian customs body that has completed customs formalities in respect of this petroleum product exportation.

When petroleum products are taken to third countries across Russia's border with a member state of the Customs Union, with customs control having been abolished at such a border, under the customs regime of export a cargo customs declaration shall be filed as bearing annotations of the customs body of the Russian Federation that has completed customs formalities in respect of this petroleum products exportation;

4) copies of transport or forwarding documents or other documents bearing annotations of border customs bodies of foreign states confirming that the goods have been taken out of the customs territory of the Russian Federation, except for the exportation of petroleum products under the customs regime of export across the border of the Russian Federation.

When petroleum products are taken out of this country under the customs regime of export via sea ports copies of the following documents shall be filed with the tax bodies to confirm the exportation of the goods out of the customs territory of the Russian Federation:

a copy of instructions for shipment of the exported petroleum products including an indication of the unloading port complete with the annotation "Loading permitted" from the customs border house of the Russian Federation;

a copy of the bill of lading for the carriage of the exported petroleum products where a port located outside of the customs territory of the Russian Federation is indicated in the column "Port of unloading". Copies of transport/forwarding documents and/or other documents confirming the exportation of petroleum products out of the customs territory of the Russian Federation need not be filed in the case of exportation of petroleum products under the customs regime by pipeline.

When petroleum products are taken out of this country under the customs regime of export by railway tanks copies of transport/forwarding and/or other documents shall be filed by the taxpayer with the tax bodies to confirm the exportation of the goods out of the customs territory of the Russian Federation, such documents bearing annotations entered by the Russian border customs body.

7. In case of non-submission or partial submission of the documents listed in Item 6 of the present Article and confirming the fact of export of excisable goods from the territory of the Russian Federation which should be presented to tax authorities at the place of registration of the taxpayer, the excise tax shall be paid on said excisable goods in the order laid down by the present Chapter for operations in the sale of excisable goods on the territory of the Russian Federation.

Article 199. The Procedure for Referring Excise Tax Amounts

1. Amounts of excise tax calculated by the taxpayer in case of sale of excisable goods and/or excisable mineral raw materials (except for sale on a gratuitous basis) and presented to the buyer, shall be referred to the taxpayer to expenses accepted for deduction when computing the organization's profit tax.

Amounts of excise tax calculated by the taxpayer on operations of transfer of excisable goods and/or excisable mineral raw materials recognized as an item of taxation according to the present Chapter, and also in case of their sale on a gratuitous basis shall be referred to the taxpayer to the charge of corresponding sources to the charge of which are referred expenses under said excisable goods and/or excisable mineral raw materials.

2. Amounts of excise tax presented by the taxpayer to the buyer in case of sale of excisable goods and/or excisable mineral raw materials for the buyer shall be accounted in the cost of bought excisable goods and/or excisable mineral raw materials, unless otherwise stipulated by Item 3 of the present Article.

Amounts of excise tax actually paid when importing excisable goods to the customs territory of the Russian Federation shall be taken into account in the cost of said excisable goods, unless otherwise is stipulated by Item 3 of the present Article.

Amounts of excise tax presented by the taxpayer to the owner of the on-commission raw material (materials), shall be referred by the owner of on-commission raw material (materials) to the cost of excisable goods and/or excisable mineral raw materials produced from said raw material (materials).

3. There shall not be included into the cost of acquired, or imported to the territory of the Russian Federation, or transferred on commission, excisable goods and there shall be subject to deduction or return in the procedure provided for by this Chapter, the amounts of the excise tax, the purchaser is charged with, when buying said goods, or the amounts of the excise tax subject to payment, when importing to the territory of the Russian Federation, or the amounts of the excise tax, the owner of goods (materials) made on commission is charged with, when transferring excisable goods used as raw materials in production of other excisable goods. Said provision shall apply, where the rates of the excise tax with regard to the excisable goods used as raw materials and the rates of the excise tax with regard to the excise goods made from these raw materials are determined on the basis of an equal measurement unit of the tax base.

Article 200. Tax Deductions

1. The taxpayer has the right to reduce the total excise tax amount on excisable goods defined according to Article 194 of the present Chapter by tax deductions laid down in the present Article.

2. Deductible shall be amounts of excise tax presented by vendors and paid by the taxpayer when acquiring excisable goods or paid by the taxpayer when importing excisable goods to the customs territory of the Russian Federation which have been released for free circulation and used thereafter as raw material to produce excisable goods. If the said excisable goods get lost in the course of the storage, relocation and subsequent technological processing thereof the amounts of excise tax shall also be subject to deduction. In such a case the following shall be subject to deduction: the amount of excise relating to the part of the goods irreparably lost within the natural wear and tear rates endorsed by the authorised federal executive body for a relevant group of goods.

3. By transfer of excisable goods produced from on-commission raw material (materials), if the excisable goods are on-commission raw material (materials), deductable shall be amounts of tax paid by the owner of said on-commission raw material when acquiring the latter or paid by him when importing this raw material (materials) to the customs territory of the Russian Federation and released for free circulation as well as the excise tax amount paid by the owner of on-commission raw material (materials) in the course of its production.

4. Deductible shall be amounts of excise tax paid on the territory of the Russian Federation on ethyl alcohol produced from food raw material used in the production of wine materials and thereinafter used in the production of alcoholic products.

5. Deductible shall be amounts of excise tax paid by the taxpayer when a buyer returns excisable goods (including return during warranty period) or rejects such.

6. Deductible shall be amounts of advance payment paid when acquiring excise marks or in case when special regional stamps are being acquired, on excisable goods subject to obligatory marking.

7. The taxpayer shall be entitled to reduce the sum total of excise tax on excisable goods and/or excisable mineral raw materials determined under Articles 188 and 194 of the present Code by the sum of excise tax calculated by the taxpayer on the amounts of advance and/or other payments received to offset future delivery of excisable goods and/or excisable mineral raw materials.

Article 201. The Procedure for Tax Deductions' Application

1. The tax deductions stipulated by Items 1 - 4 of Article 200 of the present Code shall be made on the basis of settlement documents and invoices drawn up by vendors when the taxpayer acquires excisable goods or presented by a taxpayer to the owner of oncommission raw (materials) in production thereof, or on the basis of customs declarations or other documents confirming the fact of import of excisable goods to the customs territory of the Russian Federation and the payment of a corresponding excise tax amount.

Deductible shall only be amounts of excise tax actually paid by vendors in case of purchase of excisable goods or presented by a taxpayer to the owner of oncommission raw (materials) in production thereof, or actually paid in case of import of excisable goods to the customs territory of the Russian Federation which were released for free circulation.

If third persons pay for excisable goods used as raw material in the production of other goods, tax deductions shall be made if settlement documents give the name of the organization for which the payment was made.

If excisable goods on which on the territory of the Russian Federation excise tax has already been paid were used as the give-and-take raw material tax deductions, when the taxpayers submit copies of payment documents, a mark of the bank shall be necessary to confirm the fact of payment of the tax by the owner of the raw material (materials) or the fact of payment by the owner of the cost of the raw material at prices which include excise tax.

The tax deductions provided for using excisable goods, previously made by a taxpayer from on-commission raw, as on commission raw shall be effected on the basis of copies of the basic documents confirming the fact of charging the owner of this raw with said amounts of the excise tax by a taxpayer (of an act of acceptance and conveyance of excisable goods made, or of an act of production, or of an act of return of excisable goods for production) and of payment documents marked by a bank which confirm the fact of the raw owner's payment for production of the excisable goods with the account taken of the excise duty.

2. The deductions of amounts of excise tax specified in Item 4 of Article 200 of the present Code shall be made when taxpayers submit payment documents bearing a mark of bank confirming the fact of payment by the vendor producing wine material and ethyl alcohol produced from food raw materials at prices that include excise tax. In so doing, deductible shall be the amount of tax at a rate which should not exceed the amount of excise tax computed by the formula:

Ñ = (A õ Ê):100 %) õ O,

where:

Ñ - stands for the amount of excise tax paid on ethyl alcohol used in wine production;

A - stands for the tax rate per litre of absolute ethyl alcohol;

K - stands for strength of wine;

O - stands for the volume of sold wine.

An amount of excise tax exceeding the amount of excise tax calculated according to the said formula shall be referred to the incomes remaining at taxpayers' disposal after the tax on the profit of organisations.

3. The deductions of amounts of excise tax stated in Items 1-4 of Article 200 of the present Code shall be made on the part of the cost of corresponding to excisable goods used as basic raw material, such cost being actually included into production outlays of other sold (transferred) excisable goods accepted for deduction when calculating the organizations' profit tax.

If over a reporting tax period the cost of excisable goods (raw material) is referred to production outlays of other sold (transferred) excisable goods without payment of the excise tax on these goods (raw material) to the vendors, the amounts of excise tax shall be deductible in the reporting period when it was paid to the vendors.

4. Amounts of excise tax detailed in Item 2 of Article 200 of the present Code in relation to excisable goods exported under the regime of export from the territory of the Russian Federation shall be deducted if there is documentary confirmation of customs houses of the fact of export of the corresponding excisable goods from the customs territory of the Russian Federation and the deductions shall not apply to export of goods for processing outside the customs territory of the Russian Federation.

5. The deductions of amounts of excise tax indicated in Item 5 of Article 200 of the present Code, shall be effected in full after appropriate adjustment operations in connection with the return of these goods or rejection of these goods are reflected in the record-keeping, but no later than one year from the time of return of these goods or rejection of these goods.

6. The deductions detailed in Item 6 of Article 200 of the present Code shall be made when the taxpayer makes the final calculation of the payable excise tax amount in the case of import of excisable goods into the customs territory of the Russian Federation or relating to sold (delivered) excisable goods.

7. The tax deductions indicated in Item 7 of Article 200 of this Code shall be effected upon showing in accounts operations in sale of excisable goods and excisable mineral raw.