The state contract with the contractor on the simplified system of the taxation-payment with coefficient 0,18 the court declared illegal
In the preparation of the auction documentation, the state calculated the price including VAT. The only participant was the contractor who applied the simplified tax system, so the contracts stated the price proposed by the participant without allocation of the tax.
The financial control found that in the acts of the performed works their cost is calculated taking into account the unnamed coefficient 0,18. This means that the contractor specified the price of each item according to the estimate made by the customer. Since these prices do not include VAT, he had to introduce an increase factor, so that in the end the cost of the work performed corresponds to the price of the contract.
Payment of the amount that fell on this ratio, the inspectors found a violation of the requirements of the budget legislation. The courts supported them, noting that no documentation, no estimate, no contract does not provide for application of the coefficient of 0.18 for determining the cost of work.
Recall, the Ministry of Finance has repeatedly confirmed that the price of the contract with the contractor applying the simplified system is not subject to a reduction in the amount of VAT.
The contractor should have recalculated the price of each item in the acts rather than adjusted the cost of the work by a factor. Customers recommend in such situations to change the estimate or to provide in the contract the condition about the order of determination of rates in case the contractor applies the simplified taxation system.
Document: Regulation AC East-Siberian district from 27.11.2018 in the case of N A74-15438/2017