Specifying value added tax in a government contract with a contractor using a simplified taxation system does not oblige him to issue an invoice
Organizations and individual entrepreneurs using the simplified taxation system, when carrying out operations for the sale of goods (works, services), should not draw up and issue invoices to buyers.
Moreover, if such persons issue an invoice to the buyer of goods (works, services) with the allocation of the amount of value added tax, the entire amount of tax indicated in this invoice, in accordance with clause 5 of Art. 173 of the Tax Code of the Russian Federation is subject to payment to the budget. This is confirmed by the position of the Constitutional Court of the Russian Federation.
Thus, if in a state contract for the supply of goods (works, services) their value is indicated “with value added tax”, if an invoice is not issued to the seller using the simplified taxation system, the obligation to pay value added tax to the budget is not arises.
Indication in a government contract of a price “with value added tax” does not in itself oblige the seller applying the simplified taxation system to issue an invoice, however, if he issues an invoice, he will be obliged to pay the tax amount to the budget in accordance with paragraph. 5 tbsp. 173 of the Tax Code of the Russian Federation.
Document: Letter of the Federal Tax Service of Russia dated October 10, 2023 N SD-4-3/12950@
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