How to arrange representation expenses
To confirm the need for such costs, you must make supporting documents. You also need to have an order from the manager about the use of funds by the campaign for suchcosts. primary documents (these may be invoices for purchases of any products, acts on the provision of services, etc.), as well as an act on the performance of representation expenses.
Next you need to make an estimate. It should consist of the following items: the purpose of the event, date, location, composition, the value of hospitality and the program of the reception. You also need to make a down report use the amount on the basis of primary documents (checks, invoices, receipts, etc.).
After using these funds, the manager must form a statement that includes a report on costs and the amount of actual amounts spent. This document is signed and sealed by the organization.
According to the PBU, representativecosts may be included in the calculation of taxes in the reporting period only if they together do not exceed 4% of the labor costs.
In accounting, such costs are reflected in the account 26 "General economiccosts Or 44 "Expenses for sale". If thesecosts exceed the limit, they are recognized as a deductible difference, which in turn defers the income tax. This deferred amount reduces the tax in subsequent reporting periods.
Such costs are usually not included in the other expenses that are associated with the economic activities of the enterprise. Personal income tax, these amounts are not charged only if you have correctly completed original documents, and the costs justified.
In accounting, you should reflect representativecosts the following transactions:
D44 "Costs for sale" K60 "Settlements with suppliers and contractors" - reflectedcosts at official receptions.
D19 “Value Added Tax on Acquired Values” K60 - VAT accrued.
D60 K51 "Cash Desk" or 50 "Settlement Account" - representative fees paidcosts .
D68 K19 - VAT deducted.
In case of exceeding the limit, postings are made:
D09 “Deferred tax assets” K68 “Calculations for taxes and fees” - deferred tax.
D68 K09 - deferred tax paid.
D68 K19 - deferred tax asset is deductible.