The LLC is a management organization and, under a management agreement, carries out the maintenance and repair of the housing stock. Residents of one of the buildings being serviced decided to move to another management company. At the time of the transition, according to house-to-house accounting data, there were unused funds left on the house. The new management company wants this amount to be transferred to their current account. What is the procedure for reflecting in accounting and for tax purposes (in relation to corporate income tax and VAT) the direct transfer of the balance of funds previously transferred by the owners for the maintenance and repair of the housing stock?
On this issue we take the following position:
The management company, in its accounting, if the owners refuse its services, will reflect the termination of obligations to the owners of the premises, the occurrence of debt to the organization chosen by the owners of the premises in an apartment building to manage this building, and the subsequent disposal of the asset.
The return of unused funds transferred for the maintenance and repair of the housing stock does not form an object of VAT taxation and does not cause the appearance of income and expenses taken into account when calculating the tax base for the corporate income tax of the transferring party.
Justification for the position:
Owners of premises in an apartment building (hereinafter - MKD) are required by law to pay a fee for the maintenance and repair of residential premises, including for services and work on managing the MKD (, Housing Code of the Russian Federation). Payment for services and work on the maintenance and repair of these premises is made in accordance with agreements concluded with persons engaged in the relevant types of activities (LC RF).
Payment for the maintenance and repair of the common property of an apartment building is set in an amount that ensures the maintenance of this property in accordance with the requirements of the law ( Housing Code of the Russian Federation, clause 29 of the Rules for the maintenance of common property in an apartment building, approved by the Government of the Russian Federation of August 13, 2006 N 491).
In accordance with the Housing Code of the Russian Federation, a management agreement for apartment buildings is concluded with the management organization, which has been granted a license to carry out activities for managing apartment buildings, in writing by drawing up one document signed by the parties. Under such an agreement, one party (the management organization), on the instructions of the other party (the owners of the premises in the apartment building), within an agreed period for a fee, undertakes to perform work and (or) provide services for the management of the apartment building, to provide services and perform work on the proper maintenance and repair of common property , provide utilities to the owners of premises in such a house, and carry out other activities aimed at achieving the goals of managing apartment buildings ( Housing Code of the Russian Federation).
Housing legislation does not regulate the procedure for transferring to a newly selected management organization the funds transferred by the owners of the premises for the current repair of the common property of the house to the previous management organization (see also: The owners of an apartment building chose a management company (hereinafter referred to as the Management Company) and decided to contribute additional funds to the article “Routine repairs”, in order to carry out a number of works on routine repairs of the common property after their accumulation. However, four months later, the license issued by the management company was revoked. Currently, the owners must enter into an agreement with another management company. Are the accumulated and unspent funds subject to transfer to another management company? funds under the article “Current repairs”? (response from the Legal Consulting Service GARANT, May 2015) and the Federal Antimonopoly Service of the Volga District dated January 17, 2012 N F06-11765/11 in case N A55-3944/2011).
Accounting
Prepared answer:
Expert of the Legal Consulting Service GARANT
Volkova Olga
Response quality control:
Reviewer of the Legal Consulting Service GARANT
Queen Helena
The material was prepared on the basis of individual written consultation provided as part of the Legal Consulting service.
Many multi-storey buildings today are maintained and operated, which must provide high-quality utilities and carry out cosmetic and. Accounting in a management company is carried out with specific features, which will be discussed below.
How to conduct accounting in a management company
Accounting entries in the housing and communal services management company often concern only two actions:
- Purchasing resources from supply companies.
- Sale of resources to residents of houses.
In the first action, accountants form accounts payable and expenses of the management company, in the second - accounts receivable and profit. Therefore, it is better to conduct accounting in housing and communal services in the following way - create an accounting policy. This refers to the nuances of accounting for assets and liabilities, profits and losses. The more correctly and accurately the accounting entries are drawn up, the more elementary the work of accountants will be. Why this is needed is clear, but what it should include in a little more detail. This is an accounting of the following transactions:
- settlements with companies providing resources;
- material consumption;
- settlements with tenants-buyers of utilities;
- income and expenses;
- performers' salaries;
- tax calculations;
- settlements under other counterparty agreements.
All the basic provisions that help to correctly conduct the accounting policy in the housing and communal services management company regarding expenses and income are in Accounting Regulations 1/2008. In addition to accounting, the management company also maintains tax accounting in public utilities, the policy of which meets the criteria Tax Code of Russia.
The chart of accounts is necessary directly for accounting, therefore such activities are approached with full responsibility. The work plan is created on the basis of a legislative act of the Ministry of Finance. It is necessary to enter into the plan only accounts that are actually used by the management company. And, for example, postings related to animals and other similar ones should not be included.
In many cases, management companies use a unified form for accounting purposes, which is approved by Goskomstat. But since 2013 it may not be used. In any situation, management companies approve their forms in their accounting policies. Samples can be found for free on the Internet.
The accounting policy, chart of accounts and accounting forms must be drawn up in one order, which is signed by the management of the management company and the chief accountant. Such an act should be rewritten every year, since laws change and accounting policies become outdated.
The accounting records of enterprises must be maintained without interruption, regularly, all actions are reflected in the postings, which will be discussed below, and in primary documents. Accountants must prepare reports in accordance with the required standard, which is written in Federal Law “On Accounting”. In addition, statistics are also calculated. The accounting policy processes described above are necessarily carried out in the accounting department of the management company.
OSNO or simplified
The general tax system (OSNO) is more suitable because of its simplicity for all management companies. But the rather large amount of income tax - 20 percent and VAT make this type not very profitable. When paying VAT to OSNO, management companies have benefits in comparison with other commercial organizations, since, in accordance with tax legislation, utility bills that are provided to residents and repair work with hired accounting personnel are not subject to VAT.
But legal standards in reality do not provide any economic benefits to utility management organizations. When purchasing resources, this is impossible, since the purchase is carried out at a single tariff, so the tax base for VAT is zero. When providing paid services to owners and tenants, VAT is not charged only in a situation where the profit is equal to the costs to the contractors.
Therefore, it is often beneficial to use a simplified taxation system, but there are also restrictions on its use:
- if the profit exceeds 60 million rubles, then simplification is impossible;
- if a utility company has more than 100 people on its staff, then such a simplified tax system is also impossible;
- You cannot use the simplification even if the cost of fixed assets is less than 100 million rubles.
But in reality, most criminal codes correspond to the data for the simplified tax system. You can make the simplified form the main form for taxation at the tax service; you just need to write a proper application before the end of the year. Under the simplified tax system, companies are exempt from VAT and income tax, but at the same time they pay the tax that is necessary for this regime.
For the “income” section, the amount of this tax is 6 percent, and for the “income minus expenses” section – 15 percent. A feature of this form of taxation is the establishment of profit using the cash method, which means that income is determined only by the inflow of money and its outflow from the management account.
To select a system, the income and expenses of utility management companies should be taken into account and compared by the accounting service. When they are often in the red, it is more profitable to use the simplified taxation system “income minus expenses”, because you will only need to pay minimal fees in the amount of one percent of the profit for a specific period of time. But it is also worth considering that such figures may differ greatly from income and expenses using the accrual method.
Postings in accounting of the management company
Now let's look at the accounting entries, the number of which exceeds other calculations in the management company. To make it more convenient, we will divide them into two subsections, which we outlined earlier:
Purchasing resources:
- D20 K60 – purchase of electricity, water and gas from resource supply organizations;
- D19 K60 – VAT on purchased resources is reproduced;
- D68 K19 – VAT is omitted for deduction;
- D60 K51 – money was transferred as payment for purchased resources.
Providing services to residents of apartment buildings:
- D62 K90/1 – invoicing of utility organizations;
- D 90/2 K20 – displays the cost of the provided CG;
- D90/3 K68 – VAT calculated by the company;
- D51 K62 – payment from residents;
D60 K62 - transfer of money that was credited from residents to.
This posting example is effective for management companies that use OSNO. When accounting using simplified accounting, the third and seventh points are excluded. VAT benefits under the general system are reflected in calculations in the following way:
- D20 K19 – VAT on purchased resources is reflected in the cost price.
The third and seventh points are also excluded. All these operations occur more often than others at the management company, but other transactions also occur. If such cases arise, please refer to the instructions for the chart of accounts, which is included in Order No. 94n of the Ministry of Finance.
OKVED
When a management company is registered, you need to select a code in the All-Russian Classifier of Types of Economic Activities (OKVED). This is necessary so that regulatory authorities are aware of the company’s activities. For the management company this is code 70.32.1 (Management of housing stock activities). But often the criminal code is set value 70.32 (Real estate management), which connects three subtypes of activity.
To summarize, let's say that the accounting policies of the housing and communal services management company do not cause difficulties in calculations, since they are the same type of operations. The main thing is to maintain order and conduct housing and communal services and accounting at enterprises regularly without interruptions, and also act in accordance with the regulations and current laws. Then no questions will be asked.
In the last article we looked at the activities and, in this article, we will pay attention to the following questions: what is the main activity of the Management Company (MC) and what are the features of accounting in the Management Company?
The management company buys housing and communal services from suppliers and sells them to the public. Let's look at how accounting is organized in the Management Company.
Accounting entries in the Criminal Code.
D-t 20 K-t 60 – invoices received from housing and communal services suppliers.
D-t 19 K-t 60 – incoming VAT from the accounts of housing and communal services suppliers.
Dt 26 Kt 60 – invoices received from the Unified Center for services to the population.
D-t 19 K-t 60 – incoming VAT from the Unified Center.
D-t 76 "ERC" K-t 90.1 - accrued housing and communal services according to the ERC certificate for the current month.
Analytical accounting separately for each payer (payment and accrual) is carried out in the Unified Center. Housing and communal services organizations (namely, management companies) receive from the Unified Center only summary data on accrual and payment; accordingly, the management company reflects in its accounting only the total debt of citizens for housing and communal services, which is collected by the Unified Center.
It turns out that the situation with the organization of accounting in the Management Company is a little unclear, however, for Russia there are plenty of them. Namely: the Criminal Code in accounting reflects the debt of the population only as the debt of the Unified Center for collecting payments. The SRC does not indicate the debt to the management company in its balance sheet, since the funds passing through it are transit. Often, SRCs indicate debt to housing and communal services (MC) only after receiving payments from the population. In this case the following wiring is done:
D-t 50, 51 K-t 76 "Debt to suppliers of housing and communal services"
Payments have been received from the public.
Then the URC transfers money to housing and communal services suppliers minus its remuneration and reflects this operation with the following posting:
Dt 76 "Debt to suppliers of housing and communal services" Dt 51.
Consequently, the activity of the Management Company is to establish contractual relations with citizens and with the ERC. An agency agreement can also be concluded with the ERC. Let's take the following situation as an example.
The ERC provides services for calculating payments for housing and communal services to citizens, and indicates the current account of the management company in receipts. At the end of the month, the ERC transfers all data on accruals to the management company. In this case, the Criminal Code itself keeps analytical records for each citizen separately: for the accrual and payment of housing and communal services.
Then the management company will make the following entries for each person separately.
D-t 76 K-t 90.1 – debt of citizens for housing and communal services has been accrued.
D-t 90.3 K-t 68 “VAT” - VAT is charged on services.
D-t 90.2 K-t 20, 26 – write-off of costs.
Dt sch. 90.9 Set count. 99 (or D-t account 99 K-t account 90.9) – the financial result from the activities of the management company is calculated.
Based on clause 13 of Art. 40 of the Tax Code of the Russian Federation, when selling goods, works, services at regulated state prices, state prices are accepted for taxation. If organizations sell taxes to citizens at preferential prices, then they are required to reflect revenue for services at state prices without applying benefits that are established for certain categories of citizens.
Those. preferential amounts are included in sales and VAT is charged on them. This records the following:
D-t 76 “Budget debt for benefits” K-t 90.1
D-t 90.3 K-t 68 - VAT is charged to the budget.
Analytical accounting for beneficiaries is carried out in the context of each category and the corresponding budget (federal, regional or local) in the debit of account 76 “Budget debt for benefits.”
There are cases when a management company leases or for maintenance municipal property (boiler houses, heating networks, water supply, sewerage networks, etc.) or some part of them. Thus, the management company has the right to provide utility services itself. Then the costs of the enterprise will also include the costs of renting municipal property.
According to the law, the provision of services is already a business activity (Clause 1, Article 2 of the Civil Code of the Russian Federation), which is aimed at making a profit from the use of property and is carried out at your own peril and risk. This is a commercial activity that is already subject to taxation in accordance with the general procedure. Therefore, accounting in the Management Company must be carried out according to the general accounting rules.
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Owners of premises in an apartment building are required to choose one of the management methods:
- direct control;
- management of a homeowners' association or housing cooperative or other specialized consumer cooperative;
- management of the management organization.
This is stated in Part 2 of Article 161 of the Housing Code of the Russian Federation.
The approximate terms of the management agreement for an apartment building were approved by order of the Ministry of Construction of Russia dated July 31, 2014 No. 411/pr.
Composition of the common property of an apartment building
The common property of an apartment building (the repair of which is provided by the management company) includes, in particular:
- inter-apartment landings, stairs;
- elevators, elevators and other shafts;
- corridors;
- technical floors;
- attics;
- basements with utility lines;
- other equipment serving more than one room in a given house (technical basements):
Roofs enclosing load-bearing and non-load-bearing structures of the house;
Mechanical, electrical, plumbing and other equipment serving more than one room.
A complete list of common property is given in Section I of the Rules, approved by Decree of the Government of the Russian Federation of August 13, 2006 No. 491.
The form for describing the composition and technical condition of common property is given in Appendix 1 to the approximate conditions approved by Order of the Ministry of Construction of Russia dated July 31, 2014 No. 411/pr. The form is not mandatory; the owners of the premises of an apartment building have the right to independently determine a specific list of common property and draw up free form (letter from the Ministry of Regional Development of Russia dated April 4, 2007 No. 6037-RM/07).
Sources of financing for repairs
Current repairs
Current repairs of common property are paid for by tenants and owners of residential premises, as well as owners of non-residential premises. The money goes directly to the account of the management company in the form of fees for the maintenance and repair of common property (Articles 154 and 158 of the Housing Code of the Russian Federation).
Major renovation
The owners make monthly contributions for capital repairs, which form a capital repair fund. And the procedure for financing future capital repairs also depends on where this fund is formed.
If the fund is formed on the account of the management company, then the source of financing for the repairs will be direct contributions from the owners. From this account the management company pays for major repairs carried out on its own or with the involvement of contractors.
When forming a fund on the account of a regional operator, the procedure for financing capital repairs is as follows. The regional operator, on its own behalf, enters into an agreement with contractors to carry out major repairs. In this case, the management company can also act as a contractor. In this case, the receipt of money by the management company from the regional operator is nothing more than payment for work performed under a regular contract.
This follows from articles 154, 158, 170, 171, 174, 175, 180-182 of the Housing Code of the Russian Federation.
The legislation also provides for the possibility of carrying out major repairs at the expense of federal, regional or local budgets (subclause 2, clause 1, article 165 and part 2, article 191 of the Housing Code of the Russian Federation).
Accounting: receipt of financing
Regardless of whether the repair is current or major, reflect the receipt of funds for it in accounting depending on the source of financing.
If the repairs are co-financed by budget funds, make the following entries in accounting:
Debit 76 Credit 86
- reflects the budget debt (the amount of allocated budget funds);
Debit 55 Credit 76
- funds for repairs were received from the budget.
This conclusion follows from paragraph 7 of PBU 13/2000 and the Instructions for the chart of accounts.
Reflect funds for repairs received from owners and tenants of premises as part of advances:
- funds for repairs were received from the owner (tenant) of the premises.
Reflect funds for repairs received from the regional operator as follows:
Debit 51 Credit 62 “Settlements on advances received”
- received an advance for repairs from the regional operator;
- funds for repairs were received from the regional operator.
This follows from the Instructions for the chart of accounts and paragraph 3 of PBU 9/99.
Accounting: spending of owners' funds, budget money
If the source of financing for repairs is the funds of the owners and tenants of the premises, as well as budgetary funds, then the accounting procedure for their expenditure depends on the method of carrying out the repairs (contract or business).
If the management company carries out routine or major repairs with the involvement of a contractor, then make the following entries in the accounting:
Debit 20 Credit 60
- expenses for repairs performed by third-party contractors are reflected;
Debit 19 Credit 60
- input VAT presented by the contractor is taken into account;
Debit 20 Credit 19
- the amount of VAT claimed by the contractor is included in the costs of repairs performed by third-party contractors;
Debit 60 Credit 51 (55)
- payment was transferred to a third-party contractor performing repairs;
Debit 90-2 Credit 20
Debit 62 Credit 90-1
Debit 86 Credit 90-1
If the management company carries out current or major repairs on its own, then make the following entries in the accounting:
Debit 10-5 Credit 60
Debit 19 Credit 60
Debit 10-5 Credit 19
Debit 20 Credit 70 (69, 10...)
Debit 86 Credit 90-1
- revenue from sales is reflected at the time of acceptance of repair work (at the expense of budgetary funds);
Debit 62 Credit 90-1
- revenue from sales is reflected at the time of acceptance of repair work (at the expense of funds received from the owners and tenants of the premises);
Debit 90-2 Credit 20
- expenses for repairs are written off to cost;
Debit 62 “Settlements on advances received” Credit 62
- prepayment received from the owners (tenants) of the premises is taken into account.
This conclusion follows from paragraphs 8, 12 of PBU 13/2000, paragraphs 12 and 13 of PBU 9/99, paragraph 18 of PBU 10/99 and the Instructions for the chart of accounts.
Accounting: spending funds of the regional operator
When the management company acts as a contractor under an agreement with a regional operator, make the following entries in accounting:
Debit 10-5 Credit 60
- materials for repairs were purchased;
Debit 19 Credit 60
- input VAT on the cost of materials is taken into account;
Debit 68 subaccount “VAT calculations” Credit 19
- accepted for deduction of input VAT on materials (for organizations on OSNO);
Debit 10-5 Credit 19
- input VAT is taken into account in the cost of materials (for simplified organizations);
Debit 20 Credit 70 (69, 10...)
- the costs of repairs carried out by the management company’s own resources are reflected;
Debit 62 Credit 90-1
- revenue from sales is reflected at the time of acceptance of repair work;
Debit 90-2 Credit 20
- expenses for repairs are written off to cost;
Debit 90-3 Credit 68 subaccount “VAT calculations”
- VAT is charged for payment to the budget on sales proceeds;
Debit 62 “Settlements on advances received” Credit 62 “Settlements with the regional operator”
- prepayment received from the regional operator is credited;
Debit 51 Credit 62 “Settlements with regional operator”
- the remainder of the payment from the regional operator for repairs has been received.
This conclusion follows from paragraphs 8, 12 of PBU 13/2000, paragraphs 12 and 13 of PBU 9/99, paragraph 18 of PBU 10/99 and the Instructions for the chart of accounts.
The standard activity of all managers is to purchase the necessary resources from relevant suppliers and then sell them to homeowners.
The functions of the management company also include:
When purchasing and selling resources, accounts receivable and some expenses arise. This is an inevitable moment.
In this regard, accounting in the management company takes place in several stages:
- Choice of accounting policies. Here a list of rules is established and prescribed that allows for other assets of the organization. The more accurately and thoroughly all the nuances are formed and all the issues are sorted out, the easier it will be to maintain accounting records at the enterprise.
- Development and selection of a chart of accounts. This document is generated and updated based on the order of the Ministry of Finance No. 94n. The plan should include only those accounts that will actually be used in the work activities of the management company.
- Approval of forms of primary documents. Management companies can use their own letterheads, having previously produced and approved them, or standard unified forms of documents. In both cases, all documentation must be enshrined in the company’s accounting policies.
- Accounting. These duties are performed by authorized site employees.
- Providing reports. The main documents are the financial report, balance sheet and others provided for by Federal Law No. 402.
The first three points must be specified and formalized in a separate order, which is signed by the director of the company and the chief accountant.
The main job responsibilities of the chief accountant include:
The responsibilities of the chief accountant are not particularly different from the responsibilities of the same position in other areas of activity.
What are the differences between OSNO and simplified tax system?
Management companies have the right to independently choose the taxation system. The difference is that accounting through the simplified tax system is much simpler than in OSNO. The first report has been shortened.
In addition, the accounting specialist does not need to use entries indicating the deduction and accrual of VAT.
We invite you to watch a video about the difference between OSNO and simplified tax system:
What are the main wiring?
To purchase resources, management organizations use the following transactions::
- Debit 19, Credit 60 accounts.
- Debit 60, Credit 51 accounts.
- Debit 20, Credit 60 accounts.
- Debit 68, Credit 19 accounts.
The sphere of provision of housing and communal services involves the use:
All of the above postings are used if the management company has chosen the simplified tax system or OSNO.
However, under the simplified tax system there is a VAT exemption, so some of the above transactions do not apply.
Everything about the accounting policy of the management company
An authorized person develops the accounting policy (AP) in the management company, and most often, this is the chief accountant.
UP is regulated by the Accounting Regulations and the Tax Code of the Russian Federation. The nuances of the procedure include:
- If there are no references to any specific features in the legislation, the Criminal Code has the right to independently develop instructions, regulations, etc.
- The company's accounting policy must include a note about the chosen taxation system.
- carried out taking into account the norms of tax legislation.
The accounting policies of management companies must include:
- Tax payments.
- Wages.
- Accounting for materials.
- Settlements with resource suppliers.
So, we have looked at all the basic accounting rules. The simpler the organization’s management program is, the easier it is to keep records.
Taxation of housing and communal services management companies
All management companies can independently decide which taxation system to choose. There may be two options: simplified tax system or OSNO. Both options contain two types of tax:
- for profit;
- added value.
OSNO is widely used in many organizations. However, the system has a significant disadvantage, which is a high percentage of income tax (20%). Additionally, VAT must be paid.
For the activities of management companies, this percentage is very large and very unprofitable. After all, everyone knows that some new management companies sometimes work negatively at first.
However, the advantage is the fact that VAT does not apply to services provided by management companies. This point is clearly explained by Article 149 of the Tax Code of the Russian Federation. At the same time, all provided management services have a single price, so the company is not particularly able to earn any profit from this.
If we talk about the simplified tax system, it is used by small companies. As a rule, the income of such companies does not exceed 60,000,000 rubles, and the staff is no more than 100 people. The simplified tax system is the most beneficial for management companies, which is why many companies work with it.
Postings under the simplified tax system
If the organization has chosen a simplified system, then postings D68 K19, as well as D90/3 K68, will not be used. Such postings are necessary for deducting and calculating VAT for those companies that have chosen OSNO.
The advantages of working on the simplified tax system for management companies can be indicated as follows::
- The company does not pay VAT (20%).
- The company is exempt from income tax.
- Payment of a separate fee for using the US is 5-15%.
If an organization uses OSNO, it also has VAT benefits. Benefits can be provided if the management company provided housing and communal services or carried out work on the maintenance and repair of apartment buildings.
OKVED in the housing and communal services sector
Any management company operates its own for the purpose of making a profit. In this regard, all companies are required to undergo appropriate registration and receive a code from the All-Russian Classifier.
This code is assigned so that the tax authorities are aware of what activities a particular organization is engaged in. Legal entities do not have the right to start their activities without receiving a code. The following codes are relevant for the Criminal Code:
- 70.32.2.
- 70.31.
- 70.32.
These figures indicate that the company carries out activities related to real estate management, accounting and inventory.
To summarize, we note that maintaining accounting records in a management company is not difficult if a competent, educated and experienced specialist does it. The main thing that needs to be done is to correctly formulate an accounting policy, decide on the taxation system and know the basic transactions. An up-to-date chart of accounts should always be at the accountant’s workplace. You should also keep up to date with ongoing accounting updates. As a rule, changes occur quite often.
By following these rules, you will prevent problems with maintaining accounting and tax records in management companies, as well as difficulties with the tax authorities.
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