Transport tax declaration (Russia)
According to the tax code of the Russian Federation, vehicles are subject to transport tax.
The tax period for transport tax is one year. At the end of the tax period, a company must report a transport tax declaration.
The transport tax declaration should be submitted to the tax authority where the vehicle is located. In this case, code 260 should be entered for the at place of attribute. However, the greatest taxpayers can submit declarations to the tax authority where the organization is registered as a greatest taxpayer. In this case, code 216 should be entered for the at place of attribute.
The tax base for the calculation of transport tax is one of the following criteria:
Engine power, measured in horsepower
Jet thrust, measured in kilograms of the power
Gross tonnage, measured in vessel tons
The transport tax calculation includes all fixed assets of the Vehicle asset type for which the fixed asset record contains a transport tax code. If the fixed asset is written off or sold during the accounting period, the tax calculation uses data for the month when legal registration and removal from the register occurred.
This article explains how to perform the following tasks:
Set up transport tax
Here is an overview of the steps for setting up transport tax:
[Assign tax allowances to a sales tax code as a reduction of the tax rate -and-a-reduction-of-the-tax-amount](#assign-tax-allowances-to-a-sales-tax-code-as-a-reduction-of-the-tax-rate-and-a-reduction-of-the tax amount)
Optional: Set up company divisions, their registration reason codes (KPP), and their OKTMO codes
Set up the organization's locations and assign them to company divisions
Set up transport tax codes and rates
Go to Tax > Indirect taxes > Sales tax > Sales tax codes.
Create a sales tax code.
In the Type of tax field, select Transport tax.
Specify the settlement period and the ledger posting group.
On the Action Pane, on the Sales tax code tab, in the Sales tax code group, select Values to open the Sales tax code values page.
The transport tax rate depends on the type and power of the vehicle. In the Lower Limit and Upper Limit fields, enter lower and upper limits for the power interval. Then, in the Value field, specify the tax rate for the specified interval.
In some cases, the transport tax rate also depends on the actual useful life of the vehicle. To define the tax rate so that it's based on the vehicle's lifetime, on the Action Pane, on the Transport tax tab, in the Transport tax group, select By lifetime. In the Minimum limit and Maximum limit fields, enter the lower and upper limits for the lifetime. Then, in the Tax value field, specify the tax rate for the specified interval.
Set up budget revenue codes for transport tax
Go to Cash and bank management > Setup > Payment order setup > Budget revenue classification.
Create a budget revenue code for transport tax.
Assign a budget revenue code to a sales tax code
Go to Fixed assets (Russia) > Setup > Tax reporting > Sales tax relations.
Create a record.
In the Type of tax field, select Transport tax.
In the Code field, select the sales tax code for the transport tax.
In the Budget revenue code field, select the budget revenue code that corresponds to the selected sales tax code.
Set up tax allowances
Go to Fixed assets (Russia) > Setup > Tax reporting > Tax allowances.
Create a record.
Set the following values for the tax allowance.
| Field | Description |
|---|---|
| Privilege | Enter the tax allowance code. |
| Type of tax | Select Transport tax. |
| Benefit type | Select the type of tax allowance. The following values are applicable to transport tax allowances: Exemption from tax, Reduction of tax rate, Reduction of tax amount, and Tax deduction. |
| Name | Enter the name of the tax allowance. |
| Allowance value | Define the tax allowance value, depending on type of tax allowance that you selected in the Benefit type field: |
| Article number, Clause, and Sub-clause | Define the article number, clause, and sub-clause of the law in accordance with which the corresponding tax allowance is granted. |
Exemption from tax: Don't define the allowance value, because exemption from tax is always considered 100 percent, and the tax amount is 0 (zero).
Reduction of tax rate: Define the percentage of the tax rate reduction. For example, if the tax rate is 10 percent, and the allowance value is 2 percent, the reduced tax rate is 8 percent.
Reduction of tax amount: Define the amount, in the local currency, that is reducing the calculated tax amount for each asset.
Assign tax allowances to a sales tax code as a reduction of the tax rate and a reduction of the tax amount
Go to Fixed assets (Russia) > Setup > Tax reporting > Sales tax relations.
Select the record for the sales tax code.
In the Allowance by reduction of rate and Allowance by reduction of tax fields, select the appropriate tax allowances, if they are applicable to the sales tax code.
Set up transport tax increasing factor groups and values
The amount of transport tax should be increased for expensive vehicle models that are defined by the Ministry of Production and Trade in an informational letter and annually reviewed. The coefficient that must be considered depends on both the number of years that have passed since the vehicle's year of manufacture and the cost of vehicle. For example, for a vehicle that costs between 3 million and 5 million rubles, if less than one year has passed since its year of manufacture, the increasing coefficient is 1.5.
Go to Fixed asset (Russia) > Setup > Tax reporting > Transport tax increasing factor groups.
Create a group.
On the Transport tax increasing factor values FastTab, define the following increasing factor values.
| Field | Description |
|---|---|
| From date | Enter the date when the factor value starts to apply. |
| Upper lifetime | Enter the upper limit of the lifetime from manufacture that the factor value applies to. |
| Factor | Enter the increasing factor. |
Set up the territory code (OKTMO code) for the legal entity
Go to Organization administration > Organizations > Legal entities.
On the Addresses FastTab, select More options > Advanced.
On the Manage addresses page, on the Registration ID FastTab, create a line.
In the Registration type field, select the registration type for OKATO/OKTMO.
If the required registration type isn't listed, follow these steps to add it:
On the Registration types page (Organization administration > Global address book > Registration types > Registration types), create a registration type.
On the Registration categories page (Organization administration > Global address book > Registration types > Registration categories), assign the new registration type to the RCOAD registration category.
In the Registration number field, enter the OKTMO code for the legal entity's location.
Set up tax authorities and related OKTMO codes
You must create the tax authorities that you're required to report assessed tax declarations to.
Go to Tax > Indirect taxes > Sales tax > Sales tax authorities.
Create a tax authority.
Set the Authority and Name fields.
In the STI code field, enter the four-digit code for the tax authority.
In the Vendor account field, select the vendor account party that is associated with the tax authority.
Define the main OKTMO code for the tax authority on the vendor account:
In the record for the vendor account, on the Addresses FastTab, select More options > Advanced.
On the Registration ID FastTab, add a line.
In the Registration type field, select the registration type for OKATO/OKTMO.
In the Registration number field, enter the OKTMO code.
Note: For realty objects that are located at the organization's main location, the tax authority that assessed tax is reported to is defined as the tax authority that has the same OKTMO code as the legal entity.
Optional: Set up company divisions, their registration reason codes (KPP), and their OKTMO codes
If the organization has realty objects that are located in territories that differ from the organization's main location, or if the organization has separate subdivisions, you should set up company divisions.
Go to Organization administration > Setup > Separate divisions.
Create a company division.
In the Separate division ID field, enter the identification code for the division.
In the Name field, enter the name of the division.
In the Vendor account field, select the vendor account number that is associated with the division. If there is no vendor account for the company division, create one.
Define the OKTMO code for the company division on the vendor account:
In the vendor account record, on the Addresses FastTab, select More options > Advanced.
On the Registration ID FastTab, add a line.
In the Registration type field, select the registration type for OKATO/OKTMO.
In the Registration number field, enter the OKTMO code.
Repeat step 6 to define the KPP code for the separate division on the vendor account. In the Registration type field, select the registration type that is associated with the KPP registration category.
Set up the organization's locations and assign them to company divisions
If the organization has realty objects that are located in territories that differ from the organization's main location, or if the organization has separate subdivisions, you should set up organization locations and assign them to company divisions.
Go to Fixed assets (Russia) > Setup > Location.
Select an existing location, or create a new location.
On the General FastTab, in the Separate division ID field, select the company division that you created in the previous procedure.
Note: For vehicles that are registered in territories that differ from the organization's main location, the tax authority that transport tax is reported to is defined as the tax authority that has the same OKTMO code as the separate division that is associated with the vehicle location. For information about how to associate a fixed asset with a location, see the Specify the location of the vehicle section later in this article.
If the Separate division ID field is left blank, the location is the same as the location of the organization's head office.
Set up Fixed assets parameters for posting transport tax
Go to Fixed assets (Russia) > Setup > Parameters.
On the Number sequences tab, for the Assessed tax registers journal number reference, select a number sequence for the tax register.
On the Tax reporting tab, in the Transport tax section, in the Sales tax code field, select the default sales tax code for transport tax.
In the Compression field, select the level of compression for transport tax transactions:
Tax – A detailed ledger journal for transport tax transactions will be created for each sales tax code.
Total – A ledger journal for transport tax transactions will be created as one line that has the default sales tax code.
- Close the page.
Set up the journal for posting transport tax
If transport tax transactions will be automatically created based on calculated tax registers, you should set up a journal.
Go to General ledger > Journal setup > Journal names.
Create a line.
Set the Name and Voucher series fields.
In the Journal type field, select Transport tax.
Set up a posting group for transport tax postings
If transport tax transactions will be automatically created based on calculated tax registers, you should set up posting groups.
Go to Fixed assets (Russia) > Setup > Tax reporting > Group of posting of taxes.
Create a line.
In the Ledger posting group field, select a ledger posting group for transport tax.
If no ledger posting group is listed, create one. In the Sales tax payable field, enter the ledger account code for posting transport tax.
In the Account for FA taxes field, select a ledger account for the transport tax expenses.
Make sure that the Sales tax payable field is set to the ledger account code that you entered for the ledger posting group in step 3.
Create a vehicle and set up parameters for transport tax calculation
Here is an overview of the steps for creating a vehicle and setting up parameters for transport tax calculation:
Create a vehicle fixed asset and define parameters for transport tax calculation
Go to Fixed assets (Russia) > Common > Fixed assets.
Select an existing fixed asset, or create a new fixed asset.
On the General FastTab, in the Type field, select Vehicle.
In the Flag of ownership field, select whether the fixed asset is owned, under operational management, leased, or owned by someone who is outside Russia.
On the Technical information FastTab, in the Vehicle section, set the Vehicle type, Model, Registration number, and Emission class fields.
Note: You create vehicle types on the Vehicle types page (Fixed assets (Russia) > Setup > Vehicle > Vehicle types). You create vehicle models on the Vehicle models page (Fixed assets (Russia) > Setup > Vehicle > Vehicle models).
In the Useful life section, in the Output year field, specify the year of manufacture.
In the Government registration section, set the Date of the registration and Removal from the register date fields.
On the Tax reporting FastTab, in the Transport tax section, in the field Tax base field, specify the vehicle power. In the Unit field, specify the unit of measure for the vehicle power.
If you partially own the fixed asset, in the Owned share numerator and Owned share denominator fields, define your ownership share as a simple fraction.
In the Sales tax code field, select the sales tax code for the assessed tax calculation.
Set the Increasing factor group field.
In the Deduction field, specify the tax deduction code. In the Tax deduction amount field, specify the deduction amount.
Specify the location of the vehicle
By default, the assumption is that vehicles are located at the organization's location and reported to the tax authority in the legal entity's territory. (The OKTMO code of the tax authority matches the OKTMO code of the legal entity, and realty objects are reported under the same OKTMO code.)
If the organization has vehicles that are located in different territories and registered in different tax authorities, you must specify the location of the vehicle.
Go to Fixed assets (Russia) > Common > Fixed assets.
Select the line for the vehicle.
On the Action Pane, on the Fixed asset tab, in the History group, select Transfer.
Create a line.
Set the Date and New location fields.
Specify a tax allowance as an exemption from tax
Go to Fixed assets (Russia) > Common > Fixed assets.
Select the line for the vehicle.
On the Action Pane, on the Fixed asset tab, in the History group, select Tax reporting data.
Create a line.
In the Period field, specify the month when a tax allowance as an exemption from tax applies. In the Exemption from tax field, select the code for the tax allowance as an exemption from tax.
Calculate transport tax registers
After you've finished the setup, registered the acquisition of the vehicle, and set up all vehicle parameters for transport tax calculation, you must calculate transport tax registers. The following tax registers are available:
Vehicle - tax calculation – This tax register calculates transport tax for each vehicle. It shows the following information:
The vehicle type, serial number, model, and registration number.
The dates of vehicle registration and removal from the register.
The tax base and the units of measure for the tax base.
The useful lifetime, in years, after the year of manufacture, and the output year.
The owned share as an indication that the vehicle is partially owned.
Factor Kp – The increasing factor for expensive vehicles.
The ownership factor if the vehicle was acquired or sold during the period. This factor is the ratio of the ownership period to the number of calendar months in the period.
Calculated advance payment / Tax – If the tax register is calculated for the first quarter, second quarter, or third quarter, the tax advance amount before tax allowances are applied. If the tax register is calculated for the year, the transport tax amount before tax allowances are applied.
Exemption from tax – The code for the tax allowance as an exemption from tax.
The amount of the tax allowance as an exemption from tax.
Grace period – The number of months when there is no tax exemption allowance.
Allowance factor – The ratio of the grace period to the number of calendar months in the tax period.
Privilege – The code for the tax allowance as a reduction of the rate or a reduction of tax.
Tax allowance amount – The amount of the tax allowance as a reduction of the tax rate or a reduction of the tax amount.
Deduction – The code for the tax deduction.
Tax allowance amount – The amount of the tax deduction.
The transport tax rate, budget revenue code, separate division ID, and location of the vehicle, and the tax authority that the tax for the vehicle will be reported to.
Transport tax – This tax register calculates total transport tax amounts for each sales tax code and OKTMO code.
To calculate and approve transport tax registers, follow these steps.
Go to Fixed assets (Russia) > Journals > Tax register journal.
Select New.
In the Type of tax field, either select Transport tax to create a journal only for transport tax registers, or leave the field blank to create a journal for all the asset's taxes (assessed tax, land tax, and transport tax).
In the Period types field, select one of the following values:
Quarter – Generate a journal for the calculation of transport tax advance payments.
Years – Generate a journal for the annual transport tax calculation.
In the Period number field, if you selected Quarter in the Period types field, enter the number of the quarter. If you selected Years, enter 1.
In the Years fields, enter the reporting year in YYYY format.
Select OK to create the journal.
Select Lines to create lines in the periodic register journal.
You receive a message that states, "Register journal has not been created yet. Do you want create it?" Select Yes.
Review the tax registers that are created. For transport tax, the following registers are created: Vehicle – tax calculation and Transport tax.
To calculate a specific tax register in the journal, select the register, and then select Calculate current. To calculate all tax registers in the journal, select Calculate all.
Select OK.
Select a tax register, and then select Register lines to review the calculated lines.
Select Print to print the tax register lines in Microsoft Excel.
Select Reset status to reset the status of the calculated register to Not calculated.
After you've finished reviewing the data in the tax registers, select the Approved check box to approve each register.
In the Worker field, view or change the code for the employee who approved the register.
Create and calculate corrective tax registers
If you've corrected any vehicle data for the previous periods, you should create corrective tax registers to reflect the corrected transport tax amounts.
To create corrective registers, follow these steps.
Go to Fixed assets (Russia) > Journals > Tax register journal.
Select the approved journal for the period that must be corrected.
Select Correction > Corrections to current journal.
Select New.
In the Type of tax field, either select Transport tax if you must correct only transport tax registers, or leave the field blank if you must correct all the asset's tax registers.
Make sure that the Period types, Period number, and Years fields are set to values that are appropriate for the period of the register that you're correcting.
Select OK.
Create tax register lines, and calculate and approve the tax registers as described in the previous procedure.
Generate a transport tax declaration
Set up the system to generate a transport tax declaration
- In Microsoft Dynamics Lifecycle Services (LCS), in the Shared asset library, download the latest versions of the Electronic reporting (ER) configurations for the assessed tax declaration.
For example, to generate the transport tax declaration for the year 2019 reporting period, download the latest version of the following configurations:
Assets declarations model
Transport tax declaration model mapping
Transport tax declaration format 5.05
For more information, see Download Electronic reporting configurations from Lifecycle Services.
You can upload Data management package settings to work with the transport tax declaration. Follow these steps:
In the LCS Shared asset library, select Data package as the asset type.
Download the package that is named RU Transport tax declaration v5.05 (2019). The file that is downloaded is named RU Transport tax declaration v5.05 (2019).zip.
In the Data management workspace, select Import.
In the Job details section, set the following values:
Enter a name for the job.
In the Source data format field, select Package.
Select Upload next to the Upload data file field, and then select the RU Transport tax declaration v5.05 (2019).zip file that you downloaded earlier.
After the data entities are uploaded, select Import.
Go to Tax > Setup > Electronic messages > Electronic message processing, and validate the electronic message processing that is imported. (Most of the data that is imported is presented in the Russian language.)
| Processing | Processing code | Name |
|---|---|---|
| Transport tax declaration | ТрансНал 5.05 (2019) | Декларация по транспортному налогу (2019) |
Set up the ER format that is run when accounting reporting is generated in electronic format:
Go to Tax > Setup > Electronic messages > Message processing actions.
Select the Generate TRAND 5.05 action, and then select Edit.
Set the Show dialog option to Yes.
In the Format mapping field, select the Transport tax declaration format 5.05 ER configuration that you downloaded earlier.
Set up the economic activity type code (OKVED):
Go to Tax > Setup > Electronic messages > Additional fields.
Select the EconomicActivityTypeCode record.
On the Value FastTab, select Add, and then enter the value of the code.
Generate a transport tax declaration
Before you can generate the transport tax declaration for a tax year, you must calculate the transport tax registers for the same year, and for the first quarter, second quarter, and third quarter of the same year. The advance payment amount for transport tax that is exported in the transport tax declaration is taken from the tax registers that were calculated for the first quarter, second quarter, and third quarter.
Go to Tax > Inquiries and reports > Electronic messages > Electronic messages.
Select the report format to generate.
For example, to generate a transport tax declaration in XML format for the year 2019, select ТрансНал 5.05 (2019).
On the Messages FastTab, select New.
In the Run processing dialog box, select OK.
Select the message line that is created, and enter a description.
Enter a start date and end date for the report.
To generate a transport tax declaration, enter the year period. For example, for the year 2019, enter 01.01.2019 in the From date field and 31.12.2019 in the To date field.
Optional: For a corrective declaration, on the Message additional fields FastTab, on the line for the CorrectionNumber field, in the Field value field, enter the number of the correction.
On the Messages FastTab, select Update status.
In the Run processing dialog box, select OK.
Validate that the message status has been changed to Ready to generate.
On the Messages FastTab, select Generate report.
In the Electronic reporting parameters dialog box, on the Parameter FastTab, set the following values.
| Field | Description |
|---|---|
| At place of | Select the place where the declaration is submitted: Vehicle location or Registration of the largest taxpayer. |
| Correction number | Enter the number of the correction if you didn't specify it in step 7. |
| Signatory type | Select the person who signs the accounting reporting: Taxpayer or Representative. |
| Signatory first name, Signatory middle name, Signatory last name | Enter the full name of the signatory. |
| Representative company | If you selected Representative as the signatory type, and if the representative is an organization, enter the name of the organization. |
| Representative document | If you selected Representative as the signatory type, enter the document that confirms the representative's authority. |
On the first Records to include FastTab, apply a filter for separate divisions, if this type of filter is applicable. In this case, declarations will be generated only for the selected separate divisions.
On the second Records to include FastTab, apply a filter for tax authorities, if this type of filter is applicable. In this case, declarations will be generated only for the selected tax authorities.
Select OK.
When the report is generated, the status of the message is changed to Generated. If an error occurs during generation, the status is changed to Technical error.
On the Action log FastTab, review all user actions for the current message.
To review the report that is generated, select the Attachments button (the paper clip symbol) in the upper-right corner of the page, and then select Open to view the file.
You must also manually upload the generated file to the special third-party software for data preview, data updates, and transfer of the transport tax declaration files to the tax authorities through the communication channels.
Create and post transport tax ledger transactions
After you've calculated and approved tax registers, and generated a transport tax declaration, you can create transactions for transport tax accruals. Following these steps.
Go to Fixed assets (Russia) > Journals > Tax register journal.
Select the journal, and then select Ledger journal > Transport tax.
Select New.
In the Name field, select the name of the transport tax journal.
Select Lines to view the journal lines that have transport tax accrual transactions that were created based on the tax register data and the settings of Fixed assets parameters.
Validate and post the journal.