Inter-price VAT is the amount of tax that arises when goods are sold at prices other than purchase prices, when it is necessary to allocate a tax base calculated as the difference between the cost of sale and purchase. In accounting, this term is often applied to retail organizations operating using the balanced VAT method, or to cases where the sales price is formed taking into account the trade margin, which already contains the tax. Understanding the mechanism by which price differences arise is critical for correctly filling out declarations and preventing cash gaps when paying obligations to the budget.
The essence of the phenomenon lies in the fact that the purchase occurs at one price with input tax, and the sale is carried out at another, higher price, including output tax. The difference between these two quantities forms the very interprice VAT, which is subject to payment to the budget. Errors in calculating this delta can lead to an underestimation of the tax base and subsequent penalties from fiscal authorities, therefore control over pricing and tax accounting should be automated.
In modern accounting systems such as 1C:Enterprise, this process is often hidden from the user’s eyes by automatic loggers, but manual verification and understanding of the logic of the algorithms are necessary for auditing. If you see strange amounts in the balance sheet for account 68 or 90.03, this may be a direct consequence of incorrect distribution of the inter-price difference. Next, we will analyze in detail the mechanics of the process, typical errors and ways to eliminate them.
The economic essence of the inter-price difference
Trading enterprises are often faced with the need to formulate the final price of a product, which consists of the purchase cost, overhead costs and the desired profit. Interprice difference in this context, it acts not just as a margin, but as a complex financial instrument that includes a tax burden. When an organization buys a product for 100 rubles plus 20 rubles VAT, and sells it for 150 rubles plus 30 rubles VAT, it is the delta of 10 rubles of tax (30 minus 20) that is the inter-price VAT, which forms the basis for settlements with the budget.
It is important to distinguish between the concepts of trade margin and interprice VAT, although they are closely related. The trade margin covers all the company's expenses and generates profit, while interprice VAT is exclusively the tax component of this margin. Incorrectly separating tax from the retail price can distort the real picture of the profitability of a business. In accounting, this is reflected through special accounts that allow you to see the “body” of the product and the tax separately.
⚠️ Attention: Using an incorrect VAT rate when calculating inter-price differences (for example, using 20% instead of the calculated rate of 20/120 for goods taxed at a rate of 20%) will lead to an underestimation of the tax base and additional charges during audits.
To properly understand the economic model, it is necessary to take into account that in retail trade prices are often formed using the “grandmaster” method - from the desired price on the shelf to the purchase price. In such a situation calculation method allocation of tax becomes the only correct way to determine the amount of inter-price VAT. This requires the accountant to be highly qualified and attentive to detail when conducting documents.
Mechanism for forming the tax base
The process of forming the base for calculating inter-price VAT begins at the moment the goods are received into the warehouse. The system must record the input cost and the amount of input tax. During subsequent sales, the program or accountant must correctly calculate the output tax based on the final sale price. The difference between the outgoing and incoming taxes constitutes the obligation to the budget for this operation.
The accounting policy of the organization must clearly state the method for determining the tax base. This may be a shipping method or a payment method. For retail trade, where sales occur daily and in large volumes, a simplified procedure is often used, in which inter-price VAT is calculated by calculation based on the results of the reporting period. This allows you to aggregate data and minimize the number of transactions.
- 📊 Analytical accounting must be maintained in terms of VAT rates (0%, 10%, 20%) for the correct calculation of the total amount.
- 📦 Product reports are the primary documents on the basis of which the inter-price difference in retail is formed.
- 🧮 Settlement rates (20/120, 10/110) are used when VAT is already included in the price and needs to be highlighted.
Particular attention should be paid to goods that change their value during storage or sale (for example, markdown). In such cases, inter-price VAT is recalculated, which may result in negative values or the need to restore the tax. Calculation algorithms must be flexible and take into account all possible scenarios for the movement of goods.
Accounting entries and accounts
In the chart of accounts, account 42 “Trade margin” is traditionally used to reflect transactions with inter-price differences. It is on this account that the difference between the sale and purchase prices of goods is accumulated. However, when talking about VAT, we must consider a combination of accounts 90 “Sales” and 68 “Calculations for taxes and duties”.
When selling goods at the selling price, an entry is made to the credit of account 90.01 for the full amount of revenue. At the same time, accrued VAT is reflected in the debit of account 90.01 and the credit of account 68.02. The amount of interprice VAT here acts as part of the accrued tax, which is not covered by the input tax. The correctness of these entries directly affects the final tax payable.
| Operation | Debit | Credit | Amount |
|---|---|---|---|
| Receipt of goods | 41.01 | 60.01 | Purchase price |
| Allocation of input VAT | 19.03 | 60.01 | Input tax |
| Sales of goods | 62.01 | 90.01 | Selling price |
| VAT accrual (including inter-price VAT) | 90.03 | 68.02 | Output tax |
Analytics for account 68 should allow you to see not only the total amount of tax, but also its structure. Interprice VAT is not allocated to a separate subaccount; it is “dissolved” in the total amount of accrued tax, but its calculated value is important for internal control. The accountant must be able to download this information from the system for reconciliations.
Accounting for interprice VAT in the 1C program
In configurations 1C: Retail and 1C: Trade Management The question “what is interprice VAT” is resolved at the level of settings for price types and accounting policies. The program automatically calculates the tax amount when posting sales documents, using data from the item card. It is important for the user to correctly set the price type and VAT rate when creating a product.
For the mechanism to work correctly, it is necessary that the fields “VAT rate” and “Include VAT in price” be filled in in the item reference book. If these parameters are set incorrectly, the program will either underestimate the tax or calculate it “from above,” which will lead to discrepancies with the primary documents. Checking these settings is the first step when errors in calculations are detected.
- ✅ Price types: Make sure the "Includes VAT" flag is checked for retail prices.
- ✅ Documents: When changing prices, use the "Change in Prices" document to have the system recalculate taxes.
- ✅ Closing the month: The "Month Closing" operation will automatically distribute the inter-price difference among the goods sold.
In the report "Analysis of the status of settlements with the budget" you can see the details of accrued VAT. If you use the sales price accounting method, the system itself will generate entries for account 42 and 90.03. Manual intervention in these processes is rarely required, but understanding the logic is necessary for debugging.
Typical errors and methods for eliminating them
One of the most common mistakes is confusion between the 20% rate and the 20/120 settlement rate. When cross-price VAT is calculated manually or in Excel spreadsheets, accountants often apply a percentage to a base that already contains the tax, resulting in a distorted amount. As a result, the budget spends less (or more) funds than required by law.
Another problem arises when returning goods from customers. If a product was sold with one VAT rate and returned in a period when the rates changed, or if the return was issued with an incorrect document, interprice VAT may “hang” on the accounting accounts. This creates dangling amounts that are difficult to account for in an audit.
⚠️ Attention: When returning goods, be sure to use the “Return from Buyer” document associated with the original sale so that the system will automatically adjust the inter-price VAT and restore the balances.
To eliminate errors, it is recommended to regularly reconcile data between warehouse accounting and the accounting module. Discrepancies in inventory balances often lead to differences in the calculated cross-price VAT. Using the "Repost Documents" and "Recalculate Totals" tools helps to synchronize data.
Impact of legislative changes on calculations
Tax legislation is constantly changing, and this directly affects the calculation of inter-price VAT. A change in the interest rate, the emergence of new preferential categories of goods, or a change in the rules for processing primary documents require a prompt response from IT specialists and accounting departments.
For example, when the VAT rate was increased from 18% to 20%, many organizations faced the problem of “carryover” VAT, when a product was purchased at the old rate and sold at the new one. During this period, the calculation of the inter-price difference was carried out according to special rules requiring the allocation of an additional amount of tax. Understanding these nuances was critical to maintaining margins.
Regional characteristics and specifics of individual industries should also be taken into account. For some types of activities (for example, the sale of excisable goods) there are rules for determining the tax base, which may differ from the generally accepted ones. Interprice VAT in such cases is calculated taking into account excise taxes and other indirect taxes.
How to quickly check the correctness of the calculation of interprice VAT in 1C?
Generate a report "Analysis of the status of settlements with the budget" for the required period. Select the "VAT for accrual" transaction group. Compare the amount of accrued VAT with the amount obtained by calculation (Revenue * 20/120). The discrepancy should not exceed a penny (rounding).
Do I need to maintain a separate analytical account for interprice VAT?
No, in the Russian Chart of Accounts there is no separate account for inter-price VAT. It is taken into account as part of the general VAT in account 68.02. However, in 1C analytical sections, you can set up a subaccount or income/expense item for detailed monitoring of this amount.
What to do if interprice VAT turns out to be negative?
Negative inter-price VAT is possible when selling goods below the purchase price (loss-making sale). In this case, the amount of tax payable is reduced. However, the tax office may request justification for the economic feasibility of such a transaction.
Does the discount affect the amount of inter-price VAT?
Yes, if a discount is provided at the time of sale and is reflected in the receipt or invoice, the tax base is reduced and, accordingly, the amount of accrued inter-price VAT is reduced. If the discount is issued later (by bonuses), the moment of recognition of expenses and deductions may shift.
Is it possible to round off inter-price VAT in each check item?
It is better to perform rounding in the final document (change of Z-report or invoice), and not in each line, in order to avoid the accumulation of rounding errors. In 1C, rounding settings are specified in the system parameters; mathematical rounding to 2 decimal places in totals is usually used.