Unofficial translation

Tax Code of the Republic of Belarus
(Special Part)*

December 29, 2009 No 71-Z
[Amended as of December 29, 2020]

Adopted by the House of Representatives on December 11, 2009

Approved by the Council of Republic on December 18, 2009

 

 

*When applying references to the Tax Code of the Republic of Belarus (its structural unit) in the case of making changes and/or additions in it, of its interpreting, suspending, repealing or recognizing invalid, the date of adoption of the General Part of the Tax Code of the Republic of Belarus (December 19, 2002) and the sources of the official publication of the General and the Special Parts of the Tax Code of the Republic of Belarus are to be indicated.

TABLE OF CONTENTS

SECTION V. REPUBLICAN TAXES AND DUES (DUTIES)

CHAPTER 14. VALUE ADDED TAX (Articles 112 – 144)

CHAPTER 15. EXCISES (Articles 145 – 165)

CHAPTER 16. TAX ON PROFIT (Articles 166 – 187)

CHAPTER 17. TAX ON INCOMES OF FOREIGN ORGANIZATIONS NOT CARRYING OUT ACTIVITIES IN THE REPUBLIC OF BELARUS THROUGH A PERMANENT REPRESENTATION (Articles 188 – 194)

CHAPTER 18. PERSONAL INCOME TAX (Articles 195 – 224)

CHAPTER 19. TAX ON IMMOVABLE PROPERTY (Articles 225 – 253)

CHAPTER 20. LAND TAX (Articles 236 – 245)

CHAPTER 21. ECOLOGICAL TAX (Articles 246 – 215)

CHAPTER 22. TAX FOR EXTRACTION (REMOVAL) OF NATURAL RESOURCES (Articles 254 – 261)

CHAPTER 23. OFFSHORE DUE (Articles 262 – 268)

CHAPTER 24. STAMP DUTY (Articles 269 – 274)

CHAPTER 25. CONSULAR FEE (Articles 275 – 282)

CHAPTER 26. STATE DUTY (Articles 283 – 293)

CHAPTER 27. PATENT DUTIES (Articles 294 – 299)

CHAPTER 28. UTILIZATION DUE (Articles 300 – 307)

SECTION VI. LOCAL TAXES AND DUES

CHAPTER 29. TAX ON DOGS (Articles 308 – 312)

CHAPTER 30. RESORT DUE (Articles 313 – 319)

CHAPTER 31. DUE FROM PURVEYORS (Articles 320 – 323)

SECTION VII. SPECIAL TAXATION REGIMES

CHAPTER 32. TAX UNDER THE SIMPLIFIED TAXATION SYSTEM (Articles 324 – 344)

CHAPTER 33. SINGLE TAX FROM INDIVIDUAL ENTREPRENEURS AND OTHER NATURAL PERSONS (Articles 334 – 284)

CHAPTER 34. SINGLE TAX FOR PRODUCERS OF AGRICULTURAL PRODUCE (Articles 345 – 360)

CHAPTER 35. TAX ON GAMBLING BUSINESS (Articles 354 – 300)

CHAPTER 36. TAX ON INCOMES FROM CARRYING OUT LOTTERY ACTIVITIES (Articles 361 – 364)

CHAPTER 37. TAX ON INCOMES FROM CONDUCTING ELECTRONIC INTERACTIVE GAMES (Articles 365 – 368)

CHAPTER 38. DUE FOR CARRYING OUT ARTISANAL ACTIVITY (Articles 369 – 372)

CHAPTER 39. DUE FOR CARRYING OUT ACTIVITY ON RENDERING SERVICES IN THE SPHERE OF AGROECOTOURISM (Articles 373 –317)

CHAPTER 40. [EXCLUDED]

SECTION VIII. TAXATION OF CERTAIN CATEGORIES OF PAYERS

CHAPTER 41. SPECIFIC FEATURES OF TAXATION IN FREE ECONOMIC ZONES (Articles 382 – 383)

CHAPTER 42. TAXATION OF PEASANT’S (FARMER’S) HOUSEHOLDS, COLLEGES OF ADVOCATES, ADVOCATES OFFICES, THE BELARUSIAN NOTARIAL CHAMBER AND ITS ORGANIZATIONAL STRUCTURES, STATE BODIES, OTHER STATE ORGANIZATIONS (Articles 384 – 386)

Annex 1       Excises rates for excisable goods

Annex 2       Rates of the personal income tax in fixed sums

Annex 3       Rates of the land tax for agricultural lands for agricultural purposes

Annex 4       Average land tax rates for districts

Annex 5       Functional use of land plots (types of valuation zones)

Annex 6       Land tax rates for land plots located in settlements, and also outside settlements, land plots of gardening partnerships and country-cottage cooperatives

Annex 7       Ecological tax rates for emissions of pollutants into the air

Annex 8       Ecological tax rates for discharge of wastewater in the environment

Annex 9       Ecological tax rates for storage or burial of production waste

Annex 10     Tax rates for extraction (removal) of natural resources

Annex 11     Tax rates for extraction (removal) of natural resources in relation to petroleum oil

Annex 12     Rates of consular fees

Annex 13     Rates of the state duty when applying to the courts, with the exception of the Court Panel on cases of intellectual property of the Supreme Court of the Republic of Belarus, Court Panel on economic cases of the Supreme Court of the Republic of Belarus, economic courts of regions (the city of Minsk)

Annex 14     Rates of state duty when applying to the court panel on cases of intellectual property of the Supreme Court of the Republic of Belarus

Annex 15     Rates of the state duty when applying to the Court Panel on economic cases of the Supreme Court of the Republic of Belarus, economic courts of regions (the city of Minsk)

Annex 16     Rates of the state duty when applying to enforcement bodies

Annex 17     Rates of the state duty when applying to bodies of the public prosecutor's office

Annex 18     Rates of the state duty when applying to authorized officials of local executive and administrative bodies

Annex 19     Rates of the state duty when applying to registrars of the republican and territorial organizations on state registration of immovable property, rights thereto and transactions therewith

Annex 20     Rates of the state duty for performance of actions connected with the registration of acts of civil status

Annex 21     Rates of the state duty for issuance (change), certification of documents necessary for the exit from and/or the entry into the Republic of Belarus; issuance (change) or extension of the validity term of the documents connected with the stay of foreign citizens and stateless persons in the Republic of Belarus; for consideration of issues connected with the citizenship of the Republic of Belarus

Annex 22     Rates of the state duty on other objects of levying with the state duty

Annex 23     Rates of patent duties

Annex 24     Rates of the single tax from individual entrepreneurs and other natural persons

Annex 25     List of vehicles

Annex 26     List of food products and goods for children on which the value added tax rate in the amount of 10 percent is applied upon importation thereof into the territory of the Republic of Belarus and/or upon realization in territory of the Republic of Belarus

Annex 27     Rates of transport tax

 

SPECIAL PART

SECTION V
REPUBLICAN TAX
ES, DUES (DUTIES)

CHAPTER 14
VALUE ADDED TAX

Article 112. Payers of value added tax

Payers of value added tax (later on, unless otherwise established, in this Chapter – payers) are recognized to be:

organizations;

individual entrepreneurs with regard to specific features established by Article 113 of this Code;

trustees for turnovers on realization of goods (works, services) property rights arising in relation to the trust management of the property received into the trust management, in the interests of trustors and/or beneficiaries;

natural persons on which on which the duty to pay the value added tax collected when goods are being imported to the territory of the Republic of Belarus is imposed in accordance with this Code, the customs legislation and/or acts of the President of the Republic of Belarus.

Article 113. Specific features for recognizing as payers of individual entrepreneurs when realizing goods (works, services), property rights

1. Payers of the value added tax upon realization of goods (works, services), property rights are recognized:

1.1. individual entrepreneur applying the common taxation procedure, if the sum determined in accordance with the procedure established by Article 205 of this Code of the revenue from realization of goods (works, services), property rights and incomes in the form of operations on putting into lease (transfer into a financial lease (leasing)) of property on an accrual basis from the beginning of the year will exceed 465 255 Belarusian rubles without account of taxes and dues computed from the revenue.

The sum of revenue from the realization of goods (works, services), property rights does not include the revenue from realization of goods (works, services) when carrying out activity on which in accordance with this Code the single tax from individual entrepreneurs and other natural persons and/or the tax under the simplified taxation system shall be paid;

1.2. [excluded]

1.3. individual entrepreneur, regardless of the circumstances specified in sub-clauses 1.1 of this clause, if he made a decision to pay the value-added tax and within the time limit not later than on the 20th day of the month in which the value added tax will be paid, has filed a notification, according to the established form, about the decision made with the tax body at the place of putting on record.

Such notification shall be submitted in a written or electronic form.

When sending a notification about the decision made on the payment of the value added tax in a written form by post, the day of its submission is deemed to be the date of acceptance of the postal item, and in electronic form – the date of its acceptance fixed with the assistance of software of the tax bodies.

2. Until the end of the tax period, individual entrepreneur  shall be recognized as a payer in respect of all taxation objects:

in the event of occurrence of the circumstances specified in sub-clause 1.1 of clause 1 of this Article, beginning from the first day of the month following the month when such a circumstance occurred;

when making a decision to pay the value added tax – beginning from the 1st day of the month specified in the notification about the decision made to pay value added tax, unless otherwise provided by part two of this clause.

Individual entrepreneur the state registration of whom was carried out in the current tax period, who submitted a notification about the decision made about the payment of the value added tax in the month of its state registration, shall be recognized as a payer for all taxation objects beginning from the day of its state registration and until the end of the tax period.

Article 114. Execution of the payer's duty by organizations and individual entrepreneurs upon realization of goods (works, services), property rights in the territory of the Republic of Belarus by foreign organizations

1. When goods (works, services), property rights in the territory of the Republic of Belarus are realized by foreign organizations not carrying out the activity in the territory of the Republic of Belarus through permanent representation and because of that not being put on record in the tax bodies of the Republic of Belarus (later on in this Chapter –  foreign organizations not being put on record in the tax bodies of the Republic of Belarus), the duty on computing and paying the value added tax to the budget is imposed on organizations and, unless otherwise provided by Article 141 of this Code, individual entrepreneurs put on record in the tax bodies of the Republic of Belarus that purchase these goods (works, services), property rights.

Such organizations and individual entrepreneurs have rights and bear duties established by Articles 21 and 22 of this Code.

2. Foreign organizations, including general contractors, subcontractors, carrying out the construction, installation or assembly of objects and/or other works and services related to construction activities:

2.1. being put on record because of that in the tax bodies of the Republic of Belarus shall compute and pay the value added tax from the beginning of such activity in the territory of the Republic of Belarus;

2.2. not being put on record because of that in the tax bodies of the Republic of Belarus shall compute and pay the value added tax from the month on which falls the earliest from the dates:

the day following the day of putting on record in the tax body of the Republic of Belarus in accordance with part three of sub-clause 1.5 of clause 1 of Article 70 of this Code;

the day following the day of expiration of the period established by clauses 3 and 4 of Article 180 of this Code.

3. When goods (works, services), property rights in the territory of the Republic of Belarus are realized by foreign organizations not put on record in the tax bodies of the Republic of Belarus, on the basis of contracts of commission, agency and other similar civil-law contracts, the duty on computing and paying the value added tax to the budget is imposed on organizations and individual entrepreneurs put on record in the tax bodies of the Republic of Belarus that carry out entrepreneurial activity on the basis of such contracts with the foreign organizations not put on record in the tax bodies of the Republic of Belarus.

Such organizations and individual entrepreneurs have rights and bear duties established by Articles 21 and 22 of this Code.

4. The duty on computing and paying the value-added tax to the budget shall be also imposed on organizations and individual entrepreneurs being put on record in the tax bodies of the Republic of Belarus participating in settlements directly with foreign organizations not being put on record in the tax bodies of the Republic of Belarus and concluding with such foreign organizations a contract (including a contract establishing the rendering of services for concluding a contract for the acquisition (realization) of works (services), property rights), as a result of which the goods (works, services), property rights are realized in the territory of the Republic of Belarus.

Such organizations and individual entrepreneurs have rights and bear duties established by Articles 21 and 22 of this Code.

5. Turnovers on realization in the territory of the Republic of Belarus of goods (works, services), property rights by foreign organizations not being put on record in the tax bodies of the Republic of Belarus are covered by provisions of clause 2 of Article 115 and clause 1 of Article 118 of this Code.

Article 115. Taxation objects for value added tax

1. Taxation objects for value added tax are recognized:

1.1. turnovers on realization of goods (works, services) property rights in the territory of the Republic of Belarus, including turnovers:

1.1.1. turnovers on realization of goods (works, services) property rights by the payer to his workers;

1.1.2. on exchange of goods (works, services) property rights;

1.1.3. on gratuitous transfer of goods (works, services), property rights;

1.1.4. on transfer of goods (works, services), property rights under an agreement on providing compensation instead of fulfilling the obligation, and also of the object of pledge by the pledgor to the pledgeholder (creditor) in the event of non-fulfillment or improper fulfillment of  the obligation secured by the pledge;

1.1.5. on transfer by the lessor of the financial lease (leasing) contract object (later on – leasing object) to the lessee;

1.1.6. on handover by the lessor of the lease object to the lessee;

1.1.7. on shipment (return) of returnable tare by the seller to the buyer (buyer to the seller).

Returnable tare is a container the value of which is not included in the realization price of the goods shipped therein and which is subject to return to the seller of goods on the terms and conditions and within the time limits established by the contract or legislation;

1.1.8. on realization of goods (works, services) property rights arising for the trustee in relation to the trust management of the property under the contract of trust management in the interests of trustor and/or beneficiary;

1.1.9. on transfer of goods within the framework of the contract of loan in kind;

1.1.10. on other retirement of goods of own production, place under the customs procedure of duty-free trade, in duty-free shops if at their purchase the value added tax rate in the amount of zero (0) percent has been allocated in consignment notes in accordance with sub-clause 1.10 of clause 1 of Article 122 of this Code;

1.1.11. on transfer of property rights to intellectual property objects;

1.1.12. [excluded]

1.1.13. on transfer of property into gratuitous use to the lessee;

1.1.14. on transfer of all kinds of received energy, gas, water by the subscriber to sub-subscribers;

1.2. importation of goods to the territory of the Republic of Belarus and/or other circumstances with the presence of which this Code and/or acts of the President of the Republic of Belarus, the customs legislation, treaties of the Republic of Belarus constituting the law of the Eurasian Economic Union connect the arising of a duty on payment of the value added tax.

2. Taxation objects for value added tax are not recognized:

2.1. sums received by authorized bodies for legally significant actions being made when organizations and natural persons are given certain rights (state duties, patent duties, consular duty), payments to the budget or to budgets of state non-budgetary funds;

2.2. putting (transfer) into lease (financial lease (leasing)) of an enterprise as a whole as property complex being in the state ownership under which received lease payments are subject to remittance into the budget;

2.3. alienation of property being in the state ownership under which received monetary means are to be directed to the budget in arising from acts of legislation regulating the order of disposal of the state property and/or for the purposes determined by those acts of legislation or are to be distributed according to the mentioned acts of legislation, including:

in the process of privatization of property being in the ownership of the Republic of Belarus and its administrative and territorial units;

material resources of the Armed Forces of the Republic of Belarus, other troops, military formations and paramilitary organizations of the Republic of Belarus, being released;

2.4. transfer within the framework of a contract of simple partnership (contract on joint activity):

of goods (works, services), property rights as the contribution of a participant of the simple partnership (contract on joint activity) to the common cause (with the exception of goods alienated under the conditions of the mentioned contract to another participant);

of goods upon dividing goods having been in common ownership of the participants of the simple partnership (contract on joint activity);

expenses compensated to the participant in accordance with the contract of simple partnership (contract on joint activity) by the person carrying out the management of common affairs;

2.5. gratuitous transfer of:

2.5.1. goods (works, services), property rights to Belarusian organizations carrying out economic activity on producing the produce of crop husbandry, animal husbandry, fish husbandry, and apiculture, provided that the received goods (works, services), property rights is used for carrying out carrying out economic activity on producing the produce of crop husbandry, animal husbandry, fish husbandry, and apiculture;

2.5.2. property for which, when being purchased (imported), the sums of value added tax are paid at the expense of gratuitously received means from the budget or budgets of state non-budgetary funds and charged to the increase of its value or at the expense of the mentioned sources;

2.5.3. to the culture organizations of:

cultural valuables;

goods (works, services), property rights to the objects of copyright law and related rights for carrying out cultural activity.

For the purposes of this Chapter and Chapter 16 of this Code the cultural activity includes activities determined by the President of the Republic of Belarus;

2.6. turnovers on realization in the territory of the Republic of Belarus (including turnovers on gratuitous transfer) by budgetary organizations acquired (gratuitously received) goods, with the exception of fixed assets and intangible assets, on prices of their acquisition (for gratuitously received goods – on prices of their receipt).

Prices of acquisition (receipt) of goods specified in part one of this sub-clause are understood to be a price with the value added tax (price without the value added tax – for goods turnovers on realization of which are not recognized as taxation object for the value added tax in accordance with the legislation or are exempted from the value added tax in accordance with the legislation) indicated by the seller of goods in primary accounting documents used upon shipment of goods;

2.7. internal turnovers of forestry organizations;

2.8. transfer to members:

2.8.1. of non-commercial organizations of goods (works, services) purchased (imported) at the expense of share (membership) contributions;

2.8.2. of a trade union organization that are employees being in employment relationship with the employer, of goods (works, services) acquired at the expense of deductions received by the trade union organization from the employer in accordance with the collective contract;

2.9. turnovers on for-compensation and gratuitous transfer of goods (works, services), including fixed assets and intangible assets, property rights within one legal person of the Republic of Belarus, with the exception of the instances established by part two of this clause.

If one legal person of the Republic of Belarus has at least one separate division fulfilling the tax obligations of that legal person in the territory of the Republic of Belarus, then computation and payment of the value added tax may be performed (exemption from taxation is applied):

by the separate division of the legal person of the Republic of Belarus fulfilling the tax obligations of that legal person in the territory of the Republic of Belarus upon transfer of goods (works, services), property rights within one legal person;

by the legal person of the Republic of Belarus upon upon transfer of goods (works, services), property rights within one legal person to a separate division fulfilling the tax obligations of that legal person in the territory of the Republic of Belarus.

The list of goods (works, services), property rights upon the transfer of which within one legal person of the Republic of Belarus the computation and payment of the value added tax is performed (exemption from taxation is applied) shall be reflected in the accounting policy of the payer;

2.10. turnovers on realization of goods (works, services), property rights by Belarusian organizations (affiliates of legal persons of the Republic of Belarus) registered as payers outside the Republic of Belarus, in the part of activity outside the Republic of Belarus;

2.11. exportation of goods from the territory of the Republic of Belarus to the territory of another member state of the Eurasian Economic Union in connection with the transfer thereof within one legal person;

2.12. turnovers on compensation:

2.12.1. to the partnership of owners (builders organization, garage cooperative, gardening partnership,  country cottage cooperative, cooperative operating parking lots) by its participants (members) of the value of:

goods (works, services), property rights acquired for those participants (members) and connected with maintenance and operation of immovable property;

works performed (services rendered) for those participants (members) and connected with maintenance and operation of immovable property;

goods included in the value of works (services) specified in indent three of this sub-clause;

2.12.2. to the lessor by the lessee of the value of purchased works (services) related to the lease (financial lease (leasing)), not included in the sum of rent (leasing payment), with the exception of the instances established by sub-clause 9.3 of clause 9 of Article 122 of this Code.

This provision covers the turnovers on reimbursement to the lessee by the lessor of the value of purchased works (services) related to the lease (financial lease (leasing));

2.12.3. by the buyer of goods to their seller of the value of purchased services on delivery (carriage) of goods not included in the value of these goods;

2.12.4. commissioner (agent) by the commitment (principal) of the sums of expenses on purchasing of goods (works, services), property rights, not covered by the commissioner (agent) remuneration;

2.12.5. to the forwarding agent by the customer under a forwarding contract of the sums of expenses on purchasing goods (works, services), property rights, specified in the forwarding contract used when rendering servicing under the said contract, not covered by the remuneration of the forwarding agent;

2.12.6. to libraries of the costs related to the production of library passes;

2.12.7. to the payer producing excisable goods from give-and-take raw materials, indicated in clause 5 of Article 160 of this Code of the excises sums by the owner of excisable goods produced from give-and-take raw materials;

2.13. assignment:

2.13.1. of the right of claim by the primary creditor, arising out of contracts aimed at realizations of goods (works, services), property rights, in the amount not exceeding the primary obligation under such contracts;

2.13.2. rights (claims) of the special financial institution in securitization;

2.14. alienation of property under a court resolution in the course of recovery of taxes, dues (duties), penalty interest, fines for committing of administrative offences and/or crimes;

2.15. value of meals, subscription to print mass media, works (services) purchased (paid) by the payer for his employees and/or members of their families, and also for pensioners who worked earlier for them;

2.16. turnovers on realization of goods (works, services), property rights to diplomatic missions and consular institutions of the Republic of Belarus;

2.17. turnovers on realization of stakes in statutory funds of organizations or parts thereof;

2.18. turnovers on realization in the territory of the Republic of Belarus of goods (works, services) supplied, transferred (executed, rendered) by the supplier of goods (works, services) of the project (program) of international technical assistance and/or by the recipient of international technical assistance for its implementation, and also turnovers on their further gratuitous transfer in accordance with the purposes and tasks of international technical assistance projects (programs) under the procedure and on conditions, established by the President of the Republic of Belarus;

2.19. transfer of property:

to the trustee by the trustor under the contract on trust management of property;

being returned to the trustor by the trustee upon the termination of the trust management of property;

2.20. turnovers on transfer of property into gratuitous use under which;

2.20.1.  reimbursement of expenses to the lender on maintenance of the property and/or other expenses connected with the property is not effectuated, including:

sums of posted depreciation, land tax or lease payment for the land plot, tax on immovable property;

expenses on operation, repairs of the property;

costs for communal services;

2.20.2. a duty on reimbursement to the lender of expenses specified in sub-clause 2.20.1 of this clause is provided by acts of the President of the Republic of Belarus, with the exception of the instances established by sub-clause 9.4 of clause 9 of Article 122 of this Code.

For the purposes of this sub-clause, turnovers on transfer of property into gratuitous use include the following reimbursable expenses of the lender:

sums of posted depreciation, land tax or lease payment for the land plot, tax on immovable property;

value of works (services) acquired by him on maintaining the property and/or other works (services) acquiered by him, connected with the property (including expenses on operation, repairs of the property, costs for communal services);

2.21. turnovers on realization of goods placed under the customs procedure of re-export;

2.22. turnovers on realization by religious organizations within the framework of religious activity:

2.22.1. of services on organizing and holding religious rituals, ceremonies, prayer meetings or other religious actions;

2.22.2. of religious literature and/or items intended for religious purposes (except for excisable ones);

2.23. turnovers on release of material valuables from state and/or mobilization material reserves, and also on return or shipment of material valuables to state and/or mobilization material reserves when carrying out operations on refreshment, borrowing, replacement, relocation, stockpiling, terminating the reservation of these material valuables in accordance with legislation by depositaries and suppliers;

2.24. turnovers on realization of securities (including in the course of their placement being carried out in accordance with legislation), forward and future contracts, options and other financial instruments of forward transactions with the exception of realization of financial instruments suggesting the delivery of the basic asset.

For the purposes of this Chapter, turnovers on realization of securities :

include the realization of securities themselves, commission incomes (including remunerations under contracts of commission or agency) on operations with securities, accrual of interest, depository activity, and also redemptions of securities by the issuer in the form established by the legislation;

does not include realization of securities pre-printed forms, pre-printed forms of settlement and payment documents, and also of bank cards;

2.25. turnovers from carrying out activities on performance of operations with non-deliverable off-exchange financial instruments (activity on off-exchange market Forex);

2.26. turnovers on realization in the territory of the Republic of Belarus of works (services) executed (rendered):

by bodies of internal affairs of the Republic of Belarus (their divisions);

by bodies and divisions on emergency situations of the Republic of Belarus.

Provisions of this sub-clause are applied also in relation to operations on handover of the lease object into lease;

2.27. operations on provision of repayable cash loans, including commercial loans provided by buyers of goods (works, services) in the form of an advance payment or preliminary payment.

The provisions of this sub-clause does not apply in relation to:

microloans provided by commercial organizations included by the National Bank in the register of microfinance organizations to natural persons under the pledge of movable property intended for personal, family or household use;

commercial loans provided by sellers of goods (work, services) in the form of adjournment or by-instalments payment of goods shipped (work performed, services rendered);

2.28. turnovers on realization of:

precious metals upon conclusion with a processing organization of a contract on delivery of precious metals as scrap and waste with an obligation of the processing organization for their processing and delivery of extracted precious metals to the State Fund of precious metals and precious stones of the Republic of Belarus (later on in this Chapter – State Fund);

precious metals and precious stones, and also executed works (rendered services) upon release of precious metals and precious stones from the State Fund;

2.29. issuance:

of excise marks of the Republic of Belarus, control and special marks for marking alcoholic beverages, excise marks of the Republic of Belarus and special marks from marking goods, control (identification) signs for marking goods, control signs for marking accompanying documents, instructions (study guides) on control over authenticity of the mentioned marks and signs along with an identifier of  concealed latent image;

invoice-statements for realization of motor vehicles;

of books for remarks and proposals;

of marks for duties and dues payable in accordance with the legislation;

2.30. turnovers on realization of:

2.30.1. an enterprise as a property complex of the debtor within the bankruptcy proceedings;

2.30.2. the property of a debtor recognized in accordance with the legislation as bankrupt shipped in the liquidation procedure, including the transfer of property to creditors;

2.30.3. arrested property of the debtor within the framework of executive proceedings, including the transfer of the property to the recoverers;

3.31. turnovers on realization in the territory of the Republic of Belarus by state social service institutions financed from the budget of articles manufactured:

within the framework of rehabilitation and work activity and in  training in hobby circles;

when holding events on development of accessible labour skills of disabled persons;

2.32. turnovers on realization of goods (works, services), property rights the place of realization of which is not recognized the territory of the Republic of Belarus.

3. The place of realization of goods shall be determined in accordance with Article 116 of this Code.

4. Place of realization of works, services, property rights shall be determined in accordance with:

a treaty of the Republic of Belarus making part of the law of the Eurasian Economic Union, in the case of realization of works (services), property rights in the member states of the of the Eurasian Economic Union;

with Article 117 of this Code – in other cases.

5. Provisions of clause 2 of this Article shall also apply to the sums specified in clause 4 of Article 120 of this Code, received (due) for goods (work, services), property rights, turnovers on realization (on transfer, on reimbursement ) of which are not recognized as taxation object according to clause 2 of this Article.

6. Provisions of this Chapter determining the procedure of taxation with the value added tax:

6.1. under contracts of lease (financial lease (leasing)) shall be also applied in relation to contracts of lease of dwelling premise and gratuitous use;

6.2. commitments and/or principals shall be also applied for consignors and other similar persons;

6.3. commitments and/or agents are also applied for consignees and other similar persons.

7. For the purposes of this Chapter:

7.1. goods do not include money and property rights;

7.2. putting into lease (transfer into a financial lease (leasing)) of property under a contract of lease (of financial lease (leasing)) stipulating return of the leasing object upon completion of the term of temporary possession and use of the leasing object stipulated by the contract of lease (financial lease (leasing)) shall be a turnover on realization of services;

7.3. handover of property in lease under a contract of lease stipulating the buy-out of the lease object shall be a turnover on realization of:

services in the part of lease payments;

goods in the part of buy-out price;

7.4. handover of property in financial lease (leasing) under a contract of (financial lease (leasing) stipulating the buy-out of the leasing object shall be a turnover on realization of:

goods – in the part of the contract value of the leasing object, on which the leasing object has been handed over. The contract value of the leasing object shall include also the buy-out value;

services – in the part of remuneration (income) of the lessor and investment expenses of the lessor, with the exception of investment expensed being reimbursed in the value of the leasing object.

Article 116. Place of realization of goods

1. The place of realization of goods shall be recognized to be the territory of the Republic of Belarus, if:

1.1. the goods are on the territory of the Republic of Belarus and are not shipped or transported:

to a buyer (to a recipient indicated by the buyer);

commissioner, agent or another similar person (recipient indicated by the commissioner, agent or another similar person) – upon realization of goods on the basis of contracts of commission, agency or other similar contracts;

1.2. the goods at the moment of beginning shipment or transportation:

to the buyer (the recipient indicated by the buyer) are on the territory of the Republic of Belarus;

commissioner, agent or another similar person (recipient indicated by the commissioner, agent or another similar person) are in the territory of the Republic of Belarus – upon realization of goods on the basis of contracts of commission, agency or other similar contracts.

2. Upon realization of goods by a payer of the Republic of Belarus to a payer of another member state of the Eurasian Economic Union when the carriage (transportation) of the goods began outside the customs territory of the Eurasian Economic Union and was completed in another member state of the Eurasian Economic Union, the place of realization of such good is recognized the territory of the Republic of Belarus if in its territory the good is placed under the customs procedure of release for internal consumption.

Article 117. Place of realization of works, services, property rights

1. The place of realization of works, services and property rights is deemed to be the territory of the Republic of Belarus, if:

1.1. works and services are directly connected with the real estate, including those being erected (except for air, sea and internal water vessels as well as space objects) being on the territory of the Republic of Belarus.

This provision shall be also applied in relation to:

putting of the immovable property into lease, (transfer into financial lease (leasing)) and hiring of the immovable property;

services of experts and agents on the evaluation of the immovable property, engineering and designer services, services of author’s and engineering supervision of the construction, directly connected with the immovable property;

1.2. works and services are connected with the movable property being on the territory of the Republic of Belarus, with the exception of the lease (financial lease (leasing)) of movable property, including vehicles.

This provision is also applied with regard to air vessels, sea vessels, and vessels of inland navigation, and to space objects as well;

1.3. services are actually rendered in the territory of the Republic of Belarus in the sphere of:

culture, art, education, physical culture and sport, tourism, leisure;

training (education), with the exception of services in the sphere of training (education) where the learning is carried out in the form of distance learning;

1.4. the buyer (purchaser) of works, services and property rights carries out the activity on the territory of the Republic of Belarus and/or its place of location (place of residence) is the Republic of Belarus.

In the event if, the buyer of works, services, property rights for the intellectual property objects is a foreign organization and the consumer is its representative office, permanent representation or affiliate that carry out the activity in the territory of the Republic of Belarus and/or its place of location is the Republic of Belarus, then the place of realization of works, services, property rights for the intellectual property objects:

shall be recognized to be the territory of the Republic of Belarus, unless otherwise established by part three of this part;

the territory of the Republic of Belarus is not recognized in relation to the part of works, services, property rights to intellectual property objects, realized by one foreign organization that does not carrying out activity in the Republic of Belarus through a permanent representation to another foreign organization, which is less than 10 percent of their value in the corresponding period, which is consumed in the Republic of Belarus by a representative office or a permanent representation, or an affiliate branch of such another foreign organization.

Provisions of this sub-clause shall be applied in relation to the following works, services, property rights:

property rights for the intellectual property objects, with the exception of rendering services in electronic form;

audit, consultation, marketing, legal, accounting,   engineering services, with the exception of engineering services directly related to the immovable property according to indent three of part two of sub-clause 1.1 of this clause;

advertising services, with the exception of rendering services in electronic form;

services on providing information;

services on processing information, with the exception of rendering services in electronic form;

designer services (including services on development of the design layout);

services in the sphere of training (education) where the learning is carried out in the form of distance learning;

science and research, design and experimental, and experimental and technological (technological) works;

services on recruiting and hiring of personnel in the event if the personnel works at the place of activity of the buyer;

lease (financial lease (leasing)) of movable property with the exception of vehicles;

services (works) on development, modification, testing and providing technical support of software;

hosing services (placement of information resources on the server and providing access to those resources, including services of web hosting (including complex services on placement and management of web sites), with the exception of rendering services in electronic form;

services on creation of databases, providing access to databases, with the exception of rendering services in electronic form;

services with the assistance of which the information about potential buyers (consumers) is searched and/or provided to the ordering customer, with the exception of rendering services in electronic form;

services by a person that engage in his name for the principal participant of the contract or in the name of the principal participant of the contract another person for performance of works (rendering of services) provided by this sub-clause;

services in electronic form;

1.5. buyer (purchaser) of services in electronic form is a natural person (including an individual entrepreneur) who meets the criteria specified in clause 2 of Article 141 of this Code (later on – natural person (including an individual entrepreneur) who purchases services in electronic form in the Republic of Belarus);

1.6. activity of an organization or individual entrepreneur is carried out on the territory of the Republic of Belarus and/or the place of their location (place of residence) is the Republic of Belarus and they execute works and render services, realize (transfer) property rights (with the exception of property rights to intellectual property objects) not provided by the sub clauses 1.1 - 1.5 of this clause.

This provision shall be also applied in relation to:

services on carriage of freight, passengers and their luggage;

lease (financial lease (leasing)) of means of transport, including renting (freight) of means of transport with crew.

2. If within the framework of a single contract, several types of works performed, services rendered and realization of some works, services are of an auxiliary nature in relation to the realization of other works, services, the place of realization of auxiliary works, services shall be recognized the place of realization of main works, services.

3. For the purposes of this Article:

vehicles – aircraft and sea vessels, internal water vessels, mixed river-sea vessels, railroad or tramway rolling-stock units, buses, automobiles, including trailers and semitrailers, cargo containers, used for carriage of persons or freight, mine dump trucks;

railroad rolling-stock units are separate objects of railroad rolling-stock units: locomotives, freight and passenger railroad cars equipped or not with motors, from which freight and passenger trains, electric trains are formed; diesel-trains, motor-rail cars, railbuses, diesel and electric trains, electric motor-rail cars, intended for carriage for freight, persons and/or luggage, post.

4. Services in electronic form include:

4.1. granting rights to use software (including computer games), databases, their updates and additional functionality via the network Internet, including by providing remote access to them, as well as electronic books (publications) and other electronic publications, information, educational materials, graphic images, musical works with or without text, audiovisual works through the network Internet, including by providing remote access to them to review and/or listen via the network Internet;

4.2. advertising services in the network Internet, including using programs for electronic computers and databases operating in the network Internet, as well as providing space and time for advertising in the network Internet;

4.3. services on placing offers for acquisition (realization) of goods (works, services), property rights in the network Internet;

4.4. services performed automatically via the network Internet when data is entered by the buyer of services, automated data retrieval services, their selection and sorting at queries, providing the specified data to users through information and telecommunication networks (including stock exchange reports in real time, real-time automated translation);

4.5. services on searching and/or providing to the ordering customer of information about potential buyers;

4.6. services on providing via the network Internet of technical, organizational, informational and other possibilities carried out by using information technologies and systems for establishing contacts and concluding transactions between sellers and buyers (including the provision of a trading platform operating in the network Internet in real time mode, where potential buyers offer their price through an automated procedure and the parties are notified of the sale by sending automatically created message);

4.7. providing and/or maintaining a presence in the network Internet for personal purposes or for the purposes of carrying out the entrepreneurial activity, supporting electronic resources of users (sites and/or pages of sites in the network Internet), providing access to them for other users of the network Internet, enabling users to modification thereof, provision of services on information systems administration;

4.8. storing and processing information, provided that the person who submitted this information has access to it through the network Internet;

4.9. providing real-time computing power for placing information in the information system;

4.10. provision of domain names, provision of hosting services;

4.11. providing access to search engines in the network Internet;

4.12. maintaining statistics in the network Internet;

4.13. services on organizing and/or holding via the network Internet of gambling games.

5. Services in electronic form do not include:

5.1. realization of goods (works, services), if, when ordered through the network Internet, delivery of goods (performance of works, rendering of services) is carried out without using the network Internet;

5.2. realization (transfer of rights to use) of programs for electronic computers (including computer games), databases contained on tangible media;

5.3. provision of consultation services through electronic mail;

5.4. rendering of services on providing access to the network Internet.

Article 118. Exemption from value added tax of turnovers on realization of goods (works, services), property rights

1. From the value added tax are exempted the turnovers on realization in the territory of the Republic of Belarus of:

1.1. [excluded]

1.2. medical services (with the exception of cosmetology services of non medicinal nature). For the purposes of this sub-clause, medical services include:

1.2.1. diagnostic services:

laboratory diagnostics - general clinical (non-invasive) and biochemical research methods, microbiological, hematological, genetic, immunological, cytological, clinical and morphological (histological), parasitological, HIV diagnostics;

radiation diagnostics - X-ray, radionuclide, computed tomography, magnetic resonance imaging, ultrasound, thermal imaging, pathological, anatomical, functional, endoscopic diagnostics;

1.2.2. specialized medical services in the field of:

obstetrics, allergology and immunology, anesthesiology, vaccination, venereology, gastroenterology, hematology, genetics, gynecology, dermatology, dietology, infectious diseases, cardiology, combustiology, physical therapy, radiotherapy, massage, narcology, neurology, nephrology, orthopedics, ophthalmology, proctology and occupational pathology;

oncology, including mammology and oncohematology;

otorhinolaryngology, including audiology;

pediatrics, including neonatology;

prosthetics (mammary gland, eye, ear, joints, limbs and limb fragments);

psychiatry, psychotherapy, pulmonology, radiology, rehabilitology, resuscitation and rheumatology;

dentistry (therapeutic, surgical, orthodontic, orthopedic, dental);

therapy, toxicology, traumatology, organ and (or) tissue transplantation, physiotherapy and phthisiology;

urology, including andrology;

surgery, including angiosurgery, pediatric, cardiac surgery, X-ray endovascular, thoracic, maxillofacial, endoscopic, neurosurgery, surgical ophthalmology, including microsurgery, plastic surgery, performed for medical reasons (surgical interventions in post-traumatic deformities, birth defects, gigantomastia);

extracorporeal treatment methods, including dialysis, hemosorption, plasma exchange;

endocrinology;

1.2.3. non-traditional medical services:

apitherapy, hirudotherapy, homeopathy, iridodiagnostics, reflexotherapy, manual therapy, phytotherapy;

treatment and diagnosis by other means of natural origin;

1.2.4. medical and social care services for the sick;

1.2.5. primary care services;

1.2.6. ambulance services;

1.2.7. services for the procurement of organs and/or tissues - collection of organs and/or tissues, organization of blood donation, procurement, processing, storage of blood, its components and preparations from donor blood;

1.3. veterinary activities. For the purposes of this sub-clause, veterinary activities include:

1.3.1. prevention, diagnosis and treatment of animal diseases;

1.3.2. issuance of veterinary documents;

1.3.3. conducting special laboratory studies to assess the safety of veterinary and sanitary food raw materials and food products, feed and feed additives, the quality of veterinary drugs;

1.3.4. veterinary and sanitary examination of products of animal origin, as well as in cases established by legislative acts, products of plant origin when they are realized on the markets;

1.4. social according to the list of such services approved by the Council of Ministers of the Republic of Belarus, being render by:

non-governmental non-commercial organizations in the form of stationary social services;

state organizations (structural divisions thereof);

1.5. foodstuffs produced by:

1.5.1. education institutions, other organizations and individual entrepreneurs that in accordance with legislation are granted the right to carry out educational activity, for trainees receiving pre-school education, special education at the pre-school education level, when meals are provided to the trainees;

1.5.2. structural divisions of education institutions, when meals are provided to the trainees in these education institutions;

1.5.3. public catering entities specialized in  carrying out organization of the provision of meals to trainees in education institutions through conclusion of a corresponding contract;

1.5.4. canteens of health care institutions and social protection institutions;

1.6. services on training children in specialized educational and sporting institutions;

1.7. services in the sphere of culture according to the list of such services approved by the President of the Republic of Belarus;

1.8. by organizations of culture, and also by the National State TV and Radio Company of the Republic of Belarus, closed joint-stock companies “The Second National TV Channel”, “Stolichnoye Televidenie” (later on in this Article – TV and radio organizations):

programs (booklets) about cultural events and shows, catalogues (booklets), post cards, containing information about museums (exhibitions);

of property rights to the objects of copyright law and related rights;

works on production of films via implementation of the creative concept of their authors on the cinematography technological basis (later on – film production works);

works on replication of films and sound tracks;

auxiliary works executed on the cinematography technological basis in the course of film production;

works on restoration of films;

works on making copies of museum items and of documents from  museum collections;

works on compiling bibliographic lists and references;

works on compiling catalogues of books, printed mass media, manuscripts, archive documents, art collections;

works on making copies of documents from  library collections;

1.9. by organizations and individual entrepreneurs put on record in the tax bodies of the Republic of Belarus to organizations of culture or TV and radio organizations:

of cultural valuable according to the list of such valuables approved by the Ministry of Culture (later on – cultural valuables);

of works on production of films and TV and radio programs;

works on producing computer graphics;

of works on fabricating of decorations, furniture and stage-property, properties, costumes, footwear, headwear, make-up and wig-making articles, arms, pyrotechnics, used for holding cultural events and shows, production of films or TV and radio programs;

of property rights to the objects of copyright law and related rights.

The ground for exemption from value added tax of turnovers on realization of cultural valuables in accordance with indent two of part one of this sub-clause shall be an opinion of the Ministry of Culture on assignment of the goods to cultural valuables;

1.10. by foreign organizations not being put on record in the tax bodies of the Republic of Belarus:

to organizations of culture, TV and radio broadcasting organizations:

of advertising services;

of property rights to the objects of copyright law and related rights;

1.10.2. of works (services) connected participation of Belarusian organizations and/or Belarusian individual entrepreneurs in conferences, forums, symposiums, congresses, in exhibitions or fairs, held in foreign states;

1.10.3. to republican bodies of state administration of works, services, property rights payable thereby at the expense of budgetary means;

1.11. goods (works, services) by the association of public associations “Belarusian Confederation of Creative Unions”, creative unions of the Republic of Belarus and their funds according to the list of such organizations approved by the President of the Republic of Belarus;

1.12. of services related to organizing of funerals. For the purposes of this sub-clause, services related to organizing of funerals include:

1.12.1. provision (rental) of ritual and funeral products, devices for the conduct of the funeral, equipment for the care of the sites for burial;

1.12.2. delivery of ritual and funeral products, gravestones and related loading and unloading operations;

1.12.3. organizing and conducting funerals, including filing announcements, obituary, drafting mourning speeches, alerting relatives;

1.12.4. services of a hairdresser, cosmetologist, embalmer (corpsman) in preparing the body (remains) of the deceased  for cremation or burial;

1.12.5. provision of a cold room for storing the body (remains) of the deceased;

1.12.6. putting in lease of premises and its design for conducting the funeral;

1.12.7. removal of the coffin with the body (remains) of the deceased, urns with ashes, escorting them to the place of burial;

1.12.8. funeral music;

1.12.9. providing vehicles for transportation and transportation of the body (remains) of the deceased, urns with ashes, accompanying persons (relatives) to the place of the funeral;

1.12.10. services for the reburial of the body (remains) of the deceased, urns with ashes;

1.12.11. services for the burial and added burial of the body (remains) of the deceased, urns with ashes into the ground in a cemetery, crypt or urns with ashes in the columbarium, including digging and backfilling of the grave, including preparatory work for digging the grave in winter time (warming, warming the surface of the land plot, working (cutting, loosening) of the frozen ground by the mechanized method);

1.12.12. crematorium services::

cremation of the body (remains) of the deceased;

placing ashes in the urn;

keeping the urn with ashes in columbarium;

storing urns (capsules) with ashes;

preparing the urn with ashes for departure outside the Republic of Belarus;

1.12.13. improvement of the provided site for burial, decoration of the grave, crypt, place in the columbarium;

1.12.14. drawing (carving, engraving) inscriptions, emblems, drawings, bas-reliefs, making graphic portraits on tombstones, installing medallions, tablets, attaching cast elements to tombstones;

1.12.15. landscaping of the burial site;

1.12.16. maintenance, repair and restoration of burial mounds and structures, crypts, columbariums, including those destroyed (damaged) as a result of natural and man-made emergencies, acts of vandalism;

1.12.17. installation, dismantling of gravestones;

1.12.18. cleaning the territory of the burial place, fixed adjacent territory and removal of waste from those territories;

1.13. of tombstones, fences and other ritual objects related to the burial, as well as work on their production;

1.14. of religious literature and/or items intended for religious purposes (except for excisable ones), with the exception of turnovers on realization of those indicated in sub-clause 2.22 of clause 2 of Article 115 of this Code;

1.15. of articles of traditional artistic handicraft of a recognized artistic value, according to the list of such articles approved by the President of the Republic of Belarus.

The ground for exemption of payers from value added tax shall be the opinion about assignment of products to articles of traditional artistic handicraft to be issued by the expert commission on assignment of products of traditional artistic handicraft organizations to articles of traditional artistic handicraft.

The exemption from value added tax covers also all payers that realize purchased articles  mentioned in part one of this sub-clause. The ground for application by the buyer of the exemption from value added tax shall be a copy of the opinion about assignment of products to articles of traditional artistic handicraft, received from the seller;

1.16. of goods (works, services) by the payers using the labour of disabled persons, if the average number of disabled person for a period is not less than 30 percent of the average number of workers for the same period.

For the purposes of this sub-clause:

goods (works, services) do not include acquired goods, excisable goods, broker and other intermediary services, transfer of property into lease (financial lease (leasing));

the average number of workers (disabled persons) in the period from the beginning of the year to the reporting period inclusively is determined via summing up the average number of workers (disabled persons) for all months expired in the period from the beginning of the year to the reporting period inclusively and dividing the sum obtained by the number of the expired months for which the average number of workers is determined;

the average number of workers (disabled persons) for each month is to be determined as the average listed number, computed under the procedure established by the National Statistical Committee, of workers per month (with the exception of workers on maternity leaves, on leaves connected with adoption of children at the age of up to three months or designating them as tutors, on leaves for caring children till the age of three years, in connection with adoption of orphaned children and children left without parental care permanently residing in the territory of the Republic of Belarus at the age of three to sixteen years); the average number of persons working part-time which have the principal place of work with other employers; the average number of persons fulfilling job on civil-law contracts (including those concluded with legal persons if the subject of the contract is services on hiring workers);

calculation of the number of workers shall be made for the organization as a whole, including affiliates.

Exemption from the value added tax:

is granted subject to compliance with the established percentage of the payroll number of disabled persons on overage for the respective expired reporting period;

covers all payers that realize goods acquired from the payers mentioned in part one of this sub-clause. The ground for application by the buyer of the exemption from value added tax shall be the entry "Exemption according to sub-clause 1.16 of clause 1 of Article 118 of the Tax Code of the Republic of Belarus" made by the seller in the primary accounting documents used when the goods are shipped;

1.17. of precious metals and precious stones, and also of executed works (rendered services) in the event of:

1.17.1. delivery (supply) of precious metals and precious stones, including as scrap and waste containing associated components (with the exception of precious metals specified in indent two of sub-clause 2.28 of clause 2 of Article 115 of this Code) to the State Fund , and also when realizing precious stones to the National Bank;

1.17.2. realization by domestic diamond-processing organizations of diamonds of own production not fixed in jewelry, upon availability of the quality certificate for each diamond issued in accordance with the legislation;

1.17.3. processing of scrap and waste accepted into the processing fund of the State Fund for consecutive supply of obtained precious metals to the State Fund;

1.17.4. organizing of the buying-up of precious metals and precious stones from natural persons for state needs;

1.17.5. realization by organizations to banks, between banks, by banks to organizations of natural persons of bullions and small bars of precious metals, bullion (investment) coins of precious metals;

1.17.6. realization by organizations to banks, between banks, by banks to organizations and natural persons of diamonds having quality certificate for diamonds issued by the National Bank;

1.18. goods by duty-free shops:

1.18.1. within a customs control zone;

1.18.2. under the customs control for foreign diplomatic missions, missions of the international organizations equated thereto in status, and consular institutions;

1.19. of passes for sanatorium treatment and medical rehabilitation of population by organizations, their separate divisions carrying out sanatorium treatment and medical rehabilitation of population according to the list of such organizations approved by the Council of Ministers of the Republic of Belarus;

1.20. of goods (works, services) fabricated (executed, rendered) by correctional institutions of the criminal-executive system and by medical and labour prevention facilities.

The exemption from value added tax covers all payers that realize goods manufactured by payers mentioned in part one of this sub-clause. The ground for application by the buyer of the exemption from value added tax shall be the entry "Exemption according to sub-clause 1.20 of clause 1 of Article 118 of the Tax Code of the Republic of Belarus" made by the seller in the primary accounting documents used when the goods are shipped;

1.21. of services rendered to natural persons:

1.21.1. on delivery of pensions and other social benefits.

Services on delivery to natural persons of pensions and other social benefits include the handing-out (delivery) to natural persons of pensions and other social benefits:

according to payrolls (lists) of bodies on labor, employment and social protection;

by sending and paying pension sums and other social payments by money transfers, which are sent by the body that appoints (pays) the pension and other social payments, or through the appropriate divisions of banks;

1.21.2. on receiving subscriptions to print media and their delivery.

The provisions of this sub-clause do not apply when providing the services specified in part one of this sub-clause to individual entrepreneurs;

1.22. of mail communication services on sending parcels and/or postal payments accepted from natural persons by postal service operators for delivery (handing in) to the addressee;

The provisions of this sub-clause do not apply when providing the services specified in part one of this sub-clause to individual entrepreneurs;

1.23. of research and development, design and experimental, and technological and experimental works, registered in the state register of science and research, design and experimental, and experimental and technological works under the procedure determined by the President of the Republic of Belarus;

1.24. of solid fuel to natural persons for communal and household consumption and to fuel supplying organizations for selling to natural persons.

For the purposes of this sub-clause solid fuel is understood to be fuel briquets on the basis of peat, sod peat, coal with the exception of charcoal, firewood, used by natural persons for communal and household consumption;

1.25. of housing and communal or operational services rendered to natural persons, according to the list of such services approved by the President of the Republic of Belarus;

1.26. of works (services) performed (rendered) to natural persons carrying out the conduct of personal subsidiary husbandry. For the purposes of this sub-clause, works (services) being performed (rendered) to natural persons carrying out the conduct of personal subsidiary husbandry are understood:

1.26.1. works on cultivating crops:

plowing, subsurface cultivation, cultivation, disking, harrowing of the soil;

soil application of mineral, organic fertilizers, peat, pesticides, lime materials;

sowing, planting, inter-row processing of crops;

1.26.2. mechanized harvesting and harvest finishing work:

mowing, selection of rolls and threshing, cleaning by direct combining, grinding of grain and leguminous crops, corn;

mowing grasses and other crops, turning, wrapping, creating enlarged rolls of hay, straw, picking and cropping a pile, storing hay, straw;

mowing, harvesting, loading potatoes, root crops, sugar beets, vegetables and other crops;

transportation of agricultural products from fields to storage sites;

1.26.3. other works (services):

milk separation;

slaughtering cattle;

artificial insemination of animals;

cattle grazing;

harvesting, sawing, chopping and storing firewood;

motor transportation services for the delivery of stove fuel;

animal-drawn vehicle services;

repairs of household outbuilidings;

1.27. of services accompanying the education process.

For the purposes of this sub-clause, services accompanying the education process include:

1.27.1. holding rehearsal testing;

1.27.2. acceptance and drawing up of documents for participation in centralized testing;

1.27.3. [excluded]

1.27.4. coaching (consulting services on certain academic subjects (subjects), academic disciplines (disciplines), educational spheres, themes, including assistance in preparing for centralized testing);

1.28. of paid services in the sphere of education:

For the purposes of this clause, paid services the education sphere include:

1.28.1. implementation of educational programs of pre-school, general secondary, special, vocational-technical,  special secondary, higher, postgraduate education;

1.28.2. implementation of educational program of additional education of children and youths;

1.28.3. implementation of educational programs of additional education of adults (with the exception of educational program of training courses (lycea, thematic seminars, case studies, trainings, and others types of training courses), education program of improving personal capabilities and abilities, being implemented by other organizations and individual entrepreneurs that are granted, in accordance with legislation, the right to carry out educational activity;

1.28.4. holding of repeat current and final fee-based performance evaluation;

1.28.5. conducting of laboratory works and practical training with students (trainees) and learners outside the learning group;

1.29. of services rendered by the Higher Attestation Commission at the expense of means of the republican budget and connected with attestation of scientists of higher qualification, conferral of academic titles, nostrification (equiparation) of documents on awarding of academic grades and conferral of academic titles, issued in foreign states, re-attestation of persons having academic grades and academic titles of foreign states, deprivation (restitution) of academic grades and academic titles;

1.30. services on training for clinical residents;

1.31. of goods (works, services) manufactured (executed, rendered) by learners and stipulated by curriculum documents, plan of educative work of the education establishment, educative programs, when education establishments carry out activities according to the list approved by the Council of Ministers of the Republic of Belarus;

For the purposes of this sub-clause and clause 50 of Article 208 of this Code, goods mean products produced by learners in the process of training and/or attitude development;

1.32. of services of guide-interpreters, guides, being rendered within the Republic of Belarus, as well as the following tourist services on organizing:

1.32.1. excursion servicing in the Republic of Belarus:

services for the preparation, organization and conduct of excursions;

services provided as part of the tour, on the organization and provision of catering for excursionist;

services provided as part of the tour, on the organization of transportation for excursionist by whereas transportation means;

1.32.2. travel of tourists within the Republic of Belarus:

services of travel agents and tour operators on the organization of complex tourist servicing;

services of travel agents and tour operators provided as part of the tour, on the organization of accommodation, catering for tourists;

services provided as part of the tour, on the organization of transportation for tourists by whereas transportation means;

services provided as part of the tour, on the organization of sports, educational, recreational, sightseeing, cultural and entertainment events in accordance with the program of tourist travel;

services provided as part of the tour, tourist information;

services provided as part of the tour, on booking and/or selling places in vehicles, restaurants, places of temporary residence, car rental;

services provided as part of the tour, on drawing up travel documents for tourist travel routes in foreign countries (visa support services, document delivery services to consular offices, travel insurance services);

services provided as part of the tour, on the organization of meetings of tourists at the airport, including booking a VIP-hall, the services of an accompanying person;

services provided as part of the tour, on the organization of hunting and fishing;

1.33. of dwelling fund objects, unfinished dwelling construction objects;

1.34. of works on construction and repair of dwelling fund objects, garages, and parking areas, according to the list of such services approved by the President of the Republic of Belarus;

1.35. of  works on construction, maintenance and repair of objects for common use of gardening partnerships.

For the purposes of this sub-clause:

1.35.1. works on construction, maintenance and repair of objects for common use of gardening partnerships include:

design and exploration work carried out under contractor (subcontractor) contract;

allotment of land plots for construction, preparation of the construction site;

state expert examination of design and estimate documentation;

construction, other special installation and commissioning works carried out at the objects of gardening partnerships under contractor (subcontractor) contracts, including during running repairs;

landscaping and gardening, carried out within the boundaries of land plots of common use of gardening partnerships;

provision of construction machines and mechanisms for construction, other special installation and commissioning works;

exercising functions of author’s supervision, engineering supervision, ordering customer, developer;

1.35.2. objects of common use of gardening partnerships are understood to be roads, overhead and cable power lines, transformer substations, water mains, water towers, temporary waste storage sites, common gates and fences, and other objects necessary for conducting collective gardening, located on land plots of common use of gardening partnerships;

1.36. [excluded]

1.37. by banks of the Republic of Belarus, non-bank credit and financial organizations of the Republic of Belarus of operations on:

1.37.1. on granting credits (loans), guarantees or other means of securing the fulfillment of obligations on credits, including management (servicing) of credits and guarantees on credits.

Turnovers on granting credits (loans) include:

operations on granting, transfer to another bank, management (servicing), repayment of credits (loans), including operations on making up of suretyships, pledges, and other methods of securing the fulfillment of obligations on credits (loans);

financing against monetary claim assignment (factoring);

acceptance of a bill of exchange (promissory note), negotiations of a bill of exchange (promissory note) with deferment of payment;

overdraft on accounts of the customer, including accounts of banks;

placement of monetary means in banks in the form of deposit, consignation of monetary means in the fund of compulsory reserves being place in the National Bank, balance on the correspondent account, other accounts of the bank;

all kinds of remuneration received from the said operations (interest including default interest, commission fee, payment, discount, penalty fee (fines, penalty interest) etc).

Operations on granting guarantees on credits include issuance by banks of suretyships, bank guarantees connected with assumption of commitments before creditors of a bank customer. The exemption from value added tax covers all sums of settlements on these operations including the sums of received remuneration;

1.37.2. on conducting of current (settlement) accounts, deposit or other accounts, and also of operations directly related to the transfer of monetary means, debt obligations.

The said turnovers include sums:

from settlement and/or cashier servicing of customers in the form of commission fees, and also expenses of banks on performance of operations, reimbursed by customers. In that instance, other banks, and also their affiliates, act as customers on the same basis as others;

for opening, operating and closing of accounts;

for transfer (sending) and crediting monetary means, forwarding payment instructions, recall (annulment), modification, suspension of the execution of payment instructions;

for penalty interest on documents not paid in time;

for searching of sums not delivered to destination;

for transmittance, including via electronic communications, of statements, references, duplicates on accounts;

from installation and/or maintenance of electronic document management systems between the bank and customers, remote banking systems;

from making of operations complex with bank guarantees, letters of credit, cheques, payment instructions in foreign currency, collection of payments;

from carrying out depositary activity;

from carrying out operations with bank payment cards, with the exception of reimbursement of the value of blank bank payment cards;

from carrying out operations with electronic money, with the exception of reimbursement o the value of electronic purses in the instances when blank payment cards with magnetic stripe and/or microprocessor are used as electronic purses, other similar program and technical devices belonging to material information carriers;

1.37.3. on circulation of Belarusian rubles or foreign currency, unless such operations are carried out for numismatic purposes or related to the realization of foreign currency to the National Bank or to a bank of another state by the organization that produced the currency and are the subject matter of services on storage, transportation or collection of Belarusian rubles and foreign currency. The said turnovers include:

currency exchange operations for the purchase of foreign currency for Belarusian rubles and/or the sale of foreign currency for Belarusian rubles, including forward transactions;

currency exchange operations for the conversion (exchange) of one type of foreign currency into another type of foreign currency, including forward transactions;

transactions with forward and futures contracts, options and other financial instruments of forward transactions;

acceptance and handing out cash monetary means;

change (exchange) of cash monetary means in Belarusian rubles and/or foreign currency;

selling of cash monetary means to banks;

acceptance of cash foreign currency for collection;

re-counting of cash monetary means in Belarusian rubles and/or foreign currency.

The exemption from value added tax covers sums of payment for services, commission fees and other bank incomes on operations indicated in this sub-clause, and also exchange rate differences on the said operations;

1.37.4. on exercising rights of claim on credit contracts on the basis of cession contracts (assignment of claim);

1.37.5. realization to the open joint-stock company "Development Bank of the Republic of Belarus" of operations on management of credits (servicing credits), and also on transfer of assets to the open joint-stock company "Development Bank of the Republic of Belarus", including sums of remuneration received by the open joint-stock company "Development Bank of the Republic of Belarus" from mentioned operations.

For the purposes of this sub-clause, assets are understood to be credits extended by banks on the basis of acts of the President of the Republic of Belarus or the Council of Ministers of the Republic of Belarus and being acquired by the open joint-stock company "Development Bank of the Republic of Belarus" from banks in accordance with the lists of such credits and the order determined by the President of the Republic of Belarus and the Council of Ministers of the Republic of Belarus;

1.38. by the open joint-stock company "Belarusian Currency and Funds Exchange" (later on in this sub-clause – the exchange) of operations on:

opening and maintaining accounts of participants in trading and/or clearing (including trading accounts of participants in trading), the opening of which is directly related to settlements on exchange trading and operations carried out by the Exchange;

conducting settlements in non-cash form through correspondent and other accounts opened by the Exchange at the National Bank, banks of the Republic of Belarus and non-resident banks, including conducting currency exchange operations, including at own trading directly related to clearing and settlements.

Such operations include:

carrying out clearing activities (conducting clearing) that includes determining the obligations to be fulfilled under the executed exchange transactions, including as a result of netting, preparing documents (information) that are grounds for termination and/or fulfillment of such obligations, collecting, reconciling, updating information on transactions, preparation of settlement documents on them to ensure settlements for the transfer of securities and monetary means;

maintaining accounts of participants of trading and/or clearing;

conducting operations (transfer (dispatch), crediting of monetary means according to the results of clearing and/or on the basis of orders of participants in trading and/or clearing and settlements);

sending settlement documents;

recall (annulment), modification, suspension of execution of payment instructions;

charging penalty interest on documents not paid in time;

searching of sums not delivered to destination;

transmittance, including via electronic communications, of statements (duplicates thereof), references on accounts;

performance of a set of operations with documents in Belarusian rubles and foreign currency;

accounting of means that will be used to provide security for the fulfillment of obligations on transactions being made on exchange trading;

accounting of contributions from participants in trading and/or clearing, as well as the use and placement of means of guarantee funds on its own behalf on accounts, including accounts on deposits with the National Bank, banks of the Republic of Belarus and non-resident banks in state securities of the Republic of Belarus, securities of the National Bank, bonds of banks in the order determined in agreement with the National Bank;

organizing (carrying out) exchange trading in financial assets, including currency valuables and emissive securities, with the exception of shares of closed joint-stock companies, including conducting the listing;

registration of reports and information on transactions made in the unorganized market, including in the process of performing the functions of the National Forex Center by the Exchange;

installation and/or maintenance of electronic document management systems between the Exchange and its customers;

installation and (or) maintenance of systems that ensure remote servicing of the Exchange customers in the course of clearing activities, activity on registration of information on transactions made in the unorganized market and the off-exchange Forex market, organization of trading in financial assets.

Exemption from the value added tax applies to all sums of incomes received from the mentioned operations (commission, fees and other similar types of incomes), as well as exchange differences on those operations;

1.39. to the open joint-stock company "Agency on management of assets" of operations on:

1.39.1. realization by banks and the open joint-stock company "Development Bank of the Republic of Belarus" of services on servicing credits;

1.39.2. transfer by banks and the open joint-stock company "Development Bank of the Republic of Belarus" of assets according to the list to be approved by the Council of Ministers of the Republic of Belarus and the National Bank;

1.39.3. transfer by the open joint-stock company "Belagroprombank" into gratuitous use of property and rights to use intellectual property objects;

1.39.4. gratuitous transfer by banks and the open joint-stock company "Development Bank of the Republic of Belarus" of property, including property rights, under contracts of granting gratuitous (sponsor) assistance;

1.40. of services on insurance (co-insurance, re-insurance).

For the purposes of this sub-clause, turnovers on realization of services on insurance (co-insurance, re-insurance) include:

1.40.1. insurance fees (premiums) on insurance (co-insurance, re-insurance) contracts;

1.40.2. return of insurance reserves formed in preceding periods;

1.40.3. commission fees on co-insurance, re-insurance contracts and fees from profit paid by re-insurers to re-insured for the opportunity to participate in the re-insurance contract and for cautious case administration;

1.40.4. reimbursement of a share of losses on risks transferred in reinsurance, and also on risks transferred by reinsurer in further (subsequent) reinsurance;

1.40.5. return of paid insurance compensation and insurance coverage;

1.40.6. exercising of the right of claim of the insurer on contracts of property insurance and insurance of civil liability to the person responsible for losses reimbursed as a result of insurance, in the instances provided by legislation;

1.40.7. interest charged by the cedent in favour of the reinsurer on the depot of premiums on the risks accepted for reinsurance;

1.40.8. commission fee paid by the insurer to the insurer that reimbursed the damage to the injured person on the contract of compulsory insurance of civil liability of owners of means of transport;

1.40.9. commission fee received by the insurance broker from insurance organizations for intermediary services on insurance rendered by him;

1.41. of works (services) in the field of space activity. For the purposes of this clause, works (services) in the field of space activity include:

works (services) performed (rendered) using technology located directly in outer space, including those controlled from the surface and/or from the atmosphere of the Earth;

works (services) on the study of outer space, observation of objects and phenomena in outer space, including from the surface and/or from the atmosphere of the Earth;

preparatory and/or auxiliary (related) ground works (services), technologically conditioned (necessary) and inseparably connected with the performance of works (rendering of services) on exploring outer space and/or performance of works (rendering of services) using the equipment located directly in outer space;

works (services) on the operation of ground-based controls of the Belarusian spacecraft for remote sensing of the Earth with a resolution of 1 meter and ground-based reception facilities from that spacecraft.

The ground for exemption from the value added tax of turnovers on realization of works (services) in accordance with part one of this sub-clause shall be a conclusion of the National Academy of Sciences of Belarus, confirming that the works performed (services rendered) relate to the works (services) specified in part one of this sub-clause;

1.42. works (services) performed rendered to natural persons on carrying out administrative procedures in relation to the immovable property;

1.43. on services to natural persons in the field of photography, hair salons, bathhouses and washing-houses, on  wet washing and dry washing, on clock and watches repair, on making and repairing of clothes and footwear, on repair and technical maintenance of household appliances, personal use items;

1.44. of goods of own production by the seller – tax resident of the Republic of Belarus according to a contract of sale with a lessor – tax resident of the Republic of Belarus that purchases these goods into ownership for their subsequent transfer under a contract of international leasing outside the Republic of Belarus with the right to buy out (later on in this sub-clause - the lessor).

A condition of application of exemption established by part one of this sub-clause is the fact that the seller – tax resident of the Republic of Belarus has the following documents:

contract of sale concluded with the lessor in which must be indicated that the goods is acquired for its transfer under the contract of international leasing outside the Republic of Belarus with the right to buy out;

a document stating that the goods belongs to products of own production, issued under the established procedure;

shipping documents confirming the fact of shipment of the good by the seller to the lessor;

a copy of the contract of international leasing stipulating the buy out of the leasing object and its exportation outside the Republic of Belarus;

(shipping) documents (copies thereof) with a notice of the lessee not being the tax resident of the Republic of Belarus about receipt of the leasing object, confirming the exportation of the leasing object outside the Republic of Belarus (required to be available when the leasing object is being exported to member states of the Eurasian Economic Union;

a confirmation of the exportation of the leasing object outside the territory of the Republic of Belarus received from the lessor (later on for the purposes of this sub-clause – confirmation of the exportation).

Confirmation of exportation shall be required when the leasing object is exported to states that are not members of the Eurasian Economic Union, in the following form, depending on the form of customs declaring of goods used by the lessor:

in the form of a copy certified by the personal numerical stamp of an official of the customs body of the declaration for the goods with notices of the customs body on release of goods in accordance with the declared customs procedure of export with the notice of the customs body “Товар вывезен (Good has been exported)” and the date of putting of such a notice, when the lessor carries out declaration of the goods to customs bodies in a written form;

in the form of a copy of the external presentation of the declaration for goods released in accordance with the customs procedure of export with indication of the date of permission for departure of goods outside the customs territory of the Republic of Belarus - when the lessor declares goods to customs bodies in the form of an electronic document.

Confrimation of the exportation shall be verified by a signature of the head of the legal person being the lessor or by a person authorized by the former.

For confirming the soundness of application of the exemption from the value added tax provided by part one of this sub-clause, the seller – tax resident of the Republic of Belarus sell present to the tax body shall present to the tax body at the place of its putting on record simultaneously with the tax declaration (calculation) on the value added tax the register of documents confirming the realization of goods of own production and exportation thereof outside the Republic of Belarus under a contract of international leasing outside the Republic of Belarus with the right to buy out according to the established form.

Documentary confirmation of the soundness of application of the exemption from the value added tax provided by part one of this sub-clause is to be performed within one hundred eighty calendar days from the date of shipment of the good of own production to the lessor (later on in this sub-clause – established time limit).

In the presence of a contract of sale with the lessor, the reflection of turnovers on realization of goods to the lessor (later on in this sub-clause – turnovers on realization of goods) shall be made by the seller - tax resident of the Republic of Belarus as applied to the established time limit in the following order.

In the absence of the documents specified in part two of this sub-clause, prior to the submission of the tax declaration (calculation) on the value-added tax of the reporting period in which the established time limit has not expired, turnovers on realization of goods need not be reflected therein.

When there are documents specified in part two of this sub-clause, turnovers on realization of goods under the contracts of sale with the lessor with application of exemption from the value added tax established by part one of this sub-clause are indicated in the tax declaration (calculation) on the value added tax for the reporting period the time limit for presentation of which follows the receipt of corresponding documents or for the reporting period in which corresponding documents have been received.

In the absence of documents specified in part two of this sub-clause prior to the submission of the tax declaration (calculation) on the value added tax of the reporting period in which the established time limit expires, the turnovers on realization of the goods shall be reflected without application of exemption from the value added tax established by part one of this sub-clause in the tax declaration (calculation) on the value added tax of the reporting period in which the established time limit has been expired.

Upon receipt of documents specified in part two of this sub-clause after the expiration of the established time limit and after reflection of turnovers on realization of goods in the tax declaration (calculation) on the value added tax, the turnovers on realization of those goods with application of the exemption from the value added tax established by part one of this sub-clause shall be reflected (along with concurrent decrease of the turnovers on these goods reflected earlier and correction of tax deductions) in the tax declaration (calculation) on the value added tax for the reporting period the deadline for the presentation of which follows the receipt of the respective documents or of the reporting period in which those documents have been received.

Provisions of part eleven of this sub-clause shall not be applied after expiration of more than three years from the date on which the deadline for the payment of the value-added tax occurred because of the lack of documents specified in part two of this sub-clause, in accordance with part ten of this sub-clause;

1.45. property rights to inventions, utility models, industrial designs, selection inventions, topologies of integrated circuits, industrial secrets (know-how);

1.4.6. by paying agents of the single settlement and information space of services on acceptance from natural persons of:

payments for goods, works, services, other payments arising from civil-law relations, donations to charity accounts;

taxes, dues (duties), penalty interest, fines, and other payments to the republican and local budgets, budgets of state non-budgetary funds;

1.47. by lessor of operations on transfer of apartments in apartment houses or multi-unit residential houses, of single-unit residential houses as a leasing object to lessees under contracts of financial lease (leasing) stipulating return of the leasing object upon completion of the term of temporary possession and use of the leasing object stipulated by that contract;

1.48. property rights to results of scientific and scientific and technical activity the data about which are contained in the state register of rights to results of scientific and scientific and technical activity, and also material objects related to these rights if the realization of property rights to results of scientific and scientific and technical activity is accompanied simultaneously by the transfer of such objects.

The ground for exemption from value added tax of turnovers on realization of property rights to results of scientific and scientific and technical activity, and also turnovers on realization of material objects related to these rights, in accordance with part one of this sub-clause shall be the observance of the following requirements:

data about the number and date of registration of rights to results of scientific and scientific and technical activity, description of these results contained in the state register of rights to results of scientific and scientific and technical activity, are indicated in contract stipulating the transfer of property rights to results of scientific and scientific and technical activity by their holder to another person or granting of the right to use results of scientific and scientific and technical activity by the right holder to another person;

a separate accounting is being conducted concerning turnovers on realization of property rights to results of scientific and scientific and technical activity  and material objects related to these rights, and also distribution of tax deductions related to the said turnovers on realization, by the method of separate accounting;

1.49. by lessors of operations on transfer of the leasing object to natural persons – lessees under contracts of financial lease (leasing) stipulating the buy-out of the leasing object. The mentioned turnovers include sums of leasing payments in the part of remuneration (income) of the lessor and investment expenses of the lessor, with the exception of investment expensed being reimbursed in the value of the leasing object.

A condition of application of the exemption from the value added tax established by part one of this sub-clause shall be the fact that the lessor has the following documents:

contract of financial lease (leasing) stipulating the buy-out of the leasing object concluded with a natural persons – lessee.

For the purposes of this sub-clause natural persons are understood to be citizens of the Republic of Belarus and also foreign citizens and stateless persons residing permanently in the Republic of Belarus;

act on acceptance-delivery of the leasing object;

copy of the passport of the citizen of the Republic of Belarus or another document containing reference to the citizenship of the Republic of Belarus – for citizens of the Republic of Belarus; copy of the residence permit in the Republic of Belarus – for foreign citizens and stateless persons.

In the event of premature rescission on a request of one of the parties of the contract of financial lease (leasing) that was completed with the buy-out of the leasing object, correction of the turnover on realization by the lessor of operations on transfer of the leasing object on which the lessor applied exemption from the value added tax in accordance with part one of this sub-clause is not performed.

For sums of increase of the tax base specified in sub-clauses 4.1 and 4.2 of clause 4 Article 120 of this Code, the exemption from the value added tax established by part one of this sub-clause:

is not extended if turnovers on transfer of the leasing object in the part of leasing payments reimbursing the value of the leasing object are not subject to exemption from the value added tax;

is extended if turnovers on transfer of the leasing object in the part of leasing payments reimbursing the value of the leasing object are subject to exemption from the value added tax in accordance with the legislation;

1.50. by commercial organizations included by the National Bank in the register of microfinance organizations of operations on regular granting of loans to natural persons against the pledge of movable property intended for personal, family or household use;

1.51. of works (services) related to the representation of the interests of the Republic of Belarus within the framework of pre-trial settlement of disputes, in international arbitration and foreign judicial bodies on disputes between foreign investors and the Republic of Belarus;

1.52. of works (services) related to the issue, placement, circulation, redemption of state long-term bonds of the Republic of Belarus, which are state debt obligations that form external state debt, taking into account the rights to such bonds;

1.53. until December 31, 2019, of works on technical inventory (verification of the characteristics) of unregistered capital constructions (buildings, structures), isolated premises, parking spaces, belonging to legal persons, and land management works in relation to land plots on which such objects are located.

For the purposes of this sub-clause, capital constructions (buildings, structures), isolated premises, parking places are understood to be the corresponding immovable property objects that were used until May 8, 2003.

2. The sums of increase of the tax base specified in clause 4 of Article 120 of this Code shall be exempt from value added tax if they are received (due) on goods (work, services), property rights, turnovers on realization of which are exempt from taxation according to clause 1 of this Article (with the exception of turnovers specified in part one of sub-clause 1.49 of clause 1 of this Article).

3. The payer in respect of turnovers on realization of goods (works, services), property rights to the industrial property objects, property rights to the objects of copyright law and related rights, provided by clause 1 of this Article, is entitled to refuse the exemption from the taxation of such turnovers by submitting a respective application to the tax body.

Such refusal is possible only in respect of all turnovers on realization of the payer provided by one or several sub-clauses of clause 1 of this Article.

The refusal of exemption for a period of less than one tax period is not allowed.

Article 119. Exemption of goods from value added tax upon importation into the territory of the Republic of Belarus

1. The following goods are exempted from value added tax upon importation into the territory of the Republic of Belarus:

1.1. vehicles imported from the territory of the  member states of the Eurasian Economic Union, with which international carriage of goods, passengers, and luggage is carried out, and also items of material logistics and equipment, fuel, foodstuffs and other property, necessary for operation of vehicles in transit, in intermediate stop points or acquired abroad in connection with liquidation of a damage (breakdown) of these vehicles;

1.2. goods subject to turning over into the ownership of the state in accordance with the legislation;

1.3. Belarusian rubles, foreign currency, in particular banknotes and coins, being a legal tender, and also securities, excise stamps, customs control stamps, stamps for duties and dues, paid in accordance with the legislation;

1.4. technical means that cannot be used otherwise than for prevention of disablement and or for rehabilitation of disabled persons, upon availability of the conclusion of the Ministry of Labour and Social Protection that the specified technical means include the following goods (being) imported:

1.4.1. audiotechnical products:

light and vibration sound signaling devices;

vibro-tactile devices;

hearing aids simulators;

media production (video films with subtitles);

hearing aid devices to compensate for hearing loss;

electric sound-amplifying kits, sound-amplifying equipment individual and collective use specially designed for training the deaf and hearing impaired;

visible speech devices and other indicators of speech sounds for the deaf;

technical means used by the deaf in everyday life (telephone sets for the cloth-eared and deaf (apparatus with amplifiers, with a "running line", "teleautographs", alarm clocks for the deaf);

1.4.2. typhlo-technical means:

technical means specifically designed to guide the blind in space;

instruments, slate, electronic and mechanical typewriters and paper specially designed for writing in braille boldface;

literature being published in braille bold as well as in large print;

technical means used by blind people in everyday life (optical, special devices for reading the “talking book”);

electro-optical technical means for the correction of low vision;

software, technical means specifically designed to facilitate the work of the blind on personal electronic data processing machines;

1.4.3. toys and games specifically designed for the blind;

1.4.4. technical means for the rehabilitation of the deaf and blind;

1.4.5. special household appliances used by disabled persons to dress clothes, footwear, open doors, use keys and others, as well as for self-service in the kitchen (for cleaning and cutting food);

1.4.6. specialized devices for setting up workplaces for disabled persons;

1.4.7. special training and sports equipment for disabled persons;

1.4.8. elevators for various purposes to serve disabled persons;

1.5. [excluded]

1.6. seeds imported for scientific purposes and state strain testing.

The ground for exemption from the value added tax of seeds specified in part one of this sub-clause shall be a statement of the state institution “State inspectorate on testing and protecting plant varieties” about intended use of seeds being imported for state strain testing or an opinion of the National Academy of Sciences of Belarus about intended use of seeds being imported for scientific purposes;

1.7. carriers of films, cultural valuables, imported by organizations of culture.

The ground for exemption of goods specified in part one of this sub-clause from the value added tax shall be the conclusion of the Ministry of Culture on assignment of imported goods to carriers of films or cultural valuables;

1.8. all types of printed editions being received by state libraries and museums under international book exchange, and also cinema- and video works imported by state cinema- and video organizations for the purpose of carrying out international non-commercial exchanges;

1.9. precious metals, precious stones and articles therefrom (parts of articles) (except for jewellery), and also concentrates and other industrial products, scrap and waste containing precious and nonferrous metals imported for replenishment of the State Fund, when a corresponding confirmation of the Ministry of Finance or the National Bank (for precious stones in the form of bullions imported for replenishment of the gold reserve of the State Fund) is available;

1.10. bullions and small bars of precious metals imported by banks;

1.11. goods imported from the territory of the member states of the Eurasian Economic Union and intended for the official use by diplomatic missions and consular offices of foreign states or for personal use of diplomatic and/or administrative and technical staff of those missions and offices, including members of their families living with them (unless they are citizens of the Republic of Belarus), by missions and bodies of international organizations and interstate formations, and also diplomatic mail and consular bag;

1.12. goods (being) received as foreign gratuitous assistance, under the procedure and conditions established by the President of the Republic of Belarus;

1.13. goods (being) received as international technical assistance and/or acquired at the expense of means of international technical assistance, intended for the purposes determined by the project (program) of international technical assistance, under the procedure and conditions established by the President of the Republic of Belarus;

1.14. equipment, appliances, materials and components, intended for performance of research and development, technological and experimental works, being imported by residents of the Republic of Belarus into the territory of the Republic of Belarus under the procedure and conditions established by the President of the Republic of Belarus;

1.15. goods being imported by organizations producing laser-optical machinery, used by such organizations as components of laser-optical machinery and not produced in the territory of the Republic of Belarus, and also equipment and work tools used by them for producing laser-optical machinery.

The ground for exemption from the value added tax of goods, machinery, and work tools, indicated in part one of this sub-clause shall be a statement that they are necessary for producing laser-optical machinery, issued by the State Committee on Science and Technology under the procedure and according to the form determined by the Council of Ministers of the Republic of Belarus;

1.16. installations, components and/or spare parts thereto on using renewable energy sources.

The ground for exemption from the value added tax of goods indicated in part one of this sub-clause shall be a statement on assignment of imported goods to installations, components and/or spare parts thereto for using renewable energy sources, issued by the Department on Energy Efficiency of the State Committee on Standardization under the procedure and according to the form determined by the Council of Ministers of the Republic of Belarus;

1.17. technological equipment and spare parts thereto, intended for implementation of investment projects financed at the expense of external state loans (credits) under the procedure established by the President of the Republic of Belarus;

1.18. technological equipment, components and/or spare parts thereto, imported by residents of the Park of High Technologies under the procedure and conditions established by the President of the Republic of Belarus;

1.19. technological equipment, components and spare parts thereto for exclusive use in the territory of the Republic of Belarus for purposes of implementing an investment project within the framework of concluded investment contracts between an investor and the Republic of Belarus under the procedure and conditions established by the President of the Republic of Belarus;

1.20. other goods under the procedure and conditions established by the President of the Republic of Belarus.

2. Goods specified in sub-clauses 1.2, 1.3, part one of sub-clause 1.6, part of sub-clause 1.7, sub-clauses 1.8–1.10, 1.12, part one of sub-clause 1.15, and part one of sub-clause 1.16 of clause 1 of this Article, placed under the customs procedure of release for internal consumption with application of privileges on the value added tax must, are deemed to be release without restrictions for using and disposing of those goods.

Restrictions for using and disposing of goods indicated in sub-clauses 1.13, 1.14, 1.17, 1.18 of clause 1 of this Article are effective till the use and consumption of the goods for the purposes corresponding to the conditions for granting privileges, but not more than five years from the day of release of goods in accordance with the customs procedure of release for internal consumption, which is confirmed by submission to the customs body of the report of the payer under the procedure and according to the forms established by the State Customs Committee.

With regard to technological equipment, components and spare parts for it imported with the application of exemption in accordance with sub-clause 1.19 of clause 1 of this Article, restrictions on the use and/or disposal are valid until the end of the implementation of the investment project, but not more than five years from the date of placement of such technological equipment, components and spare parts for it under the appropriate customs procedure.

Goods specified in sub-clause 1.4. of clause 1 of this Article imported with application of privileges on the value added tax must be used in the territory of the Republic of Belarus for prevention of disablement and or for rehabilitation of disabled persons. When those goods are used inappropriately or exported outside the territory of the Republic of Belarus without being used for the mentioned purpose, the value added tax shall be paid (collected) in accordance with the legislation.

Article 120. Tax base for the value added tax

1. The tax base upon realization of goods (works, services), property rights shall be determined as the value of those goods (works, services), property rights computed based on prices (tariffs) for goods (works, services), property rights inclusive of excises (for excisable goods) without including therein the value added tax.

2. Provisions of clause 1 of this Article cover turnovers on realization:

2.1. acquired goods (works, services), property rights;

2.2. produced goods (works, services), property rights;

2.3. of goods (works, services), property rights by their owner or rightholder on the basis of contracts of commission, agency, and other similar civil-law contracts.

3. The tax base shall be determined:

based on all receipts of the payer received by him in monetary form, in kind and in other forms from realization of goods (works, services), property rights;

depending on specific features of realization of produced or acquired goods (works, services), property rights.

4. The tax base shall be increased by sums actually received (due to be received):

4.1. for realized goods (works, services), property rights above the price of their realization or otherwise connected with payment for realized goods (works, services), property rights;

4.2. as sanctions for violation by buyers (customers) of contract conditions;

4.3. as an additional advantage for goods (works, services), property rights, realized by the commissioner on conditions that are more favourable than those indicated by the commitent.

The tax base shall be increased for the commissioner in the part of additional advantage due to the commissioner, for the commitent – in the part of additional advantage due to the commitent;

4.4. as interest (payment) for using a commercial loan provided by sellers of goods (work, services) in the form of adjournment or by-instalments payment of goods shipped (work performed, services rendered).

5. When the tax base is determined, means not connected with settlements on payment for goods (works, services), property rights, received by the payer, are not taken in consideration, including:

5.1. means remitted by the head organization to separate divisions that make a part of it and also by these separate divisions to each other, from centralized financial funds (reserves) as a secondary  redistribution of profit;

5.2. dividends and incomes equated to them;

5.3. means remitted to an organization, including state association, association, and also to the executive body of the open joint-stock company by organizations (affiliated and subordinated companies), separate structural divisions at the expense of profit remaining in their disposal:

provided that they are spent according to an approved estimate for carrying out centralized functions on management of all organizations (affiliated and subordinated companies), separate structural divisions that make part of the organization, including a state association, association, joint-stock company;

for formation of centralized financial funds (reserves);

5.4. means of reserve and other funds, transferred within one legal person;

5.5. means received from the budget or from budgets of state non-budgetary funds and used according to their intended purpose, with the exception of means received from the budget or for budgets of the mentioned funds as a payment for goods (works, services), property rights, realized by the payer.

6. Upon realization for foreign currency of:

6.1. goods (works, services), property rights under contracts stipulating settlements in foreign currency to determine the tax base (with the exception of the tax base in the part of contractual value of the leasing object under contracts of financial lease (leasing) stipulating the buy-out of the leasing object), recalculation of the foreign currency in Belarusian rubles shall be effectuated at the official exchange rate of the Belarusian ruble to the relevant foreign currency established by the National Bank on the moment of the actual realization of goods (works, services), property rights;

6.2. goods (works, services), property rights under contracts stipulating settlements in foreign currency on conditions of advance payments, preliminary payments, earnest money to determine the tax base (with the exception of the tax base in the part of contractual value of the leasing object under contracts of financial lease (leasing) stipulating the buy out of the leasing object), recalculation of the foreign currency in Belarusian rubles shall be effectuated at the official exchange rate of the Belarusian ruble to the relevant foreign currency established by the National Bank on:

the date of receipt of the preliminary payments, advance payment, earnest money – in the part of the value of goods (works, services), property rights equal to the sum of advance payments, preliminary payments, earnest money;

the moment of actual realization of goods (works, services), property rights – in the remaining part of the value of goods (works, services), property rights.

7. On contracts in which the sum of obligations is expressed in Belarusian rubles equivalent to a sum in foreign currency at the official rate of the Belarusian ruble to the foreign currency established by the National Bank on the date of  payment, the tax base upon realization of goods (works, services), property rights (with the exception of the tax base in the part of contractual value of the leasing object under contracts of financial lease (leasing) stipulating the buy out of the leasing object):

shall be determined at the official rate established by the National Bank on the moment of actual realization of goods (works, services), property rights – in the instance with the moment of actual realization preceded the date of determining the amount of obligation under the contract;

shall be determined  in the payable sum in Belarusian rubles – in the instance when the date of determining of the amount of obligation under the contract precedes the moment of actual realization or coincides therewith;

shall not be increased (decreased) by a sum of differences received from the January 1, 2018 and arising in connection with the change of the official rate of the Belarusian ruble to the foreign currency established by the National Bank from the moment of actual realization till the moment of determining the amount of the obligation under the contract – in the instance when the moment of actual realization preceded the date of determining the amount of the obligation under the contract.

For the purposes of this clause:

the date of determining the amount of the obligation under the contract is understood the date specified in indent one of part one of this clause, and in the instance of termination of the obligation on other grounds - the date of termination of the obligation (fully or in a corresponding part);

in the event of receipt of payment in Belarusian rubles by parts (termination of obligations in a corresponding part), the sum in foreign currency shall be accepted in the amount based on the equivalent of the which the payment if made (obligation is terminated) in a corresponding part according to the contract;

8. On contracts in which the sum of obligations is expressed in Belarusian rubles equivalent to a sum in foreign currency at the exchange rate of the foreign currency determined by the legislation or an agreement of the parties or on the date of determining the amount of the obligation, different from the rate or the date established in part one of clause 7 of this Article, the tax base upon realization of goods (works, services), property rights (with the exception of the tax base in the part of contractual value of the leasing object under contracts of financial lease (leasing) stipulating the buy out of the leasing object) shall be determined:

in Belarusian rubles at the official rate established by the National Bank on the moment of actual realization of goods (works, services), property rights – in the instance when the moment of actual realization preceded the date of determining the amount of obligation;

in the payable sum in Belarusian rubles – in the instance when the date of determining of the amount of obligation precedes the moment of actual realization or coincides therewith. 

In the instance when the moment of actual realization preceded the date of determining the amount of obligation, the tax base determined in accordance with indent two of part one of this clause:

shall be increased (decreased) by the sum of difference arising between the payable sum in Belarusian rubles and sums of the tax base determined in accordance with indent two of part one of this clause, and differences specified in indent three of this part;

shall not be increased (decreased) by a sum of differences received from the January 1, 2018 and arising in connection with the change of the official rate of the Belarusian ruble to the foreign currency established by the National Bank from the moment of actual realization till the moment of determining the amount of the obligation.

Increase (decrease) of the tax base by the sum of difference arising according to indent two of part two of this clause shall be performed on the date of receiving payment for goods (works, services), property rights, and in the event of termination of the obligation on other grounds – on the date of termination of the obligation (in full or in the respective part).

Decrease of the tax base by the sum of the difference arising according to indent two of part two of this clause shall be performed on the basis of  an additional electronic invoice presented to the buyer, signed by the buyer with the electronic digital signature, if the electronic invoice presented earlier by the seller was signed by the buyer with the electronic digital signature.

If the additional electronic invoice is signed by the buyer with the electronic digital signature not later than the date on which the seller submitted the tax declaration (calculation) on the value added tax for the reporting period, on which falls the date specified in part three of this clause, then the tax base shall be decreased for the mentioned reporting period .

If the additional electronic invoice is signed by the buyer with the electronic digital signature after the seller submitted the tax declaration (calculation) on the value added tax for the reporting period, on which falls the date specified in part three of this clause, then the tax base shall be decreased in the tax declaration (calculation) for the value added tax:

for the reporting period the deadline for submission of which follows the buyer's signing of the additional electronic invoice;

of for the reporting period in which the buyer signed the additional electronic invoice.

With regard to the difference arising according to indent two of part two of this clause in the tax period preceding the tax period in which the additional electronic invoice was signed by the buyer, the seller has the right to make changes in the part of decrease of the tax base in the tax declaration (calculation) for the value added tax  for such preceding tax period.

For the purposes of this clause:

the date of determining the amount of the obligation is understood the date on which, in accordance with the legislation or an agreement of the parties, the payable sum in Belarusian rubles is determined on the obligation expressed in Belarusian rubles in a sum equivalent to a sum in foreign currency;

in the event of receipt of payment in Belarusian rubles by parts (termination of obligations in a corresponding part), the sum in foreign currency shall be accepted in the amount based on the equivalent of the which the payment if made (obligation is terminated) in a corresponding part according to the contract;

9. On contracts in which the sum of obligations is expressed in foreign currency as equivalent to a sum in another foreign currency, the tax base upon realization of goods (works, services), property rights (with the exception of the tax base in the part of contractual value of the leasing object under contracts of financial lease (leasing) stipulating the buy out of the leasing object) shall be determined in Belarusian rubles through recalculation:

of the sum in the other foreign currency at the official rate established by the National Bank on the moment of actual realization of goods (works, services), property rights – in the instance when the moment of actual realization preceded the date of determining the amount of obligation;

of the payable sum in foreign currency at the official rate established by the National Bank on the moment of actual realization of goods (works, services), property rights – in the instance when the date of determining the amount of obligation precedes or coincides with the moment of actual realization. 

In the instance when the moment of actual realization predated the date of determining the amount of obligation, the tax base shall be increased (decreased) by the sum of difference arising between the sum calculated in Belarusian rubles computed through recalculation of the sum payable in foreign currency at the official rate of the National Bank and the sum of tax base in Belarusian rubles determined on the moment of actual realizations of goods (works, services), property rights.

The official rate of the National Bank for recalculation of the payable sum in foreign currency shall be accepted and increase (decrease) of the tax base by the sum of the difference shall be effectuated as of the date of receipt of payment for goods (works, services), property rights, and in the case of termination of the obligation on other grounds – as of the date of termination of obligations (in full or in a corresponding part).

Decrease of the tax base by the seller shall be carried out on the basis of  an additional electronic invoice presented to the buyer, signed by the buyer with the electronic digital signature, if the electronic invoice presented earlier by the seller was signed by the buyer with the electronic digital signature.

If the additional electronic invoice is signed by the buyer with the electronic digital signature not later than the date on which the seller submitted the tax declaration (calculation) on the value added tax for the reporting period, on which falls the date specified in part three of this clause, then the tax base shall be decreased for the mentioned reporting period .

If the additional electronic invoice is signed by the buyer with the electronic digital signature after the seller submitted the tax declaration (calculation) on the value added tax for the reporting period, on which falls the date specified in part three of this clause, then the tax base shall be decreased in the tax declaration (calculation) for the value added tax:

for the reporting period the deadline for submission of which follows the buyer's signing of the additional electronic invoice;

of for the reporting period in which the buyer signed the additional electronic invoice.

With regard to the difference arising according to part two of this clause in the tax period preceding the tax period in which the additional electronic invoice was signed by the buyer, the seller has the right to make changes in the part of decrease of the tax base in the tax declaration (calculation) for the value added tax  for such preceding tax period.

For the purposes of this clause:

the date of determining the amount of the obligation is understood the date on which, in accordance with the legislation or an agreement of the parties, the payable sum in foreign currency shall be determined on the obligation under the contract expressed in foreign currency as a sum equivalent to a sum in another foreign currency;

in the event of receipt of payment in foreign currency by parts (termination of obligations in a corresponding part), the sum in another foreign currency shall be accepted in the amount based on the equivalent of the which the payment if made (obligation is terminated) in a corresponding part according to the contract;

10. The tax base upon transfer by the lessor of the financial lease (leasing) object to the lessee is determined as the sum of leasing payments.

Upon buy out of the leasing object by the lessee, the tax base shall be increased by the sum of the buy-out value of the leasing object.

Under contracts of financial lease (leasing) providing for the buy-out of the leasing item which is a vehicle according to Appendix 25 and acquired without the value added tax by the lessor from natural persons, including those being individual entrepreneurs, in the territory of the Republic of Belarus, the tax base in terms of the contract value of such leased asset:

is determined as the difference between its contract value with the value added tax and the investment expenses of the lessor for the acquisition of such a vehicle intended for subsequent transfer as a leasing item;

determined in accordance with the order established by this part, is not adjusted in the event of an early termination at the request of one of the parties to the contract of financial lease (leasing) that has not been completed by the buy-out of the leasing item.

Under contracts of financial lease (leasing) stipulating the buy-out of the leasing object, in which the amount of obligations is expressed in foreign currency (in Belarusian rubles equivalent to a sum in foreign currency or in foreign currency equivalent to a sum in another foreign currency):

to determine the tax base in terms of the contract value of the leasing object , the recalculation of foreign currency (another foreign currency) in Belarusian rubles shall be made upon occurrence of  the moment of actual realization at the official exchange rate of the Belarusian ruble to the corresponding foreign currency (another foreign currency) established by the National Bank as of the date of actual transfer of the leasing object to the lessee;

The tax base in terms of the remuneration (income) of the lessor and the investment expenses of the lessor, with the exception of investment expenses reimbursed in the value of the leasing object, shall be determined in the order established by clauses 6–9 of this Article.

Upon taxation by the payer of turnovers on reimbursement in accordance with sub-clause 9.3 of clause 9 of Article 122 of this Code, the tax base:

of the lessor shall include the value of works (services) related to the financial lease (leasing) acquired by the lessor, not included in the sum of the leasing payment, to be reimbursed by the lessee;

of the lessee shall include the value of works (services) related to the financial lease (leasing), acquired by the lessee, to be reimbursed by the lessor.

11. The tax base upon transfer of the lease object by the lessor to the lessee is determined as the sum of rentals.

Upon buy-out of the lease object by the lessee, the tax base shall include the sum of the buy-out price of the lease object.

Upon taxation by the payer of turnovers on reimbursement in accordance with sub-clause 9.3 of clause 9 of Article 122 of this Code, the tax base:

of the lessor shall include the value of works (services) related to the lease, acquired by the lessor, not included in the sum of the lease payment, to be reimbursed by the lessee;

of the lessee shall include the value of works (services) related to the lease, acquired by the lessee, to be reimbursed by the lessor.

12. The tax base upon providing of the property by the lender to the borrower into gratuitous use is determined as:

sums of posted depreciation, land tax or lease payment for the land plot, tax on immovable property, reimbursable to the lender (unless the duty on their reimbursement to the lender is provided by acts of the President of the Republic of Belarus);

value of expenses on maintenance of the property and/or other expenses related to the property, reimbursable to the lender (including expenses on operation, repairs of the property, costs on communal services), with the exception of the value of works (services) related to the property, acquired by the lender, and expenses specified in indent two of this part.

Upon taxation by the payer of turnovers on reimbursement in accordance with sub-clause 9.3 of clause 9 of Article 122 of this Code, the tax base of the lender shall include the value reimbursable by the borrower:

of works (services) on maintaining the property, acquired by the lender;

other works (services) related to the property, acquired by the lender, including expenses on operation, repairs of the property, costs on communal services.

13. When fixed assets and intangible assets, certain items included in current assets and property accounted as part of non-circulating assets are realized at the price that is less than the depreciable value, when goods or property rights acquired from other persons are realized at prices less than the purchasing price, the tax base is determined based on their purchasing price.

When goods (works, services) of own production, property rights are realized at prices that are less than their primary costs, the tax base is determined based on the realization price of such goods (works, services), property rights.

14. When goods (works, services), property rights, manufactured (executed, rendered) by the payer are transferred gratuitously, the tax base is determined based on the prime cost of such goods (works, services), property rights. When acquired goods are transferred gratuitously, the tax base is determined based on their purchasing price.

When fixed assets and intangible assets, certain items included in current assets and property accounted as part of non-circulating assets, are transferred gratuitously, the tax base is determined based on their depreciable value.

Residual value and purchasing price are accepted on the date of gratuitous transfer with regard to re-evaluation (write-downs) carried out in accordance with the legislation.

15. Upon other retirement of goods in duty-free shops, placed under the customs procedure of duty-free trade, the tax base is determined based on their purchasing price without regard to the valued added tax.

16. The tax base upon transfer of property rights is determined having regard to the following:

16.1. upon assignment by the primary creditor of the right of claim, arising out of contracts aimed at realizations of goods (works, services), property rights, the tax base is determined as the sum of excess of the obligation amount under such contracts;

16.2. upon assignment of the right of claim by the new creditor that received the monetary claim arising out of a contract aimed at realization of goods (works, services), property rights, the tax base is determined as the sum of excess of the profit received by the new creditor upon the subsequent assignment of the right of claim or upon termination of the respective obligation over the expenses on acquiring of the indicated claim;

16.3. upon transfer of property rights by payers, including participants of shared construction, to immovable property objects, stakes in the ownership to immovable property objects, garages and spaces in parking areas, the tax base is determined as the positive difference between the value at which the property rights (stakes in the ownership) are being transferred taking into account the value added tax and expenses for acquiring of the said rights (stakes in the ownership) taking into account the value added tax;

16.4. upon acquiring a monetary claim from third persons, the tax base is determined as the sum of excess of the profit received from the debtor and/or upon its subsequent assignment over the expenses for acquiring of this claim;

16.5. upon transfer of property rights connected with the right to conclude a contract, the tax base is determined as the value of such right without inclusion of the value added tax.

17. The tax base upon realization of goods (works, services), property rights on forward transactions stipulating supply of goods or property rights, execution of works, rendering of services upon expiry of a time limit established by the contract at the price indicated directly in this contract is determined based on the price of goods (works, services), property rights indicated directly in the contract, increased by the value of respective forward and futures contracts, options and other financial instruments of forward transactions.

18. The tax base upon realization of an enterprise as a whole property complex is determined separately for each type of property of this enterprise.

In the event when the value at which the enterprise as a whole property complex is realized below (above) the book value of realized property, in order to determine the tax base for the value added tax for each type of property, a correction coefficient is used which is calculated as ratio of the realization value of the enterprise to the book value of property included in the composition of this enterprise.

19. [Excluded]

20. The tax base upon realization at fixed retail prices that include the value added tax:

acquired (imported) goods shall be determined as  a positive difference between the realization price and the acquisition price of those goods. In doing so acquisition prices and realization prices shall be determined with account of the value added tax;

of manufactured goods shall be determined as the value of those goods, computed based on fixed retail prices, including the value added tax.

Provisions of indent two of part one of this clause are not applied upon realization of acquired (imported) goods the computation of the value added tax on which is effectuated in accordance with clause 5 of Article 128 of this Code.

Provisions of part one of this clause shall also apply upon realization of goods at fixed retail prices the without value added tax if the turnovers on realization of such goods are exempted from the value added tax in accordance with the legislation.

21. For goods realized on free and regulated retail (fixed) prices by the payers carrying out retail trade and public catering and receiving income on those goods as a difference in prices, marks-on, charges, and computing the value added tax in accordance with clause 5 of Article 128 of this Code, the tax base shall be the value of realized goods (with account of all taxes, dues (duties) and other payments to the budget or budgets of the state non-budgetary funds, collected upon realization of goods).

22. The tax base upon realization of purchased vouchers for sanatorium-resort treatment and rehabilitation of the population, forms of labour books and/or inserts for them shall be determined as a positive difference between the realization price and the acquisition price of those vouchers, forms. In doing so purchasing prices and realization prices are determined with account of the value added tax.

23. The tax base upon shipment (return) of tare that is recognized as returnable tare according  to sub-clause 1.1.7 of clause 1 of Article 115 of this Code, shall be determined:

by the seller of the goods as the value of such tare upon its shipment to the buyer of the goods;

by the buyer of the goods as the value of such tare upon its return to the seller of the goods.

24. The tax base upon transfer of goods under a loan contract in kind shall be determined as the value of goods being transferred stipulated by the contract, in the absence of the value in the contract – as the value indicated in goods accompanying documents, and in the absence of the value in the contract and goods accompanying documents – as the value of goods reflected in accounting.

25. The tax base on operations on granting micro loans by commercial organizations included in the register of micro financial organizations to natural persons against the pledge of movable property intended for personal, family or household use shall be determined as the sum of incomes (interest and other incomes) related to granting of such loans.

26. The tax base upon realization of works on manufacturing of goods from give-and-take raw materials (materials) shall be determined as costs of working, processing or another transformation of the mentioned raw materials (materials) without inclusion of the value added tax.

Sum of excises computed (subject to computation) by the payer that produces excisable goods from give-and-take raw materials is not included in the price (tariff) of works on production of excisable goods from give-and-take raw materials

When there are turnovers on realization of works on manufacturing from give-and-take raw materials (materials) realized by their owner to different states (including the Republic of Belarus), the tax base for application of respective tax rates of the value added tax is determined proportionally to the amount (quantity) of shipped goods.

27. The tax base upon the contract-based  manufacturing of tobacco products shall be determined at the option of the manufacturing organization in one of the following orders:

as the costs of works on production of the indicated tobacco articles with account of the value of materials of the manufacturing organization, including excise sums computed by the manufacturing organization of tobacco articles, without inclusion of the value added tax;

in order established by clause 26 of this Article.

The procedure for determining the tax base  chosen by the organization – producer shall be reflected in its accounting policy and is not subject to change during the current tax period.

28. The tax base upon realization of products made of precious metals and precious stones shall be determined as the value of products taking into account the value of precious metals and precious stones utilized in the production.

29. The tax base upon intermediary activity shall be determined as the sum received (to be received) as remunerations under contracts of commission, agency, and other similar civil-law contracts.

30. The tax base concerning freight forwarding services is determined as the sum received (to be received) as forwarding agent remuneration under the forwarding servicing contract.

The remuneration shall be determined as the sum received (to be received) from the customer for services rendered to him less means, reimbursable by the customer, remitted (to be remitted) to carriers and other organizations and individual entrepreneurs rendering services indicated in the forwarding contract.

Provisions of this clause cover also the instances when in accordance with the forwarding contract, the forwarding agent's duties are fulfilled by the carrier.

31. The tax base, upon realization of services on trust management of property, rendered to the trustor (beneficiary), shall be determined by the trustee as the sum of remuneration received (due to be received) by the latter under the contract of trust management of property.

The tax base, when goods (works, services), property rights are realized in the course of trust management of property under a contract on trust management of property in the interests of the trustor or a person indicated by him (beneficiary), is determined by the trustee having regard to specific features established by this Article.

32. The tax base, upon realization by general contractors of construction and designing works performed with participation of sub-contractors shall be determined as the value of works according to the contract concluded between the ordering customer and the general contractor.

33. The tax base upon construction of objects that later do not come into ownership (use) of the ordering customer (builder) shall be determined:

33.1. when conducting construction at the expense of means of the republican and/or local budgets – as the value of services of the ordering customer (builder) determined based on the volume of means provided for maintenance of the ordering customer (builder) by the design and estimate documentation for construction of the object with account of the value added tax;

33.2.when conducting construction in the interests of third parties (including interestholders):

33.2.1. in the order established by the President of the Republic of Belarus – as the value of services of the ordering customer (builder) determined based on the volume of means provided for maintenance of the ordering customer (builder) by the design and estimate documentation for construction of the object with account of the value added tax and calculated proportionally to the share of the interestholder in the construction of the object and the sum of profit of the ordering customer (builder) stipulated by the contract of shared construction.

In that instance, the sum of the advantage of the ordering customer (builder) formed as a result of excess of the price of the shared construction object (minus the cost of the services of the ordering customer (builder), determined according to part one of this sub-clause, and the profit of the ordering customer (builder) provided for by the contract of shared construction) over the actual costs for construction:

is included in the tax base for value added tax as the value of services of the ordering customer (builder), if the contract of shared construction determines the inclusion of such sum in the value of services of the ordering customer (builder);

increases the tax base for value added tax in accordance with sub-clause 4.1 of clause 4 of this Article if the contract of shared construction does not determine inclusion of such sum in the value of services of the ordering customer (builder);

33.2.2. in other instances – as remuneration determined as a difference between the sum of means with account of the value added tax to be received under the contract with a third person (including the interestholder) and the sum of actually incurred costs with account of the value added tax on construction of the object falling on the share of the third person (including the interestholder), but not less than the value of services of the ordering customer (builder) determined based on the volume of means provided for maintenance of the ordering customer (builder) by the design and estimate documentation for construction of the object with account of the value added tax and calculated proportionally to the share of the interestholder in the construction of the object;

33.2.3. with the use of goods (works, services) produced (executed, rendered) by the ordering customer’s (builder's) own resources — as the value of such goods (works, services) included in the construction cost (price of the contract of shared construction).

34. When the tax base for services of international communications is determined, the sums received by communication organizations from realization of the mentioned services to foreign communications operators, designated postal service operators, companies or recognized operating organizations are not taken into account.

35. The tax base concerning carriage carried out by the State Association "The Belarusian Railway" is determined without account of settlements between legal persons included in the consolidated balance sheet of main activity of the State Association "The Belarusian Railway".

36. Upon realization of services on carriage of passengers by all kinds of transport in regular traffic at tariffs regulated by the legislation, concerning which reimbursement of a part of costs on rendering of such services (including granting privileges on travel to certain categories of citizens in accordance with the legislation) is made at the expense of subsidies, the tax base is determined as the value of those services without account of subsidies being provided for reimbursement of the mentioned costs.

37. When printed mass media are realized by subscription by legal persons on which functions of editorial boards of printed mass media are imposed, the tax base is determined as the subscription value of the size of circulation of these printed mass media less the sums remaining in the accounts:

of communication organizations as payment for communication services rendered by them according to established tariffs when printed mass media are being realized by subscription, for services on making subscription and handing out of printed mass media through the trading network of these organizations;

of organizations engaged in the process of realizations of printed mass media by subscription as payment for their expenses.

38. Tax base upon transfer of goods (works, services), property rights within one legal person, under which computation and payment of the value added tax (exemption from the taxation is applied) shall be performed in accordance with part two of sub-clause 2.9 of clause 2 of Article 115 of this Code shall be determined as the value of goods (works, services), property rights being transferred specified in the primary accounting documents without inclusion therein of the value added tax.

In the event of decrease (increase) of the value of goods (works, services), property rights, specified in part one of this clause, upon expiration of the reporting period in which the goods (works, services), property rights have been transferred (performed, rendered) within one legal person, the tax base shall be decreased (increased) by the sum of a difference arising between the changed and the previous value of the transferred goods (works, services), property rights in the reporting period in which the value of earlier transferred goods (works, services), property rights has been decreased (increased).

Decrease of the tax base by shall be carried out on the basis of  an additional electronic invoice presented to the receiving party, signed by the receiving party with the electronic digital signature, if the electronic invoice presented earlier by the transmitting party was signed by the receiving party  with the electronic digital signature.

Reflection in the tax declaration (calculation) for the value-added tax of the sum of the decrease of the tax base in relation to the date of signing by the receiving party with an electronic digital signature of an additional (corrected) electronic invoice presented by the transmitting party , shall be effectuated in the order similar to the order established by clause 4 of Article 129 of this Code.

39. When goods (works, services), property rights are realized in the territory of the Republic of Belarus by foreign organizations not put on record in the tax bodies of the Republic of Belarus, including on the basis of contracts of commission, agency, and other similar civil-law contracts, with organizations and individual entrepreneurs put on record in the tax bodies of the Republic of Belarus, the tax base is determined as the value of these goods (works, services), property rights.

The tax base shall be determined separately when performing each operation on realization of goods (works, services), property rights in the territory of the Republic of Belarus having regard to provisions of this chapter and shall be increased by the sums specified in clause 4 of this Article.

The tax base is determined by organizations and individual entrepreneurs put on record in the tax bodies of the Republic of Belarus and acquiring in the territory of the Republic of Belarus goods (works, services), property rights from foreign organizations not put on record in the tax bodies of the Republic of Belarus, and when goods (works, services), property rights are realized in the territory of the Republic of Belarus by foreign organizations not put on record in the tax bodies of the Republic of Belarus on the basis of contracts of commission, agency, and other similar civil-law contracts – by organizations and individual entrepreneurs put on record in the tax bodies of the Republic of Belarus that carry out entrepreneurial activity on the basis of such contracts concluded with the indicated foreign organizations.

When goods (works, services), property rights are realized in the territory of the Republic of Belarus by foreign organizations not put on record in the tax bodies of the Republic of Belarus, the tax base is recognized to equal to zero, if upon importation of these goods into the territory of the Republic of Belarus the value added tax has been paid, with the exception of the value added tax paid upon placement of goods under the customs procedure of temporary importation (acceptance).

40. The tax base for the realization by organizations and individual entrepreneurs of  vehicles according to Annex 25, purchased by them without the value added tax from natural persons (including those being individual entrepreneurs) in the territory of the Republic of Belarus is determined as the difference between the realization price with account of the value added tax and the purchase price of those vehicles.

Article 121. Determination of the moment of actual realization of goods (works, services), property rights

1. The moment of actual realization of goods (works, services), property rights is determined as the day, falling within the reporting period, of shipment of goods (execution of works, rendering of services), transfer of property rights, irrespective of the day of performing settlements on them, unless otherwise established by this Chapter.

2. The day of shipment of goods is recognized:

the date of their release to the buyer (recipient or organization (individual entrepreneur) carrying out the carriage (forwarding) of goods, or communication organization), unless the seller carries out delivery (transportation) of goods or bears costs on their delivery (transportation);

the date determined in accordance with the accounting policy of the organization (decision of the individual entrepreneur), but not later than the date of beginning of their transportation – in other instances.

3. Upon realization of goods at retail prices in retail trade and/or public catering using cash equipment, carried out during a shift starting on one calendar day and ending on another calendar day, the date of shipment of goods realized on the other calendar day shall be the opening date of that shift, reflected in the daily (shift) report (Z-report), being formed by such cash equipment.

4. The day of shipment of tare that is recognized as returnable tare according  to sub-clause 1.1.7 of clause 1 of Article 115 of this Code, shall be recognized:

by the seller of the good – the date of its shipment to the buyer of the good to be determined according to clause 2 of this Article;

by the buyer of the good – the date of its return to the seller of the good to be determined according to clause 2 of this Article;

5. When goods are transferred within the framework of a loan contract in kind, the moment of their actual realization is recognized:

by the lender – the date of their shipment to the borrower to be determined according to clause 2 of this Article;

by the borrower – the date of their return to the lender to be determined according to clause 2 of this Article.

6. The day of performance of works (rendering of services), unless otherwise established by this Article, is recognized the date of transfer of performed works (rendered services) in accordance with:

formalized primary accounting documents (acceptance delivery statements or other similar documents);

other documents if in accordance with legislation the primary accounting documents are not formalized.

When providing a service, the results of which the customer can use as it is performed during the validity period of the contract concluded by the contractor and the customer in written form, the day of service rendering is recognized:

the last calendar day of each month of the rendering of the service and the last day of the rendering of the service if the validity period of the contract exceeds one month;

the last calendar day of the month of commencement of the rendering of the service and/or the day of termination of the rendering of the service unless the validity period of the contract exceeds one month.

When executing work (stage of work), rendering of the service (stage of service), the result of which cannot be used by the customer until the completion of the performance of the work (stage of work), rendering of the service (stage of service), the day of performance of the work (stage of work), rendering of the service (stage of service) shall be recognized:

the day of completion of the execution of the work (stage of work), rendering of the service (stage of service) indicated in the primary accounting document, if the indication of that date in the primary accounting document is stipulated by the contract concluded by the contractor (performer) and the customer in written form;

the day of completion of the acceptance of the work (stage of work), of the service (stage of service) indicated in the primary accounting document, if the indication of that date in the primary accounting document is stipulated by the contract concluded by the contractor (performer) and the customer in written form;

the date of drawing up the primary accounting document – in the instances not specified in indents two and three of this part.

7. The day of execution of construction, research and development, design and experiment, technology-testing (technology) works shall be recognized the last day of the month of execution of works. When the receiving party does not sign statements of work completion, services rendering for the reporting month till the 10th day (inclusively) of the month following the reporting one, the day of execution of construction, research and development, design and experiment, technology-testing (technology) works is recognized  the day of signing statements of work completion by the receiving party.

The day of construction works, the cost of which in accordance with the legislation is expressed in foreign currency, performed in the month of acceptance of the construction object in operation, shall be recognized the day of signing of the act by the receiving party, if this day precedes the day of approval of the act of acceptance of the construction object in operation.

8. The day of transfer of property rights at the option of the payer shall be recognized:

either the last calendar day of each month to which the transfer of the property right relates, and if the transfer of property rights is completed before the end of the month - the last day of such transfer;

or the day of transfer of the property right, formalized by the primary accounting document.

9. When a leasing object is being transferred into financial lease (leasing), the day of transferring shall be recognized:

in terms of the payment made by the lessee prior to the commencement of the term of temporary possession and use of the leasing object, the day of the actual transfer of the leasing object to the lessee. This provision applies if the entire sum of the mentioned payment is recognized in accordance with the contract of financial lease (leasing) as the first lease payment;

in terms of leasing payments, the last day of each month to which the lease payment relates on such transfer, but not earlier than the date of the actual transfer of the leasing object to the lessee;

in terms of redemption value, if the contract of financial lease (leasing) stipulates the redemption of the leasing object, - the date of repayment of the redemption value, established by the contract of financial leasing (leasing).

10. When a lease object is being transferred into lease, the day of transfer shall be recognized the last day of the month to which the rent for such a lease relates (but not earlier than the date of the actual transfer of the lease object to the lessee), unless the lease period exceeds one month.

In the event if the specific period to which the rent relates exceeds one calendar month and/or the contract does not establish a specific period to which the rent relates, the moment of putting the object into lease shall be recognized:

the last day of each month in the course of the lease period established by the contract;

the day of completion of the lease period falling on the last month of the lease period established by the contract (if the lease period does not end on the last day of the last month of the lease period).

11. Upon transfer of property into gratuitous use, the day of transfer shall be recognized the last day of each month to which relate the expenses on maintenance property and/or other expenses connected with the property presented to the borrower for reimbursement.

12. The day of shipment of goods (execution of works, rendering of services), transfer of property rights by their owner or rightholder on the basis of contracts of commission, agency, and other similar civil-law contracts shall be recognized at the option of the payer one the following dates:

the date of shipment of goods (execution of works, rendering of services), transfer of property rights by their owner or rightholder to the commissioner, agent or other similar person;

the date of shipment of goods (execution of works, rendering of services), transfer of property rights by the commissioner, agent or other similar person to the buyer or customer, having regard to provisions of clause two of this Article.

The procedure chosen by the payer of determining the day of shipment, (execution of works, rendering of services), transfer of property rights shall be indicated in the accounting policy of the organizations (decision of the individual entrepreneur) and is not subject to be changed in the course of the current tax period.

13. The day of rendering of tourist services shall be recognized the last day of the tour.

14. The day of rendering of sanatorium and rehabilitation services provided by sanatorium and rehabilitation organizations (structural divisions thereof) shall be recognized at their option one of the following days:

the last day of validity period of the pass;

the last day of the reporting period in which the validity of the pass started (in the part of days of its validity falling on that reporting period) and the last day of the validity period of the pass (in the part of days of validity of the pass falling on the reporting period in which its validity ends).

The procedure chosen by the organization for determining the day of rendering such services  shall be indicated in the accounting policy of the organizations and is not subject to be changed in the course of the current tax period.

15. The day of rendering of services when passengers, luggage (cargo-luggage), post are carried by public transport is recognized the day of formalizing travel (transit) documents to passengers, owner of luggage (cargo-luggage), post or the day of beginning of carriage of passengers, luggage (cargo-luggage), post.

The day of rendering services on carriage of cargo by railway transport shall be recognized:

the date of delivery of the goods to the consignee upon carriage in inter-country communication and transportation from outside the Republic of Belarus;

the date of transfer of cargo to railway transport organizations of general use of foreign countries upon carriage outside the Republic of Belarus or in transit through its territory.

16. The day of rendering services upon carriage of cargo by motor road transport on one request of the customer, under one contract, order-instruction or another similar document (on one order to the forwarding agent - if the carrier also performs the functions of the forwarding agent) with delivery of  the cargo in:

16.1. one place of unloading, shall be recognized the date of receipt of the cargo by the consignee or other person authorized to receive the cargo;

16.2. several places of unloading, shall be recognized the date of receipt of the cargo by the consignee or other person authorized to receive the cargo in the last (final) place of unloading.

17. The day of rendering of communication services is recognized the last day of the month of rendering of communication services.

18. The day of rendering services on transportation of gas and oil is recognized the last day of the month of rendering services.

19. The day of rendering services in the sphere of education, when the period of learning is more than thirty calendar days, shall be recognized the last day of each month of rendering such services, and if the rendering of services terminates prior to the end of the month – the last day of rendering services.

20. The day of rendering medical services, when the period of medical observation and providing medical assistance to the patient in the health care organization is more than thirty calendar days, shall be recognized the last day of each month of rendering such services, and if the rendering of services terminates prior to the end of the month – the last day of rendering services.

21. In case of gratuitous transfer of goods (works, services), property rights, the moment of their actual realization shall be recognized, accordingly:

the date of shipment of goods to be determined according to clause 2 of this Article;

the date of performance of works (rendering of services), transfer of property rights, to be determined in accordance with this Article.

Upon exchange of goods (works, services), property rights, the moment of their actual realization shall be recognized the day of exchange. The day of exchange shall be recognized the day of performing of each shipment of the good (execution of work, rendering of service), transfer of property right, to be determined in accordance with this Article.

Upon in-kind remuneration of labor with goods (work, services), the moment of their actual realization shall be the day of payment.

22. The moment of the actual realization of natural and compressed gas, electric and thermal energy shall be recognized, at the payer’s option, one of the following dates:

falling within the reporting period, of crediting monetary means from their buyer to the account of the payer;

the day to be determined under the procedure established, accordingly, by clauses 2 and 6 of this Article.

The procedure chosen by the payer of determining the moment of actual realization shall be indicated in the accounting policy of the organizations and is not subject to be changed in the course of the current tax period.

Provisions of this clause cover also sums received as sanctions for breach of contract conditions by buyers (ordering consumers).

23. The moment of actual realization or works upon contract-based production of tobacco articles is recognized the day of shipment (transfer) of tobacco articles to the ordering consumer and/or other persons, to be determined according to clause 2 of this Article.

24. The moment of actual realization of works on manufacturing from give-and-take raw materials (materials) for non-residents of the Republic of Belarus is recognized the day of shipment (transfer) of goods manufactured from give-and-take raw materials (materials), to be determined according to clause 2 of this Article.

25. The moment of actual realization when the object of pledge is transferred by the pledgor to the pledgeholder is recognized the day of transfer of the object of pledge to the pledgeholder (creditor) upon non-fulfillment or improper fulfillment of the obligation secured by the pledge, to be determined according to clause 2 of this Article.

26. The moment of actual realization upon other retirement of goods in duty-free shops, placed under the customs procedure of duty-free trade, is recognized the day of drawing up a collation statement or another document confirming their other retirement.

27. The moment of actual realization for operations on granting micro loans by commercial organizations included in the register of micro financial organizations to natural persons against the pledge of movable property intended for personal, family or household use is recognized the day of issuance of the pledge ticket and in the event of extending loan period – the date of extension of the loan period indicated in the pledge ticket.

28. The moment of actual realization in relation to sums:

28.1. of the difference arising in accordance with indent two of part two of clause 8 and part two of clause 9 of Article 120 of this Code shall be recognized as the day of its receipt;

28.2. increasing the tax base in accordance with clause 4 of Article 120 of this Code, shall be recognized, at the payer's option (with the exception of banks), one of the following days:

the day of their receipt;

the day of reflection of those sums in the accounting.

The procedure chosen by the payer (with the exception of banks) of determining the moment of actual realization shall be indicated in the accounting policy of the organizations and is not subject to be changed in the course of the current tax period;

28.3. increasing the tax base in accordance with clause 4 of Article 120 of this Code, shall be recognized the day of reflection in the accounting of those sums.

29. The moment of actual realization of goods (works, services), property rights in territory of the Republic of Belarus by foreign organizations not put on record in the tax bodies of the Republic of Belarus is recognized, with the exception of the instance established by part two of this clause, the day of payment, including the advance payment, or the day of another termination of obligation by buyers (ordering consumers) of these goods (works, services), property rights. This provision also applies in relation to the sums of increase in the tax base, determined in accordance with clause 39 of Article 120 of this Code.

The moment of actual realization of goods (works, services), property rights in territory of the Republic of Belarus by foreign organizations not put on record in the tax bodies of the Republic of Belarus on the basis of contracts of commission, agency or other similar civil-law contracts with organizations and individual entrepreneurs put on record in the tax bodies of the Republic of Belarus is recognized the day of shipment of goods (execution of works, rendering of services), transfer of property rights to buyers (ordering consumers) of these goods (works, services), property rights, irrespective of the date of performing settlements on them. This provision is also applied by payers indicated in clause 4 of Article 114 of this Code.

For the purposes of this clause, the deduction of taxes sums by the buyer (ordering consumer) recognized a tax agent in the Republic of Belarus does not constitute the termination of obligations before a foreign organization not put on record in the tax bodies of the Republic of Belarus.

Article 122. Rates of value added tax

1. The rate of the  value added tax in the amount of zero (0) percent is established upon:

1.1.  realization of goods placed under the customs procedure of export, subject to documentary confirmation of the actual exportation of goods outside the territory of the Republic of Belarus in the order established by Article 123 of this Code;

1.2. realization of goods taken out (without the commitment to return importation into the territory of the Republic of Belarus) to the member states of the Eurasian Economic Union (including goods exported under contracts of international leasing, loan contracts, contract, contract for manufacturing of goods), subject to documentary confirmation of the actual exportation of goods outside the territory of the Republic of Belarus in the order established by Article 124 of this Code;

1.3.  realization of works being exported on production of goods from give-and-take raw materials (materials), subject to documentary confirmation of the actual exportation of goods outside the territory of the Republic of Belarus in the order established by Article 125 of this Code.

Works being exported on production of goods from give-and-take raw materials (materials), levied with the value added tax in the amount of zero (0) percent, include works on production of goods from from give-and-take raw materials (materials) performed by the payer by own forces (in full or in part) for a foreign organization and natural person;

1.4. realization of works (services) on accompanying, loading, re-loading, and other similar works (services) directly connected with the realization of goods indicated in sub-clauses 1.1 and 1.2 of this clause.

Works (services) specified in part one of this sub-clause include works (services):

on accompanying goods, including services on protection;

on loading, unloading, re-loading (except for pipeline transport) of goods;

on storage of goods;

of customs representatives;

1.5. realization of exportable of transport services, including transit carriage;

1.6. realization of works (services) being executed for foreign organizations or natural persons on:

repair, modernization, re-equipment, maintenance of aircraft and their components (including verification and fault detection);

repair, modernization, re-equipping of railroad rolling-stock units;

1.7. realization of works (services) being performed (rendered) by the State Association “Belarusian Railway” to organizations of public railway transport of foreign states on:

providing in use of freight cars, containers,  bogies, refrigerated cars;

putting of passenger cars on wheel sets of another gauge;

operation of traction railway rolling stock and locomotive crews.

For the purposes of this sub-clause, traction railway rolling stock is a set of types of railway rolling stock that has traction properties for the transportation process and includes locomotives (diesel locomotive, electric locomotive) and multiple unit rolling stock (electric trains, diesel trains);

1.8. realization of services rendered directly at airports of the Republic of Belarus and in the airspace of the Republic of Belarus on servicing, including air navigation services, of aircraft carrying out carrying out international flights and/or international air carriage according to the list of such services approved by the Council of Ministers of the Republic of Belarus;

1.9. realization of bunker fuel for refuelling of aircraft of foreign air companies carrying out international flights and/or international air carriage.

For the purposes of this sub-clause:

bunker fuel is recognized the fuel used for refuelling of aircraft;

foreign air company is recognized the air company of a foreign state, including a member state of the Eurasian Economic Union;

1.10 realization of goods of own production to the owner of a duty-free shop for their subsequent realization:

in duty-free shops;

on board aircraft as supplies being exported from the customs territory of the Eurasian Economic Union.

Fur purposes of this sub-clause, goods of own production are deemed to be goods the date of shipment of which falls within the period of validity of the certificate of own production, issued to the payers under the procedure established by the legislation and stating that the goods belong to products of own production.

Provisions of this sub-clause do not cover the realization of goods to the owner of a duty-free shop under contracts of commission, agency, and other similar civil-law contracts;

1.11. realization of goods in retail trade through shops to natural persons not having a permanent residence in a member state of the Eurasian Economic Union (later on in this sub-clause and Article 144 of this Code – foreign persons), in the event of exportation of goods by foreign persons outside the customs territory of the Eurasian Economic Union within three months from the day of acquisition of goods.

The confirmation of permanent resident of a foreign person outside the territory of states – members of the Eurasian Economic Union is a valid passport or another document substituting it, intended for exit abroad and issued by a respective body of the state of nationality or of habitual residence of the foreign person or by an international organizations (later on – exit travel document).

Foreign persons having nationality of two and more states are considered in the Republic of Belarus to be nationals of the state on the exit travel documents of which they have entered the Republic of Belarus.

The rate of the value added tax in the amount of zero (0) percent on goods specified in part one of this sub-clause may be applied by the payers subject to observance of all following conditions:

goods are realized in retail trade to foreign persons through shops;

upon availability of documentary confirmation of the exportation of goods by foreign persons outside the customs territory of the Eurasian Economic Union, obtained in accordance with part four of clause 4 of article 144 of this  Code within 12 months from the day of realization of the good to the foreign person. The register of documentary confirmations of exportation of goods outside the customs territory of the Eurasian Economic Union shall be submitted according to the established form simultaneously with the tax declaration (calculation) on the value added tax, in which indicated the turnover on realization of goods to foreign persons at the rate in the amount of zero (0) percent;

upon availability of a contract on rendering services on refund of the value added tax to foreign persons, concluded with organizations having the right to return the value added tax to foreign persons.

For the purposes of this sub-clause and Article 144 of this Code, an organization having the right to refund value-added tax to foreign persons is an organization included in the list of such organizations, determined by the Council of Ministers of the Republic of Belarus, and meeting the requirements established by the Council of Ministers of the Republic of Belarus.

If the payer that realized in retail trade to a foreign person goods through shops, prior to submission of the tax declaration (calculation) on the value added tax for the reporting period in which the good has been realized does not possess documentary confirmation of exportation of goods by the foreign person outside the customs territory of the Eurasian Economic Union, then the turnover on realization of such good is not subject to be indicated in the tax declaration (calculation) on the value added tax with application of the rate of the value added tax, established by clause of 3 of this Article without application of specific features for calculation of the value added tax established by clause 5 of article 128 of this Code.

When the payer receives documentary confirmation of exportation of goods by the foreign person outside the customs territory of the Eurasian Economic Union after having indicated the turnover on realization of such good in the tax declaration (calculation) on the value added tax, the turnover on realization of the good indicated in part one of this sub-clause with application of the rate of the value added tax in the amount of zero (0) percent is indicated (along with concurrent decrease of the turnovers on these goods) in the tax declaration (calculation) for the value added tax of the reporting period the deadline for presentation of which follows the receipt of the respective documentary confirmation of exportation by the foreign person of the good outside the customs territory of the Eurasian Economic Union or of the reporting period in which it was obtained.

1.12. realization of works (services) on repairs, technical maintenance of vehicles registered in foreign states, being performed in the territory of the Republic of Belarus by authorized servicing centers for foreign organizations or natural persons, with the exception of citizens of the Republic of Belarus.

Provisions of this sub-clause are applied to works (services) performed (rendered) from January 1, 2015;

1.13. increase of the tax base upon realization of goods (works, services) specified in sub-clause 1.1 – 1.12 of this clause by sums specified in clause 4, indent two of part two of clause 8 and part two of clause 9 of Article 120 of this Code.

2. The rate of the  value added tax in the amount of ten (10) percent is established upon:

2.1. realization of goods produced in the territory of the Republic of Belarus, as well as upon importation and/or realization in the territory of the Republic of Belarus of goods produced in the territory of the member states of the Eurasian Economic Union:

produce of crop husbandry (with the exception of floriculture, growing of ornamental plants);

wild-growing berries, nuts, and other fruits, mushrooms, other wild-growing produce;

produce of apiculture;

produce of animal husbandry (with the exception of furs);

produce of fish husbandry;

2.2. importation of goods into the territory of the Republic of Belarus and/or realization of foodstuffs and goods for children, according to Annex 26.

For confirmation of assignment of goods to food products in respect of which the rate of the value added tax established by indent one of this clause may be applied, the Ministry of Agriculture and Food considers, upon applications of interested persons, questions of assignment of certain goods to food products included in the list according to Annex 26 and issues a respective statement;

2.21. when importing into the territory of the Republic of Belarus and/or when realizing medicines, medical products in the territory of the Republic of Belarus.

A ground for application of the rate of the value added tax in the amount of zero (10) percent shall be in relation to:

medicines – inclusion of information about them in the State Register of Medicines of the Republic of Belarus or in the Single registry of registered medicines of the of the Eurasian Economic Union, or the availability of a conclusion (authorization document) for the importation of unregistered medicines into the territory of the Republic of Belarus, issued by the Ministry of Health in the order established by the legislation;

medical products – inclusion of information about them in the State Register of Medical Products of the Republic of Belarus or in the Single registry of registered medical products of the of the Eurasian Economic Union, or the availability of a conclusion (authorization document) for the realization and/or medical application of unregistered medical products into the territory of the Republic of Belarus, issued by the Ministry of Health in the order established by the legislation;

2.3. increase of the tax base upon realization of goods specified in sub-clause 2.1 – 2.21 of this clause by sums specified in clause 4, indent two of part two of clause 8 and part two of clause 9 of Article 120 of this Code.

3. The rate of the  value added tax in the amount of twenty (20) percent is established upon:

3.1. realization of goods (works, services) not indicated in clauses 1, 2, and 4 of this clause, and also upon realization (transfer) of property rights;

3.2. importation into the territory of the Republic of Belarus of goods not indicated in sub-clause 2.1–2.21 of clause 2 of this Article;

3.3. other retirement of goods placed under the customs procedure of duty-free trade in duty-free shops ;

3.4. increase of the tax base upon realization of goods (works, services), property rights, specified in sub-clauses 3.1 and 3.3. of this clause by sums specified in clause 4, indent two of part two of clause 8 and part two of clause 9 of Article 120 of this Code;

3.5. realization of services in electronic form.

4. The rate of the  value added tax in the amount of twenty-five (25) percent is established upon:

realization of telecommunication services;

increase of the tax base upon realization of telecommunications services by sums specified in clause 4, indent two of part two of clause 8 and part two of clause 9 of Article 120 of this Code;

5. For confirming the soundness of application of the rate of the value added tax in the amount of zero (0) percent in relation to operations on realization of goods (works, services) indicated in clause 1 of this article, which have been carried out by a reorganized organization and for which, at the moment of reorganization, the rate of the value added tax in the amount of zero (0) percent was not applied, the successor shall present to the tax body at the place of putting on record documents confirming the soundness of application of the rate of the value added tax in the amount of zero (0) percent for such operations.

Indication in the tax declaration (calculation) for the value added tax turnovers on realization of goods (exportable works on production of goods from give-and-take raw materials) specified in part one of this clause shall be performed by the successor(s) under the procedure determined by sub-clauses 5.1–5.4 of clause 5 of Article 123 of this Code with regard to the time limit established by the legislation for confirmation of the actual exportation of goods outside the Republic of Belarus.

6. Turnovers on realization of goods, the place of realization of which is recognized the territory of the Republic of Belarus, in respect of which sub-clauses 1.1 and 1.2 of clause 1 of this Article establish the application of the rate of the value-added tax in the amount of zero (0) percent, in the event of failure to confirm their actual exportation outside the territory of the Republic of Belarus:

shall be taxable with the value added tax at the rate established by clause 3 of this Article, unless otherwise determined in this clause;

shall be taxable with the value added tax at the rate established by clause 2 of this Article, in relation to goods specified in clause 2 of this Article;

are exempt from the value added tax in the order established in Article 118 of this Code, in relation to goods specified in Article 118 of this Code.

Indication in the tax declaration (calculation) for the value added tax of turnovers on realization of goods shall be performed under the procedure determined by sub-clauses 5.1–5.4 of clause 5 of Article 123 of this Code with regard to the time limit established by the legislation for confirmation of the actual exportation of goods outside the territory of the Republic of Belarus.

7. For turnovers on realization of goods (works, services), the place of realization of which is recognized the territory of the Republic of Belarus and concerning which, in accordance with Articles 123–126 of this Code, there are grounds for applying the value-added tax rate in the amount of zero (0) percent, payers may apply:

the rate of the value added tax established by clause 3 of this Article;

the rate of the value added tax established by clause 2 of this Article, in relation to goods specified in clause 2 of this Article;

exemption from the value added tax in the order established in Article 118 of this Code, in relation to goods specified in Article 118 of this Code.

8. Upon importation and/or realization of goods specified in clause 2 of this Article, payers may apply the rate of the value-added tax established by clause 3 of this Article.

9. Payers are entitled to apply the rate of the value added tax specified in sub-clause 1.3 of clause 1 of this Article on:

9.1. on turnovers on realization of goods (works, services), property rights exempted from the taxation in accordance with the legislation;

9.2. turnovers on realization of goods (works, services), property rights, the place of realization of which is not recognized the territory of the Republic of Belarus (including the operations on realization of goods to the population at exhibitions-fairs held in the territory the member states of the Eurasian Economic Union);

9.3. turnovers, not being recognized as taxation objects in accordance with sub-clause 2.12.2 of clause 2 of Article 115 of this Code, on reimbursement:

to the lessor by the lessee of the value of purchased works (services) related to the lease (financial lease (leasing)), not included in the sum of rent (leasing payment);

to the lessee by the lessor of the value of purchased works (services) related to the lease (financial lease (leasing)).

Selection of the mentioned procedure shall be indicated in the accounting policy of the organizations (decision of the individual entrepreneur) and is not subject to be changed in the course of the current tax period.

Provisions of this sub-clause, the payers are entitled to apply also in relation to contracts of lease of dwelling premises;

9.4. turnovers, not being recognized as taxation objects in accordance with sub-clause 2.20.2 of clause 2 of Article 115 of this Code, on transfer of property into gratuitous use.

Turnovers specified in part one of this sub-clause include expenses of the lender, subject to be reimbursed to him, the form of:

value of works (services) on maintaining the property, acquired by the lender;

other works (services) related to the property, acquired by the lender, including expenses on operation, repairs of the property, costs on communal services.

Selection of the mentioned procedure shall be indicated in the accounting policy of the organizations (decision of the individual entrepreneur) and is not subject to be changed in the course of the current tax period.

Taxpayers are also entitled to apply the provisions of this sub-clause with respect to contracts of gratuitous use, under which the obligation of reimbursement to the lender of expenses specified in part two of this sub-clause is not provided for by acts of the President of the Republic of Belarus.

Article 123. Order of documentary confirmation of the exportation outside the Republic of Belarus of goods placed under the customs procedure of export

1. Upon realization of goods placed under the customs procedure of export, subject, the documentary confirmation of actual exportation of goods outside the territory of the Republic of Belarus with a view of their permanent location (except for exportation to member states of the Eurasian Economic Union) shall be the fact that the payer has:

1.1. a contract concluded by the payer with a foreign organization or a foreign natural person on the basis of which goods are being realized;

1.2. confirmation about the exportation of goods outside the territory of the Republic of Belarus in the event that the payer declares goods to the customs bodies in a written form.

Confirmation about importation of goods outside the territory of the Republic of Belarus shall be issued by the tax bodies in that instance and shall be presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) for the value added tax in the form of:

a copy certified by the personal numerical stamp of an official of the customs body of the declaration for the goods with notices of the customs body on release of goods in accordance with the declared customs procedure of export with the notice of the customs body “Товар вывезен (Good has been exported)” and the date of issuance of the confirmation;

or a special register of exported goods, certified by the personal numerical stamp of an official of the customs body, with the notice of the customs body “Good has been exported” and indication of the date of issuance of the confirmation;

1.3. information on the confirmation of the exportation of goods outside the territory of the Republic of Belarus in the event that the payer declares goods to the customs bodies in the form of electronic document.

Information on confirmation of the exportation of goods outside the territory of the Republic of Belarus in that instance shall be submitted by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) for the value added tax in the form of a register of electronic customs declarations for goods released in accordance with the customs procedure of export, in the established form with indication of:

numbers of electronic customs declarations;

numbers of declarations for goods for express cargo – if the goods are delivered by the carrier as an express cargo to the recipient in accordance with the individual consignment note;

date of the release of goods;

code of the customs procedure;

date of permission for the departure of the goods outside the Eurasian Economic Union;

sum of the turnover on realization of goods.

The mentioned register shall be filled in in the established order.

2. In the presence of circumstances indicating the falsity of documents presented in accordance with this Article, the confirmation about exportation of goods is issued upon requests of the tax bodies by the customs body that has carried out the release of goods in accordance with the declared customs procedure.

3. Upon realization of goods placed under the customs procedure of export through a intermediary, the documentary confirmation of actual exportation of goods outside the territory of the Republic of Belarus with a view of their permanent location (except for exportation to member states of the Eurasian Economic Union) shall be the fact that the payer has:

3.1. a contract with the intermediary.

For the purposes of this clause, the intermediary is understood to be an organization, individual entrepreneur, which render services on conclusion of contracts or which concluded, on behalf or under instructions of the payer, a contract with a foreign organization or natural person, including those that perform customs declaring of goods being imported;

3.2. a copy of the contract concluded by the intermediary with a foreign organization or a foreign natural person on the basis of which goods are being realized;

3.3. confirmation about the exportation of goods outside the territory of the Republic of Belarus in the event of declaring goods to the customs bodies in a written form.

The confirmation about exportation of goods outside the territory of the Republic of Belarus in that instance shall be issued by the customs body and presented to the tax body by the payer in the order established by sub-clause 1.2 of clause 1 of this Article.

3.4. information on the confirmation of the exportation of goods outside the territory of the Republic of Belarus in the event of declaring goods to the customs bodies in the form of electronic document.

Information on the confirmation of the exportation of goods outside the territory of the Republic of Belarus in that instance shall be submitted by the payer to the tax body in the order established by sub-clause 1.3 of clause 1 of this Article.

4. Upon realization of goods through mail and also upon realization of goods being moved through the system of main pipelines or power lines, for confirmation of exportation of goods outside the territory of the Republic of Belarus with a view of their permanent location (except for exportation to member states of the Customs Union) the payer shall submit to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) for the value added tax:

4.1. a copy of the contract concluded by the payer with a foreign organization or a foreign natural person on the basis of which goods are being realized;

4.2. in the event that the payer declares goods to the customs bodies in a written form:

a copy of the declaration for the goods with a notice of the customs body about the release of the goods in accordance with the customs procedure of export;

or a special register of exported goods with indication of the number of the declaration for goods and the date of release of the good in accordance with the customs procedure of export, certified by the signature of the head of the organization (person authorized by him), signature of the individual entrepreneur;

4.3.  in the event that the payer declares goods to the customs bodies in the form of electronic document – a special register of exported goods with indication of the number of the declaration for goods and the date of release of the good in accordance with the customs procedure of export, certified by the signature of the head of the organization (person authorized by him), signature of the individual entrepreneur;

4.4. a receipt issued by the postal organization about acceptance for sending of the postal item being registered, containing the good for sending to the buyer – upon realization of the goods through the mail;

4.5. a copy of acts of acceptance-delivery of goods – upon realization of goods being moved through the system of main pipelines through power lines.

5. Documentary confirmation of the exportation of goods outside the Republic of Belarus in accordance with clause 1, 3 and 4 of this Article shall be performed within one hundred eighty days from the date of release of the goods in accordance with the declared customs procedure. In that instance, indication in the tax declaration (calculation) for the value added tax of turnovers on realization of goods (works) shall be made with regard to the mentioned time limit in the following order:

5.1. in the absence of documents confirming the exportation of goods, till the submission of the tax declaration (calculation) for the value added tax for the reporting period in which the established time limit is not expired, the turnovers on realization of goods are not indicated in the tax declaration (calculation) for the value added tax;

5.2. upon availability of the documents confirming the exportation of goods, the turnovers on realization of goods shall be indicated in the tax declaration (calculation) for the value added tax:

of the reporting period the deadline for presentation of which follows the receipt of the respective documentary confirmation;

or of the reporting period in which the respective documentary confirmation has been received;

5.3. in the absence of documents confirming the exportation of goods, till the presentation to the tax body of the tax declaration (calculation) for the value added tax for the reporting period in which the established time limit expired, the turnovers on realization of goods shall be indicated application of the rate of the value added tax in the amount of zero (0) percent in the tax declaration (calculation) for the value added tax of the reporting period in which the established time limit expired.

5.4. upon receipt of the documents confirming the exportation of goods after expiration of the established time limit and after indicating the turnovers on realization in the tax declaration (calculation) for the value added tax, the turnovers on realization of goods with application of the rate of the value added tax in the amount of zero (0) percent shall be indicated (along with concurrent decrease of the turnovers on those goods) in the tax declaration (calculation) for the value added tax:

of the reporting period the deadline for presentation of which follows the receipt of the respective documentary confirmation;

or of the reporting period in which the respective documentary confirmation has been received.

Provisions of  this sub-clause shall not be applied after expiration of more than three years from the date on which the deadline for the payment of the value-added tax occurred because of the lack of documents confirming the exportation of goods in accordance with sub-clause 5.3 of this clause.

6. For confirmation of exportation from the Republic of Belarus outside the Russian Federation of furs realized as a result of holding the public sale with a view of its permanent location (except for return importation of furs to the Republic of Belarus), the payer presents to the tax body at the place of putting on record:

the contract of commission, agency or any similar contract with a taxpayer of the Russian Federation;

the consignment note confirming the exportation of furs from the territory of the Republic of Belarus to the territory of the Russian Federation to a taxpayer of the Russian Federation;

a consolidated reference note (transcription of box 2 of customs declaration for export of furs) issued by the taxpayer of the Russian Federation;

the register of accounts issued by the taxpayer of the Russian Federation for the payer of the Republic of Belarus which indicates the buyers of furs;

the customs declaration certified by the customs bodies of the Russian Federation confirming the exportation of fur material from the territory of the Russian Federation with a view of its permanent location (except for return importation of fur material to the Republic of Belarus).

Documentary confirmation of the exportation from the Republic of Belarus outside the Russian Federation of fur material in accordance with this clause shall be performed within one hundred eighty days from the date of holding the public sale. In that instance, indication in the tax declaration (calculation) for the value added tax of turnovers on realization of fur material shall be made with regard to the mentioned time limit in the order established by sub-clauses 5.1–5.4 of clause 5 of this Article.

Article 124. Order of documentary confirmation of exportation of goods to member states of the Eurasian Economic Union

1. The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization to taxpayers of member states of the Eurasian Economic Union or to taxpayers of states not being members of the Eurasian Economic Union of goods exported (without the commitment to return importation into the territory of the Republic of Belarus) to the member states of the Eurasian Economic Union (including goods exported under contracts of international leasing, loan contracts, contracts for manufacturing of goods) shall be the fact that the payer has the following documents:

1.1. contract on the basis of which the realization of goods is carried out; contract of international leasing stipulating the buy-out of the leasing object and the transfer of ownership of goods (leasing objects) to the lessee; contract stipulating granting of the loan in kind; contract for manufacturing goods (except for production of goods from give-and-take raw materials (materials));

1.2. transport (shipping) documents confirming the movement of goods from the territory of the Republic of Belarus to the territory of another member state of the Eurasian Economic Union.

Availability of the transport (shipping) documents is not required if for some type of movement, including movement of goods without use of vehicles, formalization of those documents are not provided for by the legislation.

Upon exportation to the territory of a state – member of the Eurasian Economic Union of goods for temporary storage, participation in exhibitions-fairs under contract concluded by the payer with buyers prior to the exportation of goods from the territory of the Republic of Belarus, it is required that the payer has transport (shipping) documents confirming the shipment (delivery) of goods to the buyers.

When goods are being moved through the system of main pipelines or power lines, it is required that the buyer has act of acceptance-delivery of goods;

1.3. declaration about importation of goods and payment of indirect taxes, drawn up according to the form approved by the treaty of the Republic of Belarus, with the notice of the tax body of the member state of the Eurasian Economic Union to the territory of which the goods are imported, about the payment of indirect taxes (exemption for the taxation or another order of fulfilling of tax obligations) (later on in this article – declaration about importation of goods) or the list of declarations about importation of goods and payment of indirect taxes.

The payer shall submit to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on the value added tax:

declaration about importation of goods;

or the list, according to the established form, of declarations about importation of goods and payment of indirect taxes, filled in in the established order.

2. The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization by organizations and/or individual entrepreneurs of the Republic of Belarus on the basis of contracts of commission, agency, and other similar civil-law contracts (later on in this clause – commitent) through organizations and/or individual entrepreneurs of the Republic of Belarus (later on in this clause – commissioner) of goods exported (without the commitment to return importation into the territory of the Republic of Belarus) to the states – members of the Eurasian Economic Union shall be the fact that the commitent has the following documents:

2.1. contract of commission, agency, or another similar civil-law contract;

2.2. transport (shipping) documents confirming the shipment of goods to the commissioner and copies of transport (shipping) documents confirming the shipment of goods to the buyers;

2.3. declaration about importation of goods or the list of declarations about importation of goods and payment of indirect taxes (to be presented by the commitent to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on the value added tax).

3. The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization by organizations and/or individual entrepreneurs of the Republic of Belarus on the basis of contracts of commission, agency, and other similar civil-law contracts (later on in this clause – commitent) through foreign organizations and/or natural persons, being the taxpayers of  the member states of the Eurasian Economic Union (later on in this clause – commissioner) of goods exported (without the commitment to return importation into the territory of the Republic of Belarus) to the member states of the Eurasian Economic Union for their subsequent realization within or outside of the customs territory of the Eurasian Economic Union shall be the fact that the commitent has:

3.1. contract of commission, agency, or another similar civil-law contract;

3.2. transport (shipping) documents confirming the shipment of goods to the commissioner;

3.3. customs declaration formalized by the commissioner and certified by the customs body of the member state of the Eurasian Economic Union, confirming the exportation of goods from the customs territory of the member states of the Eurasian Economic Union for their permanent placement.

The customs declaration is submitted by the commitent to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on the value added tax in the instance when the exportation of goods is carried out to the member states of the Eurasian Economic Union with a view of their subsequent realization by the commissioner outside of the customs territory of the Eurasian Economic Union, provided that the legislation of the member  state of the Eurasian Economic Union the payment of the value added tax upon importation from the territory of the Republic of Belarus is not imposed on the commissioner or agent;

3.4. declaration about importation of goods or the list of declarations about importation of goods and payment of indirect taxes (to be presented by the commitent to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on the value added tax, in the instance when the legislation of the member  state of the Eurasian Economic Union imposes the payment of the value added tax upon importation of goods from the territory of the Republic of Belarus on the commissioner, agent or buyer).

4. The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization to foreign organizations and natural persons of goods exported (without the commitment to return importation into the territory of the Republic of Belarus) to the member states of the Eurasian Economic Union and placed in the territory of the member states of the Eurasian Economic Union under the customs procedure of free customs zone or under the customs procedure of free warehouse shall be the fact that the payer has the following documents:

4.1. contract on the basis of which the realization of goods is carried out;

4.2. transport (shipping) documents confirming the movement of goods from the territory of the Republic of Belarus to the territory of a member state of the Eurasian Economic Union;

4.3. a copy certified by the customs body of the member state of the Eurasian Economic Union of the customs declaration in accordance with which goods are placed in the territory of the state – member of the Eurasian Economic Union under the customs procedure of free customs zone or under the customs procedure of free warehouse.

Such customs declaration is presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on the value added tax.

5. Documentary confirmation of actual exportation from the territory of the Republic of Belarus to the territory of the states – members of the Eurasian Economic Union in accordance with clause 1 and -4 of this article is make within one hundred eighty calendar days from the date of shipment of these goods. In that instance, indication in the tax declaration (calculation) for the value added tax of turnovers on realization of goods shall be made with regard to the mentioned time limit under in the order established by sub-clauses 5.1–5.4 of clause 5 of Article 123 of this Code.

When goods are realized on the basis of contracts of commission, agency, and other similar civil-law contracts for the countdown of the time limit established by this clause, the day of shipment is deemed to be the date of shipment of goods by the commissioner, agent or another similar person to the buyer.

Article 125. Order of documentary confirmation of the exportation outside the Republic of Belarus of goods produced from give-and-take raw materials (materials)

1. The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization of works being exported on production of goods from give-and-take raw materials (materials) shall be the fact that the payer has the following documents:

1.1. contract concluded with a foreign organization or natural person;

1.2. documents confirming performance by the payer of those works by own forces (in full or in part) for a foreign organization and natural person;

1.3. in the instance of engaging by the payer of Belarusian contractors for performance of works being exported on production of goods from give-and-take raw materials (materials):

1.3.1. the contractor's contract concluded by the payer with the Belarusian contractor;

1.3.2. documents confirming the performance of works by the Belarusian contractor on production of goods from give-and-take raw materials (materials);

1.4. in the event of exportation of goods produced from give-and-take raw materials (materials) to states not being member states of the Eurasian Economic Union:

1.4.1. confirmation about the exportation of goods outside the territory of the Republic of Belarus in the event of declaring goods to the customs bodies in a written form.

The confirmation about exportation of goods outside the territory of the Republic of Belarus in that instance shall be issued by the customs body and presented to the tax body by the payer in the order established by sub-clause 1.2 of clause 1 of Article 123 of this Code.

1.4.2. information on the confirmation of the exportation of goods outside the territory of the Republic of Belarus in the event of declaring goods to the customs bodies in the form of electronic document.

Information on the confirmation of the exportation of goods outside the territory of the Republic of Belarus in that instance shall be submitted by the payer to the tax body in the order established by sub-clause 1.3 of clause 1 of Article 123 of this Code.

1.5. in the event of exportation of goods produced from give-and-take raw materials (materials) to member states of the Eurasian Economic Union:

1.5.1. transport (shipping) documents confirming the movement of goods produced from give-and-take raw materials (materials) from the territory of the Republic of Belarus to the territory of the member states of the Eurasian Economic Union;

1.5.2. declaration about importation of goods and payment of indirect taxes, drawn up according to the form approved by the treaty of the Republic of Belarus, with the notice of the tax body of the member state of the Eurasian Economic Union to the territory of which the goods are imported, about the payment of indirect taxes (exemption for the taxation or another order of fulfilling of tax obligations) (later on in this article – declaration about importation of goods) or the list of declarations about importation of goods and payment of indirect taxes.

Declaration about importation of goods or the list of declarations about importation of goods and payment of indirect taxes shall be presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on the value added tax.

In the event of exportation of goods produced from give-and-take raw materials (materials) to the member states of the Eurasian Economic Union and placement thereof in the territory of a member state of the Eurasian Economic Union under the customs procedure of free customs zone or under the customs procedure of free warehouse, the payer, instead of declaration about importation of goods (list of declarations about importation of goods and payment of indirect taxes), shall present to the tax body at place of putting on record simultaneously with the tax declaration (calculation) for the value added tax certified by a customs body of the member state of the Eurasian Economic Union a copy of the customs declaration in accordance with which goods produced from give-and-take raw materials (materials) are placed in the territory of the member state of the Eurasian Economic Union under the customs procedure of free customs zone or under the customs procedure of free warehouse.

2. Documentary confirmation of actual exportation of goods produced from give-and-take raw materials outside the territory of the Republic of Belarus  in accordance with clause 1 of this Article shall be performed within one hundred eighty calendar days from the date:

of release of goods in accordance with the declared customs procedure – in the event of exportation of goods produced from give-and-take raw materials (materials) to states not being member states of the Eurasian Economic Union;

of shipment of goods –  in the event of exportation of goods produced from give-and-take raw materials (materials) from the territory of the Republic of Belarus to the territory of the states – members of the Eurasian Economic Union.

In that instance, indication in the tax declaration (calculation) for the value added tax of turnovers on realization of works on production of goods from give-and-take raw materials shall be made with regard to the mentioned time limit in the order established by sub-clauses 5.1–5.4 of clause 5 of Article 123 of this Code.

Article 126. Order of confirming the soundness of application of the rate of the value added tax in the amount of zero (0) percent in certain cases

1. The ground for applying of the rate of the value-added tax in the amount of zero (0) percent upon realization of works (services) specified in sub-clause 1.4 of clause 1 of Article 122 of this Code, on loading, reloading and other similar works (services) directly related to the realization of goods, specified in sub-clauses 1.1 and 1.2 of clause 1 of Article 122 of this Code, shall be submission by the payer to the tax body at the place of its putting on record of copies of the following documents:

1.1. contracts on performance (rendering) of indicated works (services) concluded both with foreign and with Belarusian organizations;

1.2. documents confirming the execution (rendering) of these works (services) with indication therein:

details of the declaration for the goods released in accordance with the declared customs procedure of export, the date of permission for the departure of the goods outside the Republic of Belarus (when declaration of the good is carried out by the customs body in the form of electronic document);

date when the customs body puts the notice "Good has been exported" certified by the personal numerical stamp of an official of the customs body (when declaration of the good is carried out by the customs body in the written form);

details of transport (shipping) documents about the transportation of the goods being exported to the territory of the member states of the Eurasian Economic Union  (in relation to goods being exported to the territory of the member states of the Eurasian Economic Union).

2. Exported transportation services levied with the value added tax in the amount of zero (0) percent include:

freight forwarding services that the forwarding agent undertakes to perform and/or arrange for the performance on the basis of a freight forwarding contract with the customer (consignor, consignee or freight forwarder - if the freight forwarding agent engages another forwarding agent), if such services are related to the organization and/or ensuring international carriage of goods by one or more modes of transport along the routes specified in indent three of this part;

services on international carriage of goods, passengers, and luggage by automobile, airborne, railway, sea, inland water transport and other modes of transport (a combination of those modes of transport), cargo-luggage by railway transport from the Republic of Belarus or outside the Republic of Belarus, from outside its limits, and also in transit through the territory of the Republic of Belarus, including partial rendering of those services in its territory.

Exported transportation services do not include:

agent’s (intermediary) services on formalizing and/or realization of tickets for travel of passengers, on the basis of which exported transportation services are rendered;

services not stipulated by the forwarding contract and not subject reimbursement to the forwarding agent by the client, as well as services stipulated by the forwarding contract and not subject to reimbursement to the forwarding agent by the client. Provisions of this indent cover also the instances when in accordance with the forwarding contract, the forwarding agent's duties are fulfilled by the carrier.

Exported transportation services do not include the following being rendered under a separately concluded contract that does not stipulate the organization and/or ensuring the international carriage of goods:

auxiliary transport services classified in accordance with the National Classifier of the Republic of Belarus OKRB 007-2012 “Classifier of products by kinds of economic activity”are classified in category 52.29.20.100;

consulting services on the issues of organization of international carriage of cargo, information services related to the international carriage of cargo;

services on storage of cargo.

Exported transportation services are levied by the value added tax in the amount of zero (0) percent when there are formalized by international transport or shipment documents or other international documents. This provision also covers services formalized on blank forms for international and interstate communications, being rendered on carriage of goods by railway transport travelling to destination stations (ports) in foreign states.

For the purposes of this clause, international transport documents for the carriage of passengers by road in the regular traffic are recognized:

license for international carriage of passengers by road in the regular traffic issued by the Ministry of Transport and Communications;

schedule of traffic of vehicles on a route for international carriage of passengers by road in the regular traffic, approved by the Ministry of Transport and Communications.

Upon realization by the state association “Belarusian Railway” of services on carriage of passengers, luggage, freight luggage by railway transport, international transport documents are recognized accounting statements (payment (balance) statements) stipulated by contracts concluded by the state association “Belarusian Railway” with organizations of public railway transport of foreign states.

The ground for applying of the rate of the value-added tax in the amount of zero (0) percent upon realization of exported transport services shall be a submission by the payer to the tax body of the information via sending in the order established by Article 131 of this Code of an electronic invoice with indication therein of the following data:

date and number of the contract stipulating the rendering of exported transport services (for forwarding agents – date and number of the forwarding contract);

date and number of the international transport (shipping document) or other international document (for the forwarding agents, also the date and number of request (order or another document));

route of carriage of goods, passengers, baggage, cargo luggage (for forwarding agents - route of cargo forwarding);

code of the type of economic activity of the national classifier of the Republic of Belarus OKRB 005-2011 "Types of economic activity".

3. The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization of works (services) on repair, modernization, re-equipping, technical servicing of aircraft and its components (including verification and fault detection), and on repair, modernization, re-equipping of railroad rolling-stock units, being performed (rendered) for foreign organizations or natural persons shall be availability at the payer of the following documents:

contract concluded with a foreign organization or natural person;

documents confirming the execution (rendering) of works (services) on repair, modernization, re-equipping, technical servicing of aircraft and its components (including verification and fault detection), and also on repair, modernization, re-equipping of railroad rolling-stock units;

register of documents confirming the execution (rendering) of works (services) on repair, modernization, re-equipping, technical servicing of aircraft and its components (including verification and fault detection), and also on repair, modernization, re-equipping of railroad rolling-stock units for foreign organizations or natural persons with indication of the names of such works (services) (to be filled in by the payer in the established order and be submitted to the tax body at the place of its putting on record simultaneously with the tax declaration (calculation) on the value added tax).

For the purposes of sub-clause 1.6 of clause 1 of Article 122 of this Code and this clause, railroad rolling-stock units include certain objects of railroad rolling-stock, specified in clause 3 of Article 117 of this Code.

4. The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization of works (services) specified in sub-clause 1.7 of clause 1 of Article 122 of this Code shall be the fact that the state association "The Belarusian Railway" has the following documents:

contract (agreement) with organizations of public railway transport of foreign states;

pay-sheet drawn up with organizations of public railway transport of foreign states;

train transfer (car) list (upon settlements with organizations of public railway transport of adjoining foreign states for services on providing into use of freight cars, refrigerated cars, containers,  bogies;

day book of reset cars (upon realization of works (services) on putting of passenger cars on bogies of another gauge);

locomotive driver itinerary  (upon realization of works (services) on work of traction railway rolling stock and locomotive crews);

register of documents confirming performance (rendering) to organizations of public railway transport of foreign states of works (services) on providing into use of freight cars,containers,  bogies, refrigerated cars, on putting of passenger cars on bogies of another gauge, on work of traction railway rolling stock and locomotive crews (to be filled in in the established order and be submitted according to the established form by the state association "The Belarusian Railway" to the tax body at place of putting on record simultaneously with the tax declaration (calculation) for the value added tax).

For the purposes of this clause, railroad rolling-stock units include the types of railroad rolling-stock specified in part two of sub-clause 1.7 of clause 1 of Article 122 of this Code.

5. The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization of services specified in sub-clause 1.8 of clause 1 of Article 122 of this Code shall be the fact that the payer has the following documents:

contract (agreement) on the basis of which the realization of services is carried out;

documents confirming the rendering of services;

register of documents confirming the rendering of services on servicing aircraft carrying out international flights and/or international air carriage with indication of description of such services (to be filled in in the established order and be submitted by the payer to the tax body at the place of its putting on record simultaneously with the tax declaration (calculation) on the value added tax).

6. The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization of bunker fuel specified in sub-clause 1.9 of clause 1 of Article 122 of this Code shall be the fact that the payer has the following documents:

6.1. contract with a foreign air company stipulating and/or including realization of bunker fuel – when regular flights are carried out;

6.2. request of the foreign air company and/or contract (agreement) with a foreign air company – when irregular flights are carried out.

In that instance the request must state the following data:

name of the air company with indication of the foreign state in which it is registered;

supposed quantity of bunker fuel required for the resupply of the aircraft;

date of supposed landing of the aircraft.

Upon a landing of the foreign aircraft due to force-majeure circumstances, the request provided for by this sub-clause is not to be completed.

For the purposes of this clause:

the regular flight is deemed to be a flight of the aircraft made along the route in accordance with the established timetable;

the irregular flight is recognized a flight not covered by the definition of the regular flight;

6.3. demand for resupply of the foreign aircraft which must state the following data:

name of the foreign air company;

quantity of supplied bunker fuel;

date of fuelling of the foreign aircraft;

signature of the captain of the foreign air craft or a representative of the foreign air company and a collaborator of the respective service of the payer that carried out the fuelling;

6.4. documents confirming the refueling of the foreign aircraft with bunker fuel;

6.5. statement of the authorized body  in the sphere of civil aviation, confirming the fact of an international flight and/or or international air carriage, carried out by the aircraft of the foreign air company, and also quantity and value of realized bunker fuel (for air companies) according to the form approved by the Ministry of Transport and Communications, which the payer presents, which the payer presents to the tax body at the place of its putting on record simultaneously with the tax declaration (calculation) on the value added tax.

7. The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization of goods of own production to the owners of duty-free shops, specified in sub-clause 1.10 of clause 1 of Article 122 of this Code shall be the fact that the payer has the following documents:

7.1. contract of sale concluded by him with the owner of a duty-free shop, included into the register of owners of duty-free shops;

7.2. consignment note confirming his shipping of goods of own production to the owner of a duty-free shop with indication of the rate of the value added tax in the amount of zero (0) percent;

7.3. copies of declarations for goods (copies of the external presentation of declarations for goods, if those declarations were submitted to the customs body in the form of an electronic document):

placed under the customs procedure of duty-free trade, the declarant of which is the owner of a duty-free shop – for goods of own production specified in indent two of part one of sub-clause 1.10 of clause 1 of Article 122 of this Code;

in accordance with which the goods being loaded aboard of the aircraft are released for use as supplies being exported from the customs territory of the Eurasian Economic Union, the declarant of which is the owner of the duty-free shop – for goods of their own production specified in indent three of part one of sub-clause 1.10 of clause 1 of Article 122 of this Code.

The mentioned copies of documents are certified by the signature of the head of the legal person being the owner of the duty-free shop or of a person authorized by him;

7.4. certificate of own production, issued under the procedure established by the legislation;

7.5. register of documents confirming the realization of goods of own production to the owner of duty-free shop  (to be filled in in the established order and be submitted by the payer to the tax body at the place of its putting on record simultaneously with the tax declaration (calculation) on the value added tax).

8. For the purposes of sub-clause 1.12 of clause 1 of Article 122 of this Code and this clause:

authorized servicing center is understood to be a legal person of the Republic of Belarus that concluded with a manufacturing plant of vehicles or its official representative a contract stipulating the right of guarantee maintenance (repair) of vehicles or a contract on servicing partnership (servicing contract);

vehicles include vehicles registered in foreign states:

of M3 category – vehicles used for carriage of passengers, having apart from the driver’s seat more than eight seats, technically permitted mass of which exceeds 5 tons;

of N2 category – vehicles intended for carriage of cargo, having technically permitted mass of above 3.5 tons, but not more than 12 tons;

of N3 category – vehicles intended for carriage of cargo, having technically permitted mass of above 12 tons;

of O3 category – trailers technically permitted mass of which  is above 3.5 tons, but not more than 10 tons;

of O4 category – trailers technically permitted mass of which  is above 10 tons.

The ground for application of the rate of the value added tax in the amount of zero (0) percent upon realization of works (services) specified in sub-clause 1.12 of clause 1 of Article 122 of this Code shall be the fact that the payer has the following documents:

contract with a manufacturing plant of vehicles or its official representative stipulating the right of guarantee maintenance (repair) of vehicles or a contract on servicing partnership (servicing contract);

contract concluded by the payer with an insurance organization or with foreign organization or natural person, with the exception of the citizen of the Republic of Belarus, on performance of works (rendering of services) on repair, technical maintenance of a vehicle registered in a foreign state;

document under which a damaged vehicle of a foreign organization or natural person, with the exception of the citizen of the Republic of Belarus, is directed by an insurance organization to the payer for performance of renovation repair;

copy of the certificate of vehicle registration in the foreign state or another registration documents of the foreign state for the vehicle;

document confirming the fact of performance of works (rendering of services) by the payer on repairs, technical maintenance of the vehicle registered in the foreign state, referred to M3, N2, N3, О3 or О4 category;

register of documents confirming performance of works (rendering of services) on repairs, technical maintenance of vehicles registered in foreign states (to be filled in in the established order and be submitted by the payer to the tax body at the place of its putting on record simultaneously with the tax declaration (calculation) on the value added tax).

Article 127. Tax period and reporting period of the value added tax upon realization of goods (works, services), property rights

1. Tax period of the value added tax is recognized a calendar year.

2. Reporting period of the value added tax is recognized:

2.1. a calendar month – for payers realizing telecommunications services;

2.2. a calendar quarter – on carriage for the state association "Belarusian Railway";

2.3. a calendar month or calendar quarter – at the option of the state association "Belarusian Railway" in the instances not provided for by sub-clause 2.2 of this clause;

2.4. a calendar month or calendar quarter – at the option of payers, with the exception of the payers specified in sub-clauses 2.1–2.3 of this clause.

3. Payers who have chosen a calendar quarter as the reporting period of the value-added tax in accordance with sub-clauses 2.3 and 2.4 of clause 2 of this Article shall inform the tax bodies at the place of putting on record:

3.1. by means of putting a corresponding notice in the tax declaration (calculation) on the value added tax, being submitted :

3.1.1. for the last tax period.

The putting of such a notice:

must be made not later than January 20 of the current tax period;

may be made (annulled) after January 20 of the current tax period only once, but not later than February 20 of the current tax period, by introduction of changes and/or additions in the tax declaration (calculation) on the value-added tax for the last tax period;

3.1.2. for the reporting period in which the obligation to compute and pay the value added tax arose (the taxation object arose) – in the absence of a tax declaration (calculation) on the value added tax for the previous tax period and the arising of the obligation to compute and pay the value added tax (the taxation object) in the current tax period, unless otherwise established by this clause and clause 4 of this Article.

The putting of such a notice: must be made not later than the 20th day of the month following the selected reporting period in which the obligation to compute and pay the value added tax arose (the taxation object arose);

3.1.3. for the reporting period in which the obligation to compute and pay the value added tax arose (the taxation object arose) – when applying the special taxation regime in the current tax period without payment of the value added tax and fulfilling the following conditions, in aggregate:

absence of a corresponding notice about the selection of the reporting period in the tax declaration (calculation) on value added tax for the past tax period;

arising of the obligation to compute and pay the value added tax (of the taxation object) in the current tax period.

The putting of such a notice: must be made not later than the 20th day of the month following the selected reporting period in which the obligation to compute and pay the value added tax arose (the taxation object arose).

Provisions of this sub-clause are also applied by individual entrepreneurs not being payers of the value added tax upon realization of goods (works, services), property rights;

3.2. according to the established form, not later than the 20th day of the month following the month of their state registration - for newly registered individual entrepreneurs and organizations newly created, including as a result of reorganization in the form of splitting-off, division or merger;

3.3. according to the established form not later than ten working days from the day of creation of the affiliate to be put on record in the tax body - for legal persons of the Republic of Belarus that have chosen a calendar quarter as the reporting period of the value added tax and created affiliates fulfilling the tax obligations of those legal persons in accordance with clause 3 of Article 14 of this Code.

This provision also covers the instances of occurrence of a circumstance in relation to which the obligation of the affiliate of a legal person of the Republic of Belarus has arisen to fulfill tax obligations of that legal person.

4. Organizations and/or individual entrepreneurs which switched to application of a special taxation regime with payment of the value added tax or to the common taxation regime with payment of the value added tax shall be recognized as having been selected as a reporting period of the value added tax a calendar:

quarter, unless otherwise established by this clause;

month, if for the month from which such a transition was made, they submitted a tax declaration (calculation) on the value-added tax within the established  time limit with indication of turnovers on the realization of goods (work, services), property rights.

5. The decision taken by the payer about the choice of the reporting period (calendar month or calendar quarter) is not subject to be changed in the course of the current tax period.

In that instance an organization reorganized in the form of transformation and the organization created as a result of its reorganization are recognized as one and the same organization.

Affiliates of a legal person of the Republic of Belarus that fulfill the tax obligations of that legal person in accordance with clause 3 of Article 14 of this Code shall apply the same reporting period of the value added tax as the legal person of the Republic of Belarus.

Article 128. Procedure of computation of the value added tax upon realization of goods (works, services), property rights

1. Upon realization of goods (works, services), property rights the total sum of the value added tax shall be computed:

on an accrual basis from the beginning of the tax period upon expiry of each tax period;

on all turnover on realization of goods (works, services), property rights recognized as a taxation object by the value added tax (with the exception those being exempted from taxation), the moment of actual realization of which falls on the corresponding reporting period, and on all changes in the tax base (with the exception of that being exempted from taxation) in the corresponding reporting period.

The total computed sum of the value added tax according to results of the reporting period on all operations on realization of goods (works, services), property rights and on all changes of the tax base shall be determined via addition of the sums computed separately on each operation in the order established by this Article.

2. The sum of the value added tax calculated from the turnover of the sale of goods (works, services), property rights shall be determined as the product of the tax base and the percentage of the tax rate using the following formula:

 

VATcom = TB x R,

 

where:   VATcom – computed sum of the tax;

TB – tax base;

R – established tax rate.

In some cases, when the computed sum of the value added tax must be determined by the calculation method, its sum shall be calculated as the product of the tax base and the tax rate divided by the size of the tax rate increased by 100, according to the following formula:

 

VATcom = TB x R/(100 + R),

 

where:   VATcom – computed sum of the tax;

TB – tax base;

R – established tax rate.

Those cases includes also the computation of the value added tax:

from sums of the increase of the tax base;

upon realization of goods, property rights, the tax base for which is defined as the positive difference between the price of their realization and the price of their acquisition;

upon realization of fixed assets and intangible assets, certain items included in current assets and property accounted as part of non-circulating assets, at prices lower than their depreciable value;

upon realization of outsources goods, property rights at prices lower than their acquisition price;

upon realization of goods (works, services) of own production, property rights at prices below their prime cost;

at unsubstantiated application of exemption from taxation;

upon failure to confirm the soundness of application of the rate of the value added tax in the amount of zero (0) percent.

3. The sum of the value added tax computed:

in accordance with of this Article shall be presented by the payer, when goods (works, services), property rights are realized, to the buyer of those goods (works, services), property rights in the order established by Article 130 of this Code.

from sums of the increase of the tax base in accordance with clause 4 of Article 120 of this Code, is not presented by the payer to the buyer of goods (works, services), property rights.

In the event of singling out by the seller in electronic invoices and primary accounting documents of the value added tax in the sum lesser than it is established in this Chapter, the computation and payment of the value added tax shall be effected by the buyer according to the respective rate established by Article 122 of this Code upon realization of goods (works, services), property rights.

4. Organizations and individual entrepreneurs put on record in the tax bodies of the Republic of Belarus, except for certain categories of payers specified in clause 1 of article 385 and clause 1 of clause 386 of this Code are obliged, when acquiring in the territory of the Republic of Belarus goods (works, services), property rights from foreign organizations not put on record in the tax bodies of the Republic of Belarus, with the exception of the instance established by part two of this clause, to calculated on established rates and to pay to the budget the sum of value added tax irrespective of the fact whether they are the payer according to their activity.

When goods (works, services), property rights in the territory of the Republic of Belarus are realized by foreign organizations not put on record in the tax bodies of the Republic of Belarus, on the basis of contracts of commission, agency, and other similar civil-law contracts, organizations and individual entrepreneurs put on record in the tax bodies of the Republic of Belarus that carry out entrepreneurial activity on the basis of such contracts, except for certain categories of payers specified in clause 1 of Article 385 and clause 1 of Article 386 of this Code, with the indicated foreign organizations are obliged to calculate according to established rates and to pay to the budget the sum of value added tax irrespective of the fact whether they are the payer according to their activity. This provision covers also the payers specified in clause 4 of Article 114 of this Code.

When goods (works, services), property rights in the territory of the Republic of Belarus are realized by foreign organizations not put on record in the tax bodies of the Republic of Belarus, the sum of value added tax is calculated separately on each operation on realization of goods (works, services), property rights in accordance with clause 2 of this Article.

5. Payers carrying out retail trade and public catering and and receiving income as a difference in prices, marks-on, charges on goods being realized at free and regulated (fixed) retail prices may perform the calculation of the value added tax based on the tax base the share of the sum of value added tax on goods available in the calendar month in the value of these goods (with account of all taxes, dues (duties) and other payments to the budget or budgets of the state non-budgetary funds, collected upon realization of goods), including the goods exempted from the value added tax.

The specifics of computing the value added tax established by part one of this clause is not applied when the tax base is increased in accordance with clause 4 of Article 120 of this Code.

The calculation of the value added tax based on the tax base and the share of the sum of value added tax upon realization of goods on retail prices shall be filled in according to the established form and to the established order.

In the absence of separate accounting of the sums of value added tax included in the price of the good and also of separate accounting of turnovers on realization of goods taxable according to different tax rates, the calculation of the value added tax upon realization of goods at retail prices is performed according to the rate specified in clause 3 of Article 122 of this Code.

6. Upon change of the procedure for calculation of the value added tax (change of the composition of payers, taxation objects, tax base, moment of actual realization, rates, procedure for application of exemption from the taxation), the new procedure for calculation is applied:

in relation to shipped goods (executed works, rendered services), property rights, transferred from the moment of change of the procedure for calculation of the value added tax;

in relation to goods (works, services), property rights, realized in the territory of the Republic of Belarus by foreign organizations not put on record in the tax bodies of the Republic of Belarus, the moment of actual realization of which occurred from the moment of change of the procedure for calculation of the value added tax;

in relation to objects of lease (leasing objects), the moment of putting (transfer) of which into lease (financial lease (leasing)) determined in accordance with clauses 9 and 10 of Article 121 of this Code occurred from the moment of change of the procedure for calculation of the value added tax;

in relation to sums which increase the tax base in accordance with clause 4 of Article 120 of this Code, the reflection of which is performed in the accounting from the moment of changing the procedure of computation of the value added tax.

Article 129. Order of correction of the turnover on realization of goods (works, services), property rights (computed sum of the value added tax) in certain cases

1. When changing the size of the turnover on realization of goods (works, services), property rights in the direction of reduction (increase) after the moment of their actual realization, the sellers shall decrease (increase) the turnover on realization of the reporting period, which is determined in accordance with clauses 2-5 of this Article, by the sum of turnover on realization of those goods (works, services), property rights in the instances:

of a full or partial return of goods by the buyer to the seller. This provision is not applied in relation to goods returned to their seller for repair or substitution, unless their value has changed;

of refusal of works performed (services rendered), property rights transferred;

of decreasing (increasing) of the value of goods (works, services), property rights.

2. Sellers shall increase turnovers on realization of goods (works, services), property rights of the reporting period in which the seller and the buyer agreed in the established order an increase of the value of goods (work, services), property rights.

3. Sellers shall decrease turnovers on realization of goods (works, services), property rights if the following conditions in aggregate are met:

the buyer returned the goods, the seller and the buyer agreed in the established order the refusal of work performed (services rendered), property rights transferred, reduction of the value of goods (work, services), property rights;

an additional (corrected) electronic invoice is signed by the buyer with the electronic digital signature, if the electronic invoice presented earlier by the seller was signed by the buyer with the electronic digital signature. Fulfillment of that condition does not extend to transactions with taxpayers of foreign countries.

4. The reflection in the tax declaration (calculation) on the value-added tax of the sum of a decrease of the turnover on realization of goods (works, services), property rights in relation to the date of signing by the buyer with the electronic digital signature of the additional (corrected) electronic invoice presented by the seller shall be effectuated in the following order , unless otherwise provided by clause 5 of this Article:

4.1. when the buyer does not sign an additional (corrected) electronic invoice before the seller submits a tax declaration (calculation) on the value added tax for the reporting period on which falls the cases established by clause 1 of this article, turnovers on realization in the tax declaration (calculation) on the value added tax of the seller does not decrease;

4.2. when the buyer signs an additional (corrected) electronic invoice before the seller submits a tax declaration (calculation) on the value added tax for the reporting period on which falls the cases established by clause 1 of this Article, turnovers on realization in the tax declaration (calculation) on the value added tax of the seller decrease:

of the reporting period on which falls the instances established by clause 1 of this Article;

or of the reporting period in which the buyer signed the additional (corrected) electronic invoice;

4.3. when the buyer signs an additional (corrected) electronic invoice afte the seller submits a tax declaration (calculation) on the value added tax for the reporting period on which falls the cases established by clause 1 of this Article, turnovers on realization in the tax declaration (calculation) on the value added tax of the seller decrease:

for the reporting period the deadline for submission of which follows the buyer's signing of the additional (corrected) electronic invoice;

of for the reporting period in which the buyer signed the additional (corrected) electronic invoice;

4.4. in relation to goods (works, services), property rights, return of which (refusal of which) or decreasing of the value of which is effectuated in the tax period preceding the tax period in which the additional (corrected) electronic invoice was signed by the buyer in terms of decreasing the turnovers on realization, the seller is entitled to make changes in the tax declaration (calculation) for the value added tax  for such preceding tax period.

5. In relation to goods (works, services), property rights, return of which (refusal of which) or decrease of the value of which is effected within the period of application by the buyers of the special taxation regime without payment of the value added tax and turnover on realization of which was taken by him in account while determining the tax base in the reporting period preceding the tax period in which return of goods (refusal of works executed, services rendered), property rights or decrease of the price of goods (works, services), property rights, changes in the part of correction of turnovers on realization established by clause 1 of this Article shall be entered into the tax declaration (calculation) for value added tax for such preceding tax period, upon fulfillment in aggregate of the conditions determined by clause 3 of this Article.

Provisions of part one of this clause shall also be applied by the seller - individual entrepreneur who is not a payer of the value added tax upon realization of goods (works, services), property rights in the period in which returned of goods, refusal of works performed (services rendered), property rights transferred or a reduction in the value of goods (work, services), property rights have been effectuated.

6. In the event of writing down and/or writing off printing runs of periodic printed mass media not realized at retail prices by legal persons carrying out trade in the territory of the Republic of Belarus and communications organizations within the time limits established by the contract, which in accordance with the conditions of the contract are not subject to return and settlements for which are not effectuated, the legal persons on which functions of editorial boards of printed mass media are imposed (sellers) shall decrease the turnovers on realization by the sum of turnover on realization of those periodical printed media, if the following conditions in aggregate are met:

writing down and/or writing off of periodic printed mass media not realized at retail prices has been carried out;

an additional (corrected) electronic invoice presented by the seller is signed by the buyer (a legal person of the Republic of Belarus carrying out trade in the territory of the Republic of Belarus and a communications organization) with the electronic digital signature, if the electronic invoice presented earlier by the seller was signed by the buyer with the electronic digital signature.

The reflection in the tax declaration (calculation) on the value-added tax of the sum of a decrease of the turnover on realization of periodic printed mass media in relation to the date of signing by the buyer with the electronic digital signature of the additional (corrected) electronic invoice presented by the seller shall be effectuated in the order established by clause 4 of this Article.

7. Sums of the value added tax excessively presented by the seller in electronic invoices and the primary accounting documents, including due to the retrospective effect given to normative legal acts:

7.1. are subject to computation and payment to the budget by this seller, unless otherwise established by sub-clause 7.2. of this clause;

7.2. are not subject to computation and payment to the budget by this seller, if:

7.2.1. sums of the value added tax excessively presented, including due to the retrospective effect given to normative legal acts, has been corrected on the basis of the following documents, in aggregate:

settlement checking acts signed by the seller and the buyer;

additional (corrected) electronic invoices presented by the seller and signed by the buyer with the electronic digital signature, if the electronic invoices presented earlier by the seller were signed by the buyer with the electronic digital signature.

The reflection by the seller in the tax declaration (calculation) on the value-added tax of the sum of a decrease of the computed sum of the value added tax in relation to the date of signing by the buyer with the electronic digital signature of the additional (corrected) electronic invoice presented by the seller and to the date of signing of the settlement checking act, shall be effectuated in the order similar to the order established by clause 4 of this Article;

7.2.2. the buyer of goods (works, services), property rights on which the seller has excessively presented a sum of the value added tax, including due to the retrospective effect given to normative legal acts, is:

taxpayer of a foreign state;

natural person of the Republic of Belarus not acting as an individual entrepreneur on the moment of acquisition of goods (works, services), property rights.

8. Provisions of clause 7 of this Article:

8.1. cover also:

8.1.1. commissioners (agents) and other similar persons that acquire goods (works, services), property rights on the basis of contracts of commission, agency, and other similar civil-law contracts and excessively present the sums of value added tax for reimbursement to commitents (principals) and other similar persons;

8.1.2. organizations and individual entrepreneurs that apply special taxation regimes without payment of the value added tax and excessively presenting the sums of the value added tax;

8.1.3. individual entrepreneurs not being payers of the value added tax upon realization of goods (works, services), property rights and excessively presenting the sums of the value added tax;

8.1.4. turnovers on realization of goods (works, services), property rights, being exempted from value added tax or not recognized as a taxation object in accordance with the legislation, for which the seller presented a sum of the value added tax to buyers;

8.1.5. turnovers on return by the buyer to the seller of the tare recognized as returnable tare according  to sub-clause 1.1.7 of clause 1 of Article 115 of this Code;

8.2. are not applied:

8.2.1. upon transfer of goods (works, services), property rights within on legal person and in the instances when the value added tax computation is not performed thereon;

8.2.2. by the buyer upon return of goods at the acquisition price with the value added tax to the seller of goods.

Article 130. Sum of the value added tax presented for payment by the payer to the buyer of goods (works, services), property rights

1. When goods (works, services), property rights are realized at free selling prices (with account of excises for excisable goods) or tariffs, the payer is obliged, in the price (tariff) of goods (works, services), property rights, to present to the buyer of those goods (works, services), property rights the respective sum of the value added tax.

This provision is not applied when the payer realizes goods at retail prices, if those prices already include the value added tax.

2. The sum of value added tax presented by the payer to the buyer of goods (works, services), property rights is determined on each kind of goods (works, services), property rights.

3. In electronic invoices and primary accounting and settlement documents the respective sum and the rate of value added tax shall be indicated as a separate entry.

4. When goods are realized at regulated retail prices that include the value added tax, the payers that realize such goods are obliged, at the request of buyers, to indicate the actual rate of the value added tax at which the given good is taxable and the sum of the value added tax:

in the primary accounting documents for the shipment of goods if the realization of goods is carried out without the use of cash equipment;

in payment documents formed by the cash equipment if in such documents the rate and the sum of value added tax are indicated as details of the payment document;

through singling out the actual rate of the value added tax at which the given good is taxable and the sum of the value added tax with certification with a stamp (is entitled with the seal) of the seller and the signature of the head or chief accountant of the organization-seller (person authorized by him) or the individual entrepreneur-seller (person authorized by him) – in the instances when in payment documents formed by the cash equipment, the rate and the sum of value added tax are not indicated as details of the payment document.

Payers that compute the value added tax with application of specific features established by clause 5 of Article 128 of this Code are entitled, instead of the actual rate of the value added tax at which the given tax is taxable, to indicate the sum and the rate of the value added tax based on the calculation available at the beginning of the current month:

in the primary accounting documents for the shipment of goods in the instances if the realization of goods is carried out without the use of cash equipment;

through singling out the rate of the value added tax and the sum of the value added tax with certification with a stamp (is entitled with the seal) of the seller and the signature of the head or chief accountant of the organization-seller (person authorized by him) – in the instance when in payment documents formed by the cash equipment, the rate and the sum of value added tax are not indicated as details of the payment document.

5. Payers entrusted with the realization of the property alienated as a result of a requisition or confiscation according to the court resolution to collect taxes, dues (duties) and penalty interest, fines for committing administrative offences and/or crimes via levying the execution on the property on obligations of the owner are entitled to indicate in the documents for the buyers the sums of value added tax singled out by themselves from the realization price and are obliged to present an electronic invoice at the request of buyers.

Singling out of sums of value added tax in documents and indication thereof in an electronic invoice shall be effected at the rate at which the realization of such property is being levied.

6. Organizations and individual entrepreneurs on goods (work, services), property rights, exempted from value added tax and/or not recognized as an object of taxation with the value added tax, individual entrepreneurs applying the common taxation procedure without paying the value added tax, as well as organizations and individual entrepreneurs applying special taxation regimes without paying the value added tax upon realization (shipment) of  goods (works, services), property rights:

do not compute the value added tax;

present (send) electronic invoices in the instances established by Article 131 of this Code;

draw up primary accounting documents applied upon realization (shipment) of goods (works, services), property rights without singling out the value added tax and without presenting those sums to the buyer. In this instance the make the note or put the stamp “Without VAT”, and upon realization of goods (works, services) specified in sub-clause 1.16 and 1.20 of clause 1 of article 118 of this Code, they make a respective entry.

7. Singling out of sum of value added tax to the participants (members) of organization upon presentation for reimbursement, in accordance with sub-clause 2.12.1 of clause 2 of article 115 of this Code, of the value of acquired (performed , rendered) works (services) is performed when the sums of value added tax are indicated in electronic invoice and primary accounting documents to such organizations by the sellers of those works (services).

8. Singling out by the lessor to the lessee, and also by the lessee to the lessor, of the sums of value added tax when the value of acquired works (services) is presented for reimbursement in accordance with sub-clause 2.12.2 of clause 2 of Article 115 of this Code shall be effectuated:

when those sums of the value added tax are indicated accordingly for the lessor, and also for the lessee, by the sellers of such works (services) in electronic invoices and primary accounting documents;

when computing the value added tax in accordance with sub-clause 9.3 of clause 9 of Article 122 of this Code.

Singling out by the lender to the borrower of the sums of value added tax when the value of acquired works (services) is presented for reimbursement in accordance with sub-clause 2.20.2 of clause 2 of Article 115 of this Code shall be effectuated:

when those sums of the value added tax are indicated accordingly for the lender by the sellers of such works (services) in electronic invoices and primary accounting documents;

when computing the value added tax in accordance with sub-clause 9.4 of clause 9 of Article 122 of this Code.

9. Upon realization of goods (works, services), property rights on the basis of contracts of commission (agency) and other similar civil-law contracts, the buyer shall be allocated the sums of the value added tax computed:

by the commitent (principal) in the case if the commitent (principal) is the payer of the value added tax in the Republic of Belarus, provided that the commitent (principal) indicates those sums of value added tax for commissioners (agents) in electronic invoices and primary accounting documents of the commitent (principal);

by the commissioner (agent) in accordance with Article 114 of this Code on goods (works, services), property rights of commitents (principals) the place of realization of which is recognized the territory of the Republic of Belarus, provided that the commissioner (agent) presented electronic invoices to buyers on the basis of an electronic invoices sent by the commissioner (agent) according to sub-clause 8.7 of clause 8 or sub-clause 9.1 of clause 9 of Article 131 of this Code.

10. Singling out of the sums of value added tax by the seller of the goods when the value of acquired services shall be presented for reimbursement in accordance with sub-clause 2.12.3 of clause 2 of article 115 of this Code is performed when then these sums of value added tax are indicated to the seller of the goods in electronic invoices and primary accounting documents by the payers that render the said services.

11. Singling out by the forwarding agent to the customer under the forwarding contract of the sums of value added tax on expenses reimbursed by the customer in accordance with sub-clause 2.12.5 of clause 2 of Article 115 of this Code is performed when those sums of value added tax are indicated in electronic invoices and primary accounting documents to the forwarding agent by the sellers of such goods (works, services), property rights, relating to such expenses.

12. When the ordering customer (builder) conducts construction in the interests of third parties (including interestholders) and transfer upon completion of the construction to a third persons (including interestholder) costs on construction of the object actually incurred by the ordering customer (builder) within the sum of the contract with the third person (including interestholder), sums of the value added tax on goods (works, services), property rights acquired (imported), manufactured (performed, rendered) by the ordering customer (builder) for conducting construction in the interests of third persons (including interestholders) and not being investments in long term assets of the ordering customer (builder).

Singling out by the ordering customer (builder) of the sums of value added tax  to a third persons (including interestholder) shall be performed when:

those sums are indicated for the ordering customer (builder) in electronic invoices and primary accounting documents by sellers of such goods (works, services), property rights;

when those sums of the value added tax are paid by the ordering customer (builder) upon importation of goods to the territory of the Republic of Belarus;

when the ordering customer (builder) computes and pays those sums of the value added tax to the budget in accordance with Article 114 of this Code in the event of acquisition of goods (works, services), property rights in the territory of the Republic of Belarus from foreign organizations not being put on record in the tax bodies of the Republic of Belarus;

when the ordering customer (builder) computes the value added tax on goods (works, services), produced (executed, rendered) by the ordering customer’s (builder's) own resources when the ordering customer (builder) conducts construction in the interests of third persons (including interestholders).

13. When goods (works, services), property rights are realized in the course of trust management of property under a contract on trust management of property in the interests of the trustor or a person indicated by him (beneficiary), the trustee present, in electronic and primary accounting documents applied upon realization (shipment) of those goods (works, services), property rights, for payment to the buyer the respective sum of value added tax in the order established by this Article.

Article 131. Electronic invoice

1. Electronic invoice is an obligatory electronic document for:

all payers, unless otherwise established by this Article, serving as a ground for accepting sums of value added tax by the payer for deduction in the order established by this Chapter;

payers who, according to clause 1 of Article 97 of this Code, are obliged to inform the tax body about the transactions they have made.

Creation (including completion), presenting (directing), receipt, signing and storage of an electronic invoice shall be carried out in the order established by the Ministry on Taxes and Dues.

Electronic document flow of electronic invoices between sellers and buyers shall be carried out with use of the Portal of electronic invoices (later on in this Chapter – Portal) being an information resource of the Ministry on Taxes and Dues.

An electronic invoice according to the form and format established by the Ministry on Taxes and Dues shall be created by the payer directly on the Portal or uploaded as a XML file prepared by the payer. An electronic invoice is a source of data about computed and/or deductible sums of value added tax to be submitted to the tax bodies

The value of goods (works, services), property rights and sums of value added tax in an electronic invoice shall be indicated in the national currency of the Republic of Belarus.

2. Payers specified in indents two – four of Article 112 of this Code are obliged to create electronic invoices, unless otherwise established by this Article, including:

2.1. on turnovers upon realization of goods (works, services), property rights,  recognized as object of taxation with the value added tax;

2.2. on turnovers upon realization of goods (works, services), property rights,  not recognized as object of taxation with the value added tax, but subject to be indicated in the tax declaration (calculation) for the value added tax;

2.3. upon importation of goods in the territory of the Republic of Belarus;

2.4. upon computation of the value added tax in accordance with Article 114 of this Code upon realization in the territory of goods (works, services), property rights in the territory of the Republic of Belarus from foreign organizations not being put on record in the tax bodies of the Republic of Belarus;

2.5. upon transfer of tax deductions in accordance with Article 133 of this Code;

2.6. upon presentation (singling out) of sums of value added tax to buyers of goods (works, services), property rights in the order established by article 130 of this Code;

2.7. in other cases established by this Article and clause 1 of Article 97 of this Code.

3. An electronic invoice is not created, unless otherwise established by clause 1 of Article 97 of this Code:

3.1. by banks of the Republic of Belarus, non-bank credit and financial organizations of the Republic of Belarus upon realization of operations specified in sub-clause 1.37 of clause 1 of Article 118 of this Code;

3.2. by payers specified in Article 385 of this Code upon realization of goods (works, services), property rights;

3.3. by payers specified in Article 386 of this Code upon realization of goods (works, services), property rights in the event when they meet conditions established by the mentioned Article;

3.4. by peasant’s (farmer’s) households being exempted from the value added tax according to clause 1 of Article 384 of this Code in the part of activity on production of produce of crop husbandry (with the exception of ornamental plants and produce of floriculture), produce of animal husbandry (except for fur farming), fish husbandry and apiculture;

3.5. upon importation of goods into the territory of the Republic of Belarus by individual entrepreneurs not being payers of the value added tax upon realization of goods (works, services), property rights. This provision is not applied by individual entrepreneurs from the 1st day of the month in which they are recognized as payers of the value added tax upon realization of goods (works, services), property rights;

3.6. upon importation into the territory of the Republic of Belarus of goods exempted in accordance with the legislation from the value added tax collected by the customs or tax bodies upon importation of goods;

3.7 upon importation of goods into the territory of the Republic of Belarus on the basis of contracts of commission, agency and other similar civil-law contracts;

3.8. on turnovers on realization of goods (works, services), property rights, not recognized as taxation objects for value added tax in accordance with the legislation (with the exception of instances provided by clauses 17 and 18 of this Article) and not being subject to reflection in the tax declaration (calculation) for the value added tax;

3.9. upon realization of services on insurance (co-insurance, re-insurance) specified in sub-clause 1.40 of clause 1 of Article 118 of this Code;

3.10. upon realization in the territory of the Republic of Belarus of goods (works, services), property rights being exempted from the value added tax in accordance with the legislation by foreign organizations not put on record in the tax bodies of the Republic of Belarus;

3.11. upon realization of goods (works, services), property rights, the tax base for value added tax on which in accordance with the legislation is recognized to be equal to zero (is equal to zero);

3.12. upon realization of services in electronic form by foreign organizations rendering services in the electronic form for natural persons and being put on record in the tax body of the Republic of Belarus according to sub-clause 1.7 of clause 1 of Article 70 of this Code;

3.13. upon realization of services on carriage between legal persons included in the consolidated balance sheet of main activity of the State Association "The Belarusian Railway", not being included in the tax base in accordance with clause 35 of Article 120 of this Code;

3.14. upon gratuitous transfer of goods (works, services), property rights, turnovers on transfer of which are not recognized as realization or taxation object, but are reflected in the tax declaration (calculation) for the value added tax according to sub-clause 4.1.2. of clause 4 of Article 134 of this Code.

4. The payer is obliged, unless otherwise established by clause 3 of this Article, to present, in the order established by this Article in relation to each turnover on realization of goods (works, services), property rights, to the buyer of goods (works, services) or in the instances established by this Article to direct to the Portal an electronic invoice.

5. An electronic invoice shall be presented not earlier than on the day of shipment of goods (performance of works, rendering of services), transfer of property rights, determined in accordance with provisions of Article 121 of this Code and not later than on the 10th day of the month following the month  on which falls:

the day of shipment of goods (performance of works, rendering of services), transfer of property rights, unless another time limit established by this Chapter;

the moment of actual realization of goods (performance of works, rendering of services), property rights – for organizations applying provisions of clause 1 of Article 140 of this Code.

In case when upon the expiration of the time limit established by part one of this clause:

the moment of actual realization of goods (works, services), property rights,  has not occurred, then an electronic invoice shall be presented not later than within three working days from the date of occurrence of the moment of actual realization of such goods (works, services), property rights;

the data or primary accounting documents formalized in the established order, confirming the occurrence of the moment of actual realization of goods (works, services), property rights are absent, then an electronic invoice shall be presented not later than within three working days, accordingly, from the date of receipt of the data or formalization in the established order of primary accounting documents confirming the occurrence of the moment of actual realization of goods (works, services), property rights.

An electronic invoice in respect of turnovers on reimbursement not recognized as taxation objects for the value added tax in accordance with sub-clauses 2.12 and/or 2.20.2 of clause 2 of Article 115 of this Code, as well as when transferring tax deductions in the order provided for by sub-clauses 25.1 and 25.2 clause paragraph 25 of Article 133 of this Code, shall be presented not earlier than the day of transfer of goods (work, services), property rights (tax deductions) being reimbursed and not later than the 15th day of the month following the month of transfer of the goods (work, services), property rights (tax deductions) being reimbursed.

6. Buyers purchasing goods at retail prices from sellers who indicated in the primary accounting documents the rate and sum of the value added tax in accordance with clause 4 of Article 130 of this Code are entitled to declare in an optional form a demand to present electronic invoices to their address by the sellers of those goods, unless thirty calendar days have not expired from the date of issuance of primary accounting documents specified in clause 4 of Article 130 of this Code.

Buyers purchasing goods (works, services), property rights through accountable persons from sellers who have indicated in payment documents formed by cash equipment, in documents used upon realization of goods (works, services), property rights, the rate and sum of the value added tax , are entitled to declare in optional form a demand to present electronic invoices to their address by sellers of those goods (works, services), unless thirty calendar days have not expired from the date of issuance of  documents specified in this part.

Sellers are obliged to present electronic invoices to the buyers specified in parts one and two of this clause not later than on the 10th day of the month following the month in which the seller received a demand  about presentation of electronic invoices declared by a buyer within the time limit specified by parts one and two of this clause. Electronic invoices shall indicate the rate and sum of the value added tax based on the documents specified in parts one and two of this clause, respectively.

When the seller repeatedly issues (hands out) documents to the address of one buyer within a calendar month, on which, in accordance with part two of this Article, the buyer who acquired goods (works, services), property rights through accountable persons, declared a demand about presentation of electronic invoices, it is allowed that the seller creates and presents one final electronic invoice to the address of such a buyer.

7. Concerning activity of an organization being reorganized in the form of  merging, splitting-up, splitting-off, an electronic invoice shall be presented (sent) by such an organization being reorganized not later than the date of its reorganization.

Concerning activity of an organization being liquidated (individual entrepreneur terminating activities), an electronic invoice shall be presented (sent) by such an organization ( such an individual entrepreneur) not later than ten working days prior the day of its submission to the registering body of the liquidation balance sheet (notification about the completion of the process of termination of activities).

If an organization takes a decision to liquidate its affiliate that fulfills the tax obligations of such an organization, or also upon arising of a circumstance in connection with which the affiliate's obligation to fulfill the tax obligations of that organization ceases, an electronic invoice shall be presented (sent) by such an affiliate not later than the date of its liquidation (date of occurrence of such a circumstance).

Buyers specified in parts one–three of this clause who acquired goods (works, services), property rights on which electronic invoices were not received prior to adoption of a decision about their liquidation (reorganization, termination of activities) are obliged to declare in optional form a demand about presentation to their address by sellers of those goods (works, services), property rights of electronic invoices with indication in such a demand of the date of their liquidation (reorganization, termination of activities). Sellers are obliged to present electronic invoices to such buyers before the date of liquidation (reorganization, termination of activities) specified in the received demand about their presenting electronic invoices.

For the purposes of this clause, the date of the reorganization shall be considered the date on which falls, respectively:

the date of entering the record about the termination of activity of the affiliated organization in the Unified State Register of Legal Persons and Individual Entrepreneurs;

the date of state registration of organizations newly created as a result of reorganization in the form of merger, splitting-up.

8. An electronic invoice, if the obligation of its creation arises for the payer being a seller, shall be created and sent to the Portal (without the need to present it to the buyer) in relation to each turnover on realization of goods (works, services), property rights not later than the 20th day of the month following the month in which the moment of actual realization of goods (works, services), property rights arose (unless otherwise established by this clause), upon:

8.1. realization goods (works, services), property rights, turnovers on realization of which are exempted from the value added tax in accordance with the legislation.

Upon realization of goods exempted from the value added tax, deduction of sums of the value added tax on which shall be effected in full volume in accordance with sub-clauses 27.5 of clause 27 of Article 133 of this Code, sending of the electronic invoice by the payer to the Portal shall be carried out with regard to time limits determined by parts ten and eleven of sub-clause 1.44 of clause 1 of Article 118 of this Code, but not later than on the 20th day of the month following the expiration of the reporting period for which turnovers on realization are reflected in the tax declaration (calculation) for the value added tax;

8.2. realization of transport services being exported, turnovers on realization of which are taxable with the value added tax at the rate in amount of zero (0) percent in accordance with sub-clause 1.5 of clause1 of Article 122 of this Code;

8.3. realization of goods (works, services), property rights to taxpayers of foreign states.

Upon exportation of goods (including those produced from give-and-take raw and materials) taxable at the value added tax rate in the amount of zero (0) percent, sending of the electronic invoice by the payer to the Portal shall be carried out with regard to the time limits determined by clause 2 of Article 102 of this Code, but not later than on 20th day of the month following the expiration of the reporting period for which turnovers on realization are reflected in the tax declaration (calculation) for the value added tax.

Upon realization of goods not recognized as taxation object with the value added tax, deduction of sums of the value added tax on which shall be effected in full volume in accordance with sub-clauses 27.7 and 27.8 of clause 27 of Article 133 of this Code, sending of the electronic invoice by the payer to the Portal shall be carried out with regard to time limits determined, accordingly, by part five of sub-clause 27.7, parts seven–nine of sub-clause 27.8 of clause 27 of Article 133 of this Code, but not later than on the 20th day of the month following the expiration of the reporting period for which turnovers on realization are reflected in the tax declaration (calculation) for the value added tax;

8.4. realization of goods (works, services), property rights:

to a college of advocates;

to advocates offices;

to the Belarusian notarial chamber and its organizational structures;

to the National Bank and its structural divisions;

8.5. [excluded]

8.6. realization of services in the instances when remuneration determined as a difference between the sum of means with account of the value added tax to be received under the contract with a third person (including the interestholder) and the sum of actually incurred costs with account of the value added tax on construction of the object falling on the share of the third person (including the interestholder) is absent, and the tax base of the ordering customer (builder) is determined as the value of services of the ordering customer (builder) determined based on the volume of means provided for maintenance of the ordering customer (builder) by the design and estimate documentation for construction of the object with account of the value added tax and calculated proportionally to the share of the third person (including the interestholder) in the construction of the object;

8.7. shipment of goods (execution of works, rendering of services), transfer of property rights to buyers (ordering consumers) and computation of the value added tax in accordance with Article 114 of this Code while carrying out activity on the basis of contracts of commission, agency, and other similar civil-law contracts concluded with foreign organizations not put on record in the tax bodies of the Republic of Belarus, and when goods (works, services), which realize goods (works, services), property rights in the territory of the Republic of Belarus on the basis of such contract.

An electronic invoice shall be created on each operation on realization of goods (works, services), property rights and be sent by the payer to the Portal not later than on the 20th day of the month following the month in which the moment of actual realization of goods (works, services), property rights occurred to be determined in accordance with clause 29 of Article 121 of this Code.

Provisions of this sub-clause are to be also applied by payers specified in clause 4 of Article 114 of this Code;

8.8. realization of goods (works, services), property rights to buyers – natural persons not acting as individual entrepreneurs on the moment of acquisition of goods (works, services), property rights, with the exception of:

goods (works, services), property rights, upon acquisition of which the natural person of the Republic of Belarus specified in indent one of part one of this sub-clause acted as an accountable person of the buyer and the buyer declared a demand about presentation of an electronic invoice to his address according to clause 6 of this Article;

goods for which the seller carries out the computation of the value added tax in accordance with the specific features established by clause 5 of Article 128 of this Code.

On goods (works, services), property rights, specified in part one of this clause, the payer shall, according to results of the reporting period, create one final electronic invoice which shall be directed to the Portal not later than on the 20th day of the month following the expired reporting period, and which shall indicate:

the total sum of the turnover on realization of goods (works, services), property rights for the reporting period and the total sum of computed value added tax (in the event if the payer has not presented electronic invoices to the address of buyers at their demand);

the total sum of the turnover, exempted from the taxation, on realization of goods (works, services) for the reporting period (if available);

the difference that arises for the reporting period between the total sum of turnover on realization and the total sum of turnover on realization for which the payer presented electronic invoices to the address of buyers at their demand, as well as the difference that arises for reporting period between the total sum of calculated value added tax and the total sum of the value added tax on which the payer presented electronic invoices to the address of buyers at their demand;

8.9. realization to natural persons not acting as individual entrepreneurs of goods for which the computation of the value added tax shall be carried out in accordance with the specific features established by clause 5 of Article 128 of this Code, with the exception of goods upon acquisition of which the said natural person acted as the accountable person of the buyer and the buyer declared a demand about presentation of an electronic invoice to his address according to clause 6 of this Article.

On goods  specified in part one of this clause, the payer shall, according to results of the reporting period, create one final electronic invoice which shall be directed to the Portal not later than on the 20th day of the month following the expired reporting period, and which shall indicate:

the total sum of the turnover on realization of goods (works, services), property rights for the reporting period and the total sum of computed value added tax (in the event if the payer has not presented electronic invoices to the address of buyers at their demand);

the difference that arises for the reporting period between the total sum of turnover on realization and the total sum of turnover on realization for which the payer presented electronic invoices to the address of buyers at their demand, as well as the difference that arises for reporting period between the total sum of calculated value added tax and the total sum of the value added tax on which the payer presented electronic invoices to the address of buyers at their demand;

8.10. increasing of the tax base by sums actually received (to be received) in accordance with provisions of clause 4 of Article 120 of this Code.

9. An electronic invoice, if the obligation of its creation arises for the payer being a buyer, shall be created and sent to the Portal upon:

9.1. acquisition in the territory of the Republic of Belarus of goods (works, services), property rights from foreign organizations not put on record in the tax bodies of the Republic of Belarus, and computation of the value added tax by the payer in accordance with provisions of Article 114 of this Code.

An electronic invoice shall be created on each operation on acquisition of goods (works, services), property rights and be sent by the payer to the Portal not later than on the 20th day of the month following the month in which the moment of actual realization of goods (works, services), property rights occurred in accordance with clause 29 of Article 121 of this Code by the foreign organization not put on record in the tax body of the Republic of Belarus;

9.2. importation of goods from the territory of the member states of the Eurasian Economic Union.

An electronic invoice shall be sent to the Portal not later than the 20th day of the month following the month of acceptance of imported goods for accounting, subject to the following conditions, in aggregate:

payment (setoff) of the value-added tax was effectuated within the time limit established by the legislation;

declaration about importation of goods and payment of indirect taxes, drawn up according to the form approved by the treaty of the Republic of Belarus (later on in this Article – declaration about importation of goods) has been presented.

Upon payment (setoff) of the value added tax in violation of the time limit established by the legislation, an electronic invoice shall be created and sent to the Portal not later than the 20th day of the month following the month in which the following conditions, in aggregate, are met:

the final payment (setoff) of the due sum of the value-added tax was effectuated;

declaration about importation of goods has been submitted to the tax body.

It is allowed to create one electronic invoice when importing goods by several shipping documents from one seller, if such goods are accepted for accounting on one date for one transport document and are reflected in one declaration about importation of goods;

9.3. importation of goods from the territory of states not being member states of the Eurasian Economic Union.

An electronic invoice shall be created and sent to the Portal:

not later than on the 20th day of the month following the month in which release of goods has been effectuated in accordance with the declared customs procedure, subject to observance of the following conditions, in aggregate: payment of the sum of the value added tax has been effectuated and the declaration for goods confirming the release of goods in accordance with the declared customs procedure has been submitted to the customs body;

not later than on the 20th day of the month following the month in which the payment of the value added tax is effectuated, if it is effectuated after the submission to the customs body of the declaration for goods confirming the release of goods in accordance with the declared customs procedure;

not later than the 20th day of the month following the month in which the declaration is submitted to the customs body, if it is submitted after payment of the value added tax and release of the goods in accordance with the declared customs procedure.

10. In case of detection of incomplete data in the electronic invoice presented (sent) earlier or errors requiring the annulment of the mentioned invoice, the payer shall:

10.1. annul the electronic invoice presented (sent) earlier.

If the electronic invoice presented earlier was signed with the electronic digital signature of the buyer, then it is cancelled with upon availability of the consent of the buyer which shall be expressed by signing of the consent with the electronic digital signature of the buyer;

10.2. or present (send) a corrected electronic invoice which annuls the electronic invoice presented (sent) earlier.

A corrected electronic invoice shall contain:

new indicators required for the computation of the value added tax, including zero ones;

reference to the number of the electronic invoice being annulled, presented (sent) earlier.

If the electronic invoice presented earlier was signed with the electronic digital signature of the buyer, then it is cancelled upon availability of the consent of the buyer which shall be expressed by signing with the electronic digital signature of the buyer of the corrected electronic invoice presented by the seller;

11. In the event of a need to correct parameters of the electronic invoice presented (directed) earlier, not requiring annulment of the parameters of the electronic invoice presented (directed) earlier, an additional electronic invoice shall be presented (directed) by the payer which must contain a reference to the number of the electronic invoice presented (directed) earlier.

Presentation (direction) of an additional electronic invoice shall be carried out in the following instances:

upon decreasing (increasing) of the value of goods (works, services), property rights, including the instances of writing-down and writing-off provided by clause 6 of  Article 129 of this Code;

upon partial or full return of goods by the buyer to the seller (partial or full refusal of performed works, rendered services), property rights;

upon increasing of the tax base by sums actually received (to be received) in accordance with provisions of clause 4 of Article 120 of this Code;

upon increasing (decreasing) of the tax base in accordance with provisions of indent two of part two of clause 8, part two of clause 9 of Article 120 of this Code;

upon correction by the seller of the computed sum of the value added tax by the buyer in accordance with clause 7 of Article 129 of this Code;

upon arising of grounds for application of exemption from taxation, of the rate of the value added tax in the amount of zero (0) and/or ten (10) percent in relation to turnovers on realization of goods (works, services), property rights on which the value added tax was computed earlier at the rates in the amount of ten (20) or twenty (10) percent, accordingly.

When an additional electronic invoice is drawn up, a difference between the initial tax base and the tax base after the correction, and also the sum of the value added tax related to the given difference, shall be indicated:

with positive values – in case of correction of the tax base towards an increase;

with negative values – in case of correction of the tax base towards a decrease.

12. In relation to operations on which the payer creates one final electronic invoice in accordance with sub-clauses 8.8 and 8.9 of clause 8 of this Article, an additional electronic invoice is not presented upon:

decreasing (increasing) of the value of goods (works, services);

partial or full return of goods by the buyer to the seller (partial or full refusal of performed works, rendered services);

upon increasing of the tax base in accordance with clause 4 of Article 120 of this Code;

upon increasing (decreasing) of the tax base in accordance with provisions of indent two of part two of clause 8, part two of clause 9 of Article 120 of this Code.

Increasing (decreasing) of the tax base and sums of value added tax shall be carried out in the final electronic invoice to be presented for the reporting period in which decreasing (increasing) of the value of goods (works, services), partial or total return of goods to the seller by the buyers (partial or total refusal of performed works, rendered services) are carried out. Increasing (decreasing) of the tax base in accordance with clause 4, clause two of part two of clause 8, part two of clause 9 of Article 120 of this Code shall be carried out in separate lines by the sums of increasing and by sums of decreasing in the final electronic invoice being presented for the reporting period.

13. Presentation (sending) of an additional electronic invoice which needs not contain a reference to the number of the electronic invoice presented (directed) earlier is allowed in the following instances:

13.1. upon increasing (decreasing) of the tax base in accordance with provisions of indent two of part two of clause 8, part two of clause 9 of Article 120 of this Code.

It is allowed to present such an additional electronic invoice as a whole for a month within the framework of one contract with the buyer, but separately for the sums of increase and for the sums of decrease;

13.2. upon increasing of the tax base in accordance with clause 4 of Article 120 of this Code.

It is allowed to present such an additional electronic invoice as a whole for a month in relation to all buyers;

13.3. for a negative sum of indexation upon realization of natural gas, electric and thermal energy, being presented:

by gas and energy supply organizations making part of the State industrial amalgamation on fuel and gas supply “Beltopgas”, the State industrial amalgamation of electric-power industry “Belenergo”;

by the open joint-stock company "Gasprom transgas Belarus”.

14. Upon realization of goods (works, services), property rights on the basis of contracts of commission, agency and other similar civil-law contracts, presentation of electronic invoices shall be carried out by the commissioner (agent) and another similar person:

14.1. to the buyer in the part of goods (works, services), property rights, realized to him, on the basis of data from electronic invoices presented to the commissioner (agent) and another similar person by the commitent (principal) and other similar person, being payers of the value added tax in the territory of the Republic of Belarus.

In this case the sum of value added tax on goods (works, services), property rights, reflected in the electronic invoice presented to the commissioner (agent) and other similar person by the commitent (principal) and other similar person shall be reflected in the electronic invoice being presented by the  the commissioner (agent) and other similar person to the buyer;

14.2. to the committent (principal) and other similar person in terms of the sum of remuneration received (due) by the commissioner (agent) and other similar person being a payer of the value added tax in the Republic of Belarus.

15. Upon realization in the territory of the Republic of Belarus of goods (works, services), property rights by foreign organizations not being put on record in the tax bodies of the Republic of Belarus on the basis of contracts of commission (agency) and other similar civil-law contracts:

sums of the value added tax computed by the commissioner (agent) and other similar person in accordance with provisions of Article 114 if this Code shall be presented in the electronic invoice being presented to the buyer on the basis of the electronic invoice being directed by him to the Portal in accordance with sub-clause 8.7 of clause 8 and/or sub-clause 9.1 of clause 9 of this Article;

presentation of electronic invoices shall be effectuated by the commissioner (agent) and other similar person being a payer of the value added tax in the Republic of Belarus to the Portal in terms of the sums of remuneration received by him (due to be received) under a contract of commission (agency) and other similar civil law contract with a foreign organization not being put in the tax body of the Republic of Belarus.

16. Upon acquisition of goods (works, services), property rights on the basis of contracts of commission, agency and other similar civil-law contracts, presentation of an electronic invoice to the commitent (agent) and other similar person shall be carried out by the commissioner (agent) and other similar person on the basis of the data from the electronic invoice presented to the commissioner (agent) and other similar person by the seller of goods (works, services) being the payer of the value added tax in the Republic of Belarus. In this case the sum of value added tax on goods (works, services), property rights, reflected in the electronic invoice presented by the commissioner (agent) and other similar person to the commitent (principal) and other similar person shall be indicated from the electronic invoice of the seller presented to the  the commissioner (agent) and other similar person.

Upon importation into the territory of the Republic of Belarus of goods being acquired within the framework of fulfillment of contracts of commission, agency and other similar civil-law contracts, sums of the value added tax paid by the commissioner (agent) and other similar person upon importation of goods shall be presented by the commissioner (agent) and other similar person in the electronic invoice being presented to the commitent (prinicipal) and other similar person.

presentation of electronic invoices shall be carried out by the commissioner (agent) and other similar person to the committent (principal) and other similar person in terms of the sum of remuneration received (due to be received) by the commissioner (agent) and other similar person being a payer of the value added tax in the Republic of Belarus.

17. When buyers acquire goods (works,services), property rights which upon reimbursement of their value are not recognized as taxation object for the value added tax in accordance with provisions of sub-clauses 2.12 and/or .20.2 of clause 2 of Article 115 of this  Code, presentation of an electronic invoice to persons that reimburse the value of such acquired goods (works,services), property rights shall be carried out by the buyer on the basis of data of the electronic invoice presented by the buyer by the seller of goods (works,services), property rights, being the payer of the value added tax in the Republic of Belarus.

In that case the sum of value added tax on goods (works, services), property rights, reflected in the electronic invoice presented according to clauses 7, 8, 10 and 11 of Article 130 of this Code by buyer to persons that reimburse the value of acquired goods (works, services), property rights shall be indicated from the electronic invoice of the seller of goods (works, services), property rights.

Upon taxation by the payer of turnovers on reimbursement in accordance with sub-clauses 9.3 and 9.4 of clause 9 of Article 122 of this Code:

provisions of this clause are also not applied;

presentation of electronic invoices shall be carried out in the order established by this Article as upon realization of goods (works, services), property rights.

18. When the ordering customer (builder) of construction in the interests of third persons (including interestholders) acquires goods (works, services), property rights  and transfers upon completion of the construction to a third person (including interestholder) actually incurred costs on construction of the object, presentation of an electronic invoice to third persons (including interestholders) shall be carried out by the ordering customer (builder) on the basis of data from the electronic invoice presented to the ordering customer (builder) by the seller of goods (works, services), property rights, being the payer of the value added tax in the Republic of Belarus. In this case the sum of value added tax on goods (works, services), property rights, reflected in the electronic invoice presented by the ordering customer (builder) to third persons (including interestholders) shall be indicated from the electronic invoice of the seller of goods (works, services), property rights.

When goods (works, services), property rights in the territory of the Republic of Belarus are realized by foreign organizations not put on record in the tax bodies of the Republic of Belarus, sums of the value added tax computed by the ordering customer (builder) in accordance with Article 114 if this Code shall be presented by the ordering customer (builder) in the electronic invoice being presented to third persons (including interestholders) on the basis of the electronic invoice being directed to the Portal in accordance with sub-clause 8.7 of clause 8 and/or sub-clause 9.1 of clause 9 of this Article.

Upon importation into the territory of the Republic of Belarus of goods being acquired within the framework of fulfillment of contracts of construction in the interests of third persons (including interestholders) and transfer upon completion of the construction to a third person (including interestholder) of sums of the value added tax paid by the ordering customer (builder) upon importation of goods shall be presented by the ordering customer (builder) in the electronic invoice being presented to third persons (including interestholders).

The ordering customer (builder) being a payer of the value added tax in the Republic of Belarus, shall present to third persons (including interestholders) an electronic invoice for turnovers on realization of services of the ordering customer (builder), for which the tax base shall be determined in accordance with clause 33 of Article 120 of this Code.

19. Upon realization of forwarding services, presentation of an electronic invoice to the customer shall be carried out by the forwarding agent based on the amount of remuneration determined in accordance with clause 30 of Article 120 of this Code.

Presentation of an electronic invoice to the customer in relation to expenses on engagement of carriers and other organizations and individual entrepreneurs, rendering services specified in the forwarding contract, but not included in the amount of remuneration of the forwarding agent, shall be carried out by the forwarding agent in accordance with provisions of clause 17 of this Article separately from the electronic invoice being presented by the forwarding agent to the customer in relation to his remuneration.

20. Affiliates of legal persons of the Republic of Belarus, fulfilling tax obligations of those legal persons in accordance with clause 3 of Article 14 of this Code, shall carry out presentation (sending) of electronic invoices in the order established:

20.1. by clause 21 of this Article – in the case of transfer of tax deductions within one legal person of the Republic of Belarus in the order provided for by clause 25 of Article 133 of this Code;

20.2. by this clause for payers – in other cases, including in the case of computation and payment of the value added tax (application of the exemption from the taxation in accordance with part two of sub-clause 2.9 of clause 2 of Article 115 of this Code upon transfer of goods (works, services), property rights within one legal person of the Republic of Belarus.

21. Upon transfer of tax deductions in the order provided by clause 25 of Article 133 of this Code and/or the President of the Republic of Belarus, the transferring party shall present to the recipient of tax deductions an electronic invoice which indicates the transferred sums of the value added tax.

The total sum of tax deductions for the transferring party is decreased by the sum of tax deductions being transferred in accordance with part one of this clause.

22. Upon realization of goods (works, services), property rights, a participant of the simple partnership (contract on joint activity) fulfilling the tax obligation of that partnership and/or trustee being the payer of the value added tax shall present (send) electronic invoices in relation to turnovers on realization of goods (works, services), property rights referred to activities of the simple partnership (participants of the contract on joint activity) and/or trustees in the order established by this Article.

23. A legal person on which functions of the editorial board of a printed mass medium are imposed (later on in this clause – editorial board) is entitled to create one electronic invoice for a calendar month on printed mass media realized for the calendar month (minimal subscription period) through the postal service operator on subscription, which:

23.1. shall be sent to the Portal (without the need of its presenting to the postal service operator) not late than on the 20th day of the month following the reporting period, in terms of printed mass media transferred by the editorial board to the address of the postal service operator for realization to subscribers:

taxpayers of foreign states;

natural persons not being individual entrepreneurs;

23.2. shall be presented to the postal service operator within the time limit established by clause 5 of this Article, in terms of printed mass media transferred by the editorial board to the address of the postal service operator for realization to subscribers, with the exception of subscribers sub-clause of this clause.

231. If in accordance with this article the creation of an electronic invoice is not provided, then for the purposes of clause 1 of Article 97 of this Code for transactions specified in clauses 1 and 2 of Article 88 of this Code (later on in this clause – transaction), an electronic invoice:

shall be sent to the Portal not later than on the 20th day of the month following the expired month, on which falls the date of the transaction indicated in it;

shall be created for each transaction, unless otherwise specified in this clause, indicating as the date of performance of the operation for purchased (imported) goods (works, services), property rights – the date of their acceptance for accounting, for shipped goods (works performed, provided services), transferred property rights – the date of reflection of proceeds from their realization in accordance with Article 168 of this Code;

shall be created based on the results of each month within one recipient (supplier) in the context of the names of transactions, indicating as the date of performance of the operation the last calendar day of the expired month – when banks of the Republic of Belarus, non-bank credit and financial institutions of the Republic of Belarus perform  operations specified in sub-clause 1.37 of clause 1 Article 118 of this Code.

24. In case of impossibility to present (direct) electronic invoices in connection with inaccessibility of the Portal (including because of absence of electric power supply  and/or breakdown of equipment (of a part thereof) of the Portal, insufficiency of resources of the Portal, inaccessibility or absence of telecommunication lines to the Portal, including insufficiency of channel width of telecommunication lines to the Portal, the payer is obliged, not later than five working days from the restoration of operability of the Portal, to present (direct) an electronic invoice in accordance with the requirements of this Article.

Article 132. Tax deductions

1. Tax deductions are deemed to be, unless otherwise established by clause 2 of this Article, the sums of value added tax:

1.1. presented by the buyers put on record in the tax bodies of the Republic of Belarus and being the payers to the payer upon acquisition by the latter of goods (works, services), property rights in the territory of the Republic of Belarus;

1.2. paid by the payer upon importation of goods into the territory of the Republic of Belarus;

1.3. paid to the budget upon acquisition of goods (works, services), property rights in the territory of the Republic of Belarus from foreign organizations not put on record in the tax bodies of the Republic of Belarus.

2. Tax deductions for individual entrepreneurs are recognized sums of the value added tax, specified in clause 1 of this Article, with the exception of sums of the value added tax on goods (works, services), property rights, used for needs not related to carrying out entrepreneurial activity.

3. The sum of value added tax presented upon acquisition of goods (works, services), property rights in the territory of the republic of Belarus is deemed to be the sum of value added tax:

singled out by the sellet to the buyer in electronic invoices;

computed and paid to the budget upon acquisition of goods (works, services), property rights in the territory of the Republic of Belarus from foreign organizations not put on record in the tax bodies of the Republic of Belarus.

The sum of value added tax paid upon importation of goods into the territory of the Republic of Belarus is deemed to be:

the sum of value added tax paid to the budget upon release of the goods in accordance with the declared customs procedure;

the sum of value added tax calculated and paid to the budget upon importation of goods from the territory of the member states of the Eurasian Economic Union.

4. Unless otherwise established by this Chapter, the sums of value added tax presented to the payer upon acquisition of goods (works, services), property rights irrespective of the date of performing settlements for goods (works, services), property rights being acquired or paid by the payer upon importation of goods into the territory of the Republic of Belarus after their reflection in the accounting and the purchase ledger if the conduct of the purchase ledger is carried out by the payer are subject to be deducted.

The conduct of the purchase ledger is established by the accounting policy of the organization. The purchase ledger shall be conducted according to the established form and be filled in according to the established order.

The organization is entitled, in the course of the tax period, to stipulated in the accounting policy the conduct of the purchase ledger. In that instance the conduct of the purchase ledger is carried out until the end of the respective tax period.

For a foreign organization, whose duty to compute and pay the value added tax arose in connection with the circumstances specified in sub-clause 2.2 of clause 2 of Article 114 of this Code, the deduction of the sum of value added tax on purchased goods (works, services), property rights shall be made after putting on record of such a foreign organization in the tax body of the Republic of Belarus on the basis of electronic invoices received from the sellers of those goods (works, services), property rights, subject to the conditions established by this Article for carrying out the deduction of the sums of value added tax.

5. Tax deductions are performed:

5.1. upon acquisition of goods (works, services), property rights by the payer in the territory of the Republic of Belarus – on the basis of  electronic invoices received from sellers of those goods (works, services), property rights subject to signing of electronic invoices by the payer by the electronic digital signature;

5.2. upon acquisition of goods (works, services), property rights by the payer in the territory of the Republic of Belarus from foreign organizations not put on record in the tax bodies of the Republic of Belarus – on the basis of the following documents:

tax declarations (calculations) for the value added tax;

electronic invoices sent by the payer to the Portal;

5.3. upon importation of goods into the territory of the Republic of Belarus (with the exception of importation from the territory of the member states of the Eurasian Economic Union) – on the basis of the following documents:

declarations for goods released in accordance with the declared customs procedure;

documents (copies thereof) confirming the fact of payment of the value added tax upon importation of goods into the territory of the Republic of Belarus;

electronic invoices sent by the payer to the Portal;

5.4. upon importation of goods into the territory of the Republic of Belarus  from the territory of the member states of the Eurasian Economic Union – on the basis of the following documents:

tax declarations (calculations) for the value added tax;

documents confirming the fact of payment of the value added tax upon importation of goods from the territory of member states of the Eurasian Economic Union;

electronic invoices sent by the payer to the Portal;

5.5. upon acquisition of transport services on carriage of passengers and luggage – on the basis of  electronic invoices received from sellers of those services, subject to signing of electronic invoices by the payer by the electronic digital signature;

5.6. upon acquisition of print mass media by subscription – on the basis of  electronic invoices received from sellers, subject to signing them by the payer by the electronic digital signature;

5.7. upon lease (financial lease (leasing)) of objects of lease (leasing objects) – on the basis of  electronic invoices received from the lessor, subject to signing of electronic invoices by the lessee by the electronic digital signature;

5.8. on goods acquired at retail prices with the  use of cash equipment – on the basis of the following documents:

payment documents formed by the cash equipment if in such documents the rate and the sum of value added tax are indicated as details of the payment document;

payment documents formed by the cash equipment in which the rate and the sum of value added tax are singled out by the payer that realizes goods at retail prices at the request of the buyer in the order established by clause 4 of Article 130 of this Code – in the instance when in such documents, the rate and the sum of value added tax are not indicated as details of the payment document;

electronic invoices received from sellers provided that they are signed by the payer with the electronic digital signature.

6. Sums of the value added tax presented to the payer upon acquisition of goods (works, services), property rights are recognized as a tax deduction in the reporting  period on which the latest from the following dates falls:

the date of reflection of the sum of value added tax in the accounting for acquired, including those received gratuitously, goods (works, services), property rights;

the date of reflection of the sum of value added tax in the purchase ledger, if the conduct of the purchase ledger is carried out by the payer;

the date when the payer signed with the electronic digital signature the electronic invoice, being a basis for deducting the sum of value added tax, or one of the dates chosen by the payer in accordance with part two of this clause.

When the payer signs with the electronic digital signature the electronic invoices:

not later than on the 20th day of the month following the reporting period in which the conditions established by this Article for deducting the value added tax sums are met and simultaneously not later the the date of submission of the tax declaration (calculation) on the value added tax for that reporting period, the payer is entitled to deduct the value added tax sums for the mentioned reporting period, provided that the date of performance of the operation in the electronic invoice falls on the same reporting period;

after the submission of the tax declaration (calculation) on the value added tax for the reporting period, in which the conditions established by this Article for deducting the value added tax are met, and the date of the operation in the electronic invoice falls on the same reporting period, the payer is entitled to deduct the value added tax sums for that reporting period for which the established deadline for the submission of the tax declaration (calculation) on value added tax follows after the payer signed the electronic invoices with the electronic digital signature.

7. Valued added tax sums paid upon importation of goods into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union shall be recognized as a tax deduction in the reporting period on which the latest from the following dates falls:

the date of acceptance of imported goods for accounting;

the last day of the month for which the tax declaration (calculation) on the value-added tax is presented, reflecting the value added tax sum computed upon importation of goods from the territory of the member states of the Eurasian Economic Union – in the event of its submission within the limit established by the legislation;

the date of submission of the tax declaration (calculation) on the value-added tax is presented, reflecting the value added tax sum computed upon importation of goods from the territory of the member states of the Eurasian Economic Union, in the event of its submission after the time limit established by the legislation;

the date of payment of the value added tax to the budget or another date chosen by the payer in accordance with part two of this clause;

the date of reflection of the sum of value added tax in the accounting;

the date of reflection of the sum of value added tax in the purchase ledger, if the conduct of the purchase ledger is carried out by the payer;

the date of sending by the payer of the electronic invoice, being a basis for deducting the sum of value added tax, to the Portal or another date chosen by the payer according to part two of this clause.

Upon reflecting the value added tax sum computed upon importation of goods from the territory of the member states of the Eurasian Economic Union in the tax declaration (calculation) on the value added tax, and its paying to the budget within the established time limits, the payer is entitled to deduct the value added tax sum for that reporting period on which the date of acceptance of goods for accounting falls, if, not later than the date of the submission of the tax declaration (calculation) on the value-added tax for that reporting period:

the said sum of the value added tax was paid to the budget;

the electronic invoice was sent to the Portal.

8. Valued added tax sums paid upon importation of goods into the territory of the Republic of Belarus from the territory of the states not being member states of the Eurasian Economic Union shall be recognized as a tax deduction in the reporting period on which the latest from the following dates falls:

the date of acceptance of imported goods for accounting;

the date of submission of the declaration for goods;

the date of release of the goods in accordance with the declared customs procedure;

the date of payment of the value added tax sum to the budget;

the date of presenting the electronic invoice to the Portal or another date chosen by the payer according to part two of this clause.

|When the payer sends an electronic invoice to the Portal:

not later than on the 20th day of the month following the reporting period in which the conditions established by this Article for deducting the value added tax sums are met and simultaneously not later the the date of submission of the tax declaration (calculation) on the value added tax for that reporting period, the payer is entitled to deduct the value added tax sums for the mentioned reporting period, provided that the date of performance of the operation in the electronic invoice falls on the same reporting period;

after the submission of the tax declaration (calculation) on the value added tax for the reporting period, in which the conditions established by this Article for deducting the value added tax are met, and if the date of the operation in the electronic invoice falls on the same reporting period, the payer is entitled to deduct the value added tax sums for that reporting period for which the established deadline for the submission of the tax declaration (calculation) on value added tax follows after the payer sent the electronic invoice to the Portal.

9. The value added tax sums computed by the payer upon acquisition of goods (works, services), property rights in the territory of the Republic of Belarus from foreign organizations not being put on record in the tax bodies of the Republic of Belarus are recognized as paid to the budget on the 22nd day of the month of submission of the tax declaration ( calculation) on the value added tax for the reporting period for which, in accordance with Article 114 of this Code, the value added tax sums for such goods (works, services), property rights have been computed.

10. Provisions of this Article and of Article 133 of this Code, determining the order of application of tax deductions:

10.1. concerning contracts of lease (financial lease (leasing)) shall be also applied in relation to contracts of lease of dwelling premise and gratuitous use;

10.2. by commitments and/or principals shall be also applied for consignors and other similar persons;

10.3. by commitments and/or agents are also applied for consignees and other similar persons.

11. Sums of value added tax presented upon acquiring or paid upon importation of goods (works, services), property rights into the territory of the Republic of Belarus, including fixed assets and intangible assets, may, without reflection thereof on accounts for recording keeping of the value added tax, be assigned by the payers on increasing the value of goods (works, services), property rights.

12. Organizations that do not carry out entrepreneurial activity in the territory of the Republic of Belarus (including foreign organizations and representative offices of foreign organizations accredited under the established procedure) assign the sums of value added tax presented upon acquiring or paid upon importation of goods (works, services), property rights into the territory of the Republic of Belarus on increasing of the value of goods (works, services), property rights.

13. Payers that realize acquired goods turnovers on realization of which are exempted from the taxation assign the sums of value added tax presented upon acquiring or paid upon importation of goods (works, services), property rights into the territory of the Republic of Belarus on increasing of the value of goods on the date of putting the goods on records.

14. Individual entrepreneurs not recognized as payers of the value added tax upon realization of goods (works, services), property rights, organizations and individual entrepreneurs applying special tax regimes without computing and paying the value added tax shall assign on increasing the value of acquired (imported) goods (works, services), property rights of the value added tax sums:

paid by them upon importation of goods;

presented to them upon acquisition of goods (works, services), property rights;

paid by them to the budget upon acquisition of goods (works, services), property rights in the territory of the Republic of Belarus from foreign organizations not put on record in the tax bodies of the Republic of Belarus.

This provision also applies to organizations and individual entrepreneurs specified in part one of this clause, in the case when upon realization (shipment) of goods (works, services), property rights they have excessively presented and computed the value added tax in accordance with sub-clause 7.1 of clause 7 of Article 129 of this Code.

Article 133. Order of application of tax deductions

1. Deduction of sums of value added tax shall be effectuated on an accrual basis:

1.1. within the limits of the value added tax sums computed on realization of goods (work, services), property rights, unless otherwise established by sub-clause 1.2 of this clause;

1.2. in full, regardless of the value added tax sums computed on realization of goods (work, services), property rights, in the instances established by clause 27 of this Article, and in the instances established by the President of the Republic of Belarus.

2. Value added tax sums are not included into costs of the payer taken into account for the taxation, with the exception of the instances established by clause 3 of this Article.

3. Value added tax sums are included into costs of the payer taken into account for the taxation concerning goods (with the exception of fixed assets and intangible assets), works, services, property rights, used for production and/or realization of:

3.1. goods (works, services), property rights, turnovers on realization of which are exempted from the taxation in accordance with the legislation.

Provisions of this sub-clause shall be also applied by by peasant’s (farmer’s) households being exempted from the value added tax according to clause 1 of Article 384 of this Code in the part of activity on production of produce of crop husbandry (with the exception of ornamental plants and produce of floriculture), produce of animal husbandry (except for fur farming), fish husbandry and apiculture;

3.2. goods the place of realization of which is not recognized the territory of the Republic of Belarus, including goods being realized to the population at exhibitions-fairs held in the territory the member states of the Eurasian Economic Union.

Provisions of this sub-clause are not applied in relation to turnovers on realization of:

goods (works, services), property rights by Belarusian organizations (affiliates of legal persons of the Republic of Belarus) registered as payers outside the Republic of Belarus;

goods specified in part one of sub-clause 27.7 and/or part one of sub-clause 27.8 of clause 27 of this Article 27, deducting of the value added tax sums on which is performed in full.

4. The value added tax sums on turnovers on realization specified in sub-clause 3.1 and part one of sub-clause 3.2 of clause 3 of this Article shall be determined in accordance with the procedure established by Article 134 of this Code.

5. Determination of sums of value added tax subject to be deducted on acquired (imported) fixed assets and intangible assets is performed based on the sums of value added tax falling on the full value thereof.

6. The sums of value added tax falling on the costs:

6.1. assigned on increasing of the value of fixed assets and intangible assets accepted for put on records earlier may be accepted for deduction under the procedure established for the value added tax on acquired fixed assets and intangible assets.

Sums of value added tax falling on costs incurred by the payer prior to the beginning of reconstruction (modernization) of objects of fixed assets accepted earlier for putting on record and being investments in long term asses of the payer may be accepted for deductions in the order established for deduction of the value added tax on acquired fixed assets from the date of beginning of the construction (on modernization – from the date of its commencement);

6.2. on creation (installation, construction, fabrication) by the payer of objects of fixed assets and intangible assets may be accepted for deduction under the procedure established for deduction of the value added tax on acquired fixed assets and intangible assets.

In that instance sums of value added tax falling on costs incurred by the payer prior to the beginning of construction of objects of fixed assets being created, accepted earlier for putting on record, and being investments in long term asses of the payer may be accepted for deductions in the order established for deduction of the value added tax on acquired fixed assets from the date of beginning of the construction;

6.3. on creation by the payer of objects of engineering, transport, social  infrastructure, finished by construction, but not registered in the established order as objects of immovable property, being gratuitously transferred in the ownership of the state, are accepted for deductions in the order established for deduction of the value added tax on acquired goods (works, services), property rights;

6.4. Made by the ordering customer, builder, interestholder, constituting the value of goods (works, services) transferred gratuitously to state operating organizations during the reconstruction, repair of engineering and transport infrastructure facilities, which they have on the right of economic management (operative administration), in connection with the fulfillment of technical conditions for engineering and technical support of the facility, obtained in accordance with the established order for purposes of the construction of the facility, are accepted for deduction in accordance with the order established for the deduction of value added tax on purchased goods (works, services), property rights.

7. When leasing objects are acquired in the territory of the Republic of Belarus under contracts of financial leasing stipulating the buy-out of the leasing object, the value added tax sums presented in the part of contractual value of the leasing object shall be accepted for deduction:

under the procedure established for deduction of the value added tax on acquired fixed assets;

based on the date of receiving the leasing object determined in accordance with clause 9 of Article 121 of this Code.

8. Deduction of sums of the value added tax shall be performed in relation to:

goods being placed under customs procedures of temporary importation (acceptance), by the person who carried out the importation of the good, under the procedure established for deduction of the value added tax on acquired goods (works, services);

objects of lease (leasing objects) acquired by the lessor outside the Republic of Belarus, paid upon importation  – by the lessor.

Upon acquisition of objects of lease (leasing objects) from foreign organizations and foreign citizens, sums of the value added tax paid by the lessee upon importation of objects of lease (leasing objects) are subject to deduction by the lessee after the receipt of the object of lease (leasing object).

9. Upon acquisition by the payer of goods outside the Republic of Belarus for which the customs control shall be carried out and the value added tax shall be paid in foreign currency, the value added tax sum subject to deduction shall be determined on the basis of the electronic invoice sent by the payer to the Portal and drawn up in Belarusian rubles based on the official rate of Belarusian ruble toward a respective foreign currency, established by the National Bank as of the date of release of goods in accordance with declared customs procedure.

10. When acquiring goods (works, services), property rights in the territory of the Republic of Belarus for foreign currency under contracts providing for payments in foreign currency from sellers who are payers of the value added tax in the Republic of Belarus, the value added tax sum subject to deduction shall be determined as the value added tax sum in Belarusian rubles specified in the electronic invoice presented by the seller to the buyer.

11. Sums of value added tax paid to the budget upon acquisition of goods (works, services), property rights in the territory of the Republic of Belarus from foreign organizations not put on record in the tax bodies of the Republic of Belarus:

for foreign currency, are subject to be deducted based on the official rate of the foreign currency established by the National Bank on the day of payment (including advance payment) or another termination of obligations by the buyers (ordering customers) of those goods (works, services), property rights and indicated in the electronic invoice directed by the buyer to the Portal;

are subject to be deducted in the reporting period following the period of their calculation under the procedure established for deduction of the sums of value added tax presented upon acquisition of goods (works, services), property rights.

12. The deductible value added tax sums shall be determined, when acquiring goods (works, services), property rights in the territory of the Republic of Belarus from sellers who are payers of the value added tax in the Republic of Belarus,  under contracts in which the sum of obligations is expressed:

in Belarusian rubles equivalent to a sum in foreign currency, – as the  sum of the value added tax in Belarusian rubles indicated in electronic invoices (additional electronic invoices) presented by the seller to the buyer;

in foreign currency equivalent to a sum in another foreign currency, – as the  sum of the value added tax in Belarusian rubles indicated in electronic invoices (additional electronic invoices) presented by the seller to the buyer.

A correction of tax deductions by the sum of difference (positive or negative) specified in additional electronic invoices shall be effectuated for the reporting period in which additional electronic invoices have been signed by the buyer with the electronic digital signature or for the reporting period selected by the buyer according to part three of this clause.

When the buyer signs with the electronic digital signature the additional electronic invoices:

not later than the date of submission of the tax declaration (calculation) on the value added tax for the reporting period on which the date of the transaction indicated in the additional electronic invoice falls, the buyer is entitled to increase (decrease) tax deductions for that reporting period;

after the submission of the tax declaration (calculation) on the value added tax for the reporting period on which the date of the operation specified in the additional electronic invoice falls, the buyer is entitled to increase (decrease) tax deductions for that reporting period, the deadline for the submission of the tax declaration (calculation) on value-added tax for which follows after the buyer's signing with the electronic digital signature of additional electronic invoices.

13. Upon importation of goods into the territory of the Republic of Belarus as give-and-take raw materials (materials), sums of the value added tax collected by the customs bodies and paid by the payer on instructions of a foreign organization (natural person) – ordering customer of works on production of goods from give-and-take raw materials (materials), are subject to be deducted by the payer after the payment thereof to the budget of the Republic of Belarus, provided that the mentioned sums of value added tax are not subject to be reimbursed by the ordering customer.

14. Upon acquisition of goods (works, services), property rights by the commissioner (agent), other similar person on instructions of the commitent (principal), other similar person, the value added tax sums singled out by the seller are subject to be deducted by the commitent (principal).

Upon importation of goods into the territory of the Republic of Belarus on instructions of the commitment (principal), another similar person, sums of the value added tax paid by the commissioner (agent), another similar person are subject to be deducted by the commitent (principal), another similar person after the payment thereof to the budget.

The value added tax sums specified in parts one and two of this clause shall be accepted for deduction by the committent (principal), another similar person on the basis of electronic invoices presented by the commissioner (attorney), another similar person in accordance with clause 16 of Article 131 of this Code.

15. Sums of value added tax presented upon acquisition or paid upon importation of goods (works, services), property rights, falling on turnovers on gratuitous transfer of goods (works, services), property rights are subject to be deducted under the procedure established for deduction of the value added tax on goods (works, services), property rights taxable at the rate in the amount of 20 percent, irrespective of the fact whether this gratuitous transfer is taxable with the value added tax or is exempted from the taxation with value added tax.

Provisions of part one of this clause are not applied:

in relation to the value added tax sums  falling on costs on creation of objects of engineering, transport, social  infrastructure, and their redevelopment, finished by construction, but not registered in the established order as objects of immovable property;

in relation to the value added tax sums on goods (works, services), property rights transferred gratuitously within one legal person;

in relation to the value added tax sums on property being transferred gratuitously by an organization to its successor (successors) upon reorganization of that organization;

in relation to the value added tax sums on property being transferred by an as contributions to the statutory funds of commercial organizations;

in relation to the value added tax sums falling on the property being transferred by an organization to its participant (shareholders) in the amount not exceeding its contribution in the statutory fund of this organization upon its liquidation or withdrawal (expulsion) of the participant from participants of the organization, and also not exceeding a part of its contribution to the statutory fund of this organization upon reduction of the size of the statutory fund;

in relation to the value added tax sums that are not subject to deduction according to indent three of sub-clause 24.9 of clause 24 of Article 133 of this Code;

in case of assigning the sums of value added tax presented upon acquisition of or paid upon importation of goods (works, services), property rights, transferred (performed, rendered) gratuitously to increase of their value or at the expense of means of the budget (budgets of state non-budgetary funds) gratuitously received;

in case of acquisition of goods (works, services), property rights, transferred (performed, rendered) gratuitously, under which sums of the value added tax have not been presented to the payer by the sellers of goods (works, services), property rights or have not been paid by the payer upon importation;

in the respect to the sums of value added tax on goods (works, services) being gratuitously transferred by the ordering customer, builder, interestholder to state operating organizations during the reconstruction, repair of engineering and transport infrastructure facilities, which they have on the right of economic management (operative administration), in connection with the fulfillment of technical conditions for engineering and technical support of the facility, obtained in accordance with the established order for purposes of the construction of the facility.

16. For the purposes of determining the sum of value added tax subject to deduction in the order established by part one of clause 15 of this Article, the payer is entitled, in the tax period in which goods (works, services), property rights have been transferred (performed, rendered) gratuitously, to use at his option one of the methods of distribution of tax deductions:

16.1. method of separate accounting (without mandatory indication of the decision concerning the choosing the given method in the accounting policy of the organization (decision of the individual entrepreneur), having determined the given sum:

as the value added tax sums actually presented upon acquisition (paid upon importation) of goods (works, services), property rights, gratuitously transferred (performed, rendered);

or as tax deductions equal to 20 percent of the value of goods (works, services), property rights, gratuitously transferred (performed, rendered);

16.2. method of specific weight, having included operations on gratuitous transfer of goods (works, services), property rights, including those not recognized as realization or taxation object for the value added tax in accordance with the legislation, in the total sum of turnover on realization according to sub-clause 4.1.2 of clause 4 of Article 134 of this Code.

17. In the event of return by customs bodies to the payer of sums of the value added tax paid earlier and reflected in the tax deductions, decreasing of the sum of tax deductions is performed in the reporting period in which the return of value added tax sums has been performed.

When the payer submits a tax declaration (calculation) on the value added tax with introduced changes and/or additions for decreasing the value added tax sum computed previously upon importation of goods from the territory of member states of the Eurasian Economic Union, previously paid upon importation of goods and reflected in the tax deductions, the decreasing of the sums of tax deductions shall be effectuated in the reporting period:

in which the return of goods has been effectuated, – in the case of the return of previously imported goods, unless otherwise specified in part three of this clause;

for which the tax declaration (calculation) on the value added tax has been submitted with introduced changes and/or additions for decreasing the value added tax sum computed previously upon importation of goods from the territory of member states of the Eurasian Economic Union, – in other cases.

Upon return of goods previously imported from the territory of the member states of the Eurasian Economic Union, for their repair or replacement:

the tax declaration (calculation) on the value added tax with introduced changes and/or additions for decreasing the value added tax sum computed previously upon importation of goods from the territory of member states of the Eurasian Economic Union, shall not be submitted, unless otherwise established by a treaty of the Republic of Belarus constituting the law of the Eurasian Economic Union;

by the sums of value added tax previously paid when importing goods being returned and reflected in the composition of tax deductions, no reduction in the sums of tax deductions is made, unless a tax declaration (calculation) for value added tax is submitted in accordance with indent two of this part.

18. When the amount of the value added tax sum is changed in the direction of decrease or increase, the buyers shall make the corresponding correction of tax deductions in the following cases:

a full or partial return of goods by the buyer to the seller. This provision is not applied in relation to goods returned to their seller for repair or substitution, unless their value has changed;

refusal of works performed (services rendered), property rights transferred;

decreasing (increasing) of the value of goods (works, services), property rights.

Correction of the tax deductions shall be effectuated:

in the direction of decrease in the reporting period on which fall the return of goods made by the buyer, refusal of works performed (services rendered), transferred property rights, decreasing of the value of goods (works, services), property rights, agreed to by the seller and the buyer in the established order;

in the direction of increase in the reporting period in which the conditions according to clause 2 of Article 129 of this Code and conditions for the effectuation of tax deductions for the value added tax in accordance with Article 132 of this Code and this Article have been met in aggregate after the buyer has signed with the electronic digital signature the additional (corrected) electronic invoice presented by the seller.

19. Provisions of clause 18 of this Article are subject to application also by the buyer that applied the special taxation regime without payment of the value added tax in the period of return of goods (refusal of performed works, rendered services), property rights or decrease of the value of goods (works, services), property rights if sums of value added tax presented upon acquisition thereof were taken into account by him in tax deductions within the tax period preceding the tax period in which take place:

return of goods by the buyer to the seller;

refusal of works performed (services rendered), property rights transferred;

decreasing of the value of goods (works, services), property rights.

Provisions of part one of this clause shall also be applied by the buyer – individual entrepreneur who is not a payer of the value added tax upon realization of goods (works, services), property rights in the period in which returned of goods, refusal of works performed (services rendered), property rights transferred or a reduction in the value of goods (work, services), property rights have been effectuated.

20. In the event of writing down and/or writing off printing runs of periodic printed mass media not realized at retail prices by legal persons carrying out trade in the territory of the Republic of Belarus and communications organizations within the time limits established by the contract, which in accordance with the conditions of the contract are not subject to return and settlements for which are not effectuated, the legal persons carrying out trade in the territory of the Republic of Belarus and communication organizations shall decrease tax deductions in the reporting period in which the  writing-down and writing-off  of periodical printed media not sold at retail prices have been effectuated.

21. In the event of decrease (increase) of the value of goods (works, services), property rights, specified in part one of clause 38 of Article 120 of this Code, upon expiration of the reporting period in which the goods (works, services), property rights have been received (performed, rendered) within one legal person, a corresponding correction of tax deductions by the sum of a difference arising between the changed and the previous value of the received goods (performed works, rendered services), property rights shall be effectuated.

Correction of tax deductions shall be effectuated in the order established by part two of clause 18 of this Article.

22. Buyers that acquired goods (works, services), property rights for which the seller incorrectly indicated the value added tax sum shall accept for deduction the sum of value added tax (excessively presented, including due to the retrospective effect given to normative legal acts or presented in a sum less than the one established in this Chapter) shall accept for deduction in the order established by Article 132 of this Code the value added tax sum singled out by the seller in the electronic invoices and primary accounting documents, with the exception of correction of the indicated value added tax sums in the direction of decrease on the basis of acts of settlement checking acts signed by the seller and the buyer.

Decrease of the sums of tax deductions by the buyer shall be effectuated within the month when the settlement checking act between the seller and the buyer was drawn up and signed.

23. Tax deductions are subject to be decreased by the individual entrepreneur by sums of the value added tax on goods (works, services), including fixed assets and intangible assets, property rights, used for needs not related to carrying out entrepreneurial activity, and by the individual entrepreneur being in the process of termination of activities – also on goods, including fixed assets, remaining in the ownership as of the date of submission to the registering body of the application for termination of activities.

Decrease of tax deductions shall be effected by the individual entrepreneur:

by the value added tax sums in the amount accepted earlier for deduction, in relation to fixed assets, intangible assets – in the amount of a sum proportionally to the remaining value without account of the revaluation;

in the reporting period in which goods (works, services), including fixed assets and intangible assets, property rights, are used for needs not related to carrying out entrepreneurial activity, and on goods, including fixed assets, remaining in the ownership as of the date of submission to the registering body of the application for termination of activities – in the reporting period in which a decision about termination of entrepreneurial activities is adopted. Decreasing of tax deductions for goods, including fixed assets remaining in the ownership on the date of submission to the registering body of the application for termination of activities, shall be reflected by the individual entrepreneur in the tax declaration (calculation) submitted in accordance with the requirements of indent two of part one of clause 1 of Article 44 of this Code.

Provisions of this clause are to applied also by the individual entrepreneur not being the payer of the value added tax upon realization of goods (works, services), property rights in the period of using goods (works, services), including fixed assets and intangible assets, property rights, for needs not related to carrying out entrepreneurial activity, and/or in the period of termination of entrepreneurial activities, if sums of the value added tax presented upon acquisition or importation thereof were accounted by him in tax deductions in the reporting (tax) period preceding the reporting (tax) period in which the mentioned actions have been effectuated.

24. The following sums of value added tax are not subject to be deducted:

24.1 those included into the costs of the payer:

24.1.1. being taken into account for the taxation;

24.1.2. upon realization and/or redemption of securities, specified in Article 179 of this Code;

24.2. those not reflected by the payer in:

24.2.1. the purchase ledger, when the conduct of the purchase ledger is carried out by the payer;

24.2.2. accounting;

24.2.3. in the inventory book of income and expenditure of organizations and individual entrepreneurs, applying the simplified taxation system;

24.2.4. in record keeping of incomes and expenses of individual entrepreneurs;

24.3. those charged to the increase of the value of goods (works, services), property rights (including fixed assets and intangible assets);

24.4. those presented upon acquisition or paid upon importation of goods (works, services), property rights at the expense of means of the budget or budgets of state non-budgetary funds, received gratuitously. The mentioned sum of value added tax are referred to the expense of these sources or to the increase of the value of goods (works, services), property rights.

Provisions of this sub-clause are not applied if:

means received from the mentioned sources are included (to be included) in the tax base;

acquisition (importation) of goods (works, services), property rights is performed at the expense of sums of subsidies granted from the budget in relation to the application by the payer of prices determined (regulated) by the legislation or privileges granted to certain categories of citizens in accordance with the legislation, with the exception of sums of subsidies specified in clause 36 of Article 120 of this Code;

24.5. from foreign organizations carrying out activity through a permanent representation in the territory of the Republic of Belarus, actually presented upon acquisition (paid upon importation) of:

goods being transferred within one foreign legal person outside the Republic of Belarus;

goods (works, services), property rights, used for production (creation) of goods being transferred within one foreign legal person outside the Republic of Belarus.

When it is impossible to determine of the value added tax sums actually presented upon acquisition  (paid upon importation) on operations provided by part one of this clause or upon transfer of goods within one foreign legal person, the value added tax sums upon importation of which are not yet paid, tax deductions equal to 20 percent of the value of goods transferred are not subject to deduction, and in relation to fixed assets, intangible assets, income-bearing investments in material assets – equal to 20 percent of the remaining value without account of the revaluation.

The transferring party shall decrease the value added tax sums presented upon acquisition (paid upon importation) of goods (works, services), property rights are decreased by the sum specified in part two of this sub-clause;

24.6. for organizations engaged in forest husbandry, those presented upon acquisition or paid upon importation of goods (works, services), property rights at the expense of means of industrial production and transferred for conducting the forest husbandry.

The mentioned sums of value added tax are referred to the expenses on the estimate for conducting forest husbandry;

24.7. for forwarding agent, those presented upon acquiring or paid upon importation of goods (works, services), property rights:

not recognized, when the customer reimburses their value, as taxation objects for the value added tax in accordance with sub-clause 2.12.5 of clause 2 of Article 115 of this Code;

used for the customer when performing obligations under the forwarding contract and the cost of which is not subject to reimbursement to the forwarding agent by the customer;

24.8. those presented upon acquisition or paid upon importation of goods (works, services), property rights, not recognized, when their value is reimbursed, as taxation objects for the value added tax in accordance with sub-clauses 2.12.2 and/or 2.20.2 of clause 2 of article 115 of this Code.

In case of taxation by the payer, in accordance with sub-clauses 9.3 and/or 9.4 of clause 9 of Article 122 of this Code, of turnovers on reimbursement of the value of acquired goods (works, services), property rights:

provisions of this sub-clause are also not applied;

the value added tax sums presented upon their acquisition shall be recognized as tax deductions in the order established by Article 132 of this Code;

24.9. those presented upon acquiring or paid upon importation of goods (works, services), property rights, not being recognized:

upon reimbursement of their value as taxation objects for the value added tax in accordance with sub-clauses 2.12.1, 2.12.3 and 2.12.4, 2.12.6 and 2.12.7 of clause 2 of Article 115 of this Code;

as taxation objects for the value added tax in accordance with sub-clauses 2.6, 2.8, 2.15, 2.22 of clause 2 of Article 115 of this Code;

24.11. those paid by the by the commissioner (agent), another similar person to the budget upon acquisition of goods (works, services), property rights in the territory of the Republic of Belarus from foreign organizations not put on record in the tax bodies of the Republic of Belarus, in the event of reimbursement to them of these sums of value added tax by the commitent (principal), another similar person.

Provisions of this sub-clause also cover organizations and individual entrepreneurs specified in clause 4 of article 114 of this Code;

24.11. those presented upon acquiring or paid upon importation of goods (works, services), property rights connected with receiving incomes (revenue) in the part of carrying out:

lottery activity;

activity on holding electronic interactive games;

activities in the field of gambling

activity on providing services in the field of agro-ecotourism;

activity on performance of operations with non-deliverable off-exchange financial instruments (activity on off-exchange market Forex), initiated by legal and natural persons;

activity on which the single tax from individual entrepreneurs and other natural persons is paid.

For the purposes of determining non-deductible value added tax sums on goods, including fixed assets and intangible assets (works, services), property rights used:

directly for the purposes of carrying out the activities specified in part one of this sub-clause, the value added tax sums shall be accepted by direct counting;

at the same time for the purposes of carrying out the activities specified in part one of this sub-clause, and for the purposes of production and/or realization of goods (works, services), property rights, turnovers on realization of which are recognized as taxation objects for the value added tax - the value added tax sums shall be distributed on an accrual basis between the specified types of activity in proportion to the revenue (income) received on the corresponding activity or on another distribution criterion determined by the payer according to the accounting policy of the organization (decision of the individual entrepreneur);

24.12. those subject to transfer by the ordering customer (builder) to third persons (including interestholders) in accordance with clause 12 of Article 130 of this Code.

When construction is conducted prior to engagement of a third person (including interestholder), sums of the value added tax accepted earlier for deduction by the ordering customer (builder) on goods (works, services), property rights, which are not investments in long term assets of the ordering customer (builder), are subject to restoration by the ordering customer (builder) on the date of conclusion of the contract with the third person (including the interestholder);

24.13. on goods (works, services), including fixed assets and intangible assets, property rights, used by individual entrepreneurs for needs not related to carrying out entrepreneurial activity;

24.14. for individual entrepreneurs that ceased to be recognized as payers of the value added tax upon realization of goods (works, services), property rights assign, –  presented upon acquisition or paid upon importation of goods (works, services), property rights into the territory of the Republic of Belarus and not accepted for deduction in the reporting period in which they were recognized as payers. The mentioned value added tax sums shall be are referred to the increase of the value of acquired (imported) goods (works, services), property rights;

24.15. on goods  the event of their damage or loss, with the exception of:

damage, loss of goods in connection with extraordinary circumstances: fire, breakdown, natural disaster, road accident;

death (mortality) of animals due to the occurrence of a contagious (dangerous) animal disease with regard to which a quarantine is established in the order established by the legislation;

damage, loss of fixed assets and intangible assets.

For the purposes of application of this sub-clause:

damage of goods is understood deterioration of all or some qualities (properties) of the good as a result of which the good cannot be used for purposes of realization and/or in production of products (performance of works, rendering of services);

loss of goods means the waste (including shortage, theft, breakage) of a good during its storage, transportation and/or realization, including in excess of the norms of natural loss (wastage, breakage) established by the legislation, and in their absence – above the norms established by the head in agreement with the owner, the general meeting of participants, members of the consumer society, plenipotents or with the person authorized by them. In the absence of established norms, such losses of goods shall be recognized as excessive.

Tax deductions of the payer are subject to decrease by sums of the value added tax accepted by him earlier for deduction on goods specified in part one of this sub-clause.

Tax deductions of the payer are subject to decrease by tax deductions equal to 20 percent of the value of goods specified in part one of this sub-clause when it is impossible:

to determine the amount of the value added tax sum accepted for deduction earlier;

to establishing the fact of performance of operations specified in part six of this sub-clause.

Decrease of tax deductions shall be effectuated in the reporting period in which damage, loss of goods occurred. The date of damage, loss of goods shall be determined as the date of drawing up a document confirming the damage, loss of goods. If the spoilage, loss of goods are established during the inventory, the decreasing of tax deductions shall be made in the reporting period in which the results of the inventory are to be reflected in accordance with the legislation.

Tax deductions of the payer are not subject to decrease in the event of:

assigning the sums of value added tax presented upon acquisition of or paid upon importation of goods specified in part one of this sub-clause to increase of their value or at the expense of received means of the budget (budget or state non-budgetary funds);

inclusion of the sums of value added tax on goods specified in part one of this sub-clause in costs of the payer taken into account for taxation;

acquisition (creation) of goods specified in part one of this sub-clause, under which the sums of value added tax have not been presented to the payer by the sellers of goods (works, services), property rights or have not been paid by the payer upon importation;

24.16. presented to the buyer upon acquiring or paid by him upon importation of:

goods the tax base upon the realization of which shall be determined by the buyer as  a positive difference between the realization price and the acquisition price of those goods.

property rights  the tax base upon the realization of which shall be determined as a positive difference between the value at which the property rights are being transferred minus the value added tax and the expenses on acquisition thereof taking into account the value added tax.

25. Tax deductions subject to be transferred to the recipient upon transfer of goods (works, services), property rights shall be determined in the following order:

25.1. actual value added tax sums presented upon acquisition of goods (works, services), property rights being transferred or paid upon the importation of goods being transferred, or the value added tax sums actually presented upon acquisition (paid upon importation)  on goods (works, services), property rights, used in the production (creation, performance, rendering) of goods (works, services), property rights, being transferred:

25.1.1. may be transferred during the transfer within the same legal person of the Republic of Belarus of goods (works, services), property rights to their recipient.

Upon transfer of goods (works, services), property rights within one legal person of the Republic of Belarus under which in accordance with part two of sub-clause 2.9 of clause 2 of Article 115 of this Code, computation and payment of the value added tax shall be effectuated (exemption from taxation shall be applied); the transfer of tax deductions to the recipient of goods (works, services), property rights is not performed;

25.1.2. are transferred upon transfer within the framework of a contract of simple partnership (contract on joint activity) of:

goods (works, services), property rights as the contribution of a participant of the contract of simple partnership (contract on joint activity) to the common cause (with the exception of goods alienated under the conditions of the mentioned contract to another participant);

goods upon dividing goods having been in common ownership of the participants of the contract of simple partnership (contract on joint activity);

expenses reimbursable to the participant in accordance with the contract of simple partnership by the person carrying out the conduct of common affairs;

25.2. when it is impossible to determine the value added tax sums actually presented (paid upon importation) on operations provided by sub-clause 25.1 of this clause or upon importation of goods the value added tax sums upon importation of which are not yet paid, tax deductions shall be transferred (and in the instance provided by sub-clause 25.1.1 of this clause, may be transferred) that are equal to 20 percent of the value of goods (works being performed, services being rendered), property rights, being transferred.

In that instance, the transferring party shall decrease the value added tax sums presented upon acquisition (paid upon importation) of goods (works, services), property rights are decreased by the sum specified in part one of this sub-clause;

25.3. transfer of tax deductions within one legal person performed in accordance with sub-clauses 25.1.1 and 25.2 of this clause must be carried out in the same reporting period in which the transfer of goods (works, services), property rights within one legal person of the Republic of Belarus has been carried out;

25.4. upon termination of the contract of simple partnership (contract on joint activity),  the value added tax sums presented upon acquisition (paid upon importation) of goods (works, services), property rights and not accepted for deduction until the termination of the contract of simple partnership (contract on joint activity) shall be subject to the transfer to the participants (participant) of that partnership;

25.5. when a legal person of the Republic of Belarus makes a decision on liquidation of its affiliate fulfilling tax obligations of that legal person, as well as in the event of arising of a circumstance in connection with which the duty of the affiliate of the legal person of the Republic of Belarus to fulfill tax obligations of that legal person ceases, the value added tax sums presented upon acquisition (paid upon import) of goods (works, services), property rights and not accepted for deduction, respectively, until its liquidation (arising of such a circumstance) are subject to be transferred by the affiliate within one legal persons of the Republic of Belarus;

25.6. upon reorganization of an organization, sums of value added tax presented upon acquisition or paid upon importation of goods (works, services), property rights and not accepted for deduction prior to the reorganization of the organization are subject to be transferred to the successor(s) of such organization in accordance with the transfer act or dividing balance sheet.

Transfer to the successor(s) of sums of value added tax presented specified in part one of this sub-clause shall be carried out without simultaneous transfer of goods (works, services), property rights, in accordance with transfer act or dividing balance sheet such sums of value added tax were transferred without goods (works, services), property rights referred thereto;

25.7. tax deductions of legal persons included in the consolidated balance sheet of main activity of the State Association "The Belarusian Railway" are subject to transfer to the State Association "The Belarusian Railway" for inclusion in the tax declaration (calculation) for the value added tax on carriages and shall be determined in the order established by the President of the Republic of Belarus.

26. The payers have the right to single out by themselves the sums of value added tax for deduction:

26.1. upon acquisition of goods at fixed retail prices by the payers:

which use these goods in production and realization of goods (works, services), property rights;

Which calculate the value added tax having regard to specifics established by clause 5 of article 128 of this Code.

Independent singling out of the sum of value added tax for deduction shall be carried out:

on the basis of an electronic invoice signed with the electronic digital signature;

based on the acquisition price of goods at fixed retail prices and the rate of value added tax applied upon realization thereof in the territory of the Republic of Belarus;

26.2. upon refusal of the payer of exemption from taxation of turnovers on realization of goods (works, services), property rights or upon cancellation of exemption from taxation which has been established earlier.

Singling out of the value added tax sum for deduction shall be carried out from remaining goods (with the exception of fixed assets) available on the date of refusal of exemption from taxation or on the date of cancellation of the exemption from taxation which has been established earlier:

on the basis of an electronic invoice signed with the electronic digital signature;

through independent singling out for deduction of value added tax sums which have been presented upon acquisition or paid upon importation of those goods and assigned to the increase of their value or included into costs of the payer taken into account for taxation.

Individual entrepreneurs recognized as payers of the value added tax upon realization of goods (works, services), property rights have the right to single out on the basis of an electronic invoice signed with the electronic digital signature  from the value, according to the goods inventory data, of remaining goods (with the exception of fixed assets) available on the 1st day of the month from which they are recognized as payers of the value added tax, the value added tax sums presented upon acquisition or paid upon importation of these goods reflecting those sums in the bookkeeping of incomes and expenses of the individual entrepreneur;

26.3. upon switching from a special taxation regime without computation and payment of value added tax to the common taxation regime or to a special taxation regime with computation and payment of the value added tax.

Singling out of the value added tax sum for deduction shall be carried out from remaining goods (with the exception of fixed assets) available on the date of switching:

on the basis of an electronic invoice signed with the electronic digital signature;

through independent singling out for deduction of value added tax sums which have been presented upon acquisition or paid upon importation of those goods and assigned to the increase of their value;

26.4.upon realization by organizations that do not carry out entrepreneurial activity in the territory of the Republic of Belarus  (including foreign organizations and representative offices of foreign organizations accredited under the established procedure) of acquired (imported) goods (works, services), property rights on which sum of the value added tax has been charged to an increase of their value in accordance with clause 12 of Article 132 of this Code.

Deduction of the value added tax sums by the mentioned organizations shall be performed:

on the basis of an electronic invoice signed with the electronic digital signature;

by way of calculation based on purchasing price of goods (works, services), property rights and the depreciable value fixed assets and intangible assets having regard to the value added tax and the rate of value added tax which has been applied upon acquisition (importation) thereof.

Singling out of the sum of value added tax is performed if upon realization of goods (works, services), property rights, the calculation of the value added tax is carried out according to the rates established by clauses 2 and 3 of Article 122 of this Code.

Singling out of the sum of value added tax is not performed if said organizations realize goods acquired by them from sellers that determined, upon realization of these goods, the tax base as a positive difference between the realization price and the purchasing price of these goods;

26.5. if they are entrusted with the realization of the property alienated as a result of a requisition or confiscation according to the court resolution to collect taxes, dues (duties) and penalty interest, fines for committing administrative offences and/or crimes via levying the execution on the property on obligations of the owner, upon acquisition of that property for own needs.

This singling out of sums of value added tax is performed at the tax rate at which the realization of such property is levied.

27. Deduction of sums of the value added tax is performed in full:

27.1. on goods (works, services) upon realization of which the taxation with the value added tax is carried out at the rate in the amount of zero (0) percent, when the payer has (in the instances established by sub-clause 1.11 of clause 1, clause 5 of Article122, Articles 123–126 of this Code, when the payer has presented to the tax body at the place of putting on record) documents provided by part sub-clause 1.11 of clause 1, clause 5 of Article 122,  Articles 123–126 of this Code;

27.2. on goods upon realization of which the taxation with value added tax is carried out at the rate in the amount of ten (10) percent;

27.3. for payers who are:

in the process of liquidation (termination of activity - for individual entrepreneurs);

procedure of liquidation proceedings  for the legal persons (individual entrepreneurs) recognized in accordance with the legislation  as bankrupt.

When entering information into the Unified State Register of Legal Persons and Individual Entrepreneurs about the cancellation of the procedure for liquidating a legal person (termination of the activity of an individual entrepreneur) for the sums of value added tax previously accepted by the payer for deduction in full according to indent two of part one of this sub-clause, tax deductions for the reporting period in which the deduction of the indicated sums of value added tax was previously made in full are subject to be decreased. Changes in the part of decreasing tax deductions shall be introduced in the tax declaration (calculation) for value added tax being submitted for such a reporting period in accordance with clause 6 of Article 40 of this Code.

Provisions of part two of this sub-clause are to be applied also by a legal person (individual entrepreneur) that is not a payer of the value added tax on turnovers for the realization of goods (works, services), property rights during the period in which the liquidation procedure of the legal person was cancelled (decision to terminate activities of an individual entrepreneur was cancelled), if the deduction of the sums of value added tax in full was made in accordance with indent two of part one of this sub-clause in the reporting (tax) period preceding the reporting (tax) period in which the liquidation of the legal person was cancelled (decision to terminate activities of an individual entrepreneur was cancelled);

27.4. for foreign organizations:

carrying out activity in the territory through a permanent representation – upon termination of activity of all permanent representations of such a foreign organization;

having opened a representative office in the order established by the legislation – upon termination of activities of such a representative office;

being put on record in the tax body of the Republic of Belarus in connection with acquisition of the ownership, other rights to the immovable property located in the territory of the Republic of Belarus – after alienation of all such immovable property objects;

27.5. on goods being exempted from the value added tax in accordance with sub-clause 1.44 of clause 1 of Article 118 of this Code;

27.6. on fixed assets and intangible assets on which at the beginning of the tax period there are the value added tax sums not accepted for deduction in the past tax period if such value added tax sums in the current tax period are accepted for deduction in equal instalments in each reporting period of one twelfth (if a calendar month is recognized as the reporting period) or of one quarter (if a calendar quarter is recognized as the reporting period) according to clause 8 of Article 134 of this Code;

27.7. on goods shipped to buyers – foreign organizations and/or natural persons from storage places in the territory of foreign states and/or from exhibitions-fairs held in the territory of foreign states if the following conditions are met simultaneously:

such goods were exported from the territory of the Republic of Belarus in accordance with the customs procedure of export;

contracts are concluded by the payer with buyers – foreign organizations and/or natural persons after exportation of goods from the territory of the Republic of Belarus.

A condition for carrying out the deduction of sums of the value added tax in full on goods specified in part one of this sub-clause is the fact that the payer has:

a contract stipulating the storage of goods in the territory of the foreign state and/or participation of goods in exhibitions-fairs held in the territory of the foreign state and concluded by the payer with a foreign organizations or foreign natural person (taxpayers of a foreign state) rendering services on storage of goods and/or organizing the participation of the payer in the exhibition-fair;

customs declaration for goods released in accordance with the customs procedure of export;

customs declaration for goods released in accordance with the customs procedure of temporary exportation (if goods exported in accordance with the customs procedure of export preliminarily were placed under the customs procedure of temporary exportation);

contract of the payer with a buyer – foreign organization or foreign natural person, on the basis of which the good of the payer shipped from the storage place in the territory of the foreign state or from the exhibition-fair held in the territory of the foreign state is realized;

documents confirming the delivery (shipment) of goods to a buyer –  foreign organization and/or foreign natural person from the storage place in the territory of the foreign state or from the exhibition-fair held in the territory of the foreign state;

consignment note drawn up by the payer for the buyer –  foreign organization and/or foreign natural person.

For confirming the soundness of carrying out deduction of sums of the value added tax in full on goods specified in part one of this sub-clause, the payer presents to the tax body at the place of its putting on record simultaneously with the tax declaration (calculation) on the value added tax the following documents:

special register of customs declarations for goods released in accordance with the customs procedure of export with the notice of the customs body “Товар вывезен (Good has been exported)” and the date of putting of such a notice, certified by the personal numerical stamp of an official of the customs body of the Republic of Belarus (to be presented by the payer carrying out declaration of goods to the customs bodies in a written form);

register of documents confirming the exportation of goods outside the Republic of Belarus and their realization from storage places in the territory of foreign states and/or from exhibitions-fairs held in the territory of a foreign state according to the established form. The mentioned register shall be filled in in the established order.

Turnovers on realization of goods specified in part one of this sub-clause for the purposes of distribution of the total sum of tax deductions according to Article134 of this Code are subject to be indicated in the tax declaration (calculation) on the value added tax.

The day of shipment of goods specified in part one of this sub-clause is deemed to be the date of release (shipment) of goods of the payer to the buyer from storage places, from exhibitions-fairs in the territory of foreign states;

27.8. on goods shipped to buyers who are taxpayers of the member states of the Eurasian Economic Union, from storage locations in the territory of the member states of the Eurasian Economic Union, from exhibitions–fairs held in the territory of the member states of the Eurasian Economic Union, if the following conditions are met simultaneously:

such goods have been exported from the territory of the Republic of Belarus (without the commitment for return importation into the territory of the Republic of Belarus);

contracts are concluded by the payer with buyerswho are taxpayers of the member states of the Eurasian Economic Union after exportation of goods from the territory of the Republic of Belarus.

A condition for carrying out the deduction of sums of the value added tax in full on goods specified in part one of this sub-clause is the fact that the payer has:

a contract stipulating the storage of goods in the territory of a member state of the Eurasian Economic Union and/or participation of goods in exhibitions-fairs held in the territory of a member state of the Eurasian Economic Union and concluded by the payer with a taxpayer of a member state of the Eurasian Economic Union, rendering services on storage of goods and/or service on organizing the participation of the payer in the exhibition-fair;

transport (shipping) documents confirming the movement of goods from the territory of the Republic of Belarus to the territory of another member state of the Eurasian Economic Union;

contract of the payer with a buyer being a taxpayer of a member state of the Eurasian Economic Union, on the basis of which the good of the payer shipped from the storage place in the territory of a member state of the Eurasian Economic Union or from the exhibition-fair held in the territory of a member state of the Eurasian Economic Union is being realized;

documents confirming the release (shipment) of goods of the payer to a buyer being a taxpayer of a member state of the Eurasian Economic Union from storage places in the territory of a member state of the Eurasian Economic Union or from the exhibition-fair held in the territory of a member state of the Eurasian Economic Union;

consignment note drawn up by the payer for the buyer to the buyer being a taxpayer of a member state of the Eurasian Economic Union;

declaration about importation of goods and payment of indirect taxes, drawn up according to the form approved by the treaty of the Republic of Belarus, with the notice of the tax body of the state – member of the Eurasian Economic Union to the territory of which the goods are imported, about the payment of indirect taxes (exemption for the taxation or another order of fulfilling of tax obligations) (later on in this sub-clause – declaration about importation of goods) or the list of declarations about importation of goods and payment of indirect taxes.

For confirming the soundness of carrying out deduction of sums of the value added tax in full on goods specified in part one of this sub-clause, the payer presents to the tax body at the place of its putting on record simultaneously with the tax declaration (calculation) on the value added tax:

declaration about importation of goods or the list of declarations about importation of goods and payment of indirect taxes;

register of documents confirming the exportation of goods outside the Republic of Belarus and their realization from storage places, from exhibitions-fairs in the territory of the member states of the Eurasian Economic Union according to the established form. The mentioned register shall be filled in in the established order.

Documentary confirmation of the soundness of carrying out deduction of sums of the value added tax in full on goods specified in part one of this sub-clause is performed within one hundred eighty calendar days from the date of release (shipment) of goods to the buyer being a taxpayer of a member state of the Eurasian Economic Union from storage places in the territory of a member state of the Eurasian Economic Union or from the exhibition-fair held in the territory of a member state of the Eurasian Economic Union.

Turnovers on realization of goods specified in part one of this sub-clause for the purposes of distribution of the total sum of tax deductions according to Article 134 of this Code are subject to be indicated in the tax declaration (calculation) on the value added tax in the following order.

In the absence of documents conforming the soundness of carrying out deduction of sums of the value added tax in full and upon arrival of the date of presentation of the tax declaration (calculation) on the value added tax within the established time limit, turnovers on realization of goods are not indicated in the tax declaration (calculation) on the value added tax.

If there are documents confirming the soundness of carrying out deduction of sums of the value added tax in full, turnovers on realization of goods are indicated in the tax declaration (calculation) on the value added tax for the tax period, the time limit for presentation of which follows the receipt of corresponding documents or for the tax period in which corresponding documents have been presented.

In the absence of documents confirming the soundness of carrying out deduction of sums of the value added tax in full upon the deadline for presentation to the tax body of the tax declaration (calculation) on the value added tax for  the reporting period in which the time limit established by part four of this sub-clause has lapsed, turnovers on realization of goods are indicated in the tax declaration (calculation) on the value added tax for the reporting period in which the time limit set by part four of this sub-clause has expired with inclusion of sums of the value added tax into costs of the payer taken into account for the taxation.

Upon receipt of documents upon expiry of the time limit set by part four of this sub-clause and after indication of turnovers on realization of goods in the tax declaration (calculation) on the value added tax, deduction of sums of the value added tax is performed in full in the tax declaration (calculation) on the value added tax for the reporting period, the time limit for presentation of which follows the receipt of documents, or for the reporting period in which the documents are received.

28. When the procedure of application of tax deductions has been changed, the new procedure of deductions is effective in respect of:

goods recorded as received from the moment of changing the application of tax deductions;

goods imported from the moment of changing the application of tax deductions. The date of importation is determined according to the date of release of goods in accordance with the declared customs procedure;

goods acquired in the states – members of the Eurasian Economic Union, from the moment of changing the application of tax deductions. The date of acquisition is determined according to the date of acceptance of goods for accounting;

works and services received from the moment of changing the application of tax deductions;

property rights from the moment of changing the application of tax deductions;

of goods specified in sub-clause 24.15 of clause 24 of this Article, damaged, lost from the moment of change of the order of application of tax deductions. The date of damage, loss of mentioned goods shall be determined according to the date of drawing up a document confirming the damage, loss of goods;

goods specified in part one of sub-clause 24.5 of clause 24 of this Article transferred within one foreign legal person outside the Republic of Belarus from the moment the procedure for applying tax deductions was changed.

Article 134. Order for determining the value added tax sums falling on a certain sum of the turnover on realization of goods (works, services), property rights. Methods of distribution of tax deductions

1. Upon realization by the payer of goods (works, services), property rights tax deductions on which are performed differently, the distribution of the total sum of tax deductions among these turnovers is performed by two methods (specific weight method or separate accounting method), unless otherwise established by this Chapter.

2. Application of one of two methods of distribution of tax deductions in respect of tax deductions on activities (operations) determined by the payer (specific weight method or separate accounting method) is performed at least in the course of one calendar year and approved by the accounting policy of the organization (decision of the individual entrepreneur).

If the accounting policy of the organization (decision of the individual entrepreneur) contains not indication concerning applicable method of distribution of tax deductions, all tax deductions are distributed by the specific weight method.

In the event when the payer conducts the purchase ledger, only sums of the valued added tax indicated in the purchase ledger participate in the distribution.

3. Value added tax sums falling according to the specific weight method on a certain sum of the turnover on realization shall be determined on an accrual basis from the beginning of the year according to the following formula:

 

VATtr/cert = VATded х 

Trcert

,

Trtot

 

where: VATtr/cert –  value added tax sum falling according to the specific weight method on a certain sum of the turnover on realization;

VATded  – total sum of tax deductions with account of corrections made. For the purposes of clause 3 of Article 133 of this Code, the value added tax sum on fixed assets and intangible assets shall be excluded from the total amount of tax deductions;

Trcert – a certain sum of the turnover on realization of goods (works, services), property rights;

Trtot – total sum of the turnover on realization of goods (works, services), property rights.

The percentage of the specific weight is determined accurate to four decimal places.

The sum of turnover is deemed to be the sum of the tax base and the value added tax calculated on this tax base, and also the sum of increase (decrease) of the tax base.

The total sum of turnover does not include operations on realization of goods (works, services), property rights by Belarusian organizations (affiliates of legal persons of the Republic of Belarus) registered as taxpayers of a foreign state.

4. For the purposes of clause 3 of this Article, when determining the percentage of the specific weight taken for the distribution of tax deductions by the specific weight method:

4.1. the sum of turnover includes:

4.1.1. turnovers on realization of goods the place of realization of which is not recognized the territory of the Republic of Belarus (including operations on realization of goods to the population at exhibitions-fairs held in the territory the member states of the Eurasian Economic Union);

4.1.2. for the purposes of clause 15 of Article 133 of this Code – operations on gratuitous transfer of goods (works, services), property rights, not recognized as realization or taxation object for the value added tax in accordance with the legislation;

4.2. from the sum of turnover shall be excluded the tax base and sum of the value added tax on realization of goods (works, services), property rights acquired in the territory of the Republic of Belarus from foreign organizations not put on record in the tax bodies of the Republic of Belarus;

4.3. the sum of turnover does not include:

4.3.1. operations on realization of goods the place of realization of which is not recognized the territory of the Republic of Belarus, provided that these goods are acquired in the territory of a foreign state and upon realization thereof, the calculation of the value added tax to the budget of the Republic of Belarus has not been performed;

4.3.2. operations on realization of goods, property rights, the place of realization of which is not recognized the territory of the Republic of Belarus, unless on such operations the computation of the value added tax to the budget of the Republic of Belarus is performed by the payer.

5. The sum of value added tax paid on fixed assets and intangible assets, falling on the turnovers on realization of goods (works, services) taxable with the value added tax at the rates in the amount of zero (0) and/or ten (10) percent shall be determined on an accrual basis from the beginning of the year according to the following formulae:

 

VATfix/0 = VATfix х 

Tr0

;

Trtot

 

VATfix/10 = VATfix х 

Tr10

,

Trtot

 

where: VATfix/0 – sum of value added tax paid on fixed assets and intangible assets, falling on the turnovers on realization of goods (works, services) taxable with the value added tax at the rate in the amount of zero (0) percent;

VATfix/10  – sum of value added tax paid on fixed assets and intangible assets, falling on the turnovers on realization of goods (works, services) taxable with the value added tax at the rate in the amount of ten(10) percent;

VATfix  – sums of the value added tax on fixed assets and intangible assets;

Tr0 –  turnovers on realization of goods (works, services) taxable with the value added tax at the rates in the amount of zero (0) percent;

Tr10 –  turnovers on realization of goods (works, services) taxable with the value added tax at the rates in the amount of ten (10) percent;

Trtot – total sum of the turnover on realization of goods (works, services), property rights.

The total sum of turnover and the percentage of  the specific weight shall be determined in the order established by clauses 3 and 4 of this Article.

6. The sum of value added tax paid on fixed assets and intangible assets, falling on the turnovers on realization of goods (works, services), property rights on which a tax credit and/or exemption from payment of the value added tax are granted shall be determined on an accrual basis from the beginning of the year according to the following formulae:

 

VATfix/cr = VATfix х 

Trcr

;

Trtot

 

VATfix/pd = VATfix х 

Trpd

,

Trtot

 

where: VATfix/cr  – sum of value added tax paid on fixed assets and intangible assets, falling on the turnovers on realization of goods (works, services), property rights on which a tax credit is granted;

VATfix/pd  – sum of value added tax paid on fixed assets and intangible assets, falling on the turnovers on realization of goods (works, services), property rights on which exemption from payment of the value added tax  is granted;

VATfix  – sums of the value added tax on fixed assets and intangible assets;

Trcr – turnovers on realization of goods (works, services), property rights on which a tax credit is granted;

Trpd – turnovers on realization of goods (works, services), property rights on which exemption from payment of the value added tax  is granted;

Trtot – total sum of the turnover on realization of goods (works, services), property rights.

The total sum of turnover and the percentage of  the specific weight shall be determined in the order established by clauses 3 and 4 of this Article.

7. When tax deductions are distributed by the specific weight method, tax deductions of a past tax period do not participate in the distribution, if it is stipulated by the accounting policy of the organization (decision of the individual entrepreneur).

Otherwise tax deductions of a previous tax period are subject to be distributed by the specific weight method under the procedure established by this Chapter.

Provisions of this clause shall not apply to the value added tax sums of the previous tax period, which were distributed in the previous tax period by the separate accounting method.

8. Concerning tax deductions of a previous tax period on fixed assets and intangible assets, the payer may in the current tax period:

distribute them in the order determined by clause 3, 5 and 6 of this Article (when there are turnovers on realization of goods (works, services), property rights, deduction on which is performed in a different order);

accept for deduction in equal instalments in each reporting period of one twelfth (if a calendar month is recognized as the reporting period) or of one quarter (if a calendar quarter is recognized as the reporting period). The procedure chosen by the payer of deduction in equal installments shall be indicated in the accounting policy of the organizations (the decision of the individual entrepreneur) and is not subject to be changed in the course of the current tax period.

9. The value added tax sums falling according to the separate accounting method on types of activities (operations on realization) determined by the taxpayer shall be determined depending on the directions of use of the acquired (imported) goods (work, services), property rights for the purposes of determined turnovers on realization taxable in a different order upon carrying out types of payer activities (operations on realization) determined by the payer.

Determining tax deductions by the separate accounting method envisages that the accounting records (in the bookkeeping of incomes and expenses of the individual entrepreneur, in the journal for registering incomes and expenses of organizations and individual entrepreneurs using the simplified taxation system) and purchase ledger if the conduct thereof is carried out by the payer, contain information about sums of the value added tax on goods (works, services), property rights, used for the purposes of turnovers on realization on which the mentioned sums of the value added tax shall, in the similar order:

be accepted for deduction within the limits of the value added tax sum computed on realization of goods (works, services), property rights;

or be accepted for deduction in full regardless of the value added tax sum computed on realization of goods (works, services), property rights;

or be included in expenses taken into account for the taxation;

or be assigned to decreasing (increasing) of the value of goods (works, services), property rights.

10. When value added tax sums are distributed by the separate accounting method:

10.1. value added tax sums shall be accepted for deduction (either within the computed value added tax sum, or in full, regardless of the computed value added tax sum) in the amount of value added tax sum recognized as a tax deduction and accounted separately for acquired (imported) goods (works, services), property rights used (intended to be used) for the purposes of turnovers on realization for which the value added tax sums are accepted for deduction (within the computed value added tax sum or in full regardless of the computed value added tax sum).

For the purposes of this sub-clause, unless otherwise established by acts of the President of the Republic of Belarus, within one type of activity, it is allowed to distribute the value added tax sums recognized as tax deductions and taken into account separately by the specific weight method between turnovers on realization for which value added tax sums are accepted for deduction within the limits of the computed value added tax sum and turnovers on realization for which the value added tax sums are accepted in full regardless of the computed value added tax sum.

Upon change of the direction of use (purpose of use) of goods (works, services), property rights not for the purposes of turnovers on realization the value added tax sums on which are accepted for deduction, a corresponding correction of the value added tax sum shall be made by direct account for the purposes of another turnover on realization, the value added tax sum for which deductions are not subject to deduction;

10.2. the value added tax sums are included in costs taken into account for the taxation ( assigned to decreasing (increasing) of the value of goods (works, services), property rights) in the amount of the value added tax sum not subject to deduction and taken in account separately on acquired (imported) goods (works, services), property rights used (intended to be used) for the purposes of turnovers on realization on which the value added tax sums are not subject to deduction.

Upon change of the direction of use (purpose of use) of goods (works, services), property rights not for the purposes of turnovers on realization the value added tax sums on which are not subject to deduction, a corresponding correction of the value added tax sum shall be made by direct account for the purposes of another turnover on realization, the value added tax sum for which deductions are accepted for deduction.

For the purposes of this sub-clause, within one type of activity, it is allowed to distribute the value added tax sums recognized as tax deductions and taken into account separately by the specific weight method between turnovers on realization for which value added tax sums are accepted for deduction and turnovers on realization for which the value added tax sums are not subject to deduction;

10.3. the value added tax sums taken in account separately on acquired (imported) goods (works, services), property rights used (intended to be used) simultaneously for the purposes of turnovers on realization for which value added tax sums are not subject to deduction and for the purposes of turnovers on realization for which the value added tax sums are accepted for deduction, shall be distributed between the said turnovers on realization according to the following formulae:

 

VATtr/cost = VATded х 

Trcost

;

Trtot

 

VATtr/ded = VATded – VATtr/ded,

 

where:  VATtr/cost –  value added tax sum falling on turnovers on realization for which the value added tax sums are not subject to deduction and included in costs taken into account for the taxation ;

VATded – value added tax sums recognized as tax deductions and accounted separately on goods (works, services), property rights:

used simultaneously for the purposes of turnovers on realization for which the value added tax sums are not subject to deduction and for the purposes of turnovers on realization for which the value added tax sums are accepted for deduction;

direction of the use of which upon their acquisition (recording) is still unknown;

Trcost –  turnovers on realization of goods (works, services), property rights for which the value added tax sums are not subject to deduction and included in costs taken into account for the taxation;

Trtot – total sum of the turnover on realization of goods (works, services), property rights composed of the sum of turnover between the tax deduction distribution is performed;

VATtr/ded –  value added tax sum falling on turnovers on realization for which the value added tax sums are accepted for deduction.

11. When ordering customers (builders) conduct construction of immovable property objects that include also objects exempted from the value added tax in accordance with the legislation (later on in this clause – immovable objects) in the interests of  interestholders, the value added tax sums on the actual construction costs to be transferred to interestholders in terms of acquired (imported) goods (work, services), property rights shall be taken into account by the separate accounting method having regard to the following specific features.

The value added tax sums falling on costs for construction of the immovable object to be transferred to the interestholder shall be accounted separately  for in the amount of the value added tax sum on acquired (imported) goods (works, services), property rights directly used (directly intended to be used) on construction of immovable objects.

The value added tax sums on acquired (imported) goods (works, services), property rights used (intended to be used ) for the construction of premises of the immovable object the costs on which are subject to transfer to interestholders, shall be determined based on the share of such premises in the total area of the immovable object according to the design and estimate documentation. In that instance the percentage of the specified share shall be determined on an accrual basis for the entire construction period until the moment of acceptance of the immovable object into operation and calculated with an accuracy of at least four decimal places.

The value added tax sums on goods (work, services) used for the construction of immovable objects in the interests of co-investors, in terms of costs for produced (performed, rendered) goods (works, services) on their own, the ordering customers (builders) are entitled to take into account by the separate accounting method for the entire construction period until the acceptance of the immovable object into operation in the similar order established by this clause, with an indication of the chosen method in the accounting policy of the organization (decision of the individual entrepreneur).

When indicators of the design and estimate documentation are changed concerning the share of areas, their purpose and/or when the areas of the premises of the immovable object are changed, the costs on which are subject to transfer to the interestholders, a corresponding correction shall be made concerning the value added tax sums accounted separately for the  immovable object (areas of the immovable object) in order to determine the value added tax sums not subject to deduction.

12. The separate accounting method shall be used for distribution:

by the successor of the value added tax sums received by him from the reorganized organization in accordance with the transfer act or dividing balance sheet upon reorganization of the organization;

of the value added tax sums on goods (work, services), property rights, upon reimbursement of the value of which the payer shall effectuate taxation in accordance with sub-clauses 9.3 and/or 9.4 of clause 9 of Article 122 of this Code.

Article 135. Sum of the value added tax subject to be paid to the budget

1. The sum of value added tax subject to be paid to the budget is determined as the difference between the total sum value added tax calculated according to results of the reporting period and the sums of tax deductions.

2. Sums of the value added tax shall be deducted by payers from the computed value added tax sum in the following order of priority:

in the first place – sums of the value added tax on goods (works, services), property rights, with the exception of fixed assets and intangible assets, subject to be deducted within the limits of sums of the value added tax calculated on realization of goods (works, services), property rights;

in the second place – sums of the value added tax on fixed assets and intangible assets subject to be deducted within the limits of sums of the value added tax calculated on realization of goods (works, services), property rights. The mentioned sums of the value added tax are deducted in the sum not exceeding the difference between the sum of value added tax calculated on realization and sums of the vale added tax deductible in the first place;

in the third place – regardless of the sum of value added tax calculated on realization goods (works, services), property rights, sums of the value added tax on goods taxable with the value added tax at the rate in the amount of ten (10) percent;

in the fourth place – regardless of the sum of value added tax calculated on realization goods (works, services), property rights, sums of the value added tax on goods (works, services) taxable with the value added tax at the rate in the amount of zero (0) percent;

in the fifth place – regardless of the sum of value added tax calculated on realization goods (works, services), property rights, sums of the value added tax on goods exempted from the value added tax in accordance with sub-clause 1.44 of clause 1 of Article 118 of this Code;

in the sixth place – regardless of the value added tax sum computed on realization of goods (works, services), property rights, the value added tax sums of the previous tax period on fixed assets and intangible assets if such value added tax sums in the current tax period are accepted for deduction in equal instalments in each reporting period of one twelfth (if a calendar month is recognized as the reporting period) or of one quarter (if a calendar quarter is recognized as the reporting period) according to clause 8 of Article 134 of this Code;

in the seventh place – regardless of the sum of value added tax computed on realization of goods (works, services), property rights, sums of the value added tax on goods specified in part one of sub-clause 27.7 and/or part one of sub-clause 27.8 of clause 27 of Article 133 of this Code, upon confirmation of the soundness of carrying out the deduction in full.

3. If the sum of tax deductions according to the tax declaration (calculation) for the value added tax:

does not exceed the total sum of value added tax computed on realization of goods (works, services), property rights, then the received positive difference shall be the value added tax sum payable to the budget;

exceeds the total sum of value added tax computed on realization of goods (works, services), property rights, then the received negative difference is subject to setoff and return to the payer in the order established by Article 137 of this Code. In that instance the return of the difference between the sum of tax deductions and the total sum of value added tax calculated on realization of goods (works, services), property rights is made without charging the penalty interest.

Article 136. Procedure, time limits for presentation of tax declaration (calculations) and payment of value added tax

1. Payers present the tax declaration (calculation) on the value added tax to the tax bodies to not later than on 20th day of the month following the expired reporting period.

2. Payment of the value added tax is performed not later than on 22nd day of the month following the expired reporting period.

3. Procedure and time limits for presentation of tax declaration (calculations) on carriage and payment of value added tax by the State Association “Belarusian Railway” are established by the President of the Republic of Belarus.

4. Tax declaration (calculation) on value added tax on turnovers arising in relation to the trust management of the property in the interests of the settlor or a person designated by the latter (the beneficiary) is drawn up and presented by the trustee separately from the declaration on other activity carried out by the latter having regard to specific features established by part two of this clause and Article 40 of this Code.

When trust management is carried out under several contracts on trust management of property, the trustee draws up and presents a single tax declaration (calculation) on the value added tax.

5. The tax declaration (calculation) on the value added tax on turnovers arising in connection with carrying out activities of a simple partnership (joint activity) shall be drawn up and submitted by the participant of the simple partnership that fulfills the tax obligation of that partnership in accordance with clause 4 of Article 14 of this Code, separately from the declaration on other activity carried out by the latter.

6. When a foreign organization carries out activities on the territory of the Republic of Belarus through several permanent representations, the occurrence of which is determined in accordance with Article 180 of this Code, or if a foreign organization has a representative office on the territory of the Republic of Belarus and carries out activities on the territory of the Republic of Belarus through one or more permanent representations, the tax declaration (calculation) for value added tax shall be presented as a whole for all objects of taxation with the value added tax.

The tax declaration (calculation) for value added tax shall be submitted to the tax body at the place of one of the permanent representations, to which a tax declaration (calculation) for the tax on profit is submitted by a foreign organization in accordance with clause 8 of Article 186 of this Code.

7. The fact of confirming the status of a Belarusian organization as a value added tax payer is certified by a reference statement intended for use in the territory of foreign states. The statement shall be issued according to the established form by the tax body at the place of putting on record or shall be certified according to the form established in the foreign state.

Article 137. Order for return of the difference between the sum of tax deductions and the total sum of value added tax computed on realization of goods (works, services), property rights

1. Return of the difference between the sum of tax deductions and the total sum of value added tax computed on realization of goods (works, services), property rights (later on in this Article – excessive sum of the value added tax) shall be carried out by means of effectuating a setoff and/or return in the order established by this Article.

Return of the excessive sum of the value added tax shall be effectuated in Belarusian rubles without charging the interest on that sum.

2. The application for the return of the excessive sum of the value added tax (later on in this Chapter – application for the return) shall be filed by the payers according to the established form.

The decision to refuse (in full or in part) the return of the difference between the sum of tax deductions and the total sum of value added tax computed on realization of goods (works, services), property rights (later on, unless otherwise established, in this Article – decision) shall be taken by the tax body  according to the established form when there is the tax declaration (calculation) for the value added tax in the tax body, not later than within two working days from the day of:

submission to the tax body by the payer of the application for the return;

transmission to the private office of the confirmation of the receipt of the application for the return submitted in electronic form;

termination of the inspection – when it is conducted in the instances established by clause 3 of this Article;

The decision shall be directed to the payer not later than within five working days from the day of its adoption.

Without an application for the return and adoption of the decision, the setoff of the excessive sum of the value added tax against the value added tax payable on the realization of goods (works, services), property rights, payment of penalty interest on it is effectuated. Such offset shall be effectuated by the tax body using software and hardware means not later than on the day when the tax body became aware of the sum of that tax and penalty interest thereon.

3. The tax body is entitled, on its own initiative or on the initiative of the payer, to conduct, in the established order, an unscheduled inspection for confirmation of soundness of the return of the excessive sum of the value added tax computed on realization goods (works, services), property rights, the appointment of which shall be carried out not later than within two days from the day of filing by the payer of the application about the return. The time limit for conducting such an inspection should not exceed fifteen working days, and when the payer has turnovers on realization of exported petroleum products in the inspected period – five working days, from the day of submission by the payer of the application about the return.

If the payer is in the process of liquidation (termination of activity), procedure of liquidation proceedings, the decision shall be made by the tax body not later than within two working days from the date of the termination of the field inspection. The appointment of such an inspection shall be carried out in the order established by the legislation, but not later than within fifteen working days from the day the payer filed the application about the return and upon availability in the tax body of the tax declaration (calculation) on the value added tax, which reflects deduction of the value added tax sums in accordance with part one of sub-clause 27.3 of clause 27 of Article 133 of this Code.

4. A setoff of the excessive sum of the value added tax on the basis of the decision shall be effectuated within thirty calendar days, and if the payer has turnovers on realization of exported oil products in the period for which the return is being carried out, within ten working days from the day the tax body made such a decision.

In that instance a settoff against the payment of:

a tax obligation on other taxes, dues (duties) and an obligation to pay other payments to the budget, the control over which is imposed on the tax bodies, penalty interest on them, fines shall be effectuated by the tax body not later than within three working days from the date of adoption of the decision;

an unfulfilled tax obligation, an obligation to pay other payments to the budget, the control over which is imposed on the tax bodies, penalty interest on them, fines (later on in this Article – unfulfilled obligations the control over which is imposed on tax bodies) shall be effectuated by the tax body itself not later than within three working days from the day of establishing such a fact.

5. A sum remaining after the conduct of setoffs effectuated out in accordance with clause 4 of this Article shall be returned to the payer from the budget not later than within five working days from the day of the expiration of the time limit established by part one of clause 4 of this Article if the payer does not have:

5.1. an unfulfilled obligation toward the republican and/or local budgets on budget interest-free loans, budget loans, interest on budget loans, penalty interest accrued for the late return of budget interest-free loans, budget loans, on executed guarantees of the Government of the Republic of Belarus, local executive and administrative bodies, interest and penalty interest on them and obligations before the budget arisen from contracts on assignment of claims concluded with banks (later on in this Article – unfulfilled obligations on budget interest-free loans, budget loans).

If there are unfulfilled obligations on budget interest-free loans, loans, the Ministry of Finance or the local financial body shall effectuated the setoff of the excessive sum of the value added tax against their fulfillment in the order determined by the Ministry of Finance and the Ministry on Taxes and Dues;

5.2. an unfulfilled obligation on payments the control over which is imposed on tax bodies.

If there is such unfulfilled obligation, the tax body itself shall effectuated the setoff of the excessive sum of the value added tax against its fulfillment not later than within three working days from the day of establishing such a fact.

6. The payer is entitled to file with the tax body an application for offsetting the excessive sum of the value added tax on the decision being executed:

in the period specified in part one of clause 4 and indent one of clause 5 of this Article against the fulfillment of the tax obligation for other taxes, dues (duties) and the obligation to pay other payments to the budget, control over which is imposed on the tax bodies, penalty interest on them, fines;

in the period specified in indent one of clause 5 of this Article, against the fulfillment of the tax obligation of another person, payment of the penalty interest posted to such a person. In that instance, the payer must have no unfulfilled obligations for budget interest-free loans, loans and unfulfilled obligations on payments, control over which is imposed on the tax bodies.

The decision for the setoff or refusal to effectuate it shall be adopted by the tax body within three working days from the day of submission of the application specified in part one of this clause by the payer in a written form, and upon lodging such an application in electronic form – from the day of transfer to the private office of the payer of an acknowledgement of its receipt.

The tax body shall inform the payer according to the established form on the setoff effectuated or refusal of its effectuating not later than within three working days from the day of adoption of a respective decision adopted according to the results of consideration of his application, and in the instance specified in indent three of part one of this clause – and to another person.

7. The setoff against the fulfillment of the tax obligation specified in indent two of part two of clause 4 and clause 6 of this Article shall be effectuated in the sum not exceeding the tax, due (duty) payable, if there is a corresponding tax declaration (calculation) in the tax body.

8. The decision adopted by the tax body during the execution of a previously adopted decision is accepted for execution upon full return of the excessive sum of value added tax on the decision being executed, and if there is a sum to be returned to the payer from the budget in accordance with clause 5 of this Article, after carrying out such return.

9. If the fact of the excessive sum of the value added tax groundlessly presented by the payer for return, has been established by the inspection or in relation with submission of the tax declaration (calculation) for the value added tax with amendments and/or changes introduced, the tax body shall take a decision according to the established form on annulment (in full or in part) of the decisions adopted in accordance with clause 2 of this Article (later on in this Article – decision on annulment). A decision on annulment shall be adopted not later than five working days from the day of establishing such a fact of from the day of drawing up the act of inspection.

The decision on annulment shall be directed to the payer not later than within five working days from the day of its adoption.

The tax body shall, not later than within two working days following the day of adoption of the decision on annulment, carry out:

in the first place – cancellation of the return from the budget of the excessive sums of the value added tax, remaining after conducting the setoff;

in the second place – cancellation of effectuated setoffs of the excessive sums of value added tax specified in the applications filed in accordance with clause 2 and indent two of part one of clause 6 of this Article, as well as setoffs against payment of an unfulfilled obligation on payments the control over which is imposed on the tax bodies. Cancellation of effectuated setoffs is carried out in the calendar order of their effectuation, starting from a later date.

10. The payer is obliged to pay to the budget the excessive sum of the value added tax returned groundlessly from the budget, including in relation of which a setoff has been effectuated in accordance with part two of sub-clause 5.1 of clause 5, indent three of part one of clause 6 of this Article (later on in this Article – excessive sum of the value added tax returned groundlessly from the budget).

The tax bodies enjoy the rights and bear obligations established for the application of methods for securing the fulfillment of tax obligations, payment of penalty interest and collection of taxes, dues (duties) and penalty interest, when applying methods to secure the payment of the excessive sum of the value added tax, groundlessly returned from the budget, and the penalty interest accrued on that sum, as well as when collecting such a sum and penalty interest.

The penalty interest on the excessive sum of the value added tax groundlessly returned from the budget shall be charged in the order established by this Code for each calendar day of using, beginning from the day following the day of effectuating the setoff, crediting of the monetary means to the account of the payer in the bank, including the day of payment (collection) thereof to the budget.

Article 138. Specific features of taxation with the value added tax collected by the customs bodies upon importation of goods to the territory of the Republic of Belarus

1. Upon importation of goods into the territory of the Republic of Belarus, with the exception of importation from the territory of the member states of the Eurasian Economic Union, and occurrence of other circumstances with the presence of which the customs legislation and/or acts of the President of the Republic of Belarus connect the arising of the duty for payment of the value added tax, collection of the value added tax is carried out by the customs bodies in accordance with this Code, customs legislation and/or acts of the President of the Republic of Belarus.

2. The tax base for the value added tax collected by customs bodies upon importation of goods into the territory of the Republic of Belarus (unless otherwise established by the customs legislation ) is determined as the sum:

of their customs value;

of payable sums of customs duties, unless otherwise established by part two of this clause;

of payable excise sums (for excisable goods), unless otherwise established by part two of this clause.

When goods are placed under customs procedures other than the customs procedure of release for internal consumption, nominally calculated sums of customs duties and excises that should have been paid upon placement of goods being imported under the customs procedure of release for internal consumption, are included in the tax base for calculation of the value added tax collected by customs bodies.

3. In the event of payment and/or recovery of sums of customs duties and excises in relation to goods place under respective customs procedures with application of tax privileges on payment of customs duties, linked with restrictions on use and disposal of these goods, the re-calculation of the tax base for the value added tax collected by customs bodies in connection with the payment (recovery) of the indicated sums of customs duties and excises is not performed, unless otherwise provided by the President of the Republic of Belarus.

4. Arising and termination of the duty on payment of the value added tax collected by the customs bodies upon importation of goods into the territory of the Republic of Belarus and the time limit for its payment is determined in accordance with customs legislation and/or acts of the President of the Republic of Belarus.

5. The sum of value added tax collected by the customs bodies upon importation of goods into the territory of the Republic of Belarus subject to be paid to the budget is determined as the product of the taxation base and the tax rate.

6. Specific features of the computation of the sum of value added tax subject to be paid to the budget upon importation of goods to the territory of the Republic of Belarus, depending on the customs procedure, are established by the customs legislation and/or acts of the President of the Republic of Belarus.

7. Procedure and time limits for value added tax collected by the customs bodies are established by the customs legislation and/or acts of the President of the Republic of Belarus.

Article 139. Specific features of taxation with the value added tax collected by the tax bodies upon importation of goods to the territory of the Republic of Belarus

1. Upon importation of goods into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union, collection of the value added tax is carried out by the tax bodies in accordance with this Code, customs legislation of the Customs Union, laws on customs regulation in the Republic of Belarus and/or acts of the President of the Republic of Belarus, treaties of the Republic of Belarus, constituting the law of the Eurasian Economic Union.

2. When the procedure for calculation of the value added tax collected by the tax bodies upon importation of goods into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union (change of the tax base, rates, procedure for application of the exemption from taxation) has been changed, the new procedure is applied in respect of the goods put on records from the moment of change of the procedure for calculation of the value added tax.

3. Computation and payment of the value added tax collected by the tax bodies are made by the agent, commissioner, and other similar person upon:

importation of goods into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union on the basis of contracts of agency, commission and other similar civil-law contracts;

transfer in the territory of the Republic of Belarus by commitent, principal or another similar person being the taxpayer of a state – member of the Eurasian Economic Union of goods imported earlier from the territory of the member states of the Eurasian Economic Union for which the value added tax has not been paid (if such goods are realized through a commissioner, agent or another similar person).

4. The tax base for the purposes of calculation and payment of the value added tax collected by the tax bodies upon importation of goods into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union:

may be indicated in the tax declaration (calculation) on the value added tax of the month the deadline for presentation of which follows the date shipment of goods mentioned in clause 3 of this Article to buyers or of the month in which these goods accepted for accounting by the commissioner, agent or another similar person. This provision is applied if these goods are shipped by the commissioner, agent or another similar person to buyers in the month following the month of their acceptance for accounting;

is indicated in the tax declaration (calculation) on the value added tax of the month in which goods indicated in indent two of clause 3 of this Article are accepted for accounting by the commissioner, agent or another similar person, if these goods are acquired by the commissioner, agent or another similar person for the commitent, principal or another similar person;

may be indicated in the tax declaration (calculation) on the value added tax of the month the deadline for presentation of which follows the date of acceptance for accounting of goods actually imported into the territory of the Republic of Belarus or of the month in which the goods are accepted for accounting with regard to the conditions of the foreign trade contract. This provision is applied if such acceptance of goods for accounting predates their actual importation into the territory of the Republic of Belarus.

5. The tax declaration (calculation) on the value added tax shall be filled in without a cumulative total from the beginning of the year as a whole for all goods imported in the reporting period (month) into the territory of the Republic of Belarus, collection of the value added tax on which is carried out by the tax bodies.

The reporting period of the value added tax shall be the month in which the payer reflects the receipt of goods (processed products) in the accounts of accounting (for individual entrepreneurs – in the data of record keeping of incomes (expenses) and economic operations, for organizations and individual entrepreneurs applying the simplified taxation system and conducting the book-keeping in a journal for registering incomes and expenses of organizations and individual entrepreneurs applying the simplified taxation system – in the data of that book).

Article 140. Specific features of computation and acceptance for deduction of the value added tax sums by organizations being payers of the tax under the simplified system of taxation and individual entrepreneurs

1. Organizations – payers of the tax under the simplified system of taxation that apply that special taxation regime with payment of the value added tax and conduct book-keeping in a journal for registering incomes and expenses of organizations and individual entrepreneurs applying the simplified taxation system in accordance with clause 1 of Article 333 of this Code (later on in this Article – simplified taxation payers) and individual entrepreneurs shall determine the moment of actual realization of shipped goods (performed works, rendered services), transferred property rights, unless otherwise established by this Article, as the day, falling on the reporting period:

the day of crediting monetary means from the buyer (ordering customer) to the account of the payer, but not later than sixty days from the day of shipment of goods (execution of works, rendering of services), transfer of property rights;

in the event of realization of goods (works, services), property rights for cash monetary means – of receipt of said means to the cash register of the payer, but not later than sixty days from the day of shipment of goods (execution of works, rendering of services), transfer of property rights;

of shipment of goods (performance of works, rendering of services), transfer of property rights, in relation to which the payment was received prior to that day (preliminary payment was carried out, advance payment, earnest money was made).

2. For the purposes of clause 1 of this Article:

2.1. the day of crediting of the monetary means:

2.1.1. under a contract of financing against monetary claim assignment (factoring) shall be recognized to be the date of payment by the factor of monetary claims without recourse. The day of receipt of monetary means under such a contract is recognized, if payment conditions stipulate the right of recourse, the date of repayment of the assigned monetary claim by the payer (debtor).

Provisions of this sub-clause shall be also applied by commitents (principals) when buyers of goods (works, services), property rights terminate the obligations before commissioners (agents);

2.1.2. concerning goods (works, services), property rights for which the claims are transferred and received, the debt is delegated, the offset of mutual claims is performed, shall be recognized the date of transfer of the claim, the date of delegation of the debt, the date of offset of the mutual claims.

Provisions of this sub-clause shall be also applied by commitents (principals) when buyers of goods (works, services), property rights terminate the obligations before commissioners (agents);

2.1.3. on the account of the commitent (principal) from the realization of goods (works, services), property rights on the basis of contracts of agency, commission and other similar civil-law contracts is recognized the date of receipt of monetary means on the account of the commissioner (agent), and in the event if the contract stipulates that the monetary means for goods (works, services), property rights, realized by the commissioner (agent), are to be remitted on the account of the commitent (principal) – the day of receipt of means on the account of the commitent (principal);

2.2. the day of shipment of goods (execution of works, rendering of services), transfer of property rights, the day of putting of the object in lease, the day of transfer of the leasing object into financial lease (leasing), the day of providing the property into gratuitous use shall be determined in accordance with Article 121 of this Code;

2.3. the moment of actual realization upon gratuitous transfer of goods (execution of works, rendering of services), property rights, upon exchange of goods (works, services), property rights, upon transfer of goods within the framework of the contract of loan in kind or in-kind payment with goods (works, services) for labour, upon realization of goods (works, services), property rights in the territory of the Republic of Belarus by foreign organizations not put on record in the tax bodies of the Republic of Belarus, upon realization of works on producing goods from give-and-take raw materials (materials) for non-residents of the Republic of Belarus, when the object of pledge is transferred by the pledgor to the pledgeholder, upon realization of natural and compressed gas, electric and thermal energy, shall be determined in accordance with Article 121 of this Code.

3. Individual entrepreneurs are entitled to determine the moment of actual realization in accordance with Article 121 of this Code.

The method of determining the moment of actual realization in accordance with Article 121 of this Code, chosen by the individual entrepreneurs specified in part one of this clause, shall be established by a written decision of the individual entrepreneur for all turnovers on realization of goods (works, services), property rights and is not subject to change during the tax period.

4. For the purposes of clauses 1 and 3 of this Article, the moment of actual realization in relation to the sums:

of the difference arising in accordance with indent two of part two of clause 8 and part two of clause 9 of Article 120 of this Code shall be recognized the day of their receipt;

increasing the tax base in accordance with clause 4 of Article 120 of this Code shall be recognized the day of their receipt.

5. For payers applying the simplified taxation system and individual entrepreneurs determining the moment of actual realization in accordance with clause 1 of this Article, the sums of value added tax actually paid when acquiring goods (works, services), property rights in the territory of the Republic of Belarus or paid upon importation  of goods to the territory of the Republic of Belarus are subject to deduction after they were reflected in the journal for registering incomes and expenses of organizations and individual entrepreneurs applying the simplified taxation system (in record keeping of incomes and expenses of individual entrepreneurs), unless otherwise established by this Article, on the basis of documents specified in clause 5 of Article 132 of this Code.

6. For the purposes of clause 5 of this Article, the value added tax sums presented by the seller are recognized as actually paid:

6.1. when acquiring goods (works, services), property rights on which the claims are transferred and received, the debt is delegated, the setoff of mutual claims is performed, and also settlements for which are performed by third persons, – accordingly on the date of transfer and receipt of the claim, date of delegation of the debt, date of setoff of mutual claims, date of repayment of the debt before the seller by third persons;

6.2. when goods (works, services), property rights are being acquired by the commissioner (agent) on the instruction of the commitent (principal) – on the date of performing settlement with the seller;

6.3. when acquired goods (works, services), property rights have been paid partially – in the amount of the value added tax sum determined as the product of the share of the value added tax in the value of the acquired goods (works, services), property rights and the sum of their partial payment.

7. Provisions of clause 25, sub-clauses 26.2 and 26.4 of  clause 26 of Article 133 of this Code shall be applied by payers of the simplified system and individual entrepreneurs determining the moment of actual realization in accordance with clause 1 of this Article in relation to the value added tax sums actually paid when acquiring goods (works, services), property rights or paid upon importation  of goods to the territory of the Republic of Belarus

8. For individual entrepreneurs determining the moment of actual realization of goods (works, services), property rights in accordance with Article 121 of this Code, the value added tax sums actually paid when acquiring goods (works, services), property rights in the territory of the Republic of Belarus, regardless of the date of conducting settlements for goods (works, services), property rights being acquired, or paid upon importation  of goods to the territory of the Republic of Belarus are subject to deduction after they were reflected in the journal for registering incomes and expenses of organizations and individual entrepreneurs applying the simplified taxation system (in record keeping of incomes and expenses of individual entrepreneurs), on the basis of documents specified in clause 5 of Article 132 of this Code.

9. For simplified taxation payers and individual entrepreneurs determining the moment of actual realization of goods (works, services), property rights in accordance with clause 1 of this Article, the value added tax sums actually paid when acquiring goods (works, services), property rights (for individual entrepreneurs determining the moment of actual realization in accordance with Article 121 of this Code – presented sums of the value added tax) are recognized as tax deduction in the reporting period on which falls the latest from the following dates:

the date of reflection  of actually paid sums of  the value added tax in the journal for registering incomes and expenses of organizations and individual entrepreneurs applying the simplified taxation system (in record keeping of incomes and expenses of individual entrepreneurs) – for payers applying the simplified taxation system and individual entrepreneurs determining the moment of actual realization in accordance with clause 1 of this Article;

the date of reflection  of presented sums of  the value added tax in the journal for registering incomes and expenses of organizations and individual entrepreneurs applying the simplified taxation system (in record keeping of incomes and expenses of individual entrepreneurs) – for individual entrepreneurs determining the moment of actual realization in accordance with clause 121 of this Article;

the date when the payer signed with the electronic digital signature the electronic invoice, being a basis for deducting the sum of value added tax, or one of the dates chosen by the payer in accordance with part two of this clause.

When the payer signs with the electronic digital signature the electronic invoices:

not later than on the 20th day of the month following the reporting period in which the conditions established by this Article for deducting the value added tax sums are met and simultaneously not later the the date of submission of the tax declaration (calculation) on the value added tax for that reporting period, the payer is entitled to deduct the value added tax sums for the mentioned reporting period, provided that the date of performance of the operation in the electronic invoice falls on the same reporting period;

after the submission of the tax declaration (calculation) on the value added tax for the reporting period, in which the conditions established by this Article for deducting the value added tax are met, and the date of the operation in the electronic invoice falls on the same reporting period, the payer is entitled to deduct the value added tax sums for that reporting period for which the established deadline for the submission of the tax declaration (calculation) on value added tax follows after the payer signed the electronic invoices with the electronic digital signature.

Article 141. Specific features of computation and payment of the value added tax when  services are rendered by foreign organizations in electronic form to natural persons

1. Foreign organizations, when rendering services in electronic form for natural persons specified in clause 2 of this Article (including individual entrepreneurs), the place of realization of which according to sub-clause 1.5 of clause 1 of Article 117 of this Code is recognized the territory of the Republic of Belarus, shall effectuate computation and payment of the value added tax, submission of the tax declaration (calculation) to the tax body of the Republic of Belarus, with the exception of the instances when the duty on computation and payment of the value added tax is imposed on other obliged persons specified in clauses 3 and4 of this Article.

2. A natural person (including an individual entrepreneur) is recognized as acquiring services in electronic form, the place of realization of which is recognized as the territory of the Republic of Belarus, if at least one of the following conditions is met:

the place of actual location of the natural person (including individual entrepreneur) is the Republic of Belarus;

the place of location of the bank where the account is opened, used by the natural person (including individual entrepreneur) to pay for services, or the electronic money operator, through which the natural person (including individual entrepreneur) carries out payment for services, is the territory of the Republic of Belarus;

the network (IP) address of the device used by the natural person (including individual entrepreneur) when acquiring services in electronic form is registered in the Republic of Belarus (refers to the address space of the Republic of Belarus);

the international country code of the telephone number used by the natural person (including individual entrepreneur) to acquire or pay for services has been assigned to the Republic of Belarus.

3. When foreign organizations render services in electronic form for natural persons (including individual entrepreneurs) acquiring services in the electronic form in the Republic of Belarus with intermediation of Belarusian organizations, individual entrepreneurs, permanent representations of foreign organizations, being put on record in the tax bodies of the Republic of Belarus, which participated in settlements directly with such natural persons (including individual entrepreneurs) for the mentioned services on the basis of contracts of commission, agency or other similar civil-law contracts with foreign organizations rendering such services, computation and payment of the value added tax shall be performed by the said intermediaries in the order established by clause 3 of Article 114 of this Code.

4. When foreign organizations render services in electronic form for natural persons (including individual entrepreneurs) acquiring services in the electronic form in the Republic of Belarus when several foreign organizations specified in indent three of sub-clause 2.12 of clause 2 of Article 13 of this Code, the person who is obliged to compute and pay the value added tax shall be recognized that foreign intermediary which directly participates in settlements with the mentioned natural persons regardless whether or not it has a contract with the foreign organization rendering services in electronic form to natural persons (including individual entrepreneurs) in the Republic of Belarus.

5. When foreign organizations rendering services in electronic form for natural persons, including on the basis of contracts of commission, agency and other similar civil-law contracts realize services in electronic form, the tax base shall be determined as the value of those services with account of the sum of the value added tax.

When the tax base is determined for  realization of services specified in part one of this clause, recalculation of the foreign currency in Belarusian rubles is performed at the official rate of the foreign currency established by the National Bank on the moment of actual realization of the said services.

In the event of a refusal by a natural person (including individual entrepreneur) acquiring services in electronic form from services rendered or a decrease (increase) in the value of services, the tax base is subject to corresponding correction in the tax period in which the refusal from rendered services or increase (decrease) of the value of services has  was effectuated.

6. The moment of actual realization of services in electronic form by foreign to natural persons (including individual entrepreneurs) shall be recognized the last the day of the tax period on which falls the day of payment, including advance payment, or the day of another termination of obligations by natural persons (including individual entrepreneurs).

7. The tax period for the value added tax for foreign organizations rendering services in electronic form to natural persons (including individual entrepreneurs) is recognized a calendar quarter.

8. When foreign organizations rendering services in electronic form to natural persons realize services in electronic form to natural persons (including individual entrepreneurs), the value added tax sum subject to computation and payment shall be determined as a product of the tax base determined in the order established by clause 5 of this Article and the tax rate established by clause 3 of Article 122 of this Code divided by the amount of the tax rate increased by 100.

9. The value added tax sums presented upon acquiring (paid upon importation into the territory of the Republic of Belarus) of goods (works, services), property rights to a foreign organization are not subject to deduction and do not decrease the value added tax sum computed by it when rendering services in electronic form to natural persons (including individual entrepreneurs).

10. Foreign organizations rendering services in electronic form to natural persons (including individual entrepreneurs) shall submit to the inspectorate of the Ministry on Taxes and Dues for the city of Minsk through the private office of the payer in electronic form according to the form and format not later than on the 20th day of the month following the expired tax period:

either a tax declaration (calculation) for the value added tax in the form of electronic document;

or information containing data on turnovers on realization of services and the computed sum of the value added tax subject to payment.

Payment of the value added tax shall be performed not later than on 22nd day of the month following the expired tax period.

Article 142. Return (reimbursement) of value added tax sums to diplomatic missions and consular offices of foreign states and also to their staff (including members of their families)

1. Return (reimbursement) of value added tax sums to diplomatic missions and consular offices of foreign states shall be effectuated quarterly having regard to provisions of this Article in relation to:

turnovers on realization thereto in the territory of the Republic of Belarus of goods (works, services) and providing them in the territory of the Republic of Belarus with a lease object for their official activity;

turnovers on realization in the territory of the Republic of Belarus of goods (works, services) for personal use of diplomatic and/or administrative and technical staff of those missions and offices (including members of their families living with them).

2. Return (reimbursement) of value added tax sums on turnovers on realization of goods (works, services) and provision of lease object, specified in clause 1 of this Article shall be performed if in relation to diplomatic missions and consular offices of the Republic of Belarus, diplomatic and/or administrative and technical staff of those missions and offices (including members of their families living with them):

a similar procedure is established by the legislation of the respective foreign state;

a similar norm is provided for by a treaty of the Republic of Belarus.

The list of such foreign states is determined by the Ministry of Foreign Affairs jointly with the Ministry on Taxes and Dues. In doing so with a view of implementation of the principle of reciprocity, restrictions on amounts and conditions of return (reimbursement) of the value added tax may be established.

3. For reimbursement of the value added tax paid upon acquisition of goods (works, services), receipt in temporary possession and use in the territory of the Republic of Belarus of a lease object for official activity of diplomatic missions and consular offices of foreign states, an official letter (note) of the diplomatic mission or consular office of a foreign state (certified by the stamp and the signature of the head of this mission or office or by a person substituting him) shall be submitted quarterly to the tax body at the place of putting on record of the diplomatic mission or consular office with enclosure of the following documents:

calculation of the valued added tax sum to be reimbursed from the budget to diplomatic missions and consular offices of foreign states according to the established form and completed in the established order;

contracts (copies of contracts certified by the stamp and the signature of the head of this mission or office or by a person substituting him) for acquisition of goods (works, services), letting in the territory of the Republic of Belarus of objects into lease, concluded by the diplomatic mission or consular office of a foreign state. Contracts (certified copies thereof) are submitted to the tax body if available. Certified copies of contracts remain in the tax body and their repeat submission to the tax body is not required;

primary accounting documents received from the value added tax payer being put on record in the tax body of the Republic of Belarus (copies of such primary accounting documents certified by the stamp and the signature of the head of the mission or body or by a person substituting him), in which the sum of value added tax is singled out;

documents confirming the actual payment for goods (works, services), payment of rental by the diplomatic mission or consular office of a foreign state or agreement (copy of the agreement certified by the stamp and the signature of the head of the mission or body or by a person substituting him) on providing compensation instead of fulfilling the obligation.

4. For reimbursement of the value added tax on goods (works, services) being acquired for personal use of diplomatic and/or administrative and technical staff of diplomatic missions and consular offices of foreign states (including members of their families living with them), an official letter (note) of the diplomatic mission or consular office of a foreign state (certified by the stamp and the signature of the head of this mission or office or by a person substituting him) shall be submitted quarterly to the tax body with enclosure of the following documents:

calculation of the valued added tax sum to be reimbursed from the budget to diplomatic missions and consular offices of foreign states;

documents confirming the actual payment for corresponding goods (works, services), payment of rental by diplomatic and/or administrative and technical staff of diplomatic missions or consular offices of foreign states (including members of their families living with them) or an agreement (copy of the agreement certified by the stamp and the signature of the head of the mission or body or by a person substituting him) on providing compensation instead of fulfilling the obligation.

5. If the documents confirming the payment, provided by this Article, do not contain the value added tax sum indicated as a separate entry, presented by the seller – value added tax payer (with the exception of the payer of the value added tax which applies exemption from the value added tax in accordance with the legislation), then the tax body shall, if there are description of goods (works, services) in such documents, determine the value added tax sum to be reimbursed by a calculation method as the product of the paid value of  goods (works, services) and the respective rate of the value added tax established by clauses 2–4 of Article 122 of this Code divided by the amount of the tax rate increased by 100.

6. Reimbursement of the value added tax with regard to provisions of this Article shall be performed on the basis of documents specified in indents four and five of clause 3 and indent three of clause 4 of this Article, drawn up (issued) not earlier than the beginning of a twelve-month period preceding the beginning of the quarter in which the official letter (note) provided by this Article of the diplomatic mission or consular office of the foreign state has been submitted.

7. Within one month from the day of submission of the official letter (note) of the diplomatic mission or consular office of a foreign state (certified by the stamp and the signature of the head of this mission or office or by a person substituting him) with enclosure of documents specified in this Article, the tax body carries out their inspection and effectuates the reimbursement of the value added tax or takes decision to refuse the reimbursement of the value added tax.

Decision to refuse the reimbursement of the value added tax shall be directed by the tax body to the diplomatic mission or consular office of a foreign state within two days from the day of its adoption.

8. The reimbursement of value added tax provided by this Article shall be made to the accounts specified in the official letter (note) of the diplomatic mission or consular office of a foreign state (certified by the stamp and the signature of the head of this mission or office or by a person substituting him).

Article 143. Return (reimbursement) of value added tax sums to missions and bodies of international organizations and interstate formations and also to their co–workers

1. Return (reimbursement) of value added tax sums to missions and bodies of international organizations and interstate formations shall be effectuated quarterly having regard to provisions of this Article in relation to:

turnovers on realization thereto in the territory of the Republic of Belarus of goods (works, services) and providing them in the territory of the Republic of Belarus with a lease object for their official activity,

turnovers on realization in the territory of the Republic of Belarus of goods (works, services) for personal use of co-workers of those missions and bodies of international organizations and interstate formations not being citizens of the Republic of Belarus.

2. The list of missions and bodies of international organizations and interstate formations, carrying out activity in the territory of the Republic of Belarus, is approved by the Ministry of Foreign Affairs jointly with the Ministry on Taxes and Dues.

3. For reimbursement of the value added tax paid upon acquisition of goods (works, services), receipt in temporary possession and use in the territory of the Republic of Belarus of a lease object for official activity of missions and bodies of international organizations and interstate formations, an official letter (note) of the mission and body of an international organization or interstate formation (certified by the stamp and the signature of the head of this mission or body or by a person substituting him) shall be submitted quarterly to the tax body at the place of putting on record of the mission and body of an international organization or interstate formation with enclosure of the following documents:

calculation of the value added tax sum to be reimbursed from the budget to missions and bodies of international organizations and interstate formations, the form and procedure for completion of which are approved by the Ministry on Taxes and Dues;

contracts (copies of contracts certified by the stamp and the signature of the head of this mission or body or by a person substituting him) for acquisition of goods (works, services), providing in the territory of the Republic of Belarus of objects into lease, concluded by the mission and body of an international organization or interstate formation. Contracts (certified copies thereof) are submitted to the tax body if available. Certified copies of contracts remain in the tax body and their repeat submission to the tax body is not required;

primary accounting documents received from the value added tax payer being put on record in the tax body of the Republic of Belarus (copies of such primary accounting documents certified by the stamp and the signature of the head of the mission or body or by a person substituting him), in which the sum of value added tax is singled out;

documents confirming the actual payment for goods (works, services), payment of rental by the mission or body of the international organization and interstate formation or an agreement (copy of the agreement certified by the stamp and the signature of the head of the mission or body or by a person substituting him) on providing compensation instead of fulfilling the obligation.

4. For reimbursement of the value added tax on goods (works, services) being acquired for personal use of the staff of these missions and bodies of international organizations and interstate formations, not being citizens of the Republic of Belarus, an official letter (note) of the mission and body of an international organization or interstate formation (certified by the stamp and the signature of the head of this mission or body or by a person substituting him) shall be submitted quarterly to the tax body with enclosure of the following documents:

calculation of the value added tax sum to be reimbursed from the budget to missions and bodies of international organizations and interstate formations;

documents confirming the actual payment for goods (works, services), payment of rental by employees of  the missions or bodies of international organizations and interstate formations not being citizens of the Republic of Belarus or an agreement (copy of the agreement certified by the stamp and the signature of the head of the mission or body or by a person substituting him) on providing compensation instead of fulfilling the obligation.

5. If the documents confirming the payment, provided by this Article, do not contain the value added tax sum indicated as a separate entry, presented by the seller – value added tax payer (with the exception of the payer of the value added tax which applies exemption from the value added tax in accordance with the legislation), the tax body shall, if there are description of goods (works, services) in such documents, determine the tax sum to be reimbursed by a calculation method as the product of the paid value of  goods (works, services) and the respective rate of the value added tax established by clauses 2–4 of Article 122 of this Code divided by the amount of the tax rate increased by 100.

6. Reimbursement of the value added tax with regard to provisions of this Article shall be performed on the basis of documents specified in indents four and five of clause 3 and indent three of clause 4 of this Article, drawn up (issued) not earlier than the beginning of a twelve-month period preceding the beginning of the quarter in which the official letter (note) provided by this Article of the mission and body of an international organization or interstate formation has been submitted.

7. Within one month from the day of submission of the official letter (note) of the mission and body of an international organization or interstate formation (certified by the stamp and the signature of the head of this mission or body or by a person substituting him) with enclosure of documents specified in this Article, the tax body carries out their inspection and effectuates the reimbursement of the value added tax or takes decision to refuse the reimbursement of the value added tax.

Decision to refuse the reimbursement of the value added tax shall be directed by the tax body to the mission and body of an international organization or interstate formation within two days from the day of its adoption.

8. The reimbursement of value added tax provided by this Article shall be made to the accounts specified in the official letter (note) of the mission and body of an international organization or interstate formation (certified by the stamp and the signature of the head of this mission or body or by a person substituting him).

Article 144. Conditions, procedure and time limits of return of the value added tax to foreign persons upon acquisition of goods in retail trade through shops

1. Upon acquisition of goods in retail trade through shops, the value of which on a payment document (payment documents) and/or and card-check (card-checks) confirming the payment for the goods (later on in this article – payment document) exceeds the sum of 80 Belarusian rubles (with account of the value added tax) within one day in the shop of the payer that concluded the contract on rendering services on return of the value added tax to foreign persons with an organization that has the right to return the value added tax to foreign persons (later on in this article – foreign persons) are entitled to receive, in the amount, time limits and under the procedure, determined by the Council of Ministers of the Republic of Belarus, the return of the sum of valued added tax in the event of exportation of these goods outside the customs territory of the Eurasian Economic Union within three months from the day of acquisition thereof.

2. Return of the value added tax is not performed concerning the goods:

exempted from the value added tax in accordance with the legislation upon importation into the territory of the Republic of Belarus;

turnovers on realization of which in the territory of the Republic of Belarus are exempted from the value added tax in accordance with the legislation;

levied with the value added tax at the rate in the amount of ten (10) percent in accordance with clause 2 of article 122 of this Code;

recognized excisable in accordance with clause 1 of article 150 of this Code.

3. The value added tax is subject to return to a foreign person by the organization that has the right to return the value added tax to foreign persons, which concluded a contract on rendering services with the payer that realized the good to the foreign person in retail trade through the shop, after the foreign person submits to its address the confirmation of exportation of the goods outside the customs territory of the Eurasian Economic Union.

Confirmation of exportation by the foreign person outside the customs territory of the Eurasian Economic Union of the goods realized in retail trade through shops shall be a cheque in the special form “Чек на возврат НДС (Cheque for the VAT return)”, containing obligatory details provided for by this Article, notice of the customs body of a member state of the Eurasian Economic Union confirming the movement of the goods outside the customs territory of the Eurasian Economic Union along with a payment document enclosed of the shop thereto confirming the payment for the exported good, in which the rate and the sum of the value added tax are specified (later on in this Article – confirmation about the exportation of the good). The procedure of issuance of the confirmation about the exportation of the goods outside the customs territory of the Eurasian Economic Union is established by the Council of Ministers of the Republic of Belarus, unless otherwise established by treaties of the Republic of Belarus and/or acts constituting the law of the Eurasian Economic Union. Confirmation about the exportation of the good must be presented to the organization that has the right to return the value added tax to foreign persons within six months from the date of exportation of the good outside the customs territory of the Eurasian Economic Union.

The cheque for the return of the value added tax shall be handed to the foreign person and must contain the following mandatory requisites in Russian and English:

title of the document (“Чек на возврат НДС (Cheque for the VAT return)”), its number and the date of drawing up;

name, address of the place of location and the accounting number of the payer that realized the good the shop;

name, address of the place of location and the accounting number of the payer of the organization that has the right to return the value added tax to foreign persons;

surname, own name, patronymic (if such is available) of the buyer – foreign person, details of his exit travel document, indication of the state of his permanent residence;

description and quantity of the acquired good;

sum of the purchase with the value added tax and without the value added tax on the payment document of the shop;

rate of the value added tax in the amount of twenty (20) percent and the sum of the value added tax according to the payment document of the shop;

sum of the value added tax to be returned to the foreign person by the organization that has the right to return the value added tax to foreign persons;

number of the payment document of the shop confirming the realization of the good specified in the cheque for the return of value added tax;

signature of the person who formalized the cheque for the return of value added tax.

4. Confirmation about the exportation of the good is presented by the foreign person to the address of the organization that has the right to return the value added tax to foreign persons under the procedure established by this organization.

The organization that has the right to return the value added tax to foreign persons and that carried out the return of the value added tax to a foreign person presents for reimbursement of the sum of the value added tax to the payer that realized the good to the foreign person through the shop with which it concluded the contract on rendering services. Information about the payers with which the organization that has the right to return the value added tax to foreign persons concluded the contract on rendering services and also about the sums of the value added tax returned to foreign persons is presented monthly by such organization to the tax body at the place of putting on record according to the form and under the procedure established by the Council of Ministers of the Republic of Belarus.

The sum of the value added tax presented for reimbursement on which the return has been performed to the foreign person is indicated in the act on reimbursement of sums of the value added tax, which is to be drawn up according to the established form and completed in the established order by the organization that has the right to return the value added tax to foreign persons. The act on reimbursement of sums of the value added tax in two copies is sent, till the 15 day of each month, for signing to the payer that realized the good to the foreign person through the shop and indicated in the confirmation about exportation of the good.

The act on reimbursement of sums of the value added tax signed by the parties of the contract on rendering services is the documentary confirmation of exportation of goods by the foreign person outside the customs territory of the Eurasian Economic Union for the payer that realized the good to the foreign person through the shop.

The payer that realized the good to the foreign person through the shop shall, within seven working days after the signing of the act on reimbursement of sums of the value added tax being the documentary confirmation of exportation of the good outside the customs territory of the Eurasian Economic Union (unless another time limit is established in the contract on rendering services), remit the sums of value added tax presented for reimbursement to the account of the organization that has the right to return the value added tax to foreign persons, open in a bank of the Republic of Belarus.

CHAPTER 15
EXCISES

Article 145. Payers of excises

Payers of excises (later on in this Chapter – payers) are deemed to be:

organizations having regard to specific features established by Article 146 of this Code;

individual entrepreneurs with regard to specific features established by Article 146 of this Code;

natural persons on which on which the duty to pay the value added tax collected when goods are being imported to the territory of the Republic of Belarus is imposed in accordance with this Code and/or the customs legislation.

Article 146. Specific features of recognizing certain organizations and individual entrepreneurs as payers upon realization (transfer) of excisable goods

1. When producing excisable goods, the following shall be recognized as payers:

1.1. organizations and individual entrepreneurs that carry out production of excisable goods from any kind or raw materials (give-and-take or own) and/or with the use of excisable goods.

The production of excisable goods also includes:

filling of alcohol products and beer, carried out as a part of overall process of production of these excisable goods in accordance with requirements of state standards and/or other technical legal acts that regulate the process of production of said excisable goods and are approved in the order established by the legislation;

any types of goods mixtures (including infusion of alcohol products) in places of storage and realization thereof (with the exception of alcohol products being realized at retail prices which were produced by way of mixing or infusing alcohol products by organizations or individual entrepreneurs carrying out public catering) as a result of which an excisable good arises;

1.2. legal persons of the Republic of Belarus carrying out contract-based production of tobacco articles.

2. Upon importation into the territory of the Republic of Belarus of excisable goods under contracts of commission, agency, and other similar civil-law contracts, payers are recognized to be organizations and individual entrepreneurs that import excisable goods.

3. Upon realization of excisable goods imported into the territory of the Republic of Belarus under contracts of commission, agency, and other similar civil-law contracts, payers are recognized to be organizations and individual entrepreneurs entrusted with the realization of excisable goods.

4. Upon realization (transfer) of liquefied hydrocarbon gas and natural fuel compressed gas for refuelling of vehicles (including own vehicles) through filling stations, and also using fuel dispensing equipment, organizations and individual entrepreneurs that carry out such realization (transfer) shall be recognized to be payers.

5. When using (selling, transferring) not in accordance with the intended purpose diesel fuel acquired (received) for the production of diesel fuel with fatty acid methyl esters, organizations and individual entrepreneurs that allowed such inappropriate use (realization, transfer) shall be recognized as payers.

6. Legal person of the Republic of Belarus shall be recognized as payers when using (selling, transferring) not in accordance with the intended purpose:

raw ethanol from edible raw materials, acquired (received)  for production of rectified ethanol;

ethyl rectified, from edible raw materials, acquired (received) for production of alcoholic products, vinegar and low-alcohol beverages;

alcohol acquired (received) for the production of medicines, veterinary drugs;

alcohol-containing products with alcohol by volume of 7 percent and more, acquired (received) for production of alcohol-free beverages.

Article 147. Excise taxation objects

1. Excise taxation objects are recognized:

1.1. excisable goods produced by the payers and realized (transferred) by them in the territory of the Republic of Belarus;

1.2. excisable goods imported into the territory of the Republic of Belarus and/or arising of other circumstances with the presence of which this Code, other acts of the tax and customs legislation, treaties of the Republic of Belarus, including acts constituting the law of the Eurasian Economic Union connect the arising of a duty on payment of excises;

1.3. excisable goods imported into the territory of the Republic of Belarus, upon realization (transfer) thereof.

Excisable goods imported into the territory of the Republic of Belarus in relation to which firm (specific) excise rates are established are not recognized as excise taxation object upon realization (transfer) if upon importation of these excisable goods into the territory of the Republic of Belarus, the payment of excises has been made or exemption from excises in accordance with the legislation has been applied.

The fact of payment of excises or application of the exemption from excises in accordance with the legislation shall be confirmed:

by a tax body of the Republic of Belarus – in relation to excisable goods being imported from the territory of member states of the Eurasian Economic Union, with the exception of excisable goods subject to be marked by excise stamps of the Republic of Belarus;

by a customs body of the Republic of Belarus – in relation to excisable goods being imported into the territory of the Republic of Belarus from the states other than the member states  of the Eurasian Economic Union, and also upon importation from the territory of the member states of the Eurasian Economic Union of excisable goods subject to be marked by excise stamps of the Republic of Belarus;

1.4. excisable goods specified in sub-clause 1.13 of clause 1 of Article 150 of this Code, being realized (transferred) in the territory of the Republic of Belarus by the payers defined by clause 4 of Article 146 of this Code;

1.5. excisable goods specified in sub-clauses 1.1, 1.6 and 1.10 of clause 1 of Article 150 of this Code, used (realized, transferred) not in accordance with the intended purpose by the payers specified by clauses 5 and 6 of Article 146 of this Code.

2. For the purposes of this Chapter, realization (transfer) of excisable goods are also recognized:

2.1. gratuitous transfer of excisable goods;

2.2. exchange with involvement of excisable goods;

2.3. transfer (realization) of excisable goods by the payer to own workers;

2.4.  transfer of excisable goods as objects of pledge by the pledgor to the pledgeholder (creditor) upon non-fulfillment or improper fulfillment of the obligation secured by the pledge;

2.5. transfer of excisable goods under an agreement on providing compensation instead of fulfilling the obligation or novation, under a loan contract;

2.6. transfer by the payer of excisable goods produced by him for the purpose of using for own needs.

For the purposes of this Chapter, using excisable goods for own needs is understood:

any use by the payer of excisable goods for productive or non-productive purposes;

other retirement of excisable goods, including inclusion of the value of those excisable goods in costs of the payer on production and realization of goods (works, services), property rights and/or in non-realization expenses when for computing the tax on profits for organizations (personal income tax  – for individual entrepreneurs), and also at the expense of other sources;

actual losses of excisable goods in the course of storage, movement and transportation above the limits of normal wastage, established by the legislation.

Actual loss of excisable goods in the course of storage, movement and transportation within the limits of normal wastage, established by the legislation, and in their absence – within the limits of the norms established by the head in agreement with the owner, the general meeting of participants, members of the consumer society, plenipotents or with the person authorized by them, does not constitute use of excisable goods for own needs.

In that instance normal wastage means losses (decrease of quantity of production while preserving the quality within the requirements of normative legal acts) being the result of natural change of physicochemical properties and/or impact of meteorological factors. Normal wastage does not include technological losses and losses from abnormal spoilage, losses provoked by violation of requirements of technical normative legal acts, rules of carriage of goods, imperfection of means of goods protection form losses and condition of applied technological equipment, and also losses because of damaged packing and change of the quality of production;

2.7. transfer by the organization of excisable goods produced by it to its his structural divisions for production of other excisable non-excisable goods;

2.8. transfer by the payer of excisable goods produced by him as raw materials (materials) for processing on give-and-take conditions;

2.9. transfer by the payer of excisable goods produced by him as a contribution to the statutory fund of organizations, and also as a contribution under a contract of simple partnership (contract on joint activity);

2.10. transfer by an organization of excisable goods produced by it to its participant (his successor or heir) upon his withdrawal (retirement) from the organization;

2.11. transfer of excisable goods produced within the framework of a contract of simple partnership (contract on joint activity) to a participant (his successor or heir) of the said contract upon singling out of his stake from the property being in the common ownership of participants of the contract or upon division of such property;

2.12. transfer by the payer of excisable goods produced by him from give-and-take raw materials to the holder (owner) of the said raw materials or to other persons.

Give-and-take raw materials are recognized raw materials, materials, production, being transferred by possessors (owners) without payment to other organizations and individual entrepreneurs for production of excisable goods via processing (refinement), including filling. Give-and-take raw materials are not acquired and/or produced raw materials, materials, production, the value of which is accounted by the organization or individual entrepreneur in the value of works (services) on production of excisable goods from give-and-take raw materials;

2.13. shipment (transfer) by the payer of tobacco articles produced by him under contract-based production to the ordering customer and/or other persons.

Article 148. The tax base of excises

1. The tax base, depending on excises rates established in relation to excisable good, shall be determined:

1.1. upon realization (transfer) of excisable goods produced (including from the give-and-take raw materials) by the payer:

as volume of realized (transferred) excisable goods in kind – on excisable goods in relation to which firm (specific) rates are established;

As the value of realized (transferred) excisable goods, determined based on selling prices without account of excises –  on excisable goods in relation to which percentage (ad valorem) rates are established.

The tax base is determined separately on each kind of realized (transferred) excisable goods;

1.2. Upon importation into the territory of the Republic of Belarus of excisable goods the collection of excises on which is carried out by the tax bodies:

as volume of excisable goods in kind – on excisable goods in relation to which firm (specific) excises rates are established;

as value of excisable goods – on excisable goods in relation to which percentage (ad valorem) excises rates are established;

1.3. Upon importation into the territory of the Republic of Belarus of excisable goods the collection of excises on which is carried out by the customs bodies:

as volume of excisable goods in kind – on excisable goods in relation to which firm (specific) excises rates are established;

as customs value of excisable goods increased by payable sums of customs duties – on excisable goods in relation to which percentage (ad valorem) rates are established;

1.4. upon realization (transfer) of excisable goods imported into the territory of the Republic of Belarus:

as volume of excisable goods in kind – on excisable goods in relation to which firm (specific) excises rates are established, imported into the territory of the Republic of Belarus without payment of excises;

as the value of realized (transferred) excisable goods, calculated based on applied prices without account of excises – on excisable goods in relation to which percentage (ad valorem) excises rates are established;

1.5. upon realization (transfer) in the territory of the Republic of Belarus by the payers defined by clause 4 of Article 146 of this Code, of acquired (imported) excisable goods specified in sub-clause 1.13 of clause 1 of Article 150 of this Code – as the volume of excisable goods in kind on excisable goods acquired (imported) without the payment of excises;

1.6. upon realization (transfer) not in accordance with the intended purpose by the payers defined by clauses 5 and 6 of Article 146 of this Code, of acquired (imported) excisable goods specified in sub-clause 1.1, 1.6 and 1.10 of clause 1 of Article 150 of this Code – as the volume of excisable goods in kind on excisable goods acquired with a zero excises rate (without excises).

2. Upon realization (transfer) of excisable goods imported into the territory of the Republic of Belarus, in relation to which percentage (ad valorem) rates of excises are established, at prices without account of excises which are less than the customs value thereof increased by payable sum of customs duties, the taxation base is determined based on the customs value increased by payable sum of customs duties.

Upon realization (transfer) of excisable goods imported into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union, in relation to which percentage (ad valorem) rates of excises are established, at prices without account of excises which are less than the acquisition price thereof, the taxation base is determined based on the acquisition price.

3. When determining the taxation base upon realization (transfer) of excisable goods in relation to which percentage (ad valorem) rates of excises are established, the value of these excisable goods, paid (payable) in foreign currency, is determined in Belarusian rubles at the official rate established by the National Bank on the moment of actual realization (transfer) of excisable goods.

Article 149. Determination of the moment of actual realization (transfer) of excisable goods

1. The moment of actual realization (transfer) of excisable goods is determined as the day of shipment (transfer) (including to a separate division of the payer) of excisable goods, falling within the tax period.

The day of shipment (transfer) of excisable goods is recognized the date of release thereof performed under the established procedure.

The day of shipment (transfer) of excisable goods on the basis of contracts of commission, agency or other similar civil-law contracts shall be recognized the date of shipment (transfer) of excisable goods by their owner or rightholder to the commissioner (agent) or the date of shipment (transfer) of excisable goods by the commissioner (agent) to the buyer.

2. Payers, upon realization (transfer) of alcoholic products, low-alcohol beverages with a volume fraction of ethyl alcohol of more than 1.2 percent and less than 7 percent (low-alcoholic natural beverages, other low-alcohol beverages), ciders (with the exception of fruit and berry) and/or beer is entitled to determine the moment of actual sale (transfer) of excisable goods as they are paid.

The method for determining the moment of the actual realization (transfer) of excisable goods shall be established by the accounting policy with regard to the requirements stipulated by parts three and four of this clause and is not subject to change during the calendar year.

In the case of the implementation by payers of the right to determine the moment of actual realization (transfer) of excisable goods as they are paid, the moment of actual realization (transfer) of excisable goods is determined within the tax period as:

of crediting monetary means to the account of the payer, but not later than sixty days from the day of shipment (transfer) of excisable goods;

in the event of realization of excisable goods for cash monetary means – the day of receipt of said monetary means to the cash register of the payer, but not later than sixty days from the day of shipment (transfer) of goods.

The day of receipt of monetary means on the account of the payer upon realization of excisable goods on the basis of contracts of agency, commission and other similar civil-law contracts shall be recognized the day of receipt of monetary means on the account of the commissioner (agent), and in the event if the contract stipulates that the monetary means for goods  realized by the commissioner (agent) are to be remitted on the account of the payer – the day of receipt of monetary means directly on the account of the payer.

3. Upon gratuitous transfer of excisable goods, realization (transfer ) of excisable goods by the payers to their workers, exchange with involvement of excisable goods, transfer of excisable goods under an agreement on providing compensation instead of fulfilling the obligation or novation, loan contract, the moment of actual realization (transfer) of excisable goods is determined as the day, falling within the tax period, of such transfer or exchange, accordingly.

The day of exchange is recognized the date of performance of each shipment of excisable goods.

4. When using excisable goods for own needs, the moment of actual realization is determined as the day of drawing up a primary accounting document or, when there is no primary accounting document, another document evidencing the using of excisable goods for own needs, including release into production of goods (works, services) and other retirement.

5. When using excisable goods for production of other excisable and non-excisable goods, the moment of actual realization is determined as the day of transfer of such excisable goods into production, falling within the tax period.

6. The moment of actual realization of excisable goods produced from these raw materials is determined as the day of shipment (transfer) of excisable goods, falling within the tax period:

6.1. in accordance with formalized documents on the instructions of the owner of those goods;

6.2. in accordance with formalized documents in case of fulfilment of a loan contract;

6.3. in accordance with formalized documents to the person processing those goods upon payment with excisable goods for services on production of goods from give-and-take raw materials;

6.4. upon change of the owner of excisable goods produced from give-and-take raw materials.

7. Upon contract-based production of tobacco articles, the moment of actual realization produced is determined as the day of shipment (transfer) or produce tobacco articles to the ordering customer and/or other persons.

8. Upon use (realization, transfer) of excisable goods not in accordance with the intended purpose, the moment of actual realization is determined as the day, falling on the tax period, of drawing up a primary accounting document or, when there is no primary accounting document – the day drawing up of another document evidencing the use (realization, transfer) of excisable goods not in accordance with the intended use.

Article 150. Excisable goods

1. Excisable goods are recognized to be:

1.1. alcohol;

1.2. alcohol products;

1.3. low-alcohol beverages of an actual alcoholic strength by volume of more than 1.2% vol and less than 7 percent vol (low-alcohol natural beverages, other low-alcohol beverages).

For the purposes of this Chapter the following is recognized as:

low-alcohol natural beverages – low-alcohol beverages containing ethyl alcohol only of endogenous origin, made without preservative agents (with the exception of sorbic acid and its salts), sweeteners, natural and nature-identical flavoring agents, synthetic and artificial coloring substances;

other low-alcohol beverages – low-alcohol beverages with the exception of low-alcohol natural beverages;

1.4. beer, beer cocktail.

For the purposes of this Chapter, the beer cocktail is recognized to be a product produced by way of blending beer or special beer and other components without adding ethyl rectified alcohol from edible raw materials, containing at lease 50 percent beer in finished beer cocktail;

1.5. ciders;

1.6. edible alcohol-containing products in the form of solutions, emulsions, suspensions, produced with the use of ethyl alcohol;

1.7. non-food alcohol-containing products in the form of solutions, emulsions, suspensions, produced with the use of ethyl alcohol from all types of raw materials, other alcohol-containing products;

1.8. tobacco articles;

1.9. motor spirits;

1.10. diesel fuel;

1.11. diesel fuel with methyl ethers of fatty acids;

1.12. marine fuel;

1.13. liquefied hydrocarbon gas and natural fuel compressed gas, upon use as motor fuel;

1.14. motor oils, including oils (liquids), intended for flushing (cleaning from deposits) of oil systems of internal combustion engines.

2. The following is not recognized to be excisable goods:

2.1. alcohol-containing solutions with denaturing additives, components changing organoleptic properties of ethyl alcohol, allowed to be used in the Republic of Belarus;

2.2. alcohol-containing medicines allowed for industrial production, realization and medical use in the territory of the Republic of Belarus under the procedure established by the legislation;

2.3. alcohol-containing medicines being fabricated in pharmacies according to individual indications (prescriptions) of a physician or orders (requests) of a health organization, including homoeopathic medicines;

2.4. alcohol-containing means and substances for veterinary use, allowed for production and/or use in the territory of the Republic of Belarus under the procedure established by the legislation;

2.5. alcohol-containing cosmetics;

2.6. by-products and alcohol-containing waste, originating in accordance with the technological process in the production in the territory of the Republic of Belarus of ethyl alcohol or alcohol products;

2.7. cognac and fruit spirit, wine stock, grain distillate.

For the purposes of this Chapter the following is recognized as:

cognac spirit – winemaking distillate with a content of ethyl alcohol by volume of 55 to 70 percent, obtained by distilling cognac wine stock, realized (transferred), imported in containers holding 200 liters and more, to be used as raw material for fabricating alcohol products or being realized (transferred) for use as raw material for fabricating alcohol products;

fruit spirit – winemaking distillate with a content  ethyl alcohol by volume of 52 to 86 percent, obtained by distilling (rectifying)  fermented fruit wine material, fermented fruit juice, fermented fruit marc, yeasty and sedimentary remains, fruit raw spirit, imported in containers holding 200 litres and more, to be used as raw material for fabricating alcohol products or being realized (transferred) to be used as raw material for fabricating alcohol products;

wine stock – winemaking products being imported in automobile and rail tank cars holding 1000 decalitres and more, to be used as raw material for fabricating alcohol products or for filling (bottling) in packings for retail sale after completion of established technological operations  or being realized (transferred) to be used as raw material for fabricating alcohol products or for filling (bottling) in packings for retail sale after completion of established technological operations;

grain distillate - distillate obtained by single or multiple distillation of fermented wort from cereal grains (rye, wheat, triticale) and/or malt prepared from it to a strength of not more than 94.8 percent, used or sold (transferred) as raw materials in the manufacture of alcohol products;

2.8. disinfectants;

2.9. household chemical products;

2.10. liquefied hydrocarbon gas and natural fuel compressed gas, upon importation thereof to the territory of the Republic of Belarus;

2.11. tobacco used as raw material for production of tobacco articles.

3. The Ministry of Health, the Belarusian State Concern for Oil and Chemistry, the Belarusian State Food Concern shall, within their competence, consider applications of the interested on issues of referring of certain goods to excisable goods and/or to goods not recognized as excisable and hand out respective conclusions and issue them corresponding conclusions.

Article 151. Exemption from excises upon realization (transfer) of excisable goods

1. The following is exempted from excises:

1.1. alcohol, upon realization (transfer) thereof for production of medicines, veterinary drugs to legal persons of the Republic of Belarus that are allowed to produce them;

1.2. excisable goods of own production being realized to the owner of a duty-free shop for their subsequent realization in duty-free shops or on board aircraft as supplies being exported from the customs territory of the Eurasian Economic Union: alcohol beverages, low-alcohol beverages with ethanol by volume of more than 1.2 percent and less than 7 percent, beer, beer cocktails, ciders, tobacco products;

Fur purposes of this sub-clause, goods of own production are deemed to be goods the date of shipment of which falls within the period of validity of the certificate of own production, issued to the payers under the procedure established by the legislation and stating that the goods belong to products of own production.

Provisions of this sub-clause do not cover the realization of goods to the owner of a duty-free shop under contracts of commission, agency, and other similar civil-law contracts;

1.3. excisable goods confiscated according to the court sentence (resolution) or converted into income of the state, including excisable goods placed under the customs procedure of rejection in favour of the state,  which are subject to realization (transfer), industrial processing, including disposal, upon realization (transfer) thereof;

1.4. excisable goods upon realization in duty-free shops, and also in duty-free shops for diplomatic missions and consular offices of foreign states, missions and bodies of international organizations and interstate formations;

1.5. upon realization (transfer), excisable goods placed under the customs procedure of export, re-export, and also exported (without the commitment to return importation in the territory of the Republic of Belarus) to the member states of the Eurasian Economic Union, subject to documentary confirmation of the actual exportation of excisable goods outside the territory of the Republic of Belarus.

This sub-clause does not cover realization (transfer) of excisable goods being exported outside the Republic of Belarus on product exchange (barter) operations (except for exportation of excisable goods to the member states of the Eurasian Economic Union).

2. The ground for application of exemption from excises of excisable goods specified in sub-clause 1.2 of clause 1 of this Article shall be the fact that the payer has the following documents:

2.1. contract of sale concluded by him with the owner of a duty-free shop, included into the register of owners of duty-free shops;

2.2. consignment note confirming his shipping of goods of own production to the owner of a duty-free shop;

2.3. copies of declarations for goods (copies of the external presentation of declarations for goods, if those declarations were submitted to the customs body in the form of an electronic document):

placed under the customs procedure of duty-free trade, the declarant of which is the owner of a duty-free shop – for goods of own production intended for realization in duty-free shops;

in accordance with which the goods being loaded aboard of the aircraft are released for use as supplies being exported from the customs territory of the Eurasian Economic Union, the declarant of which is the owner of the duty-free shop – for goods of their own production intended for realization on board aircraft as supplies being exported from the customs territory of the Eurasian Economic Union.

The mentioned copies of documents are certified by the signature of the head of the legal person being the owner of the duty-free shop or of a person authorized by him;

2.4. certificate of own production, issued under the procedure established by the legislation;

2.5. register of documents confirming the realization of goods of own production to the owners of duty-free shop, according to the established order, and be submitted by the payer to the tax body at the place of its putting on record simultaneously with the tax declaration (calculation) on excises.

Article 152. Order of documentary confirmation of the actual exportation outside the Republic of Belarus of excisable goods placed under the customs procedure of export, re-export

1. The confirmation of actual exportation of excisable goods outside the Republic of Belarus shall be the fact that the payer has the following documents, in aggregate:

1.1. a contract of the payer concluded with a non-resident of the Republic of Belarus on the basis of which realization (transfer) of excisable goods is carried out;

1.2. confirmation about the exportation of excisable goods outside the territory of the Republic of Belarus (when the payer declares goods to the customs bodies in a written form).

Such confirmation shall be issued by customs bodies in the form of:

either a copy certified by the personal numerical stamp of an official of the customs body of the declaration for the goods with notices of the customs body on release of excisable goods in accordance with the declared customs procedure of export, re-export with the notice of the customs body “Товар вывезен (Good has been exported)” and the date of issuance of the confirmation;

or a special register of exported excisable goods, certified by the personal numerical stamp of an official of the customs body, with the notice of the customs body “Good has been exported” and indication of the date of issuance of the confirmation.

Confirmation issued by the customs body shall be presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) for excises;

1.3. information on the confirmation of the actual exportation of excisable goods outside the territory of the Republic of Belarus (when the payer declares goods to the customs bodies in the form of electronic document).

Such information shall be submitted by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) for excises in the form of a register of electronic customs declarations for goods released in accordance with the customs procedure of export, re-export in the established form with indication of the date of permission for the departure of the goods from the customs territory of the Eurasian Economic Union.

2. Confirmation of actual exportation of excisable goods outside the Republic of Belarus through an organization or individual entrepreneur that render services on conclusion of contracts or that concluded, on behalf or under instructions of the payer, a contract with a foreign organization or natural person, including those that perform customs declaring of exported excisable goods (later on for the purposes of this Article – intermediary) shall be the fact that the payer has the following documents, in aggregate:

2.1. a contract with the intermediary;

2.2. a copy of the contract of the intermediary with a foreign organization or natural person on the basis of which excisable goods are being realized;

2.3. confirmation about the exportation of goods outside the territory of the Republic of Belarus (when the payer declares goods to the customs bodies in a written form).

Such confirmation shall be issued by the customs body and presented to the tax body by the payer in the order established by sub-clause 1.2 of clause 1 of this Article;

2.4. information on the confirmation of the exportation of goods outside the territory of the Republic of Belarus (when the payer declares goods to the customs bodies in the form of electronic document).

Such information shall be presented to the tax body by the payer in the order established by sub-clause 1.3 of clause 1 of this Article.

3. The confirmation of actual exportation of excisable goods produced from give-and-take raw materials outside the Republic of Belarus shall be the fact that the payer has the following documents, in aggregate:

3.1. a contract for producing excisable products from give-and-take raw materials;

3.2. a copy of the contract of the owner of give-and-take raw materials, concluded with a non-resident of the Republic of Belarus, for supply of the goods produced from these raw materials outside the Republic of Belarus;

3.3. confirmation about the exportation of goods outside the territory of the Republic of Belarus (when the payer declares goods to the customs bodies in a written form).

Such confirmation shall be issued by the customs body and presented to the tax body by the payer in the order established by sub-clause 1.2 of clause 1 of this Article;

3.4. information on the confirmation of the exportation of goods outside the territory of the Republic of Belarus (when the payer declares goods to the customs bodies in the form of electronic document).

Such information shall be presented to the tax body by the payer in the order established by sub-clause 1.3 of clause 1 of this Article.

4. The confirmation of actual exportation of excisable goods produced from give-and-take raw materials outside the Republic of Belarus and being realized by the owner through an intermediary shall be the fact that the payer has the following documents, in aggregate:

4.1. a contract for producing excisable products from give-and-take raw materials;

4.2. a copy of the contract of the owner of give-and-take raw materials with the intermediary;

4.3. a copy of the contract of the intermediary, concluded with a non-resident of the Republic of Belarus, for supply of the goods produced from raw materials outside the Republic of Belarus;

4.4. confirmation about the exportation of goods outside the territory of the Republic of Belarus (when the payer declares goods to the customs bodies in a written form).

Such confirmation shall be issued by the customs body and presented to the tax body by the payer in the order established by sub-clause 1.2 of clause 1 of this Article;

4.5. information on the confirmation of the exportation of goods outside the territory of the Republic of Belarus (when the payer declares goods to the customs bodies in the form of electronic document).

Such information shall be presented to the tax body by the payer in the order established by sub-clause 1.3 of clause 1 of this Article.

5. The confirmation of actual exportation of tobacco articles produced under contract-based production outside the Republic of Belarus shall be the fact that the payer has the following documents, in aggregate:

5.1. a contract on contract-based production of tobacco articles;

5.2. a copy of the contract of the organization – ordering customer of tobacco articles, concluded with the resident of the Republic of Belarus for supply of tobacco articles produced under contract-based production outside the Republic of Belarus;

5.3. confirmation about the exportation of goods outside the territory of the Republic of Belarus (when the payer declares goods to the customs bodies in a written form).

Such confirmation shall be issued by the customs body and presented to the tax body by the payer in the order established by sub-clause 1.2 of clause 1 of this Article;

5.4. information on the confirmation of the exportation of goods outside the territory of the Republic of Belarus (when the payer declares goods to the customs bodies in the form of electronic document).

Such information shall be presented to the tax body by the payer in the order established by sub-clause 1.3 of clause 1 of this Article.

6. In the presence of circumstances indicating the falsity of documents presented in accordance with clauses 1–5 of this Article, the confirmation about exportation of goods shall be issued upon requests of the tax body by the same customs body that has carried out the release of goods in accordance with the declared customs procedure.

7. Documentary confirmation of actual exportation of excisable goods (including those produced from give-and-take raw materials) outside the Republic of Belarus shall be performed within one hundred eighty days from the date of release of the goods in accordance with the declared customs procedure. When the date for presenting the tax declaration (calculation) for excises falls within that period, such volumes of realized (transferred) excisable goods are not indicated in the tax declaration (calculation) for excises.

Upon availability of the documents confirming the actual exportation of excisable goods outside the Republic of Belarus, such volumes of realized (transferred) excisable goods shall be indicated in the tax declaration (calculation) for excises of the reporting period the deadline for presentation of which follows the receipt of the respective documentary confirmation or of the reporting period in which the documents have been received.

In the absence of documents confirming the actual exportation of excisable goods outside the Republic of Belarus, till the presentation to the tax body of the tax declaration (calculation) for excises in the reporting period in which the established time limit expired, such volumes of realized (transferred) excisable goods shall be indicated in the tax declaration (calculation) for excises of the reporting period in which the established time limit expired.

Upon receipt of the documents confirming the actual exportation of excisable goods outside the Republic of Belarus on which calculated sums of excises are indicated in the tax declaration (calculation) after the expiry of one hundred eighty days from the date of release of the goods in accordance with the declared customs procedure, the payer submits a tax declaration (calculation) for excises with changes and/or additions introduced for the tax period in which one hundred eighty days from the date of release of the goods in accordance with the declared customs procedure have expired.

8. Upon realization (transfer) of tobacco articles, clauses 3 and 5 of this Article shall be applied provided that tobacco articles have been shipped outside the Republic of Belarus by the payers of excises.

Article 153. Order of documentary confirmation of actual exportation of goods to member states of the Eurasian Economic Union

1. The confirmation of actual exportation of excisable goods to member states of the Eurasian Economic Union shall be the fact that the payer has the following documents, in aggregate:

1.1. contract on the basis of which the realization of excisable goods is carried out;

1.2. transport (shipping) documents confirming the movement of goods from the territory of the Republic of Belarus to the territory of another member state of the Eurasian Economic Union, when goods are being moved through the system of main pipelines – acts of acceptance-delivery of goods;

1.3. declaration about importation of goods and payment of indirect taxes, drawn up according to the form approved by the treaty of the Republic of Belarus, with the notice of the tax body of the member state of the Eurasian Economic Union to the territory of which the goods are imported, about the payment of indirect taxes (exemption for the taxation or another order of fulfilling of tax obligations) (later on in this article – declaration about importation of goods) or the list of declarations about importation of goods and payment of indirect taxes according to the established form.

Declaration about importation of goods or the list of declarations about importation of goods and payment of indirect taxes shall be presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on excises.

2. The confirmation of actual exportation of excisable goods to member states of the Eurasian Economic Union on the basis of contracts of commission, agency and other similar civil-law contracts (later on – commitent) through organizations and/or natural persons (later on – commissioner) shall be the fact that the payer has the following documents, in aggregate:

2.1. contract of commission, agency or another similar contract;

2.2. transport (shipping) documents confirming the shipment of excisable goods to the commissioner and copies of transport (shipping) documents confirming the shipment of goods to the buyers;

2.3. declaration about importation of goods or the list of declarations about importation of goods and payment of indirect taxes (to be presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on excises).

3. The confirmation of actual exportation to member states of the Eurasian Economic Union of excisable goods produced from give-and-take raw materials shall be the fact that the payer has the following documents, in aggregate:

3.1. a contract for producing excisable products from give-and-take raw materials;

3.2. a copy of the contract of the owner of give-and-take raw materials concluded with the resident of a member state of the Eurasian Economic Union, for supply of excisable goods produced from these raw materials from the territory of the Republic of Belarus to the territory of the member states of the Eurasian Economic Union;

3.3. transport (shipping) documents or copies of transport (shipping) documents confirming the movement of excisable goods from the territory of the Republic of Belarus to the territory of another member state of the Eurasian Economic Union; and when excisable goods are being moved through the system of main pipelines – acts of acceptance-delivery of goods;

3.4. list of declarations about importation of goods and payment of indirect taxes or a copy of declaration about importation of goods (to be presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on excises).

4. The confirmation of actual exportation to member states of the Eurasian Economic Union of excisable goods produced from give-and-take raw materials and being realized by the owner through a commissioner shall be the fact that the payer has the following documents, in aggregate:

4.1. a contract for producing excisable products from give-and-take raw materials;

4.2. a copy of the contract of the owner of give-and-take raw materials with the commissioner;

4.3. a copy of the contract of the commissioner, concluded with the resident of a member state of the Eurasian Economic Union, for supply of excisable goods produced from these raw materials from the territory of the Republic of Belarus to the territory of the member states of the Eurasian Economic Union;

4.4. transport (shipping) documents (copies thereof) confirming the movement of excisable goods from the territory of the Republic of Belarus to the territory of another member state of the Eurasian Economic Union; and when goods are being moved through the system of main pipelines – acts of acceptance-delivery of goods;

4.5. list of declarations about importation of goods or the list of declarations about importation of goods and payment of indirect taxes (to be presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on excises).

5. The confirmation of actual exportation to member states of the Eurasian Economic Union of tobacco articles produced under contract-based production shall be the fact that the payer has the following documents, in aggregate:

5.1. a contract on contract-based production of tobacco articles;

5.2. a copy of the contract of the organization – ordering customer of tobacco articles concluded with the resident of a member state of the Eurasian Economic Union, for supply of tobacco articles produced under contract-based production from the territory of the Republic of Belarus to the territory of the member states of the Eurasian Economic Union;

5.3. transport (shipping) documents confirming the movement of tobacco articles from the territory of the Republic of Belarus to the territory of another member state of the Eurasian Economic Union;

5.4. list of declarations about importation of goods and payment of indirect taxes or declaration about importation (to be presented by the payer to the tax body at the place of putting on record simultaneously with the tax declaration (calculation) on excises).

6. Upon shipment (transfer) of tobacco articles, provisions of clauses 3 and 5 of this Article shall be applied provided that tobacco articles have been shipped (transferred) outside the Republic of Belarus by the payers of excises.

7. Documentary confirmation of actual exportation of excisable goods from the territory of the Republic of Belarus to the territory of the member states of the Eurasian Economic Union in accordance with this Article shall be performed within one hundred eighty calendar days from the date of shipment (transfer) of excisable goods, including those produced from give-and-take raw materials, and also under contract-based production of tobacco articles. Indication in the tax declaration (calculation) for excises of volumes of realized (transferred) excisable goods shall be performed with regard to the mentioned time limit in the order determined by of clause 7 of Article 152 of this Code.

Article 154. Exemption from excises upon importation of excisable goods into the territory of the Republic of Belarus

The following is exempted from excises upon importation into the territory of the Republic of Belarus:

excisable goods specified in sub-clauses 1.9 – 1.12 of clause 1 of Article 150 of this Code imported from the territory of the member states of the Eurasian Economic Union, filling with which of the tank and/or other containers of a vehicle is made outside the Republic of Belarus in volumes stipulated by the manufacturer of the vehicle;

excisable goods being moved in transit, imported from the territory of the member states of the Eurasian Economic Union;

excisable goods subject to be turned over into income of the state in accordance with the legislation;

excisable goods imported from the territory of the members states of the Eurasian Economic Union, intended for the official use by diplomatic missions and consular offices of foreign states, by missions and bodies of international organizations and interstate formations,  or for personal use of diplomatic and/or administrative and technical staff of these missions, offices and bodies, including members of their families living with them (unless they are citizens of the Republic of Belarus), diplomatic mail and consular bag;

other excisable goods under the procedure and conditions determined by the President of the Republic of Belarus.

Article 155. Excise rates

1. Unified excises rates are in effect in the Republic of Belarus both for excisable goods produced in the territory of the Republic of Belarus, and for excisable goods being imported into the territory of the Republic of Belarus and/or realized (transferred) in the territory of the Republic of Belarus.

2. Excises rates may be established:

in a specific sum per a physical measure unit in which results of measurements of excisable goods are expressed (firm (specific) rates);

in percentage points of the value of excisable goods or of the customs value of excisable goods increased by payable sums of customs duties (percentage (ad valorem) rates).

3. Excise rates on excisable goods are established according to Annex 1.

4. Concerning alcohol, alcohol-containing products and diesel fuel, excises rates are differentiated depending on the purposes of their further use .

Article 156. Specific features of application of excise rates on filter-tipped cigarettes and procedure for notification by the payer about maximum retail prices for filter-tipped cigarettes and compliance thereof with price groups

1. Excise rates on filter-tipped cigarettes are applied on the basis of maximum retail prices for one pack, declared by the payer, on each brand (each denomination) of filter-tipped cigarettes and correspondence thereof to three price groups determined by sub-clause 9.5 of clause 9 of Annex 1 (later on in this Chapter – price groups).

Maximum retail prices for one pack on each brand (each denomination) of filter-tipped cigarettes and correspondence of these prices to one of three price groups, and also the date of beginning of application thereof, are declared by the payer in a notification of maximum retail price of filter-tipped cigarettes (later on – notification) according to the established form.

For purposes of this Chapter the brand (denomination) of filter-tipped cigarettes means a product line position of the said cigarettes differing from other brands (denominations) by one or several following properties: individual designation (name) attributed by the manufacturer or licensee, mixture, dimensions, package.

2. For the purposes of application excise rates in relation to filter-tipped cigarettes imported into the territory of the Republic of Belarus and/or produced in the territory of the Republic of Belarus, the payer is obliged to submit the notification to the tax body at the place of putting on record not later than ten calendar days before the beginning of the calendar month starting from which the maximum retail prices indicated in the notification will be applied. Notification shall be submitted in electronic form.

Maximum retail prices, declared by the payer in the notification, for one pack on each brand (each denomination) of filter-tipped cigarettes of one of three price groups are applied from the first day of the calendar month following the day of submission of the notification and are effective for not less than a calendar month.

Upon change of the maximum retail price for one pack of cigarettes and/or its conformity to one of three price groups, both for all brands (denominations) and for one or several brands (denominations) of filter-tipped cigarettes, the payer is obliged to submit a new notification under the procedure established by part one of this clause. Maximum retail prices and their conformity to one of three price groups indicated in the notification are applied from the first day of the calendar month following the day of submission of that notification, but not earlier than the expiry of the minimum time limit of effect of maximum retail prices, established by part two of this clause.

A new notification shall not be submitted appear upon change of the compliance of the maximum retail price per a pack of cigarettes to one of the three price groups, production and/or importation of which is not carried out.

3. The tax body at the place of putting on record of the payer forwards the data about maximum retail prices for one pack on each brand (each denomination) of filter-tipped cigarettes and correspondence thereof to one of three price groups to the Ministry on Taxes and Dues within one working day after the payer submits the notification.

The Ministry on Taxes and Dues shall, not later than within three working days after receipt of the notification by the tax body at the place of putting on record of the payer:

inform the State Customs Committee about maximum retail prices, declared by the payer, for one pack on each brand (each denomination) of filter-tipped cigarettes imported into the territory of the Republic of Belarus and correspondence of these prices to one of three price groups, and also about the date of application of these prices;

place the information about maximum retail prices, declared by the payer, for one pack on each brand (each denomination) of filter-tipped cigarettes and correspondence of those prices to one of three price groups, and also about the date of application thereof, on the official site of the Ministry on Taxes and Dues in the network Internet.

Information about maximum retail prices, declared by the payer, for one pack on each brand (each denomination) of filter-tipped cigarettes and correspondence of those prices to one of three price groups shall be on the official site of the Ministry on Taxes and Dues in the network Internet during three years upon expiration of the year in which they are declared or changed.

4. Computation and payment of excises collected by customs bodies in relation to filter-tipped cigarettes are carried out on the basis of maximum retail prices for one pack on each brand (each denomination) of filter-tipped cigarettes and correspondence of these prices to one of three price groups, declared by the payer in the notification the information about which is submitted by the Ministry on Taxes and Dues to the State Customs Committee in accordance with indent two of part two of clause 3 of this Article.

For the purposes of computation of excises collected by customs bodies in relation to filter-tipped cigarettes are applied the excise rates depending on the maximum retail price for one pack established by the payer on this brand (this denomination) of filter-tipped cigarettes on the day of registration by the customs body (upon importation of goods from the states not being members of the Eurasian Economic Union) on the day of sending to the tax body of the notification about the arrival of goods subject to be marked by excise stamps of the Republic of Belarus (upon importation of goods from the member states of the Eurasian Economic Union) and correspondence of this price of one of the price groups.

5. Excises rates on filter-tipped cigarettes shall be applied according to the highest (third) price group in the following cases:

when the payer does not submit the notification in accordance with clause 2 of this Article;

in case of absence in the customs bodies of the information of the Ministry on Taxes and Dues to be submitted in accordance with indent two of part two of clause 3 of this Article about maximum retail price both for all brands (denominations) of filter-tipped cigarettes and for one or several brands (denominations) of filter-tipped cigarettes.

6. Organizations and individual entrepreneurs, when carrying out retail trade of filter-tipped cigarettes, realize such cigarettes at prices not exceeding those declared by payers in the notification.

Article 157. Specific features of application of excises rates for alcohols, alcohol-containing products and diesel fuel when they are used (realized, transferred) not in accordance with the intended purpose

1. The sum of excises shall be computed and paid by the recipient of alcohol - a legal person of the Republic of Belarus at the rate established by sub-clause 1.1 of clause 1 of Annex 1, upon use (realization, transfer) not in accordance with the intended purpose of:

raw ethanol from edible raw materials, acquired (received)  for production of rectified ethanol;

ethyl rectified, from edible raw materials, acquired (received) for production of alcoholic products, vinegar and low-alcohol beverages;

alcohol acquired (received) for the production of medicines, veterinary drugs.

2. The sum of excises shall be computed and paid by the recipient of alcohol-containing products – legal person of the Republic of Belarus at the rate established by sub-clause 8.1 of clause 8 of Annex 1, upon use (realization, transfer) not in accordance with the intended purpose of alcohol-containing products with a volume fraction of ethyl alcohol of 7 percent and more acquired (received) for the production of alcohol-free beverages.

3. The sum of excises shall be computed and paid by the recipient of diesel fuel – organization or individual entrepreneur at the rates established by sub-clause 11.1 of clause 11 of Annex 1, upon use (realization, transfer) not in accordance with the intended purpose of the diesel fuel acquired (received) for production of diesel fuel with fatty acid methyl esters.

Article 158. Tax period of excises

The tax period for excises is recognized a calendar month.

Article 159. Tax deductions

1. The total sum of excises determined in accordance with clause 2 of Article 160 of this Code id decreased by tax deductions established by this Article.

2. Tax deductions are recognized to be the sums of excises:

2.1. paid upon acquisition in the territory of the Republic of Belarus (importation into the territory of the Republic of Belarus) of excisable goods used for productions of other excisable goods;

2.2. paid upon importation into the territory of the Republic of Belarus of excisable goods in relation to which percentage (ad valorem) rates of excises are established, upon subsequent realization of such excisable goods in the territory of the Republic of Belarus. Deduction of the mentioned sums of excises is performed within the sums of excises calculated upon realization of these excisable goods in the territory of the Republic of Belarus.

Upon realization (transfer) of several kinds of excisable goods in relation to which percentage (ad valorem) rates of excises are established, the sums of excises subject to be deducted are determined separately on each kind of realized (transferred) excisable good.

3. For purpose of this Chapter, the sum of excises paid upon:

3.1. upon importation into the territory of the Republic of Belarus shall be recognized the sum of excises collected upon importation of excisable goods into the territory of the Republic of Belarus;

3.2. acquisition of excisable goods shall be recognized:

a sum of excises presented (indicated) by the seller or by the owner of give-and-take raw materials in primary accounting documents in accordance with Article 160 of this Code;

a sum of excises computed by the payer when using excisable goods for own needs;

a sum of excises computed by the processing person (payer) and received by the owner of give-and-take raw materials when receiving excisable goods produced from give-and-take raw materials.

4. The sum of excises is subject to deduction regardless of the date of settlement upon acquisition (receipt), importation of excisable goods after they are reflected in accounting and use of acquired (received), imported excisable goods for the production and realization (transfer) of other excisable goods.

Acceptance of sums of excises for deduction shall be effectuated by the payer in the tax period in which the acquired (received) imported excisable goods are used for the production of other excisable goods and the actual realization (transfer) of the produced excisable goods is carried out.

5. Sums of excises on excisable goods used in production of other excisable goods are determined proportionally to:

value of excisable goods used as raw materials (without excises), included into costs on production and realization of excisable goods and the value (without excises) of the total volume of excisable goods used as raw materials, available in this period;

volume of excisable goods used as raw materials, for which firm (specific) rates of excises are established, the value of which included into costs on production and realization of excisable goods in the reporting month and the total volume of excisable goods used as raw materials, for which firm (specific) rates of excises are established, accepted in production.

volume of shipped (transferred) excisable goods produced from give-and-take raw materials and the total volume of excisable goods produced from give-and-take raw materials shipped (transferred) by their owner for production of excisable goods. The ground for carrying out the deduction for the payer is the fact that the latter has primary accounting documents specified in part one of clause 9 of Article 160 of this Code, with indication by the owner of give-and-take raw materials of respective sums of excises.

In the case of the use by the payer of excisable goods in the tax period for the production of both excisable and non-excisable goods acquired (received) in the territory of the Republic of Belarus (imported into the Republic of Belarus), the procedure for determining the sum of deductions relating to excisable goods used for the production of excisable goods, used during the calendar year, shall be approved by the accounting policy of the organization, decision of the individual entrepreneur.

6. Sums of excises paid upon acquisition (receipt), importation into the territory of the Republic of Belarus of excisable goods are not subject to deduction (return) when they are:

6.1. included into costs on production and realization (transfer) of goods (works, services), property rights or assigned on increasing the value of acquired (received, imported) excisable goods having regard to provisions of clause 8 of this Article:

6.2. paid on excisable goods transferred by a participant of the contract of simple partnership as a contribution to the common cause, and also paid by the participant of the contract of simple partnership, carrying out the conduct of common affairs, also when dividing excisable goods being in the common ownership of participants of the simple partnership;

6.3. not indicated in primary accounting documents in accordance with Article 160 of this Code.

6.4. paid for excisable goods intended for use in the production of other excisable goods, in the event of their irrevocable loss in the process of production, storage, movement and/or subsequent technological processing.

7. When the procedure of application of tax deductions has been changed, a new procedure of deductions is effective in respect of excisable goods:

imported, from the day of changing the application of tax deductions. The date of importation is determined according to the date of release of excisable goods in accordance with the declared customs procedure;

acquired in the member states of the Eurasian Economic Union, from the day of changing the application of tax deductions. The date of acquisition is determined according to the date of acceptance of excisable goods for accounting;

recorded as received from the day of changing the application of tax deductions.

8. The payer is entitled to independently allocate for deduction the sums of excises previously attributed by him to the increase in the value of purchased (received, imported) excisable goods, if a decision is made to use th0se excisable goods for the production of other excisable goods.

Article 160. Procedure for calculating excises upon realization (transfer) of excisable goods. Sum of excises payable to the budget. Sum of excises presented for payment by the payer to the buyer of goods

1. Sum of excises shall be computed as the product of the tax base and the excises rate.

2. The total sum of excises established according to results of a tax period on all operations on realization (transfer) of excisable goods shall be determined through addition of sums calculated in accordance with clause 1 of this Article for each kind of excisable goods.

3. Sum of excises payable by the payer to the budget is determined as the difference between the total sum of excises calculated according to results of a tax period and the sum of tax deductions established by Article 159 of this Code and falling on this tax period.

If the sum of tax deductions in a tax period exceeds the sum of excises computed on realized (transferred) excisable goods, the payer does not pay the excises in that tax period, and the difference between the sum of tax deductions and the total sum of excises computed according to results of the tax period is subject to be included in non-realization expenses or to be returned to the payer in the order established by this Chapter. In that instance the return of the difference between the sum of tax deductions and the total sum of excises computed according to results of the tax period shall be made without charging the penalty interest.

4. Exemptions from excises taxation, zero rates or other rates of excises, exclusions from the list of excisable goods are applied on excisable goods shipped (transferred) from the day of establishing these exemptions, zero rates or other rates of excises, exclusions.

Upon change of the procedure for calculating excises (change of the composition of payers, taxation objects, tax base, moment of actual realization, rates, procedure for applying exemption from excises), inclusion of goods into the list of excisable goods, a new procedure for calculating is applied on excisable goods shipped (transferred) from the moment of changing the procedure for calculating excises, inclusion of goods into the list of excisable goods.

5. The payer is obliged to present for payment to the buyer of excisable goods (owner of give-and-take raw materials) a respective sum of excises. The respective sum of excises shall be indicated in primary accounting documents as a separate entry.

6. Upon realization (transfer) of excisable goods which, in accordance with this Chapter, are exempt from excises taxation, primary accounting documents are drawn up without singling out sums of excises and a notice or a stamp "Without excises” is made in these documents.

Upon realization (transfer) of excisable goods which, in accordance with part two of sub-clause 1.3 of clause 1 of Article 147 of this Code, are not recognized excises taxation objects, the payer shall indicate sums of excises paid by him upon importation of these excisable goods in primary accounting documents.

7. Upon realization (transfer) of excisable goods at retail prices, sums of excises is included in the prices of excisable goods. In that instance sums of excises are not indicated on labels of excisable goods and price tickets, put by the sellers, and also in receipts and other documents to be handed to the buyer.

8. Correction of a sum of excises that has been wrongly indicated (including failure to indicate a sum of excises or to make a notice or to put a stamp "Without excises”) in primary accounting documents is carried out on the basis of a settlement checking act between the seller (supplier) and the buyer (recipient) of excisable goods.

9. Upon transfer of excisable goods as give-and-take raw materials for production of excisable goods to the processing person (payer), the owner of give-and-take materials indicates in primary accounting documents sums of excises paid (reimbursed) by the owner upon acquisition (receipt, importation) of raw-and-take raw materials.

The sum of excises computed by the payer that produces excisable goods from give-and-take raw materials is not included in the price (tariff) of works on production of excisable goods from give-and-take raw materials and shall be presented to the owner of give-and-take raw materials in documents upon transfer of excisable goods for realization of the right of the owner of give-and-take raw materials for deduction in the event of using received excisable goods for production of other excisable goods.

Sum of excises being determined as a positive difference between the sum of excises computed by the payer upon shipment (transfer) of excisable goods produced from give-and-take raw materials in the territory of the Republic of Belarus, and the sum of excises subject to deduction in accordance with clause 2 of Article 159 of this Code, shall be presented by the payer to the owner of give-and-take raw materials in the primary accounting documents for reimbursement.

Sum of excises being determined as a negative difference between the sum of excises computed by the payer upon shipment (transfer) of excisable goods produced from give-and-take raw materials in the territory of the Republic of Belarus, and the sum of excises subject to deduction in accordance with clause 2 of Article 159 of this Code, shall be presented by the payer to the owner of give-and-take raw materials in the primary accounting documents for inclusion by the owner of give-and-take raw materials in non-realization expenses.

10. Upon transfer of excisable goods between affiliates for production of excisable goods, sums of excises paid upon acquisition (transfer) of excisable goods being transferred shall be indicated in primary accounting documents, and in the event when excisable goods of own production are being transferred – sums of excises computed upon such a transfer. A similar procedure shall be applied upon transfer of excisable goods as contribution of a participant of the contract of simple partnership to the common cause, and also upon division of excisable goods which were in the common ownership of participants of the contract of simple partnership.

11. Upon transfer by the commissioner (agent) of excisable goods acquired (imported) for commitents (principals), sums of excises paid upon acquisition (importation) of those excisable goods shall be indicated in primary accounting documents.

Upon transfer by the commissioner (agent) of excisable goods received upon acquisition of works on production of goods from give-and-take raw materials, the primary accounting documents shall specify sums of excises presented by the producer of excisable goods from  give-and-take raw materials and subject to reimbursement by the commissioner (agent).

Upon transfer of excisable goods by commitents (principals) to commissioners (agents) for realization thereof, sums of excises paid upon importation of those excisable goods or computed upon production of excisable goods shall be indicated in primary accounting documents.

The commissioner (principal) indicates, upon realization of excisable goods received from the commitent (principal), sums of excises in primary accounting documents for the buyers in the amount not exceeding the sums of excises indicated by the commitment (principal) in accordance with part three of this clause.

12. Sum of excises excessively presented in primary accounting documents by the seller to buyers of excisable goods (to the owner of goods produced from give-and-take raw materials) is subject to be computed and paid to the budget by this seller, with the exception of correction of the excessively presented sum of excises on the basis of settlement checking acts signed by the seller and the buyer (the owner of goods produced from give-and-take raw materials). In the instance of singling out of excises in primary accounting documents in the sum less than it is established by this Chapter, calculation and payment of excises is performed by the payer at the established rates of excises for such excisable goods.

Payers of excises that acquired (received) excisable goods  on which the buyer indicated a incorrect or excessive sum of excises accept for deduction in accordance with clause 2 of Article 159 of this Code the sum of excises singled out by the buyer in primary accounting documents, with the exception of correction of the mentioned sums of excises on the basis of settlement checking acts signed by the seller and the buyer.

Payers of excises which singled out incorrectly sums of excises in primary accounting documents in relation to providing a reverse effect to normative legal acts, and also payers of excises which acquired (received) those excisable goods from the former shall, accordingly, compute and pay to the budget, accept for deduction in accordance with clause 2 of Article 159 of this Code the sum of excises singled out by the buyer in primary accounting documents, with the exception of correction of the mentioned sums of excises on the basis of settlement checking acts signed by the seller and the buyer.

Correction by the seller of the calculated sum of excises, and by the buyer of sums of tax deductions, is performed in the month in which the seller incorrectly indicated or excessively presented a sum of excises, and the buyer accepted this sum of excises for deduction.

This clause also cover:

commissioners (agents) that acquire (receive) excisable goods (works on production of excisable goods from give-and-take raw materials) on the basis of contracts of commission, agency, and other similar civil-law contracts and present the sums of excises for reimbursement to commitents (principals), and also realize excisable goods;

commitents (principals) which transferred excisable goods to commissioners (agents) for realization;

payers for which realization (transfer) of excisable goods is exempted from excises;

organizations and individual entrepreneurs not being payers of excises;

owners of give-and-take raw materials in relation to excessively presented excises in primary accounting documents drawn up upon transfer of the said raw materials to the payer that produces excisable goods from give-and-take raw materials;

owners of give-and-take raw materials in relation to excessively presented excises in primary accounting documents being drawn up upon receipt from the processing person (payer) of the excisable good produced from the mentioned raw materials;

payers that produce excisable goods from give-and-take raw materials;

affiliates of organizations in relation to excessively indicated sums of excises in primary accounting documents being drawn up upon transfer of excisable goods between those affiliates;

participants of the contract of simple partnership, which transfer excisable goods as contribution to the common cause, and also the participant of the contract of simple partnership, carrying out the conduct of common affairs, when dividing excisable goods being in the common ownership of participants, in relation to the sums of excises excessively indicated in primary accounting and/or settlement documents drawn up upon transfer of excisable goods as contribution to the common cause, performance of divisions of excisable goods.

13. In the event of return of excisable goods for which excise are computed and paid, the sums of excises paid on those goods shall be excluded from the sums payable to the budget for the tax period in which the excisable goods were returned.

Article 161. Sum of excises subject to deduction in full volume (return)

1. Sums of excises paid upon acquisition (receipt), importation into the territory of the Republic of Belarus of excisable goods used in production of other excisable goods exported outside the territory of the Republic of Belarus are subject to be deducted (returned) in full volume. Deduction of such excises sums shall be carried out for persons being payers of excises if the payer (if submitted by the payer to the tax body at the place of putting on record in the established cases) has the documents provided for in clauses1 and 2 of Article 152 and clauses 1 and 2 of Article 153 of this Code .

In that instance the sums of excises paid on excisable goods used as raw materials, the value of which is actually assigned (written off) in the reporting period to the prime costs of exported excisable goods, are subject to deduction in full volume.

2. Sums of excises paid upon acquisition (receipt), importation into the territory of the Republic of Belarus of excisable goods used as give-and-take raw materials in production of other excisable goods exported outside the territory of the Republic of Belarus are subject to deduction (return) in full volume. Deduction of such excises sums shall be carried out for persons being payers of excises, producing excisable goods from give-and-take raw materials, if the payer (if submitted by the payer to the tax body at the place of putting on record in the established cases) has the documents provided for in clauses 3 and 4 of Article 152 and clauses 3 and 4 of Article 153 of this Code .

In that instance, sums of excises presented by holder (owners) of excisable goods in accordance with clause 9 of Article 160 of this Code are subject to deduction (return) in full volume. Such excises sums are subject to transfer (setoff) to the holder (owners) of the specified raw materials for reimbursement of their expenses on payment (reimbursement) of excises sums upon acquisition (receipt), importation of excisable goods to the territory of the Republic of Belarus.

3. Return of the difference between the sum of tax deductions subject ot deduction in full volume and  the total sum of excises computed according to results of the tax period, specified by the payer in the tax declaration (calculation) on excises,  shall be carried out by by the tax body at the place of putting the payer on record in the order established by Article 66 of this Code.

Article 162. Procedure for calculating excises collected by customs bodies. Sum of excises payable to the budget and time limit for its payment

1. Sum of excises payable to the budget, collected by the customs bodies upon importation of excisable goods into the territory of the Republic of Belarus, payable to the budget, shall be computed as the product of the tax base and the rate of excises.

2. The customs legislation, depending on the customs procedure, establishes the specific features of computing the sums of excises payable to the budget and collected by customs bodies upon importation of excisable goods into the territory of the Republic of Belarus, with the exception of the importation of excisable goods subject to marking with excise stamps of the Republic of Belarus from the territory of member states of the Eurasian Economic Union.

3. Upon importation from the territory of the member states of the Eurasian Economic Union of excisable goods subject to be marked by excise stamps of the Republic of Belarus, the excises shall be computed by the payer of excises himself with application of the document “Calculation of excises subject to be paid”, the form and the procedure for completion of which is determined by the State Customs Committee (with the exception of the instance of adoption by the customs body of a decision on recovery of excises, under which the calculation of excises subject to be paid is performed by the customs body).

Calculation of sums of excises subject to be paid is performed in Belarusian rubles.

In the instances when for calculation of excises, and also for determining the customs value of goods, it is necessary to perform recalculation of the foreign currency in Belarusian rubles, the official rate of the National Bank established on the day specified in parts two and three of clause 4 of this Article is applied.

4. Upon importation into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union of excisable goods subject to be marked by excise stamps of the Republic of Belarus, which are marked by excise stamps of the Republic of Belarus, the duty on payment of excises:

arises for the person that acquired excise stamps of the Republic of Belarus for marking goods being imported, which are subject to be marked by excise stamps of the Republic of Belarus, from the moment of importation of such goods into the territory of the Republic of Belarus;

terminates in the instances established by clause 2 of Article 54 of the Customs Code of the Eurasian Economic Union;

is to be executed prior to or simultaneously with notification to the customs body that issued the excise stamps of the Republic of Belarus of the arrival of goods subject to be marked by excise stamps of the Republic of Belarus and of the place of location thereof for performance of the control over the observance of rules of marking, established by the legislation.

For calculation of excises, the legislative acts are applied, which regulate the issues of taxation and effective on the day of sending to the customs body of the notification of the arrival of goods subject to be marked by excise stamps of the Republic of Belarus.

In the event of failure to notify the customs body that issued the excise stamps of the arrival of goods subject to be marked by excise stamps of the Republic of Belarus, imported from the territory of the member states of the Eurasian Economic Union, use and/or disposal thereof prior to performance of the control over observance of rules of marking and other requirements established by the legislation by the customs bodies, the duty on payment of excises is to be executed on the day of using the goods or of disposing thereof, and if this day is not established – on the day of detection of facts of using and/or of disposing of such goods in the amounts corresponding to the sums of excises that were to be paid upon placement of such goods under the customs procedure for internal consumption, calculated on the day of using and/or disposing thereof, and if this day is not established – on the day of detection of facts of using and/or disposing of such goods.

5. Upon importation into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union of excisable goods subject to be marked by excise stamps of the Republic of Belarus, without excise stamps of the Republic of Belarus, arising, termination and time limit for executions of the duty on payment of excises are determined under the procedure established by Article 56 of the Customs Code of the Eurasian Economic Union.

Article 163. Time limits for submission of tax declaration (calculations) and payment of excises

1. Payers submit monthly the tax declaration (calculation) to the tax bodies not later than on 20th day of the month following the expired tax period.

2. The payment of excises is performed not later than on the 22th day of the month following the expired tax period.

3. Procedure and time limits for payment of excises collected by the customs bodies upon importation of excisable goods into the territory of the Republic of Belarus, with the exception of importation from the territory of the member states of the Eurasian Economic Union of excisable goods subject to be marked by excise stamps of the Republic of Belarus are determined by the customs legislation.

4. Upon importation into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union of excisable goods subject to be marked by excise stamps of the Republic of Belarus, excises are paid into accounts on accounting means of the republican budget open in accordance with the legislation for the customs bodies authorized by the State Customs Committee for realization of excise stamps within the time limits established by indent four of part one of clause 4 of Article 162 of this Code.

Calculation of excises subject to be paid, and also documents confirming the fact of payment of excises are submitted to the customs body simultaneously with notification of the customs body of the arrival of goods subject to be marked by excise stamps of the Republic of Belarus.

Article 164. Inclusion of sums of excises into costs on production and realization of goods (works, services), property rights or assignment thereof on increasing the value of excisable goods

1. Sum of excises paid upon acquisition (importation into the territory of the Republic of Belarus) of excisable goods used in the territory of the Republic of Belarus in production and/or realization of products, goods (performance of works, rendering of services) is included into costs on production and realization of goods (works, services), property rights or assigned on the increase of the value of said excisable goods, with the exception of sums of excises paid:

1.1. in the territory of the Republic of Belarus upon acquisition (receipt) of excisable goods (importation into the territory of the Republic of Belarus of excisable goods) used in production of other excisable goods;

1.2. upon importation into the territory of the Republic of Belarus of excisable goods in relation to which percentage (ad valorem) rates of excises are established – in the instance of subsequent realization thereof in the territory of the Republic of Belarus.

2. The sum of excises paid by the owner of give-and-take raw materials upon acquisition (importation into the territory of the Republic of Belarus) of excisable goods used in production of non-excisable goods shall be included by the owner of give-and-take raw materials into costs on production and realization of these non-excisable goods, or assigned on increase of the value of the mentioned excisable goods.

Sum of excises presented by the processing person (payer) to the owner of give-and-take raw materials shall be included by the owner of give-and-take raw materials into costs on production and realization of excisable goods produced from the mentioned raw materials, with the exception of instances of use (transfer) of such excisable goods by the owner of give-and-take raw materials for further production of other excisable goods or be on increase of the value of the mentioned excisable goods.

3. Calculation of the sum of excises subject to be included into costs on production and realization of goods (works, services), property rights shall be made by the specific weight method or by the method of separate accounting of directions for using of excisable goods.

Under the specific weight method, inclusion of sums of excises into costs on production and realization of goods (works, services), property rights shall be made proportionally to the value of excisable goods used in production of goods (when percentage (ad valorem) rate of excises is established) or to the volume of excisable goods (firm (specific) rate of excises is established), used in production of goods.

Under the method of separate accounting of directions for using of excisable goods, the sum of excises actually paid upon acquisition (importation into the territory of the Republic of Belarus) of excisable goods used in production of goods is included into costs on production and realization of goods (works, services), property rights.

The method of calculation of sums of excises applied in the course of a calendar year is approved by the accounting policy of the organization, decision of the individual entrepreneur. When the accounting policy of the organization (decision of the individual entrepreneur) does not contain indication concerning the applicable method of calculation of sums of excises, inclusion of sums of excises into costs on production and realization of goods (works, services), property rights shall be performed by the specific weight method.

4. The payer has the right to include sums of excises paid upon acquisition (importation into the territory of the Republic of Belarus) of excisable goods used in production of other excisable goods into costs on production and realization of produced excisable goods or assign on increase of the value of the mentioned excisable goods.

Upon assigning the sums of excises paid upon acquisition (importation into the territory of the Republic of Belarus) of excisable goods on increase of the value of the mentioned excisable goods, such sums do not participate in distribution of sums of excises in the order provided for by clause 3 of this Article.

Article 165. Specific features of collecting excises upon importation of excisable goods into the territory of the Republic of Belarus

1. Upon importation of excisable goods into the territory of the Republic of Belarus, with the exception of importation from the territory of the member states of the Eurasian Economic Union, and occurrence of other circumstances with the presence of which the customs legislation connects the arising of the duty for payment of excises, and also upon importation from the territory of the member states of the Eurasian Economic Union of excisable goods subject to be marked by excise stamps of the Republic of Belarus, the collection of excises is carried out by the customs bodies in accordance with this Code and/or the customs legislation.

2. Upon importation of excisable goods into the territory of the Republic of Belarus from the territory of the member states of the Eurasian Economic Union with the exception of excisable goods subject to be marked by excise stamps of the Republic of Belarus, the collection of excises is carried out by the tax bodies in accordance with this Code and other acts of the customs legislation, treaties of the Republic of Belarus, including acts constituting the law of the Eurasian Economic Union.

CHAPTER 16
TAX ON PROFIT

Article 166. Payers of tax on profit

As payers of the tax on profit (later on in this Chapter – payers) are recognized organizations.

Article 167. Object of taxation with the tax on profit

1. As taxation object for the tax on profit are recognized gross profit and also dividends and incomes equated to them (later on in this Chapter – dividends), posted by Belarusian organizations.

The incomes equated to dividends include any income posted by a unitary enterprise to the owner of its property – legal person of the Republic of Belarus.

2. For the purposes of this Chapter, the gross profit is recognized to be:

for Belarusian organizations (with the exception of banks), the sum of profit from realization of goods (works, services), property rights and non-realization incomes, decrease by the sum of non-realization incomes;

for banks, the sum of profit from activities of the banks carried out in accordance with the legislation, having regard to provisions of this Chapter;

for foreign organizations carrying out activity in the Republic of Belarus through a permanent representation, the sum of profit of a foreign organization obtained through a permanent representation in the territory of the Republic of Belarus from realization of goods (works, services), property rights and non-realization incomes, decreased by the sum of non-realization incomes.

Gross profit shall be determined with account of correction performed in accordance with provisions of Chapter 11 of this Code.

3. When the gross profit is determined by affiliates fulfilling the tax obligations of the legal person, the sum of profit from realization of goods (works, services), property rights and non-realization incomes shall be taken into account decreased by the sum of non-realization expenses, from activities of mentioned affiliates.

4. Gross profit of a Belarusian organization is calculated with account of the profit (loss) from realization of goods (works, services), property rights and non-realization incomes, decreased by the sum of non-realization incomes, from activity outside the Republic of Belarus, including from the activity concerning which it is registered as the payer of taxes of the foreign state.

5. Payers that use, in accordance with this Code, special regimes of taxation do not account incomes and expenses, relating to such regimes, while determining gross profit.

Upon switching from a special taxation regime to the common taxation regime for determining the gross profit, costs taken into account for the taxation incurred within the period of application of the special taxation regime but related to the revenue received in the period of application of the common taxation regime shall be taken into account.

6. When determining the gross profit, monetary means or property received by an organization from participants (shareholders) as contributions to its statutory fund in the amounts provided by the statute (constituent contract for a commercial organization which operates only on the basis of the constituent contract) are not taken into account.

7. A positive difference between the assessed value of the property being transferred by the payer as a non-monetary contribution to the statutory fund of another payer and the balance-sheet value (the residual value – for fixed assets, intangible assets, income-bearing investments in material assets) of that property shall be taken into account when gross profit of the payer that transfers that property is being determined.

A negative difference between the assessed value of the property being transferred by the payer as a non-monetary contribution to the statutory fund of another payer and the balance-sheet value (the residual value – for fixed assets, intangible assets, income-bearing investments in material assets) of that property shall not be taken into account when gross profit of the payer that transfers that property is determined.

8. If the sum of monetary means or costs on production or acquisition of goods (performance of works, rendering of services), property rights or  residual value of fixed assets, intangible assets, income-bearing investments in material assets, being transferred in exchange for shares of own issue, stakes (parts of  stakes) in statutory funds, stocks (part of stocks), being bought out by the organization, exceeds the nominal value of the mentioned shares, initial value of stakes, stocks (parts thereof), such difference shall not be taken into account when determining gross profit of the payer that transfers monetary means, property in exchange for shares of own issued, stakes (part of stakes) in statutory funds, stocks (parts of stocks), being bought out.

9. Losses of participants (shareholders) of liquidated or reorganized payers occurred in connection with such liquidation or reorganization shall not be taken into account when determining gross profit of those participants (shareholders).

10. Losses of Belarusian organizations reorganized  in the form of merging, splitting-up, splitting-off, incurred by them while carrying out activities prior to this reorganization (liquidation) are not taken into account when determining gross profit of the payer to which those legal persons have been affiliated, and also gross profit of the payers which were newly established as a result of reorganization.

Losses of affiliates liquidated as a result of change of the structure of legal persons, incurred by them while carrying out activities prior to this liquidation are not taken into account when determining gross profit of the organization that liquidated those affiliates.

11. The following does not constitute a taxation object for the tax on profit:

11.1. incomes obtained by issuers from placement of shares;

11.2. profit from alienation of property being in the state ownership under which received monetary means are to be directed to the budget in arising from acts of legislation regulating the order of disposal of the state property and/or for the purposes determined by those acts of legislation or are to be distributed according to the mentioned acts of legislation;

11.3. profit from realization of an enterprise as a property complex of the debtor within the bankruptcy proceedings;

11.4. profit state social service institutions from realization of articles manufactured within the framework of rehabilitation and work activity and in  training in hobby circles, and also when holding events on development of accessible labour skills of disabled persons;

11.5. profits from valuation of securities at a fair value.

12. Losses from realization of goods (works, services), property rights, the profit from realization of which, in accordance with this Article and other legislation acts, is not a taxation object for the tax on profit are not taken into account for taxation.

13. A negative difference between incomes and expenses on operations with financial instruments of forward transactions that are not traded on the organized securities market, the underlying asset of which is foreign currency, rights (claims) on which are terminated by means of mutual setoff (partial mutual setoff) of claims, is not taken into account when taxation the profit.

14. Organizations (with the exception of banks) are entitled to include exchange rate differences, being determined in the order established by the legislation on accounting and reporting, arising during a calendar year in non-operating income and/or expenses when determining the tax base of the tax on profit on the dates determined in accordance with Articles 174 and 175 of this Code, during the tax period or in the last reporting period of the corresponding calendar year.

The procedure for tax accounting of exchange rate differences chosen by the organization shall be reflected in its accounting policy and is not subject to change during the current tax period.

When applying the procedure for tax accounting of exchange rate differences, providing for their reflection in the last reporting period of the corresponding calendar year, in the cases:

specified in clauses 1, 3, 4 and 6 of Article 44, clauses 4-6 of Article 45 of this Code, exchange rate differences are included in the composition of non-operating incomes and/or expenses when submitting a tax declaration (calculation) in accordance with the specified clauses;

switching (except for the switching from the beginning of the calendar year) from the common taxation order to the single tax for producers of agricultural produce, exchange rate differences formed in a calendar year during the period of application of the common taxation order shall be included in non-operating incomes and/or expenses when determining the tax base of the tax on profit for the reporting period preceding the month from which the application of the single tax for producers of agricultural produce begins.

Article 168. Profit (loss) from realization of goods (works, services), property rights

1. Profit (loss) from realization of goods (works, services), property rights shall be determined as a positive (negative) difference between revenue from their realization on a compensatory basis decreased by the sums of taxes and dues computed from the revenue and costs taken into consideration for taxation, unless otherwise established by this Article.

The revenue does not include the value of goods (works, services), property rights, transferred gratuitously, including costs on their gratuitous transfer.

2. Profit (loss) from realization of fixed assets shall be determined as a positive (negative) difference between revenue from their realization on a compensatory basis decreased by the sums of taxes and dues computed from the revenue and their residual value, and also of costs on realization thereof.

Profit (loss) from realization of intangible assets shall be determined as a positive (negative) difference between revenue from their realization on a compensatory basis decreased by the sums of taxes and dues computed from the revenue and their residual value, and also of costs on realization thereof.

3. Profit (loss) from realization by a participant of a stake (part of the stake) in the statutory fund (stock (part of the stock)) of an organization is determined as a positive (negative) difference between the revenue from its realization on a compensatory basis and the sum of contribution of this participant to the statutory fund of the organization or expenses actually incurred (paid) by the participant for acquisition of the stake in the statutory fund (stock) of the organization, computed in the event of alienation of a part of the stake (part of the stock) based on the specific weight of the part of the stake (part of the stock) being alienated in the stake of the statutory fund (stock) of this participant.

In that instance the sum of contribution or expenses on acquiring of a stake in the statutory fund (stock) of the organization are subject to be multiplied by the ration of official rates established by the National Bank toward the US dollar as of the date the date of recognition of revenue and as of the date of actual making the contribution or of actual making (paying) expenses on acquiring of the stake in the statutory fund (stock) of the organization.

For taxation of the profit from realization on a compensatory basis of a stake (part of the stake) in the statutory fund (stock (part of the stock)) of an organization, sums specified in sub-clause 3.3 of clause 3 of Article 174 of this Code are also shall be taken into account as expenses.

4. Profit (loss) from realization of the enterprise as a property complex (with the exception of realization of the enterprise as  a property complex by the owner of the property of a unitary enterprise (institution)) is determined as a positive (negative) difference between revenue from its realization on a compensatory basis decreased by the sums of taxes and dues being computed from the revenue and the difference between assets and liabilities being defined according to the transfer act and also expenses connected with realization of the enterprise as a property complex.

Profit (loss) from realization of the enterprise as a property complex by the owner of the property of a unitary enterprise (institution)) is determined as a positive (negative) difference between revenue from its realization on a compensatory basis decreased by the sums of taxes and dues being computed from the revenue, sum of his contribution to the statutory fund of the unitary enterprise or sum of expenses actually made by him for acquisition of the enterprise as a property complex, and also sum of monetary means and/or the value of other property transferred earlier to the unitary enterprise (institution) into economic management or operative administration, and the expenses connected with realization of the enterprise as a property complex.

In that instance the amount of revenue from realization on a compensatory basis of the enterprise as a property complex and the sum of contribution to the statutory fund of the unitary enterprise or expenses actually made by him for acquisition of the enterprise as a property complex, and also sum of monetary means and/or the value of other property transferred earlier to the unitary enterprise (institution) into economic management or operative administration, are subject to be recalculated into US dollars at the official rate established by the National Bank, respectively on the date of recognition of revenue and on the date of actual introduction of the contribution to the statutory fund or carrying out expenses for acquisition of the enterprise as a property complex, and also on the date of transfer of monetary means and/or other property to the unitary enterprise (institution) into economic management or operative administration.

5. For the purposes of this Chapter, provisions established for realization of goods (works, services), property rights are applied in relation to realization of other assets, unless otherwise established by this Chapter.

6. [Excluded]

7. revenue from realization on a compensatory basis of goods (works, services), property rights shall be reflected on the date of its recognition in the accounting irrespective of the date of making settlements on them with observance of the principle (method) of accrual under the procedure established by the legislation, having regard to provisions of this clause.

On contracts in which the amount of obligations is denominated in Belarusian rubles as an equivalent to the amount in foreign currency, the revenue from the realization on a compensatory basis of goods (works, services), property rights shall be taken in Belarusian rubles at the official rate of the National Bank established on the date of its recognition in the accounting, and in cases where the date of determining the amount of the obligation precedes or coincides with the date of fulfillment of obligations on payment  – in the sum payable in Belarusian rubles.

The date of determining the amount of the obligation under a contract is understood the date on which, in accordance with the legislation or an agreement of the parties, the payable sum in Belarusian rubles is determined on obligations under the contract expressed in Belarusian rubles in a sum equivalent to a sum in foreign currency.

The date of reflection of the revenue from realization of goods is determined in accordance with the accounting policy of the organization, but may not the later than:

the date of their release to the buyer (recipient  or organization (individual entrepreneur) carrying out the carriage (forwarding) of goods, or communication organization), unless the seller carries out delivery (transportation) of goods or bears costs on delivery (transportation);

in other instances, the earliest from the following dates: the date of transfer to the buyer (recipient) or the date of transfer to the organization (individual entrepreneur) carrying out the carriage (forwarding) of goods, the payment for services of which the buyer makes.

Upon realization of goods at retail prices in retail trade and/or public catering, the date of reflection of revenue shall be determined in accordance with clause 3 of Article 121 of this Code.

8. The date of reflection of revenue from execution of works, rendering of services shall be recognized its acceptance in the accounting.

9. The date of transfer of property rights shall be recognized the day determined in accordance with clause 8 of Article 121 of this Code.

10. The date of reflection of the revenue from realization of goods (performance of works, rendering of services), transfer of property rights by the commitent (principal) upon their realization shall be recognized one of the following dates:

the date of shipment of goods (execution of works, rendering of services), transfer of property rights by their owner or rightholder to the commissioner, agent or other similar person;

the date of shipment of goods (execution of works, rendering of services), transfer of property rights by the commissioner, agent or other similar person to the buyer or ordering customer.

The procedure chosen by the payer of determining the day of shipment of goods (execution of works, rendering of services), transfer of property rights shall be indicated in the accounting policy of the organizations and is not subject to be changed in the course of the current tax period.

11. The date of reflection of the revenue from realization of goods, transfer of property rights by the trustor upon their realization by the trustee shall be recognized the date of shipment of goods, transfer of property rights by the trustor to the buyer.

12. The date of calculation of dividends shall be the date of the decision on distribution of profit by means of declaring and paying dividends, and on incomes equated to dividends, posted by unitary enterprises – the date of reflection in the accounting of obligations on payment (transfer) of such incomes.

13. In the event of return by the buyer (ordering customer) to the seller (contractor) of goods (refusal of performed works, rendered services, property rights) or decreasing (increasing) of the value of goods (works, services), property rights at the seller (contractor), revenue and corresponding costs to be taken into account for taxation are subject to correction in the in the reporting period in which the return of the goods (refusal of performed works, rendered services, property rights) took place or decreasing or increasing of the value is made, and the buyer (ordering customer) shall make a respective correction of costs to be taken into account for taxation.

In case of dissolution (termination) of the contract of lease (leasing) or decrease (increase) of the lease payment (leasing payment), the lessor (lessor) shall correct non-realization incomes and/or non-realizations expenses in the reporting period in which the dissolution (termination) of the contrct of lease (leasing) took place  or a decrease (increase) of the lease payment (leasing payment) is made, and the lessee shall make an appropriate correction of costs taken into account in that reporting period.

Provisions of parts one and two of this clause do not apply and corrections of the revenue, costs taken into account in taxation, non-realization incomes and/or non-operating expenses shall be made, respectively, for the reporting period in which they were included in the tax base:

upon return of goods (refusal of performed works, rendered services, property rights) or decreasing (increasing) of the value of goods (works, services), property rights, the profit from realization of which is exempted, in accordance with the legislation, from taxation with the tax on profit (from payment of the tax on profit) or is taxable with the tax on profit at a reduced rate;

by payers for which the realization of goods (works, services), property rights, putting in lease (transfer into financial lease (leasing)) of the property in relation to which the return (refusal) or decreasing of the value, lease payment (leasing payment) is carried out, was not taken into account for purposes of computation of the tax on profit in connection with application of a special taxation regime;

upon return of goods (refusal of performed works, rendered services, property rights) or decreasing (increasing) of the value of goods (works, services), property rights, dissolution (termination) of the contract of lease (leasing) or decrease (increase) of the lease payment (leasing payment) if the ground for their performance has been demand (notification, initiative) of third persons and not an agreement of the parties.

In the event of return by the buyer (ordering customer) to the seller (performer) of goods (refusal of executed works, rendered services), property rights, or decreasing of the value of goods (works, services), property rights, dissolution (termination) of the contract of lease (leasing) or decrease of the lease payment (leasing payment) in the period when the organization applied a special taxation regime if the revenue from realization of which was taken into account for computing the tax base for the tax on profit in the calendar year preceding the year in which the return (refusal), dissolution (termination) or decreasing of the value was effectuated, changes shall be introduced in the tax declaration (calculation) for the tax on profit for the last reporting period of such preceding calendar year.

In the event of return by the buyer (ordering customer) to the seller (performer) of goods (refusal of executed works, rendered services), property rights, or decreasing of the value of goods (works, services), property rights, dissolution (termination) of the contract of lease (leasing) or decrease of the lease payment (leasing payment) in the period when the organization applied the single tax for producers of agricultural produce in which the revenue from realization of which was taken into account for computing the tax base for the tax on profit in the calendar year if the return (refusal), dissolution (termination) or decrease of the value, lease payment (leasing payment)  was effectuated, changes shall be introduced in the tax declaration (calculation) for the tax on profit for the reporting period in which the revenue from their realization (non-realization incomes) were taken into account for computing the tax base of the tax on profit.

Article 169. Costs taken into account for taxation

1. Costs taken into account for taxation are recognized economically reasonable costs being determined on the basis of documents of accounting (if necessary by way of making calculating corrections to the data of the accounting within the framework of conducting the tax accounting), unless otherwise established by this Code and/or legislation.

Costs taken in account for taxation include:

costs on production and realization of goods (works, services), property rights taken into consideration for taxation (later on in this Chapter – costs on production and realization);

standardized costs.

2. When the gross profit is determined by affiliates, it shall be accepted the costs on activities of those affiliates, taken into account for taxation.

When a Belarusian organization takes decision on transfer of costs linked to the management of the organization to affiliates as costs, the latter shall accept costs taken for taxation, distributed between the organization and all affiliates, irrespective of results of their financial and economic activity proportionally to the criterion determined by the accounting policy of the organization.

3. Costs  being taken into account in taxation shall be reflected in the reporting period to which they are referred (accrual principle) irrespective of the time (time limit) of payment (advanced or subsequent).

When determining the profit from realization of produced goods (executed works, rendering of services), and also of acquired goods, costs shall be accepted falling on actually realized goods (works, services) calculated on the basis of accounting data, are accepted, if such distribution is provided by the legislation on accounting and reporting.

4. Expenses may not be recognized as economically reasonable costs upon availability of at least one of the following criteria:

4.1. goods (intangible assets) actually did not arrive, works were not performed, services were not rendered, property rights were not transferred, the property was not transferred; into lease (financial lease (leasing)) and continues to be used by the by the lessor;

4.2. works were performed, services rendered by an individual entrepreneur being simultaneously a person having labour relationships with the payer, and execution of such works, rendering of such services are referred to labour duties of such a person;

4.3. works were performed, services rendered to the payer (with the exception by a joint-stock company) by an organization (with the exception of joint-stock companies) being a founder (participant) of the payer or in relation to which the payer is a founder (participant), if execution of such works, rendering of such services are referred to duties of a worker being in labour relationships with the payer.

Provisions of this sub-clause are not applicable when executing works, rendering services to the payer by the organization if such payer and organization are participants of one holding.

Article 170. Costs on production and realization

1. Costs on production and realization represent cost estimate of natural resources, raw materials, materials, fuel, energy, fixed assets, intangible assets, labour resources, used in the process of production and realization of goods (works, services), property rights, and other expenses on production and realization thereof being reflected in the accounting.

2. Costs on production and realization shall be accepted having regard to the following specific features:

2.1. costs on acquisition (including through creation) of objects of fixed assets and intangible assets used in entrepreneurial activities and being in operation shall be reflected by means of posting the depreciation. Fixed assets being in shutdown (including in connection with conducting a repair) for a duration of up to three months, reserve are equated to fixed assets being in operation;

2.2. the payer is entitled to apply the investment deduction and include it in costs on production and realization in the order established by this sub-clause.

For the purposes of this Chapter, the investment deduction is recognized to be a sum computed from the initial value of fixed assets (including those acquired under a finance lease (leasing) agreement providing for the purchase of an object) used in entrepreneurial activity, and also from the value formed in the accounting of investments in fixed assets used in entrepreneurial activity in connection with their reconstruction, modernization, restoration (later on in this sub-clause – value of investments in reconstruction) within the following limits:

for buildings, structures and transfer devices, used in entrepreneurial activity, and the value of investment in their reconstruction – not more than fifteen percent of the initial value (value of investments in reconstruction);

on machinery and equipment, used in entrepreneurial activity, and the value of investment in their reconstruction, on vehicles (with the exception of cars, except for those operated as service cars being referred to special-purpose ones, and also used for taxi services) and the value of investment in their reconstruction – not more than thirty percent of the initial value (value of investments in reconstruction).

The sum of the investment deduction shall be included into costs on production and realization during two years beginning from the reporting period on which falls the month:

from which, in accordance with the legislation, posting of the depreciation used in entrepreneurial activity, specified in part two of this clause, has begun;

in which the value of investments in reconstruction has increased the initial (reassessed) value of fixed assets used in entrepreneurial activity.

Concerning one and the same object of fixed assets used in entrepreneurial activity, the investment deduction may be applied the payer repeatedly only in relation to the value of investments in reconstruction that has been not accepted for calculation of the investment deduction.

For the purposes of determining the investment deduction on fixed assets used in entrepreneurial activity:

buildings include fixed assets (parts thereof) determined as buildings by the legislation regulating normative time limits of fixed assets service, with the exception of dwelling houses (parts thereof (except for rental housing, residences, built-in-attached non-residential premises in residential buildings), buildings of cultural and entertaining (night) clubs, buildings used for carrying out activity in the sphere of gambling business, buildings of hotels and other buildings for short-term accommodation (except for those referred to roadside service objects), mobile buildings (including dismountable and movable ones);

transfer devices include fixed assets (parts thereof) determined as transfer devices by the legislation regulating normative time limits of fixed assets service;

structures include fixed assets (parts thereof) determined as structures by the legislation regulating normative time limits of fixed assets service, with the exception of structures of resting places and zoos, structures for parking cars;

machinery and equipment, vehicles include fixed assets determined as machinery and equipment, vehicles by the legislation regulating normative time limits of fixed assets service;

value of investments in reconstruction include actual costs connected with the reconstruction (modernization, restoration) of buildings, structures, transfer devices, machinery and equipment, vehicles, which have increased in the accounting the initial value of those fixed assets used in entrepreneurial activity.

The sum of the investment deduction for built-in and attached non-residential premises in residential buildings for which an investment deduction can be applied, and/or residential premises related to rental housing that are not reflected in accounting as independent objects of fixed assets, shall be determined based on the initial value of the building in proportion to the specific weight of the total area of the specified premises in the total area of the premises of the residential building.

Provisions of this sub-clause are not to be applied:

to the initial value of fixed assets accepted by the payer for accounting as object under contracts of lease (financial lease (leasing) with the exception of a contract of financial lease (leasing) stipulating the buy-out of the leasing object), another compensatory or gratuitous use, trust management, as a contribution to the statutory fund (simple partnership);

to the initial value of fixed assets received gratuitously or the initial vale of which is formed (in full or in part) at the expense of gratuitously accepted costs made while creating objects;

to the initial value of fixed assets acquired at the expense of means received gratuitously within the framework of special purpose financing from the republic or local budgets or budgets of state non-budgetary funds, investment funds formed in accordance with acts of the President of the Republic of Belarus, the budget of the Union State;

to the initial value of fixed assets being used (in full or in part) or intended for being used (in full or in part) in activity on which the organization does not pay the tax on profit in connection with application of special taxation regimes;

to the value of investments in reconstruction on fixed assets accepted by the payer as object under contracts of trust management;

to the value of investments in reconstruction carried out at the expense of means received gratuitously within the framework of special purpose financing from the republic or local budgets or budgets of state non-budgetary funds, investment funds formed in accordance with acts of the President of the Republic of Belarus, the budget of the Union State;

to the value of investments in reconstruction on fixed assets being used (in full or in part) or intended for being used (in full or in part) in activity on which the organization does not pay the tax on profit in connection with application of special taxation regimes;

to the initial cost of buildings (their parts) attributable to residential premises related to rental housing, in the case of acceptance of such buildings into operation by the developer organization after the normative time period of construction has expired;

2.3. expenses for performance of scientific-research, research-and-development and technological-experimental works registered in the state register of scientific-research, research-and-development and technological-experimental works in the order determined by the President of the Republic of Belarus may be attributed to costs on production and realization with application of a multiplying factor of up to 1.5 inclusively in the order determined by the Council of Ministers of the Republic of Belarus;

2.4. interest for using credits, loans recognized in the accounting as expenses shall be accepted as costs on production and realization, with the exception of interest on credits, loans which are referred to the value of investment assets in accordance with the legislation, and also interest on overdue indebtedness on the principal on loans and credits;

2.5. compulsory insurance fees to the state non-budgetary fund of social protection of the population of the Republic of Belarus and for compulsory insurance against accidents in the workplace and occupational diseases are reflected, computed in the order established by the legislation, being referred to costs taken into account for taxation, and also payments to workers and other persons under civil-law contracts the subject matter of which are performance of works (rendering of services) shall be accepted as costs on production and realization;

2.6.  expenses related to purchase of foreign currency in the sum of the difference between the rate of purchase and the official rate of the Belarusian ruble to the relevant foreign currency established by the National Bank at the moment of purchase;

2.7. one-time outpayment (allowance) for medical rehabilitation carried out to employees of budgetary organizations in accordance with the legislation, whose remuneration is made at the expense of non-budgetary means from income-generating activities is included in costs on production and realization;

2.8. some kinds of costs may be reflected by means of creating, in the order established by the legislation, of reserves for forthcoming expenses;

2.9. any accruals to natural persons working for organizations under labour contracts, in money and/or in kind, remuneration according to results of work for the year, outpayments having the nature of remuneration according to results of work for the year, bonuses, additional payments, increments related to the mode of work or working conditions provided for by legislation and/or a labour contract, agreement, collective contract, on the basis of legislation, with the exception of the expenses specified in sub-clause 1.3 of clause 1 of Article 173 of this Code, are included in expenses on payment for labour.

Article 171. Standardized costs

1. Standardized costs include the following types of costs:

1.1. expenses and compensations for business trips, reimbursed in the order and amounts established by the Council of Ministers of the Republic of Belarus;

1.2. costs on payment of the value of fuel and energy resources spent within the limits established in accordance with the legislation;

1.21. costs on payments for the value of fuel and electrical energy for motor vehicles, ships, machines, mechanisms and equipment, consumed within the limits established by the head of the organization either independently or on the basis of the results of tests carried out by an accredited testing laboratory;

1.3. losses due to shortage and/or decay during storage, transportation and/or realization of goods, inventories within the limits of the norms of natural loss, and also of norms of wastage (breakage) established by the legislation, and in their absence – within the norms established by the head in agreement with the owner, the general meeting of participants, members of the consumer society, plenipotents or with the person authorized by them. In the absence of established norms, such shortages and/or decay of goods shall be considered as exceeding the normative;

1.4. expenses on managerial services being rendered by individual entrepreneurs, and also by organizations applying special taxation regimes, within the sums calculated based on the ratio of the average salary of heads of organizations and the average salary of the organization as a whole, determined in the order and amount established by the legislation;

1.5. costs on controlled indebtedness within the limits calculated in accordance with Article 172 of this Code;

1.6. for organizations exploiting the housing fund and/or rendering housing and communal services, with the exception of organizations making part the of system of the Ministry of Energy – costs for payment of overhead expenses and technological losses within the norms and normatives established in accordance with the legislation;

1.7. other costs determined by clause 2 of this Article.

2. Other costs include:

2.1. outpayments, in money or in kind, to natural persons working for organizations under labour contracts in the form of:

lump-sum allowances to persons going in retirement;

one-time outpayment (material aid, allowance) for medical rehabilitation, with the exception of the one specified in sub-clause 2.7 of clause 2 of Article 170 of this Code;

2.2. expenses for the improvement and maintenance (operation) of settlements and adjacent territories, memorial sites, expenses for maintaining the sanitary state of lands of common use;

2.3. expenses for holding, in accordance with legislation on the occasion of public holidays, holidays and memorial dates of official commemorative events, military parades, artillery salutes and fireworks;

2.4. remunerations and/or reimbursable expenses to members of the board of directors (supervisory board), representatives of the state in the governing bodies of organizations, unless otherwise provided by the legislation;

2.5. expenses on representation;

2.6. costs on transporting (delivering) buyers (ordering customers) to a commercial facility (place of work execution, services rendering) and back in directions served by public passenger transport;

2.7. compensations for the use of personal vehicles paid to workers whose job does not have a traveling-related nature;

2.8. membership fees (entrance and other) in associations of entrepreneurs and employers, unions, associations;

2.9. interest on overdue payments on principal debt on loans and credits.

3. The total amount of other expenses taken into account for taxation may not exceed one (1) percent of the revenue from realization of goods (works, services), property rights and sums of income specified to in sub-clauses 3.18 of clause 3 of Article 174 of this Code, taking into account the value added tax (for banks - from the sum of incomes determined in accordance with Article 176 of this Code, minus incomes related to non-operating incomes in accordance with this Code, except for sums of incomes specified in sub-clause 3.18 of clause 3 of Article 174 of this Code).

Article 172. Order for determining costs on controlled indebtedness

1. When determining the tax base of the tax on profit for the tax period, the costs and non-realization expenses for the types of works, services, property rights and other obligations specified in sub-clause 2.3 of clause 2 of this Article (later on in this Article – works (services)) shall be taken into account by Belarusian organization based on the sums of costs and non-operating expenses actually incurred, unless their amount exceeds the sums calculated in accordance with provisions of this Article (late on in this Chapter - sum of maximum costs). The sum of maximum costs to be determined if a Belarusian organization has a controlled indebtedness, computed in accordance with the rules of this Article, on the last day of the tax period, the sum of which is three or more times (for a Belarusian organization producing excisable goods in the tax period more than one time) exceeds the amount of its own capital.

The amount of own capital is to be determined according to the accounting data on the last day of the tax period and/or on the date of the liquidation balance sheet (the act of inspection, during which the circumstances were established that are the basis for the liquidation of the legal person according to the decision of the registering body) and/or on the date of drawing up the dividing balance sheet or transfer act (later on in this Article - the last day of the tax period).

If the amount of own capital is negative or equal to zero (0), the Belarusian organization is not entitled to take into account the costs and non-operating expenses on controlled indebtedness when determining the tax base of the tax on profit.

2. For the purposes of this Chapter:

2.1. controlled indebtedness of the Belarusian organization is understood indebtedness on works (services) toward:

a founder (participant) of the Belarusian organization that possesses, directly or indirectly, more than 20 percent of shares (stakes, stocks in the statutory fund) of that Belarusian organization (later on in this Article – founder (participant)) and another its interdependent person;

an interdependent person of the founder (participant) of the Belarusian organization (provided that the status of a interdependent person remains on the last day of the respective tax period).

Controlled indebtedness of the Belarusian organization is not a debt obligation toward a bank not being recognized as its interdependent person;

2.2. own capital of the Belarusian organization is understood as the difference between the sum of assets and the sum all liabilities without taking into account the sum of liabilities on taxes, dues (duties), compulsory insurance fees to the state non-budgetary fund of social protection of the population of the Republic of Belarus, as well as sums of taxes, dues (duties) and penalty interest for which adjournment and/or by-installment payment are granted, sums of budget loans;

2.3. the sum of controlled indebtedness shall be determined as a set of sums of indebtedness toward all persons specified in sub-clause 2.1 of this clause , for the following types of works (services):

borrowed means on credits, loans (with the exception of commercial loans) on which income is accrued, without account of sums of interest, commissions, other remuneration, provided for payment (transfer) in connection with such credits, loans (later on in this Article - interest). The sum of indebtedness on credits, loans does not include the sums of loans provided in full from the means received from the placement of bonds issued by the founder (participant), another interdependent person of a Belarusian organization for the purposes of sending to an interdependent Belarusian organization in the form of loans;

engineering services, marketing services, consultation services, services on providing information, managerial services, intermediary services, services on finding and recruitment of personnel, employment of personnel, providing personnel for carrying out activity, remuneration for transfer (granting) of property rights in relation to industrial property objects;

sums of penalty fees (fines, penalty interest), sums due to be paid as a result of application of other measures of liability, including reimbursement of losses for breaching of contract obligations

obligations arising in connection with the performance by the persons specified in sub-clause 2.1 of this clause of the guarantee obligation to repay the indebtedness of the Belarusian organization for works (services) specified in indents two-four of this part.

In that instance, the sum of controlled indebtedness:

includes sums of cost parameters  of each economic operation as a result of which indebtedness arises, and also sums of indebtedness that arose in previous tax periods and not repaid on the last day of the expired tax period;

includes sums of exchange differences arising upon reassessment of liabilities in foreign currency on the sum of controlled indebtedness;

2.4. the capitalization ratio shall be calculated by the formula:

C = (Ci / Oc) – for Belarusian organizations producing excisable goods in the tax period,

C = (Ci / Oc) / 3 – for other Belarusian organizations,

where: Ci – controlled indebtedness in the tax period toward all persons specified in sub-clause 2.1 of this clause;

Oc – own capital of the Belarusian organization;

2.5. for purposes of this Article, excisable goods include  excisable goods subject to be marked by excise stamps of the Republic of Belarus, beer, beer cocktail, low-alcohol drinks of an actual alcoholic strength by volume of more than 1.2 percent vol and less than 7 percent vol (low-alcohol natural drinks, other low-alcohol drinks).

3. Sums of maximum costs shall be determined by dividing the sums of costs and non-realization expenses covered by Articles 169, 170 and 175 of this Code, specified in indents three and four of part one of sub-clause 2.3 of clause 2 of this Article, for which controlled indebtedness arose and interest on borrowed means for which controlled indebtedness arose by the capitalization ratio.

4. Rules established by this Article are not applied by the banks, insurance organizations or organizations for which the sum of rent (leasing payments) received (to be received) within the tax period as of the last day of the tax period exceeds 50 percent of total revenue of the organization from realization of goods (works, services), property rights and incomes from operation on putting of property into lease (transfer into financial lease (leasing)).

Article 173. Costs not taken into account for taxation

1. The following costs are not taken into account for taxation:

1.1. costs on performing (rendering) by the organization or payment for works (services) not connected with production and realization of goods (works, services);

1.2. on execution of works on construction, equipment, maintenance (including costs on all kinds of repairs) of objects, with the exception of those named in sub-clause 3.28 of clause 3 of Article 175 of this Code, and also depreciation deductions of objects being on the balance sheet of the organization which do not participate in entrepreneurial activity;

1.3. outpayments, in money or in kind, to natural persons working for organizations under labour contracts:

not provided for by the legislation;

in excess of the sizes established and/or determined in accordance with the legislation;

bonuses paid at the expense of special-purpose means and earmarked revenue, as well as in excess of the amounts provided for by the legislation and/or local acts;

material aid (including gratuitous material aid to workers for construction or acquisition of a one-apartment house or apartment, and also for repayment of credits, loans granted for these purposes), the payment of which is not proviced by the legislation or in excess of the amounts established by the legislation;

increments and extra payment to pensions;

payment of additional incentive leaves, with the exception of additional incentive leaves, the duty of granting which is established by the legislative acts. This provision also extends to payment in accordance with the legislation of monetary compensation for non-used days of the mentioned additional leaves;

outpayments made to workers being trained in the amount exceeding the size of stipend established in accordance with the legislation;

compensation payments in connection with an increase of prices, made above the sizes of indexation provided by the legislation;

compensation of alimentation costs in public catering objects, provision of free alimentation (except for special alimentation for some kinds of natural persons in the instances provided by the legislation);

payment of expenses on hiring dwelling (with the exception of actual expenses on hiring dwelling premises for natural persons sent by Belarusian commercial organizations for work in structural divisions of those organizations located outside the Republic of Belarus, on the basis of confirming documents, but not more than maximum norms of reimbursement of expenses on hiring dwelling premises upon business trips abroad established by legislation, unless otherwise established by the Labour Code of the Republic of Belarus), booking documents for treatment or recreation, excursions and travels, training in hobby groups, clubs, attendance of cultural, sporting and mass sporting events, subscription to periodicals, goods (works, services) for personal consumption and other similar outpayments and costs;

1.4.  expenses on meals, organization of leisure time, rest, including while conducting advertising actions, conferences, seminars, talks, studying and other similar events.

Provisions of part one of this sub-clause are not applied in the instances when such expenses:

are referred to representative expenses;

are included in the cost of events specified in part one of this sub-clause and paid by their participants;

1.5. sums of dividends calculated by the organization and incomes equated to them;

1.6.  penalty interest, fines, and other sanctions being remitted to the republican and local budgets or to budgets of state non-budgetary funds, with the exception of penalty interest, fines, and other sanctions for breaching contractual conditions transferable to such budgets, unless otherwise established by this Chapter;

1.7. contributions to statutory funds of organizations;

1.8. costs on acquisition and/or creation of depreciable property;

1.9. sums of depreciation deductions on fixed assets and intangible assets, not used in entrepreneurial activity and not being operated;

1.10. value of the property or property rights, transferred as earnest or pledge;

1.11. costs made at the expense of means of reserves for forthcoming expenses, created by the payer under the established procedure;

1.12. costs on acquisition of travel passes for public transport for workers the job of which involves travelling, if these workers are granted special transport for the period of discharging their duties;

1.13. sums of a decrease in the value of fixed assets, intangible assets, income-bearing investments in material assets, equipment to be installed, made in accordance with the legislation, and the sum of depreciation of fixed assets, intangible assets, long-term assets intended for realization, and investment immovable property;

1.14. sums of monetary means or costs on production or acquisition of goods (performance of works, rendering of services), property rights or  residual value of fixed assets, intangible assets, income-bearing investments in material assets, transferred in exchange for shares of own issue, stakes (parts of  stakes) in statutory funds, stocks (part of stocks), bought out by the organization, exceeding  the nominal value of the mentioned shares, initial value of stakes, stocks (parts thereof);

1.15. [excluded]

1.16. granted loans, including interest-free ones;

1.17. insurance fees on types of voluntary insurance, with the exception of insurance fees according to the list of types of voluntary insurance and the procedure, determined by the President of the Republic of Belarus, and insurance fees provided by the legislation (including that of foreign states) being a condition for carrying out activity by the organizations which paid such fees;

1.18.  sums of rate differences determined in the order established by the legislation, which arise upon recalculation of a sum expressed in foreign currency and/or Belarusian rubles, equivalent to a certain sum in foreign currency, value of assets and liabilities being determined in the order established by legislation, which arose in connection with:

carrying out costs not being taken into account for taxation according to this Article and other provisions of the legislation;

receipt of incomes not being taken into account for taxation according to the legislation;

1.19. costs related to gratuitous transfer of goods (works, services), property rights (with the exception of fixed assets and intangible assets), in the form of costs on their production (performance, rendering) or acquisition, sums of the value added tax computed on that gratuitous transfer and also costs on such gratuitous transfer;

1.20. depreciable value of fixed assets and intangible assets upon their gratuitous transfer, sums of the value added tax computed on that gratuitous transfer and also costs on such gratuitous transfer;

1.21. costs from valuation of securities at a fair value;

1.22. other costs not connected with production and realization of goods (works, services), property rights, which are not taken into account for taxation in accordance with the legislation.

2. Decisions about inclusion into costs taken into account for taxation of costs specified in clause 1 of this Article are taken by the President of the Republic of Belarus.

3. Costs specified in this Article and other costs which are not taken into account for taxation in accordance with the legislation may not be included into non-realization expenses, unless otherwise established by the President of the Republic of Belarus.

Article 174. Non-realization incomes

1. Non-realization incomes shall be recognized incomes received by the payer when carrying out his activity and not connected directly with production and realization of goods (works, services), property rights.

2. Non-realization incomes are determined on the basis of documents of accounting and tax records.

The date of reflection of non-realization incomes is determined by the payer as of the date of recognition of the incomes in the accounting, and in relation to incomes on which the date of their reflection is indicated in clause 3 of this Article – as of the date indicated in clause 3 of this Article.

3. Non-realization incomes include:

3.1. dividends from sources outside the Republic of Belarus;

3.2. incomes of the participant (shareholder) of an organization in money or in kind upon liquidation of the organization, upon withdrawal (expulsion) of the participant (shareholder) from the organization in the amount exceeding the sum of his contribution to the statutory fund or expenses actually made (paid) by the participant (shareholder) on acquiring of the stake in the statutory fund (stocks, shares) of the organization. The amount of incomes of the participant (shareholder) and the sum of his contribution or expenses on acquiring of a stake in the statutory fund (stocks, shares) of the organization are subject to be recalculated into US dollars at the official rate set by the National Bank, respectively, on the date of  recognition of the incomes in the accounting and on the date of actual making the contribution, or of actual making (paying) expenses on acquiring of a stake in the statutory fund (stocks, shares) of the organization.

When determining the income of the participant (shareholder) of an organization in money or in kind upon liquidation of the organization, upon withdrawal (expulsion) of the participant (shareholder) from the organization, sums specified in sub-clause 3.3 of this clause are also taken into account as expenses with recalculation in US dollars, provided by part one of this sub-clause;

3.3. incomes of the participant (shareholder) of an organization in the form of the value of the stake in the statutory fund (value of the stock, nominal value of shares) of that organization, and also in the form of an increase of the nominal value of shares  made at the expense of the own capital of the organization, in the instance of  changing the percentage in the statutory fund at least of one of the participants (shareholders) for more than by 0.01 percent.

Such incomes shall be reflected on the date of adoption of the decision about distribution (redistribution) of stakes in the statutory fund (stocks, shares), increase of the nominal value of shares;

3.4. incomes in the form of interest for granting into use of monetary means of the organization (including interest from placing means into deposits), interest for using by the bank of monetary means being on the bank account;

3.5. sums of penalty fees (fines, penalty interest), sums due to be received as a result of application of other measures of liability for breaching contract obligations.

Such  incomes shall be reflected on the date determined by the payer (with the exception of banks) in accordance with his accounting policy, but not later than the date of their receipt;

3.6. inpayments for reimbursement of  harm in kind, damages, including lost profit.

Such incomes are reflected on the date of their receipt irrespective of the mode of reimbursement of a damage in kind, losses (including payment of an indebtedness toward third persons, offset of counterclaims of the same kind, and other methods);

3.7. value of gratuitously received goods (works, services), property rights, other assets, sums of monetary means gratuitously received. In that instance,  gratuitously received goods (works, services), property rights, other assets, sums of monetary means gratuitously received include also received goods (works, services), property rights, other assets in the event of exemption from the duty of paying for them, received monetary means in the event of exemption from the duty of returning them, with the exception of the instances established by sub-clause 3.12 of this clause, and also sums of foreign gratuitous assistance or international technical assistance, not exempted from taxation in the order and on conditions established by the President of the Republic of Belarus.

Such incomes shall be reflected on the date of their receipt (date of exemption from the duty of paying for goods (works, services), property rights, other assets; date of exemption from the duty of returning monetary means), with the exception of incomes specified in part three of this clause.

Incomes in the form of value of goods (works, services), property rights, other assets, monetary means, received as foreign gratuitous aid subject to registration, being recognized as non-realization incomes, not exempted from taxation, shall be reflected:

by recipients in the amount due to them – as of the date of issuance of the certificate of the registration of foreign gratuitous aid;

by secondary (subsequent) recipients in the amount due to them - as of the date of actual receipt of such incomes;

upon refusal to exempt foreign gratuitous aid from taxation , in respect of which the purposes of its use are changed in accordance with the established order, as well as when sending foreign gratuitous aid exempt from taxation to pay general business expenses named in the list determined by the the Administration of Affairs of the President of the Republic of Belarus, - as of the date of approval by the Department for Humanitarian Activities of the the Administration of Affairs of the President of the Republic of Belarus of changes to the plan for the use of such aid;

3.8. sums for a discharge of accounts receivable after the expiry of limitation period, and also sums for a discharge of accounts receivable being (considered) uncollectible. Accounts receivable being (considered) uncollectible are recognized accounts receivable of liquidated organizations and individual entrepreneurs that terminated the activity, and also indebtedness of deceased natural persons and natural persons declared deceased, not being individual entrepreneurs.

Such incomes shall be reflected as of the date of their receipt irrespective of the way of their discharge (offset of counterclaims, discharge of the obligation to a third person etc.);

3.9. sums of accounts payable on which the limitations periods have been expired;

3.10. sums of accounts payable upon liquidation of the legal person.

Such incomes shall be reflected in the reporting period on which falls:

the earliest date from the following dates: the date of submission of the tax declaration (calculation) or the last day of the time limit for submitting the tax declaration (calculation) established by Article 44 of this Code;

the date of drawing up the act of inspection in the course of which circumstances being a ground for liquidation of a legal person according to the decision of the registering body have been detected – upon liquidation of a legal person according to a decision of the registering body under the procedure established by the President of the Republic of Belarus;

3.11. sums of accounts payable upon liquidation, termination of activities and/or death of the creditor.

Such incomes shall be reflected as of the date of exclusion of the creditor from the Unified State Register of Legal Persons and Individual Entrepreneurs (foreign organization and foreign individual entrepreneur – from the trade register or another similar system of record and identification of legal persons and individual entrepreneurs of the country of their establishment) and/or of the death of the natural person not being individual entrepreneur of declaration of the natural person not being individual entrepreneur as deceased, unless otherwise established by this sub-clause.

Sums of accounts payable in connection with the death (declaring as deceased) of the creditor by the bank shall be reflected on the date of recognition of such income in the accounting in accordance with the legislation;

3.12.  sums of a decrease of accounts payable (increase of accounts receivable) on penalty fees (fines, penalty interest) and other measures of liability for breaching obligations upon conclusion of the amicable agreement, agreement on conciliation, mediation agreement, international mediation agreement, provided that the previously specified sums were included in non-realization expenses.

Such incomes shall be reflected in the reporting period in which the amicable agreement or agreement on conciliation enters into force, or the mediation agreement, international mediation agreement is concluded;

3.13. value of the property accepted for accounting which resulted in excess upon results of the inventory.

Such incomes are reflected on the date of accepting the property in accounting of the payer;

3.14. payment for participation in trading (tender).

Such incomes shall be reflected as of the date of their receipt;

3.15. positive difference arising between the value of the property received (transferred) into loan and the value of the property transferred (received) upon discharging this loan, with the exception of redemption of housing bonds.

Such incomes are reflected on the date of accepting (writing off) the property in accounting of the payer;

3.16. sums of the value added tax included earlier in non-realization expenses in connection with absence of the documents that substantiate:

3.16.1. application of the rate of the value added tax in the amount of zero (0) percent upon expiry of one hundred eighty calendar days from the date of:

shipment of goods (including those produced from give-and-take raw materials and materials) to the states – members of the Eurasian Economic Union in the event of subsequent arrival of such documents. Such incomes are reflected on the date of arrival of documents that substantiate application of the rate of the value added tax in the amount of zero (0) percent;

formalizing of the declaration for the goods with the notices of the customs body about the release of the goods in accordance with the declared customs procedure (for payers that carry out the declaring of goods to the customs bodies in the form of an electronic document – from the date of entry into the information system of customs bodies of the data about the release of goods in accordance with the declared customs procedure) in the event of subsequent arrival of such documents. Such incomes are reflected on the date of arrival of documents that substantiate application of the rate of the value added tax in the amount of zero (0) percent;

holding the public trading on realization of fur material being exported from the Republic of Belarus outside the Russian Federation, in the event of subsequent arrival of such documents. Such incomes are reflected on the date of arrival of documents that substantiate application of the rate of the value added tax in the amount of zero (0) percent;

3.16.2. exemption from the value added tax upon the expiry of one hundred eighty calendar days from the date of shipment to the lessor of goods indicated in sub-clause 1.44 of clause 1 of Article 118 of this Code, in the event of subsequent arrival of such documents. Such incomes are reflected on the date of arrival of documents that substantiate exemption from the value added tax;

3.17. sums of excises included earlier in non-realization expenses in connection with absence of the documents that substantiate the application of exemption from excises upon the expiry of one hundred eighty calendar days from the date of:

shipment of excisable goods to the states – members of the Eurasian Economic Union, in the event of subsequent arrival of such documents. Such incomes are reflected on the date of arrival of documents that substantiate the application of exemption from excises;

formalizing of the declaration for excisable goods with the notices of the customs body about the release of excisable goods in accordance with the declared customs procedure (for payers that carry out the declaring of excisable goods to the customs bodies in the form of an electronic document – from the date of entry into the information system of customs bodies of the data about the release of excisable goods in accordance with the declared customs procedure), in the event of subsequent arrival of these documents.

Such incomes are reflected on the date of arrival of documents that substantiate the application of exemption from excises;

3.18. incomes from operation on putting of property into lease (transfer into financial lease (leasing)), other for-compensation or gratuitous use of the property.

Incomes from operation on putting of property into lease (financial lease (leasing)), other for-compensation or gratuitous use of the property are determined as a sum of rent (leasing payments) which includes the sum of remuneration of the lessor, payment for the use of the property to the lender  and expenses of the lessor to be reimbursed in accordance with the legislation, and also as a sum of expenses of the lessor which are not included in the rent (leasing payments), payment for the use of the property, accordingly, but are to be reimbursed in accordance with conditions of the contract, with the exception of sums of reimbursement specified in sub-clause 4.18 of clause 4 of this Article;

3.19. value of goods (works, services), property rights, sums of monetary means used not in accordance with the intended purpose which are received within the framework of foreign gratuitous assistance, international technical assistance, special purpose financing (with the exception of budgetary means).

Such incomes are reflected on the date of use, being not in accordance with the intended purpose, of goods (works, services), property rights or monetary means or on the date of breaching of conditions under which respective goods (works, services), property rights or monetary means had been granted;

3.20. exchange rate differences arising upon recalculation of the value of assets and liabilities expressed in foreign currency and/or in Belarusian rubles in a sum equivalent to a certain sum in foreign currency, determined in the order established by the legislation, with the exception of those arising for recipients (secondary (subsequent) recipients) of foreign gratuitous aid when recalculating in Belarusian rubles the value of assets and liabilities connected with receipt and use of foreign gratuitous assistance expressed in foreign currency, when using the foreign gratuitous assistance according the intended use);

3.21. positive differences arising when accounts receivable or accounts payable are discharged, including in connection with receipt of payment in the sum exceeding the sum of earnings and/or non-realization incomes.

Such incomes are reflected on the date of discharge of accounts receivable or accounts payable;

3.22. incomes in the form of decrease and annulment of deductions to the reserves expenses on formation of which had been recognized in preceding reporting periods in non-realization expenses or in costs taken in account for taxation;

3.23. incomes of an organization under a contract on trust management of property in which it is indicated as a beneficiary.

Such incomes shall be reflected as of the date of their receipt;

3.24. means received gratuitously within the framework of special purpose financing from the republican or local budgets or from budgets of state non-budgetary funds, investment funds formed in accordance with acts of the President of the Republic of Belarus, from the budget of the Union State within the reporting periods following the periods in which expenses covered by such means had been taken in account for taxation.

Such incomes shall be reflected as of the date of their receipt, including offset of counterclaims, discharge of the obligation to a third person etc.;

3.25. incomes of the buyer (ordering customer) in the sum of premiums, bonuses, granted by the seller (executor, contractor) concerning the price (value) indicated in the contract, after the buyer (ordering customer) had met the conditions (including volume of purchases or orders) determined by the contract as mandatory for receipt of such premiums, bonuses.

Such incomes shall be reflected as of the date of their receipt, including offset of counterclaims, discharge of the obligation to a third person etc.;

3.26. incomes from the sale of foreign currency in the sum of a positive difference that arose due to the deviation of the rate of sale of the foreign currency from the official rate established by the National Bank on the date of sale;

3.27. incomes from conversion (exchange) of one kind of foreign currency for another kind of foreign currency as a positive difference between the sum received as a product of the official rate of purchased foreign currency, established by the National Bank on the date of conversion, and its quantity and a sum received as a product of the official rate of realized foreign currency, established by the National Bank on the date of conversion and its quantity;

3.28. sums of the investment deduction (a part thereof)  computed from initial value of fixed assets (parts thereof) used in entrepreneurial activity (value of investments in reconstruction) included into costs taken in account for taxation in accordance with sub-clause 2.2 of clause 2 of Article 170 of this Code, if, earlier than upon expiration of three years (five years – residential premises related to rental housing) from the moment of their acceptance in accounting (increase of the initial value of fixed assets by the value of investments in reconstruction):

alienation takes place;

transfer into lease (except for residential premises related to rental housing), financial lease (leasing), another paid-for or gratuitous use, trust management take place;

they are used in activity on which the payer does not pay the tax on profit in connection with application of special taxation regimes;

compensation (in full or in part) is arrived concerning expenses on acquisition (creation) of fixed assets or value of investments in reconstruction at the expense of means received gratuitously within the framework of special purpose financing from the republican or local budgets or budgets of state non-budgetary funds, from the budget of the Union State, investment funds formed in accordance with acts of the President of the Republic of Belarus.

Such incomes shall be reflected, accordingly, as of the date of alienation, transfer into lease (financial lease (leasing)), another paid-for or gratuitous use, trust management, gratuitous use, receipt of the compensation, and as of the date preceding the date of beginning of the use in the activity on which the payer does not pay the tax on profit in connection with application of special taxation regimes.

Sums of the investment deduction (a part thereof)  computed from initial value of the leased item, received under an contract stipulating the buy-out thereof, included in the composition of costs taken into account for taxation, in accordance with sub-clause 2.2 of clause 2 of Article 170 of this Code, when the leased item is returned to the lessor or the leased item is transferred under a contract of sublease stipulating the buy-out of the subleased item are included in non-realization incomes as of the date of such return or buy-out of the subleased item, respectively.

A part of the investment deduction falling on the part of initial value of an object of fixed assets (value of investments in reconstruction) shall be determined proportionally to the specific weight of that part of the initial value of the object of fixed assets (value of investments in reconstruction) in the total initial value (total value of investments in reconstruction);

3.29. monetary means received by republican unitary enterprises carrying out distribution of gaseous fuel through pipelines and its sale or production, transfer and distribution of electric energy from republican unitary enterprises carrying out the similar activity when distributing means in the order established by the Council of Ministers of the Republic of Belarus within one owner under the conditions of establishing uniforms prices for natural gas or tariffs for electric energy in the Republic of Belarus, differentiated according to groups of consumers.

Such incomes shall be reflected as of the date of their receipt;

3.30. incomes of the payer under the contract of trust management of monetary means and/or contract of trust management of securities, in which he is indicated as the settlor.

Such incomes shall be determined as a sum of profit received under a such contract, computed by the trustee on the basis of accounting data of operations of trust management in the order established by the legislation and shall be reflected as of the date of their receipt;

3.31. incomes of the payer under the contract of trust management of bank-managed fund, in which he is indicated as the settlor.

Such incomes shall be determined as a positive difference between the value of the share of the settlor in the property of the fund as of the date of the buyout (premature buyout) of the participatory certificate (part thereof) by the trustee of the bank management fund and the value of that share of the settlor as of the date of transfer of monetary means and/or securities to the fund and be reflected as of the date of the buyout (premature buyout) of the participatory certificate (part thereof) by the trustee of the bank management fund;

3.32. incomes from the sale to banks of bullions and small bars of precious metals, bullion (investment) coins of precious metals in the sum of a positive difference between the selling price and the acquisition price;

3.33. difference between the sum received (to be received) by the issuer upon placement of housing bonds and the sum paid (to be paid) upon redemption by the issues of housing bonds (including premature buyout).

Such incomes are reflected on the date of redemption (premature buyout) of housing bonds;

3.34. sum of an increase in the value of goods being performed in the established order in retail trade and public catering to the prices for newly received goods;

3.35. sums of the value added tax computed in the order established by the legislation, falling on expenses specified in sub-clause 3.27 of clause 3 of Article 175 of this Code.

Such incomes are reflected in the reporting period for which those sums are reflected in the tax declaration (calculation) for the value added tax;

3.36. sum of the rent to be paid to the natural person – lessor, including individual entrepreneur, being uncleared indebtedness upon expiration of 12 months from the moment of its arising.

Such incomes are reflected in the reporting period on which falls the day following the day on which 12 months from the moment of arising indebtedness on the rent expire;

3.37. incomes of organizations from  geriatric homes and homes for disabled persons, dwelling fund objects, education, healthcare, culture and sport institutions, being on their balance sheet, with the exception of incomes specified in sub-clause 3.15 of this clause. This provision is not applied in relation to incomes received when using the mentioned objects exclusively in entrepreneurial activity;

3.38. sums of accounts payable of a unitary enterprise to the owner of its property, for which the legal person is exempted from the fulfillment of obligations, and previously those sums were included in the costs taken into account for taxation or non-realization expenses.

Such incomes shall be reflected on the date of exemption from fulfillment of obligations;

3.39. sums of taxes, dues (duties), other payments to the republican and local budgets returned as excessively paid, as well as excessively collected which were previously included in the costs on production and realization or non-realization expenses.

Such incomes shall be reflected not later than the date of their receipt;

3.40. monetary means, as well as other types of income (setoff of homogeneous claims, fulfillment of an obligation to a third party, etc.), received on account of sums previously included in expenses taken in account for taxation and/or non-realization expenses, as well as those received on account of sums of profit exempt from taxation with the tax on profit in previous tax periods;

3.41. incomes from changes in the fair value of instruments and hedging items recognized as such in the accounting, including from operations with forward and futures contracts, options and other derivative financial instruments, with the exception of  those specified in sub-clause 3.42 of this clause;

3.42. incomes of legal persons - clients of subjects of the market of non-deliverable over-the-counter financial instruments received in the tax (reporting) period on operations with non-deliverable over-the-counter financial instruments in the form of accrued positive differences in the prices of the underlying assets on completed operations with non-deliverable over-the-counter financial instruments, as well as other sums of means, in relation to which the client has the right to receive them under an agreement on conducting operations with non-deliverable over-the-counter financial instruments;

3.43. other incomes of the payer when carrying out his activity and not connected directly with production and realization of goods (works, services), property rights.

Such incomes shall be reflected not later than the date of their receipt.

4. Non-realization incomes do not include:

4.1. gratuitous means received within the framework of special purpose financing from the republican and local budgets or budgets of state non-budgetary funds, investments funds formed in accordance with acts of the President of the Republic of Belarus, from the budget of the Union State and used according to their intended purpose, with the exception of means specified in sub-clause 3.24 of clause 3 of this Article. In that instance expenses of organizations covered by these means are not taken into account when determining the taxable profit;

4.2. for budgetary organization, social and religious organizations (associations), republican state-public associations, other non-commercial organizations, created in accordance with the legislation:

4.2.1. admission fees, share and membership contributions in the amounts provided for by the statutes and/or constituent contracts;

4.2.2. monetary means received from participants (members) as a forthcoming financing and/or as reimbursement of expenses on acquisition and/or performance (rendering) of works (services) for these participants (with account of the value of goods included into the value of the said works (services), connected with maintenance and operation of immovable property);

4.2.3. goods (works, services), property rights, monetary means gratuitously received, provided that those goods (works, services), property rights, monetary means have been used according to their intended purpose, and in case when the intended purpose has not been determined by the transferring party – to fulfill tasks determined by the statutes and/or constituent contracts of mentioned organizations, associations, and  also when meeting other conditions determined by the legislation;

4.2.4. incomes in the form of interest from safekeeping of monetary means indicated in sub-clauses 4.2.1 – 4.2.3 of this clause on current (settlement) or other bank accounts, and also from placement of those monetary means in deposits.

In that instance, expenses of organizations covered at the expense of the means specified in sub-clauses 4.2.1–4.2.4 of part one of this sub-clause shall not be taken in account when determining the taxable profit;

4.3. means received by the payers within share participation in the building of housing, maintenance of non-production objects and used according to the intended purpose;

4.4. for state associations being non-commercial organizations, created according to the decision of the President of the Republic of Belarus, the Council of Ministers of the Republic of Belarus, and also on their instructions (permission) by republican bodies of state administration or according to the decision of bodies of local government and self-government – sum of means being remitted for their maintenance from the profit (income) remaining after taxation by state and other organizations and individual entrepreneurs, making part of these state associations, unless otherwise established by the President of the Republic of Belarus;

4.5. sums of means received from unitary enterprises the owners of property of which are consumer societies and unions thereof from the profit remaining after taxation for financing the apparatus of management of consumer societies and unions thereof;

4.6. means received by the development funds of free economic zones;

4.7. dividends received by the payers from Belarusian organizations;

4.8. goods (works, services), property rights, monetary means, gratuitously received:

4.8.1. by a successor(s) of an organization upon its reorganization, unless otherwise established by the legislation;

4.8.2. by the Republic of Belarus or its administrative and territorial units represented by state bodies and other legal persons and accepted in accordance with the legislation;

4.8.3. by state organizations upon gratuitous transfer of the property being in the ownership of the Republic of Belarus or its administrative and territorial unit, according to the decisions of the owner or a body (organization) authorized by the owner;

4.8.4. upon gratuitous transfer within one owner according to the decision of the owner or the decision of a body authorized by the owner;

4.8.5. by organizations carrying out activity on producing the produce of crop husbandry, animal husbandry, fish husbandry, and apiculture, provided that they are used by those organizations for carrying out economic activity by those organizations on producing the produce of crop husbandry, animal husbandry, fish husbandry, and apiculture;

4.8.6. as foreign gratuitous assistance or international technical assistance, under the procedure and conditions established by the President of the Republic of Belarus. In that instance provisions of sub-clause 4.2 of this clause are not applied, and expenses covered at the expense of those means shall not be taken in account for determining the taxable profit;

4.9. the value of non-used state property that was in republican and communal ownership, gratuitously received by organizations into the ownership in accordance with the legislation;

4.10. within the validity period of a contract on trust management of property, the property of the trustor transferred to the trustee;

4.11. property belonging to the trustor on the right of ownership, being returned by the trustee upon termination of trust management, and also incomes received by the trustor under a contract on trust management of property on which the taxation has been performed by the trustor in accordance with this Code;

4.12. for venture organizations, Belarus Investment Fund (later on in this Chapter – Belinfund), sums received from innovation organizations in the form of interest for granting of monetary means for financing of venture projects. This provision is applied by venture organizations, Belinfund in the instance if the portion of revenue of an innovation organization from realization of high-technology goods (works, services), referred to this category in accordance with the legislation, property rights to intellectual property objects constitutes not less than 50 percent in the total volume of revenue of such innovation organization.

When the mentioned condition is not met, the tax on profit is to be paid to the budget along with payment of the penalty interest in the amount established by the legislation for the period of groundless application of the benefit till the day of payment of the tax.

For the purposes of this Chapter, the innovation organization means an organization that carries out innovation activity and/or producing high-technology goods (works, services);

4.13. for state operating organizations, sums of expenses made in the course of creation of engineering, transport, social infrastructure objects and their redevelopment, accepted into state ownership, upon gratuitous transfer of these objects by investors (ordering customer, builder) under the procedure established by the President of the Republic of Belarus;

4.14. for state operating organizations the value of goods (works, services) received gratuitously for reconstruction, repair (reimbursement of the value of reconstruction, repair) of objects of the engineering and transport infrastructure held by them on the right of economic management (operative administration);

4.15. value of gratuitously received goods (works, services), property rights, sums of gratuitously received monetary means for erection and/or reconstruction of objects intended to be used for physical culture or sport provided that they are used acceding to the intended purpose;

4.16. value of gratuitously received property rights to results of scientific and scientific and technical activity the data about which are contained in the state register of rights to results of scientific and scientific and technical activity, and also value of gratuitously received material objects related to these results if the gratuitous receipt of property rights to results of scientific and scientific and technical activity is accompanied simultaneously by the transfer of such objects.

The ground for non-inclusion in non-realization incomes of the value of property rights and material objects sub-clause shall be indication in the contracts stipulating the transfer of property rights to results of scientific and scientific and technical activity by their holder to another person or the granting by the right holder to another person of the right to use results of scientific and scientific and technical activity of the data about the number and the date of registration of the rights to results of scientific and scientific and technical activity, description of said rights contained in the state register of rights to results of scientific and scientific and technical activity;

4.17. sums of an increase in the value of fixed assets, intangible assets, income-bearing investments in material assets, equipment to be installed, made in accordance with the legislation, and the sum of restoration of the depreciation of fixed assets, intangible assets, long-term assets intended for realization, and investment immovable property;

4.18. sums of expenses to be reimbursed to the lender upon transfer of the property into gratuitous use, related to the transfer in such use and arising in connection with acquisition of communal and/or other works (services) on maintenance and/or operation of that property, and also of expenses the duty on reimbursement of which is provided by acts of the President of the Republic of Belarus (with the exception of sums of expenses which refer to (works, services) performed (rendered) by the lender by own forces). In that instance expenses of organizations covered by these means are not taken into account when determining the taxable profit;

4.19. means being received by the payer and/or his creditors from persons bearing subsidiary liability on obligations of that payer under the procedure of bringing those persons to subsidiary liability in accordance with the legislation;

4.20. funds received by the payer, recognized in accordance with the court sentence that entered into legal force as the income of an natural person;

4.21. for a scientific organization - contractor, determined under an contract with the state ordering customer as the holder of property rights to the results of research, development and experimental-technological works, registered in the order determined by the President of the Republic of Belarus, the value of assessing such rights;

4.22. sums of indebtedness on taxes, dues (duties), fines, penalty interest toward the republican and local budgets, state non-budgetary funds, from the discharge of which the payer is exempted in full or in part in accordance with the legislation;

4.23.  sums of rate differences determined in the order established by the legislation, which arise upon recalculation of a sum expressed in foreign currency and/or Belarusian rubles, equivalent to a certain sum in foreign currency, value of assets and liabilities being determined in the order established by legislation, which arose in connection with:

carrying out costs not being taken into account for taxation according to Article 173 of this Code and other provisions of the legislation;

receipt of incomes not being taken into account for taxation according to the legislation;

4.24. value of goods received for repair (replacement) under the warranty obligations.

Article 175. Non-realization expenses.

1. Non-realization expenses shall be recognized expenses, losses, damages, made by the payer for carrying out its activities and not connected directly with production and realization of goods (works, services), property rights.

2. Non-realization expenses are determined on the basis of documents of accounting (if necessary by way of making calculating corrections to the data of the accounting within the framework of conducting the tax accounting) having regard to provisions of Article 172 of this Code.

The date of reflection of non-realization expenses is determined by the payer as of the date of recognition of the expenses in the accounting, and in relation to expenses on which the date of their reflection is indicated in clause 3 of this Article – as of the date indicated in clause 3 of this Article.

3. Non-realization expenses include:

3.1. sums of penalty fees (fines, penalty interest), sums due to be paid as a result of application of other measures of liability for breaching of contract obligations (with the exceptions of obligations stipulated by infringement contracts concluded with the Republic of Belarus).

This provision is not applied in relation to incomes specified in sub-clause 1.6 of clause 1 of Article 173 of this Code.

Such  expenses shall be reflected on the date determined by the payer (with the exception of banks) in accordance with his accounting policy, but not later than the date of their acceptance in the accounting;

3.2. court expenses;

3.3. expenses on holding meetings of participants (shareholders) of an organization, in particular expenses connected with lease of capital constructions (buildings, structures), parts thereof, preparation and sending of documents necessary for holding meetings, other expenses directly connected with holding such meetings;

3.4. sums of taxes, dues and other mandatory payments, withheld and/or paid to the budget of non-budgetary funds of foreign states in accordance with the legislation of these states (with the exception of taxes, dues in relation to which elimination of double taxation is provided in accordance with the legislation of the Republic of Belarus and/or treaties of the Republic of Belarus), and also taxes, dues included by the Belarusian organization in the revenue (income) according to the legislation of the foreign state when if fulfilled obligations of the payer of the foreign state in relation to connection with carrying out entrepreneurial activity in the territory of the foreign state), upon availability of a statement verified by a tax body (other competent authority of the state the functions of which include levying of taxes) or another document confirming the payment (withholding) of taxes, dues and other mandatory payments in the foreign state.

Such sums of taxes, dues and other mandatory payments are reflected on the date of payment (remittance) thereof in the foreign state.

If the payer does not have a certificate from the tax body of the foreign state (another competent service whose functions include the collection of taxes), a copy of the tax declaration with the submission of confirmation of its acceptance by such body together with a copy of the payment instruction confirming its actual payment to the budget of the foreign statemay be used as other documents to confirm the sum of taxes, dues and other obligatory payments paid to the budget;

3.5. sums of the value added tax not accepted for deduction upon writing off accounts receivable into non-realization incomes for the payers which till January 1, 2013 determined the revenue from realization of goods (works, services), property rights according to the received payments for shipped goods (performed works, rendered services), property rights.

Such expenses are reflected on the date of inclusion of sums of accounts receivable into non-realization-incomes.

3.6. sums of the value added tax calculated in the absence of documents that substantiate:

3.6.1. application of the rate of the value added tax in the amount of zero (0) percent upon expiry of one hundred eighty calendar days from the date of:

shipment of goods (including those produced from give-and-take raw materials and materials) to the states – members of the Eurasian Economic Union. Such expenses are reflected on the one hundred eighty-first day from the indicated date;

formalizing of the declaration for the goods with the notices of the customs body about the release of the goods in accordance with the declared customs procedure (for payers that carry out the declaring of goods to the customs bodies in the form of an electronic document – from the date of entry into the information system of customs bodies of the data about the release of goods in accordance with the declared customs procedure) in the event of subsequent arrival of such documents. Such expenses are reflected on the one hundred eighty-first day from the indicated date;

holding the public trading on realization of fur material being exported from the Republic of Belarus outside the Russian Federation. Such expenses are reflected on the one hundred eighty-first day from the indicated date;

3.6.2. exemption from the value added tax upon the expiry of one hundred eighty calendar days from the date of shipment to the lessor of goods indicated in sub-clause 1.44 of clause 1 of Article 118 of this Code, in the event of subsequent arrival of such documents.

Such expenses are reflected on the one hundred eighty-first day from the indicated date;

3.7. sums of excises computed in the absence of documents that substantiate the application of exemption from excises upon the expiry of one hundred eighty calendar days from the date of:

shipment of excisable goods to the states – members of the Eurasian Economic Union. Such expenses are reflected on the one hundred eighty-first day from the indicated date;

formalizing of the declaration for excisable goods with the notices of the customs body about the release of excisable goods in accordance with the declared customs procedure (for payers that carry out the declaring of excisable goods to the customs bodies in the form of an electronic document – from the date of entry into the information system of customs bodies of the data about the release of excisable goods in accordance with the declared customs procedure) in the event of subsequent arrival of these documents. Such expenses are reflected on the one hundred eighty-first day from the indicated date;

3.8. expenses on maintenance of fixed assets (objects) being in preservation status performed in accordance with the legislation;

3.9. expenses on maintenance of mobilization capacities and civil defence objects, and also expenses on conducting measures of civil defence;

3.10. expenses on annulled production orders, and also on production objects than did not produce products;

3.11. non-reimbursable losses from suspension of production, idleness due to inner and exterior grounds, if guilty persons are not established or court refused to levy on them.

Such expenses are reflected on the date of drawing up documents confirming that guilty persons have not been established or court has refused to levy on them;

3.12. damages from operations with tare;

3.13. expenses on reimbursement of a damage in kind, losses (including lost profit), with the exception of expenses specified in sub-clause 3.1 of this clause, if guilty persons are not established or court refused to levy on them.

Such expenses are reflected on the date of drawing up documents confirming that guilty persons have not been established or court has refused to levy on them;

3.14. non-reimbursable sums of losses (damages) from shortage and/or decay of the property, including those occurred in excess of established limits of normal wastage, and also of the norms of wastage (breakage), losses incurred, if guilty persons were not established or the court refused to levy the given sums on them, with the exception of cases when the court refused the levying on grounds dependent on the organization.

Such expenses shall be reflected on the date of drawing up documents by law enforcement bodies and/or court, confirming that guilty persons have not been established or the court has refused to levy on them;

3.15. expenses, non reimbursable by other persons, on participation in trading (tenders) in the form of a competitive bidding or auction, which have not resulted in conclusion of a contract, and also in the instances when trading (tenders) has been recognized as having not taken place or invalid.

Such expenses are reflected on the date of conducting trading (tenders), upon results of which contracts have not been concluded, and also on the date of recognizing trading (tenders) as not having taken place or invalid.

3.16.  expenses on liquidation, writing off of fixed assets, intangible assets being retired from operation (including sums of depreciation not calculated in full in accordance with established period of effective use, expenses on disassembly, dismantling, removal of disassembled or dismantled property);

3.17. expenses on liquidation and/or writing off of the property made under the procedure established by the legislation, writing off of other property (including its value) not specified in sub-clause 3.16 of this clause, including objects of unfinished construction, property the assembly of which is not finished;

3.18. non-reimbursable losses and damages in connection with extraordinary circumstances (fire, breakdown, natural disaster, road accident when guilty persons have not been established or court has refused to levy on them) including expenses connected with prevention or liquidation of consequences of such extraordinary circumstances;

3.19. expenses on putting of property into lease (transfer into financial lease (leasing)), other for-compensation or gratuitous use of the property.

Such expenses are reflected on the date of reflection of respective incomes from putting of property into lease (transfer into financial lease (leasing)), other for-compensation or gratuitous use, taken into account under the procedure determined by sub-clause 3.18 of clause 3 of Article 174 of this Code.

Composition of expenses on putting of property into lease (transfer into financial lease (leasing)), other for-compensation or gratuitous use is determined with regard to provisions of Articles 169 -171 of this Code;

3.20. negative difference arising between the value of the property transferred (received) into loan and the value of the property received (transferred) upon discharging this loan. Such expenses shall be reflected on the date of accepting (writing off) the property in accounting of the payer;

3.21. negative difference between the balance-sheet value of the assets transferred to the special financial organization within the framework of the securitization operation and the sum of means received from the special financial organization under contracts of cession of rights (claims);

3.22. damages from writing off of accounts receivable on which there expired:

limitation period;

prescriptive time limit for presenting execution documents for execution in the event of return of the execution document to the recoverer, on which the recovery has not been performed or performed only in part in connection with the fact that the debtor has not means on accounts in banks or another property, upon availability of a document about impossibility to recover the indebtedness in accordance with the legislation.

Such expenses shall be reflected on the date following the day of expiry of such time limits;

3.23. damages from the writing off accounts receivable being (considered) uncollectible.

Such expenses shall be reflected as of the date of exclusion of the debtor from the Unified State Register of Legal Persons and Individual Entrepreneurs (foreign organization and foreign individual entrepreneur – from the trade register or another similar system of record and identification of legal persons and individual entrepreneurs of the country of their establishment) and/or of the death of the natural person not being individual entrepreneur of declaration of the natural person not being individual entrepreneur as deceased, unless otherwise established by this sub-clause.

Losses from writing off of accounts receivable in connection with the death (declaring as deceased) of the debtor by the bank shall be reflected on the date of recognition of such expense in the accounting in accordance with the legislation.

Provisions of this sub-clause are not applied in the event of exclusion of the debtor from the Unified State Register of Legal Persons and Individual Entrepreneurs (foreign organization and foreign individual entrepreneur – from the trade register or another similar system of record and identification of legal persons and individual entrepreneurs of the country of their establishment) in connection with reorganization by means of affiliating;

3.24. sums of accounts receivable upon liquidation of the legal person.

Such expenses shall be reflected in the reporting period on which falls:

the earliest date from the following dates: the date of submission of the tax declaration (calculation) or the last day of the time limit for submitting the tax declaration established by Article 44 of this Code;

the date of drawing up the act of inspection in the course of which circumstances being a ground for liquidation of a legal person according to the decision of the registering body have been detected – upon liquidation of a legal person according to a decision of the registering body under the procedure established by the President of the Republic of Belarus;

3.25.  sums of a decrease of accounts receivable (increase of accounts payable) on penalty fees (fines, penalty interest) and other measures of liability for breaching obligations upon conclusion of the amicable agreement, agreement on conciliation, mediation agreement, international mediation agreement, provided that the previously specified sums were included in non-realization incomes.

Such expenses shall be reflected in the reporting period in which the amicable agreement or agreement on conciliation enters into force, or the mediation agreement, international mediation agreement is concluded;

3.26. exchange rate differences arising upon recalculation of the value of assets and liabilities expressed in foreign currency and/or in Belarusian rubles in a sum equivalent to a certain sum in foreign currency, determined in the order established by the legislation, with the exception of those specified in sub-clause 1.18 of clause 1 of Article 173 of this Code and arising for recipients of foreign gratuitous assistance when recalculating in Belarusian rubles the value of assets and liabilities connected with receipt and use of foreign gratuitous assistance expressed in foreign currency, when using the foreign gratuitous assistance according the intended use;

3.27. negative differences arising when accounts receivable or accounts payable are discharged, including in connection with receipt of payment in the sum less than the sum of revenue (non-realization incomes).

Such expenses are reflected on the date of discharge of accounts receivable or accounts payable;

3.28. expenses of payers on maintenance and operations of geriatric homes and homes for disabled persons, dwelling fund objects, education, healthcare, culture and sport institutions, being on their balance sheet, with the exception of expenses specified in sub-clause 3.19 of this clause.

In that instance expenses are accounted under the procedure established by this Chapter. This provision is also applied in relation to expenses for these purposes under share participation of organizations in maintenance and operation of the said objects and is not applied when they are used exclusively for entrepreneurial activity;

3.29. sums of premiums, bonuses, granted when the buyer (ordering customer) meets the conditions (including volume of purchases or orders) determined by the contract as mandatory for granting of such premiums, bonuses.

Such expenses shall be reflected as of the date of their remittance, including offset of counterclaims, discharge of the obligation to a third person etc.;

3.30. losses from the sale of foreign currency in the sum of a negative difference that arose due to the deviation of the rate of sale of the foreign currency from the official rate established by the National Bank on the date of sale;

3.31. loss from conversion (exchange) of one kind of foreign currency for another kind of foreign currency as a negative difference between the sum received as a product of the official rate of purchased foreign currency, established by the National Bank on the date of conversion, and its quantity and a sum received as a product of the official rate of realized foreign currency, established by the National Bank on the date of conversion and its quantity;

3.32. value of works (services) executed (rendered) according to results of control placement of orders for execution of works (rendering of services);

3.33. monetary means remitted by republican unitary enterprises carrying out distribution of gaseous fuel through pipelines and its sale or production, transfer and distribution of electric energy to republican unitary enterprises carrying out the similar activity when distributing means in the order established by the Council of Ministers of the Republic of Belarus within one owner under the conditions of establishing uniforms prices for natural gas or tariffs for electric energy in the Republic of Belarus, differentiated according to groups of consumers.

Such expenses shall be reflected as of the date of performance;

3.34. compulsory insurance fees to the state non-budgetary fund of social protection of the population of the Republic of Belarus and for compulsory insurance against accidents in the workplace and occupational diseases, computed in the order established by the legislation, with the exception of those specified in sub-clause 2.5 of clause 2 of Article 170 of this Code or being included in the initial value of depreciable assets;

3.35.  deduction to reserves for covering potential losses on micro loans, to be covered by reserves in accordance with the legislation;

3.36. expenses of the payer under the contract of trust management of monetary means and/or contract of trust management of securities, in which he is indicated as the settlor.

Such expenses shall be determined as a sum of loss received under a such contract calculated by the trustee on the basis of accounting data of operations of trust management in the order established by the legislation and shall be reflected as of the date of return of monetary means and/or securities from the trust management. For the purposes of this Chapter, such expenses shall be taken into account also by settlors using special taxation regimes;

3.37. sums of remuneration of the trustee under the contract of trust management of monetary means and/or contract of trust management of securities in the instance when the given remuneration is not retained by the trustee from the means of the settlor being in trust management, but is pay the settlor himself. For the purposes of this Chapter, such expenses shall be taken into account also by settlors using special taxation regimes;

3.38. expenses of the payer under the contract of trust management of bank-managed fund, in which he is indicated as the settlor.

Such expenses shall be determined as a negative difference between the value of the share of the settlor in the property of the fund as of the date of the buyout (premature buyout) of the participatory certificate (part thereof) by the trustee of the bank management fund and the value of that share of the settlor as of the date of transfer of monetary means and/or securities to the fund.

Such expenses shall be reflected on the date of the buyout (premature buyout) of the participatory certificate (part thereof) by the trustee of the bank management fund. For the purposes of this Chapter, such expenses shall be taken into account also by settlors using special taxation regimes;

3.39. sums of monetary means retained in favour of the bank-managed fund upon premature buying out of the participatory certificate (its part) by the trustee of the bank-managed fund.

Such expenses shall be reflected on the date of the premature buyout of the participatory certificate (part thereof) by the trustee of the bank management fund. For the purposes of this Chapter, such expenses shall be taken into account also by settlors using special taxation regimes;

3.40. costs made by the ordering customer, builder, interestholder upon erection (reimbursement of the value of erection) of objects finished by construction, but not registered in the established order as objects of immovable property, objects of engineering, transport and social  infrastructure, and redevelopment thereof, gratuitously transferred in the ownership of the state;

3.41. costs incurred by the ordering customer, builder, interestholder constituting the value of goods (works, services) gratuitously transferred to state operating organizations during the reconstruction, repair of engineering and transport infrastructure facilities, which they have on the right of economic management (operative administration), in connection with the fulfillment of technical conditions for engineering and technical support of the facility, obtained in accordance with the established order for purposes of the construction of the facility;

3.42. sums of the value added tax computed in the order established by the legislation from incomes specified in Article 174 of this Code.

Such expenses are reflected in the reporting period for which those sums are reflected in the tax declaration (calculation) for the value added tax;

3.43. sums of a decrease in the value of goods being performed in the established order in retail trade and public catering to the prices for newly received goods, and also sums of the reduction of prices for goods nearing the expiration date and/or shelf life expiration, having little demand among the population, made at the expense of a decrease of the purchase value (in the instances when the amount of trade increase is insufficient);

3.44. losses from the sale to banks of bullions and small bars of precious metals, bullion (investment) coins of precious metals in the sum of a negative difference between the selling price and the acquisition price. This provision is applied also by payers of the tax under the simplified system, of the single tax for producers of agricultural produce, when determining the similarity the tax base for the tax on profit;

3.45. sum of the lease payment actually paid (set off through conducting an offset of counterclaims of the same kind) in the favour of the natural person – lessor, including an individual entrepreneur, and referred earlier to non-realization incomes in accordance with sub-clause 3.36 of clause 3 of Article 174 of this Code.

Such expenses are reflected in the reporting period on which the day of payment of monetary means in favour of the natural person – lessor, including individual entrepreneur, falls, and in the instance when the indebtedness before such natural person is discharged through an offset of mutual claims – the date of the setoff of counterclaims of the same kind;

3.46. difference between the sum received (to be received) by the issuer upon placement of housing bonds and the sum paid (to be paid) upon redemption by the issues of housing bonds (including premature buyout).

Such expenses are reflected on the date of redemption (premature buyout) of housing bonds;

3.47. sums of customs duties, taxes, special, anti-dumping, countervailing duties, penalty interest paid by customs representatives in the performance of a several and joint duty in accordance with the legislation.

Such expenses shall be reflected not earlier than the date of their actual performance (arising);

3.48. reserves for doubtful debts, created according to results of an inventory of accounts receivable performed on the last day of the reporting (tax) period, which was not repaid within the established time limit, which arose in connection with the realization of goods (work, services), property rights, intangible assets, and also on operations on putting of property into lease (financial lease (leasing)), other for-compensation or gratuitous use of the property, but not more than five (5) percent of revenue from the realization of goods (work, services), property rights, intangible assets, and sums of incomes specified in sub-clause 3.18 of clause 3 of Article 174 of this Code, with account of the value added tax, and computed as follows:

on doubtful indebtedness with a maturity of more than ninety calendar days - the sum of the created reserve shall include the full sum of the indebtedness detected on the basis of the inventory;

on doubtful indebtedness with a maturity of forty-five till ninety calendar days (inclusively) – the sum of the created reserve shall include the fifty (50) percent of the indebtedness detected on the basis of the inventory;

on doubtful indebtedness with a maturity of less than forty-five calendar days  – the sum of the indebtedness detected on the basis of the inventory shall not increase the sum of the reserve being created;

3.49. expenses from changes in the fair value of instruments and hedging items recognized as such in the accounting, including expenses on operations with forward and futures contracts, options and other derivative financial instruments, and also the commission fee paid to the organizer of the trading, with the exception of  those specified in sub-clause 3.50 of this clause;

3.50. expenses of legal persons - clients of subjects of the market of non-deliverable over-the-counter financial instruments incurred in the tax (reporting) period on operations with non-deliverable over-the-counter financial instruments in the form of accrued negative differences in the prices of the underlying assets on completed operations with non-deliverable over-the-counter financial instruments, as well as other sums of means, in relation to which the client is obliged to pay them under an agreement on conducting operations with non-deliverable over-the-counter financial instruments. In case of exceeding the non-realization expenses of legal persons - clients of subjects of the market of non-deliverable over-the-counter financial instruments over non-realization incomes on such operations in the tax (reporting) period, the sum of such excess is not taken into account when computing the gross profit;

3.51. sums of damages, shortages and/or wastage of the property, incurred losses, reimbursement on which is taken into account in non-realization incomes in accordance with sub-clauses 3.5 and 3.6 of clause 3 of Article 174 of this Code, and also return (reimbursement) on account of previously accounted incomes in accordance with sub-clause 3.7 of clause 3 of Article 174 of this Code in the amount of actual expenses, but not more than the sum of such accounted reimbursement and/or return.

In case of seizure of land plots in accordance with the established order, actual expenses should be understood as sums determined in accordance with the legislation.

This provision is not applied in relation to incomes specified in sub-clause 1.6 of clause 1 of Article 173 of this Code.

Such expenses are reflected as of the date of receipt of the reimbursement and/or return of specified expenses (losses), but not earlier than its actual carrying out;

3.511. sums of the value added tax specified in sub-clause 24.15 of clause 24 of Article 133 of this Code do not decrease the tax base;

3.52. other expenses, losses, damages of the payer when carrying out his activity and not connected directly with production and realization of goods (works, services), property rights.

Such expenses shall be reflected not earlier than the date of their actual performance (arising).

Article 176. Specific features of determining gross profit by banks

1. Profit (loss) from the activities of banks (gross profit) is defined as a positive (negative) difference between the sums of income and expenses of banks, having regard to specific features established by this Article.

2. When determining the gross profit of a bank, incomes and expenses on operations between affiliates that fulfill tax obligations of that  bank in the established order shall be taken into account, as well as incomes and expenses from activities outside the Republic of Belarus, including activities for which the bank is registered as a tax payer of a foreing state.

Expenses of banks that refer to a reporting period, confirmed by primary accounting documents which arrived upon the expiry of that period, shall be reflected in the reporting period in which the primary accounting documents arrived, with the exception of those that arrived after the expiry of the tax period. Expenses of banks that refer to a tax period, confirmed by primary accounting documents which arrived upon the expiry of the tax period, shall be reflected in the tax period to which they are referred.

The gross profit shall be determined by the affiliate of a bank that fulfill in the established order the tax obligations of that bank, shall be determined in accordance with this Article from activities of those affiliates.

3. Incomes and expenses of the bank shall be taken into account on the date when they are recognized in the accounting in accordance with the posting principle in the order established by the National Bank, having regard to the provisions of this Article.

4. Incomes and expenses of a bank  shall be determined, unless otherwise established by this Code, based on the prices of transactions being corrected in the instances established by Chapter 11 of this Code.

5. The gross profit of a bank shall be determined taking having regard  to specifics features established by clauses 6–10 of Article 167, clause 3 and 4 of Article 168, Articles 178 and 179 of this Code.

6. In the cases specified in clause 13 of Article 168 of this Code, the correction of the bank's incomes and/or the corresponding expenses, to be accounted for taxation, shall be is made in the order determined by the mentioned clause in respect of revenue and/or costs on production and realization.

7. For the purposes of this Article, incomes of banks include incomes related in accordance with normative legal acts of the National Bank to interest incomes, commission incomes, other bank incomes, operating incomes, incomes from reduction of reserves, revenue on previously written off debts.

8. For the purposes of taxation, sums of incomes from reduction of reserves being created in the order established by the National Bank shall be taken into account as incomes of banks. Such reserves include:

special reserve to cover possible losses on assets susceptible for credit risk;

special reserve for covering potential losses on operations not reflected in the balance sheet;

reserve on posted and not received incomes.

9. Non-realization incomes of a bank include incomes related to the reduction of reserves, as well as incomes specified in Article 174 of this Code, with the exception of sub-clauses 3.4, 3.26, 3.27, 3.32 and 3.42 of clause 3 of this Article, which are taken into account when determining the gross profit of the bank in the order established by the mentioned Article.

10. For the purposes of this Article, bank expenses include expenses related in accordance with the regulatory legal acts of the National Bank to interest expenses, commission expenses, other bank expenses, operating expenses, expenses on deductions to reserves, debts written off from the balance sheet, as well as an investment deduction applied in the order established by sub-clause 2.2 of clause 2 of Article 170 of this Code.

11. For the purposes of taxation, sums of expenses on deductions to reserves being created in the order established by the National Bank of the Republic of Belarus shall be taken into account as expenses of banks. Such reserves include:

special reserve to cover possible losses on assets susceptible for credit risk;

special reserve for covering potential losses on operations not reflected in the balance sheet;

reserve on posted and not received incomes.

12. Expenses of a bank specified in Articles 169–173 of this Code shall be taken into account when determinin the gross profit of the bank in the order established by the mentioned Articles.

13. Non-realization expenses of a bank include sums of deductions to reserves being created in the order established by the National Bank, as well as expenses specified in Article 175 of this Code, with the exception of sub-clauses 3.30, 3.31, 3.44 and 3.50 of clause 3 of this Article, which are taken into account when determining the gross profit of the bank in the order established by the mentioned Article.

Article 177. Specific features of determining gross profit by insurance organizations

1. Gross profit shall be determined by insurance organizations having regard to specific features set forth in this Article.

2. Incomes of insurance organizations from realization of goods (works, services), property rights include:

2.1. insurance fees (insurance premiums) under insurance (co-insurance, re-insurance) contracts, decreased by sums of return of insurance fees (insurance premiums) under insurance (co-insurance, re-insurance) contracts in the cases provided by the legislation and/or conditions of such contracts. In that instance insurance fees (insurance premiums) under co-insurance contracts are included into incomes of the insurer (co-insurer) only in the amount of his share of insurance premium established in the co-insurance contract;

2.2. sums of downward changes of insurance reserves (with account of changes of a share of reinsurers in insurance reserves);

2.3. commission fees on re-insurance contracts and fees from profit paid by re-insurers to the re-insured as bonus for an opportunity to participate in the re-insurance contract and for cautious case administration;

2.4. remunerations to co-insurers under co-insurance contracts;

2.5. sums of reimbursement by reinsurers of a share of insurance payments on risks transferred into re-insurance, and also on risks transferred by reinsurers into further (subsequent) reinsurance;

2.6. sums of interest on depot of premiums on risks accepted into reinsurance;

2.7. incomes from realization of a right of the insured (beneficiary) to claim persons liable for damages reimbursed as a result of insurance, assigned to the insurer in accordance with the legislation.

Such incomes are reflected on the date of their receipt irrespective of the mode of repayment (including payment of an indebtedness toward third persons, offset of counterclaims, and other methods);

2.8. sums of sanctions for non-fulfilment (undue fulfilment) of conditions of insurance contracts, paid by a debtor voluntarily or according to a court decision;

2.9. remunerations received by an insurer for activity on insurance risk and damage assessment; on examination and assessment of movable and immovable property connected with insurance thereof and issuance of reports on the condition thereof; on organization of rendering engineering, medical, and financial services to another insurer or insured (or an insured person, victim, as well as another person claiming the receipt of an insurance payment) with a view of fulfilling insurance contracts concluded by those persons; on rendering services to another insurance organization for ascertaining reasons and nature of damages upon the occurrence of an insured accident;

2.10. incomes from placement of insurance reserves and other means;

2.11. other incomes.

3. Insurance reserves, the balance of funds of precautionary (preventive) measures, being transferred by one insurance organization to another simultaneously with a transfer of obligation under voluntary insurance contracts are not taken into account when incomes of an insurance organization that accepts such obligation are being determined.

4. For insurance organizations, the costs taken into account for taxation also include:

4.1. sums of upward changes of insurance reserves (with account of changes of the share of reinsurers in insurance reserves);

4.2. outpayments of insurance coverage and insurance indemnity under insurance, co-insurance, re-insurance contracts, decreased by sums of return of paid insurance indemnity and insurance coverage under insurance, co-insurance, re-insurance contracts. In that instance outpayments of insurance coverage and insurance indemnity under  co-insurance contracts are included into costs of an insurer (co-insurer) only in the amount of its share established by the co-insurance contract;

4.3. sums of insurance fees (insurance premiums) on risks transferred into reinsurance, decreased by sums of return of insurance fees (insurance premiums) under reinsurance contracts in the event of their premature termination;

4.4. commission fees under reinsurance contracts and fees from profit paid by reinsurers to the re-insured as bonus for an opportunity to participate in the re-insurance contract and for cautious case administration, and also reimbursement to the reinsurer of costs related to rendering services under reinsurance contracts;

4.5. sums of interest on depot of premiums on risks transferred into reinsurance;

4.6. remunerations to co-insurers under co-insurance contracts and reimbursement to the co-insurer of costs related to rendering services under co-insurance contracts;

4.7. sums of deductions to funds of precautionary (preventive) measures and guarantee funds, including guarantee funds of the Belarusian Transport Insurance Bureau, under the procedure and in amounts established by the legislation;

4.8. sums of reimbursement of a share of insurance payment on risks accepted in reinsurance;

4.9. expenses connected with placement of insurance reserves;

4.10. other expenses on case administration, including:

payment to insurance agents and insurance brokers of remunerations for rendered services in the amount established by the Ministry of Finance;

remuneration to insurance agents of expenses on travel related to business trip by a public transport, with the exception of taxi, by special routes and by departmental transport;

payment of services of organizations for their fulfilling of written instructions of workers concerning the remittance of insurance fees from the salary due to them by way of cashless settlements;

payment of services of competent bodies and organizations on issuance of documents necessary for payment of insurance coverage and insurance indemnity, and also services of organizations and individual entrepreneurs engaged for determining the actual value (insured value) of property, for assessment of insurance risk when concluding an insurance contract, amount of damages from the insured accident and settlement of the issues of insurance payments as experts, surveyors, average commissioners;

payment for collection, carriage of cash monetary means, payment instructions, precious metals and precious stones and other valuables;

expenses on fabrication of pre-printed forms of insurance policies (statements, certificates).

Article 178. Specific features of determining gross profit by some categories of payers

1. Gross profit of budgetary organizations is determined as sum of profit from realization goods (works, services), property rights, received from carrying out income-bearing activity, and non-realization incomes decreased by the sum of non-realization expenses. revenue from realization of goods (works, services), property rights, intangible assets shall be determined in accordance with the norms of Article 168 of this Code.

When determining gross profit in accordance with part one of this clause, costs and non-realization expenses related to income-generating activities shall be taken into account, having regard to the restrictions established by Article 173 of this Code.

2. Gross profit of social and religious organizations (associations), republican state-public associations, other non-commercial organizations is determined as sum of profit from realization goods (works, services), property rights, and non-realization incomes decreased by the sum of non-realization expenses.

In case of failure to carry out production and realization of goods (works, services), property rights, organizations specified in part one of this clause shall include in non-operating expenses as of the date of their recognition in the accounting the following expenses incurred at the expense of means included in non-realization incomes:

expenses on on acquisition (including through creation) of objects of fixed assets and intangible assets being in operation, by means of posting the depreciation in the order established by the legislation. Fixed assets being in shutdown (including in connection with conducting a repair) for a duration of up to three months, reserve are equated to fixed assets being in operation;

other expenses having regard to restrictions established by Articles 171 and 173 of this Code.

3. When determining gross profit of a simple partnership, contributions of participants of the simple partnership to this partnership are not taken into account.

Exemption from taxation with the tax on profit is not applied for taxation of the profit of a simple partnership.

When determining gross profit of participants of a simple partnership (with the exception of  contributions in the form of professional and other knowledge, skills and abilities, as well as business reputation and business connections), incomes received by those participants upon return of their contributions to that partnership, and also upon distribution of profit of the simple partnership remaining after taxation, are not taken into account.

Damages of a simple partnership are not taken into account when determining gross profit of their participants.

A positive difference between the assessed value of the property being transferred by a participant of a simple partnership as a non-monetary contribution to this partnership and the residual value of this property shall be taken into account when gross profit of the participant that transfers this property is determined.

A negative difference between the assessed value of the property being transferred by a participant of a simple partnership as a non-monetary contribution to this partnership and the residual value of this property is not taken into account when gross profit of the participant that transfers this property is determined.

A participant of a simple partnership recognized the payer in relation to the profit of this partnership conducts separate accounting of the revenue from realization of goods (works, services), property rights and non-realization incomes, and also of costs related to activities of this partnership. Sums of revenue from realization of the goods (works, services), property rights and incomes from non-realization operations, and also of costs related to activities of this partnership, are not taken into account for this participant when determining gross profit on which he is recognized an independent payer.

4. Gross profit shall be determined in the form of an excess of incomes actually received in the course of a tax period over expenses actually incurred in the course of a tax period:

by education institutions being budgetary organizations;

by the Department of Protection of the Ministry of Internal Affairs and its subdivisions, and also by organizations under its jurisdiction – in the part of rendering protection services (works) to organizations not being budgetary organizations.

Accounting of expenses by the payers specified in indent two of part one of this clause is carried out in accordance with expenditure side of the estimates of profit and loss of non-budgetary means of budgetary organizations, drawn up and approved under the procedure established by the legislation, having regard to restrictions established by Article 173 of this Code.

Accounting of expenses by the payers specified in indent three of part one of this clause is carried out according to the list of expenses of bodies of internal affairs in accordance with the budget classification of the Republic of Belarus with the estimate of expenses, including deductions for maintenance of the apparatus of the Department of Protection of the Ministry of Internal Affairs and its regional (Minsk city) directorates.

5. Determining of gross profit in connection with fulfillment of a contract of trust management of property is made by the trustor according to provision established by this Chapter having regard to the following specific features:

revenue and non-realization incomes, occurred in relation to execution by the trustee of a contract of trust management of property constitute revenue and non-realization incomes of the trustor, including when there is a beneficiary;

costs (expenses) related to fulfillment of a contract of trust management of property, including calculated value added tax, property depreciation and also remuneration of the trustee, are recognized costs (expenses) of the trustor;

the trustee determines monthly revenue, non-realization incomes, costs (expenses) occurred in relation to execution by the trustee of a contract of trust management of property and presents to the trustor the data about them with copies of documents (contracts, primary accounting documents and other documents) certified by the trustee for their accounting by the trustor when determining gross profit. In that instance determining of the revenue and non-realization incomes and costs (expenses) by the trustee is made based on the accounting policy of the trustor. The trustee is entitled not to apply norms of this indent in the event when incomes (profit) of the trustors are not recognized a taxation object for the tax on profit according to the effective legislation.

Specific features of determining gross profit established by this clause do not cover contracts of trust management of monetary means,  contracts of trust management of securities and contract of trust management of bank-managed funds.

6. The trustee under the contract of trust management of monetary means and/or  contract of trust management of securities shall determine non-realization incomes and non-realization expenses of the trustor, generated in connection with his fulfilment of the contract  of trust management of monetary means and/or contract of trust management of securities, participating in formation of the gross profit of the trustor, as of the date of ending of the contract  of trust management of monetary means and/or contract of trust management of securities, and presents the data about them to the trustor for their accounting by the trustor when determining gross profit.

7. The trustee of bank-managed fund shall determine non-realization incomes and non-realization expenses of the trustor, generated in connection with his fulfilment of the contract  of trust management of bank-managed fund,  participating in formation of the gross profit of the trustor, as of the date of the buyout (premature buyout) of the participatory certificate (part thereof), and presents the data about them to the trustor for their accounting by the trustor when determining gross profit.

8. Upon transfer by the trustee of securities acquired under a contract of trust management to the trustor (beneficiary), this trustee is obliged to issue a written confirmation about the transfer of such securities to the  trustor (beneficiary) with indication of the date of retirement of securities, number thereof and balance-sheet value determined on the date of retirement.

Such written confirmation constitutes the document confirming expenses actually made and confirmed by documents, incurred by the trustor (beneficiary) for acquisition of such securities.

Article 179. Specific features of determining gross profit from operations with securities

1. When determining the gross profit from operations with securities by organizations other than banks (with the exception of the placement of emissive securities and issuance of bills of exchange (promissory notes)):

1.1. incomes are determined based on:

price of realization or redemption of securities - in the reporting period in which the securities were realized or redeemed;

monetary means received from the issuer or the obliged person on account of interest (discount) repayment during the period of holding the security - for debt financial instruments accounted at fair value;

incomes from valuation of financial instruments at  depreciated value (with the exception of the sum of writeback of depreciation);

1.2. costs are determined based on:

expenses from valuation of financial instruments at  depreciated value (with the exception of the sum of depreciation);

depreciated (without account of the loss of value) value of the securities at the date of their realization or redemption - for securities accounted at the depreciated value;

acquisition prices - for securities accounted at fair value - in the reporting period in which the securities were realized or redeemed;

direct costs associated with the acquisition of securities recorded at fair value, including the amount of value added tax attributable to them, in the reporting period in which the securities were sold or redeemed;

direct costs associated with the realization of securities, including the amount of value added tax attributable to them, in the reporting period in which the securities were sold or redeemed.

2. When determining the banks gross profit from operations with securities (with the exception of placement of emissive securities):

incomes from realization of securities or upon retirement on other grounds, as well as upon their redemption, shall be determined based on the price or realization or other retirement of the security (including redemption), as well as the sum of accumulated interest income paid to the payer by the buyer, or the sum of interest income paid by the issuer to the payer (incomes of the payer do not include the sums of interest income amounts previously accounted for taxation);

costs of the payer upon realization or other retirement (including upon redemption or partial redemption of the nominal value) of securities, shall be determined based on the expenses for acquisition and realization of securities, payment for services of organizer of the public sale, depository, other professional participants of the securities market, and other direct expenses, directly related to operations with securities, including sums of value added tax, falling on them, and also the sum of accumulated interest income paid by the payer to the seller of the security.

3. Incomes and expenses related to REPO transactions in securities shall be determined based on interest incomes and expenses on securities and loans posted and reflected in the accounting in accordance with the terms of contracts and requirements of the legislation regulating accounting issues.

4. For the purposes of this Chapter, operations of issuers with bonds of own issue are recognized as operations on attracting or return of loans.

Article 180. Permanent representation of foreign organization. Specific features of determining the gross profit by foreign organizations carrying out activity in the Republic of Belarus through permanent representation

1. Permanent representation of a foreign organization, located in the territory of the Republic of Belarus, is recognized:

1.1. a permanent place of activity through which the foreign organization carries out entrepreneurial and other activity in the territory of the Republic of Belarus, with the exception of that provided for by indents two–five of part one of clause 5 of this Article;

1.2. an organization or a natural person, carrying out activity, with the exception of the one provided for by indents two-five of part one of clause 5 of this Article, in the name of a foreign organization and/or in its interests and/or having and using powers of the foreign organization to conclude contracts or to agree their conditions.

A foreign organization is not considered as having permanent representation if, while organizing and carrying out activity in the name of the foreign organization and/or in its interests, an organization or a natural person act within the framework of carrying out their usual activity.

Usual activity means an activity which is carried out independently and is not affected by instructions or control on the part of a foreign organization and when it is being carried out entrepreneurial risk for its results remains with the organization or natural person, and not with the foreign organization which they represent.

2. If a foreign organization carries out entrepreneurial or another activity, using several permanent places of activity located in the territory of the Republic of Belarus in each of which certain functions are being fulfilled, directed at obtaining a common result, recognition of availability of a permanent representation of the financial organization shall be made by the tax bodies with regard to activities of all permanent places of activity of the foreign organization, located in the territory of the Republic of Belarus.

3. If a foreign organization executes works and/or renders services in the territory of the Republic of Belarus, the place of executing works, rendering services by the foreign organization from the beginning of its existence shall be recognized as permanent representation of the foreign organization provided that the said activity is carried out in the course of a period exceeding one hundred eighty days, continually or in the aggregate, in any twelve-month period that begins or ends in the respective tax period.

4. A construction site, mounting or assembly object from the beginning of its existence shall be recognized a permanent representation of the foreign organization, if such a site or object exists in the territory of the Republic of Belarus in the course of a period exceeding one hundred eighty days in any twelve-month period beginning or ending in a respective tax period.

As construction site, mounting or assembly object of a foreign organization in the territory of the Republic of Belarus are considered a place of construction of new objects of immovable property, reconstruction (modernization), expansion, technical  re-equipment and/or repair of existing objects of immovable property (with the exception of aircraft and sea vessels, internal water vessels and space objects), and also a place of construction and/or mounting, repair, reconstruction (modernization), expansion and/or technical  re-equipment of structures, machinery and equipment, the functioning of which requires rigid fixing on a foundation or with constructive elements of capital constructions (building, structures).

In the event of carrying out design of the object by other foreign organizations outside the Republic of Belarus, the period of execution of such works is not included in the period of existence of the construction site.

In the event when a foreign organization designs an object outside the Republic of Belarus, the time limit for performing such works and the profits from their performance are not included respectively in the time limit of the permanent representation of such a foreign organization in the Republic of Belarus and in the profit from carrying out activities through it.

When determining the period of existence of a construction site, mounting or assembly object, the time spent by the contractor on other construction sites and/or objects which are not connected with the construction sites and/or object is not taken into account.

The beginning of existence of a construction site is deemed to be the most earlier from the following dates:

the date of signing of an act about transfer of the site to the contractor (act of admission of a sub-contractor personnel for fulfilling a part of the total volume of works);

the date of actual beginning of works.

The termination of existence of a construction site is the date of signing by the ordering customer (builder) of the act of acceptance of works (act of acceptance of the object) or of a complex of works stipulated by the contract. The termination of works of a sub-contractor is deemed to be the date of signing of the act of acceptance of works by the contractor. If act of acceptance has not been drawn up or works were actually finished prior to of after signing of such an act, the construction site is deemed to cease to exist (works of a sub-contractor are deemed to be finished) on the date of actual end of preparatory, construction or assembly works being part of the volume of works of a respective person on this construction site.

5. As a permanent representation of a foreign organization in the Republic of Belarus is not recognized an organization, natural person or a place used by it exclusively for one or several of the following objectives:

storage, demonstration or supply of goods. Supply is deemed to be delivery and shipment of goods without realization thereof in the territory of the Republic of Belarus through a permanent representation of the foreign organization;

procurement of goods (works, services), property rights for the foreign organization;

collection or dissemination of information for a foreign organization;

carrying out other kinds of activities, if in doing so activity as a whole has a preparatory and ancillary nature.

Kinds of activity indicated in part one of this clause do not lead to a creation of a permanent representation of a foreign organization in the territory of the Republic of Belarus, even though the are carried out through a permanent place of activity of a foreign organization, provided that these kinds of activity, separately or in the aggregate, have a preparatory or ancillary nature.

Kinds of activity of a foreign organization in the territory of the Republic of Belarus are considered as preparatory or ancillary if they have such a nature in relation to the activity of the foreign organization for carrying out of which the foreign organization received the revenue.

6. Importation by a foreign organization in the Republic of Belarus or exportation from the Republic of Belarus of goods, another movement of goods or other property in the absence of features of permanent representation of the foreign organization, determined by clause 1 of this Article does not lead to a creation of a permanent representation by this foreign organization in the territory of the Republic of Belarus.

7. In the event if one of the sources of gross profit of a foreign organization is profit from its activity in the territory of the Republic of Belarus through a permanent representation and this profit cannot be determined based on the revenue confirmed by documents minus expenses confirmed by documents, gross profit subject to taxation in the territory of the Republic of Belarus is calculated as the product of gross profit of the foreign organization  and a ration which allows to determine the specific weight of the profit subject to taxation in the Republic of Belarus.

The ratio is determined as specific weight of one of the parameters of financial and economic activity of the permanent representation of the foreign organization in the territory of the Republic of Belarus agreed by the foreign organization with the tax body in the total volume of the similar factor of the foreign organization (work time expenditures, sums of expenses incurred or revenue received, products shipped, works executed, services rendered or another parameter agreed with the tax body). It is not allowed to change the accepted ratio of calculating gross profit within a tax period.

If gross profit of a foreign organization subject to taxation in the territory of the Republic of Belarus cannot be calculated in accordance with part one of this clause (data about gross profit of the foreign organization and/or data necessary for calculation of the ratio are not available), it shall be determined on the basis of the data about the payers (other obliged persons) carrying out similar kinds of activity in the territory of the Republic of Belarus, under the procedure established by the Council of Ministers of the Republic of Belarus or the body authorized by it.

8. When determining gross profit of a foreign organization in accordance with clause 7 of this Article, transfer of damages, established by the legislation of a foreign state the resident of which the foreign organization is does not decrease the gross profit of the foreign organization carrying out activity in the Republic of Belarus through a permanent representation subject to taxation in the Republic of Belarus.

9. Costs on production and realization of goods (non-realization expenses) of a foreign organization carrying out activity in the Republic of Belarus through a permanent representation in addition to costs (non-realization expenses) incurred in the Republic of Belarus include also costs (non-realization expenses) incurred outside the Republic of Belarus that in accordance with the legislation of a foreign state are taken into account therein for the purposes of taxation of profit and directly related to carrying out of activity by the foreign organization in the Republic of Belarus through permanent representation , including management and general and administrative costs, with the exception of costs (non-realization expenses) not taken into account for taxation of profit in accordance with legislation of the Republic of Belarus (later on in this Article –  foreign costs).

Management and general administrative costs, taken into account as foreign expenses in taxation of the profit in the Republic of Belarus, are understood costs (non-realization expenses), which, in accordance with the legislation on accounting and reporting, refer to management expenses, indirect economic expenses and, based on provisions of this  Chapter, may be included in costs (non-realization expenses) (later on in this Article – management and general administrative foreign costs).

10. Foreign costs must be confirmed by a respective report of an auditing organization (auditor) of the foreign state the resident of which the foreign organization is, or by a conclusion of a person carrying out tax consulting activities in the foreign state the resident of which the foreign organization is (later on in this Article – conclusion),which is presented to the tax body not later than the deadline for presenting the tax declaration (calculation) on the tax on profit for the tax period to which they are referred.

A conclusion confirming foreign costs may be presented for reporting periods for the tax on profit. If foreign costs are confirmed by the conclusions drawn up for the first three quarters of the tax period, then foreign costs related to the fourth quarter of the tax period may be confirmed by such a report similarly for the fourth quarter without inclusion therein of indicators for the previous quarters of the tax period, unless it distorts the total annual sum of foreign costs.

It is not allowed to reflect in the tax declaration (calculation) on the tax on profit being submitted for the tax period foreign costs that are not confirmed by a conclusion.

A conclusion may be submitted to the tax body on paper or in electronic form as an attachment to a tax declaration (calculation) for the tax on profit or to a letter of a foreign organization drawn up in the form of an electronic document. The tax body is entitled to send a notification on the submission of the original of such a conclusion on paper carrier.

11. Information on foreign costs in a conclusion must contain, among other things, data on sums of foreign costs in foreign currency and Belarusian rubles according to types of foreign costs, indicating:

details of counterparties (name (surname, proper name, patronymic (if any)), country of registration, payer's registration number in the country of registration or its analogue (if any)) and contracts concluded with them, on the basis of which foreign costs were incurred;

dates of acceptance by a foreign organization of foreign costs for accounting for tax purposes in accordance with the legislation of the foreign state and the official exchange rates of the Belarusian ruble against the corresponding foreign currency established by the National Bank for such dates, and when applying part two or part three of clause 12 of this Article - dates and rates according to their provisions.

Provisions of indent two of part one of this clause do not apply to management and general and administrative costs accounted for as foreign costs if their sum is formed in the order specified in clause 13 of this Article.

12. Recalculation of foreign currency in Belarusian rubles shall be performed at the official rate of Belarusian rouble to the relevant foreign currency, established by the National Bank on the date of their acceptance for accounting for taxation purposes in the foreign state, unless otherwise established by this clause.

If the legislation of the foreign state does not provide for conducting  tax accounting for the purposes of taxation of profit (which should be indiciated in a conclusion with reference to acts of legislation of the foreign state) and/or recognition of profit received by the foreign organization from carrying out activity through a permanent representation located in the Republic of Belarus as taxation object, then recalculation of foreign costs in Belarusian rubles shall be performed at the official rate of Belarusian rouble to the relevant foreign currency, established by the National Bank on the date of their acceptance for accounting in the foreign state.

If, in relation to management and general administrative foreign costs, the conclusion does not contain information on the date they were accepted for accounting in the foreign state, but the months and quarters in which they are incurred are indicated, then for the purposes of this clause, recalculation of management and general administrative foreign costs into Belarusian rubles shall be made at the official exchange rate of the Belarusian ruble to the respective foreign the currency established by the National Bank:

on the last day specified in part one of clause 2 of Article 185 of this Code of the reporting period in which they were accepted for accounting for the purposes of taxation in the foreign country (the sum of such costs must be indicated by calendar quarter in the conclusion;

on the date of termination by the foreign organization of activities in the territory of the Republic of Belarus through the corresponding permanent representation, if such costs fall on the calendar quarter in which the foreign organization has terminated its activities in the territory of the Republic of Belarus through the corresponding permanent representation.

13. If foreign costs are a part of the total sum of costs incurred by a foreign organization outside the Republic of Belarus (costs are incurred not only for a permanent representation in the Republic of Belarus), the conclusion must indicate in which amount (part, percentage) those costs shall be referred to carrying o