Relations between the parties when leasing property are regulated by Chapter 34 of the Civil Code. Under a lease (property lease) agreement, the lessor (lessor) undertakes to provide the lessee (tenant) with property for a fee for temporary possession and use or for temporary use. This definition is given in Article 606 of the Civil Code. At the same time, the tenant is obliged to maintain the property in good condition, as well as bear the costs of maintaining this property, unless otherwise established by law or the lease agreement (clause 2 of Article 616 of the Civil Code of the Russian Federation). Such expenses, in particular, include utility costs, the amount of which varies from month to month.
At the same time, the amount of rent may be changed by agreement of the parties within the time limits specified in the contract, but, in accordance with paragraph 3 of Article 614 of the Civil Code, no more than once a year. For this reason, in practice, most often, under a lease agreement, the tenant compensates the landlord for a share of the cost of the utilities consumed by him separately from the rent. The landlord directly enters into contracts with organizations that provide utility services. They, in turn, provide the lessor with primary documents for their services on a monthly basis, and also issue invoices. The total cost of utilities is determined by their actual consumption based on bills issued by utility services.
The share of the tenant's expenses compensated by him under the lease agreement can be determined in different ways:
the amount of actually consumed utilities is calculated as a percentage of the occupied rental space of the premises;
the amount of electricity consumed is determined by the readings of individual meters;
energy consumption is determined based on the power of the partners’ equipment and its operating time.
In any case, the calculation method must be fixed in the lease agreement.
Tax accounting
Electricity costs
The question arises about the procedure for carrying out these services for both the landlord and the tenant in tax and accounting.
In this regard, the opinion of the Ministry of Finance of Russia, published in the recently published letter of the Federal Tax Service of Russia dated April 23, 2007 No. ШТ-6-03/340@, on the procedure for applying value added tax in relation to funds transferred by the tenant to the landlord in order to compensate for the landlord’s expenses is interesting. for payment of utilities, communication services, as well as security and cleaning services for rented premises under agreements according to which these expenses are not included in the cost of rental services.
Thus, the letter of the Ministry of Finance of Russia dated 03.03.2006 No. 03-04-15/52 sets out the position on the application of VAT in relation to the amounts transferred by the tenant to the landlord in order to compensate the landlord’s expenses for paying for electricity. It specifically states that the lessor has no reason to classify operations for the supply (supply) of electricity under these contracts as operations for the sale of goods for VAT tax purposes. That's why these transactions are not subject to VAT taxation, invoices for electricity consumed by the tenant are not issued by the landlord.
The Ministry of Finance of Russia bases this statement on subparagraph 1 of paragraph 1 of Article 146 of the Tax Code, from which it follows that the object of taxation with value added tax is transactions involving the sale of goods (work, services), as well as the transfer of property rights on the territory of the Russian Federation.
In addition, it is noted that according to paragraph 1 of Article 539 of the Civil Code, under an energy supply agreement, the energy supplying organization undertakes to supply energy to the subscriber (consumer) through the connected network, and the subscriber undertakes to pay for the received energy, as well as to comply with the regime of its consumption stipulated by the agreement, to ensure the safe operation of those in its management of energy networks and the serviceability of the instruments and equipment used by it related to energy consumption. The subscriber in this case is the person on whose balance sheet the energy consuming object is listed.
The lessor is not an energy supplying organization for the tenant, since he himself receives electricity as a subscriber (Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated April 6, 2000 No. 7349/99).
Based on the foregoing, it is noted that the tenant compensates the landlord’s expenses for paying for electricity and does not receive an invoice for the electricity he consumes, therefore he does not have the right to deduct the VAT amounts transferred by him to the landlord as part of the compensation amounts.
But the landlord also faces difficulties in accounting for VAT on utilities. The Ministry of Finance, referring to the provisions of Article 170 of the Tax Code, notes that VAT amounts charged to the buyer when purchasing goods (work, services) in the case of their use for transactions not subject to VAT are not deductible. Consequently, the lessor is not subject to deduction of VAT on electricity charged to him by the energy supply organization in relation to the electricity consumed by the tenant.
...and all other utility bills
In letter dated March 24, 2007 No. 03-07-15/39, the Ministry of Finance of Russia went even further in its reasoning, extending the above point of view on the application of VAT in relation to funds transferred by the tenant to the landlord in order to compensate the landlord’s expenses for payment not only for electricity, but also for all utilities, communication services, as well as security and cleaning services for leased premises under contracts , according to which these expenses are not included in the cost of rental services.
However, the Federal Tax Service of Russia for the Moscow Region expresses a completely different point of view on this issue in its letter dated 02/03/2005 No. 21-27/28632 (hereinafter referred to as the letter of the Federal Tax Service for the Moscow Region). It is based on the fact that when determining the tax base for VAT, revenue from the sale of goods (work, services) is determined based on all income of the taxpayer associated with payments for the specified goods (work, services)(clause 2 of article 153 of the Tax Code of the Russian Federation). According to subparagraph 2 of paragraph 1 of Article 162 of the Tax Code, the tax base is increased by amounts received for goods (work, services) sold in the form of financial assistance, to replenish special-purpose funds, to increase income, or otherwise related to payment for goods (work, services) sold ).
From this it is concluded that funds received by the landlord from the tenant in the form of compensation for the cost of utility bills (energy supply, heat supply, water supply, etc.), in the part consumed by tenants, are subject to VAT. Consequently, VAT amounts paid by landlords to utility service providers, including the part consumed by tenants, are deductible from the landlord on the basis of Articles 169, 171, 172 of the Tax Code. The tenant can also deduct VAT on specified expenses (compensated to the landlord) only on the basis of invoices.
However, a later letter from the Federal Tax Service of Russia dated December 29, 2005 No. 03-4-03/2299/28@ “On the procedure for applying the 0 percent rate on VAT” states that In this situation, the landlord has no grounds for issuing appropriate invoices, and the tenant has the right to a refund of VAT amounts.
To date, tax authorities refuse to express and comment on their point of view on this issue.
What about expenses?
Also very interesting is the question of including in the expenses taken into account for the purpose of calculating profits the costs of paying the above expenses.
The Ministry of Finance of Russia, in letter dated August 4, 2005 No. 03-03-04/2/41 “On accounting for utility bills when subleasing property,” expressed the following point of view. Referring to subparagraph 10 of paragraph 1 of Article 254 of the Tax Code, he confirmed the tenant’s right to take into account as other expenses expenses associated with the payment of utility bills and (or) communication services related to premises leased. The sublessee may also take into account, as part of other expenses associated with production and sales, the costs of payment of utility and operating expenses incurred by him under the sublease agreement. In this case, the tenant, when receiving rental and utility payments from the subtenant, takes these amounts into account as part of other expenses (clause 4 of Article 250 of the Tax Code of the Russian Federation). Despite the fact that the letter speaks of sublease relations, the opinion reflected in it is also valid for relations arising between the tenant and the landlord.
The opinion of the tax authorities on the issue of calculating profit is set out in the above-mentioned letter from the Federal Tax Service for Moscow Region. It states that if the tenant reimburses the landlord for the costs of maintaining and operating the leased property (utility expenses) provided for in the lease agreement, then these payments are reflected by the lessor as part of non-operating income or income from sales, while for the tenant - as part of non-operating expenses.
If a separate agreement is concluded between the parties for reimbursement of the above expenses, these payments are taken into account by the lessor as part of sales income on the basis of paragraph 2 of Article 249 of the Tax Code. For the lessee, these payments are not recognized as expenses for profit tax purposes.
As for utility bills, these expenses, in accordance with subparagraph 5 of paragraph 1 of Article 254 of the Tax Code, are taken into account as part of the material expenses of the party that has entered into direct contracts with organizations that provide utility services. This is very important, since in this situation the tenant does not have direct contracts with utility services and will not be able to include in expenses the amount of utility bills reimbursed to the landlord.
But in later letters from the Federal Tax Service in Moscow dated July 6, 2005 No. 20-12/47837, as well as dated June 26, 2006 No. 20-12/56637 and dated June 28, 2006 No. 19-11/ 58877 expresses a point of view similar to that of the Ministry of Finance.
These letters indicate that if the lease agreement provides for obligations to pay actually consumed utility costs and expenses for communication services for the tenant, he includes these expenses as part of material and other expenses associated with production and (or) sales. In this case, the condition of validity and documentary confirmation of these expenses with primary documents must be met in accordance with paragraph 1 of Article 252 of the Tax Code. It also provides a list of these documents: the landlord's invoices, compiled on the basis of similar documents issued to the landlord by public utilities, in relation to the actual use of these services by the tenant.
The lessor, in turn, has the right to include as expenses amounts transferred to organizations providing utilities and communication services.
Accounting
All of the above concerns tax accounting. Now let's look at this situation within the framework of accounting using the following example.
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The Zodiac company provides warehouse space for rent, which is under its right of ownership. According to the lease agreement, Zvezda, as a tenant, compensates it for 10 percent of the cost of utilities separately from the rent. The cost of utilities is calculated based on their actual consumption according to invoices issued to the landlord by the relevant utility services, and amounts to RUB 70,800 for July 2007. (including VAT - 10,800 rubles). The share of the Zvezda company is 7,080 rubles. (including VAT - 1,080 rubles). The rent is 17,700 rubles. (including VAT - 2,700 rubles) A document and an invoice were provided to the tenant. Calculations are made monthly. Rent and compensation for utilities for July were transferred to Zodiac on August 9, 2007. Providing space for rent is the main activity of the Zodiac company. For the purpose of calculating profits, firms operate on the accrual basis. It should be noted that in order to avoid disputes with the tax authorities, the landlord in the invoice issued to the tenant indicates not “Payment of utilities”, but “Expenses reimbursed by the tenant.” The following entries will be made in the accounting records of the Zodiac company, the lessor:
At the same time, in the purchase book, the company does not record all amounts for received invoices for utilities, but only the amounts consumed specifically by it, that is, 9,720 rubles.
In tax accounting, the Zodiac company, as was said, can accept rent as income from the main activity with VAT charged on these amounts to the budget. The amount of utility bills compensated by Zvezda under the lease agreement is not accepted by it as income for the purpose of calculating profit. It is not subject to VAT, as it is not a sale. Let us turn to the accounting of the Zvezda company as a lessee. The company's accounting department will make the following entries:
We remind you that the landlord issues an invoice to the tenant for the amount of compensation for utility bills without allocating the amount of VAT, as well as copies of utility bills. The Zodiac company, the tenant, reflects the entire amount of the utility bill as expenses both in tax and accounting, without independently allocating VAT.
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How to solve a problem?
To avoid controversial issues in accounting with the tax office, some companies simplify contractual relations when leasing premises. The amount of the cost of rental payments under the contract includes the amount of compensation reimbursed to the lessor for utilities, communication services, as well as security and cleaning services. In this case, the specified amounts are reflected by the lessor as part of non-operating income or income from sales, subject to VAT. The tenant has the right to take them into account as non-operating expenses, and also to deduct VAT amounts on them based on the invoice issued by the lessor.
There is another way to solve this issue. It is also associated with the appropriate execution of contractual relations between the parties to the lease agreement. Its essence is as follows. It must be clear from the lease agreement concluded by the parties that the lessor, when paying for services to public utilities, acts on his own behalf, but at the expense of the tenant. The content and form of the agreement must correspond to intermediary agreements. In particular, a commission agreement defined in Chapter 51 of the Civil Code of the Russian Federation, or an agency agreement in accordance with Chapter 52 of the Civil Code of the Russian Federation. In this case, the landlord re-issues invoices from utility organizations to the tenant, highlighting VAT amounts.
In order to accept the amounts of “input” VAT for deduction, the landlord, acting as an intermediary between the tenant and utilities, must issue invoices on his behalf for the amounts of utility payments. This explanation was given in the letter of the Ministry of Finance of Russia dated November 14, 2006 No. 03-04-09/20.
In addition, in accordance with the provisions of the Civil Code, the landlord is entitled to remuneration for intermediary services. To avoid additional costs on the part of the tenant, the parties can agree to reduce the rent by the amount of the remuneration.
Based on the documents received, the tenant has the right to deduct the VAT amounts paid to the landlord and also reflect them in the purchase book.
Let's look at this situation using an example.
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Let's return to the condition of the previous example. With the only change that the Zodiac company, in terms of the tenant’s utility costs, is a commission agent and acts before utility organizations on its own behalf, but on behalf of the Zvezda company; upon receipt of invoices from utility services, reissues them to the tenant with the allocation of VAT amounts, and also issues invoices for the specified amounts on its own behalf. In addition, acting as a commission agent in this transaction, he receives a remuneration of 1,770 rubles. (including VAT - 270 rubles). The parties agreed to reduce the monthly rent by this amount. The Zodiac company submits the commission agent's report, a certificate of completion of work and an invoice for its remuneration. The following entries will be made in the accounting records of the Zvezda company:
The amount of VAT in the amount of RUB 1,080 indicated in the invoices received from the landlord for utility costs, as well as the VAT amount on rent in the amount of RUB 2,430. and the amount of VAT on commission in the amount of 270 rubles are reflected in the purchase book of the Zvezda company.
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Above the rent
Readers should pay attention to the latest letter of the Russian Ministry of Finance dated June 19, 2007 No. 03-11-04/2/166.
It addresses the situation when, in accordance with the terms of the lease agreement, the cost of communication services by the tenant is paid in addition to the rent. The Russian Ministry of Finance explains that the lessor must take into account the amount of compensation as income received when determining the object of taxation. And payment for telephone services is included in expenses.
Despite the fact that the letter was sent to landlords who are on a simplified taxation system, the conclusions of the Russian Ministry of Finance are based on the articles of Chapter 25 of the Tax Code “Organizational Income Tax.” Namely, Article 249, which affects the concept of income, and Article 259, which regulates expenses.
Therefore, a taxpayer under the general taxation regime must take it into account.
Compensation by the tenant for utility costs to the landlord is the most common method of paying for utility services in practice. At the same time, this raises many questions about the procedure for accounting by the landlord for utility payments received from the tenant.
This method of paying for “utilities” is characterized by the fact that the landlord himself pays the cost of utilities consumed by the tenant to their suppliers. And the tenant compensates him for these expenses.
For example, between organizations “Alpha” (lessor) and “Beta” (tenant) a lease agreement was concluded for non-residential premises with a total area of 200 square meters. m. The agreement stipulates that the tenant pays monthly rent in the amount of 500 rubles. for 1 sq. m. In addition, the tenant undertakes to reimburse the landlord monthly for the cost of utilities (hot and cold water supply, heating, energy supply, sanitation) in proportion to the area of the rented premises based on invoices issued by the landlord.
The provision for reimbursement of utility bills can be established in the lease agreement itself or in an additional agreement to it. Or you can enter into an independent agreement (for example, an agreement to reimburse the costs of paying utility bills, an agreement to pay for utility bills, an agreement to participate in the costs of paying utility bills, etc.).
It is important to note that regardless of what document the condition for compensation for the cost of utility services is fixed, the relationship between the parties cannot be qualified as a relationship under a contract for the supply of utility services. After all, based on the provisions of Art. 539 of the Civil Code of the Russian Federation, the lessor is not a supplier of utility services. This conclusion was reached by the Presidium of the Supreme Arbitration Court of the Russian Federation in paragraph 22 of Information Letter dated January 11, 2002 N 66<1>.
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<1>The Supreme Arbitration Court of the Russian Federation considered an agreement on the participation of the tenant in the costs of consumed electricity. However, his conclusion also applies to other public services, since the rules on energy supply also apply to relations related to the supply of thermal energy, gas, and water (Article 548 of the Civil Code of the Russian Federation).
So, in these cases, utility payments are not part of the rent, but are in the nature of independent payments.
15.2.1. LESSOR'S INCOME WHEN THE TENANT RECOVERS PAYMENTS FOR PUTAL SERVICES
Regulatory authorities consider the tenant's compensation for utilities to the landlord as the latter's income. Consequently, the lessor must take it into account when calculating the tax base for the “simplified” tax (Letters of the Ministry of Finance of Russia dated July 18, 2012 N 03-11-11/210, dated March 11, 2012 N 03-11-11/72, dated October 24, 2011 N 03-11-06/2/145, dated 07/16/2009 N 03-11-06/2/130, dated 02/10/2009 N 03-11-09/42, Federal Tax Service of Russia dated 12/05/2006 N 02-6-10 /216@, Federal Tax Service of Russia for Moscow dated November 17, 2009 N 20-14/2/120232@).
The same point of view is reflected in the Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated July 12, 2011 N 9149/10.
At the same time, if you apply the simplified tax system with the object of taxation “income minus expenses,” you have the opportunity to take into account your expenses. Thus, when you reflect the compensation received from the tenant in income, you have the right to include the same amount of costs for paying for utilities as expenses.
But “simplified” landlords who use the object of taxation “income” do not have this opportunity. Therefore, taking these amounts into account in income will entail an increase in the tax base and, consequently, the size of the single tax.
Note
In judicial practice, you may come across the opinion that the amount of reimbursement for utility bills should not be included in the landlord’s income (see, for example, Resolutions of the Federal Antimonopoly Service of the Ural District dated 04.08.2009 N F09-4747/09-S2, FAS Volga-Vyatka District dated 21.04 .2008 N A39-362/2007). However, if you adhere to this position, then after the release of the above Resolution of the Supreme Arbitration Court of the Russian Federation, it will be extremely difficult for you to defend this approach in court.
If you decide to follow the explanations of the regulatory authorities, then you will take into account the tenant’s reimbursement of utility bills on the date of actual receipt of compensation to your bank account or cash desk (clause 1 of Article 346.17 of the Tax Code of the Russian Federation).
Note
You can find out more about the cash method of accounting for income under the simplified tax system in section. 4.1 “Moment (date) of recognition of income using the cash method of accounting.”
You need to indicate the amount received in column 4 of section. I “Income and expenses” Books of accounting of income and expenses.
Note
About the procedure for filling out section. I Books of accounting of income and expenses, see section. 10.4.2 “Procedure for filling out Section I of the Book of Income and Expenses (tables and certificates)” (if you have an object of taxation “income minus expenses”) or section. 10.6.2 “Procedure for filling out Section I of the Book of Income and Expenses” (if your taxable object is “income”).
In accounting, the cost of utilities consumed by the tenant is reflected by the lessor by debiting account 76 “Settlements with various debtors and creditors” in correspondence with the credit of account 60 “Settlements with suppliers and contractors”. The lessor reflects the transfer of utility payments to suppliers in the debit of account 60 “Settlements with suppliers and contractors” in correspondence with the credit of account 51 “Settlement accounts”.
Receipt of reimbursement amounts for utility payments from the tenant is reflected by posting to the debit of account 51 “Current accounts” and the credit of account 76 “Settlements with various debtors and creditors.”
15.2.2. COSTS OF THE LANDLORD IN COMPENSATION OF PAYMENTS FOR PUTAL SERVICES BY THE TENANT
As noted in the previous section, regulatory authorities require the landlord to include in income compensation for utility bills received from the tenant. This position is unfavorable for those “simplified” people who pay tax on income - they do not have the right to reduce income for the costs of utility payments to suppliers (clause 1 of article 346.18, clause 3 of article 346.21 of the Tax Code of the Russian Federation).
But if you apply the simplified tax system with the tax object “income minus expenses,” you do not lose anything. After all, if you take into account the indicated income, then you have the right to reflect the same amount as part of material expenses (clause 5, clause 1, clause 2, article 346.16, clause 5, clause 1, article 254 of the Tax Code of the Russian Federation). This possibility is also confirmed by regulatory authorities (Letters of the Federal Tax Service of Russia dated December 5, 2006 N 02-6-10/216@, Federal Tax Service of Russia for Moscow dated January 15, 2007 N 18-08/3/02040@).
At the same time, if the utility service provider presented you with the amount of VAT in the cost of services, you recognize it as an expense based on paragraphs. 8 clause 1 art. 346.16 Tax Code of the Russian Federation.
You will take into account the costs of “utilities”, as well as the amount of VAT paid as part of it, at the time of debiting funds from your current account, paying from the cash register. And with another method of repaying the debt for payment of “utilities” - at the time of such repayment (clause 1, clause 2, article 346.17 of the Tax Code of the Russian Federation). In this case, you must have documents confirming these expenses.
Note
You need to reflect the costs of paying for utilities in column 5 of section. I “Income and expenses” Books of accounting of income and expenses. Moreover, the amount of VAT allocated in the cost of utilities and the remaining amount of utility payments minus VAT must be indicated on separate lines.
Note
You can find out more about how to organize tax accounting when working on simplified accounts in Chapter. 10 “Tax accounting under the simplified tax system. Procedure for maintaining the Book of Income and Expenses.”
In terms of accounting, we note the following.
If, under the agreement, the tenant reimburses the cost of the utility services consumed by him, the lessor does not experience an increase or decrease in economic benefits and income and expenses are not reflected in accounting (clause 2 of PBU 9/99, clause 2, 16 of PBU 10/99) . The cost of utilities consumed by the tenant is reflected by the landlord by posting to the debit of account 76 “Settlements with various debtors and creditors” in correspondence with the credit of account 60 “Settlements with suppliers and contractors”. Payment of utility services to their suppliers is reflected in the debit of account 60 “Settlements with suppliers and contractors” in correspondence with the credit of account 51 “Settlement accounts” (Instructions for using the Chart of Accounts).
15.2.2.1. DOCUMENTS REQUIRED BY THE LESSOR TO ACCOUNT THE COSTS OF UTILITY PAYMENTS REIMBURED BY THE TENANT
To include utility payments in expenses for a “simplified” landlord who applies the taxation object “income minus expenses,” primary documents are required. They must confirm payment by the landlord of utility bills and the amount of expenses incurred by him (clause 2 of Article 346.16, clause 1 of Article 252 of the Tax Code of the Russian Federation). Such documents are:
– accounts of utility providers;
– documents confirming their payment by the lessor (payment orders, cash receipts, etc.).
EXAMPLE
accounting for the landlord's income and expenses when the tenant reimburses him for utility bills
Situation
The Alpha organization leases non-residential premises to the Beta organization. The lease agreement stipulates that the landlord pays for utilities, and the tenant reimburses him for their cost. In addition, the tenant pays monthly rent in the amount of RUB 40,000. Organization “Alpha” applies the simplified tax system with the object of taxation “income minus expenses”.
On August 4, the Alpha organization paid the supplier for utilities for water supply and electricity for July - 5,900 rubles. (including VAT 900 rub.).
On August 5, she, in turn, issued an invoice to the Beta organization for the payment of rent for July in the amount of 40,000 rubles. and for reimbursement of utility bills for July in the amount of 5,900 rubles.
On August 9, the Beta organization transferred the indicated amounts to the account of the Alpha organization.
Let's consider the procedure for reflecting the amounts of rent and reimbursement of utility bills in the tax accounting of the lessor.
Solution
– the amount of your utility bills for water supply and electricity in the amount of 5,000 rubles, and also
– the amount of VAT in the amount of 900 rubles presented to her by the utility service provider.
– rent in the amount of 40,000 rubles;
– the amount of compensation for water and electricity consumed by the tenant in July in the amount of 5900 rubles.
In the Income and Expense Accounting Book, the Alpha organization will reflect these transactions as follows.
| Registration | Sum | |||
| N p/p | Contents of operation | |||
| 1 | 2 | 3 | 4 | 5 |
| … | … | … | … | … |
| … |
|
Utilities for water supply and electricity have been paid | – | 5000 |
| … | Bank statement dated 04.08.20__ N 246,
Payment order dated 03.08.20__ N 403 |
VAT transferred to the water and electricity service provider | – | 900 |
| … | … | … | … | … |
| … |
|
Rent was received under the lease agreement for non-residential premises dated 12/10/20__ N 142 | 40 000 | – |
| … | Bank statement dated 08/09/20__ N 261,
Payment order dated 06.08.20__ N 405 |
Received compensation for utility costs | 5900 | – |
| … | … | … | … | … |
15.2.3. TENANT'S EXPENSES FOR COMPENSATION OF PAYMENTS FOR UTILITIES TO THE LANDLORD
When working on the simplified tax system with the object of taxation “income minus expenses”, you can take into account the costs of compensating the landlord for the cost of the utilities you consumed as part of material expenses. Basis – pp. 5 clause 1, clause 2 art. 346.16, sec. 5 p. 1 art. 254 Tax Code of the Russian Federation. A similar conclusion is contained in the Resolution of the Federal Antimonopoly Service of the North Caucasus District dated 02/09/2009 N A53-4662/2008-C5-47.
Let us note that the regulatory authorities have clarified that the tenant’s material costs include the costs of heating buildings, as well as the purchase of fuel, water and energy of all types used only for technological purposes (Letter of the Federal Tax Service of Russia for Moscow dated July 3, 2006 N 18 -11/3/57698@).
If you decide to include these costs as expenses, you take them into account at the time funds are written off from your current account or paid from the cash register. And with another method of repaying the debt to the landlord to compensate for the cost of the utilities you consumed - at the time of such repayment (clause 1, clause 2, article 346.17 of the Tax Code of the Russian Federation). In this case, you must have supporting documents.
Note
You can find out more about the requirements for accounting for expenses of taxpayers who use the simplified tax system in section. 3.6 “Expenses that are taken into account under the simplified tax system with the object of taxation “income minus expenses” and section. 4.2.3 “Special procedure for recognizing expenses for wages, taxes, sales of purchased goods, acquisition of fixed assets, etc.”
Expenses to reimburse the landlord for utility bills are reflected in column 5 of section. I “Income and expenses” Books of accounting of income and expenses.
Note
You can find out more about how to organize tax accounting when working on simplified accounts in Chapter. 10 “Tax accounting under the simplified tax system. Procedure for maintaining the Book of Income and Expenses.”
About the procedure for filling out section. I Books of accounting of income and expenses, see section. 10.4.2 “Procedure for filling out Section I of the Book of Income and Expenses (tables and certificates).”
If you keep accounting records, then you should recognize such costs as expenses for ordinary activities (clause 5 of PBU 10/99). You will reflect them on the debit of the cost accounting accounts (20 “Main production”, 44 “Sales expenses”, etc.) in correspondence with the credit of the account for accounting of settlements with the lessor (76 “Settlements with various debtors and creditors”) (Instructions for using the Plan accounts).
15.2.3.1. DOCUMENTS REQUIRED FOR THE TENANT TO ACCOUNT THE COSTS OF REIMBURSEMENT OF PAYMENTS FOR UTILITY SERVICES
If utilities are paid separately from the rent, then to compensate for such costs, the landlord issues an invoice to the tenant for payment.
In addition, given that the amount of utility bills is a variable value (determined based on the tenant’s consumption of utilities), the landlord must, along with the invoice for payment, provide the tenant with documents confirming the cost of utilities consumed directly by the tenant. This could be, for example, an act of consumption of utility services and calculation of utility payments, compiled on the basis of invoices of utility service providers.
Since the forms of primary documents are determined by the business entity itself, the lessor can draw them up in any form (Part 4, Article 9 of Law No. 402-FZ).
However, only if there are mandatory details provided for in Part 2 of Art. 9 of Law N 402-FZ, the documents are recognized as primary accounting documents and you can confirm with them your expenses for reimbursement of utility bills to the landlord.
EXAMPLE
accounting for tenant expenses when reimbursing utility costs to the landlord
Situation
The Delta organization rents premises. The utilities she consumes are paid to the suppliers by the landlord. And the Delta organization compensates him for their cost. Both the tenant and the lessor apply the simplified tax system with the object of taxation “income minus expenses”.
On August 4, the landlord issued an invoice to the Delta organization for reimbursement of utility bills for July in the amount of 5,000 rubles. Attached to the invoice was a calculation of the cost of utilities consumed by the tenant, based on meter readings.
On August 9, the Delta organization paid the specified invoice of the lessor by payment order.
Let's consider the procedure for reflecting the amount of reimbursement of utility bills in the tenant's tax accounting.
Solution
In August, the Delta organization has the right to include in material expenses its costs of compensating the landlord for utility bills for July in the amount of 5,000 rubles.
This operation is reflected in the Income and Expense Book on the day of payment – August 9. In Sect. I Income and Expense Books, Delta organization will make the following entries.
| Registration | Sum | |||
| N p/p | date and number of the source document | Contents of operation | income taken into account when calculating the tax base | expenses taken into account when calculating the tax base |
| 1 | 2 | 3 | 4 | 5 |
| … | … | … | … | … |
| … | Bank statement dated 09.08.20__ N 201,
Payment order dated 06.08.20__ N 415 |
Compensation for the cost of utilities has been transferred to the landlord | – | 5000 |
| … | … | … | … | … |
15.3. ACCOUNTING OF INCOME AND EXPENSES WHEN PAYING FOR UTILITIES THROUGH THE LESSOR-INTERMEDIARY (COMMISSIONER, AGENT)
Settlements between the landlord and the tenant for utilities are often formalized through intermediary agreements, in particular a commission agreement or an agency agreement (Articles 990, 1005 of the Civil Code of the Russian Federation). The parties can also include a provision for mediation in the lease agreement, i.e. conclude a mixed agreement containing elements of various agreements (clause 3 of Article 421 of the Civil Code of the Russian Federation).
In this case, the lessor, under agreements with utility providers, purchases from them energy, water, gas, and sewerage services for the tenant. And having received money from the tenant for purchased utilities, he transfers them to suppliers. Thus, the landlord acts as an intermediary (commission agent, agent) in settlements between utility services and the tenant.
Let us note that mediation agreements are paid (Articles 991, 1006 of the Civil Code of the Russian Federation), therefore the parties need to agree on the amount of the mediation fee. If the amount of remuneration is not established and cannot be determined based on the terms of the contract, the tenant must pay it to the lessor in an amount corresponding to the cost of similar services (clause 3 of Article 424 of the Civil Code of the Russian Federation).
With this method of paying for utilities, it is important when the landlord and tenant have entered into an intermediary agreement. In practice, this often happens after the landlord has signed an agreement with the utility services. In this case, the tax authorities may not recognize the relationship for paying for utilities as intermediary, which has unpleasant consequences for the landlord.
You can quickly jump to the desired section using the following links:
section 15.3.1. Income of the landlord-intermediary when paying for utilities >>>
section 15.3.2. Expenses of the landlord-intermediary when paying for utilities >>>
section 15.3.3. Tenant's expenses when paying for utilities through an intermediary landlord >>>
15.3.1. INCOME OF THE LESSOR-INTERMEDIARY WHEN PAYING FOR UTILITIES
Under the terms of the intermediary agreement (commission agreement, agency agreement), the intermediary landlord purchases utilities for the tenant. For fulfilling this order, he receives a reward (Articles 991, 1006 of the Civil Code of the Russian Federation).
Thus, if you rent out premises and, as an intermediary, participate in the tenant’s payments for utilities, then your income includes:
– the amount of rent for the leased premises (clause 1 of Article 346.15 of the Tax Code of the Russian Federation);
– remuneration for intermediary services paid to you by the tenant. This follows from paragraphs. 1 clause 1.1 art. 346.15, sec. 9 clause 1 art. 251 Tax Code of the Russian Federation.
Similar explanations are given, in particular, in Letters of the Ministry of Finance of Russia dated 08/09/2013 N 03-11-11/32283, dated 04/17/2013 N 03-11-06/2/13101, dated 04/17/2013 N 03-11-06/ 2/13097, Federal Tax Service of Russia for Moscow dated October 23, 2006 N 18-11/3/93008@.
The landlord-intermediary reflects the indicated income on the date of their actual receipt in column 4 of section. I “Income and expenses” Books of accounting of income and expenses.
As for the amount of reimbursement for utility payments that the landlord receives from the tenant, the landlord does not take them into account in income. But only on the condition that it does not include in expenses the costs of “utilities” for the tenant (clause 1, clause 1.1, article 346.15, clause 9, clause 1, article 251 of the Tax Code of the Russian Federation).
Some courts also come to the conclusion that utility payments received by the landlord-agent are not taken into account in his income (Resolution of the Federal Antimonopoly Service of the Moscow District dated October 15, 2009 N KA-A41/10689-09).
Note
You can find out more about accounting for intermediary income in section. 16.1 “Income (remuneration) of an intermediary (attorney, commission agent, agent, forwarder) applying the simplified tax system.”
However, with this method of paying for utilities, it is worth paying attention to the following circumstances. Disputes with the tax authorities cannot be ruled out if the landlord entered into an intermediary agreement later than the agreements with public utilities for the supply of utilities. The fact is that a transaction completed before the establishment of intermediary relations cannot be recognized as concluded in pursuance of the order of the customer<1>(in our case, the tenant).
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<1>This conclusion regarding, in particular, the commission agreement was made by the Presidium of the Supreme Arbitration Court of the Russian Federation in paragraph 6 of Information Letter No. 85 dated November 17, 2004.
For example, the Alpha organization (lessor) provided non-residential premises to the Beta organization (tenant) under a lease agreement. In addition, the companies entered into a commission agreement under which the Alpha organization (commission agent) purchases utilities for the tenant (water, heating, electricity) from suppliers. However, contracts with utility service providers for this non-residential premises were concluded with the Alpha organization earlier, even when the non-residential premises were purchased. In this case, the purchase of utilities by the Alpha organization is not an intermediary service in the interests of the tenant.
This position is also shared by the Russian Ministry of Finance on the issue of determining the income of an agent applying the simplified tax system. Officials indicate that an agent who acts on his own behalf, but at the expense of the principal, must make transactions with a third party after concluding an agency agreement and only in the interests of the principal. It is under these conditions that the “simplified” agent takes into account only the agency fee as part of his income. This position is reflected in Letters of the Ministry of Finance of Russia dated 02/10/2009 N 03-11-06/2/24, dated 02/10/2009 N 03-11-06/2/25, dated 01/26/2009 N 03-11-09/18, dated January 26, 2009 N 03-11-09/19.
Thus, in a situation where contracts with utility providers were concluded prior to the intermediary agreement, the tax authorities may additionally charge the landlord a single tax on the amount of utility payments received from the tenant. Moreover, some courts support the position of the inspectors (Resolution of the Federal Antimonopoly Service of the Volga Region dated October 4, 2007 N A57-9388/06).
To reduce the risk of disputes with regulatory authorities, you can choose a different method for the tenant to pay for the utility services consumed by him.
For the purposes of accounting for the lessor, funds received from the tenant as payment for utilities, and funds transferred to utility services, are not included in income and expenses (clause 3 of PBU 9/99, clause 3 of PBU 10/99 ).
The amount of agency fees is income from ordinary activities (clause 5 of PBU 9/99).
15.3.2. COSTS OF THE LESSOR-INTERMEDIARY IN PAYING FOR UTILITY SERVICES
As part of intermediary relations, the landlord-intermediary, as a rule, bears the costs of paying for utilities purchased on behalf of the tenant and consumed by him. However, they are not taken into account in the landlord’s expenses, since they are compensated by the tenant (paragraph 1, paragraph 2, article 346.16, paragraph 1, article 252, paragraph 9, article 270 of the Tax Code of the Russian Federation).
For accounting purposes, the lessor's funds transferred to public utilities are not included in expenses (clause 3 of PBU 10/99).
Note
You can find out more about accounting for the costs of a “simplified” intermediary in Section. 16.2 “Costs of an intermediary (attorney, commission agent, agent, forwarder) applying the simplified tax system.”
15.3.3. TENANT'S COSTS WHEN PAYING UTILITIES THROUGH THE LESSOR-INTERMEDIATE
Let's say you entered into an intermediary agreement (agency or commission agreement) with your landlord and entrusted him with:
– conclude agreements with utility providers;
– pay for these services for you.
You, for your part, undertake to pay him a fee for mediation and compensate his expenses for utility bills.
If you apply the object of taxation “income minus expenses”, then for the purpose of calculating tax under the simplified tax system you recognize as expenses, in particular:
– rent (clause 4, clause 1, article 346.16 of the Tax Code of the Russian Federation);
– paid intermediary fee (clause 24, clause 1, article 346.16 of the Tax Code of the Russian Federation);
– compensation to the intermediary landlord for utility bills (as part of material expenses on the basis of clause 5, clause 1, clause 2, article 346.16, clause 5, clause 1, article 254 of the Tax Code of the Russian Federation);
– the amount of VAT, if it is presented to the lessor by the utility service provider as part of utility payments (clause 8, clause 1, article 346.16 of the Tax Code of the Russian Federation).
You will take into account these expenses on the date of their implementation in column 5 of section. I “Income and expenses” Books of accounting of income and expenses. In this case, you must have supporting documents.
Note
You can find out more about accounting for the principal's expenses in section. 16.4 “Expenses of the principal (principal, principal, client under an expedition agreement) under the simplified tax system.”
In accounting, the amounts of rent, paid agency fees and compensation for utility costs are recognized as expenses for ordinary activities (clause 5 of PBU 10/99). These costs are reflected in the debit of the cost accounting accounts (20 “Main production”, 44 “Sales expenses”, etc.) in correspondence with the credit of the account for accounting of settlements with the lessor (76 “Settlements with various debtors and creditors”). The transfer of rent, utility bills and remuneration amounts to the intermediary landlord is reflected in the debit of account 76 “Settlements with various debtors and creditors” in correspondence with the credit of account 51 “Settlement accounts” (Instructions for using the Chart of Accounts).
15.3.3.1. DOCUMENTS REQUIRED FOR THE TENANT TO ACCOUNT COSTS FOR UTILITY PAYMENTS THROUGH THE LANDING INTERMEDIATE
If the landlord, on behalf of the tenant, pays utility bills for him, then he must issue on his behalf to the tenant:
– utility bill;
– invoice for payment of intermediary fees.
Please note that the utility bill is drawn up on the basis of similar utility bills or calculations. The landlord determines the form of the invoice for payment of utility bills independently (Part 4, Article 9 of Law No. 402-FZ).
When transferring the specified documents to you, pay attention to whether they contain the mandatory details provided for in Part 2 of Art. 9 of Law No. 402-FZ. Only if such documents are available are they recognized as primary accounting documents and you can use them to confirm your expenses for utility bills.
Note
You can find out more about primary accounting documents for intermediary transactions in section. 28.1.1 “Documentation of transactions under intermediary agreements (under commission agreements, agency agreements, assignments, transport expedition)” of the Practical Guide to VAT.
15.4. ACCOUNTING OF COSTS WHEN THE TENANT PAYS UTILITY PAYMENTS TO UTILITY SERVICE PROVIDERS
Sometimes a rental agreement for premises is concluded with the condition that the tenant independently pays for utilities directly to the providers of these services - various utility services. In this case, all payments for utility bills are carried out without the participation of the lessor, so these transactions are not reflected in his tax and accounting records.
As for the tenant, he includes the costs of paying for utilities as part of his material expenses on the basis of paragraphs. 5 clause 1, clause 2 art. 346.16, sec. 5 p. 1 art. 254 of the Tax Code of the Russian Federation (Letters of the Ministry of Finance of Russia dated January 15, 2009 N 03-11-06/2/01, dated December 28, 2005 N 03-11-04/2/163 (clause 3)).
At the same time, the VAT amounts allocated by suppliers in the cost of utility services must be reflected separately in expenses based on paragraphs. 8 clause 1 art. 346.16 Tax Code of the Russian Federation.
Accounting for these expenses is possible if you apply the simplified tax system with the object of taxation “income minus expenses.”
The tenant takes into account the costs of utilities, as well as the amount of VAT paid as part of them, on the date of debiting funds from the current account, payments from the cash register. And with another method of repaying the debt for payment of “utilities” - at the time of such repayment (clause 1, clause 2, article 346.17 of the Tax Code of the Russian Federation). In this case, documentary evidence of expenses is required.
Note
You can find out more about the requirements for accounting for expenses of taxpayers who use the simplified tax system in section. 3.6 “Expenses that are taken into account under the simplified tax system with the object of taxation “income minus expenses” and section. 4.2.3 “Special procedure for recognizing expenses for wages, taxes, sales of purchased goods, acquisition of fixed assets, etc.”
The tenant reflects these expenses in column 5 of section. I “Income and expenses” Books of accounting of income and expenses. Moreover, the VAT amounts presented by utility service providers must be indicated on separate lines.
Note
You can find out more about how to organize tax accounting when working on simplified accounts in Chapter. 10 “Tax accounting under the simplified tax system. Procedure for maintaining the Book of Income and Expenses.”
About the procedure for filling out section. I Books of accounting of income and expenses, see section. 10.4.2 “Procedure for filling out Section I of the Book of Income and Expenses (tables and certificates).”
If you keep accounting records, then you should recognize such costs as expenses for ordinary activities (clause 5 of PBU 10/99). You will reflect them in the debit of cost accounting accounts (20 “Main production”, 44 “Sales expenses”, etc.) in correspondence with the credit of accounts payable to suppliers (60 “Settlements with suppliers and contractors”, 76 “Settlements with various debtors and creditors” (Instructions for using the Chart of Accounts)). At the same time, the amount of VAT presented by specialized enterprises in accounting does not need to be previously reflected in account 19 “Value added tax on acquired assets”, if this is enshrined in the accounting policy of the organization.
15.4.1. DOCUMENTS REQUIRED FOR THE TENANT TO ACCOUNT THE COSTS OF UTILITY PAYMENTS TO SERVICE PROVIDERS
To include utility bills in expenses, the tenant needs primary documents that confirm payment and the amount of expenses incurred (clause 2 of Article 346.16, clause 1 of Article 252 of the Tax Code of the Russian Federation).
If the tenant pays utility services directly to suppliers, then such documents for him are invoices of utility service providers, as well as documents on their payment (payment orders, cash receipts, etc.).
EXAMPLE
accounting for the tenant's expenses for paying utilities to suppliers and paying rent to the landlord
Situation
The trading organization “Gamma” rented non-residential premises for a store. At the same time, it independently entered into agreements with water, electricity and heat supply organizations for the supply of their services. Monthly rent – 40,000 rubles. (without VAT). The organization “Gamma” applies the simplified tax system with the object of taxation “income minus expenses”.
On July 15, the organization paid the utility bill for electricity supply for June in the amount of RUB 7,080. (including VAT 1080 rub.).
On July 16, the rent for June in the amount of 40,000 rubles was transferred to the landlord by payment order.
Let's consider the procedure for reflecting payment of utility bills and rent in the tax and accounting records of the tenant.
Solution
Organization “Gamma” will take into account the following expenses in July:
– VAT in the amount of 1080 rubles, presented to the Gamma organization by the supplier of electricity services (based on clause 8, clause 1, article 346.16 of the Tax Code of the Russian Federation);
– utility costs in the amount of 6,000 rubles. (based on clause 5, clause 1, clause 2, article 346.16, clause 5, clause 1, article 254 of the Tax Code of the Russian Federation);
– the amount of rent paid – 40,000 rubles. (based on clause 4, clause 1, article 346.16 of the Tax Code of the Russian Federation).
In the Book of Accounting for Income and Expenses, the Gamma organization will reflect these expenses in section. I “Income and expenses” on July 15 and 16, respectively, as follows.
| Registration | Sum | |||
| N p/p | date and number of the source document | Contents of operation | income taken into account when calculating the tax base | expenses taken into account when calculating the tax base |
| 1 | 2 | 3 | 4 | 5 |
| … | … | … | … | … |
| … |
|
Electricity utilities paid | – | 6000 |
| … | Bank statement dated July 15, 20__ N 246,
Payment order dated July 14, 20__ N 304 |
VAT transferred to the electricity service provider | – | 1080 |
| … | Bank statement dated 07/16/20__ N 250,
Payment order dated July 14, 20__ N 305 |
The rent was transferred under the lease agreement for non-residential premises dated 12/10/20__ N 142 | – | 40 000 |
| … | … | … | … | … |
In accounting, the Delta organization will make the following entries:<4>.
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<4>The issue of accounting under the simplified tax system is covered in more detail in section. 1.4.2 “Accounting under the simplified tax system.”
| Contents of operations | Debit | Credit | Amount, rub. | Primary document |
| Rent reflected | 44 | 76 | 40,000 Submit Rating |
When concluding a lease agreement, questions often arise regarding the reimbursement of utilities by the tenant. The landlord receives utility bills and the tenant must reimburse part of them. Sometimes the landlord includes the cost of these services in the rent. But to coordinate all the issues, it is better to conclude an agreement for reimbursement of utilities.
Subject of the agreement
Upon acceptance of the premises, the tenant undertakes to keep the rented premises in good technical condition. To comply with this condition, he must use the heating system, electricity, water supply and other services, and, therefore, he must participate in paying a share of the costs of utility bills. To do this, an agreement is concluded, the subject of which may be payment for services for:
The subject of this agreement may include other services of third parties for:
- Cleaning common areas and surrounding areas.
- Repair of common areas.
- Protection of the territory.
- Use of the elevator.
- Other operational services.
The utility fee in the contract can be:
- constant - the contract specifies a fixed amount, independent of the amount of utilities consumed;
- variable – the contract states that the fee depends on the number of services consumed over a certain period.
Important! According to letter No. 66 of the Supreme Court dated January 11, 2002, this type of agreement cannot be classified as a contract for the supply of utility services, since the lessor is not a supplying organization.
Content requirements
The legislation does not strictly regulate the content of an agreement for reimbursement of costs for utility services, so the parties must carefully approach its drafting in order to exclude further claims.
When concluding a contract, the following basic provisions must be included:
When calculating the amount of compensation for certain types of services, you can use the following formulas:
- Electricity: Se = Kl * Ml * Kcha * T.
Legend:
- Se — amount for electricity;
- Kl – the number of light bulbs in the rented area;
- Ml – power of one light bulb;
- T—tariff.
- Heat energy: St = Kg *(Vа/Vз)/ Kch* Kch *T.
Legend:
- St – amount for heat energy;
- Kg – amount of Gcal per month;
- Vз – volume of the building;
- Va – volume of the building being rented out;
- Kcha - number of hours per month (rent);
- T—tariff.
- Water consumption: Sw = Kk / Kp * Kpa / Kch * Kch * T.
Legend:
- Sв – amount for water consumption;
- Kk – number of cubic meters. m. per month;
- Kp – number of lessor’s consumers;
- Kpa – number of tenant consumers;
- Kch - number of hours per month (total);
- Kcha - number of hours per month (rent);
- T—tariff.
Rights and obligations of the parties
It is best to include the following in the rights and obligations of the lessor:
It is best to include the following in the rights and obligations of the tenant:
- Tenant payment deadlines.
- Responsibilities of the tenant to agree on the work schedule.
- Obligations not to install new or dismantle existing equipment.
- Obligations to compensate the lessor for damages associated with improper operation of engineering systems.
Sample contract
As mentioned above, the legislation does not strictly regulate the content of an agreement for reimbursement of utility costs. Therefore, you need to be very careful and careful when compiling it. Below is an example of a contract for reimbursement of utilities by the tenant.
Termination of an agreement
The contract should spell out all the possibilities for terminating the contract, which may include:
When concluding any agreement, including reimbursement of utility costs, when there is no clear regulation of its provisions in the law, it is better to spell out all possible conditions rather than rely on the integrity of the parties. In this case, it will be easier to defend your rights in court.
» No. 10 for 2011
Typically, contracts with utility providers are concluded by the owner of the premises. If the premises are rented out, the tenants compensate the cost of the utilities they consume to the landlord. Let's consider in what cases the tenant has the right to deduct the “input” VAT included in the cost of utilities 1.
The article does not discuss the procedure for issuing invoices and calculating VAT in a situation where the lessor uses a simplified taxation system.
As a general rule, the owner of property bears the burden of its maintenance (Article 210 of the Civil Code of the Russian Federation). But when transferring property for rent, maintaining it in good condition and carrying out the corresponding expenses is assigned to the tenant (Article 616 of the Civil Code of the Russian Federation). The costs of maintaining the property may well include utility payments (for electricity, water supply, sewerage, heating) and the cost of other similar services (telephony, Internet, cleaning, security, etc.).
It is necessary that the tenant's obligation to reimburse utilities and similar reimbursable services be documented. This can be done in several ways:
- include the cost of utilities in the rent;
- within the framework of the lease agreement or a separate agreement, provide for reimbursement of utilities (without inclusion in the rental price);
- enter into an intermediary agreement for the landlord to purchase utilities for the tenant.
Let's look at each of these methods in more detail.
The cost of utilities is included in the rent
With this method, the rent in the lease agreement already includes utility bills. Moreover, there are two options for calculating the rental cost.
First option: The monthly amount of lease payments is fixed (does not change during the term of the lease agreement). This option is the simplest, but it has certain disadvantages. Indeed, in this case, the change in the amount of energy consumed is not taken into account. At the same time, energy consumption depends on seasonality and equipment load. For example, during the cold season the use of coolants increases. With shorter daylight hours, the cost of consumed electricity increases. In addition, fixed amounts do not take into account equipment load. Therefore, with this option, it is difficult to establish in advance the amount of the “utilities” at such a level that it suits both parties to the lease agreement: it is not prohibitively high for the tenant, and does not cause losses to the landlord. For the same reason, the tax authorities may have claims regarding the economic justification of such a calculation of the cost of rent.
So it's preferable second option, when the rent for premises consists of two parts: constant and variable. The constant part is fixed and represents a fee for the use of leased space. The variable part consists of the cost of electricity, water supply, other utilities and similar services actually consumed by the tenant, and is calculated based on the tariffs of supplying organizations. Then the lease agreement must specify the procedure for calculating the variable component of the rent:
- or according to meter readings (if possible);
- or by calculation (for example, in proportion to the rented area).
At the end of each month, the lessor draws up a calculation of the resources consumed by the tenant, on the basis of which a service acceptance certificate is drawn up. The form of this calculation can be provided in the contract as an appendix. Please note: in the opinion of the Federal Tax Service, set out in paragraph 1 of letter No. ShS-22-3/86@ dated 02/04/2010 (hereinafter referred to as letter of the Federal Tax Service of Russia No. ShS-22-3/86@), the acceptance certificate for services lease is a primary document that confirms the consumption of services and is basis for issuing an invoice. Therefore, we recommend drawing up rental acts, otherwise the tenant will have tax risks of applying the deduction of “input” VAT. The lease agreement may provide for the obligation of the lessor to attach copies of the invoices of the supplying organizations to the calculation and the service acceptance certificate.
The landlord issues an invoice to the tenant for the entire amount of the rent (clause 3 of Article 168 of the Tax Code of the Russian Federation). At the same time, it is not necessary to highlight in a separate line the amount of utility payments, which are a variable part of the rent, in the invoice (letters of the Ministry of Finance of Russia dated September 19, 2006 No. 03-06-01-04/175 and the Federal Tax Service of Russia No. ShS-22-3/86@ ).
Procedure for calculating VAT
How to calculate VAT if the contract provides for fixed and variable (additional) components of the rent is stated in paragraph 1 of letter No. ShS-22-3/86@ of the Federal Tax Service of Russia.
Landlord issues an invoice to the tenant no later than five calendar days, counting from the date of provision of the service. Moreover, the day of service provision is the last day of the month. Please note: the lessor determines the VAT tax base based on the amount of rent, consisting of the main and additional parts. Consequently, he has the right to apply tax deductions for “input” VAT, which were presented to him by supplying organizations when purchasing utilities included in the rent as its variable part.
Tenant on the basis of the service acceptance certificate and a correctly executed invoice, the lessor can deduct “input” VAT relating to both the variable and fixed parts of the rent. Let us recall that the general rules for the application of tax deductions are prescribed in paragraph 2 of Article 171 and paragraph 1 of Article 172 of the Tax Code of the Russian Federation. This arrangement of utility payments is the safest from the point of view of tax risks.
Example 1
Sfera LLC leases part of its premises to the tenant Pyramid LLC. The remaining part of the premises is used by the owner himself. According to the terms of the lease agreement, the amount of lease payments is determined as follows:
- constant part - the cost of services for providing property for rent is 11,800 rubles. per month (including VAT 1800 rub.);
- the variable part is the cost of utilities consumed by the tenant.
The agreement stipulates that the variable part of the rent is determined by calculation. The calculation is made based on the tariffs of utility service providers.
According to the accounts of the supplying organizations, the total expenses for utilities for the premises for May 2011 amounted to 5,900 rubles. (including VAT 900 rub.). The accountant of Sfera LLC calculated the share of utilities consumed by the tenant - the variable part of the rent for May 2011 is equal to 3,540 rubles. (including VAT 540 rub.). Based on the calculation, the tenant was issued an acceptance certificate for services and services, dated May 31, 2011, in the amount of RUB 15,340. (RUB 11,800 + RUB 3,540), including VAT RUB 2,340. (1800 rub. + 540 rub.). The listed documents indicate: “Services for the provision of property for rent in May 2011”, accompanied by a calculation of the distribution of utilities and copies of documents from supplying organizations. The cost of the variable part of the rent is not highlighted as a separate line in the invoice.
In May 2011, the lessor calculated VAT on the sale of services in the amount of 2,340 rubles and deducted VAT in the amount of 900 rubles. (based on properly executed invoices received from utility providers). In the tax accounting of the lessor in the same month, the amount of rent excluding VAT is 13,000 rubles. (RUB 15,340 – RUB 2,340) is included in income, and expenses include utility costs in the amount of RUB 5,000. (5900 rub. – 900 rub.).
In May 2011, the tenant accepted for deduction the “input” VAT on utilities in the amount of 2,340 rubles, and included 13,000 rubles in expenses in tax accounting. (subparagraph 5, paragraph 1, article 254, subparagraph 10 and subparagraph 49, paragraph 1, article 264 of the Tax Code of the Russian Federation).
Reimbursement of utility costs is not included in the rent
A fairly common situation is when utilities are not included in the rent, that is, when the rent is a constant amount, and the costs of utilities are compensated separately by the tenant. Moreover, compensation can be made both on the basis of a separate provision in the lease agreement, and according to an independent agreement. The landlord can reflect the monthly amount of reimbursement for utility expenses in a special act (or in an act for the provision of rental services) issued to the tenant in accordance with the invoices of the supplying organizations. The procedure for preparing documents must be specified in the contract.
Let's figure out how VAT is calculated by the parties using this method of compensation for utilities.
Explanations from the Federal Tax Service of Russia - there are two possible options for calculating the tax base for VAT
In accordance with paragraph 2 of the letter of the Federal Tax Service of Russia No. ШС-22-3/86@, the lessor does not take into account compensation for the costs of maintaining the leased premises when determining the tax base for VAT. But only on condition what is compensation not included in rent and is charged to the tenant without VAT. Sometimes paragraph 2 of this letter is interpreted as a complete prohibition for the landlord to allocate VAT on the amount of compensation for utility costs in excess of the rent, as the inability to issue an invoice for the amount of compensation, and for the tenant to accept this VAT as a deduction. However, such a conclusion does not follow from the letter in question. Indeed, paragraph 2 only states that the landlord does not include compensation for utility costs (in excess of the rent) in the VAT tax base, only if VAT is not allocated in the amount of this compensation in accordance with the terms of the contract and the act for utilities (drawn up by the landlord on based on invoices of supplying organizations). And then he will not be able to issue the tenant an invoice with allocated VAT, which means that the tenant will not have the right to tax deductions.
So, according to the letter of the Federal Tax Service of Russia No. ШС-22-3/86@, the landlord was provided right to choose in a situation where reimbursement of utility bills is made in addition to the rent:
- do not allocate VAT on the amount of compensation for utilities and do not include it in the VAT tax base;
- allocate VAT from the compensation amount and accordingly take it into account when calculating the tax base for VAT.
Compensation is not included in the lessor's VAT base. In the agreement and act in accordance with which utility bills are rebilled, it is necessary to indicate the full amount of compensation with the clarification that it is charged without VAT. Invoices received from utility providers landlord reflects in the purchase book only the portion consumed by him. “Input” VAT related to resources expended by the tenant is not reflected in the landlord’s purchase book and is not accepted for deduction 2.
Since the landlord indicates the amount of compensation in the act for utility expenses without allocating VAT and does not issue an invoice, tenant There is no right to deduct VAT from the amount of reimbursement for utility services. Does the tenant have the right to reduce taxable profit by the entire amount of compensation, since it includes the amounts of “input” VAT presented by utility providers to the landlord?
In letter dated December 27, 2007 No. 03-03-06/1/895, the Russian Ministry of Finance noted that the tenant cannot include the specified VAT in tax accounting expenses. Even though the landlord did not include VAT in the compensation amount. This position is controversial, but nevertheless, the tenant will have tax risks when including the specified amounts of VAT in expenses that reduce taxable profit.
Example 2
Sphinx LLC leases part of the building from Pharaoh LLC. The rent amount is 23,600 rubles. monthly (including VAT 3600 rub.). The lease agreement stipulates that Sphinx LLC is obliged to compensate the landlord monthly for utility bills; the amount of compensation is charged without the allocation of value added tax. In addition, the landlord is obliged to re-issue invoices received from supplying organizations to the tenant in proportion to the utility services consumed by him. The lessor indicates the amount of expenses subject to compensation in the act without VAT, and also does not issue invoices.
In May 2011, the total cost of utilities for the building amounted to 8,260 rubles. (including VAT 1260 rubles), of which services amount to 3540 rubles. consumed by the lessor, and in the amount of 4720 rubles. - tenant. At the end of May 2011, Pharaon LLC handed over the following documents to the tenant:
- service acceptance certificate, which reflects two items: “Services for the provision of property for rent in May 2011 - 23,600 rubles, including VAT 3,600 rubles.” and “Compensation for consumed utilities for May 2011 - 4,720 rubles, not subject to VAT”, a calculation of the distribution of utility payments and copies of documents from supplying organizations are attached to the act;
- invoice for services for providing property for rent in May 2011 for a total amount of 23,600 rubles. (including VAT 3,600 rubles).
In May 2011, the lessor calculated VAT on the sale of services in the amount of 3,600 rubles, and deducted “input” VAT on the services of supplying organizations in the amount of 540 rubles. (RUB 3,540 ÷ 118 × 18). In tax accounting, he reflected in income the rent without VAT - 20,000 rubles, compensation for utility bills - 3 - 4,720 rubles, in expenses - the cost of utility bills in the amount of 7,720 rubles. (8260 rub. – 1260 rub. + 4720 rub. ÷ 118 × 18).
In May 2011, the tenant deducted the amount of “input” VAT on rental payments in the amount of 3,600 rubles, and in tax accounting included in expenses the cost of rent - 20,000 rubles, compensation for utility bills - 4,000 rubles. (4720 rub. – 720 rub.). Following the recommendations of the Russian Ministry of Finance, he did not take into account the “input” VAT on utility bills when calculating income tax.
The considered method is not beneficial to the tenant, since he loses the right to deduct “input” VAT on utilities, and when such VAT is included in expenses, additional tax risks arise.
The compensation is included by the lessor in the VAT tax base. In this case, when calculating VAT and issuing documents, you should be guided by paragraph 1 of the letter of the Federal Tax Service of Russia No. ШС-22-3/86@. In the contract and deed, the amount of compensation must be indicated, including VAT. Then the landlord will be able to issue the tenant an invoice 4 for utilities, and the tenant will be able to apply tax deductions.
Example 3
Let's use the condition of example 2. Let's assume that compensation for utility bills is collected from the tenant with the allocation of VAT. Moreover, this is directly stated in the contract, and the lessor also issues a corresponding invoice with VAT included.
At the end of May 2011, Pharaon LLC handed over the following documents to the tenant:
- service acceptance certificate, which reflects two items: “Services for providing property for rent in May 2011 - 23,600 rubles. (including VAT 3600 rubles)” and “Compensation for consumed utilities for May 2011 - 4720 rubles. (including VAT 720 rubles).” The act is accompanied by a calculation of the distribution of utility payments and copies of documents from supplying organizations;
- invoices for services for the provision of property for rent in May 2011 for a total amount of 23,600 rubles. (including VAT of 3,600 rubles) and for reimbursement of utility bills in the amount of 4,720 rubles. (including VAT 720 rub.).
In May 2011, the lessor calculated VAT on the sale of services in the amount of 4,320 rubles. (3600 rubles + 720 rubles), accepted for deduction the “input” VAT on the services of supplying organizations in the amount of 1260 rubles. In tax accounting, he reflected the rent in income without VAT - 20,000 rubles. and compensation for utility bills without VAT - 4,000 rubles. (4720 rubles - 720 rubles), expenses include utility bills in the amount of 7000 rubles. (8260 rub. – 1260 rub.).
In May 2011, the tenant accepted for deduction the amount of “input” VAT presented on rental payments - 3,600 rubles. and for reimbursement of utilities - 720 rubles. And in tax accounting I included the cost of rent in expenses - 20,000 rubles. and the amount of compensation for utility bills - 4000 rubles.
Position of arbitration courts
The legality of the tenant's deduction of “input” VAT on utilities, even if the amount of compensation is not included in the rent, is also confirmed by arbitration courts.
Positive arbitration practice developed after the release of decisions of the Supreme Arbitration Court of the Russian Federation dated February 25, 2009 No. 12664/08 and dated March 10, 2009 No. 6219/08. By the way, the Federal Tax Service of Russia was also guided by these court decisions in paragraph 1 of letter No. ШС-22-3/86@.
In the situation dealt with in the first court decision, reimbursement of utilities was provided for in the lease agreement in addition to the rent; in the second situation, a separate agreement was signed between the tenant and the landlord, which provided for payment for consumed energy (as well as remuneration for the rental of provided electrical networks, appliances and installations).
Landlords re-issued to the tenant invoices presented by supplying organizations, in which VAT amounts were highlighted as a separate line. Landlords paid their bills to utility providers. Based on these invoices, tenants accepted for deduction “input” VAT on utilities.
Tax officials recognized tax deductions by tenants in terms of “input” VAT related to utility payments as unlawful, since landlords did not have the right to issue invoices for utility services. According to the inspectors, since there is a reimbursement of services (and not sales), these expenses are not related to rental payments and are not subject to VAT. In addition, the landlords were not the supplying organizations and they were not the ones who actually supplied the resources to the tenants.
The Supreme Arbitration Court of the Russian Federation took the side of taxpayers in both decisions under consideration. According to the court, utilities are inextricably linked with the provision of rental services (which, as a general rule, are recognized as transactions subject to value added tax) and, in fact, the reimbursement of utility payments is a variable part of the rent. Therefore, tenants had every right to deduct the amount of “input” VAT on utility bills, which, according to the terms of the agreement, are not included in the rent.
After the release of these decisions, the courts in the regions adhere to the position of the Supreme Arbitration Court of the Russian Federation. Examples of court decisions in favor of deducting from the tenant amounts of value added tax on utility costs reimbursed in addition to rent are decisions of the Federal Antimonopoly Service of the Volga-Vyatka District dated November 23, 2009 No. A17-7511/2008 5, Federal Antimonopoly Service of the West Siberian District dated April 28, 2010 No. A45-8185/2009, FAS Moscow District dated October 12, 2010 No. KA-A40/11806-10, dated December 16, 2009 No. KA-A40/14059-09, FAS Northwestern District dated August 24, 2010 No. A56-44025/ 2009, Federal Antimonopoly Service of the North Caucasus District dated 04/27/2010
No. A32-24396/2007-12/363-2009-58/218, No. A53-6624/2008 dated November 20, 2009, Federal Antimonopoly Service of the Central District dated September 3, 2009 No. A09-12322/2008, etc.
Payment of utilities based on an intermediary agreement with the landlord
There is a third way to process compensation for utility bills. It is discussed in paragraph 2 of paragraph 3 of the letter of the Federal Tax Service of Russia No. ШС-22-3/86@. Thus, the landlord and the tenant have the right to enter into an intermediary agreement (or), according to which the landlord acts as an intermediary for the purchase of utilities and other similar services by the tenant. Under such agreements, the lessor represents the interests of the lessee in relations with supply organizations. Subsequently, the landlord, as an intermediary, re-invoices received from utility providers to the tenant, with VAT amounts allocated to them.
Clause 6 of the information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated November 17, 2004 No. 85 states that a transaction completed before the establishment of relations under a commission agreement cannot be recognized as concluded in pursuance of the instructions of the principal. As a rule, contracts with supplying organizations are concluded by the lessor before executing intermediary agreements with tenants. Do any tax risks arise in connection with the above opinion of the Supreme Arbitration Court of the Russian Federation? In a similar situation, dealt with in the resolution of the Federal Antimonopoly Service of the West Siberian District dated October 26, 2009 No. A03-10350/2007, the tax authority refused to deduct the “input” VAT on utilities to the tenant. According to tax authorities, the electricity supply agreement between the lessor and the supplying organization cannot be considered concluded in pursuance of an agency agreement between the lessor and the tenant. The court rejected this argument of the inspectorate, since the contract with the supplying organization during the disputed period was valid (extended), lease agreements and agency agreements were not declared invalid in the prescribed manner, electricity was supplied to the taxpayer, was capitalized and paid for by it. The decision was made in favor of the taxpayer.
Regardless of the type of intermediary agreement, the tenant must pay remuneration to the intermediary for his services in the manner established in the agreement (Articles 991 and 1006 of the Civil Code of the Russian Federation). And the intermediary landlord is obliged to calculate VAT on the cost of the intermediary fee (clause 1 of Article 156 of the Tax Code of the Russian Federation). The agreement concluded between the tenant and the landlord must comply with the requirements for intermediary agreements by civil law (Chapters 51 and 52 of the Civil Code of the Russian Federation).
Thus, the agreement necessarily stipulates that the commission agent or agent (also known as the lessor) undertakes, on behalf of the other party (in this case, the tenant), to pay for utility services on his own behalf, but at the expense of the principal or principal.
Value added tax for landlord and tenant
Landlord calculates VAT on the cost of rent and on the amount of its intermediary remuneration. It does not include the amount of reimbursement for utilities in the VAT tax base. The lessor has the right to deduct VAT only on that part of the utilities that he himself consumed.
After receiving documents from the supplying organizations confirming the costs of utilities and the corresponding invoices, the lessor issues an invoice indicating the amount of resources consumed by the tenant. The invoice is recorded by the lessor only in the invoice journal. The lessee records this invoice in both the invoices received journal and the purchase ledger.
How to issue invoices for intermediary transactions is explained in the letter of the Federal Tax Service of Russia dated 02/04/2010 No. ШС-22-3/85@. The intermediary landlord, when issuing an invoice for the amount of utility payments, in line 1 must indicate the date of the invoice, corresponding to the date of the invoice drawn up by the supplying organization. Lines 2, 2a and 2b of this document indicate the name and location of the utility service provider in accordance with the constituent documents, its tax identification number and checkpoint.
In addition, the landlord issues invoices to the tenant for rent and brokerage fees with the allocation of VAT in them, draws up the corresponding entries in the journal of issued invoices and in the sales book.
Tenant in accordance with the generally established procedure, registers the above invoices in the journal of received invoices and in the purchase book. In addition, the tenant, having received correctly executed invoices from the lessor, has the right to deduct the amount of VAT charged on the cost of rent, on the amount of consumed utilities and on the cost of intermediary remuneration, but subject to the mandatory requirements of paragraph 2 of Article 171 and paragraph 1 Article 172 of the Tax Code of the Russian Federation.
Example 4
Alpha LLC leases premises from Omega LLC. The rent amount is RUB 25,960. per month (including VAT 3960 rub.). In addition, the parties entered into an agency agreement, according to which Omega LLC, on its own behalf, but in the interests and at the expense of Alpha LLC, purchases utilities from specialized organizations. For this, the tenant pays the landlord a monthly agency fee in the amount of 9,440 rubles. (including VAT RUB 1,440). In May 2011, the total cost of utilities for the premises amounted to 16,520 rubles. (including VAT 2520 rub.). In accordance with the calculation, the cost of resources consumed by the tenant is 10,620 rubles. (including VAT 1620 rubles), other expenses are the costs of the lessor.
At the end of May 2011, the landlord issued three invoices: for rental services, for the cost of utilities paid for the tenant, and for intermediary fees. Omega LLC also compiled an agent’s report for a given month and attached to it copies of the invoices of the supplying organizations and a calculation of the resources consumed by the tenant.
The lessor calculated VAT on sales (rent and intermediary fees) in the amount of 5,400 rubles. (3960 rubles + 1440 rubles), accepted for deduction the “input” VAT on utilities consumed by himself in the amount of 900 rubles. (2520 rub. – 1620 rub.). In tax accounting, the income of Omega LLC amounted to 30,000 rubles. (RUB 25,960 – RUB 3,960 + RUB 9,440 – RUB 1,440), and expenses - RUB 5,000. (16,520 rubles – 10,620 rubles – 900 rubles).
The tenant accepted for deduction the “input” VAT on rent, intermediary fees and overbilled utility costs in the total amount of 7,020 rubles. (3960 rubles + 1620 rubles + 1440 rubles), and also included 39,000 rubles in expenses when taxing profits. (30,000 rub. + 10,620 rub. – 1,620 rub.).
If the lessor is the service provider
The landlord, in addition to providing premises for rent, can independently provide the tenant with other services. For example, for the maintenance of rented premises (including their security, cleaning). The landlord’s obligation to provide such services can be stipulated in the lease agreement or a separate agreement can be concluded. At the end of the month, the fact of provision of services must be confirmed by an acceptance certificate.
The lessor, as the actual performer of services, calculates VAT upon their implementation and issues monthly invoices, registering them in the journal of issued invoices and the sales book. The tenant registers them in the journal of received invoices and the purchase book and accepts the amounts of “input” VAT for deduction in the generally established manner. Similar explanations are given in paragraph 1 of paragraph 3 of the letter of the Federal Tax Service of Russia No. ШС-22-3/86@.
Example 5
CJSC Vostok rents premises from LLC Zapad. Monthly rent - 17,700 rubles. (including VAT 2700 rub.). In accordance with a separate agreement, LLC “Zapad” provides LLC “Vostok” with operational services, the cost of which is 5900 rubles. (including VAT 900 rub.) monthly. The calculation of taxes when compensating for utility bills is not considered in this example. Every month, Zapad LLC issues the following documents to Vostok JSC:
- service acceptance certificate and invoice for rent in the amount of 17,700 rubles. (including VAT 2700 rub.);
- service acceptance certificate and invoice for operational services in the amount of 5,900 rubles. (including VAT 900 rub.).
The lessor monthly calculates VAT on sales in the amount of 3,600 rubles. (2,700 rubles + 900 rubles), includes 20,000 rubles in income in tax accounting. (RUB 17,700 – RUB 2,700 + RUB 5,900 – RUB 900).
The tenant deducts “input” VAT in the total amount of 3,600 rubles, and in tax accounting includes rental payments and costs of operating services in the amount of 20,000 rubles.
Letter of the Ministry of Finance of Russia dated 09/06/2005 No. 07-05-06/234.
The question of the need to reflect in tax accounting income and expenses costs that are re-invoiced without an intermediary agreement is controversial.
Lines 2, 2a and 2b of the invoice indicate the name, location of the lessor, his tax identification number and checkpoint.
By decision of the Supreme Arbitration Court of the Russian Federation dated March 25, 2010 No. VAS-3098/10, the transfer of this case to the Presidium of the Supreme Arbitration Court of the Russian Federation for review in the supervisory order was refused.
The premises are leased under a deed (or other similar document) signed by both parties (clause 1 of Article 655 of the Civil Code of the Russian Federation).
The acceptance certificate for rental services must contain all the details required for primary accounting documents in accordance with paragraph 2 of Article 9 of the Federal Law of November 21, 1996 No. 129-FZ “On Accounting”.
In the tax accounting of the lessor, the amount of rent is included in income from sales or non-operating income, depending on whether this activity is the main one and carried out on a systematic basis - this is stated in the letter of the Ministry of Finance of Russia dated 02/07/2011 No. 03-03-06/ 1/74
Often a separate agreement for compensation of utilities is concluded when renting municipal property.
According to the Supreme Arbitration Court of the Russian Federation, compensation for utility bills is a variable rent, regardless of the payment procedure used by the parties to the lease agreement (included in rental payments, compensated in excess of the rent, including on the basis of a separate agreement).
The intermediary landlord must provide the tenant with a report and documentary evidence of utility costs incurred in favor of the latter (Articles 999 and 1008 of the Civil Code of the Russian Federation). If utility costs are distributed between several landlords and (or) tenants, the calculation on the basis of which this distribution was made should also be provided.
The norms of the Tax Code of the Russian Federation do not prohibit the inclusion of additional information in invoices. Therefore, in the invoice for utilities, the landlord-intermediary has the right to additionally indicate his name indicating that he is an intermediary. Basis - letter of the Ministry of Finance of Russia dated 02/07/2011 No. 03-07-09/04.
The whole difficulty of paying for what is provided lies in the fact that the landlord receives invoices for their payment. They include calculations for payment of services for all available premises, including rented ones.
How to collect utility bills from the tenant in this case, and in what amount, is up to the tenant and the landlord to decide.
Utility payment options
Most often, two methods are used to reimburse the tenant for utility bills.
In the first case, the lessor contributes rent clause consisting of 2 parts:
The lessor makes calculation of average monthly amount, contributed to pay for utilities of the rented premises.
Such calculations can be made based on the readings of installed devices or metering units.
It can be made based on the area of the rented premises, or on the total power of the energy-consuming devices located in it.
It can also include calculations of cold and hot water consumed, taking into account the expected number of people living in this room.
The second way is to draw up an appropriate attachments to the lease agreement, or under the main agreement, in addition to the fixed payment for the leased item.
It is this agreement that we will dwell on in more detail.
Terms of the additional agreement
Using the rented premises, the tenant is obliged to maintain it in proper technical and sanitary condition, and bear the corresponding expenses.
Naturally, this is impossible without the consumption of various utilities, and since the owner of the premises is the landlord, he also has to pay the bills for the services provided.
Even based on simple logic, the tenant is obliged to bear an appropriate share of the costs of utility bills.
It is precisely to ensure that no disagreements arise on this matter that such a thorough approach to the design of the method and form of payment for compensation of these costs has been developed.
For some reason, one of the parties to the lease agreement may not be satisfied with the option indicating the method and amount of payment for consumed utilities in the lease agreement.
Then by agreement of the parties a separate agreement may be concluded for reimbursement of utilities by the tenant.
The agreement itself is filled out on a standard form, and is a document that has legal force, obliging both parties who signed it to strictly adhere to the conditions outlined in it.
Like any similar document, the agreement must be correctly drawn up and accurately filled out. Corrections, strikethroughs and other blots are not allowed.
The agreement is drawn up taking into account the opinions of both parties and sealed with their signatures. It is from the moment this document is signed that its action is considered legal. The document is being drawn up in duplicate, one for each of the signatories of this agreement.
Drawing up the text of the agreement
At the beginning of the document, both parties participating in the conclusion of this agreement are indicated. And then follow the paragraphs that reveal all the important points of the document.
The first point is indicated subject of the agreement. In this case, this will be reimbursement of utility costs by the tenant to the second party to the contract.
Here you need to list the items for which compensation will be due.
The following paragraph should include the rights and obligations of the parties:
- In relation to the tenant must be registered terms of monthly payment for services the tenant has the obligation to promptly notify the landlord about upcoming changes in his work related to the consumption of electricity and other resources. And also the obligation not to make any redevelopment of the premises and not to make changes to existing communications without the written consent of the owner of the premises. A clause regarding compensation for damage caused by the tenant’s improper actions or negligence is required.
- The lessor will have to, within the agreed time frame, issue utility bills to the tenant, compiled according to calculations deciphered in a special annex to this agreement. His responsibilities should also include timely notification of the tenant about the change. In addition, responsibility for maintaining utility networks in proper condition and eliminating regulations issued by regulatory authorities is also the responsibility of the owner of the premises.
The presented list of rights and obligations can be supplemented with various items that the parties will consider significant.
In addition to the above provisions, the essential terms of the agreement are:
Certain nuances and features of the contract
Since such an agreement has legal force from the moment it is signed, failure to comply with it by one of the parties can lead to the most unpleasant consequences.
Not only that the contract can be terminated early(the conditions for its termination must be specified in detail in the document and comply with current legislation), certain consequences of non-compliance with the clauses of the agreement may become the subject of legal proceedings.
There are also sanctions applied in case delays in making the required amounts to reimburse costs to pay for the provided utilities within the agreed time frame. They are stipulated by the relevant articles of the country's Civil Code.
As for the importance or special significance of individual clauses of the document, they are all equally significant, and any of them should not be excluded from the contract.
Both parties must approach the drafting of each clause of the contract very seriously. After all, how productive and cloudless the relationship between the tenant and the landlord will be will depend on how much they correspond to the interests of each of the parties to the agreement.
Changes in the housing and communal services sector at the federal level
The videos examine the current nuances of the reorganization of the Ministry of Housing and Communal Services and Construction in Russia. Changes at the level of federal legislation are insignificant; they will affect only management organizations.