Article 157. Peculiarities of Determination of Tax Base and Peculiarities of Payment of Tax upon the Accomplishment of Carriage and Sale of International Communications Services

1. In case of performance of carriage (except for suburban carriage according to paragraph three of Subitem 7 of Item 2 of Article 149 of the present Code) of passengers, luggage, cargo, luggage-freight or mail by railway, motor vehicle, air, sea or river transport, the tax base shall be defined as the cost of carriage (without inclusion of the tax and the sales tax). Upon the accomplishment of air carriage, the boundaries of the territory of the Russian Federation shall be defined at the starting and destination points of the air trip.

2. In case of the sale of travel documents at reduced rates, the tax base is calculated on the basis of such reduced rates.

3. The provisions of the present Article shall be applied taking into account the provisions of Item 1 of Article 164 of the present Code and shall not apply to the carriage specified in Subitem 7 of Item 2 of Article 149 of the present Code, nor to the carriage stipulated by international treaties (agreements).

4. When prior to the beginning of a trip, cash is returned to customers for unused travel documents, the returnable amount shall include the entire amount of the tax. If the passengers turn in the travel documents in transit due to termination of the trip, the returnable amount shall include the amount of the tax at the rate corresponding to the distance not yet covered by the passengers. In such a case when tax base is being assessed no account shall be taken of the amounts actually refunded to the passengers.

5. In case of a sale of international communications services, the tax base shall be defined as the proceeds (without inclusion into it of the tax and the sales tax) received by the communications organization from the sale of aforesaid services and marked down by the amount transferred to:

6. In case of a sale of international communication services the amounts received by telecommunication agencies as a result of selling said services to foreign purchasers shall not be accounted, when determining their tax base.

Article 158. Peculiarities of Determination of Tax Base in Case of Sale of an Enterprise as a Whole Property Complex

1. The tax base in case of sale of an enterprise as a whole property complex shall be defined separately on each type of asset of the enterprise.

2. If the price at which the enterprise is sold turned out to be below the book value of sold assets, a correction factor shall be applied for the purposes of taxation which is computed as the relation of the selling price of the enterprise to the book value of said assets.

If the price at which the enterprise is sold turned out to be above the book value of sold assets, a correction factor shall be applied for the purposes of taxation computed as the relation of the selling price of the enterprise marked down by the book value of debt receivable, (and by the cost of securities if no decision was made to revalue such) to the book value of sold assets and marked down by the book value of debt receivable (and for the cost of securities if no decision was made to revalue such) is accepted. In this case the correction factor shall not be applied to the amount of debt receivable (and the cost of securities).

3. For the purposes of taxation, the price of each type of assets shall be accepted as the product of its book value and the correction factor.

4. The vendor of the enterprise shall draw up a summary invoice which is to state in the column "Total, including VAT" the price at which the enterprise was sold. In so doing, it is necessary to make separate entries in the summary invoice for fixed assets, intangible assets, other types of assets of industrial and non-productive purpose, the amount of debt receivable, and the value of securities and other items of assets of the balance sheet. The summary invoice shall enclose the statement of inventory taking.

In the summary invoice, the price of each type of asset shall be accepted as the product of its book value into a correction factor.

For each type of asset whose sale is taxed, it is necessary to state in the columns "Rate of VAT" and "Amount of VAT" the corresponding settlement tax rate of 16.67 per cent and the amount of the tax defined as the percentage share of the tax base corresponding to the tax rate of 16.67 per cent.

Article 159. The Procedure for the Determination of Tax Base When Performing Operations on the Transfer of Goods (Performance of Works, Rendering of Services) for Own Needs and the Execution of Civil and Erection Works for One's Own Consumption

1. When a taxpayer transfers goods (performs works, renders services) for their own needs, expenses under which are not accepted for deduction (in particular, through depreciation deductions) in the calculation of tax levied on profit of organizations, the tax base shall be defined as the cost of these goods (works, services) estimated on the basis of sale prices of identical (and in their absence, homogeneous) goods (similar works, services) effective in the previous tax period, and in their absence - on the basis of market prices, taking into account excise taxes (for excisable goods and excisable mineral raw material), and without inclusion into such tax, and the sales tax.

2. In case of performance of civil and erection works for one's own consumption, the tax base shall be defined as the cost of performed works calculated on the basis of all actual expenses borne by the taxpayer in their performance.

Article 160. The Procedure for Determination of Tax Base When Importing Goods to the Customs Territory of the Russian Federation

1. In case of import of goods (except for goods specified in Items 3 and 5 of the present Article and with allowance for Articles 150 - 152 of the present Code) into the customs territory of the Russian Federation, the tax base shall be defined as the amount of:

1) the customs value of these goods;

2) payable customs duty;

3) payable excises (on excisable goods and excisable mineral raw materials).

2. In case of import to the customs territory of the Russian Federation of goods which had been previously exported from it to be processed outside the customs territory of the Russian Federation according to the customs treatment of outward processing, the tax base shall be defined as the cost of such processing.

3. The tax base shall be defined separately for each group of goods of the same name, type and brand imported to the customs territory of the Russian Federation.

If a consignment of goods imported into the customs territory of the Russian Federation contains both excisable goods (excisable mineral raw materials) and non-excisable goods and mineral raw materials, the tax base shall be defined separately for each group of aforesaid goods. The tax base shall be defined in a similar order if a consignment of goods imported to the customs territory of the Russian Federation contains products of processing of goods exported earlier from the customs territory of the Russian Federation for processing outside the customs territory of the Russian Federation.

4. If according to an international treaty the Russian Federation has cancelled the customs control and customs clearance for goods imported to the territory of the Russian Federation, the tax base shall be defined as the amount of:

the cost of purchased goods, including the cost of delivery of aforesaid goods up to the border of the Russian Federation;

payable excise taxes (for excisable goods and excisable mineral raw material).

Article 161. Peculiarities of Determination of Tax Base by Tax Agents

1. In case of sale of goods (works, services) whose place of sale is the territory of the Russian Federation, for foreign persons being taxpayers who have not registered with the tax authorities as the taxpayers, the tax base shall be defined as the sum of income from sale of these goods (works, services) taking into account the tax.

The tax base shall be defined separately in case of performance of each operation of sale of goods (works, services) on the territory of the Russian Federation taking into account the present Chapter.

2. The tax base specified in Item 1 of the present Article shall be defined by tax agents. In so doing, the tax agents shall be recognized as organisations and individual entrepreneurs registered with the tax authorities, who purchase on the territory of the Russian Federation of goods (works, services) from the foreign persons indicated in Item 1 of this Article. The tax agents are to compute, withhold from the taxpayer, and pay to the budget the relevant amount of tax regardless of whether they execute obligations of the taxpayer associated with the calculation and payment of tax and also other obligations established by the present Chapter.

3. When rendering on the territory of the Russian Federation services by bodies of public authority and government and bodies of local self-government relating to the hiring out of federal property, property, of constituent entities of the Russian Federation and municipal property the tax base shall be defined as the amount of rental taking into account the tax. In so doing, the tax base shall be defined by the tax agent separately for each leased item of property. In this case, leasers of the aforesaid property shall be recognized as tax agents. Said persons are to calculate and withhold from the incomes paid to the lessor and to pay to the budget the appropriate amount of the tax.

4. When selling on the territory of the Russian Federation confiscated property, ownerless valuables, treasures and bought valuables, as well as the valuables transferred to the State by heirship, the tax base shall be determined reasoning from the cost of sold property (valuables) subject to the provisions of Article 40 of this Code, subject to the tax, excise duties (as regards excisable goods and excisable mineral raw materials) less the sales tax. In this case, the bodies, organizations or individual businessmen authorized to sell said property shall be recognized as tax agents.

Article 162. Peculiarities of Determination of Tax Base Taking into Account Amounts Associated with Settlements for the Payment for Goods (Works, Services)

1. The tax base determined according to Articles 153 - 158 of the present Code shall be increased by the following amounts:

1) advance or other payments received against future deliveries of goods, performance of works or rendering of services.

Provisions of the present Subitem shall not apply to advance payments and other payments received to offset the forthcoming delivery of goods, carrying out works and rendering services, taxable at the tax rate of zero per cent in compliance with Subitems 1 and 5 of Item 1 of the present Code, whose production cycle lasts more than six months (as per the list and in the procedure defined by the Government of the Russian Federation);

2) received amounts for sold goods (works, services) in the form of financial assistance and designed to replenish special purpose funds, towards the increase of incomes, or otherwise associated with payment for sold goods (works, services);

3) amounts received in the form of interest (discount) on the bonds received as offsetting payment for sold goods (works, services) and bills of exchange, interest under credits against goods in the part exceeding the interest rate computed on the basis of the refinancing rates of the Central Bank of the Russian Federation, effective in the periods for which interest is being calculated;

4) indemnities received under contracts of insurance of risk of default on contractual obligations by a contractor of the insurant creditor if under the insured contractual obligations the insurant is to deliver goods (works, services) whose sale is recognized as an item of taxation according to Article 146 of the present Code;

2. Provisions of Item 1 of the present Article shall not cover operations of the sale of goods (works, services) which are not subject to taxation (are released from taxation), as well as in respect of goods (works and services) which are not sold in compliance with Articles 147 and 148 of this Code on the territory of the Russian Federation.

Article 163. Tax Period

1. Tax period and likewise for the taxpayers discharging the duties of tax agents, hereinafter referred to as tax agents) shall be established as a calendar month, except as otherwise established by Item 2 of the present article.

2. For taxpayers (tax agents) having monthly amounts of proceeds from the sale of goods (works, services) over the quarter, with no account taken of the tax and the sales tax, not exceeding one million roubles the tax period shall be set as a quarter.