Ministry of Finance: PI do not pay VAT on the sale of property that was not used in entrepreneurial activity

If the property of the individual entrepreneur is not used in business, then no need to pay at its implementation of the value-added tax. Such an opinion was expressed by the Russian Finance Ministry experts in a letter dated 28.10.16 ¹ 03-07-14 / 63214.

As is known, the object of taxation the value added tax are recognized as operations involving the sale of goods (works, services) on the territory of the Russian Federation (cop. 1 para. 1, Art. 146 of the Tax Code). VAT payers are organizations and individual entrepreneurs. Individuals who do not have the status of SP, VAT payers are not recognized (para. 1, Art. 143 of the Tax Code).

On this basis, the Ministry of Finance made the following conclusion. Property Selling individual entrepreneurs subject to VAT in the general procedure. But if the realizable property was not used for the business carried on by an individual as a PI, then the sale of such property to the value added tax is not calculated.