Frequently Asked Questions About Advertising Costs
Posted: Sat Feb 01, 2025 10:09 am
Advertising expenses for manufactured (purchased) and/or sold goods are subject to accounting as part of other expenses. Do both parties – the seller (supplier) and the buyer (retail chain) – have the right to account for advertising expenses for the same goods that are manufactured by the supplier and sold by the chain of stores to the retail buyer?
Yes. Subparagraph 28 of paragraph 1 of Article 264 of the Tax Code directly states that advertising costs are taken into account not only by the manufacturer, but also by the trading organization.
A retail chain incurred expenses to create videos to be broadcast in its stores on TVs located in the sales areas. Are such expenses subject to regulation?
Paragraphs 2–4 of clause senegal email list 4 of Article 264 of the Tax Code of the Russian Federation contain an exhaustive list of non-standardized expenses. There is no such item as showing commercials in sales areas. Broadcasting is carried out through the internal network of stores, which has nothing to do with either the mass media or the information and communication networks referred to in Federal Law No. 149-FZ of 27.07.2006. Consequently, tax authorities may have claims if the organization classifies such expenses as non-standardized.
Information about the company's goods or services is posted on buses, trolleybuses and trams. Is this type of advertising considered outdoor?
Clause 1 of Article 19 of the Federal Law "On Advertising" dated 13.03.2006 No. 38-FZ provides a list of objects on which placement makes promotion outdoor. Public transport is not on this list. Consequently, when taxing, the costs of this type of informing consumers are taken into account only within the established limit.
A company on the OSN participates in an exhibition and fair and holds a prize draw in which everyone who purchased its products participates. When transferring promotional goods, the organization accrues VAT. Does it have the right to include the amount of value added tax in promotional expenses?
Costs of purchasing or manufacturing prizes intended for participants in drawings within the framework of marketing campaigns are subject to accounting within the limits of the standard. VAT accrued on prizes transferred to winners is accounted for in the same manner as part of advertising costs.
Errors in the report on promotion expenses may result in additional inspection by regulatory authorities. To avoid shortcomings in determining the tax base, accounting should be entrusted to an experienced accountant or an outsourcing company.
Yes. Subparagraph 28 of paragraph 1 of Article 264 of the Tax Code directly states that advertising costs are taken into account not only by the manufacturer, but also by the trading organization.
A retail chain incurred expenses to create videos to be broadcast in its stores on TVs located in the sales areas. Are such expenses subject to regulation?
Paragraphs 2–4 of clause senegal email list 4 of Article 264 of the Tax Code of the Russian Federation contain an exhaustive list of non-standardized expenses. There is no such item as showing commercials in sales areas. Broadcasting is carried out through the internal network of stores, which has nothing to do with either the mass media or the information and communication networks referred to in Federal Law No. 149-FZ of 27.07.2006. Consequently, tax authorities may have claims if the organization classifies such expenses as non-standardized.
Information about the company's goods or services is posted on buses, trolleybuses and trams. Is this type of advertising considered outdoor?
Clause 1 of Article 19 of the Federal Law "On Advertising" dated 13.03.2006 No. 38-FZ provides a list of objects on which placement makes promotion outdoor. Public transport is not on this list. Consequently, when taxing, the costs of this type of informing consumers are taken into account only within the established limit.
A company on the OSN participates in an exhibition and fair and holds a prize draw in which everyone who purchased its products participates. When transferring promotional goods, the organization accrues VAT. Does it have the right to include the amount of value added tax in promotional expenses?
Costs of purchasing or manufacturing prizes intended for participants in drawings within the framework of marketing campaigns are subject to accounting within the limits of the standard. VAT accrued on prizes transferred to winners is accounted for in the same manner as part of advertising costs.
Errors in the report on promotion expenses may result in additional inspection by regulatory authorities. To avoid shortcomings in determining the tax base, accounting should be entrusted to an experienced accountant or an outsourcing company.