“Change in the contract price after the introduction of VAT” — Valeria Dementievskaya for the Legal Information Agency

Legal Information Agency — Can a company that has become a VAT payer demand an increase in the price fixed in a previously concluded contract?

Valeria Dementievskaya, Advisor to the Tax Practice of the Prime Advice Consulting Group:

Since January 1, companies applying the simplified taxation system, whose annual income exceeds 60 million rubles, have become VAT payers. If the price of goods, works or services was fixed without VAT in previously concluded lasting contracts, a change in tax legislation is not a reason for its increase. This approach is confirmed, among other things, by judicial practice.

In general, the price of the transaction is in the sphere of private law regulation - agreements reached by the parties. This applies to relations between private companies, as well as government contracts (concluded in accordance with Law No. 44-FZ) and corporate orders (Law No. 223-FZ).

In the context of rapidly changing tax legislation, in order to prevent such disputes, it is advisable to include provisions in the terms of new contracts that provide for the possibility of increasing, reducing or using a fixed price in the event of a change in tax conditions.