What are we talking about? Advertising expenses are a category of tax and accounting that must be registered and submitted to regulatory authorities. Some advertising expenses reduce tax payments, but it is important for an entrepreneur to determine them correctly.
What to pay attention to? There is also a difference in accounting: some expenses are reflected in accounting documents (usually non-standardized), others - in tax documents. Such nuances cause difficulties for beginning businessmen.
The article explains:
The concept of advertising costs
Types of advertising expenses in tax accounting
Advertising paraguay email list expenses in different tax systems
The nuances of advertising expenses in taxation
Controversial advertising costs
Documents to confirm advertising expenses
Advertising expenses in accounting
Accounting for advertising expenses when profit increases in a period
Frequently Asked Questions About Advertising Costs
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The concept of advertising costs
Federal Law No. 38-FZ of 13.03.2006 establishes a list of promotion objects. These include the product itself, its or the company's means of individualization, the manufacturer, the seller, the results of intellectual activity or the event. What is meant by this?
Article 1225 of the Civil Code of the Russian Federation recognizes trademarks and service marks, company names, industrial designs, inventions, computer programs and databases as the results of intellectual activity and means of individualization of a company.
Advertising is distributed using various means. In addition to television, radio, print and electronic media, transport, mail, and numerous street placement options are used for this - billboards, banners, banners, special structures in the form of pillars, and so on. All permitted means of advertising distribution are listed in Federal Law No. 38-FZ of 13.03.2006 and the FAS letter of 20.02.2018 No. AK/11383/18.
Advertising expenses
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The most popular ways to inform consumers are:
an advertising video or audio clip that interrupts a television or radio program;
a banner placed on a third-party website on the Internet;
advertisements in print or electronic media;
inscriptions and images on public transport vehicles, bus stops;
advertising on stands located in the metro (letter from the Ministry of Finance dated 16.10.2008 No. 03-03-06/1/588);
product samples presented in shop windows, at fair stands, in showrooms;
direct mail advertising – delivery of catalogues to mailboxes (letter from the Ministry of Finance dated 03.11.2010 No. 03-03-06/1/688);
no-lose lotteries that stimulate sales (letter from the Ministry of Economic Development dated 07.04.2014 No. D09i-451, letter from the Federal Tax Service dated 21.04.2014 No. ED-4-2/7598).
The method chosen by a company to promote its goods or services directly affects the procedure for accounting for marketing expenses. If the method used does not correspond to the concept of advertising reflected in the law, the recording of expenses is carried out according to special rules.