The need to return VAT from the budget often arises for enterprises, and although this operation is sometimes extremely difficult to carry out, an accountant has to deal with it from time to time.

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What is a VAT refund from the budget?

A similar need arises if, while engaged in trading or any other business activity, the company makes payments to the budget for VAT. When contacting suppliers of goods and services, the company pays VAT on the purchased mass of goods. By selling them, the company pays tax on the mass of goods sold to the budget.

If the amount of sales tax exceeds the VAT on purchases, the company should pay extra to the budget; if, on the contrary, it is less, the question arises of how to reimburse the VAT from the budget. Let's try to figure out what steps should be taken to achieve a tax refund, what regulatory documents regulate these actions, and determine the procedure for these actions.

Normative base

The regulatory framework for determining the procedure for returning VAT overpaid to the budget is quite extensive, but the rules for reimbursement are quite briefly and clearly stated in Articles 172,173, 176 of the Tax Code of the Russian Federation.

However, in practice, the return procedure is much more difficult. But by adhering to the specified algorithm, this problem can be solved.

Illegal compensation

It should be especially noted that difficulties with VAT reimbursement from the budget arise, so to speak, due to inertia. Too many fraudulent tax refund schemes have been invented and successfully used, undermining the foundations of the state, only recently. Therefore, even today the position of the tax authorities remains virtually unchanged, consisting in the search for various formal grounds for refusing a VAT refund.

It should be remembered that an unfounded application for a tax refund from the budget is considered fraud.

This is punishable by the judicial authorities in accordance with the actual terms of imprisonment adopted under this article of the Criminal Code, even if a refusal to refund the tax is received from the Federal Tax Service.

Video about illegal VAT refunds

Who is eligible?

Any company can submit an application for a VAT refund from the budget. In the event that in the course of normal production and economic activities she has an excess of the amount of VAT paid and, therefore, has the right to submit a tax refund from the budget.

The legislation also provides for this procedure for innovative projects and start-ups.

Conditions

When deciding to begin work on tax refunds from the budget, and declaring this to the Federal Tax Service, the head and accountant of the organization should prepare for all kinds of on-site tax audits, during which the entire activity of the enterprise can be checked, and not just specific transactions that were the basis for the refund VAT.

A prerequisite for a tax refund is the presence of all documents confirming the declared amount. There are often cases when, as a result of such checks, instead of being allowed to refund VAT, a company receives an impressive additional tax charge. But such cases, as a rule, can only be explained by the unprofessionalism of the accountant.

Procedure for VAT refund from the budget

Theoretically, a simple procedure for carrying out a VAT refund occurs in several stages:

1. Drawing up a declaration and submitting it to the Federal Tax Service. This document will confirm the excess of the amount of deductions over the VAT accrued for the disputed period and the amount of the difference to be returned to the account.
2. Based on the submitted declaration, a tax desk audit is carried out. Its results will confirm or refute the validity of the amount indicated for return. The results of the inspection are documented in a report indicating the identified violations (if any). If no violations are established and a decision is made to reimburse funds to the taxpayer’s account, then such a decision must be made within 7 days from the date of completion of the inspection.
3. Upon receipt of permission for a budget VAT refund, which does not happen often at this stage, but still happens, the enterprise receives funds into the account or pays off other tax obligations from these amounts and operates as usual.

But we will consider the refusal of the Federal Tax Service at this stage. In case of refusal, if the violations are not established in the act or they are insignificant, or can be protested, an appeal is drawn up.

If the company does not agree with the results of the inspection, at the stage of signing the act, it should state its disagreements in the protocol to the inspection report and competently justify them.

This does not mean that disagreements will be accepted for consideration, but it is necessary to do so. Typically, the head of the Federal Tax Service, focusing on the violations identified by the inspection report, refuses VAT reimbursement. If you disagree with such a turn of events, you should appeal to a higher tax authority, as a rule, this is the Federal Tax Service of Russia for the subject of the Federation.

The absence of a result, i.e. a repeated refusal, will determine the next stage - going to court to appeal the decision. Such cases are considered in Arbitration, but for the decision to come into force, the company needs to win the courts of first and appellate instances. The Federal Tax Service has the right to cassate or appeal the decision to a supervisory authority.

If the final decision is made in favor of the taxpayer, he has the right to receive automatic budget compensation under the writ of execution. And in addition, demand from the Federal Tax Service to pay legal costs - the cost of state fees and legal services.

The company has the right to collect interest in case of delay in refunding the VAT amount if the deadlines are violated, if permission for the refund has been received. In this case, after 11 days from the date of completion of the audit, interest is accrued on the amount of tax refund for late payment at the refinancing rate of the Central Bank of the Russian Federation.

Scheme and timing of the procedure

The above-mentioned necessary stages of work to return tax to the company’s account fit into the same simple scheme:

• declaration with the provision of the necessary package of documents;
• familiarization with the inspection report, signing it and drawing up a protocol of disagreements, if necessary;
• appeal;
• decision of the Federal Migration Service;
• arbitration dispute;
• execution of court decisions.

The Federal Tax Service's decision to refuse or allow VAT refund must be made within 7 days from the moment the audit is completed, brought to the attention of the taxpayer in 10 days term.

Required documents

It is very important at the stage of preparation for submitting documentary evidence for VAT refund to determine the entire package of documents necessary to confirm the legality of the company’s claims.

Practice shows that the main requirement for document preparation is the impeccably correct and clear completion of all fields and details, the presence of signatures and seals.

Documents required:

• invoices received and issued;
• receipt and release invoices;
• documents confirming the fact of payment and sale - checks, payment orders;
• book of purchases and sales;
• log of invoices received and issued.

All documents must be correctly drawn up, signed, copied and their identity with the originals must be confirmed by the seal of the organization and the signature of an official.

Problems with VAT refunds and ways to solve them

If all the documents submitted to the tax office are correctly completed, the inspection report is sufficiently loyal, and permission to refund VAT from the budget has not been received, then the solution to the problem is clear - an appeal to a higher authority and a subsequent appeal to the court in case of repeated refusal.

Tax authorities' refusal is not always motivated. Often, the inspection report may not record a single violation, but a refusal to reimburse is received, and the actions of the Federal Tax Service have no logical justification. In this case, there is also a direct road to court.

Features of VAT refund from the budget for certain types of activities

Let's consider in which cases some adjustments have been made to the procedure for refunding VAT from the budget. It is impossible to recover VAT during construction; this can only be done after the object has been accepted for accounting.

When exporting

VAT refund when exporting goods outside of Russia has its own characteristics: when purchasing goods within the country, the company pays tax. Typically, VAT is paid on the difference between the VAT paid when purchasing a product and the VAT payable when it is sold.

When exporting goods outside of Russia, VAT is not paid. Consequently, when exporting, there is an overpayment of VAT to the budget. In this case, the VAT refund follows the usual refund algorithm with a slight difference.

The innovation is that the company should declare a VAT refund claim and undergo a desk audit of all activities for the quarter in which the company makes this claim.

When importing

Reimbursement of VAT on imports is carried out by companies that are VAT payers if:

• goods imported into the country are subject to VAT;
• payment of VAT is confirmed by impeccably executed primary accounting documents and a customs declaration.

Exempting a company from paying VAT or applying special tax regimes does not exempt the company from paying import VAT. But she will not be able to deduct the tax amount. In this case, goods are accepted for accounting at a cost that includes the amount of VAT.

VAT refund when purchasing real estate

If the purchasing company is a VAT payer, then the tax paid to the seller is reimbursed from the budget in accordance with the general procedure.

The necessary conditions for this are:

• acquisition of premises for carrying out activities subject to VAT;
• fact of payment for real estate;
• availability of a completed original invoice from the seller of the premises;
• the premises are recorded in the accounting registers.

If these conditions are met, the company has the right to fully deduct the VAT paid when purchasing the premises.

Accounting entries for VAT refunds

The right to a VAT refund is available to those enterprises and organizations that, based on the results of the accounting quarter, have an excess of the tax deduction amount over the amount of VAT payable. Today we will talk about the general procedure for VAT refund, and also consider the tax refund procedure in special cases.

Who is eligible for a tax refund?

Absolutely all business entities recognized as payers of this tax can return VAT. The right to return is legally secured both for legal entities of all forms of ownership, and for individuals in the form of individual entrepreneurs. The main criterion for a VAT refund is that the amount of tax payable, calculated and reflected in the declaration for the reporting period, is less than the amount of deductions accepted by the enterprise in the same period.

VAT refund procedure

According to the general procedure, the VAT refund procedure includes several stages, namely:

• submission of return documents;
• checking documents of the Federal Tax Service;
• making a decision on the results of the inspection;
• refund.

Stage 1. Submit documents to the fiscal service

In a situation where, when calculating VAT, you discovered that the amount of deductions exceeds the amount of VAT payable, then you have the right to claim a tax refund. To do this, you will need to contact the Federal Tax Service with the following documents:

• declaration with the specified amount to be refunded (deductions minus calculated tax);
• statement.

The last document is drawn up in any form; you can request the application form from the local Federal Tax Service. If you do not have debts or arrears for VAT or other federal taxes, then in the text of the document you need to state the need to transfer funds to the organization’s current account. If there is a tax arrears, indicate in the application that the funds will be offset against the debt. It is advisable to submit the application along with the declaration - this will speed up the refund procedure.

Stage 2. We are waiting for the results of the desk audit

After the necessary documents are submitted to the Federal Tax Service, tax service specialists conduct a desk audit. Be prepared for the fact that the fiscal service will demand additional documents confirming the amounts of transactions and the fact of their implementation. As a rule, these are invoices, but if requested, you are required to provide other papers - acts, invoices, contracts, etc. If the share of deductions accepted by your organization at the end of the quarter exceeds 89%, then the tax office will most likely require additional explanations from you in writing.

Upon completion of the audit, if no violations are found, the Federal Tax Service has 7 working days to process the results and make a decision regarding the tax refund. If violations have been identified, then a representative of the Federal Tax Service will draw up a corresponding act (no later than 10 days after the inspection). After another 5 days, a copy of the act will be sent to your organization for review and signing, after which you have 15 days to appeal the verification results (if necessary).

Stage 3. We receive a notification from the Federal Tax Service

If the desk audit does not reveal any violations, you will receive approval for the return 7 working days after its completion.

If the inspection reveals violations, then your organization has the right to raise objections to the inspection report. The inspection is given 10 days to consider these applications, after which the Federal Tax Service makes a final decision on the VAT refund. Depending on the results, the tax office will confirm your right to a full or partial tax refund, or will refuse to refund the entire amount specified in the declaration.

You will receive information about the decision made by the Federal Tax Service in the form of a notification. The document may be received in the form of a letter addressed to the head of the organization. The tax office also has the right to notify you of the decision electronically, using telecommunication channels.

Stage 4. Receive a refund or issue a credit

In a situation where the decision to return is made in your favor, the Federal Tax Service credits funds in the established amount to the company’s current account (specified in the application) (in whole or in part - according to the decision of the Federal Tax Service). The deadline for crediting funds is no later than the next day after the tax decision on the refund is made.

Perhaps your organization has a federal tax debt to the budget. In this case, the refund amount will be credited to repay the existing arrears. Please note that in this case, no decision is required on the part of the organization - if you have not paid off the tax debt, then the refund amount will be taken into account as arrears in any case. This rule also applies to existing debt for fines and penalties.

Tax refund in private cases

As described above, an organization may qualify for a tax refund if the amount of deductions taken exceeds the amount of recorded VAT. Below we will consider the procedure for deducting VAT in special cases: when importing, exporting, under leasing agreements.

Import

Let's talk separately about compensation for importing companies. If you carry out import operations, then your right to apply a deduction arises at the time of paying VAT at customs. If the amount of the accepted deduction is greater than the VAT accrued for the quarter, you can refund the tax according to the general procedure described above.

A deduction is possible only if the goods you import are recognized as purchased for transactions subject to VAT. In addition, when importing you need:

• accept the goods for accounting;
• have supporting documents confirming payment of VAT.

Please note: VAT can be deducted only when the goods were imported under one of the following customs procedures:

• the goods were imported/processed for domestic consumption on the territory of the Russian Federation;
• the goods are imported temporarily;
• the goods are processed outside the customs territory.

In order to confirm your right to deduction, you must have:

• contract;
• account (invoice);
• customs declaration on paper. If the document is issued electronically, make sure you have a copy on paper;
• payment documents.

Regarding confirmation of the fact of payment of VAT at customs, we note the following: documents certifying your right to deduction can be not only a payment order or a bank statement. You can also use a special confirmation form issued by a FCS employee.

Example No. 1.

In March 2016, Image JSC imported a batch of women’s shoes from Italy into the Russian Federation:

• delivery cost – 11,320 euros;
• “Image” received ownership of the shoes on 03/11/16;
• The euro exchange rate (notional) on the delivery date (03/11/16) was 77.98 rubles/euro;
• For imported shoes, Image will pay customs duties in the amount of 2,018 rubles.

When completing the import procedure, the Image accountant made the following calculations:

The “Image” accounting reflects the following:

Debit	Credit	Operation description	Sum	A document base
41	60	A batch of shoes from Italy has been received at the Image warehouse	RUR 882,734
41	76 Customs duties	The cost of imported shoes includes customs duties and fees (RUB 176,547 + RUB 2,018)	RUB 178,565	Agreement, customs declaration
19	68 VAT	The amount of VAT payable to customs is taken into account	190.671 rub.	Agreement, customs declaration
76 Customs duties	51	The amount of customs duties was transferred to the Federal Customs Service	RUB 178,565	P/order
68 VAT	51	VAT is transferred to customs	190.671 rub.	P/order
68 VAT	19	The amount of VAT to be deducted is reflected	190.671 rub.	Agreement, customs declaration, tax declaration

According to accounting data, in the 1st quarter of 2016, Image charged VAT in the amount of 124,620 rubles. Since the amount of the deduction (190,671 rubles) exceeds the amount of tax accruals, Image has the right to issue a VAT refund in the amount of 66,051 rubles. (RUB 190,671 – RUB 124,620) according to the general procedure.

Export

If your organization sells goods for export, then you can take advantage of the zero VAT rate and deduct the amount of input tax by confirming the fact of export. To do this you will need:

• prepare the necessary supporting documents;
• Before the expiration of six months from the date of export, submit a declaration and documents to the Federal Tax Service.

You have the right to apply for a VAT deduction on goods (work, services) that were used for export. Please pay attention to the correctness of the invoices provided to you by suppliers and performers. If there are errors or irregularities in the invoices, then you will be denied a deduction on this basis.

If your company not only exports products, but also sells goods on the territory of the Russian Federation, in order to receive a deduction for imports, you should take care of correct accounting: VAT amounts on export transactions must be taken into account separately from other transactions.

Example No. 2.

JSC Segment produces dishes and kitchen utensils. In April 2016, Segment sold goods in the amount of 1,255,614 rubles, VAT 191,534 rubles:

• through a distribution network in the Russian Federation - a batch of glasses and shot glasses in the amount of 802,880 rubles, VAT 18%;
• to a buyer from Croatia (Prima company) – a batch of cutlery in the amount of 452,734 rubles, VAT 0 rubles.

The accounting for the “Segment” reflects the amount of input VAT on operations related to the production of dishes and cutlery - 84,205 rubles.

In order to determine what amount of VAT is subject to deduction on export sales, the Segment accountant calculated the share of export revenue in total sales:

RUR 452,734 / (RUB 1,255,614 – RUB 191,534) = 0.43.

In this case, the amount of 84,205 rubles can be taken as a deduction for exports. * 0.43 = 36.209 rub.

For sales in the Russian Federation, 84,205 rubles are subject to deduction. – 36,209 rub. = 47.996 rub.

The deduction amounts were reflected in the declaration submitted by Segment to the Federal Tax Service for the 2nd quarter of 2016.

Leasing

Since services under leasing agreements are subject to VAT, input VAT from the lessor can be deducted. To apply for a deduction and refund of VAT (if the amount of the deduction exceeds the amount of the accrued tax), follow the general procedure:

• confirm the right to deduction with documents (invoices);
• reflect the amount of the deduction in the declaration for the quarter;
• if the deduction amount exceeds VAT charges, indicate the difference in the declaration and fill out an application for a tax refund.

Please note that not only the amount of payments for services rendered or their advance payment can be deducted. If a preliminary agreement has been concluded between you and the lessor, within the framework of which you have transferred an advance payment, but you have not received the leased item, the amount of VAT on the advance payment can also be deducted. The basis in this case will be an invoice issued by the lessor for the amount of the advance and a preliminary agreement.

Question and answer on the topic of VAT refund

Question : JSC “Standard” sells goods for export. In October 2016, Standard supplied upholstered furniture to Finland. The amount of input VAT on operations related to the production of furniture amounted to 3,472,500 rubles, of which 1,520,800 rubles. – VAT from the materials supplier Sokol LLC. As a result of an audit by the Federal Tax Service, it was revealed that Sokol did not transfer the amount of tax to the budget. Can “Standard” count on a deduction in the amount of 3,472,500 rubles? or will the refund be made minus VAT on transactions with Sokol?

Answer: The position of the tax authorities in this case is clear - “Standard” can issue a deduction only for the amount of VAT that is fully transferred by suppliers of goods and providers of services. This position has been confirmed by judicial practice. Since Sokol did not transfer the amount of 1,520,800 rubles. to the budget, “Standard” will receive a deduction in the amount of 1,951,700 rubles. (RUB 3,472,500 – RUB 1,520,800).

Question: When submitting a declaration for 1 sq. 2016 Symbol LLC indicated the amount to be reimbursed as RUB 304,870. In the declaration for 2 quarters. 2016, the Symbol accountant reflected the amount payable as 134,920 rubles. Does Symbol need to transfer the amount of VAT for Q2? 2016 (RUB 134,920), if the return notice for 1 sq. 2016 (RUB 304,870) not received from the Federal Tax Service?

Answer: Yes, “Symbol” must transfer the amount of 134,920 rubles. as payment of VAT for 2 quarters. 2016. Since the decision to return the amount for 1 sq. 2016 was not received by “Symbol”, the decision of the Federal Tax Service was not made, then there is no information about the refund in the tax database. In other words, before a decision is made and notification is received, “Symbol” is a tax debtor for both the 1st and 2nd quarter. 2016.

You can count on a VAT refund from the budget in the following situations.

Situation 1. You transferred more VAT to the budget than you should have. For example, according to the declaration, the amount of VAT payable was 1,000 rubles, and you replenished the budget (for example, due to an error in the payment slip) by 1,500 rubles. Then 500 rubles. - overpayment that can be returned from the budget.

Situation 2. The amount of input VAT accepted for deduction in a particular quarter exceeds the amount of accrued tax for the same period (clause 2 of Article 173 of the Tax Code of the Russian Federation). Let’s say the VAT reflected on line 118 of Section 3 of the Declaration (approved by Order of the Federal Tax Service dated October 29, 2014 No. ММВ-7-3/558@) amounted to 2,000 rubles, and the VAT on line 190 of Section 3 was 3,000 rubles. Accordingly, 1000 rubles. you can return from the budget.

Situation 3. You sold goods for export and were able to confirm the zero tax rate (clause 1, article 164, clause 1, 9, article 165 of the Tax Code of the Russian Federation). Since in this case VAT, calculated at a rate of 0%, is equal to 0, then all input VAT related to the export operation can be deducted and claimed for reimbursement from the budget (clause 1 of Article 176 of the Tax Code of the Russian Federation).

What you need to do to get a VAT refund

Situation	What is needed for a return (clause 6 of Article 78, Article 165, Article 176 of the Tax Code of the Russian Federation)
	Submit to the Federal Tax Service
	1) Submit a VAT return to the Federal Tax Service, in which the tax is claimed for reimbursement 2) Apply for a tax refund
	1) Submit a declaration with completed “export” sections for the quarter when a package of documents confirming the 0% VAT rate was collected 2) Submit, along with the declaration, documents confirming the right to apply the zero VAT rate. Ideally, documents should be collected within 180 calendar days from the date of shipment of goods for export (clause 9 of Article 165 of the Tax Code of the Russian Federation). Otherwise, you will have to charge and transfer VAT on export sales at the regular rate 3) Apply for a tax refund

You can download the tax refund application form.

See VAT return filing deadlines.

VAT will not be refunded without a desk audit

In situations 2 and 3, inspectors will necessarily conduct a desk audit of the VAT declaration, based on the results of which they will decide whether you have the right to a VAT refund (clause 8 of Article 88, Article 176 of the Tax Code of the Russian Federation). In accordance with the latest amendments, the maximum period for a desk audit specifically in relation to a VAT return is, in general, 2 months from the date of its submission (clause 2 of Article 88 of the Tax Code of the Russian Federation).

If the inspectors decide that you do not have the right to a tax refund, you can submit objections to the desk audit report within one month from the date of receipt of this report (clause 6 of Article 100 of the Tax Code of the Russian Federation).

If you don’t want to wait 2 months (while the check is being carried out), you can try to reimburse the VAT by application (Article 176.1 of the Tax Code of the Russian Federation). However, it is only available under certain conditions.

VAT refund deadline

If the desk audit was successful, the tax will be returned to you within the following terms.

Situation	Maximum period for return (clause 6 of article 78, clauses 2, 7, 8, 11.1 of article 176 of the Tax Code of the Russian Federation)
The overpayment arose due to amounts transferred to the budget in excess	1 month from the date of receipt by the Federal Tax Service of the tax refund application
The amount of deductions exceeds the amount of accrued VAT	- if the application for a refund was submitted before the Federal Tax Service made a decision on the refund, then 2 months and 12 working days from the date of filing the declaration with the amount of tax to be refunded — if the application for a refund is submitted after a positive decision of the Federal Tax Service, then 1 month from the date of receipt of such an application
Sales of goods for export

If the tax authorities violated the VAT refund deadline

Then for each day of delay they must pay interest, the amount of which depends on the amount due for return, the period of delay and the Central Bank refinancing rate in force during this period.

Interest is accrued on the day of the actual tax refund (Letter of the Federal Tax Service dated 02/08/2013 No. ND-4-8/1968@).

Don't miss the deadline for your VAT refund

A certain period is allotted for the return (reimbursement) of the tax.

There is no point in contacting the Federal Tax Service outside of these deadlines - the tax authorities will refuse you a VAT refund. And the courts will support them in this (

The VAT refund to a legal entity is the difference between the lost profit of the enterprise and the value added tax actually paid. To return overpaid value added tax to a legal entity, there is a certain procedure approved by law. As part of this procedure, the necessary documents are prepared, collected and submitted to the tax authorities.

VAT refunds can occur in various situations in which the manufacturer incorrectly calculates the quantity of goods and services sold in the future.

The most common situation is when an organization pays tax based on the cost of products, but the products themselves are not sold in full. In this case, the funds that could have been received by the company if the products were sold are compensated.

Thus, most often enterprises involved in the import and export of products, as well as leasing transactions, face this problem.

Conditions for VAT refund

Enterprises that pay this tax have the right to a VAT refund, regardless of their form of ownership (public, private, municipal, state).

The procedure for refunding value added tax is regulated by the Tax Code of the Russian Federation, namely Article 176. According to this document, a tax fee is provided for each taxable item, but if for the tax period the amount of the deduction is greater than the total tax amount, this becomes the basis for a VAT refund.

To receive a VAT refund, an organization must meet the following conditions:

• all goods and services sold must be subject to VAT;
• the amount of deductions must be greater than the total amount of tax paid by the enterprise;
• the taxpayer must provide all documents confirming the excess amount;
• the enterprise must submit an application for VAT refund.

Before submitting an application for a VAT refund, you should make sure that your accounting and all document flow are correct, so as not to face a refusal to reimburse the funds.

VAT refund mechanisms

VAT refund can be carried out by using one of two mechanisms: general or declarative (involving tax refund in an accelerated manner).

The most common procedure for refunding value added tax is the general procedure.

The application procedure can be applied by the following organizations:

• enterprises that have paid payments in a timely manner in the amount of more than seven billion rubles over the past three years;
• enterprises that over the past three years have made timely payments in the amount of more than ten billion rubles;
• taxpayers who provided a document of guarantee from the management company;
• taxpayers who provided a bank guarantee.

Documents for confirmation

To confirm your right to a VAT refund you may need:

• constituent documents of a legal entity;
• payment documents (checks, invoices for the purchase of goods, etc.);
• book of purchases and sales;
• tax return;
• accounting and tax documentation;
• application for VAT refund.

Not all of the listed documents are required immediately when applying to the tax service for a VAT refund, however, as a rule, their provision will be necessary during the consideration of the application.

Such a large number of documents is associated with a thorough check by the Federal Tax Service to exclude the possibility of any fraudulent actions on the part of the legal entity.

Based on the submitted documents, a decision will be made on the return or non-refund of value added tax to the legal entity, and the amount expected to be refunded will also be calculated.

How is VAT refunded under the general and declarative procedure?

The general procedure for VAT refund involves the following actions:

• submitting a completed declaration to the Federal Tax Service;
• verification of the submitted declaration by the Federal Tax Service - can occur within three months;
• making a decision by the Federal Tax Service on the legality of value added tax reimbursement - the decision can be made within ten days after completion of the audit;
• sending a decision – takes five working days;
• payment of funds to a legal entity.

The application procedure for VAT compensation provides for an accelerated algorithm of actions:

• providing the Federal Tax Service with a completed declaration, a bank guarantee and an application for expedited consideration of the issue;
• verification of submitted documents by the Federal Tax Service;
• making a decision on refund or non-refund of VAT - the decision can be made within five working days after submitting the application;
• payment of funds to a legal entity - within six days after the decision is made.

Refusal to refund VAT

Quite often, legal entities are refused VAT refunds. This may occur due to formal violations.

Such violations include:

• incorrect preparation of the application;
• submission of an incomplete package of documents;
• failure to provide supporting documents (checks, invoices, etc.).

In addition, a VAT refund may be refused due to more serious violations identified during a desk or field audit of a legal entity.

If, in the opinion of the organization, the refusal received is not justified, an appeal is filed to a higher tax authority. As a rule, this is the regional Federal Tax Service. If they refuse there too, you can safely file a claim to have the case considered in court.