Individual entrepreneurs using special tax regimes are exempt from paying many taxes. But some individual entrepreneurs may face the need to pay value added tax (VAT). Whether an entrepreneur has the right to a refund of the amounts paid, how to process and calculate a VAT refund - we will tell you in our article.

Can an individual entrepreneur return VAT?

If a simplifier himself purchases products from a supplier on OSNO and pays VAT, he is not entitled to a deduction. But VAT reimbursement for individual entrepreneurs using the simplified tax system may take the form of adding tax to expenses. True, this only applies to individual entrepreneurs on the “Income minus expenses” system.

VAT refunds for individual entrepreneurs are not allowed on UTII, since they do not pay VAT and cannot claim a refund. But in some situations, the “imputed” persons are obliged to calculate, pay this tax and submit a declaration to the Federal Tax Service. For non-payment of VAT, violation of deadlines or failure to submit reports, individual entrepreneurs on the “imputation” are subject to tax liability.

How to eliminate problems with the Federal Tax Service? The answer is simple - keep accurate accounting records. This will make it possible to timely transfer VAT and other taxes and determine the amounts to be refunded from the budget. If an individual entrepreneur does not have the opportunity (or desire) to make accounting impeccable, it is wiser to entrust this to an outsourcing company.

VAT refund procedure

Article 176 of the Tax Code of the Russian Federation reflects the rules for compensation that arises if the amount of input VAT exceeds the tax payable on the sale of products. Negative VAT can be issued by individual entrepreneurs for refund.

You can return VAT to individual entrepreneurs in the general manner as follows:

• a negative VAT result is reflected in the tax return filed electronically;
• an application for compensation is submitted at the same time;
• Inspectors conduct a desk inspection for 3 months, then a positive decision or refusal is made within 7 days;
• when violations are detected, the individual entrepreneur receives an inspection report indicating the reasons for the refusal, which he can refute by providing additional information, or protest in court;
• in case of a positive decision, the relevant document is sent to the applicant within 5 days;
• the money is transferred to the individual entrepreneur’s current account, or accepted for payment of accrued or upcoming payments for VAT and other federal taxes.

Not all entrepreneurs can refund VAT in a declarative (accelerated) manner, but only:

• Individual entrepreneurs whose tax payments exceeded 7 billion rubles over the past three years;

Individual entrepreneurs who submitted a bank guarantee along with the declaration;

Individual entrepreneurs of the TOR.

How is VAT refund calculated?

Amounts payable/reimbursable are calculated when filling out the declaration:

• The amount of VAT to be paid to the budget is indicated when the amount of VAT from sales exceeds input VAT.

Example

The individual entrepreneur at OSNO sold products worth 1 million 800 thousand rubles, including VAT (20%) = 300 thousand rubles. Materials were purchased for 890 thousand rubles, including VAT (20%) = 148,333 rubles. The tax payable is: 300,000 - 148,333 = 151,667 rubles.

• VAT to be refunded is indicated when the input tax exceeds the VAT on sales.

Example

Individual entrepreneur on OSNO sold goods worth 1 million 250 thousand rubles, including VAT (20%) = 208,333 rubles. The purchase of products was made in the amount of 1 million 400 thousand rubles, including VAT (20%) = 233,333 rubles. The compensation will be: 233,333 - 208,333 = 25 thousand rubles.

VAT refund when exporting products

In external conditions economic activity VAT refund is of a special nature. The Tax Code of the Russian Federation has introduced a VAT rate of 0% for exports. The taxpayer has the right to deduct the tax charged to him when purchasing goods or services for export operations, or which he paid when importing products into the country. As a result, the individual entrepreneur can receive a VAT refund.

In this case, you need to confirm the due VAT refund, and also provide the Federal Tax Service with a package of accompanying documentation for export operations: a customs declaration, invoices for export products, purchase contracts. This is reflected in Article 165 of the Tax Code of the Russian Federation.

The package of collected papers must be submitted to the Federal Tax Service within 180 days from the date of the customs export procedure, otherwise you will have to pay tax not according to preferential rate 0%, and overall - 20%.

In fact, VAT refund is difficult process, requiring not only knowledge of a large number of details, but also real experience defending your position before the tax authorities.

Order service

Let's figure out what a VAT refund is and how to make a refund legal entities and individual entrepreneurs using common system taxation.

At the end of each reporting period (quarter), individual entrepreneurs and organizations are required to submit VAT returns. In the declaration, the taxpayer indicates:

• the amount of VAT payable to the budget if the amount of tax from sales turned out to be higher than the “input” VAT.

LLC "Steel" sold goods in the amount of 1,650,000 rubles. (including VAT 251,695 rubles), and purchased materials for 550,000 rubles. (including VAT RUB 83,898). VAT payable to the budget will be 167,797 rubles. (251,695 – 83,898).

• the amount of VAT subject to reimbursement from the budget if the amount of “input” VAT turned out to be higher than the VAT on sales.

LLC "Steel" sold goods worth 820,000 rubles. (including VAT 125,085 rubles), and purchased goods in the amount of 1,450,000 rubles. (including VAT 221,186 rubles) The amount of tax to be refunded from the budget will be 96,101 rubles.

Note: it is important not to confuse the concepts " tax deduction for VAT" and "VAT refundable" are two completely different concepts. A tax deduction is the tax paid when purchasing goods, and VAT refundable is the difference between VAT on sales and “input VAT” that is subject to refund from the budget.

Taking into account the above, the right to a refund (refund) from the budget of value added tax arises in the case when the “input” VAT exceeds the VAT on sales. This situation may also arise if the taxpayer uses different tax rates when selling and purchasing goods (works and services). For example, he sells goods at a rate of 0% or 10%, and purchases them at the basic rate of 18%.

Who is entitled to a VAT refund?

Only payers of this tax, that is, individual entrepreneurs and organizations applying the general taxation system, have the right to a refund of value added tax. Entrepreneurs and companies in special regimes (UTII, PSNO, USNO or Unified Agricultural Tax) are not entitled to a tax refund.

Note: if an individual entrepreneur or organization has issued an invoice to a counterparty with an allocated amount of VAT, it will be obliged to pay the amount of tax received from the buyer to the budget, but it will not be able to reimburse it from the budget.

Conditions for VAT refund from the budget

The right to a VAT refund for payers of this tax arises if the following mandatory conditions are met:

• Documentary confirmation (availability primary documents including invoices confirming transactions performed);
• The reality of the transaction and its focus on making a profit within the framework of entrepreneurial activity;
• Posting of goods, works or services;
• The integrity of all participants in the transaction, including second and third level counterparties.

Note: failure to comply with at least one of the above conditions will result in a refusal to refund the tax from the budget.

Procedure for refund of value added tax

The procedure and features of the return of value added tax from the budget are regulated by Art. 176 Tax Code of the Russian Federation.

Note: Please note that VAT refund is a right of the taxpayer, which he must confirm. For this reason, the tax authority cannot independently refund VAT from the budget.

There are two ways to return VAT from the budget:

• Ordinary

This procedure is applied by those taxpayers who do not have the right to an application (accelerated) tax refund procedure.

• Declarative

The main difference between the application procedure and the general procedure is the tax refund before the end of the desk audit.

Read also: Single tax on imputed income (UTII) in 2019

Let's look briefly at each of the methods.

The usual (general) procedure for refunding VAT from the budget

Used by the vast majority of VAT payers. The tax refund is made upon completion of the cameral tax audit.

VAT refund generally consists of the following steps:

• Collection of documents confirming the validity of tax reimbursement from the budget

This stage includes the preparation of primary documents confirming the legality of the VAT application for deduction and, as a result, its reimbursement from the budget.

• Filling out a VAT return

The value added tax declaration, regardless of whether the tax is claimed for reimbursement or for payment, must be submitted to the tax authority only in electronic form. This rule valid for all taxpayers since 2015. Reporting is presented in the format electronic document through telecommunications operators. Submitting a return on paper while being required to submit it electronically will be equated by the tax authority to failure to submit reports at all.

In 2019, the VAT return is submitted in the form approved by Order of the Federal Tax Service of Russia dated October 29, 2014 N ММВ-7-3/558@ (as amended on December 20, 2016).

Download the form for KND 1151001 tax return for value added tax (VAT).

• Submitting documents to the tax authority

After the documents have been collected and the declaration has been completed, they must be sent to the tax authority at the place of registration.

• Desk tax audit

After receiving a tax declaration and the documents attached to it from the taxpayer, the tax authority begins a desk audit (hereinafter referred to as the CNI), during which the validity of the tax deductions declared in the declaration and the tax amounts to be reimbursed from the budget are checked. This check is carried out at the tax authority, without visiting the taxpayer (unlike the on-site inspection, which is carried out on the territory of the individual entrepreneur or organization being inspected). The period for the tax return is 3 months from the date of submission of the declaration to the tax authority.

Please note that since 2015, the tax authority has the right to inspect the taxpayer’s territory, as well as objects and documents, if the tax is claimed for reimbursement in the VAT return.

• Making a decision on tax refund

Upon completion of the tax inspection, the tax authority, within 7 days, makes a decision on tax refund (in whole or in part) if the tax authority has not identified any violations.

If violations are detected, the Federal Tax Service Inspectorate draws up a desk tax audit report, which sets out the grounds for refusing a VAT refund. The taxpayer has the right to submit his objections to the act, which are subsequently considered by the tax authority and, based on the results of the audit, a decision is made to prosecute or refuse to prosecute, which can also later be appealed to a higher tax authority.

• Notification of the taxpayer about the decision made

If a positive decision is made to reimburse VAT from the budget, the tax authority informs the taxpayer about this within 5 days by sending the appropriate decision.

• Transfer of funds

Refunds of individual entrepreneurs or organizations are made within 5 days from the date of the decision on reimbursement, of which 1 day is allocated for sending the tax order to Federal Treasury and 5 days for the transfer of funds by the Treasury itself (from the date of receipt of the order).

Note: transfer of funds within 12 days (7 days from the end of the check to make a decision on reimbursement and 5 days for the transfer of funds by the treasury) is possible only if an application for a refund or VAT credit was submitted along with the declaration. If it was not submitted, then the deadline for transferring funds to the taxpayer is one month from the date the tax authority received such an application.

Please note that in the event of a delay in the transfer of tax funds, interest is accrued on the amount of tax to be refunded equal to the refinancing rate in effect during the period of delay. Interest is calculated for each day of delay.

Read also: Which tax system to choose for individual entrepreneurs in 2019

Application (accelerated) procedure for VAT refund

The application procedure for VAT refund can only be used by certain categories of taxpayers who meet certain conditions. Under the application procedure, tax refunds are made before the end of the desk tax audit.

VAT can be refunded in an accelerated manner:

• Organizations that have paid taxes in the amount of more than 7 billion rubles over the last 3 years;

Only VAT, excise taxes, income tax and mineral extraction tax are taken into account. Other payments are not taken into account. This condition applies only if at least 3 years have passed since the registration of the organization.

• Organizations and individual entrepreneurs who submitted a bank guarantee along with the declaration;

We will look at what a bank guarantee is, who issues it and what requirements it must meet later in the article.

• Organizations and individual entrepreneurs who are residents of territories of rapid socio-economic development;

Provided that a copy of the guarantee agreement is provided along with the declaration management company, determined by the Government of the Russian Federation in accordance with the law “On territories of rapid socio-economic development in Russian Federation”.

• Organizations and individual entrepreneurs who are residents of the free port of Vladivostok;

Subject to the provision of a guarantee agreement to a management company determined by the law “On the Free Port of Vladivostok” along with the tax return.

• Organizations and individual entrepreneurs whose obligation to pay VAT is secured by a guarantee agreement.

The right of taxpayers to an accelerated VAT refund procedure in the presence of a guarantee appeared for individual entrepreneurs and organizations relatively recently - since January 2017.

What is a bank guarantee

A bank guarantee is a document in which the bank vouches for the taxpayer to the tax authorities and promises to return the amount of VAT to the budget if, following an audit, the tax claimed for reimbursement was not confirmed.

Please note that not every bank has the right to issue a guarantee. To do this, he must meet the conditions established by clause 3 of Art. 74.1 of the Tax Code of the Russian Federation and be included in the list approved by the Ministry of Finance of the Russian Federation.

Currently in this list listed 262 credit organizations who have the right to issue a bank guarantee.

The bank guarantee itself must meet the following requirements:

• Be irrevocable and non-transferable;
• Have a validity period of at least 8 months from the date of submission of the declaration to the Federal Tax Service;
• The amount of funds for which the guarantee is issued must fully cover the amount of VAT claimed for reimbursement.

Features of VAT refund on application basis

An accelerated value added tax refund consists of the following steps:

• Filling out a VAT return;
• Receipt of a bank guarantee for the amount specified in the declaration;
• Submitting a declaration and bank guarantee to the tax authority;
• Preparation and submission to the Federal Tax Service of an application for the application of the application procedure (if it was not attached to the declaration and bank guarantee);
• Making a decision on VAT refund within 5 days from the date the tax authority received the application;
• Sending the decision to the taxpayer - no later than 5 days from the date of its issuance;
• Transfer of funds within 6 days from the date of the decision.

VAT refund methods

The amount of value added tax to be refunded by decision tax authority, can be returned to the taxpayer’s current account or offset against future payments.

Please note that if there is a federal tax debt, the tax authority will first cover this debt and only then return the remaining tax.

Reasons why the tax authority may refuse a VAT refund

There are many reasons why the Federal Tax Service refuses refund of value added tax. Among the main ones we can highlight the following.

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 get a tax refund, what regulatory documents these actions are regulated, and we will determine the order of 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.

Lack of result, i.e. 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.

Exemption of a company from VAT or application special regimes taxation 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

Entrepreneurs and organizations that are , can demand a VAT refund from the state. This action occurs when, at the end of the reporting period, the declarant has an amount greater than the amount of accrued tax.

It is important to remember that in order for the fact of a VAT refund to be detected, it is necessary to go through the entire procedure established by law.

How to return VAT - stages

To make a VAT refund, you need to go through a number of stages and prove the legality of the procedure:

1. First, we submit a declaration to the tax office for a VAT refund. Tax officials set up a desk audit that lasts three months. During the inspection, the NI may require the provision additional documents. If violations are identified, we write a complaint to identify the violation. The document is sent to the tax authority within 1 month.
2. If no violations have been identified, the tax authority issues a decision on non-detection of the violation within seven days. VAT is returned to the declarant if he has no penalties, fines or arrears.
3. The tax is transferred to the taxpayer's bank account within five working days.
4. If VAT was not transferred on time, the taxpayer is obliged to receive compensation. If the interest for late payment of VAT was not transferred on time, then within three working days the tax authority makes a decision on the transfer of the remaining interest.

In principle, the scheme itself is simple, the main thing is to pass all the desk checks. Legal actions in the process of entrepreneurial activity will help to return the due deduction back. This is the return scheme for individual entrepreneurs. But in order to refund VAT to legal entities, the scheme is the same. If a businessman is a tax agent, then he has the right to demand the deduction due from the state.

Often, the Federal Tax Service, citing formal conditions, tries to deny the right to use a VAT refund, which is why such processes are often considered in court.

The VAT refund procedure itself is prescribed in Article 176 of the Tax Code of the Russian Federation. On paper it all looks very simple and accessible. But in reality, you have to go through a lot of difficult stages and prove your right to a VAT refund to the tax authorities. .

What to do to increase the chance of VAT age?

Your organization sells or imports goods; upon purchase, you already pay tax to the budget at a certain rate. If it happens that the tax on the sale of goods is higher, then you will have to pay to the budget. If it is less, then the state is obliged to give you a VAT refund.

At the discretion of the tax authority, the deduction can either be sent to the taxpayer’s current account or go towards future taxes. The amount itself is credited over three months.

You must remember that the tax authorities, trying not to return the VAT due to you, take all actions: they also check your counterparties and require the provision of additional papers.

What do you need to get your legal deductions? In words and on paper everything is quite simple. In reality it turns out to be much more complicated. If you are sure that in the process of business activity you did not violate the law and worked with trusted suppliers, then after the verification you will still receive a deduction. And yet, how to return VAT? ? This is especially true for export goods, if you have met all the necessary conditions:

• Goods and services must be recorded in the required journals.
• Confirmation that you crossed the border is a mark from customs officers.
• All goods sold are subject to VAT.
• This product is listed on the invoices issued.
• When selling goods abroad, VAT is paid at the border itself.
• If the organization rents premises, then the deduction can be made after paying the rent.

The nuances of VAT refund can be seen in the following video:

Documents required for VAT refund

In order to carry out actions for refund or VAT refund, it is also necessary to prepare all documents and submit them to the tax authority. What are these documents?

• Application according to the established form.
• Tax return, filed at the end of the reporting period.
• Letter requesting a VAT refund.
• Additional documents.
• All invoices.
• All payment documents.
• Extracts from title pages books of purchases and sales.

After receiving all the documents, the tax authorities will send desk audits to you and your counterparties, as a result of which there should be no discrepancies. IN otherwise The procedure for refunding due VAT may take a long time.

If your organization is confident in the legality of its actions and the actions of suppliers and if you have all payment and other Required documents, then you can safely apply for a refund.

In principle, the documents for compensation both for export and for the domestic market are almost the same. But export also requires customs marks and declarations.

In any case, accounting must strictly comply with the legislative level. All bills, rent, goods and additional expenses so that the tax authority does not have any claims against you. Any clue, any inaccuracy will be grounds for refusal to return the amount due.

In 2017, no significant changes are expected in VAT refunds. Standard package of documents: invoices, bank statements. The statements must contain confirmation that money was received into the account if it is export VAT from a foreign citizen.

When bartering, a customs statement and accompanying documents are provided.

For some specific transactions, the right to a VAT refund arises in the following circumstances:

• “import” VAT can be deducted and a refund can be claimed only after the tax has been paid in full at the border customs;
• VAT on standardized costs can only be accepted within the limits of the current standard;
• When renting federal/municipal property, the tax is refunded after it is paid as a tax agent.

What documents are used to process a VAT refund?

The tax legislation does not regulate the list of documentation required for VAT compensation. The following documents are submitted to the Federal Tax Service at the place of registration by the taxpayer:

• a handwritten request for reimbursement;
• declaration (copy) for the period in which the amount of deductions exceeded the calculated amount of VAT;
• a letter where the taxpayer asks to return the refund amount to a bank account, or to offset the compensated VAT against the existing tax arrears for other reporting periods.

This list of documents is minimal. How the procedure for refunding part of the VAT to the taxpayer is a legal operation that occurs when the tax subject to deduction exceeds the amount calculated for payment. From a theoretical point of view, VAT compensation from the budget should not be accompanied by any difficulties. However, in practice, the largest number of tax disputes are associated with VAT refunds.

Where does the VAT refund procedure begin?

Purchasing goods for sale, raw materials and materials used in production, receiving paid services from third party organizations– all these facts of the organization’s economic activity provide grounds for deducting “input” VAT. When generating a quarterly declaration, this amount is shown in lines 120-180 of Section 3. In addition to deducting VAT on ordinary activities, subjects can act as tax agents.

Business entities of any organizational and legal form that apply the OSN and are obligated to pay VAT under tax law can recover the “overpayment” of tax.

Conditions for VAT refund

To successfully complete a refund operation, a number of mandatory conditions must be met:

• assets received (services, goods, materials) must be reflected in accounting registers;
• documentary justification for receipt is accompanied by a correctly completed invoice;
• products for which VAT is claimed for deduction are not included in the list of goods exempt from tax.

As a rule, tax authorities will require primary documents justifying the deduction of VAT - “incoming” invoices, books of purchases and sales. In addition, you may need Bank statements, customs declarations and contracts with counterparties.

Important: a condition for successful VAT refund is the impeccable completion of the primary documents on the basis of which the tax was deducted.

Mandatory desk audit is a condition for VAT refund

The most unpleasant thing for the taxpayer will be the mandatory desk audit, which will last at least three months.

During the inspection process, the inspector, first of all, checks the correctness of filling out the tax return and the compliance of the data in the report primary documentation. If doubts arise about the legality of the claimed compensation, the supervisory authority has the right to conduct counter checks and request documents from supplier counterparties.

Remember: Failure to submit documents requested during a desk audit within the established time frame may result in a fine. If it is impossible to ensure the transfer of the necessary papers within the required time, it is advisable for the taxpayer to file a petition to extend the audit period.

Any errors or contradictions discovered during the inspection serve as grounds for requesting written explanations from the taxpayer. To provide explanatory note five days are allotted - during this period the company is obliged to justify and confirm the right to a tax deduction or adjust the VAT return.

Completing the scan

Based on the results of comparative and verification procedures tax office must draw up a final document - an inspection report. It should reflect the following information:

• detected discrepancies or errors with official confirmation (indication of specific primary documents in which contradictions were identified);
• certification of the absence of any errors when declaring a tax deduction and the corresponding VAT refund;
• the operative part is a conclusion on the admissibility of a tax refund or a reasoned refusal.

If the inspection passed without any complaints from the regulatory authority, then within 7 days the amount of refunded VAT should be credited to the applicant’s bank account. This will happen if the taxpayer initially applied for a refund from the budget. If the personal account of an organization (IP) records a VAT arrears that have arisen in previous reporting periods, then the refunded tax will be redirected to pay off the debt.

The tax authority has a specific time limit for VAT refunds - 12 days from the date of a favorable decision. If within the specified period budget money has not been received into the applicant’s account, then he can increase his financial requirements, calculating interest on late payments.

Refusal to refund VAT

The state is reluctant to return money from the budget to taxpayers, so a common outcome of a desk audit is a denial of VAT compensation.

The refusal must be clearly motivated and contain a list of detected contradictions or errors. Based on the results of documentary control, the tax authority may refuse compensation in whole or in part. “Doubtful” amounts not accepted for deduction must be listed in the act.

If the taxpayer is fully confident that he is right, he retains the right to protest the results of the tax audit. It is necessary to state in writing your objections to the controversial points of the inspection report and submit the document to the fiscal authority.

You should know: The tax inspectorate is obliged to accept the taxpayer’s objections, but has the right not to take them into account when making a final verdict on the full or partial refusal of VAT compensation.

Refusal to refund a tax may be associated with even more serious consequences - the tax office may not accept the declared VAT deductions and may impose additional taxes and corresponding penalties.

Appeal and Arbitration

When a tax refund is refused, a business entity can protect its rights. The taxpayer’s action algorithm is as follows:

• filing an application (appeal) with the head inspectorate of the Federal Tax Service to protest the results of the inspection and the refusal to refund VAT;
• If the refusal is confirmed, a claim must be filed with the Arbitration Court.

In recent years, arbitration courts have become more loyal to taxpayers. If there are no obvious signs of an illegal VAT refund and the tax authority’s refusal is of a formal nature, then the applicant has a chance to obtain a tax refund through the court.

However, before starting a tax dispute in court, an organization must take the following measures:

• check the correctness of invoices received from counterparties and their compliance with the original receipt documents;
• in the presence of preferential treatment(taxation at a rate of 0% or exemption from VAT) ensure separate accounting of transactions - according to the general procedure and according to the privileged regulations;
• carry out an inspection of counterparties, based on whose documents a tax deduction is claimed, for good faith - obtain extract from the Unified State Register of Legal Entities, copies of statutory documentation and balance sheets.

If the judicial authority takes the side of the taxpayer, then within two months after a positive verdict is issued, the tax authorities are obliged to return the amount of compensation to the applicant. In addition, when filing a claim, it is advisable to include in the refund amount interest for late transfer of money, costs for legal services and court fees.

Exceptional refund policy

Tax law provides for the possibility of expediting the VAT refund procedure for a certain category of taxpayers. If over the past three years an organization has transferred 10 billion rubles in tax revenues to the state treasury, it can qualify for a VAT refund under a simplified procedure. Within 5 days after submitting the tax return, an application for VAT refund is submitted, and after another 5 days, the Federal Tax Service division makes a decision on early tax compensation.

Expedited reimbursement provided bank guarantee, according to which the money returned to the taxpayer will be transferred back to the state budget if the result of the desk audit is not in favor of the applicant.