Request VAT Refund

How to Request a VAT Refund and Refund to Legal Entities

Request VAT Refund

At the end of the quarter, organizations have the right to demand compensation if the VAT amount accepted for deduction exceeds the calculated tax amount. In case of excessive tax payments to the budget, a refund is made. In the article, you will learn how to request a VAT refund and refund to legal entities.

VAT refund

According to the quarter results, if the VAT amount accepted for deduction exceeds the calculated tax amount, the institution has the right to repay the difference. The refund procedure should be distinguished from the process of returning or offsetting an overpaid VAT.

The VAT refund procedure includes several steps:

  • First, the institution must apply to the tax office:
  • VAT refund showing the amount of tax to be reimbursed from the budget;
  • A VAT refund application submitted to the organization’s bank account for a refund or a VAT deduction application against future payments of the same or other federal taxes.

The desktop review of VAT returns services sent after September 5, 2019, takes two months. This is a general rule. If the audit violates tax laws, two months can be extended to three months. This procedure is described in paragraph 2 of article 88 of the Tax Code. Its items determine it.

Tax administrations will decide to pay back if the institution does not have VAT, other federal taxes, and corresponding fines and penalties. On the next business day after such a decision, the inspection should send a tax refund order to the regional treasury department and show the current account of any organization known in this institution.

The Federal Treasury is obliged to transfer taxes to the institution’s account within five business days of receiving an order from the inspection. The office also notifies the tax office about the refund amount and date. This procedure is determined by paragraph 9 of article 167 of the Tax Code.

VAT refund from the budget

In some cases, the company has the right to refund the overpaid tax from the budget. There are two everyday situations in total. These include the company accidentally paid more fees to the budget or made an updated statement for past periods.

Tax refund rules are included in article 76 of the Tax Code. To return the overpayment of the tax to the reconciliation account of the organization, an application must be made to the tax office. The order approved its form of the Federal Tax Service of MMV-7-8 / 182 dated 03.15.2018.

The application can be submitted for inspection on paper or in electronic form (with qualified signature via telecommunication channels). The order has approved the recommended electronic application format of the Federal Tax Service MMV-7-8 / 137 No. 05.23.2017. You can apply within three years of the payment of the excess tax (paragraphs 6 and 7 of Article 78 of the Tax Code).

The tax inspector is obliged to return the overpayment from the institution within one month from the day of receipt (paragraph 6 of article 78 of the Tax Code).

How to get Tax Free?

To refund VAT, you must say that you want “TAX-FREE” at the box office. Upon the submission of a passport, some stores will immediately make a tax-free purchase. If this does not happen, you will receive a “TAX-FREE FORM” and a check valid for three months from the date of purchase. The form must be filled in with your purchased passport information. And, the purchased goods at the airport. Here the official seal will be issued and sent to the DUTY-FREE store. Here they will refund the tax withholding by cash or transfer. Don’t forget to take extra time to return to the airport!

Conclusion:

Now you will be able to understand all the points which are shared here. But if you are looking for VAT return services, then simply call an Accountant now and shared all the details.

Leave a Reply

Your email address will not be published. Required fields are marked *

eleven + ten =

Concrete Previous post A Complete Guide on What Is Concrete and What to Do With It
Types of Caps and Hats Next post Top 8 Types of Caps and Hats for Different Personalities