It is often the case that a single social contribution is not paid to the account required or a large amount paid. Then there is the question of what to do with the overpayment and how to refund.
First of all, you do not need to panic, because it is not very difficult to do so, the main thing is to follow a certain sequence.
If a larger amount of ERUs has been wrongly paid than required, the excess may be credited to future payments. That is, when paying for the next period, you will have to pay the difference between the amount accrued and the excess that was paid in the previous period.
This procedure is spelled out in detail in Part 13 of Art. 9 of the Law of Ukraine “On a Single Social Contribution”. And the mechanism of return is provided in Order # 6.
If the payer has an acceptable option of crediting the funds for future payments, then he actually does not need to do anything. After all, the controlling body independently, without any requests for transfer, automatically accrues the excess of the paid ESA in the account of future payments to the same settlement account.
There is another way to return the ERUs. It is relevant if the amount of the overpayment is large enough or there is no desire for the funds to be credited to a future payment account.
In this case, the return occurs:
- When the payer has deposited the funds in a larger amount than required;
- When a payer made a mistake in another account, it is not intended to pay for the ESA.
In such a case, the funds transferred in error or their excess can be refunded only if the payer receives a corresponding statement. The form of such statement is set out in Annex 1 to Order No. 6.
If the application is submitted without following the prescribed form, it will not be considered.
However, if the funds for the payment of the ERUs were mistakenly transferred to the account of income and fees, the application for a refund may be made in any form. Such a statement must state the name of the taxpayer, the individual tax number, the type of erroneous payment, and how the money should be refunded. This can be either on account or on other taxes. This statement must be accompanied by a copy of the mispaid receipt.
The application, in the prescribed form or in any form, must be submitted to this control body on account of which an erroneous payment has been made.
You can apply in the following ways:
- Personally, by the ESV payer himself;
- Send by mail;
- By means of electronic communication, but with the obligatory use of electronic digital signature.
The fastest option would be to send such a statement through the taxpayer’s personal e-mail. Applications can be simply scanned and sent via the DFS Correspondence menu function.
Within a business day, if the application is submitted electronically, a notification of the registration of this application should be received. You can see this information in the Inbox menu.
The refund request may be rejected for the following reasons:
- The application is written in the wrong form
- The statement contains false information
- The application was not submitted to the authority to which the wrong payment was paid.
There may also be no refund of the wrongly paid money if the payer has a debt on the payment of the ESA.
The payer must be notified in writing of the consideration of the application. If the payment of the wrongly paid money is refused, then a written refusal must be given.
P. 43.3 of the Tax Code of Ukraine stipulates that refusal to repay overpaid ERUs may also be the case if the payer submitted the refund after the expiry of 1095 days.
So, if the application is submitted, when can you expect a refund?
Upon receipt of the application, the taxpayer has 10 business days to verify that the application complies with the established rules. If the statement is written without violations, then the refund process begins. It takes up to 6 business days.
Further, if the tax authorities have reviewed the documents and made a decision on the refund, they submit the documents to the State Treasury. It is the State Treasury that should transfer the paid funds to the payer of the ESA.
Transfer delays may occur if the transfer date falls on the last two business days of the month. In that case, the funds may be transferred on the first day of the following month.
The consequences of paying the ESA are not at the expense
If the taxpayer has paid a single social contribution to the wrong account, then it will take some time for him to refund. It may be about a month. During this time, until the ESA has received the correct account, the tax authorities file a tax request for payment of the arrears with the ESV payer.
But this claim can be challenged in court. As the case-law shows, the courts protect the taxpayer and regard the erroneous payment of the ESA to another account as a technical error.