VAT COMPENSATION. HOW TO RECEIVE A VAT REFUND?

In Ukraine, there is a system of value added tax (VAT), the standard rate of which is 20%.

Businesses can claim a VAT refund for goods and services used for commercial purposes. So, we offer to understand what the budget VAT refund is today.

Yes, p.p. 14.1.18 of the Tax Code of Ukraine tells us that this is a refund of the negative value of value added tax (hereinafter referred to as VAT) on the basis of confirmation of the legality of the amounts of the budget VAT refund based on the results of the payer's check. The negative value in question is the difference between the tax credit and tax liabilities declared for the corresponding reporting period. That is, PC-PZ=negative value.

The process of obtaining a VAT refund in Ukraine is relatively simple. According to clause 200.7 of Art. 200 of the Code of Civil Procedure, a taxpayer who has the right to receive a budget refund and has made a decision to return the amount of the budget refund, submits a tax return on value added tax and an application for the return of the budget refund amount, which are reflected in the tax return, to the relevant supervisory authority.

In order to receive budget compensation, it is necessary to have a combination of the following factors:

• The amount of VAT that will be declared before reimbursement must be paid;
• The refund amount cannot be greater than the registration limit;
• A taxpayer who declares a budget refund must have no tax debt.

Please note that during martial law, entrepreneurs also have the opportunity to claim a budget VAT refund. Yes, p.p. 69.11 of the Tax Code of Ukraine makes it possible to carry out internal audits, which are carried out on the basis of an application for the return of the amount of budget compensation according to In addition, if a VAT refund is applied for, then an unscheduled documentary inspection may be scheduled on the basis of para. 78.1.8 within a period of 60 calendar days, which will be the next after the deadline for submitting a tax declaration (clause 200.11 of the Code of Civil Procedure). If the declaration was submitted later, then according to the date of its actual submission. At the same time, when applying for a refund of more than UAH 100,000, the check becomes mandatory. The next day after the end of the camera/documentary check, the amount of compensation is considered to be agreed, which is paid within 5 operational days after the agreement by the Treasury in the manner declared by the taxpayer.

Separately, we draw your attention to the fact that the enterprise has the right to independently determine how to use the amount of the budget compensation. Options include receiving the declared amount on a current account, crediting this amount as payment of VAT debt, crediting it as payment of another tax, or transferring the negative value to the next period. In addition, you can combine the above options.

If you wish to exercise your right to a VAT refund, contact the tax practice specialists of the "PRIKHODKO&PARTNERS" law firm.