As you know, the refund of value added tax (hereinafter – VAT) should be understood as the refund by the state of the amount of tax that was actually paid in the value of the goods, works, and services purchased by the legal entity.
Both legal entities and natural persons-entrepreneurs who are VAT payers can claim such compensation in Ukraine, provided that the amount of tax credit in the tax return exceeds the amount of tax liabilities.
For example, typical budget applicants are enterprises that export goods from Ukraine. Since, as is known, the VAT rate for exports is 0%, we have a situation where the company, buying goods from domestic manufacturers/suppliers, pays VAT in the amount of this product, and therefore has the right to reimbursement of this amount from the budget.
Therefore, the basis for obtaining a VAT refund will be the presence of a so-called “negative value” between the amount of the tax liability and the amount of the tax credit. In the VAT tax return, it should look as follows – line 9 (tax liability) < line 17 (tax credit). The difference you receive should be displayed in row 19 of the declaration without a minus sign.
In addition, to apply for a VAT refund, it will be necessary to fill in the lines of group 20 and Annexes D3 and D4 to the VAT tax return.
However, the presence of the above-mentioned “negative value” does not guarantee that you will receive a budget refund, as the following rules must be observed:
- The declared amount of VAT before reimbursement must be actually paid to the budget. By the way, if you received a product or service, and the supplier has already registered a tax invoice, but such a product or service has not been paid for, no VAT reimbursement will occur.
- The declared amount of VAT before reimbursement must be within the registration limit ∑incl. If the “negative value” turns out to be larger, it must be reduced to the value of the registration limit, and the amount exceeding it must be carried over to the next period.
- The payer claiming VAT refund must have no tax debt. If there is a debt, the amount to be reimbursed will be taken into account in its repayment, including interest and fine.
As already mentioned, by submitting a tax declaration with annexes D3 and D4, the company is registered in the register of taxpayers who have declared budget compensation, which is posted on the DPS website.
In the future, the employees of the territorial bodies of the DPS will carry out a camera check. At the same time, the term of its implementation during the martial law was extended to 90 calendar days. If the declared amount of VAT refund exceeds UAH 100,000. an unscheduled documentary inspection is appointed. With the results of the check, the amount will be considered agreed upon, which, by the way, will be recorded in the above-mentioned register.
The last stage will be the implementation of the compensation by the treasury body in the manner declared by the payer within 5 operating days.
If you wish to exercise your right to a VAT refund, contact the tax practice specialists of the “Prikhodko&Partners law firm”.