How do market participants, that is, subjects of various forms of ownership, see VAT refund? Some evaluate it as the most important source ensuring the filling of the state budget, while others argue that this category is not entirely adapted to the realities of domestic business. In other words, the latter insist that there are very serious problems with the payment and return of the said tax.
What is a VAT refund? This is a refund of a certain part of the financial resources, which were transferred in the form of the same collection in excess of the necessary. The need for such a return arises among many payers. But the undisputed champions in this matter are leasing companies, as well as organizations involved in various types of export-import operations.
About difficultiesWhat are the main difficulties characterized by VAT refunds from the budget? Here we are primarily talking about
tax audits. The relevant fiscal authorities, when accepting declarations with a request to return the excess, in most cases initiate an audit of the activity of the applicant. This act seems to be very logical: what kind of state wants to part with the funds already transferred to the budget? Inspections are initiated to ensure that the entity’s declaration is lawful and reasonable. At the same time, it is necessary to check whether it is clean before the law.
Accordingly, any organization that has made a return statement must prepare (or put in full order) all of its financial and accounting statements, contracts, and so on. Otherwise, any flaw found by the tax authorities will not only void the VAT refund, but will also lead to additional
penalties from the state. Well, with that, he surely, as they say, will not rust.
Leasing companies are in the zone of special attention from the aforementioned regulatory bodies. They very often face the issue of returning the type of tax in question. The fact is that each of these companies receives its income in the long term, and it is obliged to pay
value added tax immediately. Hence the emergence of the corresponding needs. The Federal Tax Service carefully studies the declarations filed by such organizations, because it reasonably believes that many lessors intentionally underestimate their income.
Accordingly, the receipt of compensation by such persons is not justified.
About exportA separate consideration is the refund of VAT on exports. And all because domestic legislation in this area is characterized by a certain vagueness of wording and definitions, which raise a lot of questions and difficulties. As a result of the confrontation between business entities and the state, the decision on whether there will be a VAT refund or not is decided by the arbitration court. As for the procedure for the return of financial resources, the procedure is standard. The organization first submits the declaration. After that, a
desk audit of its activities is carried out, the results of which make a decision on the possibility or impossibility of return. It is noteworthy that this can be either a transfer of excess funds to the firm’s current account, or a set-off paid for future
tax periods.