When searching of financial reserves with a shortage of working capital, companies should not forget about VAT refunds, the amount of which can amount to millions of rubles.
The tax refund procedure is associated with a tax audit, and the difficulties arising in this case are problematic to eliminate without serious legal support, and sometimes even representation in court.
Nuances of refund from the budget
The right to a VAT refund for an organization arises in the event that at the end of the tax period the amount of this compulsory payment calculated to be paid is less than the amount of VAT deductions.
“Negative” VAT, in particular, often arises from exporters who purchase services and goods required for business in the usual manner (subject to VAT), and the final product is sold at a zero rate. A similar situation arises if large purchases of raw materials or goods were made, and the release of products or the sale of goods in the current tax period was not carried out.
The procedure for VAT refund is as following:
- submission of a declaration containing the amount to be refunded;
- conducting a tax audit with interrogation of the head and chief accountant;
- request for clarifications and supporting documents in the event of a discrepancy between the declaration data and information from counterparties.
Even a minor mistake or inaccuracy will inevitably lead to a refusal of a refund.
Why it’s not safe for companies to ask for refunds
Despite the absolute legality of the procedure, most accountants prefer not to resort to it, and when they try to exercise their right, they are most often refused and the decision of the inspection, as a rule, is not challenged.
Common reasons:
- clutter in the documentation;
- incompetence of the accountant in this matter;
- lack of resources to collect the necessary documents;
- the presence of unscrupulous suppliers among contractors;
- increased attention and often pressure from the tax office.
VAT refunds as a professional service
UCMS Group specialists are highly qualified and have successful experience in this area. We are ready to offer our clients:
- processing of primary documentation, allowing you to maintain full readiness for tax audits;
- selection of documents for a desk audit;
- escort during interrogations at the tax authority;
- checking all concluded agreements to identify reputational, financial and tax risks;
- competent challenge of illegal acts of the tax service, if necessary – representation of interests in court.
In-depth knowledge of legal regulations allows us to guarantee our clients full VAT refunds without the risk of falling into the disgrace of the tax authorities.
You can order the service and discuss the terms of cooperation through the form on the website or using the specified contact information.
5 advantages of UCMS Group
We track every legislative change
We keep up with the latest payroll changes: taxes, Social Fund contributions and other mandatory payments.
Our team is made of experienced professionals only
Our qualified specialists take an individual approach to every client
We account for every change inside the client's company
We work with clients on an ongoing basis and respond promptly to any changes in their companies: we analyse them and adjust our work if needed. This comes at no extra cost to the client - it is part of the standard service package.
We launch a new project in 1-2 months
We design and agree the way we work together for each company. We can start the next day - based on the client's preferences.
We offer both standard and tailored service packages
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