Vat Return Services 2018-05-07T07:32:09+00:00

Vat Return Services:

VAT, value added tax, is an indirect tax, that is, burdening on consumption (that is, a supply of goods or a supply of services) and not on people and from a quantitative point of view, as a revenue to the State, it is the main source of tax revenue.

The ‘ tax is a tax at varying rates, which weighs on the supply of goods and services by taxable persons, that is, entrepreneurs, artists and professionals usual , in the State. The nature of this tax takes the form of tax entry when the goods or services are purchased on a permanent basis, i.e. by the so-called final consumer.


There are three prerequisites for value added tax:

Objective, since the object of the provision must be a supply of goods or a provision of services, as such objectively subject to tax. These are the assignments for pecuniary interest of any kind, both those that provide for a transfer of assets (sale, exchange – that is, the possibility to exchange one’s property with another -, etc.), and those that transfer, with appropriate exceptions real rights of enjoyment (eg, usufruct – that is the enjoyment of a property owned by another person -, lease, etc.), and the benefits that derive from any kind of obligation for consideration.

Subjective, since the aforementioned operations must be performed by a person in the exercise of a business or arts and professions.

Territorial, as these operations must be carried out within the territory of the State.

VAT Return:

The question of VAT Return arises if, based on the results of the tax period, the amount of VAT deductions is greater than the amount of tax calculated to pay to the budget from the sale performed for this period and other operations requiring the assessment of tax. This picture is reflected in the declaration. And the VAT Return for legal entities and the VAT Return for IP are based on the same rules.

In the very essence of the situation of the origin of the Return, there are 2 main points that require the simultaneous presence of the person who forms the declaration:

-the status of the VAT payer;

-the right to apply tax deductions.

The status of the VAT payer: They are obliged to charge VAT from sales and other transactions that are subject to taxation (including when the goods are returned to the supplier with VAT from the IP or legal entity), draw up invoices, keep books of purchases and sales, and pass VAT declarations. And they have the right to apply deductions in the amount of tax imposed by suppliers and arising in some other transactions (for example, on capital investments made by own forces).

VAT non-payers in certain cases have a duty to charge VAT to pay and issue a declaration in respect of the assessed tax, but the right to deduct them never appears.

About when, when a VAT non-payer has an obligation to accrue this tax, read in the material “The Procedure for Reimbursing VAT for USN in 2017-2018”.

VAT Return implies the consistent implementation of a number of specific actions, upon completion of the chain of which the taxpayer receives the amount of tax from his budget on his settlement account.