Taxes

Automatic VAT refund: conditions (рart 4)

A taxpayer should meet a number of criteria in equal measure to get the right to receive automatic VAT refund budget (see Parts 1, 2, 3):

7) the taxpayers who have no the tax debt.

The consolidated indicators of total amount of the taxpayers tax debt to budgets of all levels (taking into account the amount of debt on principal payments, fines, for punitive (financial) penalties) on the first calendar day of the month, the second of reporting period are used to form this criterion (TD);

8) large taxpayer didn’t declare the negative value of the income tax as of the end of the financial (tax) year.

To form this criterion the payer is assessed on compliance the assurance of subparagraph 14.1.24 of paragraph 14.1 of Section I of Article 14 of the Tax Code of Ukraine (hereinafter - the Code, TCU)  according to which a large taxpayer – legal entity whose revenue of all activities during the past four consecutive tax (reporting) quarters exceeds five hundred million UAH or the total amount of paid taxes to the State Budget of Ukraine of payments, which charging monitoring are entrusted to regulatory authorities, for the same period is more than twelve million UAH.

In case of compliance with the specified requirements, the data tax reporting for income tax for the last reporting (tax) period, which the deadline submission has passed, are analyzed, namely: the negative value of the previous tax reporting (tax) year.

According to the results of the automated verification of the payer’s meeting of criteria for the automatic refund, the central executive body, that provides the formation and implements the national tax and customs policy not later than the 15th calendar day after the deadline submission reports, forms two lists of taxpayers:

  • a list of the taxpayers who meet the criteria defined in the Code and should be entitled to the automatic VAT refund;
  • a list of the taxpayers who do not meet the criteria defined in the Code and should not be entitled to the automatic VAT refund.
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