Support during desk audit of VAT declaration

Under the Tax Code of the Russian Federation, a taxpayer applying the traditional taxation system may recover VAT from the budget if, at the end of a tax period, the amount of tax deducted exceeded the amount of VAT calculated.

The taxpayer can return the difference to his current account or offset it against future payments.

We always recommend our clients to reimburse VAT if the VAT paid exceeds the VAT charged in the reporting period, because by reimbursing VAT the company does not “freeze” its funds in the budget, increasing its liquidity and solvency.

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When VAT refunds are available

The possibility of VAT refund arises in the following cases:

  • The volume of purchases of goods, work, services, fixed assets and inventories subject to VAT exceeds the volume of sales in a tax period;
  • The organization carries out activities that are subject to VAT at 0% (export, international transportation);
  • When purchasing goods, works, services at the rate of VAT at 20%, and sales taxable at the rate of 10%.

VAT refund options

Currently, a taxpayer may choose one of two VAT refund procedures – general and declaratory:

General procedure

The general procedure implies VAT reimbursement from the budget based on the results of a desk audit, which lasts 2 months, but can be extended up to 3 months by decision of the tax authorities.

Application procedure

The declaratory procedure allows VAT to be refunded more quickly, before a desk audit is completed. The right to apply the declarative procedure of VAT refund is granted to organizations that have existed for more than 3 years and during this period have paid 2 billion or more taxes, have a bank guarantee or surety for the payment of VAT, as well as in the period from 2022 to 2025 the right to the declarative procedure of VAT refund can be used by any company that is not in the process of liquidation or reorganization and in respect of them is not initiated insolvency (bankruptcy) proceedings.

Following a desk audit, the tax authority decides whether to refund or refuse to refund VAT.

Refusal to refund VAT

In what cases a VAT refund may be refused:

  • The conditions for VAT deductibility are not met, e.g. there are significant errors in invoices; there are no supporting documents; 3 years have passed since the basis for VAT deductibility arose);
  • The conditions are met, but the grounds for VAT refund are created artificially, i.e. the tax authorities believe that the transaction, which resulted in the possibility of VAT refund, was carried out for the sole purpose of obtaining money from the budget.

Support services for desk audit and VAT refunds

Our specialists provide support and assistance at any stage of the cameral audit process, from preparing a VAT declaration to drafting objections to the Act on the results of the cameral audit and defending the client’s position in case the tax authorities refuse to refund VAT.

Our services include support in the cameral audit and VAT reimbursement:

  • primary analysis of transactions and documents reflected in the purchase and sales ledger for the period under audit, assessment of existing risks, provision of recommendations on how to correct primary documents before submitting them to the tax authorities;
  • preparation of documents to be submitted to the tax authorities in response to a demand;
  • preparation and submission of an application for VAT refund, in case the declarative VAT refund procedure is chosen;
  • control over the deadlines, interaction with the tax authorities;
  • representation of the client's interests in the tax authorities
  • expert examination of the issued decision;
  • preparation of objections to the tax audit report, if required, to resolve tax disputes in a pre-trial procedure;
  • defense in arbitration court, in case of impossibility of pre-trial settlement of disputes with tax authorities.

Advantages of undergoing a desk audit as part of VAT refund with us

Integrated approach

A team of specialists including lawyers, auditors, tax consultants, chief accountants works with you

Detailed analysis

We conduct an in-depth analysis of all transactions and documents required to confirm recoverable VAT

Extensive experience

We have accumulated extensive positive experience in VAT reimbursement regardless of the amount of reimbursement

Leading positions

Konsu is one of the leading consulting companies in Russia. We have been included in the following ratings of the rating agency Expert RA:

  • Top-10 in accounting outsourcing
  • Top-10 in payroll outsourcing
  • Top-15 in financial consulting
  • Top-15 in legal consulting
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