Nuances of the VAT Refund

A person registered as a VAT payer for less than 12 months, has the right to include in the budget refund the tax amount paid for the purchase of goods / services used for the construction of fixed assets, including the case if the volume of taxable transactions for the past 12 months is less, than the declared sum of the budgetary compensation

This has been set out by the State Fiscal Service in letter № 20540/6/99-95-42-01-16-01.

It is to be noted that in accordance with paragraph. 200.5 Of Art. 200 of the Tax Code the following persons are not eligible for budgetary compensation:

- Those who were registered as payers of this tax less than 12 months prior to the month, based on which the application for the budgetary compensation is submitted (except for charge of the tax credit as a result of the acquisition or construction of fixed assets);

- Those who had volumes of taxable operations in the past 12 months, which were less than the stated amount of the budgetary compensation (except for charge of the tax credit as a result of the acquisition or construction of fixed assets)