The procedure for refunding VAT in practice

According to Art. 176 of the Tax Code, a legal entity that carried out the supply of goods outside the Russian Federation has the right to reimburse the domestic VAT of 18%.

The law regulates this issue from beginning to end. The terms, a package of documents, an order are prescribed. But, despite all the efforts of the legislator to make the mechanism completely open and understandable, the procedure on paper is rather complicated and confusing.

I, as the head of a company focused on export trade, I can say with certainty: the export of goods is not a complicated matter, but it is closely connected with the risks of losing money.

So, what does the VAT refund procedure look like in practice?

In order to receive a VAT refund, it is not enough just to sell the goods abroad with a VAT rate of 0% by writing it dry in the documents and informing the state about it. With the sale of goods outside the Russian Federation, the exporter has the main task - to prove to the state that the applied VAT rate of 0% - is justified! That he really has the right not only not to pay the domestic VAT of 18%, but also to receive from the state a refund of VAT paid when buying goods on the Russian market.

This procedure is quite amusing and requires a lot of time.

To practice. You sold the product outside the Russian Federation and want the state to return 18% due to you.

The first thing you need is a supply contract with a non-resident and a specification for it. I can recommend to make a uniform contract form for all deliveries with the basic conditions, and in the specification to prescribe the terms of the specific delivery. This greatly saves time when approving delivery by the buyer, if your client is a large company with a large legal department. You will also need a contract with the purchase specification, that is, with your supplier in a similar scheme (one contract + specifications for it).

In general, you should get used to the fact that you need to have a complete set of documents for both buying and selling goods. On any amount, be it a million or one ruble.

Then, on the 25th day of the month following the end of the quarter in which the delivery was made, you must file a full set of documents with the tax authority confirming your right to refund VAT and the reasonableness of using your 0% VAT rate.

This package includes the following documents:

Purchase / receipt documents at a rate of 18% VAT

  • Delivery contract with specification
  • Commodity bill
  • Invoice
  • TTN (or CMR) (if not self-delivery)

    Sales documents at a VAT rate of 0%

    • Delivery contract with specification
    • Commodity bill
    • Invoice
    • TTN (or CMR) (if not self-delivery)

      Accounting Accounting Documents

      • A receipt order for each delivery to confirm goods posting
      • A payment order for each payment to confirm the fact of payments for both purchases and sales
      • Purchasing book
      • Sales book

        Well, the most important document is "Application for the payment of indirect taxes ..."

        It turns out a very significant package of documents. All this package must be submitted electronically through the PIK VAT program, and also take all documents in paper form to the tax office at your company's registration office.


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