On January 17, the Government approved a draft law settling VAT refund for taxpayers who submitted their applications before February 1, 2016, and have not received their tax refund yet.
What’s it about?
To restore justice for taxpayers who submitted their applications before February 1, 2016, and were denied tax refund, the Ministry of Finance prepared a draft law meant to close gaps in the tax regulations.
The draft law stipulates the refund of the agreed VAT sums captured in the Temporary Register in the chronological sequence and within the sums stipulated in the state budget for the respective year. The VAT refund sums will be distributed between the Temporary Register and the Register of VAT Refund Applications by the Cabinet of Ministers.
Also, the draft law is designed to settle the refund of the VAT applied for prior to February 1, 2016, which was rejected by the SFS as per January 1, 2017 (respective taxpayers were not entitled to receive tax refund from the state budget) and was approved by the court with the respective court decisions having entered into force.
Thus, the proposed draft law will ensure equal terms for taxpayers in regard to the application of the Tax Code regulations on VAT refund from the state budget according to the applications captured in the Temporary Register and the applications for which administrative and court claims have been finalized.
What’s the benefit?
- restored justice;
- protected rights, legal interests and equal terms for all taxpayers.
What comes next?
The draft law will be submitted to the Parliament soon.