What is the procedure for VAT refund (refund) when importing goods?

Object of taxation upon import

The import of goods in Russian legislation is the import of goods into its territory without mandatory export.
Import is considered an absolutely independent object of VAT taxation, which means that importing taxpayers are obliged to act in accordance with the norms of the Tax Code of the Russian Federation, which clearly defines the procedure for taxation of import procedures. The applicant's obligations to pay VAT upon import arise as soon as the customs officers register the declaration. In this case, it is necessary to fully pay VAT at customs before the goods are released from it. The tax is calculated at established rates from the total amount, which is the customs value of imported goods, excise tax, and customs duty.

For information about what costs are included in the customs value, read the article “Inclusion of transport costs in the customs value.”

To determine the correct tax base, the currency value of goods must be converted into rubles at the exchange rate of the Central Bank of the Russian Federation on the date of registration of the declaration.

ConsultantPlus experts explained step by step how to take into account VAT when importing from countries outside the EAEU. Get trial access to the K+ system and upgrade to the Ready Solution for free.

General information on VAT refund

There are several reasons for charging VAT:

• Due to this tax, there is a constant replenishment of the budget of the Russian Federation;
• it allows you to avoid multiple taxation during the production and subsequent sale of goods;
• makes it possible to replenish the treasury even if in the chain of resale of goods one of the participants in the process has not paid the tax.

Organizations can count on reimbursement of this tax from the budget, but only if a number of conditions are met:

• the company pays VAT on an ongoing basis;
• the purchased goods or services are not used for the needs of the organization, but are intended solely for making a profit;
• the transaction is reflected in the accounting documents (properly executed, signed invoices are required);
• the product or service is accepted for accounting by the organization, transactions are reflected in the purchase book;
• the parties to the transaction actually exist.

Without the will of a legal entity, the tax office does not have the right to independently refund overpaid VAT. The procedure for VAT refund on imports is of an exclusively declarative nature.

Any organization planning to trade with foreign companies must know what tax burden it will have to bear.

According to the established rules, the obligation to pay tax is assigned to a legal entity, regardless of the taxation system it applies (be it UTII or simplified tax system, for example). Read about paying VAT under the simplified tax system in this article.

The amount of tax depends on the type of imported product and can range from 10 to 18 percent (export transactions are taxed at a zero rate).

Special rules for paying tax and submitting the necessary reports are established for the import of goods from the countries of the Customs Union (EAEU).

When can I get a VAT refund on imports?

In accordance with Art. 172 of the Tax Code of the Russian Federation, VAT that was paid during customs procedures can be deducted, thereby reducing further tax payments. However, this requires simultaneous compliance with certain conditions:

1. Imported goods are purchased for mandatory participation in transactions subject to VAT.
2. The arrival of goods is reflected in accounting.
3. The importer who wishes to apply deductions has documentary evidence of the actual payment of customs VAT.

NOTE! Strict compliance by the importing company with the above conditions directly determines whether it will be able to apply a tax deduction and reimburse VAT on import transactions.

And one more moment. If import VAT was unlawfully and excessively withheld by customs and then returned by it, the deduction must be restored.

At what point, find out here .

In what cases is VAT not paid on imports?

Cases of exemption from VAT are listed in Art. 150 of the Tax Code of the Russian Federation and cover 15 positions of various goods, materials, equipment and other objects. In order to exempt a company from paying tax, it is not enough to import certain goods according to the list specified in the code. Customs will necessarily require permits issued by various government agencies.

A fairly wide range of objects are not subject to VAT. Let's name just a few of them (the full list is indicated in Article 150 of the Tax Code of the Russian Federation, you can find it on the official website of the Federal Tax Service):

1. goods transferred to the Russian Federation as gratuitous assistance (this exception does not apply to excisable goods);
2. goods that are not subject to taxes on Russian territory, as well as components for their production (for example, products for the rehabilitation of disabled people, prosthetic and orthopedic products, etc.). The full list is contained in sub. 1 clause 2 art. 149 of the Tax Code of the Russian Federation, and more detailed lists are determined by legal acts of the Government of the Russian Federation;
3. raw materials for the production of immune preparations, the list of which is established by the Government of the Russian Federation;
4. exhibits purchased (received as a gift) by government agencies that are of special cultural value;
5. works of cinematography and printed materials, if they are imported as part of a free international exchange.

According to the provisions of Art. 151 of the Tax Code of the Russian Federation, VAT is not charged in the following cases:

• if the products are subject to placement under customs procedures such as transit or re-export, placement in customs or free warehouses, duty-free trade, the need for destruction or refusal in favor of the state, special customs procedures, as well as in the case of filing a declaration for supplies;
• when goods are located on customs territory or outside this territory for the purpose of processing;
• if the products are under a time-limited export procedure.

To resolve the issue of exemption from VAT in each specific case, you must first refer to the provisions of the Tax Code of the Russian Federation, and then study the lists of goods that specify these norms.

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Availability of documents

Now let's look at these conditions in more detail. According to customs legislation, the import operation begins when the declaration and all documentation necessary for processing the imported goods are handed over to customs officers. It ends with the release of goods by a customs officer, who puts the appropriate marks on the declaration and other related documents - transport, commercial, etc.

This means that the imported goods will be considered released from customs only when the importer has in his hands a customs declaration and other necessary accompanying papers with a stamp from customs officials authorizing the release.

Further use of the product

The condition on the possibility of refunding import VAT solely for the subsequent use of goods in transactions subject to this tax does not require any special confirmation from the importer for him to make tax deductions.

However, keep in mind: if this condition was not met (and controllers will certainly identify this in the future), the use of such deductions will be regarded as unlawful, with all the ensuing consequences. The same applies to non-compliance with the condition regarding the use of imported goods only within the country.

Registration

As for the acceptance of goods for registration, the Tax Code of the Russian Federation still does not contain unambiguous interpretations explaining what documents the importer can use to confirm this fact to the inspectors. However, the general legal practice in this case is such that there will be no confirmation of acceptance of the goods for registration if the taxpayer does not have a primary document drawn up in accordance with the norms of the current legislation.

About the documents that serve as the basis for the capitalization of incoming inventory items, read the article “Maintaining document flow for warehouse accounting of materials.”

How to return VAT refund

To return previously refunded VAT, it must be reflected in the next declaration. The declaration form does not provide a separate line specifically provided for reflecting the restored VAT for cases of export of goods from the territory of the Russian Federation in the re-export mode.

There are only two decoding lines for this line: line 100 (the restored amount related to transactions taxed at a rate of 0 percent) and 110 (the amount of VAT accepted by the buyer for deduction from the transferred advance, which at the time of receipt of goods (work, services) is subject to restoration, in accordance with subparagraph 3, paragraph 3, article 170 of the Tax Code of the Russian Federation).

Thus, the restored VAT amount must simply be included in line 090 as part of other restored amounts for the corresponding tax period.

Reference

The VAT declaration form was approved by Order of the Ministry of Finance of Russia dated October 15, 2009 No. 104n.

And one more question: in what tax period should the tax be restored? This must be done in the tax period in which the actual export of re-exported goods from the territory of the Russian Federation occurs (letter of the Federal Tax Service dated May 10, 2006 No. 03-4-03/892).

You can wait for the demands of the tax authorities. After a desk audit, the tax authority will send a written request to the taxpayer to return the previously refunded VAT. The organization is obliged to independently pay the amounts specified in the return request within five days from the date of its receipt (Article 176.1 of the Tax Code of the Russian Federation).

So, in conclusion, let’s say that the Ministry of Finance previously held a similar point of view. Previously, this topic was discussed in letters of the Ministry of Finance dated 08.08.2008 No. 03-07-08/197 and dated 28.10.2009 No. 16-15/113543. The Financial Department once again clarified that in accordance with subparagraph 1 of paragraph 2 of Article 171 of the Tax Code of the Russian Federation, value added tax paid when importing goods into the territory of the Russian Federation is subject to deduction provided that these goods are purchased for transactions subject to VAT. Since goods imported into the territory of the Russian Federation in connection with their return to a foreign supplier due to inadequate quality are not used in the above-mentioned operations, the VAT paid to the customs authorities upon import of this product and accepted for deduction is subject to restoration.

Tax consultant Yu.V. Golubeva

, for the magazine “Regulatory Acts for Accountants”

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Paying tax

Payment of taxes and duties at customs today can be made in various ways: using ATMs, electronic or payment terminals, etc. Depending on the chosen method of paying customs VAT, as confirmation of this fact, the importer can provide the controllers with the relevant documents - receipts or payment orders .

If the taxpayer complies with all the conditions considered, customs VAT can be deducted.

To learn about which persons become payers of customs VAT, read the material “Who is a VAT payer?”

In what cases can you get a deduction?

According to the established rules, the tax paid at customs when importing products into the Russian Federation can be recovered. Providing a deduction is possible if the goods will be used in transactions that are subject to VAT, the products will be resold, and payment of the payment is proven by documents.

The tax deduction does not apply to objects that are exempt from tax or operate under a special regime. The paid tax is taken into account in the nominal price of the product. You can only receive a refund if you have the appropriate documentation.

Documents to confirm VAT refund upon import

In order to confirm his right to deduction, the importer is obliged, along with the tax return in which he declared deductions and refunds of import VAT, to submit to the tax authorities:

• customs declaration stamped by customs officers;
• a tax payment document, which is evidence that VAT actually went to the budget.

Next, tax inspectors will conduct a mandatory check of the validity of the import VAT refund in accordance with Art. 88 of the Tax Code of the Russian Federation, during which they will need to present all the papers available for import transactions. If there are no claims to the documents from the tax authorities, the importer will be issued a decision on compensation at the end of the inspection.

See also our material “How is VAT refunded: return (refund) scheme?” .

Documents for processing compensation

To receive a VAT refund, you will need to provide some documents. A trade contract for the import of goods into the Russian Federation is mandatory. In addition, you will need a declaration from the customs office where the authorities were marked when paying the tax at customs. Invoices and other documents that serve as payment documents will be required.

When registering the transaction passport, it must also be presented. Additionally, you will need waybills and accompanying papers; when importing from CU member states, you will need purchase books.

The contract must contain information about delivery conditions, product characteristics, timing and cost. This list of documents is attached to the tax return and submitted to the relevant authorities.

How is the VAT refund check carried out when importing goods?

In order to verify the legality of import VAT refunds, controllers carry out the following activities:

1. Analysis of documents submitted by the importer, during which the declarant, shippers, consignees, actual temporary storage warehouses are identified and the fact of vehicles crossing customs posts is determined.
2. Determination of a foreign manufacturer (carried out by sending a request to the relevant control authorities of foreign states). The presence or absence of information about a foreign counterparty on the Internet can also be analyzed.
3. Establishing the actual buyer of the goods based on the results of a study of the movement of goods: transport and accompanying papers are checked, the carrier, the type of transport used and its owner are determined. Also, the volume of the imported consignment is checked for compliance with the carrying capacity of the transport, the goods distribution route is established, and control measures are carried out in relation to all persons involved in the chain (carriers, forwarders, consignees and even drivers).
4. Identification of the final buyer according to the above scheme.

Carrying out a detailed audit, tax authorities are trying to establish facts of illegal VAT refunds, including through the use of gray tax schemes.

Read about the procedure for such an audit in the article “Features of a desk audit for VAT refundable.”

Deduction, return or refund of VAT on export

Main sections:

How to return VAT when exporting?

Desk audit for VAT refund

Consultation on VAT deduction

VAT is an indirect tax levied on all services and goods produced in Russia, and also levied on the import of imported products. There are two VAT rates in Russia – 10% and 20%.

It doesn’t matter whether you purchased the product or produced it yourself - you paid a certain amount of VAT to the budget. When exporting goods, the VAT rate is 0%, which means there is an overpayment of VAT to the budget. In accordance with tax legislation, companies operating for export have the right to refund or refund previously paid VAT.

The wording “VAT refund” means the return of funds to the company’s current account, that is, the receipt of “real” money. While “VAT refund” is a deduction by which you can reduce the amount of VAT on the subsequent sale of goods.

How to return VAT when exporting?

First of all, you need to confirm the application of the 0% VAT rate by the fact of export of goods outside the Russian Federation. 180 days are provided for this from the date of shipment of the goods outside the Russian Federation.

Therefore, the following documents should be submitted to the tax authorities within 180 days from the date the goods are placed under the export procedure:

• Foreign trade contract, specifications and other additional agreements, if any;
• When exporting to countries outside the EAEU - a declaration for goods with a seal and o. When exporting goods to the countries of the EAEU - a statement of import and payment of indirect taxes with a mark from the customs authority of the country of destination;
• Waybill:

• with customs marks about the actual export of goods across the border
• with signatures and seals of the sender and buyer

• A bank statement confirming the receipt of money from a foreign buyer;
• Invoice.

However, this list is general and may vary depending on the product category.

Desk audit for VAT refund

Next, a desk audit is scheduled. The tax office checks all the company's activities for the quarter in which the VAT refund on exports is claimed. A desk audit is carried out within 3 months from the date of filing the tax return.

If no violations were identified during a desk audit, then the tax inspectorate makes a decision on VAT reimbursement and refund within 10 days , and within another 5 days the Federal Treasury returns the VAT amount to the company’s bank account.

If any contradictions were discovered during the desk audit, an additional desk audit is assigned, during which a number of different tax control activities are carried out, for example, a tax inspector may visit the company to inspect property or interview witnesses. In the event that an audit reveals violations, the company is obliged to pay a fine - tax and penalties.

If you do not want to take on all the tax formalities associated with the export of goods, as well as undergo a desk audit, we offer, in which no difficulties will arise for you.

Get a consultation right now by calling +7 (499) 703-18-15, our specialists will answer all your questions

When can you argue with the tax office?

Speaking about the refund of import VAT, one cannot fail to mention that there are a number of controversial situations in which the opinions of controllers and taxpayers differ. For example, the import of demonstration samples: as practice shows, inspectors often remove deductions for them, citing the fact that the VAT paid on the import of free samples cannot be reimbursed.

Is it possible to somehow substantiate your right to a deduction in this situation? Undoubtedly. It is only necessary to clarify that the samples received free of charge are planned to be used in the sale of similar goods. And since the sale of analogue goods is subject to VAT, it means that the samples were also purchased for taxable transactions. Therefore, the deduction is legal.

About restoration and VAT refund

When returning goods of inadequate quality to a foreign supplier, VAT, previously accepted for deduction when importing goods, must be restored. By the way, employees of the Russian Ministry of Finance remind us of this in their published letter No. 03-07-08/41606 dated August 20, 2014, referring to Article 171 of the Tax Code of the Russian Federation.

Financiers explained that VAT paid on the import of goods can be deducted provided that these goods will be used in transactions subject to VAT (subclause 1, clause 2, article 171 of the Tax Code of the Russian Federation). Since goods exported from the territory of the Russian Federation in connection with their return to a foreign supplier due to inadequate quality are not used in operations subject to VAT, the tax amounts paid to the customs authorities upon import of goods and previously accepted for deduction are subject to restoration.

At the same time, the return of low-quality goods across the border is considered re-export, and the VAT paid upon import into the territory of the Russian Federation is also returned to the taxpayer. In accordance with subparagraph 2 of paragraph 2 of Article 151 of the Tax Code of the Russian Federation, when goods are exported outside the territory of the Russian Federation in the customs procedure of re-export, tax is not paid, and tax amounts paid when imported into the territory of the Russian Federation and other territories under its jurisdiction are returned to the taxpayer in the manner provided for by the customs legislation of the Customs Union and the legislation of the Russian Federation on customs affairs.

Thus, in order to return goods imported from abroad and restore VAT, the company will have to go through the re-export procedure. What is this customs procedure? What conditions must a Russian buyer meet in order to re-export low-quality goods and at the same time return “customs” VAT?

Reference

Re-export is one of the types of customs procedures in which goods previously imported into the territory of the Customs Union (hereinafter referred to as the CU) are exported from this territory without payment and (or) with a refund of paid amounts of import customs duties, taxes and without the use of non-tariff regulation measures (Article 202, 296 Labor Code of the Customs Union).

Not all imported goods may fall under the customs procedure of re-export in accordance with Article 297 of the Customs Code of the Customs Union, but only:

• foreign goods located on the territory of the Customs Union;
• goods placed under the customs procedure of release for domestic consumption, if they are returned due to failure to fulfill the terms of a foreign economic transaction.

Results

VAT paid at customs when importing goods can be deducted for this tax, but this requires compliance with a number of conditions in relation to the imported goods:

• it is intended for transactions subject to VAT;
• it is reflected in accounting;
• the tax relating to it is paid to customs.

Each of these points must be confirmed by documents that the Federal Tax Service has the right to request to verify the legality of applying the customs VAT deduction.

Sources: Tax Code of the Russian Federation

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Differences in VAT payment for EAEU countries and others when importing

In general situations, VAT is paid by the importer at customs when importing goods from abroad. This obligation arises when importing products from countries that do not belong to the EAEU. The company clears the goods at customs, pays duties and taxes. In the future, VAT can be deducted only through the Federal Tax Service.

A different situation arises if products are imported from the Eurasian Union. If the country is part of the Customs Union, there is no need to process products or services upon import. Payment of VAT on imports is made to the Federal Tax Service. There you can return part of the funds to the importer.

To process a return, a number of conditions must be met. Thus, the importer regularly fulfilled his obligations to make payments to the Federal Tax Service in the proper manner, the imported goods were not intended for the needs of the organization, the goods were purchased for operations for which VAT is charged to the organization.

You can get a tax refund if the company has proof of payment of the duty, the acquisition transaction was entered into the purchase book, the transaction was recorded, an invoice was issued for the goods, and the participants are not fictitious.

If the price of the goods in the contract is specified in foreign currency, it is recalculated into rubles for tax purposes. Refunds can only be made by those companies and individual entrepreneurs who have chosen OSN. If an organization works on the simplified tax system, there is no possibility of processing a return.