Before introducing the VAT refund or refund process, first understand what VAT is.

Value added tax (VAT) is a state tax paid to the state budget.
When an amount subject to VAT refund is formed based on the results of the reporting period, this amount is usually transferred to the next reporting period. It is included in the VAT amounts for general purchases:

What should a corporate entity do if it obtains a VAT refund? In this instance, the amount is justified first on the basis of the results of verification or investigation based on a written application. It is then credited to a joint account.

There are certain criteria regarding the recoverable amount of VAT credited to a joint taxpayer account. The part of the amount that does not exceed 20% of the tax base for transactions taxed in the reporting period at the rate of 0% VAT is refunded. The part of the VAT joint amount exceeding this amount continues to be counted as the recoverable amount. In the future, it is sent to repay tax liabilities for the amount of VAT or credited to a single account.

Now the VAT refund amounts related to the period of their recognition as VAT payers are returned to taxpayers, regardless of whether they were considered VAT payers at the time of filing an application for a refund:

VAT refund, according to the current laws of our country, is made at the end of each reporting month.

In 2018, the VAT refund system worked on a 6-month cycle. This means that when a company exports a product, the VAT amount is returned to the company.
In the future, the term was shortened: a three-month period was established. Later reaching 1 month.

Short terms of VAT refund organization are especially important for exporters. Since the return of additional funds stimulates export growth.
VAT refund is also an additional means of assisting economic entities.

By issuing VAT refunds, the government hopes to boost economic units' production. VAT refund is a type of collaboration between a government and a business. When the government supports an economic entity's effective work through developing the economy.

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