From July 1, 2021, tax monitoring participants will be able to reimburse VAT and excise tax

Participants of tax monitoring will be given the right to apply to the tax authorities for reimbursement of value added tax and excise tax. Meanwhile, it will be possible to do this within two months from the date of filing the tax return.

It should be noted that tax service will check the legality of the refund of specific type of tax in the framework of tax monitoring without conducting in-house tax audit.

Should the provision of compensation be found unjustified, as a result of the audit, the company will be obliged to return the excessively reimbursed amount of tax with the interest accrued on it.

In order to create conditions for taxpayers to exercise their right to compensation, the tax service, in particular, has developed:

• application form for reimbursement of value added tax or excise tax;
• format of application’s submission in electronic form to the tax authority.