Some illiterate taxpayers are wondering how to apply for a VAT refund for individuals, and how much they are entitled to. To answer this question, we have prepared special material explaining what error lies here and how to get the money you are entitled to.
VAT refund for individuals
How to return VAT to an individual
It is necessary to understand what VAT is. So, the required abbreviation stands for value added tax. This fee is deducted from the added value of any product sold by the seller. In other words, the seller produces or purchases any product for further sale. To obtain a benefit, he adds a certain monetary value to the initial cost of a unit of production, and then takes this difference for himself.
From the definition it is clear that value added tax cannot be directly related to the ordinary citizen and layman. There is, however, an indirect relationship. Despite the fact that payments of value added tax are borne by sellers, that is, various organizations, the burden of the tax burden is actually borne by buyers, since they are forced to pay for a product, the price of which includes the price of its manufacture, delivery, the seller’s income and the amount of tax deductions.
It turns out that a VAT refund to an individual is not possible. However, you can return personal income tax - a tax on the income of an individual, deducted to the state treasury from all income received by taxpayers. This category includes not only wages, but also:
- funds received from the sale of housing;
- money for selling a car;
- inheritance received;
- winning the lottery;
- material assistance and other funds received by the citizen.
Let's take a closer look at the characteristics of personal income tax and talk about how to get a partial refund.
Who can refund VAT
All taxpayers have the right to reduce the tax payable through input VAT.
Input tax is the tax that companies pay on their purchases: goods, materials, work, services, etc. If at the end of the quarter the input tax turns out to be more than the one calculated for payment, the company will be able to return the difference between them - refund VAT. This often happens to those who during the quarter sold less than they bought, or are engaged in exporting.
You can claim a refund up to three years after the end of the quarter in which the deductions exceeded the tax due. You can go beyond this period only if you have good reasons. For example, the Federal Tax Service did not fulfill its duties correctly, although you submitted a refund on time.
What is personal income tax
If a citizen receives money that acts as income, he is obliged to give part of it to the state, which then uses the funds received to improve the level of well-being of the country. The current tax rate today is 13% of the amount received. This deduction is a tax on the income of an individual.
What is personal income tax?
According to the letter of the law, the tax period for personal income tax is the calendar year. The amount due to the homeland is calculated based on the following two indicators:
- the amount of taxable money;
- rates of 13%.
When it comes to withdrawing part of the funds from an employee’s salary, bonuses received by him and other income at the place of employment, tax agents, that is, employing organizations, are responsible for transferring and calculating the amounts. The procedure is carried out with the help of specialists from the company’s accounting department, and the following is recorded:
- all money received in favor of the employee;
- tax deductions provided;
- funds calculated for sending;
- funds actually sent.
VAT refund deadlines and late interest
If the tax office decides to fully or partially refund your VAT, it informs the treasury, which will return the tax to your current account within five days after receiving the message from the Federal Tax Service. The department will inform the tax office when and how much money it transferred.
It turns out that the general period for a return is 12 days from the end of the chamber.
If your return is not completed on time, you will be charged interest for each day of delay. Their sum is calculated using the formula:
Interest = VAT in × Dp × St / Kd , where:
- VAT in - tax refundable;
- Дп — number of days of delay;
- St - refinancing rate for the period of delay;
- Kd is the number of calendar days in a year.
This interest does not need to be included in income when calculating income tax.
Example. Late refund of VAT with accrued interest
For the 1st quarter of 2021, at Elektronik LLC, the amount of tax deductions for VAT exceeded the amount of accrued tax by 46,000 rubles. Elektronik decided to reimburse this amount from the budget while VAT for the 1st quarter has not yet been paid (until April 25, 2021). To do this, on April 16, the organization submitted to the inspectorate a VAT return with the tax to be refunded and an application for refund.
The tax office conducted a desk audit and decided to fully refund the tax. But the money arrived in the organization’s bank account 6 days late.
Let's calculate the interest payable: 46,000 × 6 × 4.25% / 365 = 32 rubles.
In accounting, the organization will make the following entries:
- Dt 51 Kt 68 “VAT” - 46,000 - tax refunded according to the declaration for the 1st quarter of 2021.
- Dt 51 Kt 76 - 32 rubles - interest received for late return of refundable tax.
- Dt 76 Kt 91-1 - 32 rubles - interest for late return is taken into account
What are the rates?
We mentioned above that there is a set rate for the required tax collection - 13% of the amount received. However, it is really only for so-called residents of the Russian Federation - citizens who stay in the country for at least 183 days per year.
Let's give an example. You are a resident of Russia because you live on its territory for the prescribed period of time. Your place of employment is in the Lastochka candy manufacturing company; you are the company’s advertising manager. The promised salary for the desired position is 40 thousand Russian rubles. However, you will not be able to receive the full specified amount every month, since you are required to give the state 13% of it, that is, 5 thousand 200 rubles. As a result, the salary ceases to please so much and approaches the value familiar to the common man, amounting to 34 thousand 800 units of Russian currency.
What amount of deductions are due to other citizens who are not residents of the country? Seriously exceeding the previously stated rate. Non-residents of Russia give the state 30% of their income, an amount that is simply unbearable for many.
This applies not only to wages, but also to more serious amounts. Let's imagine that you are not a resident of the Russian Federation, but own an apartment on its territory. After selling housing from the funds received, if the deadline for exemption from the required payment was not waited, you will have to pay not 13%, but the entire 30%, to the country’s treasury. Such a payment will seriously hit your pocket. You have only one option - to postpone the implementation and acquire resident status, and then resume the process again.
There is also a separate category of payments, implying profit distributed among the members of a joint-stock company or other entity, issued to persons in the composition in proportion to the securities they have. This profit also has an official name - dividends. According to the letter of the law, residents of the country pay deductions from them in the amount of 13% of the amount.
For cash prizes coming from any source and exceeding 4 thousand Russian rubles, the current royalty rate will be 35%.
Results
The amount to be reimbursed from the budget in the VAT return arises when the amount of applied deductions exceeds the amount of tax calculated for payment. A desk audit by the Federal Tax Service Inspectorate of such a declaration is usually carried out with a request for primary documents confirming the correctness of the figures shown in the report.
Reimbursement itself can occur in 2 ways:
- declarative (can be used only under certain conditions), when the tax is reimbursed before the start of the desk audit;
- general, in which tax refund is carried out after a desk audit.
Using the refundable amount, the Federal Tax Service will independently repay the taxpayer’s debts on payments to the federal budget before it is returned.
If you have any unresolved questions, you can find answers to them in ConsultantPlus. Full and free access to the system for 2 days.
Objects subject to taxation
Let's take a closer look at how the law defines the objects of personal income tax taxation. Their list includes the following names.
What objects are subject to tax deductions?
Object 1. For a resident of the country, the object subject to tax calculation is, first of all, income expressed in cash. In this case, the sources of its receipt may be:
- in the country;
- outside the country.
Object 2. For non-residents of Russia, the role of taxable income is profit received on its territory.
In addition to labor payments, you will have to part with part of the money if they are presented:
- copyright payments;
- rental payments;
- funds received as a result of the successful sale of property, vehicles, securities and similar cash receipts.
However, the following items do not apply to taxable objects.
- Money paid by government agencies as support to socially vulnerable categories of citizens.
- Funds received as pension accruals.
- Compensation upon dismissal of an employee for damage caused to his health.
- Child support payments that a person makes to a child living with the other parent or other relative.
- Scholarship payments to students of higher educational institutions.
- Funds received as remuneration by the donor.
- A sum of money in the format of a grant issued as supporting funds for programs of the following nature: educational;
- scientific.
Tips and tricks
The first thing that should definitely be said is that an incorrectly filled out declaration with false information can lead to the return of documents or troubles in the form of administrative or criminal liability.
If the applicant does not have payment documents, then payments will be denied to him, so you should pay more attention to these pieces of paper.
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Who is the payer of personal income tax?
The obligation to contribute, at a time specified by law, to the general budget of the state treasury amounts of the established amount is imposed on persons of the following categories:
- having Russian citizenship;
- foreigners temporarily or permanently residing in our country;
- persons who have no citizenship.
Persons paying tax also include individual entrepreneurs, since they are also listed as individuals, it turns out that they must transfer the required tax on cash receipts, which are the company’s revenue.
Tax payments are subject to payment not only for persons who have reached the age of majority, but also for younger persons. They cannot pay taxes on their own until they reach adulthood, so the function of payer is taken over by parents or organizations from which the individuals in question receive funds.
We mentioned above that basically the categories of payers are divided into two most important groups:
- residents;
- non-residents.
At the same time, certain categories of citizens who are not subject to this division are excluded from the groups; they always have the status of residents, even though they have not appeared on the territory of their homeland for years.
We are talking, first of all, about representatives of the structures:
- military;
- state
Representatives of each of these categories can be sent and serve in other countries for years, without being able to appear in their homeland in order to maintain current resident status. Thanks to a special decree of the government, their status cannot be lost as long as the person remains in a position in the desired structure or another that is of a similar nature and provides similar privileges.
What taxes is an individual entitled to return in Russia?
The rules are prescribed in the Tax Code of the Russian Federation. It follows from them that there is no scheme for returning VAT to your card in 15 minutes. For those who are not registered as individual entrepreneurs, there is only one legal way to return part of the money paid to the budget - a personal income tax refund. The taxpayer is provided with tax deductions:
- on the citizen himself;
- for children;
- for education;
- for treatment;
- for the purchase of housing;
- to pay mortgage interest.
For details on the rules for obtaining a personal income tax refund, see the article “Tax deduction: ways to return part of the taxes paid.”
Reporting
As for most other types of tax levies, and for personal income tax, it is necessary to submit various reporting documents for verification. Depending on the method of acquiring funds, various documents must be prepared. Most often, it is necessary to prepare a certificate in form 2-NDFL, containing data on all income issued to the employee at the workplace and tax deductions sent to the treasury for a year.
Note! The payer does not have to prepare the required paper himself; this will be done by the tax agent, that is, the employing company.
The deadline for submitting reports for all employees working in the company is April 1 of the year following the reporting period. It is mandatory to prepare two copies of the certificate.
According to the main body of information regulating tax legal relations in the country, people who receive income are required to declare income:
- from the activities of individual entrepreneurship;
- from owning private notary or law firms;
- from the received winnings, the value of which exceeds 4 thousand Russian rubles;
- from tax agents on staff;
- from tax agents, while receiving funds from which tax was not calculated;
- from the sale of real estate, cars and other property and in other cases.
Why are there two payments on the site?
Many have noticed that after one payment, another and even larger one follows. A technique from psychology is used here.
If a person has performed one action in favor of someone, then with a high probability he is ready to perform a subsequent action, even with great losses for himself.
In this case, it is expressed in payment first 370, and then 532 rubles. After all, if a person paid 370, then he already believed, and even more money is squeezed out of gullible hamsters.
As a result: in two transactions, 902 rubles ended up in the scammers’ account. Can you imagine how many people are being deceived?!
Personal income tax refund or tax deduction
A partial refund of personal income tax paid to the state treasury is possible for every person; the name of this phenomenon sounds like “tax deduction”. In fact, it represents an amount of money by which the taxable financial base can be reduced, or which can be obtained from the tax office or through the employer. It is drawn from funds previously paid by the taxpayer to the country's treasury. The less he paid, the less he himself will receive if a suitable situation arises. There are various types of tax deductions.
What can you get personal income tax for?
Standard - applicable to the maintenance of children, as well as some groups of adult taxpayers. Most often used by parents. Thanks to its availability, the state allocates the following amounts for child support:
- the first and second children will receive 1 thousand 400 rubles each;
- the third and subsequent offspring are 3 thousand each;
- Increased compensation has been established for disabled children, the amount of which reaches 12 thousand rubles.
Receipt of money under the standard deduction is made directly through the employer, after submitting a corresponding application and a package of necessary documents to the accounting department at the place of employment.
Child tax deduction: how to prepare documents
In the material presented, we discuss how to go through this bureaucratic procedure in 2021 and use the right to receive a cash deduction for children.
Social – allocated to the costs incurred by citizens associated with obtaining higher education, expensive and conventional treatment. This category also includes charitable, pension and insurance expenses. To cover these expenses, the law provides 120 thousand rubles per year, and you must provide the tax office at the end of the current taxation period with an impressive list of documents confirming your right to compensation for expenses from the state. If you want to start receiving money immediately, do not wait, but contact your employer.
Investment - this compensation is provided upon the sale of securities of value that were circulated on an organized market and were the property of a person for more than 36 months. The maximum possible amount to be received is the product of the number of annual periods that the securities were in possession and 3 million Russian rubles.
Property – relies on the sale or acquisition of residential real estate. In the first case, the maximum deduction amount is 1 million rubles, in the second:
- 2 million rubles spent by home buyers from their own pockets;
- 3 million rubles to cover interest on a targeted loan taken from a credit institution for the purchase or construction of housing.
Receiving money is possible by submitting the appropriate application, declaration forms and related documents to the Russian Tax Service.
Professional - this type of tax deduction is provided to individual entrepreneurs, owners of legal offices and other domestic organizations, while it actually covers expenses that are documented by the company and are justified, that is, spent on the production and work process, and not on paying for the director’s vacation in the Canary Islands , For example.
A deduction provided for the transfer of losses received in the current period to subsequent periods - given to persons whose annual expenses exceed the revenue received.
Video – Income Tax Refund
Conditions and procedure for compensation
In order to return VAT, certain conditions must be met:
- Individual entrepreneurs or organizations must apply the general taxation system; if a different tax regime is applied, it is impossible to receive a refund;
- the amount of liabilities is less than the tax deduction;
- the right to compensation is documented. To do this, you need to contact the Federal Tax Service by submitting a tax return, a book, a book of purchases and sales, invoices, as well as customs declarations and other documents confirming the right to a refund.
My review of the VAT refund site
This is simply a cruel deception of gullible people. I don't have enough words to describe this deception. Every word on the “VAT refund” website is a lie. Bogus comments on YouTube, leftist comments on the website and everything like that.
I am especially surprised why YouTube is so reluctant to block such videos. Anything can be banned in the shortest possible time, but here they drag it out for weeks. Friends, if you see similar materials on YouTube, always send a complaint!
For a safer search, I advise you to use the following search engines: mail, Yandex.
