VAT Refunds for Exporters: Procedure, Deadlines and Documents

When an exporter has VAT to recover

VAT payable is calculated for each month: output VAT less input VAT accepted for offset. If the result is negative, the taxpayer is entitled to a refund (Art. 272). By default, the amount is offset against future VAT payments; to receive the money, a refund must be claimed when filing the tax return (Art. 274).

Example (illustrative figures): in a month, domestic sales are UZS 500,000,000 excluding VAT, with VAT at 12% of UZS 60,000,000; exports are UZS 2,000,000,000 at 0%; recoverable input VAT is UZS 210,000,000. Result: 60,000,000 − 210,000,000 = −UZS 150,000,000. This amount can be left to offset future payments or claimed as a refund.

Step-by-step refund procedure

The application is reviewed by the tax office where the company is registered, or, for large taxpayers, by the Interregional Tax Inspectorate for Large Taxpayers. The procedure is as follows:

• 1. In the tax return, indicate that the amount is claimed for refund, and submit an application in the form of Appendix No. 2 to the Regulation through the taxpayer's personal account
• 2. Attach information on exports and foreign partners (Appendix No. 6) and the calculation of the refund amount (Appendix No. 7); if shipment and payment are in different currencies — conversion into UZS at the Central Bank rate on the date of shipment (Appendix No. 7a)
• 3. An application without the mandatory attachments is returned by the tax authority within 5 days without review — it can be resubmitted after being completed
• 4. The desk audit begins the day after the application is submitted, is carried out without an order and is completed within up to 30 days
• 5. The decision to refund (in full or in part) or to refuse is made no later than 30 days from the date of the application and is sent to the personal account within 1 day
• 6. Within 1 day, the refund is applied to settle debts for other taxes; then, within 1 day, the conclusion on refunding the balance is sent to the Treasury Service Committee, which within 1 day transfers the money to the account within the limits of State Budget funds

VAT refund deadlines

• General procedure — no later than 30 days from the date of notification of the refund (Art. 274 of the Tax Code, para. 7 of the Regulation)
• Accelerated procedure — the full amount claimed within 7 days (Art. 274 of the Tax Code, para. 33 of the Regulation)
• Businesses with an "AAA" sustainability rating, except state enterprises and companies with a state share of 50% or more — within 1 day and without a desk audit of whether the amount is justified
• Agricultural producers (except cotton and grain) — automatically within 3 days
• Desk audit for a refund — up to 30 days from the date of notification (Art. 138 of the Tax Code)

Accelerated refund: who is eligible

The accelerated procedure applies if it is requested in the application. The main categories for businesses (Art. 274 of the Tax Code, para. 32 of the Regulation; special deadlines for "AAA" companies and agricultural producers are in the section above):

• exporters — for the portion of the amount arising from the zero rate, if they have previously received VAT refunds and no violations were found
• large taxpayers
• companies that have provided a valid bank guarantee or concluded a pledge agreement with the tax authority
• participants in tax monitoring
• companies that have moved from small to medium or large business, or from medium to large — within a year after the transition and only once
• disciplined taxpayers under the Tax Committee's criteria (para. 32¹ of the Regulation)

When the accelerated procedure does not apply and what the risks are

The accelerated refund does not apply if not all documents are attached to the application, if on the filing date the taxpayer is classified as high risk of non-payment of taxes, or, for the unjustified portion of the amount, if circumstances listed in subparagraphs 5–13 of para. 25 of the Regulation are identified: abuse of rights, sham transactions, failure to provide documents, failure by suppliers in the chain to charge VAT, and others. A refund without audits does not apply to companies whose founder or director has committed a tax evasion offence with an unexpunged conviction, or to companies that such persons have set up or reorganised within the last 12 months.

A desk audit of whether the amount is justified is still carried out in the general procedure for an accelerated refund. If the amount proves unjustified, it must be returned to the budget with late-payment interest from the date of the refund to the date of payment (Art. 274 of the Tax Code, para. 34 of the Regulation).

Exporter's documents

The main confirmation of export is customs data on the border crossing transmitted to the tax authorities in real time; in this case, supporting documents are not submitted to the tax authority (para. 14 of the Regulation). The application is accompanied by information on the export of goods and foreign partners (Appendix No. 6), a commission (agency) agreement when exporting through an intermediary, and, for international transport services, a register of single international transport documents.

If export data is not available in the Unified Electronic Information System for Foreign Trade Operations and in the information exchange system between the tax and customs authorities, the following are additionally required: the contract, the cargo customs declaration, shipping documents bearing a customs stamp at the checkpoint, a bank statement confirming receipt of foreign currency and other documents depending on the type of activity.

Why refunds are refused

Paragraph 25 of the Regulation lists the grounds for a full or partial refusal. The key ones are:

• no documents confirming the right to offset VAT
• invoices for purchases or sales were not issued through the electronic invoicing information system
• transactions are sham or simulated, an unjustified tax benefit was obtained, or due diligence was not exercised in selecting a counterparty
• requested documents were not provided or forged documents were provided, or inspectors were not allowed to inspect the premises and warehouses
• counterparties in the supply chain did not charge VAT (or charged it only in part) or cannot confirm the lawful origin of the goods
• participants in the supply chain are related parties, and this led to an unjustified tax benefit

If the refund is refused in full or in part

• The decision states the grounds for refusal, the obligation to adjust the tax return by the refused amount and the right to appeal (para. 24 of the Regulation)
• For the amount not recognised as justified in a partial refund, a desk audit is carried out in the general procedure under Art. 138 of the Tax Code (para. 27)
• You can reapply with supporting documents; on re-examination, a refusal may not be based on new grounds that were not in the first decision (para. 28)

What speeds up a refund

• all sales and purchases are documented with electronic invoices, and suppliers are VAT payers with confirmed turnover
• export data is available in the customs–tax data exchange system — no paper confirmation will be needed
• proceeds under export contracts arrive on time and in full — this determines the share of VAT that can be offset
• no debts for other taxes — otherwise the refund will first go towards paying them off
• previous refunds went through without violations — this opens the accelerated procedure to the exporter