How to refund the Value Added Tax?

Taken from the Law on VAT

From the implementation of the Value Added Tax until today the civil and other international organizations are taking activities to refund VAT. What is the legal frame and how is it regulated? As an answer to this question we transfer part of the Law on VAT.

“When the amount of the previous tax in a given tax period is higher than the tax amount that is assessed for the turnover, the difference is given back to the taxpayer upon his request that is stated in the tax application. If the taxpayer doesn’t state that kind of request, the difference is transferred as a tax advance payment for the succeeding tax period.

The difference in the tax from article 1 of this act is refunded in the period of 30 days after the day of submitting the tax application.

If the supervising tax organ is unable to control the tax application on the basis of the taxpayer’s fault, the period from article 2 of this act is calculated even after there are conditions for implementing the control.

The unpaid taxes (Value Added Tax and other taxes) of the taxpayer, as well as the penalty interests for them, are deducted upon request for payment according to article 1 of this act.

When the Value Added Tax during import is calculated and paid for goods that are exempt from tax, or when a bigger tax is paid on the amount that is owed according to this law, the paid tax is refunded to the person who doesn’t have any or only part right to refuse the previous tax, in the period from article 2 of this act.

If there isn’t a tax refund in the period from the articles 2 or 3 from this act, the taxpayer will be paid an interest from 0,05% for every day delay.

Tax refund to taxpayers that don’t have a headquarters or a branch office in Macedonia

As an exception to the provisions of articles from 39 to 45 of this law and in the case of reciprocity, the taxpayers that don’t have a headquarters or a branch office in the country and that don’t have any turnover in it, or that don’t owe tax will be paid for the turnover, upon their request, the previous tax that can be taken out according to articles from 33 to 36 of this law, according to special procedure signed by the minister of finance.

Tax refund for non-for-profit organizations

The non-for-profit organizations will be approved, upon their request, tax refund for turnover of goods and for the import realized according to them in the following conditions:

-  The turnover or the import shouldn’t be exempt from tax;
-  The Value Added Tax for the done turnover of goods must be specially stated in the invoice according to article 53 of this law and to be paid with paying the purchase and sale price;
-  The tax owed for the import must be paid; and
-  The goods must be transferred abroad and there to be used for humanitarian, charitable or educational aims.

The minister of finance is empowered to deal with the payment procedure and to present the conditions for proving the payment right.

Tax refund for foreign diplomatic or consular representatives

If the foreign diplomatic or consular representative purchases goods or services for official purposes, upon request of the representative there will be a refund of the Value Added Tax, if the invoice is paid and if in it separately is stated the Value Added Tax by the taxpayer according to article 53 of this law. The refund is done on the basis of special agreements conducted with the state sender, according to the conditions of reciprocity. The refund will be refused if the amount of the invoice doesn't exceed 5,000 denars, including the Value Added Tax.

According to article 1 of this act, the refund of the Value Added Tax is approved also to the chief of the diplomatic representative, to the members of the diplomatic staff of the foreign diplomatic representative, as well as to the consular officials, if the stated people purchased goods or services for personal purposes or for the purposes of the members of the families that make their households. In that case, the refund is limited to the total amount of 50,000 denars for the proper calendar year.

The minister of finance is empowered to regulate the details with the refund procedure.

Tax refund to international organizations

The Value Added Tax will be refunded, upon their request, to the international organization and their members for the turnover of goods or services done for them, according to the conditions and restrictions stated with international provisions.

The details with regard to the procedure of refund are regulated by the minister of finance.