Rules for the refund of excess value added tax
Chapter 1. General provisions
1. These Rules for the Refund of excess value added tax (hereinafter referred to as the Rules) have been developed in accordance with paragraph 10 of Article 429 of the Code of the Republic of Kazakhstan dated December 25, 2017 "On Taxes and Other Mandatory Payments to the Budget" (Tax Code) (hereinafter referred to as the Tax Code) and subparagraph 1) of Article 10 of the Law of the Republic of Kazakhstan dated April 15, 2013 "On Public Services" (hereinafter – the Law) and establish the procedure for the refund of excess amounts of value added tax (hereinafter – VAT).
2. The state service "Refund of value added tax from the budget" is provided by the territorial state revenue bodies of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan by districts, cities and districts in cities, on the territory of special economic zones (hereinafter referred to as the service provider) through the web portal "electronic government": www.egov .kz in the Taxpayer's Office (hereinafter referred to as the portal).
3. In accordance with subparagraph 11) of paragraph 2 of Article 5 of the Law, the service provider ensures that data is entered into the information system for monitoring the provision of public services on the stage of provision of public services in accordance with the procedure established by the authorized body in the field of informatization.
4. The Service Provider ensures the smooth functioning of information systems containing the necessary information for the provision of public services. In the event of a failure in the information systems used in the provision of public services, the service provider ensures the elimination of technical problems and notifies the relevant authorized persons within 1 (one) business day.
Chapter 2. The procedure for the provision of public services
"Refund of value added tax from the budget"
5. In order to receive a state service, the taxpayer (hereinafter referred to as the service recipient) submits a claim for the refund of the amount of excess VAT specified in the VAT declaration for the tax period (hereinafter referred to as the claim) to the service provider or through the portal. In this case, the requirement to refund the amount of excess VAT is reflected in the initial, regular and (or) liquidation VAT declarations.
If the VAT payer has not indicated in the VAT declaration for the tax period the requirement to refund the excess of VAT, then this excess is credited to the upcoming VAT payments or is presented for refund within the limitation period established by Article 48 of the Tax Code.
The list of basic requirements for the provision of public services, including the characteristics of the process, form, content and result of the provision, as well as other information, taking into account the specifics of the provision of public services, are set out in the form of the standard of public services "Refund of value added tax from the budget" according to Annex 1 to these Rules.
The refund of excess VAT is made on the basis of:
1) an act of thematic verification confirming the reliability of the amount of excess VAT submitted for refund, taking into account the results of its appeal (in case of appeal by the taxpayer);
2) conclusions to the report of the thematic audit in the cases provided for in paragraph 13 of Article 152 of the Tax Code.
The provisions of sub-paragraphs 1) and 2) of this paragraph do not apply to the refund of excess VAT amounts in accordance with Articles 433 and 434 of the Tax Code.
6. After receiving the claim, the State revenue body, unless otherwise established by this paragraph, appoints a thematic audit to confirm the authenticity of the excess of VAT submitted for refund from the budget (hereinafter referred to as a thematic audit), after the expiration of the last date of the period established by subparagraph 2) paragraph 3 of Article 212 of the Tax Code.
At the same time, a thematic audit is appointed for the tax period in accordance with paragraph 2 of Article 152 of the Tax Code.
The provisions of this paragraph shall not apply to the service recipient when considering his claim for the refund of excess VAT in accordance with Articles 433 and 434 of the Tax Code.
If it is established that there is no excess amount of VAT on the personal account of the service recipient and (or) the procedure and deadlines for submitting VAT tax reports established by Articles 208, 209, 210 and 424 of the Tax Code are violated, the service provider within 10 (ten) working days from the date of submission of the VAT declaration notifies the service recipient of the refusal to consider requirements.
7. When conducting a thematic audit to confirm the reliability of the amounts of excess VAT submitted for refund, as well as the reliability of the amounts of VAT returned from the budget to the service recipient, in respect of which a simplified refund procedure has been applied, the state revenue authority forms an analytical report "Pyramid" on suppliers for the inspected service recipient using the information system for the tax period under review (hereinafter referred to as – Pyramid report).
The Pyramid report is the results of the control carried out by the state revenue authorities, based on the study and analysis of the VAT tax reports submitted by the service recipient and (or) information systems information established by paragraph 11 of Article 152 of the Tax Code.
The Pyramid report is generated by the direct suppliers of the service recipient being checked.
8. In order to comply with the deadlines for VAT refund from the budget, the state revenue body, within 5 (five) working days from the date of the start of the thematic audit, determines the list of direct suppliers in respect of which it is necessary:
to send the notification provided for in subparagraph 10) of paragraph 2 of Article 114 of the Tax Code (hereinafter referred to as the notification) to eliminate violations identified by the results of the analysis of the Pyramid report;
and (or)
appoint counter-inspections in accordance with the procedure established by Article 143 of the Tax Code.
9. If the supplier of goods, works, services of the inspected service recipient is registered at the location of another state revenue body, the state revenue body that appointed the thematic audit sends a corresponding request for a counter audit and (or) a request for measures in accordance with the provisions of the Tax Code to eliminate violations identified by the results of the analysis the Pyramid report, within 15 (fifteen) business days from the start date of the thematic audit.
10. The State revenue authority, which has received a request for measures, issues a notification to the direct supplier within 5 (five) working days from the date of receipt of such a request.
At the same time, a response to a request for the elimination of violations to the state revenue authority from which such a request was received is sent within 5 (five) working days from the date of execution by the service recipient of the notification in accordance with paragraph 2 of Article 96 of the Tax Code or in case of elimination of violations by him based on the results of a previously conducted tax audit.
11. The state revenue authority, which has received a request for a counter-audit, conducts such an audit within no more than 10 (ten) working days from the date of receipt of the request.
12. If, at the time of the thematic audit, the direct supplier has ceased operations in connection with liquidation and a liquidation tax audit has been carried out in respect of such a supplier, the amount of VAT indicated in the invoice issued by such supplier is taken into account according to the information available in the information systems of state revenue bodies, including the register of accounts -invoices for goods sold, works performed and services rendered and (or) electronic invoices issued.
13. Confirmation of the reliability of VAT amounts on transactions between the inspected service recipient and its direct supplier-the taxpayer subject to tax monitoring is carried out by the state revenue body that appointed the thematic audit, based on tax reporting data and (or) the electronic invoice information system available in the state revenue bodies.
14. VAT excess is not refunded within the limits of the amounts for which, on the date of completion of the thematic audit, according to paragraph 12 of Article 152 of the Tax Code:
1) no responses have been received to requests for counter-checks to confirm the reliability of settlements with the direct supplier;
2) violations have been identified for the suppliers of the inspected service recipient based on the results of the analysis of the Pyramid report;
3) the accuracy of VAT amounts has not been confirmed;
4) the reliability of the VAT amounts has not been confirmed, due to the impossibility of conducting a counter check, including for the reason:
absence of the supplier at the location;
loss of the supplier's accounting documentation.
The provisions of subparagraph 2) of part one of this paragraph shall not apply in case of elimination of violations identified by the results of the Pyramid report by the direct suppliers of the inspected service recipient:
those who have the right to apply a simplified procedure for the refund of excess VAT;
implementing an investment project within the framework of the republican industrialization map approved by the Government of the Republic of Kazakhstan, the cost of which is at least 150,000,000 times the monthly calculation index established by the law on the republican budget and effective as of January 1 of the corresponding financial year;
operating under a subsurface use contract concluded in accordance with the legislation of the Republic of Kazakhstan and having an average tax burden coefficient of at least 20 percent calculated for the last 5 (five) years preceding the tax period in which a claim for the refund of excess VAT was made;