Tashkent, Uzbekistan (UzDaily.com) -- Everyone is used to the rule: the taxpayer pays taxes to the state budget. But it also happens the other way around, when the state transfers to the taxpayer’s current account the funds that a business entity can spend on its own needs. This concerns the refund of value added tax, the press service of the State Tax Committee reports.

Since the beginning of the year, the state has paid to business entities 5 trillion 337 billion soums.

The mechanism for paying VAT to the budget is as follows: if the amount of tax calculated from the sale is more than received from suppliers, then the difference must be paid to the budget. Accordingly, if the accrued tax is less than the “incoming” tax, then the taxpayer has the right to return the difference from the budget.

How to do it?

First, you have to follow the rules.

They are established by the Resolution of the Cabinet of Ministers from 14 August 2020 under No. 489 “On measures to improve tax administration related to foreign legal entities and value added tax”. So, in order to reimburse (return) the excess amount of VAT, you should contact the state tax departments at the place of registration, large taxpayers send an application to the Interregional State Tax Inspectorate for Large Taxpayers.

Second, it’s important to stick to deadlines.

- applications from large taxpayers, diplomatic missions, persons holding a bank guarantee, participants in production sharing agreements ("zero rate") and participants in tax monitoring are considered expeditiously (no later than 7 days).

- in the general procedure (no later than 60 days) documents of the remaining value added tax payers are considered.

Thirdly, documents can be returned to applicants if discrepancies are found in the submitted reports. At the same time, business entities have the right to correct mistakes and apply for a refund (refund) of VAT again.

As of 1 January 2020 to 26 October 2020, over 5 trillion soums were paid to business entities from the state budget. The Ministry of Finance satisfied 3,705 applications. By regions:

- Khorezm region - 983 (over 120 billion soums);

- Tashkent city - 724 (more than 900 billion soums);

- Andijan region - 249 (over 170 billion soums);

- Namangan region - 216 (over 200 billion soums);

- Tashkent region - 209 (worth more than 250 billion soums).

The excess amount of VAT that is returned to entrepreneurs is spent on any production and management needs at the request of the business entity.