Contents / Taxpayers

Taxpayers
Organisations
Individual entrepreneurs
Importers paying VAT to customs bodies
except for:
  • applying simplified system of taxation
  • transferred to the unified tax on imputed income

Tax relief under Article 145 of the Tax Code

Organisations and individual entrepreneurs may enjoy VAT relief if their sales (VAT and sales tax excluded) for the preceding three months do not exceed 1 mln. Rb., and if they did not sell excised goods during this period. The exemption does not cover import operations. Upon deciding to use the exemption, a taxpayer should notify the tax bodies thereof at the place of its tax registration.

See also:

Acquisition of the right to VAT exemption

Prolonging VAT exemption

“Input” VAT on purchased goods (works, services)

Losing the right to VAT exemption

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Exemption from paying VAT
A notification should be submitted not later than 20 th of the month starting from which a taxpayer intends to get the exemption. The following documents should be attached to the notification:
  • excerpts from the balance sheet (for individual entrepreneurs —excerpts from the ledger of income and expenses and business operations)
  • excerpts from the sales ledger
  • copies of issued and received VAT-invoices
After notifying the tax bodies on relief, organisations and individual entrepreneurs may not withdraw from it for 12 months.
Prolonging VAT exemption
Upon expiration of the 12 months, a person enjoying VAT exemption should submit the following documents to the tax bodies (not later than 20 th of the next month):
  • a written notification of prolonging VAT exemption  or a refusal to use this right in the future
  • documents certifying that during the term of VAT exemption all the necessary requirements were observed (same documents as for acquisition of the right to tax relief — excerpts from the balance sheet, sales ledger, the ledger of issued and received VAT-invoices).
“Input” VAT  on purchased goods (works, services)
If goods were received before the right to VAT exemption emerged, but were not used in taxable operations or resale, then the deducted VAT should be restored by decreasing the amount of tax deductions in the last tax period before the notification was submitted to the tax bodies. If the goods were obtained before the right to VAT exemption was lost and were used after this right was lost, the amount of VAT paid to suppliers (“Input” VAT) may be recovered.
Losing the right to VAT exemption

A taxpayer that no longer meets the relief requirements (sales volume exceeds 1 mln.Rb., the taxpayer sells excised goods), loses its right to the relief starting from the first day of the month when the requirements were infringed.