Contents / Input VAT recovery

Input VAT recovery

Tax due
VAT charged on sales and other taxable items
Input VAT on supplies (tax deduction)
  • The taxpayer has the right to reduce its aggregate tax due by tax deductions
  • The following amounts of VAT may be deducted:
    • VAT paid by a taxpayer for goods (work, services) purchased in the RF
    • VAT paid by a taxpayer for goods imported under customs regimes of release for free circulation, temporary import and processing beyond customs territory
    • VAT withheld and paid to budget by tax agents

See also: Input VAT recovery requirements

In what cases is not input VAT subject to recovery?

If the amount of tax deductions over any tax period exceeds the total amount of tax, the positive difference between the amount of tax deductions and the sum of tax computed shall be subject to reimbursement to taxpayers, except for the cases when taxpayers submit tax declarations on the expiry of three years after the end of an appropriate tax period.

Input VAT recovery requirements
  • The goods have been paid for (VAT on imported goods paid at the customs is deducted in full, regardless whether or not the goods have been paid for)
  • The goods are used for operations subject to VAT:
    • for sale (or other taxable transfer) of goods subject to VAT (except for purchased goods for which VAT is included into expenses)
    • for re-sale
  • the respective supplies have been entered into books
  • the taxpayer has the VAT-invoice on supplies with a separately itemised amount of VAT
Deduction of VAT amounts

In individual cases input VAT may not be recovered and is included into the cost of the purchased goods (including fixed and intangible assets), works and services:

VAT amount is capitalised:

  • if goods (works, services) are acquired or imported by non-taxpayers or taxpayers enjoying VAT relief
  • if goods are acquired or imported for:
    • manufacturing or/and sale of goods (work, services) exempt from VAT
    • self-supply of goods (work, services) for organisation's internal purposes when such an operation is exempt from VAT
    • manufacturing and sale of goods (work, services) sold outside the RF
    • transfer of goods (work, services) not recognised as sale and therefore exempt from VAT