Forwarding company. VAT refund

Forwarding company.  VAT refund   

 

 

Question 1:

Hello, this is a refund of VAT to a forwarding company. The company is engaged in shipping without being a carrier. I came to two accountants, with each accountant giving me different answers. Let me say, this month I have resubmitted for 4-5 hours at 900 euros, for example, and I have paid VAT 5 at 180 euros = 900 euros, for the next month will they refund me or not? How much is the time for return? In one consultation, I was told that there was a way to avoid paying VAT at all, because the forwarding company was de facto only an intermediary.
I will be very glad if you answer me. Thanks in advance!

 

Answer 1:

 

Hello,

From the factual situation so described, you describe a situation where you only pay a certain VAT on the sold rates. Given that you are a VAT registered person who purchases the factual service from another person registered under VATA, you are entitled to a tax credit on the purchased courses. Our clients / shipping companies like you are either on a monthly basis (if they are only engaged in domestic transport services) or on a refund every three or three months (if they provide services related to international transport).

VAT refunds are available when the VAT you pay is more than the VAT you pay for the services you provide. If the taxable turnover of the services performed over the last 12 months to EU customers exceeds 30% of the total taxable turnover, the refundable tax credit will be refunded (after verification) within 30 days of submitting a tax return for the relevant period.

If you do not meet this condition, then during the next two periods you can offset this tax credit from an obligation to pay VAT on monthly statements. If you still have a tax credit for a refund and then, within 30 days of submitting the statement for the third subsequent tax period (month), you will be refunded this tax credit.
We hope we've been useful to you!

Greetings.

 

 

Question 2:

 

So, you were very exhaustive, for which we are endlessly grateful, we would only like to clarify something with a concrete example:

I get 5 orders for the current month from a VAT registered customer in the European Union. Each charge of € 1,000.

Accordingly, I assign the execution of each BG agent charge by writing queries worth 900 euro each.

I receive 5 x 1000 euro net worth of charging VAT in EU member states (Article 21)

And I pay 5 x 900 + VAT to BG carriers. It is clear from the bill that the remaining 100 euros do not cover

the invoices paid to the carriers for EUR 900 + VAT and we get personal money. The operation is repeated second, third, fourth.

I am paying VAT, but I get paid without VAT, so I have overcome and should I recover if I understand correctly?

If so, I am interested in how long I will recover overpaid VAT. Let's say that 12 months for 5 euros for 1000 euros, sold at 900 euros + VAT

"If the taxable turnover of the services performed over the last 12 months to EU customers exceeds 30% of the total taxable turnover, the refundable tax credit will be refunded to you (after verification) within 30 days of submitting a tax return for the relevant period . " - I did not understand that paragraph.

 

Answer 2:

 

Hello,

We assume that within 1 month (for example, September), you have 5 EU transit services to countries in the EU. Your forwarding company issues 5 Euro 1000 invoices to these EU customers and does not charge VAT (Article 21 of the VAT Act). For these services, you declare invoices issued and fill in and file a VIES statement.

Meanwhile, the services for the 5-day transport are carried out by Bulgarian companies, which issue 5 invoices for you 900 euro + 20% VAT (total VAT for these deals is 900 euro). Your forwarding company pays the Bulgarian hauliers these transport services + 900 Euro VAT (for which they are entitled to a tax credit) and describes these invoices in the purchase logs.
If the taxable turnover of the services performed by your forwarding company over the last 12 months (from September 2015 to August 2016) to customers in the European Union exceeds 30% of the total taxable turnover, then in the monthly VAT return statement (September 2016) (October) You have the right to specify in box 81 a declaration the amount of 900 Euro (of course the lev equivalence) which according to Art. 92, paragraph 3, NRA (after verification) under the 30 days from filing the declaration must refund you. (if you submitted the VAT return for September with a refund request on 6 October 2016, then by 6 November 2016 the check must be made and refunded to you)

If the aforementioned taxable turnover does not exceed 30%, then your company starts a two-month period in which you have the right to deduct from a VAT liability for depositing amounts of these € 900 (by completing the deduction amounts in Monthly VAT returns for the following two periods (October and November) If you do not have VAT for deduction during this two month period, or the VAT for deduction is less than your € 900 tax credit, then in the VAT declaration for December, 81 state the unused tax credit (if we multiply the same data from September and in the other two months it means another EUR 2,900), then in the 88th VAT declaration for November we will enter the amount of 2700 EUR ( 3 months at 900 euros) that the NRA should refund to you within 30 days of filing this statement.

We hope the example has clarified your understanding of the VAT refund periods.

If you have additional questions or questions, it is best to discuss them at a meeting in one of our three accounting offices - Sofia, Bourgas, Ruse or Plovdiv

Greetings.