This service shall be provided in two ways:

1. Refusal of VAT refund risks mitigation (for the purpose of the positive customs authority decision to reimburse VAT (refund VAT)).
2. Judicial VAT refund (including support in receipt of VAT refund delay interest).

These services are mostly in demand among exporters as, firstly, they need to confirm 0% rate (to avoid 18% of the arrears of taxes is imposed by customs authorities), secondly, subject to compliance with other specified conditions, they receive VAT refund to their current account with no tax applicable to that amount.

It should be noted that in some cases the estimated period of time from any legal action is taken till the funds are credited to a current account may be 2.5-3.5 months.

To clear up the subject matter of the first abovementioned way of the service is to be delivered (Refusal of VAT refund risks mitigation) it should be noted that this way of service provision shall include:

• Implementation of a unified taxpayer’s operation scheme and position to ensure refusal of refund risks elimination and/or mitigation, including:
  • Determination of the taxpayer’s optimal operation scheme given such aspects as transportation, storage of goods, etc.;
  • Determination of optimal contract terms and conditions, including optimal supply conditions according to "INCOTERMS";
  • Draft contract and other necessary documents preparation;
  • Determination of the period for claiming refund, etc.;
• Ensuring a satisfactory form (filling) of primary accounting documents and their verification (to comply with the requirements for refund to be recognized as legitimate);
• Ensuring submission to tax authorities of only required documents requested;
• Tax statement review (in terms of opportunity to settle a case by arbitration and subject to the court requirements to tax statements).

The main point of these services is to prepare documents for a case to be successfully resolved in court proceedings in case of unreasonable refusal to pay refund and/or reimburse VAT.

Based on our successful experience in providing VAT refund we may say that the first type of services in many cases assist in making by tax authorities of "goodwill" and "timely" decisions in respect of VAT refund.

Within the frame of the VAT refund services we also provide receipt of VAT refund delay interest accrued and payable to the taxpayer’s bank account (in particular, relating to annulment of a decision to refuse to refund VAT).