Is it possible to get VAT refund on fuel?
Yes of course. On the territory of the Russian Federation you can get tax credit for any type of fuel.
Who can get this tax credit?
Only organizations-taxpayers have the right to get VAT refund. Simply put, legal entities who use general taxation system (OCNO) can offset VAT.
Who cannot expect to get VAT credit?
Self-employed persons and all legal entities to whom general taxation system is not applied are upset about the inability to offset VAT. If a legal entity works with a simplified tax system, with a patent system, unfortunately, VAT on fuel cannot be refunded.
And if I use a simplified tax system, then the refund is absolutely impossible to get?
Yes, it is impossible, but you can try to reduce the income tax if the simplified tax system is applied with the «income minus expenses» regime. Fuel is a purchased product necessary for the functioning of a freight carrier. Without it, you cannot conduct your business. Therefore, you can deduct the cost of fuel in taxation and reduce the amount of income received, based on the amount of fuel costs.
What documents are required for VAT refund?
An invoice is required. It is the main document for the refund of value added tax.
I am a small but efficient cargo carrier – why can I not get the refund?
Unfortunately, not all fuel services or brands are interested in working with small carriers due to their small fleet, therefore the carriers have to buy fuel for cash while they are getting the service (i.e., payment are made by an individual — the driver), which means that the company will not receive an invoice, will not be able to recognize expenses for accounting and to get VAT refund on the fuel purchased in this way
How to save your accountant’s time and nerves?
Choose your fuel service carefully.
For example, in MONOPOLY.Fuel there are more than 80 fuel brands, but there is one reporting document that the carrier gets online in his personal account. This is a transactional report of all refuellings in this month. Even if the truck has refueled at 10 different fuel brands, at the end of the month you will still receive a single document.
Many accountants are confronting constant «begging» for documents. This takes a lot of effort, time and nerves. A convenient personal account and the limits in the MONOPOLY.Fuel service allow you to calculate in advance the possible monthly amount of costs and potential VAT refund.
Your accountant will receive closing documents in a convenient format in your personal account, without sweating while collecting a bunch of papers. Transactional report + invoice + invoice or transactional report + UTD (universal transfer document) are transmitted as soon as possible. You can easily meet the deadline for applying for VAT refund on fuel.
In general, a good accountant always sets up the process and ensures the result. The question is how much time and nerves it will take. Fuel services should ensure the comfortable work of the carrier not only at the time of receiving fuel, but also in obtaining closing documents. Document flow should not turn into a headache. Services like MONOPOLY.Fuel are designed to free the carrier from routine processes and make life much easier for your employees — we take care of all the collection of papers, and your accountant receives a ready-made document for the tax office!
You can leave a request for connection to MONOPOLY.Fuel on the service page on the website of the MONOPOLY Group of Companies.