The taxpayer has a right to return funds and penalties paid by mistake and / or excessively according to Paragraph 43.1 Article 43 of the Tax Code of Ukraine as of 02.12.2010 №. 2755-VІ with changes and amendments (hereinafter referred to as the TCU).
Terms for return of funds and penalties paid by mistake and / or excessively:
-- Absence of the tax debt (Paragraph 43.1, Article. 43 of the TCU).
If taxpayer has the tax debt – the return of funds and penalties paid by mistake and / or excessively is carried out only after full repayment of such tax debt by the taxpayer. Herewith, the taxpayer has a right to use the specified amount of the overpayment by submitting the relevant transfer request for repayment of such tax debt.
-- Submission of application for the return by the taxpayer (except for the return of excessively withholding (paid) amounts of the personal income tax, calculated by the controlling authority on the basis of the taxpayer’s tax declaration for the reporting calendar year by recalculating the taxpayer’s total annual taxable income) (Paragraph 43.3 Article 43 of the TCU)
Application is submitted in any form to the territorial body of the STS at the place of administration (accounting) of the amount of funds paid by mistake and / or excessively within 1095 days from the date of its occurrence, in which it is necessary to indicate the direction of funds transfer:
- to the current taxpayer’s account at the bank institution;
- to repayment of the monetary obligation and / or tax debt from other payments, the control of which is entrusted to the controlling bodies, regardless of the type of budget;
- return of funds in cash by the check in the case of absence of the taxpayer’s bank account (Paragraph 43.4 Article 43 of the TCU).
Return of the value added tax
In the case of return of the overpaid value added tax liabilities, credited to the budget from the taxpayer's account in System of electronic administration of the value added tax in order stipulated by Paragraph 200 of the TCU - such funds can be returned only to the taxpayer’s account in SEA VAT. If it is not available at the time of the taxpayer’s request for the return of the overpaid VAT or at the time of the actual return is carried out by transferring of fund to the current taxpayer’s account at the bank institution (Paragraph 43.4 note 1 Article 43 of the TCU).
Return of the single social contribution to the compulsory state social insurance
In case of overpaid amount of the single social contribution to account 3719, the tax authorities credit these funds to the account of future payments to the same account according to the established amount of the single social contribution and in the order in which the taxpayer’s obligations for this payment arise (according to the Order of crediting of the single contribution to compulsory state social insurance for future payments or return of the overpaid funds approved by the Order of the MFU as of 16.01.2016 №. 6 (hereinafter - Procedure №. 6))
Return of funds is carried out in the following cases:
1) excessive or erroneous payment of the single social contribution and / or applied financial penalties to the relevant account 3719;
Application for the return should be submitted to the tax authority to which these funds were paid, in the form specified in Annex 1 to Procedure №. 6.
2) erroneous payment of the single social contribution and / or applied financial penalties to non-compliant account 3719;
Application for the return should be submitted to the tax authority to which these funds were paid, in the form specified in Annex 1 to Procedure №.6.
3) excessive or erroneous payment of the single social contribution and / or applied financial penalties to the account of budget revenues;
Application for the return should be submitted to the tax authority at the place of accounting of erroneously paid funds in an arbitrary form, indicating the amount and direction of the return.
Funds are subject to return according to the provisions of Article 43 of the TCU and Paragraph 12 Article 9 of the Law of Ukraine “On the collection and accounting of the single social contribution to the compulsory state social insurance”.
4) erroneous payment of taxes, fees, penalties (fines) and penalties prescribed by the Tax Code to the account 3719.
Application for the return should be submitted to the tax authority to which these funds were paid, in the form specified in Annex 1 to Procedure №. 6.
Funds are subject to return according to the provisions of Article 43 of the TCU and Paragraph 12 Article 9 of the Law of Ukraine “On the collection and accounting of the single social contribution to the compulsory state social insurance”.
In case of receipt of application for the return of funds overpaid by the insurers who voluntarily participate in the compulsory state social insurance system, the taxpayer should add the original or a certified copy of the payment document (receipt, payment order, etc.) confirming the payment to the account 3719.
In case of receipt of application for the return of funds from the account 3719, the subdivision of the tax authority entrusted with the administration of a single social contribution carries out the verification of information provided by the taxpayer within a period not more than ten working days from the date of registration of the application.
Application remains unsatisfied in the following cases:
- the inconsistency of application with the form specified in Annex 1 to Procedure №. 6 (Application form);
- the falsity of information provided by the taxpayer in application;
- submission of application not at the place of accounting amounts of the single social contribution paid by mistake and / or excessively;
- the existence of the single social contribution arrears and / or financial penalties.
In case of refusal to satisfy application for the return of funds from account 3719 to the taxpayer of single social contribution, the subdivision of the tax authority entrusted with the administration of a single social contribution should send a notification signed by the official, stating the reasons for the refusal.
It should be reminded that from 24.09.2019 Order of the Ministry of Finance of Ukraine dated 11.02.2019 №. 60 “On approval of procedure for information cooperation of the State Fiscal Service of Ukraine, its territorial bodies, the State Treasury Service of Ukraine, its territorial bodies, local financial authorities for the return of funds and penalties paid by mistake and / or excessively” became valid on 26.04.2019 which introduces a Unified automated system for the return of funds that belong to:
- the state budget - from August 01, 2019;
- the local budgets and payments that are shared between the state and local budgets - from November 01, 2019.
Application can be submitted by the taxpayer to the territorial body of the STS in electronic form by means of information and telecommunication systems and in compliance with the requirements of the legislation in the spheres of information protection, electronic confidential services and electronic document circulation.
As follows, from August 01, 2019, the taxpayers can submit applications (in any form) to return funds paid by mistake and / or excessively on payments that belong to the state budget electronically through the private part of the “Electronic Cabinet” selecting “Correspondence with the SFS” from the menu.
However, the effect of Order №. 60 is not applied to:
- the VAT refunds;
- the return of advanced payments (prepayments), erroneous and / or excess payments made by the taxpayers at will, as a preliminary monetary security for payment of future customs and other payments that are paid before / or during the customs clearance and monetary collateral;
- the return of customs and other payments that are paid before / or during the customs clearance;
- the return of erroneous and / or excess payments calculated (paid) by the taxpayers of the funds paid by means of a tax bill during the customs clearance;
- return of amount of the excise tax contributed to the repayment of tax bills;
- enforcement of the court decisions regarding the unqualified write-off of funds, erroneously or excessively credited to the budget.