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In which cases is VAT reimbursement not possible?
In which cases is VAT reimbursement not possible?
We inform you that, based on the amendments to the Tax Code as of January 1, 2024, expenses related to representation costs, housing and meal costs for employees, as well as expenses for providing medical-prophylactic meals, milk, and other products and items equivalent to milk for employees working in harmful, heavy working conditions, or underground jobs, are to be deducted from income in accordance with the norms and procedures established by the Cabinet of Ministers.
With the Cabinet of Ministers' Decree No. 492, dated November 22, 2024, the "Regulations and Procedure for Deducting Representation Costs, Housing and Meal Costs for Employees, and Costs for Providing Medical-Prophylactic Meals, Milk, and Other Equivalent Products and Items for Employees Working in Harmful, Heavy, and Underground Working Conditions for Tax Purposes" was approved.
Considering that the amendments to the Tax Code came into force on January 1, 2024, expenses for representation, housing and meal costs for employees, as well as expenses related to medical-prophylactic meals, milk, and equivalent products and items for employees working in harmful, heavy, and underground working conditions, which were incurred from January 1, 2024, will be considered deductible from income in accordance with the procedure established by the Decree.
According to the rule, the daily norm for meal expenses per employee to be deducted from income is set at 5 (five) manats if the meal cost is paid directly to the employee, or if the catering service is provided by the employer or another taxpayer engaged in public catering activities – 5 (five) manats. In addition, if the meal expenses are paid to the employee directly in a non-cash manner, these expenses will be considered deductible from income.
According to Article 175.1 of the Tax Code, unless other cases are provided in this article, the VAT paid on the purchase of goods (works, services) for VAT-taxable transactions can be refunded when the value of the transaction is paid from the buyer's bank and other payment accounts to the bank and other payment accounts of the person providing the goods (works, services), provided that the VAT amount is paid into the VAT deposit account.
We would like to bring to your attention that, according to Article 175.3 of the Tax Code, except for the expenses specified in Articles 109.4 and 119.2 of this Code, when the expenses referred to in Article 109.3 of this Code are incurred, VAT reimbursement is not allowed.
We inform you that, based on the amendments to the Tax Code as of January 1, 2024, expenses related to representation costs, housing and meal costs for employees, as well as expenses for providing medical-prophylactic meals, milk, and other products and items equivalent to milk for employees working in harmful, heavy working conditions, or underground jobs, are to be deducted from income in accordance with the norms and procedures established by the Cabinet of Ministers.
With the Cabinet of Ministers' Decree No. 492, dated November 22, 2024, the "Regulations and Procedure for Deducting Representation Costs, Housing and Meal Costs for Employees, and Costs for Providing Medical-Prophylactic Meals, Milk, and Other Equivalent Products and Items for Employees Working in Harmful, Heavy, and Underground Working Conditions for Tax Purposes" was approved.
Considering that the amendments to the Tax Code came into force on January 1, 2024, expenses for representation, housing and meal costs for employees, as well as expenses related to medical-prophylactic meals, milk, and equivalent products and items for employees working in harmful, heavy, and underground working conditions, which were incurred from January 1, 2024, will be considered deductible from income in accordance with the procedure established by the Decree.
According to the rule, the daily norm for meal expenses per employee to be deducted from income is set at 5 (five) manats if the meal cost is paid directly to the employee, or if the catering service is provided by the employer or another taxpayer engaged in public catering activities – 5 (five) manats. In addition, if the meal expenses are paid to the employee directly in a non-cash manner, these expenses will be considered deductible from income.
According to Article 175.1 of the Tax Code, unless other cases are provided in this article, the VAT paid on the purchase of goods (works, services) for VAT-taxable transactions can be refunded when the value of the transaction is paid from the buyer's bank and other payment accounts to the bank and other payment accounts of the person providing the goods (works, services), provided that the VAT amount is paid into the VAT deposit account.
We would like to bring to your attention that, according to Article 175.3 of the Tax Code, except for the expenses specified in Articles 109.4 and 119.2 of this Code, when the expenses referred to in Article 109.3 of this Code are incurred, VAT reimbursement is not allowed.