Tax NewsFlash - February 2025

Dear Readers,

The Ministry of Finance introduced amendments¹ to the Rules for the VAT Refund and the Application of the Risk Management System to Confirm the Accuracy of the Excess VAT Amounts. The updated version of the rules expands the grounds for reducing the VAT refund.

The amendments broaden the scope of violations that, when detected, result in the removal of the excess VAT amount linked to non-compliant suppliers from the overall refund calculation. The amendments introduced the following additions to the list:

• The existence of unpaid VAT obligations at the time of the topical tax audit’s completion;
• Reduction of VAT obligations through the submission of amended VAT declarations as of the completion date of the topical audit;
• Extension of VAT payment deadlines prior to the completion of the topical audit.

The purpose of these amendments is to prevent VAT refunds from the state budget in cases where suppliers have not actually paid the assessed VAT due to the submission of amended VAT declarations or extensions of the deadlines for fulfilling VAT obligations.

The order comes into effect on 11 February 2025.