The exemption from VAT is valid for 12 months from the date of submission to the tax office of an application for the use of the right not to pay VAT. After the expiration of the specified time, it is necessary to extend the exemption or refuse it.
In any case, by the 20th day of the month following the 12th month of exemption from VAT, the tax office must be sent either a notice of the extension of the use of the right to exemption or a notice of refusal to exempt.
The notification form on the extension of the VAT exemption was approved by Order of the Ministry of Taxes and Tax Collection of Russia dated 04.07.2002 No. BG-3-03 / 342. The waiver of further exemption is presented in an arbitrary manner.
However, in any case, along with these notifications, it is necessary to submit to the tax authority documents on the amount of proceeds for the past 12 calendar months. The consequences of failure to provide such documents may be the restoration of the tax and the obligation to pay it to the budget, as well as penalties and fines for late payment of VAT. Such sanctions also threaten organizations that have violated the restrictions on the revenue limit and type of activity.
In the event that an organization submits balance sheets and financial statements on the results of its activities, but does not attach a renewal notice to them, the tax authority will consider that the VAT exemption has not been extended and the tax is subject to calculation in a new period.
If an organization switches to a special tax regime before the expiration of 12 months of exemption from VAT, then such documents on the amount of revenue do not need to be sent.
