Service
Context
A newly established Czech company approached us, incorporated specifically for a single foreign trade transaction. At the time of the request, the company had no turnover and no VAT payer status. The company imported goods and paid VAT at customs, after which the goods were sold abroad. The client filed an application for a refund of the tax paid, amounting to over 300,000 CZK. However, the process was complicated by three critical risks, any one of which could have resulted in the refund being denied.
Task
- Secure VAT payer status for the company despite having no turnover.
- Assemble a complete set of documents confirming the export transaction actually took place.
- Pass a full tax audit without penalties or additional assessments.
- Achieve a full refund of the VAT paid at customs.
Legal and Financial Approach
- Prepared a complete documentation package, a detailed business description, and a well-substantiated business plan to obtain VAT payer status on a voluntary basis.
- Coordinated simultaneous communication with all parties to the transaction — freight forwarders, logistics providers, the buyer, and customs — to reconstruct the full chain of supporting documents.
- Addressed each of the 25 points requested by the tax office when the VAT refund application was submitted.
- Took over communication with the tax office entirely during the full tax audit, substantiating the legality of every transaction and every step.
Key Point
The decisive factor was assembling documentary proof of the export’s authenticity under conditions where part of the documentation from the logistics company was missing and payment had not yet been made due to an installment arrangement between the parties. It was precisely the completeness and consistency of the evidence that removed the tax office’s suspicion of an unlawful VAT refund and helped avoid additional assessments.
Result
- The company officially received VAT payer status.
- The export transaction was recognized by the tax office as legitimate.
- The VAT paid at customs was refunded to the client from the state budget in full.
- The tax audit was closed with no remarks or penalties.
Legal and Consulting Areas
- Tax law and VAT
- Customs regulation and foreign trade operations
- Tax audit representation
Keywords
#VATrefund #taxaudit #export #customs #VATpayer
