LT6683B - A method for vat refund and the system thereof - Google Patents

Abstract

The described method of VAT refund and the system implementing this method allow easy and quick administration of VAT refund. VAT refund implementation system comprise the following components: the central control unit, the data submission unit, the tax administration unit and the crediting unit. The data submission unit provides data on VAT refund to the central control unit. The central control unit verifies the data, records it into the database and document management systems and forwards it to the tax administration institutions. The tax administration institutions refund the client-paid VAT to the partner. In the case of a simple refund, the partner refunds the client-paid VAT to the client, after deduction of the commission. In the case of a quick refund, the crediting institution takes part in the method, which grants the credit to the VAT refunding partner, the partner pays the granted money to the client, and when the tax administration institutions refund the VAT, the partner refunds the credit to the crediting institution. Many of the processes described in the method are done automatically and are saved, so they can be viewed at any time later.

Description

TECHNICAL FIELD

The invention relates to the field of administration of the value added tax (VAT) refund process, and more particularly to the method of VAT refund and the system implementing this method.

TECHNICAL LEVEL

The purchase of goods or services is subject to value added tax (VAT), which is usually different for different categories of goods or services or for different countries. A temporary visitor to a foreign country has the option of refunding certain taxes paid in that country, VAT, but different countries have different tax refund rules and different aspects of refunds. In many cases, VAT refunds are difficult, inconvenient, require specific knowledge, or take too long. Thus, there is a need for an easy and simple way to recover VAT.

Document US6003016A (published December 14, 1999) provides a technical solution for recovering value added tax (VAT). In this cited case, a new VAT invoice is created and a card associated with that invoice is issued, which must be provided at the time of purchase of the goods / services from which the VAT may be refunded. The seller of the good / service invoices that VAT in advance for a VAT credit, which is then converted into a refund. The disadvantage is that you must always have a VAT card and present it at the time of purchase to use it. A similar solution to the one quoted is contained in document KR200280792Y1 (published 06/07/2002). There is no need to have a separate VAT refund card in this document, you can link an existing bank card to a VAT refund, but the rest of the way remains the same: it takes a long time to create a new account to fully refund the tax.

A similar solution is disclosed in US6546373B1 (published 08-08-2003). The solution described in this document requires a foreign purchaser to use a special bank card where the software installed determines the amount of VAT for each purchase abroad, and at the end of the journey can be deducted at the dedicated terminal. The disadvantage is the need for a special card, as well as the special infrastructure (special card, chargeback terminals) required to operate this method.

Document US20150242832A1 (published 08/27/2015) provides a method of using a standard bank card for offshore billing software to record purchase data at a vendor, transfer it to a data storage and processing center where the data is verified and can VAT, then coordinates with the appropriate tax authorities regarding the tax refund to the specified account. This drawback has the disadvantages of having to pay by bank card only, it can take a long time (depending on the tax authorities), there is no way to apply for a refund later, after the trip.

The technical solution presented in this description does not have the drawbacks listed above.

THE SUBSTANCE OF THE INVENTION

The method of VAT refund described and the system implementing this method allow easy and quick administration of VAT refund. The VAT refund implementation system consists of the following components: central control unit, data submission unit, tax administration unit and credit unit. The Data Submission Unit provides the Central Control Unit with data on VAT refunds. The central control unit shall verify the data, record it in the database and document management systems and transmit it to the tax authorities. The tax authorities refund the VAT paid by the customer to the partner. In the case of a simple refund, the partner refunds the VAT paid to the customer after deduction of the commission. In the case of a quick refund, the credit institution that grants the credit to the VAT reimbursement partner, the partner grants the credit to the customer, and the partner refunds the credit to the creditor institution in the case of a refund. VAT can be refunded from any country, can be refunded quickly and after the goods or services have been purchased. Many of the processes described in the method are done automatically and are saved, so they can be viewed at any time later.

BRIEF DESCRIPTION OF THE DRAWINGS

Fig. 1. Components of the Value Added Tax (VAT) refund method. 1Data Submission Unit, 2- Central Management Unit, 2.1- Database Management System, 2.2- Document Management System, 3- Tax Administration Unit, 4- Crediting Unit.

Fig. 2. Flowchart of the way in which value added tax (VAT) is refunded.

The illustrations presented are more illustrative, the scale, proportions and other aspects do not necessarily correspond to the actual technical solution.

PREFERRED EMBODIMENTS

It is common practice in retail trade for goods and services to have value added tax (VAT) on them. It can be different for different goods. VAT on the same goods may vary from country to country. In order to avoid double taxation, a person temporarily visiting a foreign country has the option of refunding certain taxes paid in that country, VAT. Tax refund rules vary from country to country, so there are different aspects of the refund, such as the ability to refund a particular service / product, the portion of the tax refund, the refund procedure, the duration, etc. In some countries, you may be able to obtain a tax refund at the time of your departure by contacting the office or body responsible for doing so. It can be cumbersome, inconvenient, take too long, and so on. This can make it difficult for a non-tax refund person to properly use the tax refund procedure to quickly recover overpaid taxes. In particular, if a person has been posted to a foreign country at the workplace, he or she may not have an interest in the tax refund, as he or she will not receive any financial benefit from it personally.

This description describes a method and a system implementing that method for the simple refund of value added tax paid in another country. VAT can be refunded in the normal way, within 2-6 months, and fast, within a few business days.

The VAT refund system described here has the following components (Figure 1):

- a data display unit (1);

- a central control unit (2);

- tax administration unit (3);

- credit unit (4).

The method described for refunding VAT may also include more components required for VAT refunds.

The central control unit (2) is a software tool that controls the VAT refund process on a partner's PC, usually a server. A partner is a natural or legal person who refunds a customer's VAT from the tax authorities. The central control unit receives, processes, sorts and sends to the tax administration unit (3) data needed for VAT refund (customer invoices, certificates, other documents) from the data submission unit (1). The central control unit has a database management system (2.1) and a document management system (2.2). Database management system is a software tool, usually located on a computer, usually on a server, by which the data sent by the client is grouped, saved, stored or later retrieved. A document management system is a software program on a computer, usually a server, that allows documents sent by a client to be recorded, stored, or retrieved. The central control unit mediates between all components by assigning them relevant data or tasks. The VAT Refund Partner will charge a commission on the VAT refund or other consideration, whether fixed or variable, for its VAT refund services. The central control unit automatically calculates the commissions paid by the customer, creates an account and sends it to the data submission unit.

The Data Submission Block (1) is a software tool stored on the computer of a customer wishing to claim a VAT refund. A customer is a natural or legal person who wishes to claim a refund of VAT. The data submission unit allows the customer to submit, replace or supplement invoices, certificates or other documents to the central control unit. Thanks to the data submission unit, the customer also receives data from the central control unit. The central control unit and the data presentation unit shall exchange data via an Internet connection.

In an individual case, in the described method of VAT refund, the central control unit and the data presentation unit may be stored on the client computer or server. In this case, no VAT refund partner is required, and the customer has both a data submission unit on their computer, a server or different computers or servers to provide the data needed for a VAT refund and a central control unit that controls the VAT refund processes.

Alternatively, in the described method of VAT refund, the central control unit and the data presentation unit may be stored on a VAT refund partner computer or server. In this case, the customer submits the VAT refund documents and data to the partner by other means than through the data submission unit. Upon receipt of this data, the Partner shall submit the data to the Data Submission Unit.

The tax administration unit (3) is the tax administration that decides on the customer's VAT refund or non-refund as well as the portion of the tax refund. If the VAT is refundable, the tax authorities will transfer the refundable VAT to the customer's or partner's account, depending on the country, legal regulations or agreements between the customer's partner. The central control unit with the tax administration unit exchanges data via internet connection, the submission / receipt of data is automated. As an example, if the goods or services were purchased in Poland and France, the central control unit will send the VAT refund data to the Polish and French tax authorities.

The Crediting Unit (4) is a software tool that interacts with a bank or other financial services provider for the refund of VAT to a customer. A credit unit is required for a quick refund of VAT, where the customer does not want to wait for the VAT to be refunded to him in the usual way. The central control unit with credit unit exchanges data via internet connection, data submission / receipt and cash withdrawal are automated. By using the VAT refund method described above, the central control unit may cooperate with several crediting institutions, which may be located in the same or different countries.

The main steps of the VAT refund system are as follows (Figure 2):

the data submission unit located on the client computer submits invoices or other payment documents to the central data unit;

the central data unit performs documentary, data verification and compliance with tax refund requirements;

the central data block records data and documents into a database management system and a document management system;

the central processing unit submits an application for a refund of the VAT paid to the tax administration unit;

the central data unit submits to the tax administration unit certificates, invoices or other documents on the VAT paid by the customer;

the tax administration unit submits to the central data unit certificates, invoices or other documents regarding VAT to be refunded to the customer;

the VAT paid by the tax authorities to the customer is refunded to the partner;

after receiving instructions from the central control unit, the VAT refund partner pays the customer the VAT to be refunded.

In the case of ordinary VAT refunds, the tax administration unit refunds the VAT paid by the customer to the refunding partner or customer, in accordance with the law or the agreement between the customer and the partner. In the case of a quick VAT refund, the method involves a credit block: according to its instructions, the creditor institution grants the credit to the VAT refund partner, the partner pays the provided funds to the customer, and the tax administration unit refunds the credit to the creditor institution. For simple or fast VAT refunds, commissions paid by a customer to a VAT refund partner may vary.

The following steps describe the basic operation of the VAT refund system. Depending on the country or other circumstances, this method may have additional steps.

The described VAT refund method makes it easy and quick to administer your VAT refund. In addition to VAT refunds, the central database also performs other functions. The functions of the central database are:

- customer administration;

- contract formation;

- administration of customer invoices for VAT refunds;

- administration of VAT refund applications;

- automatic submission of applications to tax authorities;

- export of application data;

- Importing account data from client or partner files;

- administration of excise applications;

- administration of customer's truck data;

- Acts of acceptance, money order certificates, invoices for services rendered, requests for refunds, etc. document formation and storage;

- calculation of commission for agents;

- sending e-mails to clients;

- automatic currency conversion;

- generation of reports;

- administration of incoming and outgoing correspondence;

- automatic filling of various document templates with customer data;

- task management for program users.

All transactions involving a customer's VAT refund are stored in a database management system or document management system and can be reviewed at any time if needed.

Many of the functions described here are performed by the central control unit automatically. Automatically formed contracts; Importing account data from data files provided by partners; filing applications with tax authorities, drawing up deeds of acceptance, cash disbursement notes, invoices for services rendered, requests for refunds, etc .; generate reports, send emails to clients, and more.

As a specific example, but not limited to, is described below. Suppose a person living in Lithuania temporarily went to Poland and France for work. After returning to Lithuania, he provided VAT invoices and other related documents to the accounting of his company. Bookkeeping in this case is a data submission unit - the computer has the software tools needed to present the data. The submission unit shall submit to the central management unit the invoices or other supporting documents relating to the refund of VAT. The central control unit verifies the customer's documents and VAT refund data and records them to the database management system and the document management system. The Central Control Unit applies to the Polish tax authorities for reimbursement of VAT paid by the customer and invoices the goods or services purchased in Poland and to the French tax authorities for the refund of goods paid by the customer and invoices for goods or services purchased in France. If the customer opts for a quick repayment, and if the customer is entitled to a refund under the applicable rules, the central control unit sends the data to the credit unit and requests the credit institution to grant the credit. On the basis of the data provided, the creditor institution grants the partner credit. The central management unit pays the customer a refundable VAT after deduction of commission. The Polish and French tax authorities submit certificates, invoices or other documents concerning the customer's VAT refund to the central management unit and refund the customer's VAT to the partner. In the case of a quick repayment, the partner repays the credit to the lending institution. In the case of a simple refund, the partner refunds the VAT paid to the customer, after deduction of the commission.

In order to illustrate and describe the present invention, the following is a description of the most preferred embodiments. It is not a detailed or restrictive description intended to determine the exact form or embodiment. The above description should be viewed more as an illustration rather than a limitation. Obviously, many modifications and variations may be apparent to those skilled in the art. An embodiment is selected and described so that those skilled in the art will best understand the principles of the invention and their best practical application for different embodiments with different modifications suitable for a particular application or application. The scope of the invention is intended to be defined by the appended definition and its equivalents, in which all the foregoing terms have the widest possible meaning, unless otherwise stated.

Embodiments described by those skilled in the art may be made without departing from the scope of the present invention as defined in the following definition.

Claims (13)

DEFINITION OF INVENTION 1. VAT refund system operating on a computer, server or data storage and processing center and coordinating with tax authorities, purchaser of goods / services and tax return agent, whereby the tax authorities refund the VAT paid by the customer, which consists of: the following components: - a data display unit (1); - a central control unit (2); - tax administration unit (3); - credit unit (4). The VAT refund system whereby the tax authorities refund the VAT paid by the customer according to claim 1, characterized in that the central control unit (2) resides on the VAT refund partner computer or server and manages the VAT refund process by combining all the components involved. The VAT refund system by which the tax authorities refund the VAT paid by the customer according to claim 1, characterized in that the data submission unit (1) which supplies and administers the data for VAT refund is located on the customer's computer or server. The VAT refund system whereby the tax authorities refund the VAT paid by the customer according to claim 1, characterized in that, in the individual case, both the central control unit (2) and the data submission unit (1) are on the customer's computer or server. The VAT refund system whereby the tax authorities refund the VAT paid by the customer according to claim 1, characterized in that, in the individual case, both the central control unit (2) and the data submission unit (1) are on the VAT refund partner computer or server. 6. A VAT refund system whereby the tax authorities refund the VAT paid by the customer, characterized in that the central control unit (2) communicates with many tax administrations from different countries at the same time by means of software and sends them and receiving data from them. 7. The VAT refund system whereby the tax authorities refund the VAT paid by the customer in accordance with claim 1, characterized in that the central control unit carries out many of the VAT refund processes automatically. 8. VAT refund system whereby the tax authorities refund the VAT paid by the customer, characterized in that all customer data and transactions relating to the customer's VAT refund are stored in a database management system (2.1) or a document management system (2.1) 2.2) and may be revised at any time if necessary. 9. The VAT refund method, whereby the tax authorities refund the VAT paid by the customer, characterized by the following steps: the data submission unit (1) located on the client computer submits invoices or other payment documents to the central data unit; the central data unit (2) performs documentary, data verification and compliance with tax refund requirements; the central data block (2) storing the data and documents in the database management system (2.1) and the document management system (2.2); the central data unit (2) applies to the tax administration unit (3) for a refund of the VAT paid; the central data unit (2) submits to the tax administration unit (3) certificates, invoices or other documents regarding the VAT paid by the customer; the tax administration unit (3) submits to the central data unit (2) certificates, invoices or other documents regarding the VAT to be refunded to the customer; the VAT paid by the tax authorities to the customer is refunded to the partner; after receiving instructions from the central control unit (2), the VAT refund partner pays the customer the VAT to be refunded. 10. The VAT refund method by which the tax authorities refund the VAT paid by the customer, in accordance with paragraph 9, wherein the VAT paid by the customer can be refunded from any country. 11. The method of refund by which the tax authorities refund the VAT paid by the customer, in accordance with point 9, is that the VAT is refunded after the goods or services have been purchased. 12. The VAT refund method by which the tax authorities refund the VAT paid by the customer, characterized in that, in the case of a simple VAT refund, the tax administration unit refunds the VAT paid by the customer to the refund partner or customer under the law or the customer-partner agreement. . 13. The VAT refund method, which refunds the VAT paid to the customer by the tax authorities, according to claim 9, wherein in the case of a quick refund the credit unit is involved: according to its instructions, the creditor institution credits the VAT refund partner to the customer. the partner (3) refunds the credit to the creditor institution upon refund of VAT.