Recently a law amendment, that was pending for a long time, has been finally adopted. The law amendment removed restrictions on the amount of VAT refundable over time. This provision of law will take effect from 1 January 2021.
From 2021 these restrictions are changed since it will be possible to apply for the refund of any overpayment of VAT incurred during a tax period after the end of that tax period and taxpayers will not have to wait until the end of the calendar half-year. This VAT law amendment will enable reliable taxpayers to recover VAT overpayments more quickly and will enable them to optimize their cash flows.
Unfortunately, if a taxpayer does not meet the minimum reliability requirements (which will be set accordingly), rules will stay the same – VAT overpayment can be refunded no earlier than after the end of the calendar half-year.
Source: 1StopVAT
See also: Law amendment; Minimum reliability requirements
