Netting, Deduction and Refund of the Tax Refundable

Art. 77.

(1)

The tax refundable under Art. 76 shall be netted, deducted or refunded as follows:

1. In the case of other ascertained outstanding tax liabilities as of the date of submission of the return, the tax authority shall net such debts against the tax refundable, as stated in the return; the procedure under item 2 shall apply to the balance, if any;
2. ⁶⁵ Where no other ascertained outstanding tax liabilities exist or where their amount is less than the tax refundable under the return, the registered person shall deduct the tax refundable or the balance of the tax refundable under item 1, as stated in the returns submitted over the next four successive one-month tax periods;
3. Where tax payable remains after the deduction under item 2, it shall be paid within the time limits under Art. 74, par. 1;
4. If after the expiration of the term under item 2 there is a balance of the tax refundable, tax authorities shall net this balance to refund against other ascertained outstanding tax liabilities or refund it within 45 days after the submission of the latest return;
5. ⁶⁶ If the tax refundable, in respect to which a deduction procedure has started, is not fully deducted as of the date of the last return over the four one-month periods, any other tax refundable under a return for any of these one-month periods shall be added thereto and it shall be subject to refunding or netting, together with the balance and within the time limits under item 4;
6. ⁶⁷ If the conditions under item 5 are not available, a new four-month period shall begin for the deduction of the next tax refundable, as stated in the return.

(2)

 ⁶⁸ Any registered person who, for the least 12 months prior to the current month, has effected importation within the meaning of Art. 14 and supplies under Art. 92 at a total value of over 30 per cent of the total value of all supplies effected by this person over the same period and has no ascertained outstanding tax liabilities, shall be entitled to have the balance under par. 1 refunded within 45 days after submission of the return. If there are any ascertained outstanding debts to the state, the netting and refunding of the balance, if any, shall be effected within the same time limits.

(3)

 ⁶⁹ The circumstances under par. 2 shall be certified in writing before the respective tax directorate in the return submitted. Otherwise the provisions of par. 2 shall not apply.

(4)

In the course of the deduction procedure performed under this Art. by the registered person, tax authorities shall not be entitled to net the tax refundable against other debts to the state.

(5)

The tax refundable, which has not been refunded without valid reasons within the time limits specified in this Law, shall be refunded together with the legitimate penalty interest.