VAT Refund Update

ITAS Update

Effective 1 February 2021 the Ministry of Finance intends to expedite the pay-outs of undisputed Value Added Tax (VAT) refunds, to within three months following the receipt of a credit VAT return.

THE Ministry of Finance has announced that it speed up undisputed Value Added Tax (VAT) refunds to within three months, from February next year.

The promise to expedite VAT refunds is not new, as former minister Calle Schlettwein also promised an improvement in refund payouts, which never materialised, although the VAT Act states that a refund should be paid out within two months, after a refund assessment.

Analysts have for long called on the taxman to ensure that refunds are paid out timely as delays cause liquidity constraints on taxpayers.

Making the announcement yesterday, Tonateni Shidhudhu, the ministry’s spokesperson, said the ministry has improved the payout period, and will even do better next year.

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