VAT Refunds Flashcards
When is excess input tax carried forward to the next period as deductible input tax?
Where amount of input tax deducted exceeds output tax due
What does one need to satisfy the commissioner for a refund?
Excess arises from making zero rated supplies
Tax withheld by registered withholding agents
How to apply for a VAT refund?
Apply online on itax
When to lodge a claim for the excess input tax
Within 24 months from the date the tax became payable
Pre-requisite for refund for overpaid tax?
application within 5 years
Audit by the commissioner
decision within 90 days of application
Time period for a claim for Refund for tax paid in error?
12 months from the date the tax became due
Section 31
Timeframe for claim for tax on bad debts?
3 years from the date of the supply.
Time period shall not exceed 4 years from date of supply.
What happens in a scenario where debtor pays supplier after refund is made by commissioner?
Supplier must refund commissioner within 30 days of recovery.
Failure of taxpayer to refund tax refund paid in error?
Penalty of 2% per month or part thereof will be due
Time period within which commissioner responds to an application for a refund?
90 days
What is the order the commissioner applies the overpayment?
Payment of any tax due under VAT law
Payment if any tax under any other tax law
Remainder refunded to supplier
Pre-requisite for refund for overpaid tax?
application within 5 years
Audit by the commissioner
decision within 90 days of application
What is the interest charged when the commissioner applies the refund to settle outstanding taxes?
if commissioner applies the refund to pay outstanding tax, no interest
Balance if any - interest and penalties charged
Time period of refund
2 years from the date of application
