What is VAT Refundable and when must you claim it
If a vendor has an outstanding debt, a VAT refund will be set-off against that debt and any balance will be payable to the vendor.
You can claim a VAT refund within 5 years from the due date of the return. If you made an incorrect overpayment, you must claim it within 5 years from the date of the overpayment.
A refund is the result of the excess claims of input VAT on goods and services over the output VAT on sales.
Frequently asked questions
What is a VAT return?
Value-added Tax is declared via a VAT Return. The VAT Return details the Output VAT from Sales and the Input VAT from Purchases. The net result is either VAT Payable of Refundable.
What is VAT Exempt?
VAT exempt products and services are items that should not be taxed with VAT. Businesses that are exempt are:
- Charities.
- Organizations classified as exempt by the receiver of revenue.
- Businesses selling VAT exempt products.
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