VAT taxpayers can now apply for fast-track refunds
REGULATION WATCH- VAT taxpayers can now apply for fast-track refunds: Taxpayers are now able to claim part of their VAT refunds in advance of the tax assessment after Finance Minister Mohamed Maait yesterday issued a decree amending the VAT Tax Act executive regulations, according to a Finance Ministry statement.
How do companies apply? Taxpayers must provide authorities with bank guarantees covering 65% of the proposed refund, and proof (i.e. purchase invoices, customs release forms) that they have paid the refundable amount.
When can they expect to receive the refund? If approved, taxpayers will receive a refund equal to the bank guarantee within 15 days of submission. A three-month window would then be allowed to file the remaining paperwork, after which the Tax Authority will assess the tax return and pay out the remaining refund within six months. Companies with prior history of tax evasion will not be eligible.
Background: The cabinet’s economic group approved the changes in a meeting earlier this month in response to investor complaints that tax refunds take too much time.