TAX MATTERS: Processing of Value Added Tax refunds

VALUE Added Tax (VAT) is an indirect tax on consumption, charged on the supply of taxable goods and services as well as on importation of goods and services. It is levied on transactions rather than directly on income or profit.
The VAT payable is the difference between output tax and input tax. Output tax is charged on taxable supplies made, while input tax is incurred by the registered operator on the acquisition of taxable supplies of goods and services. If input tax exceeds output tax, the result is a VAT refund.

VAT laws provide for a refund of excessive input tax i.e., input tax plus adjustments that exceeds output tax plus adjustments in any tax period as long as the claim is made within six years of the end of the relevant tax period. The refund should exceed the prescribed amount and carried forward to the next period if less than this