If a VAT Registrant has VAT Credits (VAT Paid greater than VAT Charged) at the end of the month (or tax period), should the excess amount/credit be carried forward to the next month’s return?
- VAT Registrants trading in more than 51% or more standard-rated supplies
The VAT Credits at the end of a tax period should be carried forward to the next tax period/month. If after six consecutive months and the credits are not utilized, the VAT Registrant can apply to the GRA for a VAT Refund of the remaining credits.
- VAT Refunds trading in 50% or more Zero-Rated Supplies
A VAT Registrant trading in 50% or more Zero-Rated supplies may apply to the GRA monthly for a VAT Refund of the excess credit.
The person(s) claiming the refund must apply to the GRA in the prescribed form outlined in the VAT legislation. The form required is available on the GRA’s website via Application for VAT Refund & Tax Relief.
The GRA continues to encourage taxpayers to utilise the e-filing facility via the Optimal Revenue Management System (RMS) for submission of VAT returns and claims.