As stipulated in S.I. 98 of 2024 of the Value Added Tax (VAT) Act Refund Regulation 2024, effective 1 January 2025, taxpayers registered under VAT must compulsorily claim a VAT refund where:
- A VAT credit has been carried forward to two consecutive VAT periods and exceeds SCR10, 000 at the end of the third VAT period by a compulsory registered taxable person.
- A VAT credit exceeding SCR10, 000 is reported on the quarterly return by a voluntary registered taxable person.
- Unless otherwise applicable, a VAT credit exceeding SCR 10,000 is reported on a monthly return by an exporter, supplier of zero-rated goods or services or investor during the commencement phase of the business activity.
A VAT refund shall be granted where a taxable person has claimed for a refund on a VAT return duly completed and has fulfilled all payment obligations.
In addition, following amendment to regulation 3 of the VAT refund, the Commissioner General may payout refund in the absence of a claim when satisfied that the taxpayers account is in order.
Taxpayers’ claiming the VAT refund must complete the “Claim for Refund” section on the VAT return form and clearly indicate the amount to be reimbursed.
For further guidance on the VAT procedures and processes, please email advisory.center@src.gov.sc or contact 4293737 to be assisted by a Provision of Advice Officer.