Taxpayers are entitled for a refund of excess taxes paid on VAT by virtue of section 17(5) of the Value Added Tax Act, No. 35 of 2013. It is provided that where the amount of input tax that may be deducted by a registered person under subsection (1) in respect of a tax period exceeds the amount of output tax due for the period, the amount of the excess shall be carried forward as input tax deductible in the next tax period provided that any such excess shall be paid to the registered person by the Commissioner.
The claim for the refund of the excess tax must be lodged within twelve months from the date the tax becomes due and payable. The excesses however need arise from zero rated supplies.
As a matter of procedure, The Commissioner may, for purposes of ascertaining the validity of the refund claimed, subject the claim to an audit.
