Introduction

2026 update

Legal framework and supervisory authority

Who may seek a VAT refund

Key substantive and procedural requirements

• VAT registration: A claim typically requires that the claimant is properly registered under the VAT Act for the relevant tax period.
• Accurate returns and filings: Refund claims are usually supported by returns and filings for the relevant tax period; unresolved returns or outstanding filing obligations can affect processing.
• Documentation: Claims should be supported by the underlying documents that substantiate input VAT: tax invoices issued by registered suppliers, contracts or purchase orders, payment receipts, and, where relevant, export documentation or customs paperwork.
• Bank details and authority: Refunds are normally paid to the bank account of the registered taxpayer or as otherwise directed by the NBR; ensure bank details are current and that any required authorization for electronic payment is in place.
• Time limits: Statutory or administrative time limits commonly apply for submitting refund claims; these limits may be measured from the end of the relevant tax period. Because these windows can change and may be subject to exceptions, verify applicable deadlines with the NBR or your adviser.
• Tax position and offset: Refunds ordinarily arise where input VAT exceeds output VAT; offsetting against tax arrears and other liabilities may be permitted or mandated under NBR procedures.

Common categories of refundable VAT

• Input VAT on purchases where the goods or services are used for taxable supplies and the input VAT is not disallowed by statute;
• VAT paid on zero-rated supplies (for example, exports) where the seller has charged VAT at zero rate but has accumulated input VAT and seeks recovery; and
• Situations where adjustments, credit notes or corrections produce a net refundable position.

Documentation checklist

• VAT registration certificate(s) for the claimant;
• Tax invoices issued by suppliers with supplier VAT registration numbers;
• Purchase orders, contracts or supply agreements demonstrating the commercial basis of purchases;
• Proofs of payment (bank statements, payment receipts) showing that VAT was paid;
• Customer invoices and export documentation for zero-rated supplies, including shipping and customs documentation where relevant;
• VAT returns and reconciliations showing the computation of input and output VAT; and
• Power of attorney or board resolutions where a third party files or collects refunds on behalf of the taxpayer.

Step-by-step practical procedure

1. Pre-claim review

   Reconcile accounting records and VAT returns for the relevant tax periods. Identify the source of the refundable balance (for example, excess input VAT, creditable purchases, or export-related credits). Confirm registration status and ensure there are no outstanding returns or routine compliance issues that could affect the claim.

2. Assemble and verify documents

   Gather the items on the documentation checklist. Verify that supplier invoices show the supplier's VAT registration number, correct invoice serials and, where applicable, that exports are supported by shipping and customs documentation.

3. Calculate the refundable amount

   Prepare a reconciliation that clearly shows input VAT, output VAT, adjustments and the net refundable amount for each tax period in question. Document the basis for each adjustment or credit.

4. Complete the prescribed application

   Complete the refund application form prescribed by the NBR. Where an electronic filing channel is available and required, follow the electronic submission steps. Ensure all attachments are correctly referenced and numbered.

5. Submission and acknowledgement

   Submit the application to the appropriate VAT office or via the NBR's electronic platform. Retain any acknowledgements or tracking reference numbers. If filing via a proxy, ensure the proxy has a valid authorization on file.

6. Follow up and respond to queries

   After submission, the VAT office may request additional documents or clarification. Respond promptly and maintain a log of communications. If the office conducts an audit, provide organized access to the requested materials and track deadlines for responses.

7. Receipt of funds and reconciliation

   If the refund is approved, the amount is typically paid to the taxpayer's bank account; ensure the payment is reconciled and that any offsetting against tax liabilities is correctly accounted for. If payment is refused or reduced, examine the office's reasoning and, if appropriate, seek advice on available remedies.

Common procedural issues and how to address them

• Incomplete invoices: Verify that supplier invoices meet statutory formalities. Where a supplier cannot provide a compliant invoice, document the efforts made to obtain it and consider whether alternative evidence may be acceptable.
• Timing and time-bar: Monitor statutory deadlines for submitting claims and for record retention; if a deadline is approaching, prioritize submission and document the reasons for any delay.
• Discrepancies in returns: Prior to submission, reconcile returns with accounting records to identify and correct any clerical errors.
• Audit readiness: Expect that larger claims may trigger a desk or field audit. Maintain an organized claim file and a single point of contact who can manage communications with the VAT office.
• Bank and payment details: Confirm that bank account details are up to date to avoid payment issues; for cross-border payees, confirm any foreign exchange or remittance requirements.

Interaction with exports, customs and zero-rating

• Retain customs and shipping documentation to show that goods left the customs territory;
• Ensure export invoices identify the transaction as zero-rated and contain the information required by VAT rules; and
• Be prepared to show that input VAT was incurred directly in producing or delivering the exported goods or services.

Appeals and dispute resolution

Practical record-keeping and internal controls

• Standardize the format of supplier invoices and supporting files so that refund files can be assembled quickly;
• Implement an internal review checklist to confirm that each invoice contains required elements before it is recorded as input VAT;
• Retain copies of correspondence with suppliers and the VAT office in a searchable electronic format; and
• Train staff responsible for VAT filings on common pitfalls and the importance of timely responses to NBR queries.

Digital submission: opportunities and cautions

• Confirm the accepted file formats and the maximum file sizes for attachments;
• Use secure channels and preserve copies of the submitted documents and electronic acknowledgements;
• Verify that digital signatures or authorization credentials are valid and current; and
• Retain an offline backup of submitted documents in case of system outages or audit requests.

When to seek specialist legal or tax advice

• Large-value claims that are likely to be subject to detailed verification or audit;
• Complex cross-border transactions, including supplies involving multiple jurisdictions;
• Sector-specific rules that may limit deductibility or entitlement (for example, suppliers in regulated industries); and
• When the VAT office raises assessments or penalties in connection with a claim.

Practical timelines and expectations

Sample internal checklist before submission

• VAT registration certificate confirmed and active;
• All tax returns for the periods in question filed and reconciled;
• Supplier invoices validated for statutory content and supplier registration numbers;
• Bank payment evidence attached;
• Export evidence attached where relevant (customs documents, airway bill, bill of lading);
• Application form completed and references cross-checked with attachments;
• Authorized signatory or power of attorney attached where required;
• Electronic submission tested on a dummy file if using a new e-filing channel.

Coordination with other TRW resources

• Our firm
• Our practices
• Services
• Tax lawyers

Five practical FAQ questions

Checklist of next actions for taxpayers

• Confirm VAT registration status and outstanding filing obligations;
• Complete the reconciliation of input and output VAT and prepare a supporting schedule;
• Assemble supplier invoices, proofs of payment and any export or customs documentation into a single indexed file;
• Decide whether to submit electronically or in person and confirm any local procedural variations with the relevant VAT office;
• Consider engaging a qualified adviser if the claim is material, complex or if there are open disputes with the tax authority.

External resources and official references

Contact and further assistance

Conclusion