A VAT refund is a request filed by the taxpayer to the commissioner general with the intention of receiving reimbursement for excess VAT paid within a specific time period when input VAT exceeds output VAT. For that case, whatever the VAT you have paid in excess you are entitled to apply for VAT refund as stipulated into the VAT Act, 2014. During the financial crisis, the VAT refund will support you in funding your business operations.
Section 82 (2) of Value Added Tax, 2014 states that, “A taxable person who is entitled, under this section, to a refund of a negative net amount may-
(a) apply for a refund of the amount; or
(b) choose to carry the amount forward under section 81 until such time as the person applies for a refund of the amount in paragraph (a) of this subsection”.
As per cited section above the taxpayer has the options either to apply to the Commissioner General for VAT refund or choose to carry the amount forward. A taxable person who has paid more than the net amount for a tax period may apply for a refund provided that the application is made within 3 years after overpayment.
Section 6 (2) (b) (i) accompanied together with (4) of VAT Act, 2014 (Revised Edition 2019) has exempted items used by the taxpayers who are serving government projects (Building bridges, contraction of culverts and routine maintenance of roads). Therefore, civil and construction engineers who are serving government projects as mentioned in the above section are entitled to apply a VAT refund for the money they spent on project-related purchases.
Section 29 (1) of Value Added Tax (General) Regulations, 2015 details the requirements for the taxpayer to file VAT refund. The application of the VAT should be accompanied with the following;
NOTE: The certificate of genuiness referred to under section 29 (1) above shall be issued by an auditor who has been registered by National Board of Accountants and Auditors and who is registered as a tax consultant by Tanzania Revenue Authority as well. This certificate of genuiness is certified by the auditor through taxpayer portal.
The Finance Act, 2024 proposed for VAT refund payments to be made within 30 days from the date of submission of the refund applications. Thus the VAT Act requires the Commissioner General (CG) make a decision on VAT refund within 30 days of receipt of an application.
HALA Consultants,
Certified Public Accountants,
NSSF Hifadhi House, 9th Floor, Azikiwe Street,
[email protected]
0752 187 434
Section 82 (2) of Value Added Tax, 2014 states that, “A taxable person who is entitled, under this section, to a refund of a negative net amount may-
(a) apply for a refund of the amount; or
(b) choose to carry the amount forward under section 81 until such time as the person applies for a refund of the amount in paragraph (a) of this subsection”.
As per cited section above the taxpayer has the options either to apply to the Commissioner General for VAT refund or choose to carry the amount forward. A taxable person who has paid more than the net amount for a tax period may apply for a refund provided that the application is made within 3 years after overpayment.
Section 6 (2) (b) (i) accompanied together with (4) of VAT Act, 2014 (Revised Edition 2019) has exempted items used by the taxpayers who are serving government projects (Building bridges, contraction of culverts and routine maintenance of roads). Therefore, civil and construction engineers who are serving government projects as mentioned in the above section are entitled to apply a VAT refund for the money they spent on project-related purchases.
Section 29 (1) of Value Added Tax (General) Regulations, 2015 details the requirements for the taxpayer to file VAT refund. The application of the VAT should be accompanied with the following;
NOTE: The certificate of genuiness referred to under section 29 (1) above shall be issued by an auditor who has been registered by National Board of Accountants and Auditors and who is registered as a tax consultant by Tanzania Revenue Authority as well. This certificate of genuiness is certified by the auditor through taxpayer portal.
The Finance Act, 2024 proposed for VAT refund payments to be made within 30 days from the date of submission of the refund applications. Thus the VAT Act requires the Commissioner General (CG) make a decision on VAT refund within 30 days of receipt of an application.
HALA Consultants,
Certified Public Accountants,
NSSF Hifadhi House, 9th Floor, Azikiwe Street,
[email protected]
0752 187 434
