Awaiting a VAT Refund from Inland Revenue?


EXPERTS SPEAK Chantell Husselmann is an Assistant Manager at the Indirect Tax Department of Pricewaterhouse-Coopers. She is a Chartered Accountant and has 7 years of experience within the firm. Our article is aimed at creating increased public awareness on the newly adopted “VAT Refund Verification System” by Inland Revenue. VAT returns reflecting a refund position are likely to be selected for an audit by Inland Revenue. Inland Revenue will inform you in writing to schedule an appointment with the responsible staff member. The letter will also request you to supply Inland Revenue with supporting documentation. In order to exceed the challenge of justifying and obtaining your VAT refund we recommend the following: – Ensure that the VAT return contains your fax number, this will ensure that Inland Revenue’s VAT audit notification reaches your offices quicker; – If the documents and records relating to the VAT period are voluminous, we recommend to provide your VAT report to Inland Revenue, requesting them to select a sample of records to be presented for audit purposes; – Upon receipt of Inland Revenue’s notification, call their offices to confirm the date and time of your audit meeting; – Ensure that you have the following documents at hand: – a copy of the VAT return under review – copies of the Import VAT returns relating to the VAT period being audited – VAT reports and schedules available. (The VAT report and schedule should correspond with the amounts declared and claimed per the VAT return) – bank statements – sales invoices – valid tax invoices for expenses and fixed asset additions (these must comply with the requirements of a tax invoice per the VAT Act) – contracts for recurring debit orders (e.g. insurance payments) – receipts of respective import VAT payments Copyright ÃÆ’Æ‘ÀÃ…ÃÆ”šÃ‚© 2006 PricewaterhouseCoopers. All rights reserved. Pricewater-houseCoopers refers to the individual member firms of the worldwide Pricewater-houseCoopers organization.