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- 9 Marks
Question
You are a student of taxation at Ebeyeyie Tax Education Institute. You have been contacted for tax advice by Ekumfi Fruit Processing Ghana Ltd. The company produces various kinds of fruit juices for both local and foreign markets. The Finance Director recently learned that the company can apply for VAT refund from the Ghana Revenue Authority (GRA) and has approached you for advice.
Required:
Advise the company on SIX (6) conditions that must be satisfied before the GRA may refund the excess VAT Input Tax to the company under the Value Added Tax Act, 2013 (Act 870), as amended. (9 marks)
Answer
The company must meet the following six conditions before applying for a VAT refund:
- The VAT paid qualifies as a deductible input VAT.
- The company must provide all necessary records to support the refund application.
- It must have submitted returns for all months it has been in operation.
- The company’s exports must exceed 25% of total supplies within the tax period.
- The total export proceeds must be repatriated to an authorized bank account in Ghana.
- The refund application can only be made when the excess VAT has been outstanding for at least three months
- Tags: GRA, Input VAT, Tax Administration, Tax Refund Conditions, VAT Refund
- Level: Level 2
- Topic: Value-Added Tax (VAT), Customs, and Excise Duties
- Series: AUG 2022
- Uploader: Theophilus