Adviser to the Prime Minister on Finance Dr Hafeez Shaikh took to his twitter account to share the decision that the government has taken important decisions on tax refunds
'for the promotion of economic activity in the country and to provide liquidity support to businesses.'
He said that the system would bring more transparency in the sales tax refunds
claims as the human interaction was completely eliminated and the system would work on electronically generated invoices of sales and purchases.
However, exporters who do not file form 'H' - mandatory to claim refunds
- along with their monthly returns will get 120 days, extendable by another 60 days under certain conditions, to submit the form.
From November 18 2018, eligible tourists in the UAE have been able to request refunds
on VAT from purchases made while in the UAE.
Many Americans may confuse their small refund
as a sign that they paid more in taxes as a result of the Tax Cuts and Jobs Act.
The PIAF chairman Mian Nauman Kabir in a statement along with senior vice chairman Nasir Hameed Khan and vice chairman Javed Iqbal Siddiqui said that the businessmen were bearing huge financial costs on their own hard earned stuck-up money; therefore, the FBR chairman should look into the matter and ensure early release of sales tax and income tax refunds
as promised by the government through promissory notes.
'So all of these together will allow the refund
process to be better.
The DOF said the pre-TRAIN process of claiming VAT refunds
involved the submission of many documents, and often takes years to resolve.
In the case of RFD-01A (ITC Refunds
plus other refunds
) claims, out of the total refund
claims of Rs.
Byrne revealed that the number of companies registering for the tourist VAT refund
scheme are expected to more than double from currently 4,500-plus to 6,000 by the end of 2018 and 10,000 by early next year.
"This means that the tourist refund
will come in to effect after the scheme is implemented.
The offset application needs to be submitted to IRB for verification before approval while the remaining tax refunds
will be carried out based on the government's fiscal ability, the finance minister said in a statement.
When these resources work as planned, a taxpayer's refund
can be issued in as little as 10 days, with most refunds
paid within 21 days.
claims for open tax years are an often overlooked opportunity to ensure that a taxpayer takes advantage of tax benefits to which it is entitled.