Most companies that invite the VAT are entitled to apply for a refund. The procedures include:
• A Value Added Tax recovery claim has to be filed with the federal tax authority.
• While applying for Value Added Tax recovery original invoices must be submitted with the claim, including signed refund forms.
• The input Value Added Tax credit could be recovered in the tax period monthly or quarterly in which the following two conditions are satisfied for the first time, or in the immediately following tax period. The two conditions are: The tax invoice is received, and an intention to make the payment for the supply before the expiration of six months after the agreed date of payment is formed.
• Documents required are:
• Sales Invoices, Purchase Invoices
• Debit or Credit Notes
• Import and Export Records
• Accounting Books
• Zero-Rated/exempt Supplies and Purchases
• Records of goods issued free or private use
