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Implementing a well-designed audit program is essential to reduce the frequency of VAT refund abuses. The most effective audit programs are those developed as part of general risk management and are characterized by the following characteristics and principles: taxpayers are often entitled to interest on late repayments. In about 40% of the countries surveyed, VAT legislation provides for the payment of interest in the event of a late repayment. Minimus rules may apply (for example. B in Singapore and the United Kingdom, there is no interest to be paid if the calculation of interest is less than a legal required amount). Interest payments are considered compensation for taxpayers who have essentially lent money to the government. Interest is calculated at a statutory interest rate – often in line with interest rates applicable to commercial banks and adjusted quarterly or twice a year per regulation – multiplied by the number of days elapsed since the expiry of the legal period. In the absence of interest on refunds made by tax payers established under national law, the interest payable corresponds to the interest or equivalent taxes collected by that country in the event of a late payment of VAT by the tax payers. This agreement replaces all previous agreements. This Contract replaces and removes all previous agreements between you and ZappTax, in writing or orally, regarding its purpose.

Repayment deadlines should not overlap. Like what. B, you cannot apply for January 1 to March 31 and another for March 1 to May 31. They can submit another application covering the entire year of repayment after the end of the year. This way you can take advantage of all the purchases you missed in previous periods. Our transfer right. We only transfer your rights or obligations under the contract if we reasonably believe that it will not have a material negative impact on your rights under these Terms and Conditions, or if we must do so to comply with all legal or regulatory requirements. When you transfer rights and duties, you call it “Novation.” If we only transfer rights, we call it “assignment.” We will inform you in writing of each transfer.

The authors are particularly grateful to Jean-Paul Bodin and Michael Keen, the ADF`s heads of income administration and tax policy, for their support and advice. They are also grateful to their other D.D. colleagues who have provided valuable assistance in implementing vat refund collection. Comments and documents from OECD colleagues were also particularly helpful. Before you return to your country of residence, we provide you, via the application and by e-mail, a tax refund form (a “VAT form”) signed in our capacity as seller of the goods and indicating the amount of tax to be claimed. You must have approved (i.e. stamped) the tax form when you leave the EU. A claim model develops over time in most countries.

Table A2 of the appendix shows how reimbursement levels within countries are consistent from year to year, with some slight variations. CpD`s experience is that each country develops over time a claim model that is influenced by the factors described above (. B characteristics of the economy and structure of the VAT system). It is important for tax authorities to have an idea of the level of repayments they could reasonably expect, both for resource planning and budget, and as a warning sign to attempted fraud.