🏛️ IRD Responds to Exporter Concerns Over VAT Refund Delays

• Tax Administration & Refunds: The Inland Revenue Department (IRD) stated that roughly 95% of Value Added Tax (VAT) refunds are issued within the prescribed timeframe, addressing CoPF concerns regarding delayed payments to small and medium exporters. • Processing Timelines: Claims categorized as low- and medium-risk are processed within 14-15 days. High-risk claims undergo extended verification and data analytics assessments prior to payout. • Reasons for Delays: Key drivers behind pending refunds in remaining cases include taxpayer non-compliance, outstanding tax liabilities, incomplete documentation, and specific file risk factors. • Digitalization Context: Discussions arose during CoPF scrutiny of the IRD's tax digitalization and electronic invoicing initiatives, emphasizing the critical role of timely refunds for small and medium enterprises (SMEs) and the broader export sector.