- 20 Marks
ATP – Feb 2016 – L2 – Q1 – VAT Refund Procedure
Advise on procedure and conditions for a diamond company to claim VAT refund under Value Added Tax Act, 2013.
Question
(a). As a tax consultant, you have been contacted for tax advice by a diamond producing company, which has just began producing diamond in Tarkwa for both local and foreign markets. The Finance Director of the company has informed you that the company has accumulated excess (input) VAT to the tune of GHC8.56 million and would like to claim it from the Ghana Revenue Authority to boost the company’s cash flows from operations.
You are required to advise the company on the procedure and conditions that must be satisfied before the Ghana Revenue Authority may refund the excess VAT to the company under the Value Added Tax Act, 2013 (Act 870), as amended.
(b). Section 57 of the Value Added Tax Act, 2013 (Act 870), as amended has made provision for a designated account known as the Value Added Tax Refund Account.
You are required to identify the purpose/use of that account.
Find Related Questions by Tags, levels, etc.
- Tags: Ghana Revenue Authority, Refund Account, Tax Compliance, Value Added Tax Act, VAT
- Level: Level 2
- Topic: Indirect Taxes
- Series: FEB 2016
