Refunds and Repayments
Statutory Basis: Value Added Tax Act, 2014 (as amended by the VAT (Amendment) (No. 2) Act, 2025), s. 56 and s. 56A
What statute says
Value Added Tax Act, 2014 (as amended by the VAT (Amendment) (No. 2) Act, 2025), s. 56 governs the carry-forward and refund treatment for excess credits, and s. 56A governs repayment of overpaid tax. Where refund conditions are not met, excess input VAT is usually carried forward to future periods rather than immediately repaid. The April 2026 unprepared-food provision (per VAT (Amendment) (No. 2) Act, 2025, s. 2) added new refund-eligibility logic for affected sellers.
If a prior relief or refund position changes (for example, later payment on a written-off debt), businesses may need to repay or reverse the benefit in a subsequent return.
What platform does
CoralLedger Comply tracks return-period net positions, supports refund eligibility analysis tied to current reform rules, and preserves history of claims and adjustments. The platform helps users understand whether a period result appears refundable or likely to carry forward.
Section 56A overpayment review
Section 56A is a separate route for VAT overpaid because the wrong rate was charged. Comply can surface the transaction evidence and the applicable overpayment amount for review. The result is an informational assessment: it does not itself establish entitlement, approve a claim, or submit anything to the Department of Inland Revenue. Confirm the statutory position, correct the customer charge where required, and make any prescribed claim through the official channel.
Related compliance dashboards highlight ratio-based thresholds and trend movement so teams can anticipate changes before filing.
Customer responsibility
You remain responsible for confirming legal eligibility for each refund claim and maintaining evidence required by the Department of Inland Revenue. If a repayment or reversal is required, customer teams must process it in the appropriate period and keep supporting notes.
For complex refund or repayment scenarios, validate treatment with your VAT advisor and then reflect that treatment consistently in Comply.