Where tax is paid in error a taxpayer is allowed to apply for refund, the claim must be lodged 12 months from the date when VAT became due and payable
Where a person makes Zero rated supplies-In determining the amount due as a refund to a registered person who makes taxable supplies at both the general rate and zero rate, the Commissioner shall use the following formula.
Bad debt relief- When a supply is made but not payment is received, a claim for refund may be launched after lapse of 3 years from date of supply or when the debtor has become legally insolvent. Launch for refund must be made within 4 years from the date of supply. Where the bad debt is subsequently recovered, the registered person is required to refund the commissioner within 30 days of the recovery. An interest of two per cent per month or part thereof of the tax refunded shall forthwith be due and payable
