The Inland Revenue Department (IRD) has announced the abolition of the Simplified Value Added Tax (SVAT) and the introduction of the Risk-Based Refund Scheme (RBRS).
Issuing a notice for registered persons for SVAT, the IRD states that the SVAT scheme will be abolished with effect from 01st October 2025 and will be replaced by the Risk-Based Refund Scheme.
According to the IRD, the RBRS scheme aims to facilitate timely and efficient VAT refunds for eligible exporters and projects. While refunds will be issued within 45 days, subject to conditions.
The IRD further states that refunds will be issued to eligible VAT registrants for taxable periods commencing on or after 01st October 2025, based on a risk-based rating system.
As such, eligible VAT registrants will be evaluated by being classified into three categories: low, medium, and high risk, to determine how refunds are processed.
Eligible VAT registrants for VAT refunds under the new scheme are exporters, projects, and suppliers to projects. (Newswire)
