New measures will make payment of tax refunds swift and hassle free

The processing of VAT refund claims has been taking long due to the numerous claims lodged by the taxpayers as well as the verification process. [Courtesy]

Taxpayers registered for the Value Added Tax (VAT) obligation more often find themselves in a refund position during their transactions. A refund position, as the phrase suggests, means that the taxman owes a taxpayer some money.

A taxpayer could end up in a refund position because of many factors. The key and the most common factor that puts them in this position is excess input tax resulting from zero-rated supplies.