Mozambique Tax Authority hands out 4 of the 13 billion meticais requested in VAT refunds

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Mozambique Tax Authority hands out 4 of the 13 billion meticais requested in VAT refunds

2:03 CAT | 06 Feb 2020

Photo: Adérito Caldeira / A Verdade

The Mozambican Tax Authority (ATM) has not reimbursed all 731 value added tax (VAT) refunds requested, which amount to 13.2 billion meticais. Only 4.2 billion – in response to 395 claims – have been paid.

ATM spokesman Fernando Tinga revealed last week that the institution had received 731 requests for VAT refunds, amounting to 13.2 billion meticais. Of these, 463, amounting to 12.8 billion meticais, corresponded to the normal regime, and 268 (349.59 million) related to diplomats.

Tinga told reporters that “395 requests, amounting to 4.4 billion meticais, were paid” – 195 requests, amounting to 4.2 billion meticais, under the normal regime and 200 requests, corresponding to 202.45 million meticais, related to diplomats.

During the past year, the Tax Authority has processed 714 VAT refund request cases amounting to 19.8 billion meticais, of which 333 were from the 2019 financial year, and 381 from before then.

Regarding VAT refund cases in previous years, the Tax Authority revealed that it had handled 8,409 VAT refund requests in the total amount of 106.8 billion meticais. Of these, the Tax Authority had settled 424 requests, amounting to 10.4 billion meticais. The remainder were rejected, suspended or dismissed due to various irregularities.

A total 33 cases, worth 836.81 million meticais, are currently awaiting payment.

By 2017, the Mozambican government had accumulated several billion meticais in VAT reimbursement arrears. In 2018, it amortized 2.7 billion meticais of this amount, and ended the year owing 2.8 billion meticais to various economic agents.

The ATM source also revealed that 327 cases of VAT refund requests by diplomats were handled, amounting to 425.28 million meticais, 56 of these cases referring to previous years. Of these 300, cases worth 280.99 million meticais were paid, the remainder being rejected, suspended or dismissed due to various irregularities.

By Adérito Caldeira

Source: A Verdade