On 19 October 2012, the House of Representatives passed a law in relation to the payment of interest on refunds of input V.A.T of persons legal or physical subject to tax (P.S.T.).
P.S.T. who has applied for V.A.T tax refund and the repayment is delayed for more than four (4) months from the date of the application, will receive the refundable amount together with interest * calculated from the date of expiration of the four (4) month period.
The P.S.T. will be entitled to the refundable amount together with interest if the delay in repayment is not due to his/her fault, act or omission and the repayment is delayed for more than four (4) months from the date of the application.
In cases where a V.A.T investigation is required in relation to the submission of the application for a refund, the payback period is increased from four (4) to eight (8) months.
The relevant Law shall enter into force four (4) months after publication in the Gazette and it relates to tax periods after that date.
* The interest rate is currently 5%.