VAT Refund on residential building
Provision will be made for a VAT refund on a residential building, house or
apartment to be effected not later than 30 days from the date of receipt of all
documents in support of an application for refund instead of 30 days from the
date of receipt of the application.
One of the conditions to be eligible to make an application for VAT refund on
a residential building, house or apartment is that the cost should not exceed
Rs. 3 million. This will no longer be applicable and will be replaced by the condition
that the covered area constructed should not exceed 1,800 square feet.
Other VAT related measures
A list of all VAT-registered persons will be published on the website of the MRA to
avoid fraudulent practices. The list will be updated on a quarterly basis. The MRA
will be empowered to compulsorily register a person who is required by law to be
registered, or has been directed by the MRA to compulsorily register for VAT, but has
failed to do so
If a taxable person fails to submit a return, MRA will accordingly be empowered to
publish electronically, 3 months after the due date, the name and address of the
taxable person and his directors and the taxable period in respect of which the
return has not been submitted. However, the taxable person will be notified prior to
the publication.
In case an aggrieved person makes an objection against a decision of MRA but fails
to submit information, books or records requested by MRA within the required time
frame, MRA may determine that the objection has lapsed. Where an appeal is then
made to the ARC on this matter, these information, books or records will not be
allowed to be submitted before the Committee.
The MRA will come up with a roadmap by December 2022 for a phase-wise
implementation of the e-invoicing system. This system will allow the online recording,
authentication and monitoring of all invoices issued in the course of a business
activity
Source: mra.mu
