## VAT Refunds: A Review of Country Experience

_IMF Working Papers, November 1, 2005_

## Source details

**Canonical URL:** [VAT Refunds: A Review of Country Experience](https://www.imf.org/en/publications/wp/issues/2016/12/31/vat-refunds-a-review-of-country-experience-18646)

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## Bibliographic details
- Authors: Graham Harrison, Russell Krelove
- Published: November 1, 2005
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451862379.001

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### Summary and scope
- Examines refund approaches of tax administrations in 36 developing, transitional, and developed countries.
- Focuses on the invoice-credit form of value-added tax (VAT) where some businesses—notably exporters—pay more tax on purchases than is due on sales and can seek refunds of excess credits.
- Identifies the refund process as the "Achilles heel" of the VAT because of practical problems in refunding.

### Main problems identified
- Opportunities for fraud and corruption in the refund process.
- Denial of refunds by governments with cash shortages.
- Practical difficulties in implementing refunds despite straightforward principles in theory.

### Evaluation and analytical focus
- Evaluates the effectiveness of country approaches to VAT refunds.
- Considers compliance issues faced by countries during different stages of development.

### Conclusions and recommendations (as presented)
- Suggests a model of best practice for VAT refund procedures that takes into consideration compliance issues faced by countries during different stages of development.

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/vat-refunds-a-review-of-country-experience-18646_