VAT Refunds

Value Added Tax (VAT) refunds occur when a business or individual pays VAT on purchases but is eligible to recover some or all of that tax from the government. This typically applies to businesses that buy goods or services for commercial purposes. If they have paid more VAT on their purchases than they have collected from sales, they can apply for a refund of the difference. Consumers may also receive VAT refunds when traveling abroad, particularly in countries that offer refund schemes for tourists. The process ensures that VAT does not become a cost burden for businesses or eligible individuals.