The Commissioner of VAT has invoked his powers under Section 19A to Appoint Exporters of goods and services who claim refund as Withholding VAT Agents with effect from 1st September, 2004.

All those persons who are in this category and who might not have applied for appointment as Withholding VAT Agents are reminded to do so immediately since their refund claims will not be processed. The Appointment covers all those refund claimants who are in refund situation due to being EXPORTERS OR SUPPLIERS OF GOODS AND SERVICES TO EXPORTERS .

Those appointed as Withholding VAT Agents will be expected to remit all the Tax Withheld to the Commissioner on the Monday following the week the VAT was withheld unless they have requested in writing and received written approval to vary this day.

The VAT will be withheld on all the payments made with effect from 1st September, 2004 regardless of the date of the supply.

The Withholding VAT Agents are reminded that under no circumstance should they offset the VAT Withheld against any refund claim lodged with the Department.

The suppliers of goods and services to the Withholding VAT Agents are also reminded that they will still be expected to continue filing their returns and making payments as provided under the VAT Act. Where any VAT has been Withheld, the registered person will be expected to reduce the tax liability in the next return upon receiving the VAT Withholding Certificate (VAT 32A) from Withholding Agent.