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Payments & Refunds

What Am I To Do Now That I Have Collected The VAT?

 

Your VAT Account must be balanced at the end of the tax period which is the calendar month. This is done by adding all output VAT collected for the period, which must include all debit notes issued and all credit notes received to determine the total output tax. The same is done to calculate the input VAT by totalling all allowable input VAT for the period along with all debit notes received and credit notes.

Now that you have obtained your output and input VAT totals for the period, to determine the VAT payable or refundable you apply the VAT equation - Output VAT minus Input VAT.  If your output VAT is greater than your input VAT you are required to pay that difference to the Inland Revenue Department.  However, if your input VAT is more than your output VAT then you will end up with an excess credit. This excess credit will be carried forward for three (3) months as an input VAT deduction or until it is exhausted.   At the end of the three (3) months period if an excess credit still exists, you can apply to the Comptroller of Inland Revenue Department for a Refund by submitting a completed VAT Form 004.

The Inland Revenue Department will verify all refund request and issue refunds at the end of the following month if no audit is required. If your refund has been selected for an audit the refund will be paid within ten (10) days after the completion of the audit. 

The Comptroller can also utilize the excess credit to clear off any other tax liability that you may have.

Refund claims under $100 will not be refunded but carried forward to succeeding Tax Period and an Input VAT deduction.

Refund cheques are deposited directly to the business bank account number provided on your Registration Form.

For Example:

Output Tax                           $6,000.00
Debit Note Issued                  $   200.00
Credit Note Received              $   300.00
Total Output Tax                   $6,500.00

Input tax                             $3,000.00
Debit Note Received               $   500.00
Credit Note Issued                 $   300.00
Total Input Tax                     $3,800.00

VAT Equation              Output VAT- Input VAT
                                       $6,500.00 - $3800.00   = $2,700.00

 

Therefore, VAT payable is $2,700.00

 

A tax credit note or debit note will be issued where a tax invoice has been changed after it has been issued.

 

The credit note will be issued where the tax exceeds the amount shown on the tax invoice.

 

The debit note will be issued where the tax is less than the amount shown on the tax invoice.

Contact Us

St. Lucia Inland Revenue Department
VAT Section
Manoel Street
Castries
St. Lucia, W.I.

Tel: (758) 468 2800
Fax: (758) 452 4984
Email:
vatcoordinator@vat.gov.lc
vatinfo@vat.gov.lc

Useful Links

Inland Revenue Department  www.irdstlucia.gov.lc

 

Government of Saint Lucia  www.stlucia.gov.lc

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