Investor Presentaiton
Valued Added Tax and other Indirect Taxation
measure
K
Measure
Overview of measure
Implementation of efficient VAT refund system and further use of VAT bonds
Commentary
The Government must be commended for having heard the cry of the Business Community which, for a
number of years, had been complaining about the untimely settlement of VAT refunds which caused VAT to in
fact become part of the cost of doing business. The matter was largely remediated via the settlement of cash
refunds (extended to 5,010 small and medium enterprises). Further, the VAT refund bond scheme recently
initiated by the Government was well subscribed and allowed for the issuance of instruments covering VAT
refunds to 460 companies.
The Minister has not given much insight at this time into the specific measures that will make the VAT refund
system more efficient. Our recommendation would be to consider granting offsets of refunds against liabilities
after having conducted targeted, well structured and expeditious refund controls. It appears that the VAT bond
scheme will be used again in the future where appropriate. Its success this time around is likely to depend on
the country's economic trajectory and therefore the government's ability to maintain its credit rating.
What's Inside
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Territory Leader's message
Tax Leader's thoughts
Budget overview
Budget fundamentals - 2021
Historical economic data
Energy and energy related tax regime
Corporation tax
Value Added Tax & other indirect taxation
Personal Income tax
Stamp Duty
Summary of other measures
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About PwC
PwC | Trinidad and Tobago 2021 national budget
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