To ease your site search, article categories are at bottom of page.

July 13, 2007

Ethiopian flower exporters unhappy over late tax refunds

Representatives of over twenty flower producing and exporting companies operating in Ethiopia have complained over unsettled reimbursement of value-added tax (VAT). They said their companies were unable to get paid VAT refunds in due time and in the full amounts from the government's revenue authority (FIRA) in accordance with regulations.

The regulation treats transactions destined for export at a zero rate VAT system, hence entitling exporters to a right to claim for a VAT refund upon presentation of the appropriate documents. Transactions for which exporters initially pay VAT and later claim for a refund should, however, be goods and services that directly serve as inputs for the goods or services to be exported, according to the regulation.

In order to apply for a VAT refund, an exporter has to be registered for a VAT, present a document assuring the goods or services claimed for a VAT reimbursement are exported, submit a VAT invoice paid for different expenses, and declare their monthly performance, among others.

Exporters who met the preconditions to claim for a VAT refund and apply for a reimbursement will, according to the regulation, get a response within two months. However, most of the representatives of the flower producers and exporters said FIRA had failed to reimburse their claims more than two months after the companies submitted applications for VAT refunds.

The representatives of the flower companies also said that the amount of VAT reimbursement the companies were refunded after "undue delay" was usually short of the sum their respective firms claimed for.

Responding to the complaints, FIRA's deputy general manager, Getachew Eshete, said some of the problems associated with VAT refund had to do with lack of awareness about the preconditions put in place for a claim to be eligible. He said there were two major reasons exporters may not be refunded on time. He said there were exporters who apply for a VAT reimbursement while they were not registered for VAT. He also noted that there are exporters who submit the refund application without declaring their monthly performance. Getachew, however, did not deny that his authority may have some limitations in serving customers and said the authority will to address them.

Ethiopian Reporter

Article Categories

AGRA agribusiness agrochemicals agroforestry aid Algeria aloe vera Angola aquaculture banana barley beans beef bees Benin biodiesel biodiversity biof biofuel biosafety biotechnology Botswana Brazil Burkina Faso Burundi CAADP Cameroon capacity building cashew cassava cattle Central African Republic cereals certification CGIAR Chad China CIMMYT climate change cocoa coffee COMESA commercial farming Congo Republic conservation agriculture cotton cow pea dairy desertification development disease diversification DRCongo drought ECOWAS Egypt Equatorial Guinea Ethiopia EU EUREPGAP events/meetings expo exports fa fair trade FAO fertilizer finance fisheries floods flowers food security fruit Gabon Gambia gender issues Ghana GM crops grain green revolution groundnuts Guinea Bissau Guinea Conakry HIV/AIDS honey hoodia horticulture hydroponics ICIPE ICRAF ICRISAT IFAD IITA imports India infrastructure innovation inputs investment irrigation Ivory Coast jatropha kenaf keny Kenya khat land deals land management land reform Lesotho Liberia Libya livestock macadamia Madagascar maiz maize Malawi Mali mango marijuana markets Mauritania Mauritius mechanization millet Morocco Mozambique mushroom Namibia NEPAD Niger Nigeria organic agriculture palm oil pastoralism pea pest control pesticides pineapple plantain policy issues potato poultry processing productivity Project pyrethrum rai rain reforestation research rice rivers rubber Rwanda SADC Sao Tome and Principe seed seeds Senegal sesame Seychelles shea butter Sierra Leone sisal soil erosion soil fertility Somalia sorghum South Africa South Sudan Southern Africa spices standards subsidies Sudan sugar sugar cane sustainable farming Swaziland sweet potato Tanzania tariffs tea tef tobacco Togo tomato trade training Tunisia Uganda UNCTAD urban farming value addition value-addition vanilla vegetables water management weeds West Africa wheat World Bank WTO yam Zambia Zanzibar zero tillage Zimbabwe

  © 2007 Africa News Network design by Ourblogtemplates.com

Back to TOP