(1) Where —
(a) the total amount of input tax deductible by a taxable person under section 30 for a tax period exceeds the person's output tax for that period; or
(b) the amount of tax paid by a person, other than in circumstances specified under paragraph (a), exceeds the amount properly charged to tax under this Act,
the amount of the excess is treated in the manner provided in this section.
(2) Except as provided in subsections (5), (14), and (16), the excess described in subsection (1)(a) is carried forward to the next tax period and treated as input tax deductible in that period.
(3) Subject to this section, if any of the excess referred to in subsection (1)(a) for a tax period remains after being carried forward and used as an input tax deductible in three consecutive tax periods, the taxable person may file with the Comptroller a claim for refund for the amount remaining, in the form and with the documentation specified by the Comptroller.
(4) By the end of the first calendar month following the date the claim for refund described in subsection (3) is filed or, where the Comptroller orders an audit of the claim for refund described in subsection (3), within 10 days after conclusion of the audit, if later, the Comptroller, to the extent satisfied that the taxpayer is entitled to the amount of the refund claimed —
(a) may apply the amount of the refund claimed under subsection (3) in reduction of any tax, levy, interest or penalty payable by the person in terms of this Act, other taxes collected by the Comptroller, and any unpaid amounts under the Acts repealed by section 111; and
(b) is required to refund any excess remaining to the taxable person.
(5) Where at least fifty per cent of the taxable supplies of a taxable person for the taxable period is taxed at a rate of zero per cent, and the person reports an excess under subsection (1)(a) for the tax period, the Comptroller may refund the taxpayer for the excess deductions attributable to the zero rated supplies by the end of the first calendar month following the period specified under section 37(1). (Substituted by Act 10 of 2012 and by Act 5 of 2016)
(6) By the end of the first calendar month following the month in which the claim for refund described in subsection (5) was received or, where the Comptroller orders an audit of the claim for refund described in subsection (5), within 10 working days after conclusion of the audit, if later, the Comptroller, to the extent satisfied that the taxpayer is entitled to the amount of the refund claimed —
(a) may apply the amount of the refund claimed under subsection (5) in reduction of any tax, levy, interest or penalty payable by the person in terms of this Act, other taxes collected by the Comptroller, and any unpaid amounts under the Acts repealed by section 111; and
(7) Notwithstanding subsections (4)(b) or (6)(b), if the amount of the excess to be refunded is not more than $100 the excess must be carried forward to the next succeeding tax period and must be accounted for as provided in section 30(1)(e).
(8) Where a person has overpaid tax in the circumstances specified under subsection (1)(b), the person may file with the Comptroller a claim for refund of the excess, accompanied by documentary proof of payment of the excess amount as specified by the Comptroller.
(9) For the purposes of subsection (8), if the claim for refund is filed by a taxable person —
(a) the Comptroller shall deal with the claim as if it were a claim under subsection (3); and
(b) to the extent that any output tax claimed to be refundable is an amount borne by a recipient who is not a registered person, the output tax is refundable only to the extent that it will be repaid by the taxable person to that recipient, whether in cash or as a credit against an amount owing to the taxable person by the recipient.
(10) Where a taxable person has failed to file a return for any tax period as required under this Act, the Comptroller may withhold payment of any amount refundable under this section until the taxable person files such return as required.
(11) A claim for a refund specified in subsection (3), (5) or (8) must be made within 3 years after the date the person has the right to apply for the refund under this section.
(12) The Comptroller is required to serve on a person claiming a refund, a notice in writing of the decision in respect of the claim within 30 calendar days of receiving the claim.
(13) A person claiming a refund under this section who is dissatisfied with a decision referred to in subsection (12) may challenge the decision under Part 9 of this Act.
(14) Notwithstanding anything in this section, the Comptroller may first apply the amount of any excess under subsection (1) in reduction of any tax, levy or interest payable by the person in terms of this Act, other taxes collected by the Comptroller under any other Acts, and any unpaid amounts under the Acts repealed by section 111.
(15) For the purpose of this section, subsection (1)(b) applies to a person entitled to a refund of tax under section 59(1) and (3).
(16) For the purposes of subsection (3), the Comptroller may, on the terms and conditions imposed, authorize a taxable person to file a claim for refund as if subsection (3) required the excess referred to in subsection (l)(a) to be carried forward and used as an input tax deductible in one instead of three consecutive tax periods. (Substituted by Act 10 of 2012)
(17) The Comptroller may make an authorization under subsection (18) only where —
(a) the taxable person has kept proper records;
(b) the taxable person has submitted regular and reliable tax returns;
(c) the taxable person has complied with all of his or her obligations under the laws relating to tax, including any laws relating to customs as required under this Act; and
(d) the taxable person has complied with all of his or her obligations under the Acts repealed by section 111.
(Substituted by Act 10 of 2012)
(18) A person shall not improperly claim a refund under subsection (3), (5) or (8). (Inserted by Act 10 of 2012)
(19) A person who contravenes subsection (16) commits an offence and is liable on summary conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 2 years or to both. (Inserted by Act 10 of 2012)