It can be difficult to forecast the value added tax (VAT) / goods and services tax (GST) funding requirements as you may not know how long it will take or how difficult it will be to get the refund from the tax authority, especially if you have no history in dealing with them and in many instances it is highly likely that you will be selected for audit.
Even mature businesses are often unsure whether delays in getting refunds for VAT/GST are because of an issue with the Tax Authority or in-efficiencies with their local management.
KPMG has just launched a VAT/GST Refund Survey which CFOs, Tax Directors, and Global & Regional GST Directors will find useful in assessing the risks and practical experience of getting refunds across 65 countries worldwide. It reports for residents and non-residents and assess the ease of getting a refund on a four point scale from Efficient – Somewhat efficient- Could be improved - No refund available.
Only 8 out of the World’s 20 largest economies were ranked efficient for resident taxpayers and that falls to 3 out of 20 for non-residents. The Asia Pacific region comes in well behind Europe, Middle East and Africa (EMA) but ahead of Latin America (LATAM). The most difficult territories in the region include Cambodia; China; India; Indonesia, Japan; Philippines; Sri Lanka; Taiwan; and Thailand.