The Federal Inland Revenue Service (FIRS) has released Guidelines outlining the process for refunding Value Added Tax (VAT) payments made by Diplomats, Missions, and International Organizations (Qualified Persons) on goods and services. These Guidelines aim to provide a structured framework for handling VAT refund requests from such eligible entities.

Under these Guidelines, Diplomats, Diplomatic Missions, and International Organizations are entitled to a refund of VAT paid on purchases of goods or services. This entitlement is based on the principle that goods and services acquired by Diplomats are zero-rated for VAT purposes.

Eligible Parties and Refundable Transactions

The Guidelines specify the transactions that qualify for VAT refund, including VAT paid on goods and services bought or imported by Diplomats, Diplomatic Missions, and International Organizations. The eligible entities for applying for VAT refunds are Diplomats (foreign embassy/mission staff not below the rank of third secretary), Diplomatic Missions (Embassies and High Commissions), and International Organizations granted diplomatic immunities and privileges by the Minister of Foreign Affairs through an official Order published in a Federal Gazette under the Diplomatic Immunities and Privileges Act.

Refund Procedure

The Ministry of Foreign Affairs handles all communications with eligible Diplomats and Diplomatic Missions and collaborates with the FIRS during the refund process to ensure efficiency and transparency.

For International Organizations, the refund process differs slightly. All refund applications for goods purchased by International Organizations, which have been granted diplomatic immunities and privileges, must be submitted to the Executive Chairman of the Federal Inland Revenue Service (FIRS). To facilitate smooth refunds, the application must be accompanied by proper documentation.

In Conclusion

The VAT refund Guidelines represent a positive step that allows Diplomats and qualified International Organizations to utilize the privileges accorded to them due to their status. It will be interesting to observe how these Guidelines are implemented in the coming months.

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