VAT Reimbursement Workshop

(March 2011)

VAT Reimbursement Requirements

Reimbursement claims need to be submitted on a monthly basis Confirm the purchases (before VAT) are above the $500 de minimus amount in one invoice

Preparation of VAT Reimbursement Claim

1. Compile valid/legal invoices (originals and stamped copies needed) 2. Complete Partner Submission for VAT Refund form 3. Submit reimbursement claim package to USAID/Ethiopia

USAID/Ethiopias Procedures

1. Clearance by COTR/AOTR 2. Verification by VAT Clerk 3. Reimbursement claim stamped and signed by USAID authorized signatory 4. Reimbursement claim taken to ECRA

Collection of Original Invoices and Refund Check

1. Prepare Designation Letter 2. Collect VAT Refund Check original invoices from USAID/Ethiopia

Invoice Requirements

Invoices must be in the name of the organization requesting refund, it can be prime partner, sub-partner or subsub-partner Every partner should have a bank account, if you do not have please inform us the reason why

Invoice Requirements

On Cash/Credit Register Slip, either customer name & TIN number or customer TIN number should be printed Purchases should be done only in the name of organization requesting refund

Types of Tax Invoices

VAT Credit sales invoice with Cash Receipt/Cash Receipt Voucher VAT Cash Sales Invoice Credit register slip with Cash Sales Invoice Cash register slip with Cash Sales Attachment

Examples of Valid Invoices

VAT Credit Sales Invoice

Cash Receipt Voucher & Cash Voucher that show only total payment, VAT Credit Invoice has to be attached with these Receipts

VAT Cash Invoice that shows the VAT value

Credit Register Slip with no service description, attachment required.

0001234

Credit sales attachment, supporting doucment for credit register slip with no service description

Fiscal Invoice with Customer TIN Number

Customer TIN: 00013458

Examples of Invalid Invoices

Value Added Tax Invoice, the correct heading is Value Added Tax Cash Sales Invoice
TG General Contractor

Cash Register slip with no Customer name and TIN number

VAT Credit Sales Invoice with date & name modification,amount in words & cashier signature are missing

Invoice with missing and blurred data

VAT Payment request letter

Decorated Invoice, that doesnt have basic requirements for a valid invoice

Frequently encountered mistakes (missing items)

1. Stamp on copy of invoices, especially in the case of sub-partner claims, both prime partner's and sub-partner's stamp required. 2. Customer name on invoices. 3. Signature of cashier. 4. Amount in words. 5. Date and name modification is not acceptable.

Frequently encountered mistakes (missing items) 6. Make purchases only in the name of organization requesting refund, don't use project title. 7. Make sure that the data is clearly visible on copy invoices, as ERCA is referring the copy documents. 8. Heading of invoices should be VAT Cash Sales Invoice, Cash receipt or VAT Credit Sales Invoice, headings other than these are not acceptable by ERCA. 9. List down each invoices separately.

Frequently done mistakes (missing items) 10. If there is a credit invoice, use credit invoice date as a refund month on the "Partner Submission for VAT Refund". 12. Attach all supporting documents mentioned on Cash and Credit invoices. 13. Make sure the VAT calculation is correct on the Request Refund Form

Filling Out the VAT Refund Request Form

Please follow the guideline stated on VAT Refund Procedure

QUESTIONS ????