Three entities filed a writ application before the Court of Appeal today (01 Oct) challenging the Inland Revenue Department’s decision to abolish the Simplified Value Added Tax (SVAT).
The Inland Revenue Department recently announced that SVAT would be abolished and replaced with the Risk-Based Refund Scheme (RBRS), effective 01 October 2025.
According to the Free Trade Zone Manufacturers’ Association, the petitioners argue that the new policy was introduced without first operationalising the automated refund mechanism mandated by law.
The RBRS scheme is designed to facilitate timely VAT refunds, with refunds to be issued within 45 days depending on the taxpayer’s risk classification. Under the new system, eligible VAT registrants — including exporters, projects, and project suppliers — will be assessed and categorized as low, medium, or high risk, which will determine how refunds are processed.
Refunds will apply to taxable periods commencing on or after 01 October 2025.
