For non-residents with a place of business in Cape Verde, when input VAT exceeds the output VAT for a tax period, the excess may be carried forward to offset against future output VAT payable for a period of 12 months, after which if the amount of excess input VAT exceeds CVE 50,000 the taxpayer may apply for a refund.
However, VAT refund can be claimed before the end of 12 months if the taxpayer ceases its business activities and the amount of credit exceeds the fixed limit of CVE 250,000 and is subject to certain other conditions.
In addition, non-residents without a place of business in Cape Verde are eligible to claim a refund of input VAT under a special VAT refund regime. Under the regime, the period for which a VAT refund can be claimed is as follows:
- VAT refund can be claimed for a calendar year (12-month period) if the amount exceeds CVE 10,000;
- VAT refund can be claimed for a period of three or more immediately preceding months if the amount of refund exceeds CVE 50,000; and
- VAT refund can be claimed for any period ending 31 December of the immediately previous year, if the amount exceeds CVE 10,000.