The Act has amended the VAT Act, 2013 to allow manufacturers who have made taxable supplies to official aid funded projects, as may be approved by the Cabinet Secretary for the National Treasury, to claim the associated input tax.
The amendment seeks to encourage manufacturers to make supplies to official aid funded projects by allowing them to claim input tax which they were previously not able to claim since the supplies are exempt and as such the suppliers were not entitled to claim related input VAT.
Source EY
