Burundi changes VAT credit carry-forward and refund rules and makes VAT cash-based on supplies to the State

What changed in detail

The measure is in Burundi’s Finance Law for the 2026/2027 budget year, Loi n°1/10 of 30 June 2026, which entered into force on 1 July 2026 (article 277).

Article 101 of Burundi’s 2026/2027 Finance Law derogates from article 24 of the VAT law. A VAT credit position must be carried forward on the next return. Where each periodic return for three consecutive tax periods shows a credit, a refund request may be filed in the month following the third period if the credit reaches an amount set by the minister. A credit not claimed for refund in that month can no longer be carried forward. The minister may allow certain categories to claim refunds after each period. Article 101 preserves the taxpayer’s right to request a refund under article 33 of the VAT law.

Article 98 makes VAT chargeable on collection of the price for taxpayers supplying goods or services to the State.

Both provisions apply to the 2026/2027 budget year from 1 July 2026.

What it means

The refund window is a one-time choice: a credit that is not claimed in the month after the third period cannot be carried forward, so businesses with persistent credits must diarise that month. The refund threshold is set by the minister, so check it before relying on the route. For State suppliers, VAT is now due when payment is collected, not when invoiced, which eases cash flow where the State pays late.