3.

Excess input VAT simply means that the input VAT available as credit exceeds the output VAT, not
that the input VAT is excessively collected because it is more than what is legally due. The second VAT-
registered person, who is not legally liable for the input VAT, is the one who applies the input VAT as
credit for his own output VAT.

If the input VAT is "excessively" collected as understood under Section 229, then it is the first VAT-
registered person - the taxpayer who is legally liable and who is deemed to have legally paid for the input
VAT - who can ask for a tax refund or credit under Section 229 as an ordinary refund or credit outside of
the VAT System.

4. An invoice is a request or a bill for payment in a transaction. It is issued by the person selling the
goods and/or services or the vendor to the person buying these goods or services or the customer. A
receipt is basically an acknowledgement from the vendor to the customer stating that the payment has
been received. It is the customer’s proof that the payment has been made. It lists various bits of
information such as the vendor and customer names, price, taxes, discounts, mode of payment, date of
payment, receipt number, vendor’s signature and total amount payable.