If a company is in a repayment position because input tax exceeds output tax, it may opt to submit monthly VAT returns which could improve cash flow.

VAT returns usually cover three months. They are submitted depending on the category [economic activity group] to which each taxpayer belongs. There are three categories: Category A [taxpayers who submit tax returns for the following periods: 1/01-31/03, 1/04-30/06, 1/07-30/09 and 1/10-31/12 of each year], Category B (taxpayers who submit tax returns for the following periods: 1/02-30/04, 1/05-31/07, 1/08-31/10 and 1/11-31/01 of each year] and Category C [taxpayers who submit tax returns for the following periods: 1/03-31/05, 1/06-31/08,1/09-30/11 and 1/12-28/02 or 29/02 of each yea)].