The Cabinet Secretary for National Treasury in his Budget speech announced enactment of he long awaited VAT Regulations 2017. This, after thee first drafts were published in 2014.
The subsidiary legislation seeks to streamline the VAT Act with the Tax Procedures Act 2015 and will assist in interpretation and implementation of the VAT Act 2013. These regulations took effect from 4 April 2017.
A comparative study of Sales Tax Acts of the Provinces. The Constitutional Backing and issues involved. Also included are changes introduced through Finance Acts 2016 of the Provinces
This document provides information on Goods and Service Tax (GST) registration in India. It discusses that registration under GST can occur through migration of existing registrants or through fresh registration. It outlines who is required to register including individuals, companies, partnerships and other legal entities. Key advantages of registration are outlined such as being able to collect tax and claim input tax credits. Threshold limits for mandatory registration are provided based on aggregate annual turnover. Certain categories of persons must register irrespective of the turnover threshold. The registration process and features are described including use of PAN number and deemed approval within three days.
This document provides an overview of the Goods and Service Tax (GST) system that will be implemented in India. It states that GST is a destination-based tax on the consumption of goods and services. It will replace many existing taxes levied by the central and state governments. The document outlines the key features of GST, including what will be taxed, the types of GST (CGST, SGST, IGST), invoice requirements, input tax credit rules, registration requirements, and transitional provisions for existing taxpayers. It concludes by listing several actions businesses need to take to prepare for GST implementation, such as classifying items and updating vendor/customer information.
This document summarizes the key requirements for invoices under the Goods and Services Tax (GST) in India. It explains that tax invoices must be issued by regular GST dealers, while composition dealers issue bills of supply. A tax invoice must include information like the supplier/recipient names and GSTIN, invoice date and number, item details, tax rates and amounts. Tax invoices are issued in multiple copies depending on the recipient. Supplementary invoices and credit/debit notes are also discussed.
This document provides an overview of key concepts related to sales tax in Pakistan including definitions, scope, registration requirements, return filing, rates, invoices, records, input/output tax, refunds, appeals, and audits. Some key points:
- Sales tax applies to goods and certain services, as well as imports. Exempt items are listed in the Sixth Schedule.
- Registration is required for importers, wholesalers/distributors, manufacturers, retailers over a certain threshold, and others. Registration involves providing business details and obtaining a certificate.
- Returns must be filed monthly, quarterly, or annually depending on the taxpayer. Electronic filing is also available. Penalties apply for late filings
The govt. is trying to move towards ONE NATION ONE TAX- GOODS & SERVICE TAX. Through this presentation we have tried our best to give a clear insight about the biggest tax reform.
1. The document outlines the procedures for issuing tax invoices and maintaining electronic ledgers for payment of goods and service tax (GST) in India. It specifies that registered taxable persons must issue tax invoices before or after supplying goods or services and what information must be included. 2. It also describes how payment of GST is made through electronic cash and credit ledgers that are maintained on a central portal. Any tax, interest, penalties or other amounts are recorded in these ledgers. 3. Specified forms are used to maintain electronic records of tax liabilities, input tax credits, and deposits made in the cash ledger.
A comparative study of Sales Tax Acts of the Provinces. The Constitutional Backing and issues involved. Also included are changes introduced through Finance Acts 2016 of the Provinces
This document provides information on Goods and Service Tax (GST) registration in India. It discusses that registration under GST can occur through migration of existing registrants or through fresh registration. It outlines who is required to register including individuals, companies, partnerships and other legal entities. Key advantages of registration are outlined such as being able to collect tax and claim input tax credits. Threshold limits for mandatory registration are provided based on aggregate annual turnover. Certain categories of persons must register irrespective of the turnover threshold. The registration process and features are described including use of PAN number and deemed approval within three days.
This document provides an overview of the Goods and Service Tax (GST) system that will be implemented in India. It states that GST is a destination-based tax on the consumption of goods and services. It will replace many existing taxes levied by the central and state governments. The document outlines the key features of GST, including what will be taxed, the types of GST (CGST, SGST, IGST), invoice requirements, input tax credit rules, registration requirements, and transitional provisions for existing taxpayers. It concludes by listing several actions businesses need to take to prepare for GST implementation, such as classifying items and updating vendor/customer information.
This document summarizes the key requirements for invoices under the Goods and Services Tax (GST) in India. It explains that tax invoices must be issued by regular GST dealers, while composition dealers issue bills of supply. A tax invoice must include information like the supplier/recipient names and GSTIN, invoice date and number, item details, tax rates and amounts. Tax invoices are issued in multiple copies depending on the recipient. Supplementary invoices and credit/debit notes are also discussed.
This document provides an overview of key concepts related to sales tax in Pakistan including definitions, scope, registration requirements, return filing, rates, invoices, records, input/output tax, refunds, appeals, and audits. Some key points:
- Sales tax applies to goods and certain services, as well as imports. Exempt items are listed in the Sixth Schedule.
- Registration is required for importers, wholesalers/distributors, manufacturers, retailers over a certain threshold, and others. Registration involves providing business details and obtaining a certificate.
- Returns must be filed monthly, quarterly, or annually depending on the taxpayer. Electronic filing is also available. Penalties apply for late filings
The govt. is trying to move towards ONE NATION ONE TAX- GOODS & SERVICE TAX. Through this presentation we have tried our best to give a clear insight about the biggest tax reform.
1. The document outlines the procedures for issuing tax invoices and maintaining electronic ledgers for payment of goods and service tax (GST) in India. It specifies that registered taxable persons must issue tax invoices before or after supplying goods or services and what information must be included. 2. It also describes how payment of GST is made through electronic cash and credit ledgers that are maintained on a central portal. Any tax, interest, penalties or other amounts are recorded in these ledgers. 3. Specified forms are used to maintain electronic records of tax liabilities, input tax credits, and deposits made in the cash ledger.
This document discusses the accounting and record keeping requirements for Goods and Services Tax (GST) in India. It outlines that registered persons must maintain accounts and records including invoices, bills of supply, delivery challans, payment and refund vouchers. Records must include details of suppliers, customers, goods in transit and stock. Manufacturers and job contractors have additional record keeping for production, raw materials used, and works contracts. Transporters and warehouse operators must also maintain records of goods, consigners and consignees. The accounting structure captures tax on inputs and outputs separately. Transactions like advances, reverse charge and missing payments require specific documentation and tax treatment.
There are various problematic areas which will make the road of GST difficult for the assessees to ride upon. We have summarized some of the problems in the draft Model GST Law in this article.
This document discusses transitional provisions under the Goods and Services Tax (GST) in India. It summarizes that under GST, various central and state taxes will be subsumed. It outlines the taxes that will be replaced and transitional provisions that allow transition from existing laws to GST. It discusses GST registration procedures for existing taxpayers, availability of credits for taxes paid previously, and treatment of returns, capital goods and inventory during the transition period to GST.
- Value Added Tax (VAT) is calculated as the difference between tax paid on sales and tax paid/payable on purchases within West Bengal during a tax period. It provides a set-off for tax paid on inputs against tax payable on outputs.
- Under VAT, existing dealers and new dealers exceeding certain turnover thresholds must register and pay VAT. All registered dealers are given an 11-digit Taxpayer Identification Number (TIN).
- VAT rates range from 1% to 12.5% for most goods. Exports and sales to special economic zones are zero-rated while some goods are exempted. Dealers have options to pay compounded rates in some cases.
The document discusses key aspects of Pakistan's Sales Tax Act of 1990. It defines important terms like input tax, output tax, taxable supply, zero-rated supply, and exempt supply. It also explains the differences between zero-rated and exempt supplies. Furthermore, it provides an example to illustrate how sales tax is calculated at different stages of the supply chain from manufacturer to retailer to customer.
The Federal High Court, Lagos ("FHC") has revoked the decision of the Tax Appeal Tribunal ("TAT") in Gazprom Oil and Gas Nigeria Limited (Gazprom) v. Federal Inland Revenue Service (FIRS) relating to services which Gazprom received from a non-resident company. In Nigeria, the interpretation of destination and source principles of international taxation keeps swinging. Will there ever be an end?
Compilation of FTA Clarifications & User Guides by manoj agarwalManoj Agarwal
ebook is a compilation of all the Clarifications and User Guides issued by Federal TAx Authority "FTA" related with UAE VAT Law and Executive Regulations.
This document discusses Goods and Services Tax (GST) invoices and bills of supply in India. It provides details on the content requirements for tax invoices for goods and services, export invoices, bills of supply, transportation documents, and delivery challans. It also discusses HSN code requirements for invoices based on business turnover amounts. Invoices for goods must be prepared in triplicate and invoices for services must be prepared in duplicate. Transportation documents like delivery challans must contain details of the supplier, recipient, goods, tax amounts, and signatures.
A major challenge for the countries implementing VAT is to have the necessary adequate training, technical systems, financial and tax governance and compliance, and other areas in order to meet all requirements.
GST Alert 9 - E-Invoicing effective from 01.01.2021NiteshJain148
The document discusses India's introduction of electronic invoicing or e-invoicing requirements under the GST system. Key points include:
- E-invoicing will be mandatory for businesses with annual turnover above Rs. 500 Cr from October 2020 and above Rs. 100 Cr from January 2021.
- E-invoices must contain an Invoice Reference Number (IRN) and QR code generated from the Invoice Registration Portal (IRP). Invoices without these will not be valid.
- For B2C invoices above the turnover limits, a dynamic QR code must be generated instead of a full e-invoice. Compliance for QR codes has been extended to April 2021.
Correct Method
100
Cost Price
100
4)
4
VAT (4%)
4
Total
104
Total
104
Sales Price
120
Sales Price
120
Output VAT (4%)
4.8
Output VAT (4%)
4.8
Total
124.8
Total
124.8
1. The document discusses India's Value Added Tax (VAT) system, including definitions of key terms like input tax, output tax, and tax invoices. It also describes eligible and ineligible purchases for claiming input tax credit.
The document discusses the determination of value of supply under the Goods and Services Tax (GST) in India. It outlines that the transaction value is generally the price paid or payable and includes certain other payments. Exceptions to the transaction value are provided for related parties and discounts. Specific valuation rules are given for supplies without money consideration, related parties, and certain services like insurance. The key aspects covered are determining open market value, treatment of agents, and exclusions from value.
The document discusses Goods and Services Tax (GST) composition scheme in India, which provides a simplified tax structure for small taxpayers. Key points include:
1) The composition scheme is optional for taxpayers with annual turnover up to Rs. 50 lakhs and requires paying a flat rate of tax instead of filing regular returns.
2) Taxpayers in the composition scheme pay taxes quarterly at rates between 1-5% depending on the business and file simplified annual returns.
3) Businesses can exit the composition scheme if their turnover exceeds limits or if they are no longer eligible, and must then start filing regular returns and claiming input tax credits.
This document summarizes the key points around sales tax registration in Pakistan. It discusses who is required to register, the registration procedures, requirements for compulsory registration, procedures for changes in registration details, transfer of registration, and cancellation of multiple registrations. The key entities required to register are manufacturers, retailers, importers, wholesalers/distributors, and commercial exporters. Registration is obtained by applying online through the central registration office.
Since A is carrying out business activity of gold ornament designing in Bangalore by purchasing raw materials and stationery, he would require registration under Karnataka VAT. Even though his permanent place of business is in Delhi, since he is carrying out business activity in Karnataka, he needs Karnataka VAT registration.
Transitional provisions-under GST in Indiasanjay gupta
Coming July,1 2017 GST will be implemented in India. Transitional phase will be very painful for Registered dealers. This presentation deals with the Transitional provision under GST Act in India
The document summarizes key aspects of the GST electronic way bill (e-way bill) system in India. It explains that under GST, an e-way bill must be generated prior to transporting goods over Rs. 50,000 in value, and provides details on who can generate e-way bills, the information required, validity periods, documents that must be carried during transport, and procedures for inspection and verification of goods in transit. Unique e-way bill numbers are issued electronically on the common GST portal to the supplier, recipient, and transporter. E-way bills can generally be generated by suppliers, recipients, and transporters using the GST portal.
- VAT (Value Added Tax) is an indirect tax levied on sales made by dealers. It is a multi-point tax collected at every stage of sale. Dealers can deduct taxes paid on purchases from taxes payable on sales.
- VAT applies to the whole of Tamil Nadu and is levied by the state government. It was introduced in 2007 and contains 88 sections and seven schedules.
- Key advantages of VAT include reduced prices of goods due to elimination of tax cascading, a simpler system with fewer exemptions and rates, and lower tax burden reducing evasion.
- The document defines various VAT-related terms and outlines provisions regarding registration, returns, payments, exemptions, and
The document provides an overview of VAT implementation in the Gulf Cooperation Council (GCC) countries, with a focus on the United Arab Emirates (UAE). It notes that GCC countries are introducing VAT due to declining oil revenues. It then summarizes the key laws and regulations governing VAT in the UAE, including the unified VAT agreement, UAE VAT law, excise tax law, and tax procedures law. Finally, it outlines the basic features of how VAT is determined and administered under the UAE VAT law.
The document summarizes key aspects of India's proposed Goods and Services Tax (GST) model law. It outlines 18 essential features of the law, including that it will levy tax on the supply of goods and services, define taxable persons and businesses, determine the time and value of taxable supplies, provide for input tax credits, registration requirements, tax returns, payments, and transitional provisions for existing taxes. The model law aims to simplify India's tax regime by introducing uniform GST across states to replace existing indirect taxes.
This document discusses the accounting and record keeping requirements for Goods and Services Tax (GST) in India. It outlines that registered persons must maintain accounts and records including invoices, bills of supply, delivery challans, payment and refund vouchers. Records must include details of suppliers, customers, goods in transit and stock. Manufacturers and job contractors have additional record keeping for production, raw materials used, and works contracts. Transporters and warehouse operators must also maintain records of goods, consigners and consignees. The accounting structure captures tax on inputs and outputs separately. Transactions like advances, reverse charge and missing payments require specific documentation and tax treatment.
There are various problematic areas which will make the road of GST difficult for the assessees to ride upon. We have summarized some of the problems in the draft Model GST Law in this article.
This document discusses transitional provisions under the Goods and Services Tax (GST) in India. It summarizes that under GST, various central and state taxes will be subsumed. It outlines the taxes that will be replaced and transitional provisions that allow transition from existing laws to GST. It discusses GST registration procedures for existing taxpayers, availability of credits for taxes paid previously, and treatment of returns, capital goods and inventory during the transition period to GST.
- Value Added Tax (VAT) is calculated as the difference between tax paid on sales and tax paid/payable on purchases within West Bengal during a tax period. It provides a set-off for tax paid on inputs against tax payable on outputs.
- Under VAT, existing dealers and new dealers exceeding certain turnover thresholds must register and pay VAT. All registered dealers are given an 11-digit Taxpayer Identification Number (TIN).
- VAT rates range from 1% to 12.5% for most goods. Exports and sales to special economic zones are zero-rated while some goods are exempted. Dealers have options to pay compounded rates in some cases.
The document discusses key aspects of Pakistan's Sales Tax Act of 1990. It defines important terms like input tax, output tax, taxable supply, zero-rated supply, and exempt supply. It also explains the differences between zero-rated and exempt supplies. Furthermore, it provides an example to illustrate how sales tax is calculated at different stages of the supply chain from manufacturer to retailer to customer.
The Federal High Court, Lagos ("FHC") has revoked the decision of the Tax Appeal Tribunal ("TAT") in Gazprom Oil and Gas Nigeria Limited (Gazprom) v. Federal Inland Revenue Service (FIRS) relating to services which Gazprom received from a non-resident company. In Nigeria, the interpretation of destination and source principles of international taxation keeps swinging. Will there ever be an end?
Compilation of FTA Clarifications & User Guides by manoj agarwalManoj Agarwal
ebook is a compilation of all the Clarifications and User Guides issued by Federal TAx Authority "FTA" related with UAE VAT Law and Executive Regulations.
This document discusses Goods and Services Tax (GST) invoices and bills of supply in India. It provides details on the content requirements for tax invoices for goods and services, export invoices, bills of supply, transportation documents, and delivery challans. It also discusses HSN code requirements for invoices based on business turnover amounts. Invoices for goods must be prepared in triplicate and invoices for services must be prepared in duplicate. Transportation documents like delivery challans must contain details of the supplier, recipient, goods, tax amounts, and signatures.
A major challenge for the countries implementing VAT is to have the necessary adequate training, technical systems, financial and tax governance and compliance, and other areas in order to meet all requirements.
GST Alert 9 - E-Invoicing effective from 01.01.2021NiteshJain148
The document discusses India's introduction of electronic invoicing or e-invoicing requirements under the GST system. Key points include:
- E-invoicing will be mandatory for businesses with annual turnover above Rs. 500 Cr from October 2020 and above Rs. 100 Cr from January 2021.
- E-invoices must contain an Invoice Reference Number (IRN) and QR code generated from the Invoice Registration Portal (IRP). Invoices without these will not be valid.
- For B2C invoices above the turnover limits, a dynamic QR code must be generated instead of a full e-invoice. Compliance for QR codes has been extended to April 2021.
Correct Method
100
Cost Price
100
4)
4
VAT (4%)
4
Total
104
Total
104
Sales Price
120
Sales Price
120
Output VAT (4%)
4.8
Output VAT (4%)
4.8
Total
124.8
Total
124.8
1. The document discusses India's Value Added Tax (VAT) system, including definitions of key terms like input tax, output tax, and tax invoices. It also describes eligible and ineligible purchases for claiming input tax credit.
The document discusses the determination of value of supply under the Goods and Services Tax (GST) in India. It outlines that the transaction value is generally the price paid or payable and includes certain other payments. Exceptions to the transaction value are provided for related parties and discounts. Specific valuation rules are given for supplies without money consideration, related parties, and certain services like insurance. The key aspects covered are determining open market value, treatment of agents, and exclusions from value.
The document discusses Goods and Services Tax (GST) composition scheme in India, which provides a simplified tax structure for small taxpayers. Key points include:
1) The composition scheme is optional for taxpayers with annual turnover up to Rs. 50 lakhs and requires paying a flat rate of tax instead of filing regular returns.
2) Taxpayers in the composition scheme pay taxes quarterly at rates between 1-5% depending on the business and file simplified annual returns.
3) Businesses can exit the composition scheme if their turnover exceeds limits or if they are no longer eligible, and must then start filing regular returns and claiming input tax credits.
This document summarizes the key points around sales tax registration in Pakistan. It discusses who is required to register, the registration procedures, requirements for compulsory registration, procedures for changes in registration details, transfer of registration, and cancellation of multiple registrations. The key entities required to register are manufacturers, retailers, importers, wholesalers/distributors, and commercial exporters. Registration is obtained by applying online through the central registration office.
Since A is carrying out business activity of gold ornament designing in Bangalore by purchasing raw materials and stationery, he would require registration under Karnataka VAT. Even though his permanent place of business is in Delhi, since he is carrying out business activity in Karnataka, he needs Karnataka VAT registration.
Transitional provisions-under GST in Indiasanjay gupta
Coming July,1 2017 GST will be implemented in India. Transitional phase will be very painful for Registered dealers. This presentation deals with the Transitional provision under GST Act in India
The document summarizes key aspects of the GST electronic way bill (e-way bill) system in India. It explains that under GST, an e-way bill must be generated prior to transporting goods over Rs. 50,000 in value, and provides details on who can generate e-way bills, the information required, validity periods, documents that must be carried during transport, and procedures for inspection and verification of goods in transit. Unique e-way bill numbers are issued electronically on the common GST portal to the supplier, recipient, and transporter. E-way bills can generally be generated by suppliers, recipients, and transporters using the GST portal.
- VAT (Value Added Tax) is an indirect tax levied on sales made by dealers. It is a multi-point tax collected at every stage of sale. Dealers can deduct taxes paid on purchases from taxes payable on sales.
- VAT applies to the whole of Tamil Nadu and is levied by the state government. It was introduced in 2007 and contains 88 sections and seven schedules.
- Key advantages of VAT include reduced prices of goods due to elimination of tax cascading, a simpler system with fewer exemptions and rates, and lower tax burden reducing evasion.
- The document defines various VAT-related terms and outlines provisions regarding registration, returns, payments, exemptions, and
The document provides an overview of VAT implementation in the Gulf Cooperation Council (GCC) countries, with a focus on the United Arab Emirates (UAE). It notes that GCC countries are introducing VAT due to declining oil revenues. It then summarizes the key laws and regulations governing VAT in the UAE, including the unified VAT agreement, UAE VAT law, excise tax law, and tax procedures law. Finally, it outlines the basic features of how VAT is determined and administered under the UAE VAT law.
The document summarizes key aspects of India's proposed Goods and Services Tax (GST) model law. It outlines 18 essential features of the law, including that it will levy tax on the supply of goods and services, define taxable persons and businesses, determine the time and value of taxable supplies, provide for input tax credits, registration requirements, tax returns, payments, and transitional provisions for existing taxes. The model law aims to simplify India's tax regime by introducing uniform GST across states to replace existing indirect taxes.
The document provides an overview of VAT principles and implementation lessons from Saudi Arabia and the UAE that will be relevant for Bahrain's upcoming VAT legislation. It discusses key aspects of VAT like definitions, principles, place of supply, exemptions and time of supply. The document also summarizes that mandatory zero-rated supplies under the GCC VAT Framework Treaty include medicines, exports and cross-border transportation, while exemptions are at the discretion of each country. Lessons from KSA and UAE implementation will help businesses understand what to expect in Bahrain's legislation.
A tax invoice is a document that must be issued by a VAT-registered supplier when making a taxable supply of goods or services. It provides details of the supply and must be issued within 14 days. A tax invoice must contain information such as the supplier and recipient names/addresses/TRN, supply details and amounts, and state that it is a "Tax Invoice". In some cases, the recipient can issue a buyer-created tax invoice or an agent can issue one on behalf of the principal supplier. A tax credit note can also be issued to correct errors in a previous tax invoice.
Foreign organizations and individuals selling goods in Vietnam through local agents or distributors are subject to Vietnamese tax, specifically value added tax (VAT) and enterprise income tax (CIT). Agents are responsible for declaring and paying these taxes on behalf of foreign merchants by withholding the appropriate amounts from payments to the merchants. The tax implications for foreign sellers have become clearer with legal developments and guidance from Circular No. 60, enabling them to plan sales to Vietnam in a more predictable manner while understanding their potential tax liabilities and options for tax payment methods.
The document provides information about input tax credit (ITC) under the Goods and Services Tax (GST) system in India. Some key points:
1. ITC allows businesses to offset taxes paid on inputs against output tax liability. It is claimed on goods, capital goods, and services used for business purposes.
2. There are conditions for claiming ITC, such as possessing valid documents and ensuring taxes are paid. ITC must also be adjusted if related outputs are exempt.
3. Not all purchases are eligible for ITC, such as most motor vehicles, food/beverages, health services, and property construction. Transition provisions allow ITC for stock under certain conditions.
Under UAE VAT legislation, detailed tax invoices are to be issued by VAT-registrants for assessable goods or services supplied to other VAT-registered businesses. This is provided that the provisions surpass Dhs10,000. A detailed VAT invoice is often for merchants and wholesalers managing higher amounts of taxable supplies.
A VAT invoice in the UAE must contain this information in English/Arabic:
A unique invoice number (sequential, for identification purposes)
The date on which a tax invoice was issued, plus the date of supply (if they’re different)
Legal name, tax registration number, and address of the taxable person
Legal name, tax identification number, and address of the customer
Description, quantity, and type of sold goods or description of provided services
To unite price for goods/services goods, excluding the VAT charge
Rebates or discounts provided (not added in good/service’s unit price)
Total VAT amount payable (must be in AED)
Method for calculating the profit margin
Method for calculating VAT (standard, exemption, or zero rates)
The label “Tax Invoice” presented visibly on the tax document
The Indian Taxation structure has witnessed many reforms since inception. The current taxation system streamlines two broad categorizations viz: Direct Taxation and Indirect Taxation. Among the two, Indirect Taxation has always been a matter of deportment because of the series of taxes involved therein such as Excise Duty, Service Tax, Value Added Tax, etc. Also these taxes have been divided into two subdivisions on the basis of the authority of levy viz: State Levy and Central Levy. This further creates a confusion and situation of ambiguity among the people. Further, implication of such taxes has somewhere lead to distortionary and cascading effect i.e. leviability of tax on tax, which eventually has been hard hitting on the pockets of the final consumers.
Considering all these facts and circumstances, the Government of India has finally made a move in the direction of substituting 17 indirect taxes into one Indirect Tax known as The Goods and Services Tax commonly known as GST. The GST structure has been designed and modeled as a value added tax, which will be levied on each stage of a transaction as the supply moves from one level to another. The tax paid at one level will subsequently be allowed as credit on another level.
The purpose of this chapter is to outline the guidance surrounding the requirement to issue a tax invoice. A tax invoice is a written paper or electronic document which records the details of a taxable supply which has been made. The issue of a valid tax invoice is important for suppliers as it may be used to dictate the date of supply, and therefore determines the tax period in which the output tax should be accounted for.
The receipt of a valid tax invoice is important for recipients of supplies as it is the primary documentary evidence used to support the recovery of VAT incurred as input tax.
Under UAE VAT legislation, detailed tax invoices are to be issued by VAT-registrants for assessable goods or services supplied to other VAT-registered businesses. This is provided that the provisions surpass Dhs10,000. A detailed VAT invoice is often for merchants and wholesalers managing higher amounts of taxable supplies.
A VAT invoice in the UAE must contain this information in English/Arabic:
A unique invoice number (sequential, for identification purposes)
The date on which a tax invoice was issued, plus the date of supply (if they’re different)
Legal name, tax registration number, and address of the taxable person
Legal name, tax identification number, and address of the customer
Description, quantity, and type of sold goods or description of provided services
To unite price for goods/services goods, excluding the VAT charge
Rebates or discounts provided (not added in good/service’s unit price)
Total VAT amount payable (must be in AED)
Method for calculating the profit margin
Method for calculating VAT (standard, exemption, or zero rates)
The label “Tax Invoice” presented visibly on the tax document
The document discusses key aspects of the GST framework including the taxable event, meaning of supply, exclusions, and exemptions.
1) Under GST, the single taxable event of "supply" replaces multiple taxable events such as manufacture, provision of service, and sale that were prevalent in earlier indirect tax regimes.
2) The definition of "supply" is very broad and inclusive, intended to expand the scope of taxation. It includes various transactions like barter, imports, supplies without consideration. This broad definition may lead to unintended taxation and litigation.
3) The document examines exclusions from the definition of "taxable person" as well as the power of the central and state governments to
Serbia: Tax Alert - Amendments of Serbian Tax Laws (Dec 2017)Alex Baulf
On 14 December 2017, the Serbian Parliament adopted amendments to the VAT Law, which were published in the Official Gazette of the Republic of Serbia No.113/2017.
The adopted amendments will go into force on January 1 2018, with exception of certain provisions for which it is particularly emphasized.
On 14 December 2017, the Serbian Parliament adopted amendments to the Corporate Income Tax Law, which were published in the Official Gazette of the Republic of Serbia No.113/2017.
The adopted amendments will go into force on January 1 2018, with exception of provisions regulating withholding taxation. The majority of provisions shall be applied starting from the filing of tax return for 2018.
Please see a high level overview of these changes in the Tax Alert from Grant Thornton Serbia.
Tax can be confusing. At the basic, there is Percentage Tax or Value Added Tax; VAT registered and a Non-VAT registered tax payer. In the Philippines, managing tax matters can be really complicated. Several individuals and companies even hire Consultants/Accounting Firms to manage compliance reporting.
This document provides an overview of input tax credit (ITC) under the Goods and Services Tax (GST) regime in India. It defines key terms related to ITC such as input, capital goods, input tax, output tax, and reverse charge. It outlines the conditions for claiming ITC and lists items for which ITC is ineligible. It also discusses proportionate credit, adjustments to ITC, transition provisions for claiming ITC on stock, and the process for claiming ITC on inter-state and intra-state supplies.
This document discusses GST registration requirements in India. It provides three key points:
1. Every supplier that makes taxable supplies above an annual turnover threshold of 20 lakh rupees must register for GST. Registration allows suppliers to legally conduct business, claim input tax credits, and pass credits to customers.
2. The place of registration is the state where taxable supplies are ordinarily made. Suppliers must display their registration certificate and GST identification number at all business locations.
3. Certain categories of suppliers like those making inter-state supplies must compulsorily register regardless of turnover, including casual taxable persons, suppliers under reverse charge, and non-resident taxable persons.
The document discusses value added tax (VAT) on imported goods and services in Tanzania. It provides examples of calculating the taxable value for VAT purposes on imported goods, which includes the cost of goods plus any insurance, freight, import duty, and excise duty paid. It also covers payment/collection of VAT on imports. The document outlines rules for claiming input tax credits, including conditions and exceptions. It describes methods (standard and attribution) for calculating partial input tax credits for businesses making both taxable and exempt supplies.
This document summarizes VAT regulations for proper invoice writing in Germany. It provides details on the required and optional information that must be included on invoices, such as supplier and recipient information, invoice numbers, dates, tax rates, and breakdown of items. It also covers special cases like intra-Community deliveries and minimum amount invoices. Recipients are advised to check invoices for completeness to ensure VAT deductions can be claimed.
With VAT implementation taking effect in under six months, the Ministry of Finance have now provided further clarification of the rules which will be imposed in respect of VAT within the UAE, furthermore we have seen updates across Saudi Arabia recently, with announcements being made in respect of the registration process. This short alert from Grant Thornton UAE summarises the recent clarifications which the UAE have announced, alongside the registration elements required within Saudi Arabia.
This document provides an overview of the Goods and Services Tax (GST) system in India. It explains that GST aims to create a unified indirect tax system and reduce the overall tax burden. It describes how GST is levied on the supply of goods and services across India, with Central GST, State GST, and Integrated GST applying depending on the nature of the supply. Threshold limits for registration and key tax rates are also outlined. Administrative responsibilities under GST are shared between central and state governments.
Bahrain: Phased roll out of VAT in BahrainAlex Baulf
The National Bureau of Taxation, operating under the Ministry of Finance, conducted their first VAT briefing session on 3rd December 2018 which was attended by several accounting firms. MOF presented the way forward on VAT implementation and addressed several concerns raised during the meeting. In light of this discussion, Grant Thornton Bahrain's VAT team has set out the key takeaways in the attached Alert.
UK: VAT alert - Government publicises VAT changes if there is “no-deal” on B...Alex Baulf
Not that it is expecting a ‘no-deal’ scenario – the UK Government has specifically emphasised that it fully expects the opposite - but, just in case, it has announced a number of measures relating to UK VAT should agreement between the EU and the UK not materialise.
The Government considers that it is progressing well in its negotiations with the EU on the terms of Britain’s exit. However, rightly, it recognises that it is always possible that agreement will not be reached. As a consequence, it has made announcements in relation to VAT in the event of a so-called Brexit ‘no-deal’.
UK businesses – especially those that trade with businesses in other Member States of the EU have had concerns on a number of fronts, not least how the UK VAT system will work after Brexit and what changes will be needed in relation to import and export procedures.
The announcements made by the Government should help businesses to prepare for a ‘no-deal’ Brexit with a little more certainty. In line with the Government, businesses should not assume that an agreement will be reached. Businesses should be prepared for a ‘no-deal’ scenario even though that may not come to fruition.
The Court of Appeal upheld previous rulings that an employment agency, Adecco, was liable to pay VAT on the full value of supplies of temporary staffing services to clients, not just administrative fees. Adecco argued it only exerted limited control over temporary workers and was not their employer, but the Court found the contractual arrangements and services provided to clients were effectively the same regardless of worker classification. This clarifies that employment agencies must pay VAT on total fees charged for staffing services unless workers contract directly with clients. The decision impacts how agencies structure operations and could increase costs passed to clients.
The First Tier Tribunal (FTT) has released its decision in the case of The Rank Group plc (Rank). Rank operated 3 types of automated gambling machine: Fixed Odds Betting Terminals (FOBT), section 16/21 and section 31/34 machines. The issue for the FTT to consider was whether the machines were ‘similar’. If so, treating them differently for VAT purposes would offend the principle of neutrality. The CJEU had previously held that the machines in question fell within the same category (broadly referred to as slot machines). However, it was for the UK court to decide whether the machines in question were ‘similar’. If so, treating the income from such machines differently for VAT purposes would be considered to offend the principle of fiscal neutrality. The FTT determined that the correct test was to examine the betting experience from the perspective of the user. Would the user’s needs be equally met whichever machine was selected? In examining the evidence, the FTT concluded that the user experience was substantially similar and that users would select machines for a variety of reasons, often playing machines interchangeably. On the basis that such factors as machine location, atmosphere, opening hours and availability were specifically stated by the CJEU to be disregarded in this context, the FTT concluded that the machines were similar. Accordingly, the principle of fiscal neutrality was offended. Rank’s appeal allowed.
The Court of Appeal has issued a unanimous judgment in the appeal by Zipvit Ltd (Zipvit) against the judgment of the Upper Tribunal. Zipvit, like many other businesses, contracted with Royal Mail to supply delivery services. At the relevant time, these services were treated by Royal Mail, Zipvit and HMRC as being exempt from VAT under the UK’s implementation of the ‘postal services’ exemption.
However, following the Court of Justice judgment in the ‘TNT’ case in 2009 (which ruled that VAT exemption only applied to universal postal services), it became clear to all parties (including HMRC) that the mailmedia service provided by Royal Mail should have been liable to VAT at the standard rate.
On that basis, Zipvit submitted a claim for a refund of the input VAT purportedly included in the price it had paid to Royal Mail. HMRC rejected that claim and Zipvit appealed to the First-tier Tax Tribunal (FTT). The FTT dismissed the appeal as did the Upper Tribunal.
Now, the Court of Appeal has dismissed Zipvit’s appeal. The judgment issued on 30 June 2018 dismisses the appeal on the basis that Zipvit had no valid VAT invoice to support its claim. A fact regarded as a fatal flaw.
This case - a referral to the Court of Justice by the French court - delivers the judgment of the European Court with regard to the recovery of input VAT on expenditure incurred by Marle Participations SARL (‘Marle’). The company sought to recover input VAT on expenditure incurred on expenses relating to a corporate restructure. The tax authorities denied input VAT recovery on the grounds that the expenditure related to activities that were capital in nature and so fell outside the scope of VAT (thereby precluding VAT recovery). Marle argued that the letting of property by the holding company to a subsidiary amounted to ‘involvement in the management’ of the subsidiary. This involvement constituted an ‘economic activity’ so enabling VAT to be recovered on the restructuring costs.
The Court has ruled that the letting of property to its subsidiary amounted to ‘involvement in the management’ of that subsidiary. As such it constituted an ‘economic activity’ carrying the right, in principle, to input VAT recovery. Such input VAT recovery was to be regarded as general expenditure of Marle (and therefore subject to the normal rules governing VAT recovery). Providing the letting services were supplied by Marle on a continuing basis, for consideration, the services were taxable and Marl could demonstrate a direct link between those services to its subsidiary and the consideration it received, input VAT could be deducted in full.
International Indirect Tax - Global VAT/GST update (June 2018)Alex Baulf
High level slides from Grant Thornton's VAT Club seminar in London held in June 2018.
Topics covered include:
ECJ decision - C-580/16 Hans Bühler - Triangulation
Netherlands - VAT rate change
Russia - VAT rate change
Bahamas - VAT rate change
Angola - New VAT system
Liberia - New VAT system
Costa Rica - New VAT system
Costa Rica - e-invoicing requirements
Hungary - Electronic Invoicing
Italy - Mandatory e-invoicing
Australia - GST on hotel accommodation
Poland - VAT split payments
Spain - First penalties in relation to SII
Greece - SAF-T & E-Invoicing?
Argentina - VAT on digital services
Columbia VAT on digital services
Canada - Quebec: New QST obligations for non-resident suppliers of digital services
USA: Wayfair – the Decision
India - “Happy Birthday GST" - what's next
New Zealand - Low value consignment relief
Malaysia - GST to 0% and transition to SST
United Arab Emirates - Exchange Rates for VAT purposes
Kuwait - VAT postponed until 2021?
GCC - Bahrain, Oman, Qatar VAT implementation latest
The Spanish tax authorities have begun imposing penalties for non-compliance with Immediate Supply of Information (ISI) VAT reporting requirements, now that the legal framework for penalties is in place. Approximately 1,300 companies, or 2% of those required to comply, have not yet implemented ISI. Penalties include fines of 1% of annual turnover for complete non-compliance, 0.5% of invoices for late reporting, and €150 per unreported transaction. Authorities will also fine inaccurate, omitted, or false reporting by 1% of the erroneous amounts, with a minimum of €150 and maximum of €6,000.
On May 3, 2018, Georgia Governor Nathan Deal signed H.B. 61 enacting significant changes to sales and use tax laws, including imposing a bright-line nexus rule on certain sellers of tangible personal property. Effective January 1, 2019, any seller that conducts 200 or more separate retail sales of tangible personal property for Georgia delivery or obtains more than $250,000 in gross revenue from such sales is considered a dealer that must either register to collect and remit sales tax or notify customers of use tax obligations and report to the state that such requirements have been fulfilled.
U.S. Supreme Court Holds Hearing in South Dakota v. WayfairAlex Baulf
1. The US Supreme Court heard oral arguments in South Dakota v. Wayfair, a case that could overturn the physical presence standard for sales tax nexus established in Quill v. North Dakota.
2. Several Justices appeared open to eliminating the physical presence rule, while others emphasized upholding precedent or suggested having Congress address the issue.
3. The hearing reflected deep divisions and uncertainty among the Justices, with the outcome difficult to predict. The Court's decision later this year may not provide a clear consensus.
The document summarizes new rules and guidance issued in China related to taxation. It discusses a circular that defers withholding tax on dividends paid to foreign investors if they are reinvested in China. It also summarizes new enterprise income tax return forms issued by the State Administration of Taxation and guidance clarifying value-added tax issues arising from VAT reforms. Finally, it discusses a public notice that provides further clarification on determining "beneficial ownership" in tax treaties.
International Indirect Tax - Global VAT/GST update (March 2018)Alex Baulf
These are the slides from the International Indirect Tax - Global VAT/GST update presented at Grant Thornton's VAT Club held in London on 9th March 2018.
The topics discussed include:
EU
• Bulgarian Presidency
• VAT Action Plan – proposal for a Definitive VAT System based on destination principle
• Customs: Binding Valuation Information (BVI)
• Considerations for using TP for Customs value
• Hungary: Electronic Invoicing
• Spain: SII 1.1 new version
• Italy: Simplifications to “Communications of data of invoices issued and received”
• Italy: Mandatory e-invoicing?
EMEA
• South Africa: VAT rate increase
• GCC – where are we?
• UAE: What's been released ? What's missing? Designated Zones
NOAM
• USA: Landmark sales tax nexus case to be heard in Supreme Court
APAC
• India: GST update
• China: Further VAT reform
• Malaysia: GST Compliance Assurance Program (MyGCAP)
• Singapore: Future GST rate increase / reverse charge
• Australia: Final guidance published for online retailers - GST on low value imported goods
This publication has been prepared only as a high level guide. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material in this publication.
China: Tax Bulletin-Latest update on VAT RegulationsAlex Baulf
Subsequent to Grant Thornton China's last update in July 2017, this VAT Alert summarizes some of the further significant changes on VAT regulations for your reference.
- Revision of the “Provisional Regulations of the People's Republic of China on Value-added Tax” (Referred to as “VAT regulation revision 2017“)
- Clarification on Input VAT Issues
- VAT regulations on specified financial products
- Changes on VAT invoices
- Simplified tax administration on registration of general VAT payers
India: Recommendations from GST Council in 25th meeting Alex Baulf
The GST council in its 25th council meeting held on 18 January 2018 in New Delhi, recommended various changes to the GST law. The changes, inter alia, include revision of rates applicable to certain goods/services, introduction of exemptions, and rationalisation of various existing exemptions etc.
USA: NY - New York Appellate Division Holds Certain Data Information Services...Alex Baulf
The New York Supreme Court, Appellate Division has held that the competitive price reports purchased by a supermarket retailer were considered to be information services that qualified for a statutory exclusion from sales tax. The Court concluded that the information services were excluded from sales tax because the information was personal or individual in nature and was not substantially incorporated into reports of others.
UK: Briefing Paper - Are you ready for Making Tax Digital? Alex Baulf
The UK government is going ahead with its Making Tax Digital (“MTD”) programme, starting with VAT-registered taxpayers. From 1 April 2019, businesses with a turnover above the VAT registration threshold will be required to keep specified minimum records in the VAT account and to submit the current nine- box VAT return to HMRC via Application Program Interface (“API”) software (linking either the accounting system or excel spreadsheets to the HMRC system).
The document lists the names of people working on a project from June 2017 to October 2017. It includes 3 project leaders - 包孝先, 吴江娇, and 杨颖. Other contributors were 周自吉, 张斌, and 徐瑛. The document provides an inventory of staff involved in the project during this time period but does not include any other details.
Cyprus: VAT Alert - VAT on building land, leasing of commercial immovable pro...Alex Baulf
Following much anticipation and speculation the Cyprus Parliament has enacted far reaching amendments to the Cyprus VAT Law on 3/11/2017 which impact transactions related to immovable property. The amending legislation (N157(1) of 2017) was published in the Official Gazette of the Republic of Cyprus on 13/11/2017.
• A significant part of the aforementioned changes involve the imposition of VAT on the supply of land. These amendments to the Cyprus VAT Law were a condition of Cyprus’ accession to the EU in 1/5/2004 for which a derogation was secured until 31/12/2007. Their enactment brings Cyprus in line with the obligations undertaken within this scope.
Saudi Arabia - VAT Frequently Asked QuestionsAlex Baulf
The document provides frequently asked questions about Saudi Arabia's VAT system. It discusses VAT eligibility and registration processes, including registration thresholds, group registrations, and mandatory vs voluntary registration. It also covers VAT procedures such as return filing frequencies, invoice requirements, record keeping obligations, and interactions with other governmental entities.
Germany VAT Alert: Call-Off stock - Changes in VAT treatment in GermanyAlex Baulf
The German VAT law does not contain any simplification for supplies via consignment stocks/ call-off stocks in Germany. However, due to the recent jurisdiction of the German Federal Tax Court, the German tax authorities have changed their approach in single cases in relation to call-off stocks.
Discovering Delhi - India's Cultural Capital.pptxcosmo-soil
Delhi, the heartbeat of India, offers a rich blend of history, culture, and modernity. From iconic landmarks like the Red Fort to bustling commercial hubs and vibrant culinary scenes, Delhi's real estate landscape is dynamic and diverse. Discover the essence of India's capital, where tradition meets innovation.
“Amidst Tempered Optimism” Main economic trends in May 2024 based on the results of the New Monthly Enterprises Survey, #NRES
On 12 June 2024 the Institute for Economic Research and Policy Consulting (IER) held an online event “Economic Trends from a Business Perspective (May 2024)”.
During the event, the results of the 25-th monthly survey of business executives “Ukrainian Business during the war”, which was conducted in May 2024, were presented.
The field stage of the 25-th wave lasted from May 20 to May 31, 2024. In May, 532 companies were surveyed.
The enterprise managers compared the work results in May 2024 with April, assessed the indicators at the time of the survey (May 2024), and gave forecasts for the next two, three, or six months, depending on the question. In certain issues (where indicated), the work results were compared with the pre-war period (before February 24, 2022).
✅ More survey results in the presentation.
✅ Video presentation: https://youtu.be/4ZvsSKd1MzE
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
Explore the world of investments with an in-depth comparison of the stock market and real estate. Understand their fundamentals, risks, returns, and diversification strategies to make informed financial decisions that align with your goals.
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
The Rise and Fall of Ponzi Schemes in America.pptxDiana Rose
Ponzi schemes, a notorious form of financial fraud, have plagued America’s investment landscape for decades. Named after Charles Ponzi, who orchestrated one of the most infamous schemes in the early 20th century, these fraudulent operations promise high returns with little or no risk, only to collapse and leave investors with significant losses. This article explores the nature of Ponzi schemes, notable cases in American history, their impact on victims, and measures to prevent falling prey to such scams.
Understanding Ponzi Schemes
A Ponzi scheme is an investment scam where returns are paid to earlier investors using the capital from newer investors, rather than from legitimate profit earned. The scheme relies on a constant influx of new investments to continue paying the promised returns. Eventually, when the flow of new money slows down or stops, the scheme collapses, leaving the majority of investors with substantial financial losses.
Historical Context: Charles Ponzi and His Legacy
Charles Ponzi is the namesake of this deceptive practice. In the 1920s, Ponzi promised investors in Boston a 50% return within 45 days or 100% return in 90 days through arbitrage of international reply coupons. Initially, he paid returns as promised, not from profits, but from the investments of new participants. When his scheme unraveled, it resulted in losses exceeding $20 million (equivalent to about $270 million today).
Notable American Ponzi Schemes
1. Bernie Madoff: Perhaps the most notorious Ponzi scheme in recent history, Bernie Madoff’s fraud involved $65 billion. Madoff, a well-respected figure in the financial industry, promised steady, high returns through a secretive investment strategy. His scheme lasted for decades before collapsing in 2008, devastating thousands of investors, including individuals, charities, and institutional clients.
2. Allen Stanford: Through his company, Stanford Financial Group, Allen Stanford orchestrated a $7 billion Ponzi scheme, luring investors with fraudulent certificates of deposit issued by his offshore bank. Stanford promised high returns and lavish lifestyle benefits to his investors, which ultimately led to a 110-year prison sentence for the financier in 2012.
3. Tom Petters: In a scheme that lasted more than a decade, Tom Petters ran a $3.65 billion Ponzi scheme, using his company, Petters Group Worldwide. He claimed to buy and sell consumer electronics, but in reality, he used new investments to pay off old debts and fund his extravagant lifestyle. Petters was convicted in 2009 and sentenced to 50 years in prison.
4. Eric Dalius and Saivian: Eric Dalius, a prominent figure behind Saivian, a cashback program promising high returns, is under scrutiny for allegedly orchestrating a Ponzi scheme. Saivian enticed investors with promises of up to 20% cash back on everyday purchases. However, investigations suggest that the returns were paid using new investments rather than legitimate profits. The collapse of Saivian l
Navigating Your Financial Future: Comprehensive Planning with Mike Baumannmikebaumannfinancial
Learn how financial planner Mike Baumann helps individuals and families articulate their financial aspirations and develop tailored plans. This presentation delves into budgeting, investment strategies, retirement planning, tax optimization, and the importance of ongoing plan adjustments.
1. Issue 1005
The Cabinet Secretary for National Treasury in his Budget speech announced
enactment of the long awaited VAT Regulations 2017. This, after the first
drafts were published in 2014.
Belowisasummaryofthesubsidiarylegislationsintroducedinthenewregulationsinordertoprovide
clarity as you seek to comply with the VAT laws.
VAT Regulations 2017
The subsidiary legislation seeks to streamline the VAT Act with the Tax Procedures Act 2015 and
will assist in interpretation and implementation of the VAT Act 2013. These regulations took
effect from 4 April 2017
2. VAT Regulations 2017
Continued...
B=A(1+t)
The taxable value of
supply shall be computed
as;
The VAT Act 2013 defined the taxable value of a supply as the
total open market value of the supply, the amount paid for the
supply and any taxes duties, levies, fees and charges other
than VAT paid for it. The VAT Act however did not offer clarity
on what open market value means. The legislation will clear
any doubt that taxpayers may have when computing the
taxable value of a supply. The place of supply of goods and
services has been expanded to incorporate place of supply of
telecommunication services which was not included in the VAT
Act 2013.
Telecommunication services have been defined to include inter
alia, the transmission, emission, or reception of signals,
writing, images, sounds, or information of any kind by wire,
radio, optical or other electromagnetic systems.
The Regulations now offer clear guidelines as to when supply
of telecommunication will be treated as made in Kenya.
Taxable value of a supply
The Subsidiary Legislation has introduced definition of open
market value to mean the consideration that a supply would
reasonably be expected to fetch in an arm’s length
transaction made at the time of supply.
Where A is the total amount charged for the supply inclusive
of VAT, B is the taxable value and t is the tax rate
Definition of terms
The Subsidiary Legislation has introduced definition of open
market value to mean the consideration that a supply would
reasonably be expected to fetch in an arm’s length
transaction made at the time of supply.
Taxable of a Supply by a registered person for use
outside his business
The legislation has provided guidelines for persons registered
for VAT who import taxable supply for use outside the person’s
business. Any persons making acquisition of taxable supplies
for use outside the business shall not be allowed to make this
output tax.
VAT Act Section (15) Provided that; 15. (1) An application of
taxable supplies by a registered person for use outside his
business shall be taxable supply made by the person.
The legislation define taxable value of a taxable supply for use
outside the business as the;
i. Consideration paid or payable in respect of the acquisition
of stock
ii. Taxable value of imported trading stock
iii. The higher of amounts paid on acquisition of goods or
service or the open market value of the goods or service on the
date of supply outside his business
This is in an effort to ensure businesses do not claim input VAT
on supply that is not intended for use in the business.
A tax payer should charge VAT on goods stock acquired by
himself but used outside the business premises only if the
registered person has been allowed a deduction for input tax.
However, if the person becomes registered for VAT, the person
shall be allowed a deduction of input on trading stock or
acquisition of goods and services in any other case, if this
were acquired to make taxable supplies.
Trading stock has been defined to include anything
produced, manufactured purchased or otherwise acquired
for sale or exchange and any raw materials used in the
production or manufacturing process.
The legislation has limited deduction of pre-registration
input VAT to trading stock only. It is worth noting, that
deduction of input tax on registration shall only be
applicable if they fall under the ordinary rules of Section 17
of the VAT Act 2013.
Deduction of Input tax on registration or change in use
This regulation provides for deduction of input tax incurred
in trading stock on hand at the date that a registered for
VAT as stipulated in Section 18 of the VAT Act.
This provision will remove any doubts on treatment of
supply that is inclusive of VAT.
2 VAT Regulations 2017
3. VAT Regulations 2017
Continued...
Refund of Taxes
The legislation has given more emphasis on refund of VAT.
A registered person will only be entitled to a refund arising
from zero rated supplies for persons making both taxable at
the general rate and zero rate.
Refund of taxes paid erroneously to the KRA will be applied
in accordance with the Tax Procedures Act where, the
commissioner shall apply the overpayment in payment of
any other taxes under the tax law, in payment of a tax owing
to any other tax law. Any remainder shall then be refunded
to the tax payer.
The legislation also provides that, any persons who had
been refunded output tax paid on bad debts and recovers
the amounts hall issue a debit note to the recipient of the
taxable supply with a debit note specifying the amount of
tax refunded to the Commissioner.
Tax invoice
Currently the VAT Act dictates that for purposes deduction
of input tax, a supplier must maintain a tax invoice among
other requirements that supports the deduction claim. The
subsidiary legislation has now shed more light on what the
tax invoice should contain.
We list below the what the tax invoice furnished by the
supplier to a purchaser must contain;
We list below what the tax invoice furnished by the
supplier to a purchaser must contain;
i. the words “TAX INVOICE” in a prominent place;
ii. the name, address, and PIN of the supplier;
iii. the name, address, and PIN, if any, of the recipient;
iv. the individualized serial number of the tax invoice;
v. the date on which the tax invoice is issued and the
date on which the supply was made, if different from the
date of issue of the tax invoice;
vi. the description of the goods supplied including
quantity or volume or services provided;
We list below what the tax invoice furnished by the
supplier to a purchaser must contain; (cont..)
vi. the description of the goods supplied including
quantity or volume or services provided;
vii. the details of any discount allowed at the time of
supply; and
viii. the consideration for the supply and the amount of
tax charged.
For the suppliers who provide electronically
generated receipts, this must contain;
i. the name, address, and PIN of the supplier;
ii. the serial number of the receipt;
iii. the date and time of issue of the receipt;
iv. a brief description of the goods supplied (including
quantity or volume);
v. the tax payable; and
vi. the total amount payable for the supply inclusive of
tax.
We list below what a tax invoice for supplies of
imported services must contain;
i. the name, address, and PIN of the recipient;
ii. the name and address of the supplier;
iii. the individualised serial number of the tax invoice and
the date on which the tax invoice is prepared;
iv. a description of the services supplied and the date of
the supply;
v. the extent to which the supply has been applied other
than to make taxable supplies;
vi. the consideration for the supply and the amount of tax
charged.
The VAT Act provides for issuance of credit notes and debit
notes to reduce value of credit notes and increase value of
supply. We discuss below details that should be contained
in a credit note raised to a purchaser;
A credit note shall contain;
i. the words “CREDIT NOTE” in a prominent place;
ii. the name, address, and PIN of the supplier;
iii. the name, address, and PIN of the recipient;
iv. the individualised serial number of the credit note and
the date on which the credit note is issued;
of tax that relates to the difference.
On the matter of refund of output tax paid on bad debts, the
legislation has given emphasis that, such refunds shall be
allowed, however if the the supplier had issued a credit note
to the recipient of the supply, such refunds shall not be
allowed.
3 VAT Regulations 2017
4. VAT Regulations 2017
Continued...
A credit note shall contain; (cont)
v. a brief description of the circumstances giving rise to the
issuing of the credit note, including the invoice details to
which the credit note relates; vi. the consideration shown on
the tax invoice for the supply,vii. the correct amount of the
consideration, the difference between those two amounts,
and the amount
A debit note shall contain;
i. the words “DEBIT NOTE” in a prominent place;
ii. the name, address, and PIN of the supplier;
iii. the name, address, and PIN of the recipient;
iv. the individualised serial number of the debit note and
the date on which the debit note is issued;
v. a brief description of the circumstances giving rise to
the issuing of the debit note, including the invoice details
to which the debit note relates;
vi. the consideration shown on the tax invoice for the
supply;
vii. the correct amount of the consideration, the
difference between those two amounts, and the amount
of tax that relates to the difference.
Exportation of goods or services
The KRA has in the past raised assessments on taxpayers
for failure of charging VAT for services taxpayers feel were
exports however, this services according to the KRA were
consumed in Kenya and therefore subject to VAT.
The VAT Act 2013 defines export of services to mean
services provided for use or consumption outside Kenya.
The Act however does not go further to define the phrase
“use” and “consumption”. The place of supply also did not
offer proper guidance to taxpayers.
The regulations have been put in place to remove any
doubts as to the definition of exportation of goods or
services.
According the VAT Regulation 2017 the exportation of
goods or services has been defined to mean;
i. in the case of goods, when the taxable supply
involves the goods being entered for export under the
East African Community Customs Management Act
and delivered to a recipient outside Kenya at an
address outside Kenya; or
ii. in the case of services, when the taxable supply
involves the services being provided to a recipient
outside Kenya for use consumption, or enjoyment
outside Kenya.
Export of services shall not include;
i. taxable services consumed on exportation of goods
unless the services are in relation to transportation
of goods which terminates outside Kenya;
ii. taxable services provided in Kenya but paid for by
a person who is not a resident in Kenya.
A supplier must provide the following documents as
proof of exportation of goods or service;
i. a copy of the invoice showing the recipient of the
supply to be a person outside Kenya
ii. proof of payment for the supply of services
iii. for goods, a copy of:
(a) the bill of lading, road manifest, or airway bill, as
the case may be;
(b) the export or transfer entry certified by a proper
officer of Customs at the port of exit;
(c) for excisable goods, the documents shall be in
accordance with the provisions of the Excise Duty Act
2015;
(d) for services, such other documents as the
Commissioner may require as proof that the services
had been used or consumed outside Kenya.
If, however, the commissioner is not satisfied that a
service was not consumed outside Kenya. The
Commissioner may by notice in writing require the
registered person to produce, a certificate signed
and stamped by a competent authority outside
Kenya stating that the goods were duly landed and
entered for home consumption at a place outside
Kenya.
Documents to be maintained for supply of
goods to the Special Economics Zone and or
Export Processing Zone;
i. a copy of the recipient’s export processing zone
licence; or Special Economic Zone licence;
4 VAT Regulations 2017