TAX IMPOSED ON SUPPLY OF GOODS AND SERVICES
Vat is a tax imposed on taxable supplies other than exempt supplies and imports other than exempt imports made by a taxable person, businesses, sole trader, partnership or limited company with a turnover that exceeds shs 12.5 million within three consecutive calendar months or the annual threshold of shs 50 million.
Its important to ensure that your financial records are accurate so that you can ensure you are registered for VAT, URA is increasingly clamping down on traders who should be registered for VAT but have failed to do so, and can impose penalties. You can voluntarily register for VAT providing your business is dealing in taxable supplies and if URA is satisfied with your information.
You have an obligation to charge and collect VAT on your supplies by issuing a tax invoice and file a vat return within 15 days after the end of the month, any payments due must be made by this date otherwise you will incur penalties.
If your business is reaching the VAT threshold, we can offer you expert advice on all areas of VAT.
Please call us for further information or email us at vonaccountancy.com