What is VAT?
VAT means Value Added Tax. An indirect tax charged on a supply of goods and services at any point in the supply chain and is payable by anyone consuming the goods or services being supplied. The tax is payable to the Government.
What needs to be done as a business owner?
Three things have to be done as follows:
How will VAT work?
A 5% initial VAT rate will be set, unless your goods or services is zero rated or VAT exempt.
VAT will be calculated based on the consumption of goods and services. Businesses can claim credit for VAT paid on their business-related expenditures, as illustrated on the chart below.
What will happen if not VAT compliant?
Some of the consequences will be:
What is the possible impact on my business?
The impact of VAT varies from one company to another depending on the nature of business and the complexity of operations and the accounting system in place. Some of the common effects are:
How Elyaa can help?