The VAT Act contains several prescribed methods on treating
VAT, accounting for VAT and declaring VAT. Considering the fast
pace at which business is conducted daily, here are some useful
tips on ensuring your business maintains momentum while being on
the right side of the Act.
10 Important Principles
1. VAT registered entities collect VAT (output tax) on behalf of
Government – please make sure that you pay it over on
time, otherwise penalties and interest will be charged.
2. All prices charged, advertised or quoted by a registered
person must include VAT at the applicable rate. (Presently 15% for
standard rated supplies).
3. VAT charged on supplies made (output tax) less VAT paid to
your suppliers (input tax) = the amount of VAT
payable/refundable.
