VAT VAT

What is Value-Added Tax (VAT)

Indirect tax Borne by end users through taxation of transactions into which they enter. VAT is charged by registered persons on the value added to goods and services at each stage of the production, in the distribution chain, or on importation.

Registered Person:

The supply has to be made by a registered person before it attracts VAT. "person"

"person"

 

Registration of VAT

Two types:

Compulsory: Taxable turnover (excl VAT) exceeds N$500 000.00 Voluntary:    Taxable turnover less than N$500 000.00 

How Does Vat Work?

Output Tax

Output tax is the VAT charged by a registered person on the sale of   goods or services which are liable to VAT.

Input Tax 

Input tax is the VAT paid by a registered person on the  importation  or   purchase of goods or services which are liable for VAT.

VAT Computation

Output tax (VAT charged on sales)  N$ 5 000.0 Input tax (VAT paid on purchases)     N$ 4 000.00 VAT due and payable for period         N$ 1 000.00

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