![]() ![]() A person is a defined term and includes a company, individual, partnership, trust fund, and a municipality. Who should register for VAT?Īny person that carries on an enterprise, as defined in section 1(1) of the VAT Act, may qualify to register for VAT. The standard rate of VAT increased from 14% to 15% from 1 April 2018. There is a limited range of goods and services which are subject to VAT at the zero rate or are exempt from VAT. VAT is therefore, charged at each stage of the production and distribution process and it is proportional to the price charged for the goods and services. The business is required to pay the difference between the VAT charged by it and the VAT charged to it, or claim a VAT refund where the VAT charged to it exceeds the VAT charged by it. ![]() VAT is therefore non-cumulative, meaning that a credit/deduction is allowed for VAT paid in previous stages, within the production and distribution chain. The business will also be entitled to deduct any VAT charged to it, or under limited circumstances from a business that is not registered for VAT, in respect of a supply made to it. In doing so, the business will charge VAT on supplies of goods and services made by it, on the importation of goods and on imported services (subject to certain conditions). Revenue is raised for government by requiring a business, that carries on an enterprise (as defined in section 1(1) of the VAT Act), to register for VAT. ![]() VAT is an indirect tax on the consumption of goods and services in the economy. Value-Added Tax is commonly known as VAT. ![]()
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