VAT and the Consumer
Only businesses that are registered for VAT can charge. They must prominently display their VAT Registration Certificate at their place of business. To verify if a business can charge you VAT, you can also check the VAT registry here.
Yes, retailers should display VAT inclusive prices. However, retailers have been given two months (ending February 28th, 2015) to adjust shelf prices. During this transitional period retail prices may reflect VAT inclusive or exclusive pricing. Note, however, that restaurants with dine-in table service may publish menus with the VAT exclusive price and the amount of VAT shown separately. If the menus are VAT exclusive there must be a clause stating that menu prices are subject to VAT.
Yes, if the supplier is a VAT registrant, you must receive a VAT sales receipt or a VAT invoice whenever you make a purchase. Prices stated on a VAT receipt can be either inclusive or exclusive of VAT, but the receipt must show the VAT percentage (7.5%), the total amount of VAT charged and the supplier’s name, address and TIN. If the supplier refuses to issue a VAT sales receipt, you must demand one and/or report the matter to the VAT Department. A business not registered for VAT CANNOT charge VAT, issue VAT receipts or VAT invoices. If they do, you MUST report it immediately.
If you experience that any business is not registered but issuing VAT receipts or invoices or that a registered business is not complying with its VAT obligations of displaying the VAT Registration Certificate, charging the correct rate of VAT, issuing proper invoices and receipts, displaying VAT inclusive prices or any other obligations stated in the VAT Act or Regulations, collect the evidence and report the issue to the VAT Department via email: email@example.com or phone: 225-7280.
The VAT Department headed by the VAT Comptroller is responsible for administering the tax. Eventually there will be a merger between the VAT Department and the Department of Inland Revenue to form the Central Revenue Administration (CRA) which will have ultimate responsibility for VAT and some of the other tax revenue streams.
The Customs Department is responsible for the charging and collection of VAT on the importation of goods. VAT is charged on cost, insurance and freight as well as excise taxes, environmental levies and surcharge. According to the VAT Act, VAT will be charged when goods are entered for home consumption.
On a Customs Department Home Entry Form, the total calculation is broken down to reflect the duty amount, the processing fee, the freight and other charges, the total landed cost and the VAT due at 7.5%.
For example, the value of a commercial refrigerator is $1,200. The duty amount (at 35%) is $420, the processing fee of 1% is $12, the amount of freight/other charges exclusive of VAT equals $600 and the total landed cost (including the duty, processing fees, freight and other charges) is $2,232. The VAT charged at 7.5% is $167.40 and the total cost equals $2,399.40. The total amount payable to Customs will be the duty added to the processing fee and the VAT at 7.5% ($420+$12+$167.40=$599.40).
Yes, the duty allowance benefit still applies. This allowance will also be exempt from VAT..
Yes. When you import goods the Customs Department will add the duty to the value of the goods and then charge VAT on this total. For example, if you purchase a good for $100 dollars in the US and the duty rate on the item is 25 percent, the duty owed will be $25. VAT will be charged on $125. If there are other charges such as the environmental level or the Customs Processing fee, these would also subject to VAT.
Yes. Items that are exempted from duty are still subject VAT.
Yes, VAT is charged on domestic flights at a standard rate of 7.5%.
Yes. VAT will be charged at a zero rate (0%).
Yes, if they are explicit fees they will attract VAT at the standard rate of 7.5%. For example, a management fee on the maintenance of a pool or lawn service is considered an explicit fee.
No, consumers do not get a refund of VAT paid. VAT is a tax that is paid by the final consumer of the good or service.