The VAT Office would like to remind all registered persons to do the right thing and ensure to comply with all the requirements of the VAT Act during this festive season. Non-compliance will be dealt with in accordance to the VAT Act.
VAT Spot Check Initiative
A spot check is an unannounced visit carried out by the VAT staff to ensure all registered persons comply with all the VAT requirements. This spot check initiative is designed to focus on the specific key requirements of VAT. It includes checking all functions of a cash register (the cash register rolls, information contained on the receipt, punching/keying of the correct amounts, etc.), display of the VAT registration and the business license certificates in a prominent place.
The VAT Office recently conducted an unannounced spot check initiative and the result shows a number of businesses in town had been issued with spot fines under Section 51 (1) (a) (b) (c) (i)(k) (l) and (m) of the VAT Act for non-compliance. Most of the fines are issued to those who:
1). Fails to keep or properly maintain records – Section 51(1) (i);
2). Makes any false return, false statement or false declaration or gives any false information – Section 51(1) (c);
3). 200% penalty on undeclared Sales/Income –Section 31 (b).
Recently some registered persons (businesses) were penalized under Section 31(b) of the VAT Act:
- Registered taxpayers did not declare income received for bookings from customers;
- Third party check revealed that registered taxpayers did not declare output tax on a large sale;
- Builder not registered for VAT but was well above the VAT registration threshold;
- Third party check revealed that registered person did not declare output tax on a large sale.
The VAT Office reminds all businesses in town, that it will continue to carry out unannounced spot checks soon and advises all businesses around town to do the right thing before, they were caught or spotted and fine accordingly.
Table – Prescribed Penalty Notices
This Weekly Column is an initiative by the Department of Customs and Inland Revenue (DCIR) to provide awareness to its clients and the public at large to promote voluntary compliance, while at the same time, achieve certainty and avoid misunderstandings and disappointments. This approach will also ensure that DCIR achieves its objectives of collecting the total budgeted 2015 Government revenue, protecting our borders and facilitating legitimate trade.