The VAT Office wants to work with businesses to help them get their VAT returns right the first time so not only they can save time and money but it ensures that the right amount of VAT is paid and also any refund due is correct and processed quickly. The VAT Office wants to make the VAT regime as easy as possible that allows businesses more time focusing on their customers and growing their businesses.
To help our customers (VAT registered persons) avoid making simple mistakes that is becoming quite common when completing their VAT returns, here are some seven helpful tips:
- When making payments for your businesses expenses you must make sure that a proper tax invoice is provided by your supplier;
- Check that the expenses and income are accounted for in the correct VAT return period;
- Check that you have included all income received for that period;
- Remember not to claim VAT on expenses that are exempted or outside the scope of VAT such as staff wages and private expenses;
- Before lodging your VAT return cross check that the amount calculated on your VAT return equals to what you expect to pay or receive as refund;
- Maintain a good record keeping practice;
- Know your VAT return due dates, file your returns and make payments on or before the due date.
The VAT Office have and will apply full force of law where it is evidence that the under declaring or over claiming of VAT is done intentionally.
As VAT is a self assessed tax unless there is evidence of carelessness, recklessness or intentional disregard of the VAT Act No. 12 of 1998 [CAP 247], the VAT Office accepts that the VAT registered persons are trying to be honest in their VAT obligations and that the information provided is as accurate as possible.
For more information on any VAT issues, please contact the VAT Office by phone: 00(678) 24573 and 00(678) 37517 (Santo), visit us at our Office in Carnot Street, Port Vila or email us.
