VAT

VAT is the indirect tax imposed by the government for taxable transactions. By the term taxable transactions, we mean 90% of the products and services offered through the market. Different VAT tax rates are applied depending on the nature of the service/product offered or received.

Each organisation with taxable transactions needs to account for VAT tax on their revenue and pay VAT tax that is being imposed on expenses and purchases made. Each quarter the VAT charged is extracted and reported on the VAT form based on the nature of each transaction affected. Figures are reconciled with accounting records and VAT results are provided to clients for approval and submission to the authorities, resulting into VAT payable for settlement or receivable for claiming back.