Guidelines

What is the special VAT threshold?

What is the special VAT threshold?

The VAT-exempt threshold on sale or lease of goods or properties or the performance of services is increased from P1,500,000 (P1,919,500) gross annual sales and/or receipts to P3,000,000.

What is VAT registration threshold in Tanzania?

The VAT registration threshold is 100 million Tanzanian shillings (TZS) (approx. $45,000 U.S. dollars). Therefore, any person making any kind of taxable supply, including electronic services with turnover of above TZS 100 million, must be registered for VAT and issue invoices for all supplies made in Tanzania.

Who are required to file VAT returns?

Entities Required to File VAT Returns VAT-registered individuals or businesses engaged in selling, exchanging, leasing of goods or properties, and rendering services, if the actual gross sales or receipts accumulate up to Php 3,000,000.00; Taxpayers required to sign up as a VAT taxpayer but failed to register; and.

Who are the persons required to register for VAT?

— Any person who, in the course of trade or business, sells, barters, exchanges, leases goods or properties, renders services, and any person who imports goods shall be liable to the value-added tax (VAT) imposed in Sections 100 to 102 of this Code.

Is it illegal to not be VAT registered?

You must not charge VAT if your business is not registered for VAT. The penalty can be up to 100% of the VAT shown on the invoice. There is a minimum penalty of 10% of the VAT even if there is an unprompted disclosure to HMRC of a careless mistake, as distinct from deliberate and concealed conduct.

Is the sale of a residential property exempt from VAT?

The sale and rental of property is normally exempt from VAT with some exceptions. These are the sale of new residential property which is zero-rated and the freehold sale of new (less than 3 years old) commercial property which is standard rated.

How do I submit a monthly VAT return?

To change from quarterly to monthly VAT returns, you can log on to your VAT online services account and select ‘change registration details’. Alternatively form VAT484 can be completed and sent to HMRC in the post.

How do I submit a VAT return?

How to File VAT Return Online?

  1. Step 1: Log in. Log in to the online portal of the Directorate of Commercial Taxes for your state.
  2. Step 2: Password Change.
  3. Step 3: Form 14D.
  4. Step 4: Complete the Form.
  5. Step 5:Generating XML.
  6. Step 6:Upload.
  7. Step 7:Correct Mistakes If Any.
  8. Step 8: Acknowledgement.

Who are not required to register to the VAT system?

As mentioned above, companies in the Philippines that do not exceed the aggregate amount of Three Million Pesos (Php3,000,000) in actual gross sales or receipts are not required to remit and file VAT. Such companies are exempt.

Is VAT included in gross selling price?

All goods and properties (except those specifically exempt), including those subject to excise tax, sold, bartered or exchanged are subject to a 12% VAT based on the gross selling price152 or gross value in money.

What are the thresholds to register for VAT?

If you are below the thresholds you may elect to register for VAT. The principal thresholds are as follows: €37,500 in the case of persons supplying services only. €35,000 for taxable persons making mail-order or distance sales into the State.

When do you have to register for VAT for Distance Selling?

The thresholds depend on your turnover in any continuous 12 month period. The threshold for distance- selling relies on your turnover in a calendar year. If the turnover is less than a threshold limit, you may elect to register for VAT.

When is the effective date of VAT registration?

Your effective date of registration is the date you realised, not the date your turnover went over the threshold. Example On 1 May, you realise that your VAT taxable turnover in the next 30-day period will take you over the threshold.

What was the VAT limit before 21 March 1990?

Before 21 March 1990 the rules were different. You had to look at your past and future taxable turnover when deciding whether you needed to register. There was also a yearly limit and a 3-monthly limit. If you think you should have been registered before 21 March 1990 you should contact our VAT Registration Service.