|
|
|
|
Value Added Tax (VAT): Filing the VAT Return (Part II)
|
This article is the second and final part on how to file the VAT return. The first part
was published last week.
|
Part B: Input Tax (Imports and Purchases)
|
Refer to the section of the return below for explanation on how to file your input tax.
Line 5: Input tax allowed as credit (VAT reclaimable on business purchases)
Column A: reflects the amount of goods and services exclusive VAT purchased locally
and/or imported during the taxable period.
Column B: reflects the VAT paid on purchases/imports made for use in the business
during the taxable period.
Line 5.1: Input tax on imported goods includes:
-
VAT paid to Customs on imports
-
VAT paid on goods removed from a bonded warehouse or free zone
Line 5.2: Input Tax Credit on goods and services purchased locally. It corresponds to
the goods and services purchased on the domestic market upon which VAT has been paid.
(Column A is the price of these goods/services, column B is the VAT charged by the
seller).
Line 5.3: Input Tax Credit on capital goods. The value (tax base) and the VAT
corresponding to the fixed assets purchased or imported.
Line 6: Input tax not allowed as credit
Column A:
-
reflects purchases on which VAT credit cannot be claimed, even though VAT is
included in the price. These include:
-
anything outside the scope of VAT entertainment, accommodation, motor vehicles expenses;
-
purchases related to private use;
-
Interest, bank fees
-
Reflects purchases of exempted goods (goods which does not attract VAT)
Line 7: Adjustments
Column B: reflects adjustments reducing or increasing the input tax on purchases
and expenses.
(-) may correspond to a reduction of the agreed price of the supply following the issuance
of a credit note ; it can be a reduction of the deduction right related to the private use
of a good initially purchased for business purpose.
(+) corresponds to an increase of the agreed price following the issuance of a debit note.
Column B also comprises any reduction of the input tax credit resulting from the application
of the apportionment rules. Typically when a business makes both taxable and non taxable
supplies, the input tax credit (shown by lines 5.2 and 5.3) must be apportioned. The
portion of input tax which is not claimable as a credit has to be reported line7.
Column B
Line 8: reflects the VAT carried forward from prior taxable period line 11B of your
last VAT return).
Line 9: reflects the total input tax credit, all VAT deductible (line 5.1B + 5.2B +
5.3B + 7B + 8B). It is important to fill this line in to claim any input tax credit
deduction.
|
Part C: VAT Liability
|
Refer to the section of the return below for explanation on how to file your VAT liability.
Line 10: VAT payable
Line 10 column A must be filled-in only when the total output tax reported line 4 column B
exceeds the total input tax reported line 9 column B. This amount is the tax liability,
in other words the VAT to remit to SRC.
Line 11: VAT credit
Line 11 column B must be filled-in only when the total input tax reported line 9 column B
exceeds the total output tax report line 4 column B. This amount is the credit that can
be either carried forward or claimed for a refund (under certain conditions).
When submitting the VAT return only one of these two lines can be filled-in.
|
Claim for Refund
|
This box must be used only when the taxpayer is entitled to get a VAT refund. When filling
the box the taxpayer indicates the amount he wants to get refunded (this amount can be
equal or inferior to the credit reported line 11B, but neither superior).
|
For more information
|
|
You can contact Seychelles Revenue Commission on hotline number 4293745 or email us at vat@src.gov.sc.
The Value Added Tax Act, 2010 and the VAT manual are available here.
|
Website Published Date: 26th March 2013
|
|
|