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Value Added Tax (VAT): How to complete the VAT return?
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This article is the first part of two articles on how to complete and file the VAT return.
The VAT return is a document of your VAT transactions for a particular VAT period for VAT
registered businesses. Compulsory VAT registered businesses will lodge their return on
a monthly basis, whereas Voluntary registered Businesses will file their return on a
quarterly basis. Along with the VAT return, businesses should make sure that the
Business Activity Statement (BAS) is also attached.
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Part A: Output Tax (Supply of goods and services by you)
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Refer to the section of the return below for explanation on how to file your output tax.
Line 1: Taxable supplies
Column A: This is the total amount (exclusive of VAT) charged on sales to customers
during the taxable period.
Column B: This is the VAT applied on taxable supplies and charged on sales to
customers during the taxable period.
It also includes the VAT to be paid for certain other supplies, such as:
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• sales to staff;
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• sales of business assets, such as commercial vehicles or machinery;
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hiring or loaning of goods to someone else;
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commission received from selling something on behalf of someone else;
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goods or services, such as products or computer software, taken out of the business for personal use by staff;
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gifts or samples given to someone that cost more than SR 500;
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anything bartered, exchanged or part-exchanged;
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any goods bought that the reverse charge procedure applies to;
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Deferred payment when applied on capital goods imported.
Credit notes issued or debit notes received are taken away from this total and will be reported on line 3 adjustments.
Line 1.1 On exports: as exports are zero-rated, no VAT has been charged on them, column A will
show the total value of exports made during the taxable period.
Line 1.2 On other Zero-rated supplies: column A will show the total amount of sales of zero-rated
goods and/or services (except exports). Example: sale of animal feed.
Line 1.3 On sales of capital assets: Column A will reflect the selling price of any fixed asset
sold by a business and column B the VAT charged on this sale.
Line 2: Exempt supplies
Column A: As exempt supplies are not taxable, the column A will show the total value of
exempt goods and services sold during the taxable period. Example: sale of infant formulae,
rice and lentils by a retailer.
Line 3: Adjustments
Column B: reflects adjustments increasing or reducing the amount of output VAT. It includes
correction of errors made during the last period (example an editing error).
Adjustments also include credit notes issued when the price of a supply has reduced after a tax
invoice was issued, e.g. the return of faulty goods; debit notes issued when the price increases
after a tax invoice has been issued.
Line 4: Total output tax
Column B: Reflects the total amount of VAT collected on taxable sales (line 1B + 1.3B + 3B).
This is the total output tax against which the deductible input tax will be offset. It is important
to fill this line in.
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For more information
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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.
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Website Published Date: 23rd July 2013
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