Citizens are required to comply with certain requirements about tax which are stated by the revenue and customs agency and other relevant bodies. Paying taxes is an obligation of all citizens since these funds are deployed in developing the country’s infrastructure and economy. Failure to comply with the given rules results to being held into account and one may be fined or face other consequences specified by the law. Businesses engaging in profit making activities are supposed to get registered for value added tax membership by visiting the agency. After registration, the businesses and individuals are given a unique vat number and told the value added tax rates to charge for goods and services offered.
People who are not registered for value added tax are not allowed to charge anything to consumers after purchasing products and services. An accounting period which is due after every three months requires the registered persons to submit a value added tax return. The value added tax return indicates such details as total sales and purchases, amount of tax owed to the agency and refundable amounts. Unique individuals are subject to different rates of value added tax and mostly varies depending upon type of business, assets and other criteria. One is required to submit a value added tax return for selling vehicles, engaging in profit making activities and many more ventures.
Various forms of payment are allowed and they consist of digital means, deploying accountants to handle the task and other means. The agency assists those having some issues such as being late, inaccurate tax reports and many more concerns. One can claim for refunds or value added tax reclaims for buying materials to build new homes, building structures for charity and other reasons. Even when a business has been declared bankrupt, they could still be subjected to value added tax and need to make the agency aware. Insolvency practitioners can help businesses in filing for becoming insolvent as they are knowledgeable in matters regarding the issue.
It is important for all users registered for value added tax to keep well organized value added tax records for future reference. The revenue and customs agency performs visits and inspections to verify that the businesses are fully compliant with tax obligations. The inspections can lead to the business being fined if some errors are found or they are not compliant with the given rules and regulations. Keeping the value added tax return documents can be helpful in avoiding future complications as one can produce them for verification. Tax advisors and accountants may be hired to assist the business or individual by granting them the necessary authority to act on the person’s behalf.