VAT GENERAL PRINCIPLES

VAT GENERAL PRINCIPLES2019-06-05T09:47:21+00:00

VAT General Principles

Smiley face

Input VAT

Input VAT is the value added tax added to the price of purchased goods or services. The buyer can deduct the amount of VAT paid, If the buyer is registered with the tax authority.

Smiley face

Output VAT

Output VAT is the value added tax calculated and charged on the sales of goods and services.

Smiley face

Exempt Supply

An exempt supply is a supply on which VAT is not charged and for which the related input VAT is not deductible.

Smiley face

Zero-rated supply

A zero-rated supply is a taxable supply on which VAT is charged at 0% and for which the related input VAT is deductible.

Smiley face

Standard Rate Supply

A taxable supply at the Standard Rate is a supply on which VAT is charged at 5% and for which the related input VAT is deductible. All items which are not coming under both exempted category, as well as zero-rated category, are coming under standard rated supplies.