VAT

meyer cohn
Mind Map by meyer cohn, updated more than 1 year ago
meyer cohn
Created by meyer cohn about 6 years ago
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Summary of VAT

Resource summary

VAT
  1. Output (s.7(1)(a))
    1. Person carrying on an enterprise
      1. No
        1. Final consumer
        2. Yes
          1. Supply of goods/services
            1. Exempt supplies (s.12 & s.2)
              1. No output tax levied
                1. 1. Financial services; 2. Accommodation; 3. transport of fare-paying passengers
                2. Taxable supplies (s.1 & s.7)
                  1. Zero-rated supplies(0%) (s.11)
                    1. Export of movable goods
                      1. Direct=supplier exports
                        1. Indirect= recipient exports
                        2. Export of services
                          1. Sale of going concern (criteria: both must be vendors)
                          2. Standard rated supplies(14%) (s.7(1)(a))
                          3. Deemed supplies (s.8 & s.18(3))
                            1. Ceasing to be a vendor: 1. Output tax payable on goods & rights owned by person also on outstanding balances owing to suppliers; 2. Value = Lesser of Cost and open-market value.
                              1. Indemnity payments
                                1. Total reinstatement of goods where Input tax denied = no supply
                                  1. Repair of goods denied input tax = deemed supply at std
                                  2. Replaces goods= insured not deemed to make a supply
                          4. Time & value of supplies (s.9 &s.10)
                            1. Time
                              1. Invoice basis: Earlier of -date of invoice issued; OR time of pmt
                                1. Payment basis: time of pmt
                                2. Value
                                  1. Consideration = value + VAT
                                    1. Consideration: >in money=money value;; >not money= open-market value
                                  2. Connected persons: value= open-market value
                                  3. Adjustments (s.18(1), (2),18A, 18B & 22(2)-(3A))
                                  4. Input (s.17)
                                    1. Was a vendor charged with VAT on supply of G/S by supplier? (s.1)
                                      1. No
                                        1. No input tax claim
                                        2. Yes
                                          1. Will G/S be consumed , used or supplied in course of making taxable supplies? (s.17(1))
                                            1. No
                                              1. Yes
                                                1. Is deduction of input tax denied? (s.17(2))
                                                  1. Yes
                                                    1. No
                                                      1. Proposed consumption, use or supply 100% in course of making taxable supplies? (s.17(1))
                                                        1. Yes
                                                          1. Claim full input tax
                                                          2. No
                                                            1. Determine portion of use in course of making taxable supplies
                                                              1. Intended use >95%
                                                                1. Yes
                                                                  1. No
                                                                    1. Apportion & claim only amount of input tax that relates to intended use
                                              2. Fixed property transactions where transfer duty payable
                                                1. Should supplier charge VAT?/ Is supplier a vendor?
                                                  1. Yes
                                                    1. No
                                                      1. Transfer duty payable by purchaser based on purchase price
                                                        1. Is purchaser registered vendor?
                                                          1. Yes
                                                            1. Purchaser use property wholly/partially for taxable supplies?
                                                              1. No
                                                                1. May not claim Input tax
                                                                2. Yes
                                                                  1. > Notional input tax(NIT) not limited to transfer duty; >Time = earlier of pmt / property registration; NIT only claimable to extent pmt is made
                                                              2. No
                                                      2. Adjustments
                                                        1. Due to change in use (s.18)
                                                          1. Irrecoverable debts (s.22)
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