Value Added Tax (VAT)

Course Outlines

MODULE 1: FUNDAMENTALS OF VALUE ADDED TAX

• Introduction to value-added tax
• Basic characteristics of taxable supplies – goods and services
• Taxable persons
• Taxable amount – VAT rates and exemptions
• Place of supply – Goods
• Place of supply – Services
• Deduction and recovery of input tax
• Administrative elements of VAT

MODULE 2: VAT CONCEPT

• Concept and motive of VAT
• Input and Output VAT
• Supplies, Goods and Services

MODULE 3: CATEGORIES OF SUPPLIES

• Taxable Supplies
• Reduce rated Supplies
• Zero-rated Supplies
• Exempt Supplies
• Zero Rated Vs. Exempt

MODULE 4: VAT REGISTRATION

• When to register for VAT?
• Who should register for VAT?
• Exceptions to VAT registration – when is it not required?
• Mandatory vs Volunteer VAT registration
• How do you consider the sale of Capital Assets when calculating a VAT threshold?
• VAT registration applicability on non-residents
• The concept of Group VAT registration

MODULE 5: DATE OF SUPPLY RULES

• Date of Supply Rules under VAT
• What are the special circumstances for the date of supply rules?
• For consecutive supplies (e.g. construction contracts)

MODULE 6: PLACE OF SUPPLY RULES

• How to establish the place of supply of any goods/services
• Place of supply of goods
• Place of supply of services

MODULE 7: VALUE OF SUPPLY RULES

• Determine the VAT amount under Value of Supply Rules
• Value of Supply
• Value of Import
• Effects of landed cost components and customs duty on VAT

MODULE 8: VAT EXEMPTIONS

• VAT considerations for selling exempt items
• Impact of VAT exemption on certain industries
• Residential buildings
• Financial services
• Bare land
• Local passenger transport
• Exemptions and suspension of VAT for imports

MODULE 9: VAT CALCULATION

• When should VAT be accounted for?
• Calculating Input VAT (Purchases)
• Calculating Output VAT (Sales, Services, Charitable Contributions, and Gifts)

MODULE 10: VAT ADMINISTRATION

• Filing VAT returns
• The timing for VAT Filing
• Case Study – VAT return filing
• Claim for VAT Refunds

MODULE 11: VAT PENALTIES

• Late payment penalties
• Error penalties
• Default interest rate

MODULE 12: VAT ON IMPORTS/ EXPORTS

• Calculating output VAT on exports
• Calculating input VAT on imports

MODULE 13: REVERSE CHARGE MECHANISM AND VAT ON IMPORTS

• The concept of Reverse Charge Mechanism
• Accounting entries in Reverse Charge Mechanism
• Tax calculation and reconciliation
• The implication of import VAT on shipments
• VAT on imports by unregistered persons

MODULE 14: VAT INVOICES AND RECORDS

• Layout of the VAT invoice
• Charging VAT on invoice price
• Keep track of VAT invoices

MODULE 15: FILING OF VAT RETURN

• Data and documentation requirements for the filing of VAT returns
• VAT return structure
• Understanding the different elements of VAT return
• Calculating and adjusting the Reverse Charged VAT
• Rightful claiming of input VAT on expenses
• Adjustment for the profit margin scheme
• Exempt supplies apportionment of expenses
• VAT refund application
• VAT payment