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TAXATION

AC 321B

Value Added Tax

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Value Added Tax (VAT)

Introduction

 

Advantages of VAT

Shortcomings of VAT

Basic principles of VAT in Tanzania

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Value Added Tax (VAT)

Introduction

VAT was introduced on July 1, 1998.

It partially replaces sales tax, stamp duty, hotel levy and entertainment tax

Value Added Tax is a broad-based consumption tax

It is charged on a wide range of goods and services and on

imports (taxable supplies)

Unlike sale tax it is levied at every stage in the production and distribution chain.

The tax base is the value added (incremental value) to goods and services.

The rate of tax is 20% standard rate or zero rate.

The tax is collected and paid by VAT registered traders who remit it to the revenue authorities monthly.

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Value Added Tax (VAT)

Advantages of VAT

 

VAT has been introduced as a tax reform measure.

The tax has several advantages over sale tax from the point of view of the government, business and the consumer.

Broad tax base

 

1)

In view of the broad tax base revenue yield is generally higher and stable and is less susceptible to fluctuations. Increased revenues are the major goal of VAT. The tax has some elements of self-checking mechanism to minimize evasion. One person’s out tax becomes the input tax of another. VAT facilitates cross checking of sales between traders.

2)

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Value Added Tax (VAT)

Advantages of VAT

 

Broad tax base

 

3)

As the tax paid on purchases of inputs if fully creditable it does not form part of the cost of business. Consequently, the tax does to some extent not influence business decisions. It creates a conducive climate for investors. Zero rating provision encourages exports because the tax on exports is refundable in a transparent and simple manner. Zero rating ensures that exports enter the international market free of tax to make them more competitive.

4)

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Value Added Tax (VAT)

Advantages of VAT

Broad tax base

5)

Administrative advantages: VAT is relatively less

6)

complex than sale tax. There is no multiplicity of tax rates. The registration threshold eliminates small business to minimize administration costs. Culture of maintaining business records is encouraged for proper assessment of the tax. Because of the wider tax base rates are likely to be

7)

generally lower Lower tax may be payable by consumers as “no tax on the tax” effect is possible with VAT (cascading effect)

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Value Added Tax (VAT) • Advantages of VAT – Broad tax base 8) VAT partly
Value Added Tax (VAT)
• Advantages of VAT
– Broad tax base
8)
VAT partly eliminates attempts by businessmen to split up
their businesses below the threshold in order to avoid the
tax because the tax paid on inputs is still payable and it can
not be claimed.
• Shortcomings of VAT
Regressivity:
1)
• Like all other indirect taxes VAT is regressive. Regressivity
is partially minimized by exempting most essential
consumer items like food and health supplies and the
continued use of the more progressive direct taxation.
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Value Added Tax (VAT)

Shortcomings of VAT

2)

Inflationary

If sufficient precaution is not taken during the introduction of VAT inflation is likely to occur as prices and wage rise.

Because some goods and services will be taxed at the lower or higher VAT rate than the previous sales tax rate inflation may not necessarily follow the introduction of VAT.

Some of the precautionary measures against possible inflation following the introduction of VAT are:

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Value Added Tax (VAT)

Shortcomings of VAT

2)

Inflationary

Some of the precautionary measures against possible inflation following the introduction of VAT are:

Sales tax paid on business stocks at commencement of VAT is set off against VAT payable in the first month of VAT regime. The set off removes double taxation on opening business stocks at the commencement of VAT.

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Value Added Tax (VAT)

Shortcomings of VAT

2)

Inflationary

3)

Some of the precautionary measures against possible inflation following the introduction of VAT are:

Conduct intensive public educational programme to inform businesses and consumers the expected effects of VAT on the general price level. Business records keeping

The claim that small business may find it difficult to maintain the required VAT records may be exaggerated.

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Value Added Tax (VAT)

Shortcomings of VAT

3)

Business records keeping

Proper business records are necessary for all businesses.

Adequate records are required for other taxes too such as income tax

It is more important to note that only businesses with Tshs.20 million or more turnover are required to register for VAT.

This threshold excludes most of the small businesses from registration.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Scope of VAT

VAT is charged on:

The supply of goods and services in Mainland Tanzania made by any taxable person in the course of or furtherance of his business. The supply of goods and/or services must qualify as a “Taxable supply”

The importation of goods and services by any person into Mainland Tanzania. The importer need not be registered for VAT purposes.

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Value Added Tax (VAT)

 

Basic Principles of VAT in Tanzania

VAT Rate Structure

 

VAT is charged at either 20% standard rate or zero rate.

Tanzania has opted for the single rate of 20% standard rate because a multiple rate structure complicates the administration of the tax leading to extra compliance cost.

The government has elected the use of exemptions against the multiple rate structure in order to realize specific social objectives

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Value Added Tax (VAT)

 

Basic Principles of VAT in Tanzania

VAT Rate Structure

 

A single rate structure keeps the tax system simple

It has the following advantages:

1)

A single tax rate system minimizes compliance costs, as tax administration is kept simple. The more the tax rates the higher the compliance costs and lower revenue yield. The choice of consumer items and production inputs is neutral because the effective rate of tax is the same for all taxable supplies. As a result there is no incentive for substituting the high tax supplies in favor of lower taxed supplies.

2)

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

VAT Rate Structure

It has the following advantages:

3)

A single rate structure avoids taxpayer attempts to forge tax

4)

returns and misclassify supplies in order to evade tax because all supplies are taxed at an uniform rate of tax. It reduces the number of refund claims as inputs are taxed at the same rate as outputs. Where inputs are taxed at a lower rate than outputs many refund claims are likely to arise. Such as a situation will tie up tax management resources administering the refunds instead of concentrating on resources to increase revenue collection.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

VAT Rate Structure

Where VAT has been paid in Zanzibar and the rate is equal to the rate in Mainland Tanzania tax shall be deemed to have been fully paid on the affected taxable supplies of goods and services.

However, if the VAT rate in Zanzibar is lower than that in Mainland Tanzania the difference has to be paid to Mainland Tanzania at the point of entry of the goods into Mainland Tanzania.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

VAT Rate Structure

This provision means that goods and services imported from Zanzibar into Mainland Tanzania are subjected to VAT. Zanzibar is thus treated as a foreign country.

Application of VAT

VAT is a multi-stage indirect tax.

It is levied by taxable persons on their taxable supplied made out and deduct the amount of VAT charged on inputs (supplies received by the business)

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Application of VAT

The balance is then paid or repaid to or from the revenue authority.

In other words the VAT agent pays the tax on his purchases and charges or collects tax on his sales and pays or remits the net amount to the government.

The tax charged on sales is called “Output tax” while tax charged on purchases including imports is referred to as “Input tax”

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Application of VAT

 

These two concepts are fundamental features of the VAT system

The netting off mechanism ensures that cascading or the phenomenon of “Tax on tax” is avoided because the value added only at each stage of production and distribution is taxed only once.

Therefore, the value of goods and services at the point of supply to the final consumer represents the aggregate of all incremental values added by successive businessmen

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Application of VAT

 

Similarly, the tax paid by the final consumer also represents the aggregate VAT paid by successive businessmen

The final consumer bears the full tax as he has no opportunity to sell to another person.

The tax on the supply of goods and /or services is generally the liability of the person making the supply.

The tax is normally payable at the time of supply.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Application of VAT

When an agent supplies the goods and/or services he

is liable to pay the tax on behalf of his principal.

Where a taxable person in Mainland Tanzania makes

a taxable supply directly to a person in Zanzibar the

Mainland’s tax authority will collect the output tax from the supplier in the Mainland and remit in Mainland Tanzania will deal with the Mainland tax authorities only.

Please note that Zanzibar and Mainland Tanzania have separate VAT legislations

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Supplies

A taxable supply is a supply of goods and/or services made in Tanzania other than an exempt supply.

Zero rated supplies are taxable supplies.

A “supply” is generally anything done for a consideration i.e. whether supply of physical goods or services rendered.

The most common type of supply is a sale of goods or services made in the course of carrying on a business.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

 

Supplies

 

Although there is no clear distinction between a supply of goods and a supply of services the law makes it clear that anything that does not constitute a supply of goods but is done for a consideration is a supply of services.

There are three major types of supplies

Taxable supplies including zero rated supplies and special relieve.

Exempt supplies

Supplies which are outside the scope of VAT.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

 

Taxable Supplies:

 

Taxable supplies are defined as “any supply of goods and or services made by a taxable person in the course of or in the furtherance of his business.”

The list of taxable supplies includes the following:

Gaming and betting of any kind such as gaming machines, lotteries, bingo, horses racing etc.

Gifts or loans of goods

Appropriation of goods for personal use or consumption

Barter trade and exchange of goods

Processing or treating of another person’s goods

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Taxable Supplies:

The list of taxable supplies includes the following:

Supply of power, heat or ventilation

Leasing or letting of goods on hire

Anything done for a consideration

A zero rated supply is a taxable supply but it is chargeable at zero rate

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Mahanga

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Taxable Supplies:

The tax on the registered businessman’s transaction is zero (nil output tax) but he is entitled to a refund claim of his tax paid on his purchases (input tax) unlike exemptions which provide a partial relief of tax, zero rating offers a complete

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Mahanga

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

The time of Supply

The time of supply or tax point is when the supply of goods or services is treated as having taken place.

It is the date on which the tax on the taxable supply (ies) becomes chargeable or due and payable.

A taxable person must account for VAT in the prescribed accounting period in which the supply occurs.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Place of Supply

The place of supply determines where the VAT liability arises.

Goods are deemed to be supplied in Mainland Tanzania if they are supplied within the country or if they are assembled or installed within the country.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Place of Supply

Services are deemed to be supplied in Mainland Tanzania if the supplier has a place of business within Mainland Tanzania and nowhere else or the supplier is normally resident in Tanzania or the supplier has several places of business Mainland Tanzania and elsewhere but the place of business most concerned with the supply of the service is in fact Mainland Tanzania.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Value of Supply

The value of a supply depends on whether or not it is for monetary consideration.

Where the consideration is not monetary or is partly for monetary and partly non-monetary value the open market value constitutes the taxable value.

The “open market value” is deemed to be:

The value at which the goods or services would fetch in the ordinary course of business where the supplier and the purchaser are not related (independent of each other) the law sets out specific assumptions in the determination of market value.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Value of Supply

The “open market value” is deemed to be:

The supply is treated as delivered to the recipient at the supplier’s place of business

The recipient will bear freight, insurance and other costs incidental to the supply and delivery of the goods.

The supplier will bear any duty or tax (except VAT) and the value covers the right to use the patent, design or trademark in respect of the supply.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

 

Exempt Supplies

 

Where a supply of goods or services is exempt from VAT no tax is chargeable on it.

The supplier of an exempt good or service can not charge VAT on these supplies to his customers.

Exemption from VAT means that VAT incurred on business purchases used in the production of the exempt supplies can not be reclaimed.

Exemption also means that where all output supplies are exempt from VAT the businessmen can not register for VAT and therefore no reclaim of VAT on inputs may be made.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

 

Exempt Supplies

 

1. Food, crops and livestock supplies

2. Pesticides , fertilizers etc

3. Health supplies

4. Educational supplies

5. Veterinary supplies

6. Books and newspapers

7. Transport services

8. Housing and land

9. Finance and insurance

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Exempt Supplies

10. Water

11. Funeral services

12. Crude oil and petroleum products

13. Agricultural implementations

14. Tourist services and tourist charter services

15. postal supplies

16. Aircraft maintenance

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Supplies which are outside the scope of VAT

Unlike zero rated and exempt supplies there is no comprehensive or statutory list of supplies that is outside the scope of VAT.

The sale of a business as a going concern

Where the assets of a business are sold or transferred the transaction generally constitutes a taxable supply for VAT purposes

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Special Reliefs

The list of special reliefs is in the Third Schedule.

The supplies eligible for the special reliefs are taxable but the tax is remitted because of the social or economic status of the individuals or organization concerned.

Taxable Persons and VAT Registration

A taxable person is one making taxable supplies or intending to make taxable supplies

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

VAT registration and de-registration

A person is required to register for VAT if his annual taxable turnover exceeds Tshs.20 millions in a year.

In determining the taxable turnover he must aggregate the taxable turnovers of all his businesses carried out under the same legal entity including both standard rated and zero rated supplies.

Registration must be completed within 30 days after incorporation and becoming liable for registration.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

 

VAT registration and de-registration

 

The certificate of registration and his taxpayer identification number (TIN) and VAT business, the date of registration number.

The certificate must be displayed conspicuously at the principal place of business.

TIN and VAT registration numbers must be quoted in all returns

Registration is required where a person is eligible for registration

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

 

VAT registration and de-registration

 

There is no provision for group registration of companies.

Each company within the group must register separately.

Registration is a statutory requirements

It is not voluntary or contingent upon realization of taxable turnover in excess of the registration threshold.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

VAT registration and de-registration

Where an investor is registered for VAT purposes the VAT payable on any capital goods imported or purchased locally is deferred to the date of commencement of production.

The VAT deferral is applicable whether or not the investor holds a certificate of investment under the Tanzania Investment Act, 1997

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

VAT registration and de-registration

De-registration: Section 21 provides that any person who ceases to be liable for VAT registration is required to notify the Commissioner for VAT (C-VAT) within 30 days after ceasing to be liable.

Failure to do so is an offence which is liable to a fine of Tshs.50,000 upon conviction by a competent court of law.

If the C-VAT is satisfied that a person is no longer required to be registered he may cancel the registration and notify the taxpayer accordingly.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

VAT registration and de-registration

Obviously the C-VAT will only cancel the registration after ensuring that any outstanding VAT on supplies or closing stocks is fully paid.

Disclosure and Accounting for VAT

VAT must be accounted for at the time of supply.

In order to account for the tax appropriate accounting records must be maintained for at least five years.

The return must be filed on or by the last day of the month following the end of a prescribed period.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Disclosure and Accounting for VAT

The return must contain information on the supply of goods and services made by him or to him, imports, tax deductions or credits and clearly show the net tax payable or repayable.

The Tax Invoices

When a person supplies goods or services to another person he must issue a tax invoice.

This is a document containing information on what is sold, the output VAT, TIN, and VAT registration numbers of both the supplier and customers etc.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

The Tax Invoices

The tax invoice must be supplied within 14 days of making the supply

Where the output tax exceeds the input tax payment must be made to the Commissioner.

In the case of a repayment i.e. the input tax exceeds the output tax on supplies for the prescribed period the Commissioner will refund the amount.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Calculation of VAT

Output tax is VAT charged to customers on all taxable supplies during the prescribed period of one month.

The tax is not necessarily collected immediately in cash because some of the sales are on credit

Input tax is VAT paid on all goods and services supplied to a taxable person during a prescribed period of one month.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Calculation of VAT

It may include input tax paid in Zanzibar if the goods are imported into Mainland Tanzania for use in business as well as the input tax on goods or services imported from overseas other than Zanzibar.

The VAT claimed must be evidenced by a tax invoice which must not be more than twelve months old.

The input tax can only be fully claimed if all the supplies are taxable supplies i.e. all the supplies are standard or zero-rated

If this is not the case the input tax requires apportionment

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Input Tax Restrictions

The input tax may be restricted in relation to sales or purchases.

Input tax can not generally be claimed on motor vehicles constructed for over one up to 12 passengers, under 3 tons and not considered a special purpose vehicle and on entertainment expenses.

Where the business has exempt supplies as well as taxable supplies the input VAT reclaims will be restricted in relation to the sales.

A business with wholly exempt supplies can not claim any input tax

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Documentary proof required to support deduction of input tax

A deduction of input tax can be made in respect of supply only if:

Tax invoice has been provided in relation to the supply and has been retained as a record by the recipient as at the time the VAT return is furnished

In the case of the input tax on the importation of goods a customs single bill of entry is produced as the documentary proof and the extend of how it applies to the taxable supplies.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Methods of apportionment of input tax

Where goods or services are acquired partly for consumption, use or supply in the course of making taxable supplies and partly for other purposes, it will be necessary for a taxable person to apportion the full amount of VAT charged to him on the acquisition of the goods or services in order to determine what portion of the full amount of VAT qualifies as deductible input tax.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Methods of apportionment of input tax

There are two methods of apportioning input tax however, a taxable person may choose to use either method, but once a method has been used in any lodged return, the same method must be used thereafter in any return lodged in the same accounting year.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Methods of apportionment of input tax

First Method

1)

Calculate the value of taxable supplies made in the

2)

prescribed accounting period Calculate the value of all supplies made in that period

3)

Calculate the amount of tax payable on supplies made to

4)

the registered person in that period. (Total Input Tax) Divide the amount (obtained in step 1 for the period) by the amount obtained in step 2 (the value of all total supplies made in the period)

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Value Added Tax (VAT)

 

Basic Principles of VAT in Tanzania

Methods of apportionment of input tax

 

First Method

 

5)

The amount of input tax to be claimed as a deduction or credit in the prescribed accounting period is the product obtained by multiplying the amount obtained in step 3 by the amount obtained in step 4

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Value Added Tax (VAT)

 

Basic Principles of VAT in Tanzania

Methods of apportionment of input tax

 

Second Method

 

1)

Divided input tax for the prescribed accounting period into categories viz

 

a .CategoryA:Inputtaxthatisdirectlyattributableto

taxablesupplies

b.CategoryB:Inputtaxthatisdirectlyattributableto

exemptsupplies(thishasbeenamendedin2000)

c.CategoryC:Inputtaxthatispaidforthepurposesof

thebusinessbutisnotdirectlyattributableeitherto

taxableorexemptsupplies

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Value Added Tax (VAT)

TheTaxablepersonindicatesthroughhisrecordsthatduringthemonthofJune2005,VATwaspaidonhis

purchasesasfollows:

 

NO

ITEM

VALUE

VAT TSHS.

VAT INCLUSIVE TSHS.

a

Sugar

50,000

10,000

60,000

b

Cooking Oil

75,000

15,000

90,000

c

Laundry Soap

60,000

12,000

72,000

d

Transportation of whet Flour & Maize

10,000

2,000

12,000

e

Bags of re-packing wheat

12,500

2,500

15,000

f

Tax invoice books

37,500

7,500

45,000

g

Electricity

10,000

2,000

12,000

h

Telephone

12,500

2,500

15,000

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Value Added Tax (VAT)

 

lsoduringthesamemonths,,thetaxablepersonsuppliedgoodswiththev aluesindicatedbelow

A

 
 

NO ITEM

VALUE

VAT TSHS.

VAT INCLUSIVE TSHS.

a Sugar

 

60,000

12,000

72,000

 

b Cooking Oil

90,000

18,000

108,000

 

c Laundry Soap

80,000

16,000

96,000

 

d Toilet Soap

100,000

20,000

120,000

 

e Wheat Flour

40,000

Exempt

40,000

 

f Maize Flour

30,000

Exempt

30,000

Use the two methods to compute the VAT Amount to be paid or claimed

 

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Value Added Tax (VAT)

 

FirstMethod

   
 

Step 1 : The Value of Taxable supplies made is

 

a sugar

   

60,000

 

b Cooking oil

 

90,000

 

c Laundry soap

 

80,000

 

d Toilet soap

 

100,000

 

Total

 

330,000

 

Step 2: Value of all supplies made is

 
 

e Sale of wheat flour

 

40,000

 

f Sale of maize flour

 

30,000

 

Total(Step1and2)

 

400,000

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Value Added Tax (VAT)

 

FirstMethod

   
 

Step 3 : Tax payable on supplies made to the registered person

 

a sugar

   

10,000

 

b Cooking oil

 

15,000

 

c Laundry soap

 

12,000

 

d Transportation of wheat flour & maize

 

2,000

 

e Bags for re-packing wheat flour

 

2,500

 

f tax invoice books

 

7,500

 

g electricity

 

2,000

 

h telephone

 

2,500

 

Total

 

53,500

 

Step4:330,000divideby400,000=0.825

 
 

Step5:Amountofinputtaxtobeclaimedis53,500x0.825

 

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Value Added Tax (VAT)

 

Se condMethod

 
 

Step1:a.C ategoryA:Inputtaxdirectlyattributabletotaxablesupplies

a sugar

 

10,000

 

b Cooking oil

15,000

 

c Laundry soap

12,000

 

Total

37,000

 

b.CategoryB.InputTaxdirectlyattributabletoexemptsupplies

 

d Transportation of wheat flour and maize

2,000

 

e Bags for re-packing wheat flour

2,500

 

Total

4,500

c.CategoryC:Inputtaxpaidforthepurposesofthebusinessbutisnotdirectlyattributableeitherto

 

taxableorexemptsuppliers

 

f Tax invoice books

7,500

 

g Electricity

2,000

 

h Telephone

2,500

 

Total

12,000

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Value Added Tax (VAT)

 

SecondMethod

 
 

Step2:

 

a Input tax in Category A

37,000

 

b Input tax in Category C

12,000

 

Total

49,000

 

DeductibleInputTax:

Ratioobtainedunderstep4ofthefirstmethodis0.825

 

Multiplybytheinputtaxoncategory“C”Tshs.12,000

0.825x12,000=9,900

AmounttobeclaimedisTshs.37,000+9,900=46,900

 

Note:

The second method of apportionment was amended by the VAT (General Amendments) Regulations 2000 Input tax attributable directly to exempt supplies can not be included in the calculation and is not allowed to be claimed.

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Value Added Tax (VAT)

Basic Principles of VAT in Tanzania

Offences, Penalties and Interest

As in all tax legislation’s various types of non- compliance errors, mistakes or omissions committed by a taxpayer attract specific penalties.

It is therefore in the interest of the taxpayer to comply with the law as far as possible.

Some of the major offences and the appropriate penalties are stated

1 .Failuretoregister

» The penalty if a fine not exceeding 200,000 or imprisonment for a term not less than two months but not exceeding twelve months

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4/20/2009

 

Value Added Tax (VAT)

 

Basic Principles of VAT in Tanzania

Offences, Penalties and Interest

2 .F ailuretofileaV ATreturnorpaytax

 

»

The penalty for failure to file is a fine of Tshs.50,000 or 1% of the declared tax payable which is ever the greater.

 

.Failuretoissueataxinvoice/receipt

3

 
 

»

The penalty is a fine not exceeding Tshs.200,000 or imprisonment for a term not exceeding twelve month or to both such fine and imprisonment.

 

.Penaltyforfraudulentreturnortaxevasion

4

 
 

»

Upon conviction, such person shall pay the tax which would have been paid had the offence not been committed and in addition shall pay fine of Tshs.2,000,000 or be imprisonment for a term of 2 years or both.

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Value Added Tax (VAT)

 

Read about interest on tax overpaid /refund

Appeal

 

Powers of the Commissioner VAT

 

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