VAT registration can be voluntary or compulsory.
A person has to apply for compulsory registration:
(I) If his annual turnover of taxable supplies exceeds or is likely to exceed 6 million rupees; or
(II) His annual turnover does not exceed 6 million rupees, but he is engaged in any of the businesses and professions mentioned below:
- Accountant and or auditor
- Advertising agent
- Adviser including investment adviser and tax adviser
- Architect
- Attorney and/or solicitor
- Barrister having more than 2 years standing at the Bar
- Clearing and forwarding agent under the Customs Act
- Consultant including legal consultant, tax consultant, management consultant and management company
- Customs house broker under the Customs Act
- Engineer
- Estate agent
- Land surveyor
- Marine surveyor
- Motor surveyor
- Notary
- Optician
- Project manager
- Property valuer
- Quantity surveyor
- Sworn auctioneer
- General Sales agent of airlines
- Agents in the importation of second hand cars and other vehicles
- Provision of banking services and/or management services
- Credit card issuer
VAT Returns: Monthly or Quarterly
A VAT registered person whose annual turnover of taxable supplies exceeds Rs 10 million has to submit monthly VAT Returns.
Where the annual turnover does not exceed Rs 10 million, he has to submit returns at the end of quarters ending 31st March, 30th June, 30th September and 31st December.
Due Date for Submission of Returns
A return has to be submitted within 20 days from the end of each month or quarter to which it relates.
The time for submission of return and payment of tax is one month if the return and payment are made electronically.
Contact us for VAT registration and for filing of your VAT returns.