Basic and Advanced VAT Training at PwC Namibia Business School

What is Basic and Advanced VAT Training?

An advance VAT return (also called preliminary VAT return) describes the registration of the generated VAT by sales of a company subject to VAT to the tax office.

Overview

This course is a comprehensive interactive training course designed for people who are responsible for any aspect of an organisation’s VAT obligations. It is ideal for those who have never undergone a structured VAT training course, or for those who wish to undergo a comprehensive VAT refresher course.

Frequently Asked Questions

Is VAT applicable on advance received?

Advance payments received against a supply of goods or services are subject to VAT, provided the supply is taxable. The supplier must raise an invoice for the value of the advance payments.

Is VAT payable on a refundable deposit?

Note that VAT is not due on returnable security deposits such as breakages deposits on holiday accommodation. What if the sale is cancelled? If the sale is cancelled before the goods or services are delivered the business may refund the deposit to the customer and reverse the VAT accounted for on it.

Is VAT applicable on advance payment in KSA?

An advance payment in KSA that is part of the consideration and intended to be applied against a service, is subject to VAT on the receipt date, provided that the related supply is taxable and no other tax point preceded the payment, i.e. no invoice issued or supply delivered.

What is advance tax invoice?

The supplier has to issue a receipt voucher to the person paying in advance. The receipt voucher will contain details like amount of advance, the rate of tax applicable, description of goods or services, etc. Calculate Tax on Advance Received.

How do I invoice an advance payment?

• The name and address of your company.
• The name and address of the client.
• A unique invoice number.
• The details of the VAT.
• Date of invoice.
• Clearly defined services and products.
• Clear payment terms and time frame.

Are advances from customers subject to VAT?

As income, the cash deposits/advances are thus subject to value added tax (VAT) or percentage tax (PT), whichever is applicable.

Should I pay VAT on a deposit?

You must declare VAT on the deposit when you receive it, or when you issue a VAT invoice, whichever happens first. If you keep a deposit if your customer decides not to take up the goods or service, VAT remains due on the money you have received.

What is advance receipt voucher?

This voucher is the proof that payment has been received. A supplier of services is also required to calculate GST on the advance received and pay it to the government. Note: A supplier of goods is not required to pay GST on advances.

What are the 3 types of VAT?

There are three categories of supplies that can be made by a VAT vendor: standard-rated, zero-rated and exempt supplies.

Can you prepay VAT?

A prepayment is a current asset of the business. At the time when you actually receive the service, the cost moves from the balance sheet to the profit and loss account, and becomes a day-to-day running cost of the business. If your business is registered for VAT, then you always account for prepayments net of VAT.

What is the VAT rate in 2021?

Further announcements extended the time for which the 5% VAT rate would apply, with the rate increasing to 12.5% on 1 October 2021 for a limited period, before reverting back to 20% on 1 April 2022.

Should a rental deposit include VAT?

VAT is not payable on the sum deposited with the landlord as a supply is not being made at that time, but once the landlord draws on the rent deposit as a result of tenant’s default and if the landlord has exercised the option to tax, VAT will be payable on the amount drawn down.

Can VAT be paid in installments?

You can consider the following options if you are unable to pay VAT: 1) Time to Pay arrangement with HMRC (TTP). HMRC may allow you to make outstanding VAT payments through monthly instalments across a maximum of 12 months.

Are advances taxable?

Advances. Payments you make to your employees for services they’ll perform or complete in the future are taxable wages for payroll tax purposes. Advances aren’t taxable wages if the employees are legally obligated to repay the advanced amounts.

Is income received in advance taxable?

As amounts are taxed at the earlier of receipt or accrual, these advance payments are included in a taxpayer’s taxable income in the year in which they are received.

Are advances subject to withholding tax?

This would meant that the deposit or advances are income of the Firm that is subject to 12% value added tax in the Philippines.