VAT return and payment guide

The Value Added Tax Unit has issued the Return and Payment Guide. According to Gwenneth Martin, Senior Assistant Comptroller in the VAT Unit, this Guide gives detailed information necessary for the completion of a return. “In order to file a monthly VAT Return a business must have readily available all the information it needs”, she said.{{more}}

The Guide explains all the steps necessary for the completion of the return. It explains how to the fill out the VAT return, which is due 15 calendar days after the end of the month. VAT was introduced on May 1st 2007. As a result every registered business is liable to file the first VAT return by the 15th June 2007.

There are penalties for incorrect returns and interest and penalties may be charged if the tax payment is found to be inadequate.

A business may keep its records in any format, provided the information needed is readily available and will enable the person concerned to make accurate returns. In addition, however, the information must also be readily available to an officer of the VAT Unit in the event of an audit. Records must be retained for at least seven years from the end of each taxable period.

“Records, good records, are an essential part of the VAT system” said Martin. “VAT is a self-assessment system but we, as a responsible part of the administration, must be able to check that taxpayers are also acting responsibly. To do this we will, from time to time carry out audits of business returns and records”. The records must be in English and in EC dollars. They are to be kept at the principal place of business which normally will be in St. Vincent and the Grenadines.