The VAT rate has been raised with 1%, from 14% to 15%, with effected date 1st of April 2018.
How does this impact your business? Below a few pointers and things to look out for:
1.Vendors need to advertise prices inclusive of VAT effective from 01/06/2018. Before this date, vendors may advertise prices with exclusive amount, as long as they specifically show this in prominent places on the advertisement.
2.You many not claim 15% VAT on invoices that 14% has been charged. Make sure to double check all invoices received from suppliers, to confirm the correct rate of VAT charged.
3.Any contract entered into before 1 April 2018, but goods will be delivered, or services rendered after the date, must be charged at rate applicable to the date delivered or rendered.
4.Delivered goods or services rendered before 1 April 2018, but invoiced after the date, must be issued with a invoice at 14%.
5.Any bad debt claimed after 1 April 2018, must be written back at the rate of the original VAT invoice.