A VAT registered person making an annual turnover of taxable supplies not exceeding Rs. 10 million are normally required to submit VAT return on a quarterly basis.
However, he may opt to submit monthly VAT returns instead of a quarterly VAT return.
Below are the taxable periods that cover each quarter VAT return:
• Quarter ended 31 March: 01 January to 31 March
• Quarter ended 30 June: 01 April to 30 June
• Quarter ended 30 September: 01 July to 30 September
• Quarter ended 31 December: 01 October to 31 December
Turnover more than Rs. 10 million – Monthly return
A person whose annual turnover of taxable supplies exceeds Rs. 10 million is required to submit monthly VAT return. He is also liable to submit a list of taxable supplies made to any person, other than supplies by retail showing the invoice number and value of supply.
Where a registered person does not make any supply of goods or services and does not receive any goods or services, he shall nevertheless submit a nil return
What is the due date for submission of returns?
A return has to be submitted within 20 days from the end of the month or quarter to which it relates.
Where the last day for the submission of a VAT return falls on a Saturday, Sunday or public holiday, the VAT return may be submitted on the following working day.
Where a registered person submits both his VAT return and make payment electronically, the time for submission of the return and payment of tax is one month.
Where a return shows a tax payable and the return as well as the payment is not submitted by the due date, the vat registered person is liable to the following penalties and interest:
a. Penalty for non submission of return
Rs. 2,000 for every month or part of the month until the return is submitted provided that the penalty shall not exceed Rs. 20,000. Where the registered person is a small enterprise (turnover does not exceed Rs. 10M) , the maximum penalty shall not exceed Rs. 5,000.
b. Penalty for late payment of tax
A penalty of 10% on the amount of tax payable.
c. Interest
Interest of 1% per month on the unpaid tax from the date the tax remained unpaid to the date of payment