Getting Tax registration number (TRN) is not the end if VAT journey. Once TRN is obtained, the registrant is required to comply with various another statutory requirement like the issue of tax invoice, maintaining books of accounts, record keeping, the filing of returns etc.
In this article, we will discuss VAT compliances after obtaining TRN
The issue of tax invoices:
- Any registrant making a Taxable Supply shall issue an original Tax Invoice to the Recipient for the goods and services supplied to the recipient
- Any registrant making a Deemed Supply as well shall issue an original Tax Invoice to a Recipient if available for the goods and services supplied
- In case no recipient is available, the registrant shall keep the tax invoice in his records
Details to be mentioned in a tax invoice can be read here.
Maintaining books of accounts:
- Accounting books in relation to the business including:
- records of payments and receipts,
- purchases and sales,
- revenues and expenditures,
- and any business, and any matters as required under any Tax Law or any other applicable law, including:
- Balance sheet and profit and loss accounts.
- Records of wages and salaries.
- Records of fixed assets.
- Inventory records and statements (including quantities and values) at the end of any relevant Tax Period and all records of stock-counts related to Inventory statements.
- For a period of (5) years after the end of the Tax Period to which they relate in the case of a Taxable Person. Meaning for 6 years in total
- Any records related to a real estate required to be kept shall be held for a period of 15 years after the end of the Tax Period to which they relate. Meaning for 16 years in total.
- The standard Tax Period applicable to a Taxable Person shall be a period of three calendar months ending on the date that the Authority determines
- As an exception, the Authority may assign a Person or class of Persons a shorter or longer Tax Period where it considers that a non-standard Tax Period length is necessary or beneficial
- A Tax Return must be received by the Authority no later than the 28th day following the end of the Tax Period concerned or by such other date as directed by the Authority. Meaning, tax return should be filed on or before 28th of April for the tax period ending on 31st
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