In a normal scenario, liability to charge and pay VAT to the authority is the responsibility of the registrant supplier. However, where registrant recipient pays the VAT, which is called payment under the reverse charge. Usually, import of goods and services fall under reverse charge category. However, Article 48 of the decree-law illustrates the instance where VAT shall become payable on a reverse charge basis.
1. On import of concerned goods or concerned services by the taxable person for business use, the taxable person shall be responsible.
2. When the final destination of goods is another implementing state then the taxable person shall pay VAT using the specified payment method of the authority.
3. In case the import of concerned goods or concerned services is by the non-registered person t the en tax shall be paid to the authority before releasing of goods.
4. Where the person who imports concerned goods is not registered by uses the help of an agent who acts on behalf of the person for the purpose of import. In such a case:
- Agent shall be responsible for payment of tax on import.
- Tax paid by the agent on behalf of the person shall form part of the return of the agent as through has imported the goods himself.
- Agent shall not reduce the liability to pay tax by any import tax paid on behalf of another person.
The statement issued by an agent to a person shall contain following details:
- Name, address, TRN of agent
- Date of issue of statement
- Date of import
- Description of import of relevant goods
- Amount of tax paid by the agent
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