Input Tax Credit prior to registration

Input Tax Credit prior to registration

After registration, the taxable person shall be allowed a credit for VAT input tax paid or payable in respect of:

a) All taxable supplies of goods, including capital assets acquired by the person prior to his/her registration;

b) All imports of goods, including capital assets made by the person prior to his/her registration.

The conditions of such relief as a credit above shall be determined as follows:

a) The goods shall be purchased for taxable sales or for use in producing taxable supplies by the taxable person;

b) The goods listed in the inventory shall be in hand at the effective date of registration;

c) The supply or import occurred not more than 60 days prior to the effective date of registration;

d) A claim shall be made in the form prescribed by the Tax Department.

e) Clear and proper documentary evidence shall be produced to satisfy the Tax Department that the taxable person has paid the tax that can be allowed as a credit