ZRA has recently circulated a reminder that VAT registered companies are required to retain documents relating to VAT supplies and claims for a period of at least 6 years
REQUIREMENT TO MAINTAIN RECORDS AS A VAT REGISTERED SUPPLIER
With COVID 19 and health restrictions that have to be followed, the VAT team will be sending tax information using the online platform until further notice. This week we are focusing on tax records to be maintained as a VAT registered supplier.
Generally, as a VAT registered supplier, you are mandated by law to keep your records that support supplies made, deductions or credits shown on your tax return until the period of limitations for that tax return runs out. That is the primary source of information in preparing future tax returns and making computations. The records must be maintained and retained for a minimum period of 6 years.
Every taxable supplier must maintain a record of supply of goods and services supplied or received, including imported goods, specifying the nature of goods, quantities and value of each supply including a record of all payments made or received. The supplier must also record tax on all supplies made, input tax deducted or claimed and net amounts.
Significant records to be maintained:
- Sales daybook, invoice books, till rolls and daily gross takings
- Purchase day book and purchases invoices
- Cashbook and asset register
- Annual accounts
- Bank statements and deposit books
- Stock records, stock counts, reconciliations and production records
- Logbooks and gate passes
- Any other document used for the purpose of the business
- False reporting, none or late filing and none or late payment of taxes due attracts penalties and interest.
- Retention of tax invoices and credit notes is for a minimum period of six years.
- Withholding VAT certificates can be generated immediately after invoice issuance.
- Correction of errors discovered on a filed return is made in the next return.
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