At law, in transactions involving VAT traders, the absence of a clear segregation of the VAT component from the agreed-upon price implies that VAT is inherently integrated into the total amount paid. In the absence of a clear distinction being made of the VAT component from the consideration paid or rather if provision is not made for the VAT from the price agreed upon with the buyer(the tenant in this case), then VAT is deemed to have formed part of the price invoiced. In this case the 18% VAT already forms part of the rent that’s currently being paid by tenants, regardless of whether or not there was an express agreement to the contrary from the beginning.
Category Archives: VALUE ADDED TAX
A TAX PAYER’S GUIDE TO VAT WITHHOLDING.
MARK RUHINDI There has been confusion amongst the business community arising from the changes in VAT compliance ushered in by the recent public notice by URA requiring VAT withholding agents to begin withholding VAT effective 1st December 2021, with many confusing VAT withholding rules and the rules underpinning the concept of VAT in general orContinueContinue reading “A TAX PAYER’S GUIDE TO VAT WITHHOLDING.”