St. Kitts – Nevis Buisness Owners Register For Higher Taxes

St. Kitts - Nevis PM - Dr. Denzil Douglas

PM Douglas – Labour Party PM That Created VAT
Photo By Erasmus Williams

Basseterre, St. Kitts – Nevis
October 29, 2010 (CUOPM)

Over 400 businesses in St. Kitts and Nevis have registered under the Value Added Tax (VAT).

Businesses and individuals are required to register if they generate gross annual income of EC$150,000 or over or if they meet threshold over the past 12 months.

According to the Tax Reform Unit, most of these businesses have been issued with Certificates, which must be prominently displayed.

A business’ annual gross TAXABLE income determines the business’ eligibility to register for VAT. Only a VAT registered business is authorized to charge and collect VAT.

Businesses collect VAT on behalf of the State and must be paid into the Inland Revenue Department on time.

A Business is required to file monthly returns by the 15th day of each month following the tax period to which it relates. Payment is also due at this time.

VAT is charged on supplies made or sales to customers (output tax) less VAT paid to suppliers (input tax) = the amount of VAT payable/refundable.

All prices charged, advertised or quoted by a registered business must include VAT at the applicable rate. (17% for standard rated supplies).

All invoices and receipts must clearly display the total amount of VAT paid.

VAT registered businesses need a valid tax invoice with their VAT number indicated on it as documentary proof of any input tax claims.

“If you are unable to produce a valid tax invoice containing the required information, your deduction would be denied by auditors from the IRD,” said a tax information brochure.

It stated that goods exported to clients in an export country are charged with VAT at 0%.

“However, if delivery takes place in the Federation, you must charge VAT at 17% to your customer. One may not claim any input tax on goods or services acquired to make exempt supplies or for private or employee use or any other non-taxable purposes. Also, as a general rule, input tax may not be claimed where the expense incurred is for the acquisition or maintenance of a passenger vehicle, entertainment, or for any membership fees or subscriptions paid on behalf of the business, even if used in making taxable supplies,” the brochure disclosed.

Businesses are required to advise the Inland Revenue Department within 21 days of any changes in your registration particulars, including any change in authorized representative, business address, banking details, trading name, or cease in trading.

If a business has underpaid VAT as a result of a mistake in calculating VAT payable for a tax period, an application must be made to the Comptroller of Inland Revenue to make an addition or alteration to that VAT Return, rather than making any adjustments to subsequent VAT returns or leaving it for the Inland Revenue Department auditors to detect.

Fraudulent activities are to be reported to Inland Revenue Department by calling 467-1931/1934 or 469-5521 and incidents can be reported anonymously by emailing info@sknvat.com.

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