A VAT number, primarily called a VAT Registration Number VAT number Is also known OR famous by the name of
- TIN Number
- Value Added Tax Registration Number
- TIN Registration Number
- Tax identification number
- Sales Tax Number
- Sales tax Registration Number
- VAT identification number
- Company vat number
- VAT NO
- VAT ID NO
- TIN NO
- TIN ID NO
VAT Number Basic Knowledge
TIN Registration Number OR TIN Number or VAT Registration Number is an alphanumeric number consisting of up to 15 characters like ( TIN NO e.g. 248011544378) TIN Registration Number OR TIN Number or VAT Registration Number is confirms that you are Vat Registered dealer under sales tax department
What Is VAT
Value added tax is a general, broadly-based consumption tax that is calculated as a percentage of price. A VAT is assessed on goods consumed. Goods sold for immediate export to foreign customers are normally not subject to VAT.The rate of VAT and sums of VAT are calculated in accordance with the appropriate regulations in force at the time of any transaction.The standard rate of VAT as at least 10 to 15 percent. Member states individually determine their own specific rates at or above that figure.
History of VAT
VAT was first implemented in the United Kingdom in 1977. The legislation was modified piecemeal many times in the following decades, particularly as the European Economic Community grew and evolved. In 2007, EU Directive 2006/112/EC formalized those modifications into a new overview of the legislation current at that time.
Who have to Pay VAT
VAT applies with few exceptions to any commercial activity, including,the production of goods and the distribution of goods. It is a consumption tax, meaning that it is borne by the end user or customer However, any number of intermediaries may pay VAT on a product as it moves along its distribution pathway, these intermediaries claim the tax back as part of their accounting operational procedures. The only end user user or last user or last coustomer cannot claim the tax back because is the end use of product
To whom should have VAT No
Any one buying or selling goods or products directly or indirectly for his business or in connection to the business any business proceeding business in a VAT country should apply for a VAT number. This is a legal requirement of any corporate entity and regular VAT returns filing in sales tax department is also require for any corporate entity. Proceeding business does not necessary that doing sales or purchases of goods; it is also compulsory upon shippers of goods and organizers of trade shows and conferences to apply for a VAT number. A company is also eligible to reclaim VAT tax charged on its purchase bill unless it is an end user.
Brokers commission or mercantile agents and other agent
A non resident dealer or any agent of his
Co-operative society associations or clubs
A casual trader
A person involved in disposal of confiscated goods or goods or goods that are unclaimed or goods that are scrap and other general unwanted goods
Banking any insurance companies who are involved in buying selling or supplying goodsall this should have VAT No
What is Input tax of VAT
Input tax of VAT means any register dealer paid some Per Cent tax on purchased taxable goods from any register dealer within the state that some Per Cent tax on purchased taxable goods its call Input tax.
What is output tax of VAT
Output tax of VAT means any register dealer collect some Per Cent tax on sales taxable goods to any register dealer within the state that some Per Cent tax on salestaxable goods its call output tax
What is Input tax credit (ITC) of VAT
Input tax credit (ITC) means Input tax is more than output tax that difference amount of tax is called input tax credit (ITC) of VAT.Any corporate entity or Manufacturer or small trader or dealer will get input tax credit (ITC) tax of tax paid if it is not end user. VAT input tax credit is refundable tax if you have input vat tax credit is more than output tax
In simple word we can say if purchased goods of $1100 and sale goods of $1100 vat tax rate is 10 % so in that situation input tax and output tax is equal so Input tax credit (ITC) of VAT is zero but if purchased goods of $100 and sale good $ 200 vat rate is 15 % so in that situation output tax is more than your input tax so in that situation dealer have to pay tax to the sales tax department if purchased goods of $100 and sale good $ 50 vat rate is 15 % so in that situation input tax is more than your output tax so in that situation dealer get input tax credit of vat.
No credit is available in case of inter-state purchases. If purchases goods from inter-state that is deal with CST
"send your query or question in comment box"