Section 72 of VAT Act, Cap 148 (R.E 2023) allows a taxable person a tax credit for an amount of input tax incurred for the respective period.
There is a possibility that you are doing it wrongly…
Through Civil Appeal No. 529 of 2023 between Jack’s (Tanzania) Limited vs Commissioner General “TRA” regarding a tax credit for input VAT gives highlights what are required before applying the tax credit on input VAT you incurred in your business operations.
This is how it’s supposed to be done…
Having fiscalized receipts alone are not sufficient evidence to claim input VAT;
Taxpayers should be able to provide extra substantive evidence that an actual and completed taxable supply did occur in order to claim input VAT. Examples of such evidence would be proof of;
Delivery
Payment evidence
Store registers
Job cards, etc.
Botton line
EFD receipt without other genuine evidences that justify that the transaction took place would not be fit for tax purposes, leading to a risk of disallowance for VAT and Corporate Income Tax purposes;
CEO you are encouraged to maintain good accounting practices by maintaining clear evidence to support your transactions.
To get tax support, contact HALA Consultants team;
info@halaconsultants.co.tz
+255 752 187 434
There is a possibility that you are doing it wrongly…
Through Civil Appeal No. 529 of 2023 between Jack’s (Tanzania) Limited vs Commissioner General “TRA” regarding a tax credit for input VAT gives highlights what are required before applying the tax credit on input VAT you incurred in your business operations.
This is how it’s supposed to be done…
Having fiscalized receipts alone are not sufficient evidence to claim input VAT;
Taxpayers should be able to provide extra substantive evidence that an actual and completed taxable supply did occur in order to claim input VAT. Examples of such evidence would be proof of;
Delivery
Payment evidence
Store registers
Job cards, etc.
Botton line
EFD receipt without other genuine evidences that justify that the transaction took place would not be fit for tax purposes, leading to a risk of disallowance for VAT and Corporate Income Tax purposes;
CEO you are encouraged to maintain good accounting practices by maintaining clear evidence to support your transactions.
To get tax support, contact HALA Consultants team;
info@halaconsultants.co.tz
+255 752 187 434