Section 27E: VAT annual accounting system

27E. VAT annual accounting system (1) Subject to this section, a small enterprise may apply to the DirectorGeneral to operate the VAT annual accounting system on— (a) an accrual basis; or (b) a cash basis. V4 – 25 [Issue 10] Value Added Tax Act (2) Where a VAT registered person applies for its net income from business to be calculated in accordance with Sub-part D of Part VIII of the Income Tax Act, he shall be considered to have applied to operate the VAT annual accounting system on a cash basis. (3) A small enterprise which operates the VAT annual accounting system shall— (a) comply with such terms and conditions as the Director-General may approve; (b) within such time as may be prescribed, after the end of each of the first 3 calendar quarters in its accounting year, submit to the Director-General, a simplified VAT statement in such form and manner as the Director-General may approve; and (c) pay any VAT payable in accordance with subsection (4) or (5). (4) The VAT payable pursuant to subsection (3) (b) shall be— (a) in the case of a VAT registered person whose annual total turnover does not exceed 10 million rupees on 1 July 2015, 25 per cent of the amount of VAT payable in respect of the preceding accounting year, after adding back any allowable input VAT in respect of capital goods in that year; (b) in the case of a small enterprise which registers for VAT on 1 July 2015, 25 per cent of the estimated VAT payable for the accounting year, after adding back any input VAT in respect of capital goods which the small enterprise intends to acquire in the first accounting year after its VAT registration. (5) Where a small enterprise has in the relevant part of the first 3 quarters of an accounting year been supplied with capital goods and the input tax in respect thereof exceeds 50,000 rupees, the small enterprise may deduct from the VAT payable in accordance with subsection (4) the allowable input tax in respect of the capital goods. (6) Where the computation referred to in subsection (5) shows an excess of input tax over VAT payable, the balance may be claimed as a repayment. (7) Where the annual VAT return for an accounting year is not due before the due date for the submission of the simplified VAT statement referred to in subsection (3) (b) at the end of the first quarter in the succeeding accounting year, the basis for the computation of the VAT payable or claim for repayment for the statement in the succeeding accounting year shall be the accounting year immediately preceding the accounting year for which the VAT return is not due. (8) A small enterprise which operates the annual VAT accounting system shall, within such time as may be prescribed, after the end of every accounting year, submit to the Director-General, a VAT return, in respect of that accounting year, in such form and manner as the Director-General may approve, specifying such particulars as may be required in the return. [Issue 10] V4 – 26 Revised Laws of Mauritius (9) Where a small enterprise submits a return under subsection (8), the balance of output tax over input tax shall be adjusted by any tax payable or claimed as repayment in the VAT statements submitted in respect of the quarters ending in the accounting year. (10) Where the adjusted balance under subsection (9) shows— (a) an amount of VAT payable, that amount shall be paid within such time as may be prescribed; (b) excess VAT, the balance shall, subject to subsection (11), be carried forward onto the ret a small enterprise submits a return under subsection (8), the balance of output tax over input tax shall be adjusted by any tax payable or claimed as repayment in the VAT statements submitted in respect of the quarters ending in the accounting year. (10) Where the adjusted balance under subsection (9) shows— (a) an amount of VAT payable, that amount shall be paid within such time as may be prescribed; (b) excess VAT, the balance shall, subject to subsection (11), be carried forward onto the return for the following accounting year. (11) Where excess VAT shown by the adjusted balance includes input tax amounting to more than 50,000 rupees in respect of capital goods, the small enterprise may make a claim for repayment of the amount of input tax allowable in respect of capital goods. (12) Where a VAT registered person makes a claim for repayment pursuant to subsection (6) or (11), the Director-General shall, on being satisfied with the claim, effect the repayment to the VAT registered person within 45 days of the date of receipt of the claim or the documents requested in support of the claim, whichever is the later. (13) Where the application of a small enterprise to operate the VAT annual accounting system on a cash basis has been approved, it shall— (a) be considered to have made a supply in the accounting year in which the payment for the supply is received; (b) be considered to have received a supply in the accounting year in which payment for that supply is made; (c) subject to section 21, be entitled to take credit for input tax in respect of taxable supplies for which payment has been made; (d) be entitled to make a claim for repayment of VAT on submission of his statement or return, provided the excess includes VAT paid exceeding 50,000 rupees in respect of capital goods. [S. 27E inserted by s. 53 (h) of Act 9 of 2015 w.e.f. 1 July 2015; amended by s. 58 (g) of Act 18 of 2016 w.e.f. 1 September 2016.]