In order to provide for these program and services, the government needs revenues. Value added tax indirect tax levied at either 0% or 14% flat rate. Lecture notes on goa value added tax linkedin slideshare. Meaning of tax tax is the principal source of revenue to government of. Its principal purpose is to provide comprehensive teaching tools laws, cases, analytical exercises, and questions drawn from the experience of countries and organizations from all areas of the world. Successive finance acts have made amendments to the law which has also been consolidated, most recently by the value added tax act 1994 vata 1994. Value added tax vat value added tax vat is an indirect tax. Apreh siaw 2005 research methodology lecture notes page 11 30. This book integrates legal, economic, and administrative materials about value added tax. A value added tax is sometimes advocated as a way of improving a countrys international competitiveness because gatt rules permit the tax to be levied on imports and rebated on exports. Bel 300 taxation notes for university of pretoria these taxation notes had been brought to you courtesy of melissa sophia wicht. Chapter eight value added tax the panel developed and analyzed a proposal to adopt a value added tax vat that would replace a portion of both the individual and corporate income taxes. Lecture notes on vat as amended value added tax invoice scribd.
The paper also looks at the adoption of vat in other federal states and how the states have been able to. Vat will add an additional layer to these existing requirements. Chapter iii value added tax guide to philippine taxes 148 sec. General principles for the tax on value added article 59. Yale university november 28, 2010 1 fiscal policy to study questions of taxation in the neoclassical growth model, we need to extend it to allow for government spending and taxation. The pdf version of the notes for vat value added tax is attached for free and easy download at the bottom of this thread.
Vat is a multistage tax levied at each stage of the value addition chain, with a provision to allow input tax credit itc on tax paid at an earlier stage, which can be appropriated against the vat liability on subsequent sale. Such a structure might, however, require somewhat higher income tax or vat rates. Neoclassical accelerator closely linked to user cost derivation yields an optimal capital stock but optimal adjustment path comes from ad hoc assumptions classical treatment beginning with jorgenson 1963 but empirical roots are much deeper aftertax profits. Lecture on value added tax 2014 free download as powerpoint presentation. Results from demand system estimates reported by crawford, keen, and. Bel 300 taxation notes for university of pretoria south. The acts provide the framework of the tax but much of the detail is to be. As illustrated in this example, the restriction on businesses making exempt supplies to recover input tax incurred has the ability to erode business profit margins. If during the past 3 calendar months you made taxable supplies whose gross value, exclusive of any tax, exceeded shs. It is a document that is issued by the vendor to another vendor following a taxable transaction.
Gross domestic product gdp is goods are valued at their market prices, so. Crossley, david phillips and matthew wakefield ifs summary vat is an important source of government revenue, forecast to raise. For each commodity the price index is normalized to 100 in the month prior to the. Value added tax vat, stamp duty, state excise, land revenue and profession tax are levied by the state governments. Discusses the fundamentals of a vat, its origin, the practice in nigeria as well as its shortcomings considering the presence of state sales tax.
Lecture social implication and functions of tax in market economy conditions. Intra gcc transactions it is expected that there will be specific rules dealing with the. Lecture notes macroeconomics econ 510a, fall 2010, yale university fiscal policy. This means that the burden of paying is shifted or passed on to the buyer, transferee or lessee of the goods, properties or services. Introduction to taxation government plays an important role in most modern economies. Llb law third 3rd year pdf notes, books, projects, papers. Lecture some preliminary observations on the law of income tax in sri lanka. And there may be other considerations such as ensuring.
The pay now, argue later rule in terms of section 36 of the value added tax act prima facie infringes on a taxpayers right of access to the courts as envisaged in section 34 of the constitution. Alts 1983 treatment of the evolution of tax structure stresses the role of. Input vat refers to vat the buyer pays on purchase from vat registered and only vat registered buyers are allowed. Local bodies are empowered to levy tax on properties, octroi and for utilities like water supply, drainage etc. Lecture on value added tax 2014 value added tax invoice. Value added tax and excises institute for fiscal studies. Lecture notes on goa value added tax act for b com students of goa university based on b.
Empirical evidence on tax incentives and investment. In the united states, the role of the government extends from providing for national defense to providing social security and medicare to the elderly. The vat invoice is a document used by the vendor to claim input vat paid on the purchases and allowed expenses. Lecture notes on vat as amended free download as word doc. The pay now, argue later rule in terms of section 36 of the valueadded tax act prima facie infringes on a taxpayers right of access to the courts as envisaged in section 34 of the constitution. If you have supplied or expect to supply taxable goods worth kshs. South african income tax 2017, underlining and making summaries, and familiarising yourself with the value added tax act no. Users who downloaded this paper also downloaded these. This document aims to provide guidance on the issuance of the value added tax invoice, credit note and debit note as some of the primary records a vendor 1 is expected to keep as 2per the provisions of the value added tax act. International activity has tax implication lecture notes on intl. It is a multipoint tax levied as a proportion of value addition, where the tax burden can be shifted from one person to another person till the ultimate consumer can consume the goods. View notes lecture note on taxation from acc 221 at federal university, dutsinma. Debit and credit notes section 21 similar to the tax.
Value added tax is charged on supply of taxable goods or services made or provided in kenya and on importation of taxable goods or services into kenya. Value added tax is a form of indirect taxation levied throughout the european union. It was introduced in the uk in the early 1970s when it replaced another indirect tax, purchase tax. The vat is a type of consumption tax that is similar to a retail sales tax but is collected in smaller increments throughout the production process.
To maximize firm value, the firm must earn more than its cost of capital. Indirect tax follows consumption principle of tax download free e book on vat from. Venter introduction the commission of inquiry into the tax structure of the republic of south africa, popularly known as the margo commission, recommended in their final report of 1987 the introduction of. If vat issues, such as who is the importer of record, are not assessed and clarified they can have an impact on your cost structure, if not handled correctly. The macroeconomic effects of an addon value added tax, pages ivv. Venter introduction the commission of inquiry into the tax structure of the republic of south africa, popularly known as the margo commission, recommended in their final report of 1987 the introduction of a comprehensive business. This video covers difference between direct tax and indirect tax 2. South african income tax 2017, underlining and making summaries, and familiarising yourself with the valueadded tax act no. Chapter eight valueadded tax the panel developed and analyzed a proposal to adopt a valueadded tax vat that would replace a portion of both the individual and corporate income taxes. The total of the received vat invoices is shown as input vat in the vat returns. Melissa completed taxation bel300 module and she gladly shared these excellent electronic notes which helped her to be in top 10 in.
However the vat is expected to have application in situations where supplies are made by statutory or local authorities which are equivalent or. Capital budgeting techniques chapter 11 1 net present value npv. Notes on the value added tax base of south africa by m. This leads to political support for the vat among exporters and producers of importcompeting products. Adminrfhpgtax types3 rulesextensionsge tax lecture 12. Looking at the optimal management of accounts receivable and payable will improve your cash flow. The valueadded tax referred to as vat from hereafter, also commonly referred to as the goods and services tax gst, is the broadbased consumption tax of choice in more than 160 countries. However the vat is expected to have application in situations where supplies are made by statutory or local authorities which are equivalent or similar to those supplied by taxable. Class 10 icse isc cbse mathematics portal for k12 students. Notes on the valueadded tax base of south africa by m. Indian taxation system has undergone tremendous reforms during the last decade. Oct 04, 2015 here in this thread i am sharing lecture notes in ebook format pdf for the subject vat value added tax for llb and ba.
International trade effects of value added taxation. Taxation, revenue authorities and ethical issues, tax audit and investigation, tax appeal tribunal and interpretation of tax laws, tax planning and tax avoidance, taxation of incomes, offences and penalities, taxation of income from settlement, trusts and estates, value added tax, capital allowances, tax effects of privatisation and. Overview of value added tax in the philippines tax and. The third performance metric is in %, but captures the spirit of two important and essentially similar metrics. It is interesting to note that during the prerevolutionary times in.
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