Filing the Vat return |11 March 2013

As mentioned in previous articles only businesses registered for Vat are allowed to charge Vat on goods and services they provide. Vat registered businesses collect Vat on behalf of the Seychelles Revenue Commissioner (SRC) and need to remit the difference between the Output Vat (Vat collected from the sales) against the Input Vat (Vat paid) to SRC on a monthly or quarterly basis depending upon the type of registration.

All Vat-registered businesses must prepare a Vat return that should be lodged together with the Business Activity Statement (Bas) and the Vat due/payable.

What is a Vat return?
A Vat return is a document on which Vat-registered businesses declare/report their Vat liabilities, claim a Vat credit or a Vat refund. It provides a summary of the Vat account for a particular Vat period (a calendar month or a quarter) and it is made up of the total Vat charged by a business (Output Tax) and the total Vat paid by the business to suppliers or to Customs (Input Tax). It details:
• the total amount of sales and purchases a business made during a particular Vat period and how much Vat was collected from its customers;
• the total amount of goods (including capital assets) purchased or imported or services received and the amount of Vat a business is claiming back; and
• the amount of Vat a business must remit to SRC or alternatively the amount of Vat the business is claiming as a refund from SRC.

What is the deadline to lodge the Vat return?
All compulsory Vat-registered businesses must lodge their Vat return along with the Bas form on a monthly basis, on or before the 21st day of each month. The first Vat return for businesses already registered on a compulsory basis should have been lodged by February 21, 2013.

Businesses registered on a voluntary basis must lodge their return along with the Bas form on a quarterly basis by 21st of April, July, October and January of any year. The first Vat return for this group of business must be lodged no later than April 21, 2013.

Non-lodgement and late-lodgement of Vat return
It is the responsibility of the business to lodge its Vat return and the Vat due on time. SRC calls on all businesses to ensure that they meet this deadline to avoid any penalties that may apply. If a business does not file its return by the due date it will have to pay a late filing penalty. If non-lodgement of return arises, a default assessment will be raised.

What are the various modes of filing the Vat return and Bas form?
Vat returns and Bas forms can be submitted:

• In hardcopies by mail or to the SRC’s offices on Mahé, Praslin and La Digue; or
• On-line via the taxation e-service facility which some businesses are already using for the monthly submission of the payroll.

How to submit Vat return and Bas via taxation e-service
To submit your Vat return and Bas on-line via taxation e-service, businesses must first register for an e-ID, password and access code. Registration can be done either online or at SRC offices on Mahé, Praslin and La Digue. For more information on taxation e-eervice, you can visit our website at www.src.gov.sc, e-mail us at advisory.centre@src.gov.sc or call us on +248 4293741.

What are the various modes of payment for Vat?
Businesses can make their payment either by cheques or via bank to bank transfers. Payments by cheque must be remitted to the SRC offices on Mahé, Praslin and La Digue or can be sent by mail. For cheques sent by mail the valid date is the date SRC receives the payment.

For more information
You can contact Seychelles Revenue Commission on hotline number 4293745 or e-mail us at vat@src.gov.sc. The Value Added Tax Act, 2010 and the Vat manual are available on the Seychelles Revenue Commission website (www.src.gov.sc).