What you need to know about Vat invoice |11 November 2011

Under the Vat Act 2010, while the same obligation applies, only Vat-registered businesses are allowed to charge Vat on their invoices and hence can issue a Vat invoice. An individual or business can request for an invoice, and a business cannot refuse to issue an invoice upon their customers’ request.

The information given on an invoice normally establishes the Vat liability of the supplier of goods or services and the entitlement of the customer to a deduction (if applicable). It is vital therefore, that Vat invoices are properly drawn up and carefully retained as stated by the Vat Act 2010. A Vat invoice can be either on paper or in electronic form.

The Vat invoice must display certain specific information in line with the requirement of the Vat Act.  In addition, for each different type of item listed on the invoice, you must show:

• The unit price or rate, excluding Vat
• The quantity of goods or the extent of the services
• The rate of Vat that applies to what is being sold
• The total amount payable, excluding Vat
• The rate of any cash discount
• The total amount of Vat charged

It is to be noted that if the Vat invoice includes zero-rated or exempted supplies then it must clearly state that there is no Vat payable on those goods or services, and the total of those values must be indicated separately on the invoice.

What is the time limit for issuing a Vat invoice?
The time limitation for issuing Vat invoices (to a Vat-registered business) is 28 days from the date of the supply or if advance payment has been made, the date the payment was received.

1.   Goods: the time when the goods are ready to be supplied is the date when one of the following happens:
• the goods are sent to the customer
• the customer collects the goods from the supplier
• the goods are made available for the customer to use
2.  Services: the date when the services are ready to be supplied is the date when the service is carried out and all the work is completed.

It is important to note that if a Vat registered business for any reason has not received an original Vat invoice, the business must make a request to the supplier within 60 days from the date of the transaction to provide the Vat invoice. The supplier must comply with the request within 14 days after receiving it.

For more information
You can contact Seychelles Revenue Commission on 4293737 or email us at advisory.center@src.gov.sc. The Value Added Tax Act, 2010 is available on the Seychelles Revenue Commission website (www.src.gov.sc).

Submitted by the Seychelles Revenue Commission