The Ministry of Finance’s Value Added Tax (VAT) Department encourages small business owners to use the Flat Rate Scheme when filing their returns.
The Flat Rate Scheme allows the taxpayer to calculate VAT at a rate of 4.5 per cent on their taxable turnover payable to the VAT Department each VAT period.
To qualify for the Flat Rate Scheme, the taxpayer must have an annual taxable turnover of $400,000 or less and keep the necessary documentation as outlined in the VAT Act to support sales figures.
Under this scheme, taxpayers cannot claim as input tax the VAT incurred on purchases or on imports except on capital items used in their business.
Businesses can expect no particular financial benefit to using the Flat Rate Scheme other than a potential savings on the cost of administration.
For more information contact the VAT Department at firstname.lastname@example.org or call VAT Client Services at (242)-225-7280 (toll free).
June 16th, 2015