Companies with a taxed turnover of up to SRD 1 million are exempt from VAT. Above this amount, a registration obligation applies, which also activates certain administrative obligations that are made mandatory by law.
A company must have a purchase book and a sales book. In order to have the VAT deducted one has to purchase these modules for the financial package or bring the existing modules in line with the requirements of the law.
Different types of VAT must be taken into account separately. Entrepreneurs who provide mixed services (taxed and exempt) need an even more detailed administration for the revision scheme. The financial administration need to be set up in accordance with the legal requirements, otherwise the VAT deduction may be refused.
An important difference with the current OB is that as from January 1st people will switch to the invoicing system. This means that the entrepreneur will have to pre-finance the VAT to be paid. Even if your debtor has not yet paid, you will have to declare and pay the invoiced VAT on the declaration. Companies with a long debtor term will have to find a solution to bridge any liquidity shortage / increase your working capital.
If you want to be able to deduct the 12% OB that is currently in your stock in 2023, you must submit a request to that effect to the inspector, which also sets requirements for your administration. The pioneers in business successfully completed the VAT practical course last Thursday.
