![]() ![]() The VAT relief is considered to be received from the same income source as the income for which the relief was granted. Report the relief in the year’s income tax return in the section for grants and subsidies received. ![]() If a company that uses cash-based accounting deducts the relief from the amount of upcoming tax payable for the tax period, the relief is considered to be income received in the tax year when the VAT filed on the VAT return in question would have fallen due. However, if your company uses cash-based accounting, you must record the relief as income received in the year when the Tax Administration actually pays the relief to your company. This income must be recorded in the company’s accounting as income received in the accounting period that qualifies for the relief. The income you receive from a VAT relief is taxable in income taxation. Remember to file the relief as income on your tax return If you have no VAT payable for the tax period, you will receive the entire relief amount as a refund. If the relief amount is greater than your VAT payable for the tax period, you will receive the rest as a refund. When you submit VAT and relief details in MyTax, the e-service automatically deducts the relief amount from the amount of VAT payable. How does the relief affect the amount of tax? On the VAT return for the final quarter (October–December) of the calendar year ![]() On the VAT return for the final month of the accounting period You can request the relief either on the final VAT return for the calendar year or for the accounting period. Your tax period for VAT determines when you should make the request. Report the information relating to your request for VAT relief on your VAT return. ![]()
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