The challenges surrounding taxes among entrepreneurs primarily stem from a lack of awareness rather than a deliberate refusal to fulfil their obligations promptly. However, it’s important to note that ignorance is not a valid excuse under the law.
It’s crucial to distinguish between the taxes imposed on a company and those imposed on a business name. Countsystem recognises this as an opportunity to assist entrepreneurs with their tax-related concerns.
For instance, we educate entrepreneurs about the fact that all goods and services, whether produced domestically or imported into the country, are subject to taxation, unless explicitly exempted by the VAT Act.
Value Added Tax (VAT) is a consumption tax that is levied when goods are purchased or services are rendered. The current VAT rate stands at 7.5%. VAT payments are due on a monthly basis and should be remitted no later than the 21st day following the month of the transaction.
Failure to fulfil VAT obligations incurs significant penalties, along with interest on the outstanding amount for each month that a business fails to remit payment.
At Countsystem, we are equipped to assist you with filing your VAT returns, ensuring compliance with tax regulations.