Our Case Study

VAT is a self-imposed indirect tax. The value-added tax, or VAT, is levied on the real increase in the price level of the products or services by altering the material tax rather than the tax due on the goods or services delivered.

Professor Carl S. Shoup (1990) described it as “a tax on the value added by a business firm, through its own activity, to the goods and services it buys from other business”

Professor Bannock and Peacock (1989) “VAT is a Tax on final consumption which is collected at every stage of production and distribution rather than at the retail stage alone”

Canadian Royal Commission on Taxation: A tax on value added might best be described as a sophisticated turnover tax, where the cumulative tax factor is removed by taxing each transaction only in respect of the addition to sale value that has occurred in the stage immediately preceding the transaction in question.

The VAT Business Identification Number (BIN) will be accessible within three days. You have to apply online. If all of the papers are accurate, officials from the National Board of Revenue (NBR) VAT Online Project will send the applicant an e-mail confirming the registration or enrollment within three days. This is referred to as EBIN.

1. Applicants must apply for VAT registration within the specified time, circumstances, and procedure.
2. The officer must register the individual and provide a registration certificate with the company identification number within the specified time frame, circumstances, and procedures.
3. If an application under sub-section (1) is not valid, the official must notify the applicant in the appropriate time and manner.

In the event that any of the following information pertaining to economic activities changes, the registered or enlisted person is required to notify the concerned officer within the allotted time and manner:

1. Change the name of the person or type of business, including the business name or any other trade name
2. Change the person’s address or any other contact information
3. Relocate economic activities
4. Change the information on the person’s bank account
5. Change the nature of one or more economic activities that the person conducts
6. Changes in ownership or partnership
7. Any remaining prescribed change.

When a registered person provides a supply, the source tax deductor must submit a certificate deducting the source tax in the way specified by the Board at the time the tax deducting entity pays for the supply.