How does Customs & Excise collect VAT?
A taxable person adds up all the VAT it has charged on its sales or services. If this sum is in excess of the VAT it has incurred on its expenses it pays over the balance to Customs & Excise. If the VAT it has incurred is more than what it has charged, a reclaim is made to Customs & Excise that pays over the balance to the taxable person. When does a taxable person pay or reclaim VAT from Customs & Excise? When a company, firm or individual registers for VAT it receives a VAT Certificate (VAT 4) which details the period for which it must account for VAT to Customs & Excise. This is known as the Tax Period, or more formally Prescribed Accounting Period. An applicant is usually allocated the standard 3 months period, but it can also be monthly or annual, subject to certain requirements being met. The taxable person must complete and send its Value Added Tax Return (VAT 100) 30 days after the Tax Period or Due Date even if there have been no transactions during the period. Now Customs and
