The Turks and Caicos Islands' Dr Rufus Ewing Administration asked the UK government to delay the implementation of Vat
for a year, so that it could craft an alternative revenue stream, reports the Turks and Caicos Sun
Now, chief financial officer for the Turks and Caicos Islands, Hugh McGarel-Groves, has responded that alternative tax suggestions are either 'unworkable or not sensible,' according to the Turks and Caicos Weekly News Online
Businesses in the Turks and Caicos Islands must comply with the new value-added tax (Vat) laws or they'll be taken to court!
The Turks and Caicos Islands have no choice – if the controversial Value Added Tax (Vat)
isn't introduced on 1 April, a number of government cuts will have to be made which could run in excess of $10 million.
'Therefore, we have no choice but to go ahead with Vat,' McGarel-Groves concludes.
Businesses that don't comply and don't pay the penalties will be taken to court and face bigger penalties as well as all the legal costs.
And businesses with 'very, very poor record keeping
will find it a challenge,' as they'll have to work out how much they're selling each month, and how much they're spending on their purchases.
Here are four record-keeping formats SARS
will accept as proof, according to the Tax Bulletin
Four formats of record keeping SARS will accept
1. Physical books – e.g. if your sales reps use a paper-based invoice book to issue invoices to clients on-site.
2. Paper-based source documents – e.g. if your business is still using the traditional order book method to place orders with suppliers.
3. Electronic records – e.g. electronic invoices you issue and receive.
4. Accounting systems like charts and codes – e.g your monthly Pastel reports.
Make sure you keep these in a safe place and submit your Vat returns on time to qualify for a Vat refund from SARS and avoid jail time!
For more information on Vat recording
keeping, simply get your hands on the Practical Vat Loose Leaf Service
. In the Practical Vat Loose Leaf Service
we've got a dedicated chapter on record keeping, in it you'll discover:
2 Functions your records must fulfil now that the TAA is in effect
16 Financial records you must keep in case of an audit
8 Records to keep when dealing with stock and transactions
Keep your records for the specific timeframes required by SARS!
Tips to keep your physical and electronic records safe
Get the Practical Vat Loose Leaf