Transporters, did you know your cross-border transport services are zero-rated under the VAT Act? Read this

Transporters, did you know your cross-border transport services are zero-rated under the VAT Act? Read this

akwilau

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On 6th August the government issued the public notice concerning the chargeability of VAT supply of international transport services.

This public notice directs that the transportation services rendered by subcontractor and lead transporter in the course of transporting of goods across the borders of the United Republic shall be treated as zero-rated supplies in accordance of section 61 (3) of the VAT Act, Cap 148.

Thus, in accordance of section 87 (2) and 88 of VAT Act, Cap. 148 (R.E. 2023), subcontractor and lead transporter are eligible to claim the VAT refunds resulted from the international transport services.

The taxable person to benefit from the VAT refunds must possess all relevant evidences to justify that the transported goods across the United Republic. Such evidences are fiscal receipts issued to customers, proofs of receipt of payments, TANSAD, Bill of lading, Invoices, Packing lists, transit travel records.

Contact HALA Consultants today for VAT refund application.
[email protected]
+255752187434
 
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