Special accounting schemes

Rule 134. (1) The Commissioner may, under section 16, permit the taxable turnover of sales by a registered dealer to be determined by a method agreed with that dealer or by any method described in a notice issued by him for the purposes of this rule.

(2) A registered dealer who makes sales of goods by retail directly to the consumer may calculate tax on those sales by one of the methods specified under this rule.

(3) Such registered dealer who has a taxable turnover relating to goods taxable at different rates shall.-

(a) record the daily total sales of goods taxable at different rates, including exempt sales, at the end of the day; and

(b) at the end of the month, based on daily taxable sales, calculate the tax content using the tax fraction or fractions for the rate or rates of tax in force and include the amount in the return for that period.

(4) Such registered dealer, who has a taxable turnover relating to goods which are taxable at different rates and cannot be identified separately, shall.-

(a) record daily total sales at the end of the day;

(b) at the end of the month, calculate daily total sales for that month;

(c) apportion those total sales into taxable sales in the same proportion as the value of purchases of taxable goods made in the month out of the value of total purchases in that month; and

(d) from the apportioned taxable sales, calculate the tax for the month using the tax fraction or fractions for the rate or rates of tax in force and include the amount in the return for the month.

(5) For the purposes of sub-rules (3) and (4), “tax fraction” means the fraction calculated in accordance with the following formula.-

___ tax rate____

tax rate + 100

(6) A registered dealer using the method of calculation under sub-rule (4) shall, at the end of each year.-

(a) re-calculate his output tax in respect of sales made during that year, based on the purchases made in that year in the manner specified above; and

(b) in his next return, adjust any difference in output tax previously attributed to taxable sales during that year.

(7) A registered dealer, using the method of calculation under sub-rule (4), where there has been.-

(a) a cancellation of his registration;

(b) a change in the rate of tax;

(c) a change in the liability for tax that affects the business; or

(d) a cessation of the use of the chosen method of calculating output tax,

shall re-calculate the output tax in respect of the period commencing at the beginning of the year and ending on the date of the occurrence of any of the aforesaid events based on the purchases made in that period in the manner specified above, and within thirty days after the date of that event, include any adjustment to the output tax previously attributed to taxable sales during that period in his return for the next month.

(8) A registered dealer shall keep a record of all payments received each day, including any till rolls or electronic points of sale prints, where a dealer uses an electronic system.

(9) A registered dealer may choose to use one of the two methods described in sub-rules (3) and (4), and the method chosen shall continue to be used in any return submitted, so long as the dealer remains a taxable dealer, for a period of not less than twelve months from the date of adoption of that method by him.

(10) In the event of a change in the rate of tax or liability to tax during a year, the calculation in sub-rules (3) or (4) of this rule shall be made at the end of the day on the date of change and also at the end of the day on the last date of the month, using the rate of tax and the liability to tax in force on each respective day.

(11) The local VAT officer or VAT sub-officer may refuse to permit the value of taxable sales to be determined in accordance with a method if it appears.-

(a) that the use of any particular scheme does not produce a fair and reasonable taxable turnover during any period; or

(b) that it is necessary to do so for the protection of the revenue.