VAT, PAYE & TAX RETURNS

VAT: Value-Added Tax is commonly known as VAT. VAT is an indirect tax on the consumption of goods and services in the economy. Revenue is raised for government by requiring certain businesses to register and to charge VAT on the taxable supplies of goods and services. These businesses become vendors that act as the agent for government in collecting the VAT.

PAYE: Employees’ tax, which comprises of Pay-As-You-Earn (PAYE), refers to the tax required to be deducted by an employer from an employee’s remuneration paid or payable. The process of deducting or withholding tax from remuneration as it is earned by an employee is commonly referred to as PAYE.

Tax Returns: A taxpayer makes an annual statement of income and personal circumstances, used by the tax authorities to assess liability for tax.