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FUNCTIONS The VAT Service (VATS) has responsibility for the administration and management of the Value Added Tax by Act 546. These responsibilities include the collection of and accounting for the tax and its related penalties and interest payable.
Customs, Excise and preventive Service (CEPS) collect import VAT for and on behalf of the Commissioner for VAT as agents and “for that purpose the laws and regulations applicable to collection of custom duties and other taxes on importation of goods” are applicable. In return, the VATS has agency for the collection of Domestic Excise Duty for the CEPS Commissioner.
STRATEGIC OBJECTIVES The strategic objectives of the VAT Service are to • Maximize the mobilization of financial resources • Develop, improve and maintain the requisite human resources and institutional management capacity to enable it to deliver quality Service.
The VAT Service is one of the three revenue institutions established under the Revenue Agencies Governing Board (RAGB) for the collection of taxes. It is therefore responsible to the Minister of Finance just as the Internal Revenue Service (IRS) and Customs Excise and Preventive Service (CEPS).
As part of the operational responsibilities to ensure that VAT collected is properly accounted for, the Service has the mandate and powers including entry at any reasonable time, into the premises of a VAT registered business to inspect and take stock of any goods and examine business records, accounts and correspondences in the premises where the service has reasonable grounds to suspect that the premises contain taxable goods on which taxes have been evaded or fraudulently over claimed or evidence of failure to taxes legally.
The Service also has the powers to seal off premises, if there are reasonable grounds to suspect that taxes have not been paid or a false claim for repayment has been made.
The Service has an operational manual for collecting and accounting for the Value Added Tax. |