Is Buying & Selling exempted from VAT?

asked Dec 19, 2016 in VAT by KDM
We have recently started both import and local buying & selling business in our company. I need to know whether that business is liable for VAT?

If liable is that for import buying & selling or Local buying & selling or for both

1 Answer

0 votes
answered Jan 2, 2017 by Rizkhan

Import or local buying & selling is normally liable for VAT other than special mentioned exempted items from Vat.(Ex. import or supply of perfumes,cigarates,liquor,etc....)

Wholesale & Retail companies have threshold to register for VAT commencing from 01 November 2016, as per new implement from goverment.

Liable threshold for wholesale & retail companies any consecutive period of 3 months (Quarterly) of Rs.12.5 Million from that companies supplies(Turnover)

you should know your items that import or buying local were exempted from vat otherwise you are liable for vat

 

Thank you

Rizkhan

 

 

 

commented Jan 3, 2017 by KDM (100 points)
We have been importing granite & marble and doing installation by taking subcontracts from massive construction companies. That means buildings.

Now recently we have started buying & selling also.

Our buying and selling turnover per Qtr is not exceeding 12.5Mn.

construction turnover is exceeding 3Mn per Qtr.

Both construction & buying & selling is not exceeding 10 Mn per Qtr.

So plz explain is our buying and selling part exempted from VAT or not.

If exempted plz explain me reason , is it because we are not exceeding 12.5Mn threshold or this granite (natural stones) exempted from VAT.

 

Thanks
commented Jan 6, 2017 by Rizkhan (100 points)
For the supply or import of granites(natural stones) were exemped from vat as per the vat act of s 9(1) of 15 of 2008]
w.e.f. 17/7/2007

But supply or import of marbles are liable for vat under wholesale & retail trade threshold of  Rs.12.5mn per quarter

And the other side of constructions sale also liable for vat under the threshold of rs.3 million per quarter.

My suggestion:
Best to show your sales in  accounts separately under the revenue as per above sectors.

Thank you

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