I have a challenge regards monthly VAT for a business model am trying out.How does a business declare vatable sales given that it has no vatable purchases.The business income is a commission from the invoice charged to a client.Ni kama kuwa broker only in this way the invoice charged to the client bears your company name and PIN details.
Members with any prior experience/insight kindly assist.
Enda Tu office za KRA huko ndio utasaidika.
Can you elaborate further,sijaelewa your question.
Charge VAT when invoicing the client then declare the same.
What about purchases?Declaring sales only means i lose out on VAT since i do not have any purchases which i can claim
The business model involves getting goods/services from small informal business owners who are not in the tax bracket.I then source for a market for the same then invoice customers using my company name and pin.I have output VAT from the invoices generated but i do not have input VAT i.e purchases.My cut is only a certain percentage of the invoices generated.
If you have no input Vat hio pesa sio yako.
Charge the client Vat then submit all of it to KRA.
You are losing out on nothing.
You are 100% correct
As advised apo juu,charge your clients VAT and declare the same to KRA,but there are other avenues you could be incurring VAT eg fuel,office supplies etc,this will reduce your VAT amount.