Proper record-keeping is the backbone of VAT administration, ensuring complete transparency for revenue audits.
Statutory Requirements for a Valid Tax Invoice
A registered person who makes a taxable supply must issue a tax invoice. Modern tax frameworks require electronic invoicing via systems connected directly to the tax authority (such as the Electronic Tax Invoice Management System—eTIMS). A legal invoice must feature:
  • The words “TAX INVOICE” prominently displayed.
  • Name, address, and Taxpayer Identification Number (PIN) of the supplier.
  • Name, address, and PIN of the purchaser (if they intend to claim input tax).
  • Invoice serial number, date, and time of issue.
  • Quantitative description of the goods or services supplied.
  • Total consideration excluding tax, the exact tax amount, and the total price including tax.

Filing VAT Returns and Timelines
VAT returns are filed electronically on a monthly basis. The return and the accompanying tax payment must reach the revenue authority by a strict statutory deadline—typically the 20th day of the following calendar month.
Penalties for Non-Compliance
  • Late Filing: Attracts a fixed statutory fine or a percentage of the tax due, whichever is higher.
  • Late Payment: Triggers an immediate penalty (e.g., 5% of the principal tax) plus compounding interest charged monthly on the unpaid balance until full settlement.

 
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