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What is the vat treatment for EPZ registered companys.

id : 31   cat : Value Added Tax   
How do we know that a given business is a valid EPZ company. Are EPZ companies exempt from VAT and in writing invoices, do we include and charge VAT or not?
Asked by : Taher Kapacee
 DOQ : 2016-05-05 21:00:00
   Taher Kapacee

Answer

Supply of goods/services to an EPZ reg. Company is ZERO rated. This means the invoice will include VAT at 0%. A business registered under Epz Act should have a reg.certificate. Companies reg. under EPZ are exempt from duties & VAT on imports. They also have a 10yrs income tax holiday. EPZ : Allowed to sell maximum 20% of production within EAC economic block.
Answered by : Admin
 DOA : 2016-05-08
   Admin

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