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The adoption of vat into its tax system by replacing the former sales tax was with the objective in which vat is considered to be important to enhance saving and investment, minimize the damage that may be.
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This paper examines tub administration in Ethiopia and identifies fundamental problems including deficiency of sufficient bi of skilled force and gaps fashionable the administration stylish such areas every bit refunding, invoicing and filing requirements.
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Ethiopia introduced vat through announcement no.
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How is VAT collected in Bishoftu, South Africa?
Net output tax minus in put tax output tax is a tax collected when one firms sell its products where as input tax is tax paid when firm buys good from registered one can collect VAT without registration for VAT. Generally VAT administration practice in Bishoftu town is one activity from tax administration.
Why was VAT introduced in Ethiopia in 2002?
VAT is introduced in Ethiopia by proclamation (285/2002 replacing sale tax, with the following objective. Ø To collect tax on the added value whenever the sale transaction is conducted since the former sale tax system did not allow collection is conducted.
How does VAT belong to the family of sales tax?
The VAT belongs to the family of sales tax a VAT way be defined as “a tax to be paid by the manufactures or traders of good and service on the basis of value added by them” . It is not a tax on the value of the commodity being sold but on the value added to it by the manufacture or trader.
Which is true about the assessment of VAT?
VAT is a self assessed tax since the VAT liability is calculated paid by the tax payers (proc, No 285/2002). Ø VAT is “general tax or comprehensive” that applies in principle to all commercial activities in valuing the production and distribution of good and provision of services.
Last Update: Oct 2021
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