The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Companies that have to submit quarterly Value-Added Tax (VAT) returns should seek to make advance payments, a member of the Government-appointed VAT Education Task Force recommended yesterday.

    Andrew Rogers, the Nassau Glass and Bahamas Aluminum Manufacturing rincipal, said: “You obviously started to collect VAT on January 1, and your payment is not due until April 28.

“You will find that your account is obviously generating a lot of VAT payments. We have to remain very careful if this remains in your operating facility, because you can turn around and spend this money, not realising that you should not have bought that new vehicle, for example, for the company.

“I recommend that quarterly filing companies try to make advanced payments. When the actual payment is due, obviously you would not be in a position where you have to come up with such a large amount.”

Jasmine Davis, one of the VAT Education Task Force co-chairs, said the group will host of series of VAT seminars on filing and payment of returns that are specifically geared towards small and medium-sized businesses.

The first seminar will be held at the Melia Resort Cable Beach on Wednesday, March  11.

“There are over 7,000 registered business, and more than three-quarters of them file quarterly,” said Ms Davis. The deadline and payment for those filing quarterly is April 28, 2015.

    Mr Rogers said small and medium-sized businesses should be mindful of the penalty associated with late filing.

“Late filing is a very serious offense and  fines are automatically generated on your account. Someone is not going to be doing it manually; it is automatic. It is very critical that businesses are aware of that. The fines basically will be 5 per cent of what your expected payment is,” said Mr Rogers.