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Expected Transitional Provisions (effect of change -VAT 5% to 10%)

Under the expected transitional provisions, if a supply of goods or services takes place on or after “Expected Due Date” (“EDD”), any invoice issued for any consideration received before “EDD” may be considered under the 5% tax bracket for the purposes of calculating the time and tax of supply for VAT, and consequently, the supply will be subject to 10% VAT. If an invoice is issued before “EDD” for a supply that is to be performed after “EDD”, without including the 10% VAT applicable to the goods or services being supplied under that invoice, the supplier must issue an additional invoice specifying the additional amount of (10%-5%) VAT.

Source: gccfintax.com

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