The input tax on the remaining life span of the asset must be declared as output tax in the final return.

A registered business can only claim VAT paid for assets purchased 6 months before registration with the first return provided there is supporting documentation.

The supply of mobile phone services is taxable at the standard rate.  A taxable person who is in the business of supplying mobile telephone services should charge VAT at the rate of 15%.

Yes. A taxable person may claim import VAT paid at the border if the goods imported are going to be used in the business of making taxable supplies.

On the issue of submitting returns, the duty still lies with the principal (if required to register) and if the agency has agreed to do the ‘additional’ work on his behalf that will be in terms of the agency contract, but the obligation remains with the principal.

The principal must register for VAT if reaching the threshold of E500 000. If the agent is charging commission for sourcing the market for the different handcrafters, the accumulated commission attracts VAT if it reaches the registration threshold.

No, the supply of residential accommodation is exempt from VAT.

Rentals of buildings for commercial purposes are taxable at the standard rate of 15% if supplied by a VAT registered person.

Zero-rated supplies are taxable at the rate of 0%. Registered suppliers of zero-rated goods and services charge VAT at the rate of 0%. Consequently, they may claim input tax on the costs incurred to make the zero rated supplies.

On the other hand, suppliers of exempt goods and services may neither charge VAT on their supplies nor claim input tax on the costs incurred to make the exempt supplies. They cannot  register for VAT unless they supplied mixed supplies. 

Zero-rated supplies are goods or services that are taxable at the rate of 0%. Business that supply zero rated commodities may register for VAT and thereby claim input VAT. For the list that commodities that are classified as zero rated click here

Standard rated supplies are goods or services that are taxable at the rate of 15%. These include every commodity that is NOT listed in either the First or Second Schedule of the VAT Act, 2011 and Amendments.

A taxable person refers to any person, business or entity that is registered or has an obligation to register for VAT

All importers and exporters and their agents

All goods whether new or used have to be declared to Customs – there is no special procedure for ‘grey imports’

An application must be made to Customs and all the laid down requirements met

No there aren't any. Currently hawkers are required to declare goods the same as any commercial entity.

No

A foreign business cannot register for ASYCUDA in Eswatini; they will need to use an agent who is registered for ASYCUDA in Eswatini.

Yes, the supply that agencies are making is a taxable supply. As long as agencies meet the registration threshold of E500, 00.00/annum with regards their commissions (and any other taxable income), the law requires that they register and issue tax invoices, submit returns and payments, keep proper records, claim input tax etc.

Supplies made by an agent are considered to be made by the principal he represents in this case the landlord. An agent is not making or receiving the supplies they arrange for their principal. It is the responsibility of the principal to account for output tax on taxable supplies. If the agent has agreed to do some ‘additional’ work on behalf of the principal, that will be in terms of the agency contract, but the obligation to account for VAT remains with the principal.

The supply by the agent are the services to his principal for which he charges a fee or commission and if they reach the threshhold of E500, 000 in commission, they must register for VAT.