A response by many countries to the Global Financial Crisis was to increase the (already high) rates of VAT, Customs, Excise in an effort to reduce Government budget deficits. Despite the economic recovery of the last few years, these rates have been maintained. Theoretically the “cost” of indirect taxes is borne only by the ultimate consumer of goods and services, and businesses therefore act merely as collection agents. In practice however compliance issues, an inefficient partial exemption method, incorrect VAT charging, cash-flow impact, and regulatory inconsistencies often prove expensive and inconvenient.
DFS is a service provider and through its network it can provide complete national coverage and a complete range of VAT, Customs and Excise services to fully meet your requirements. Our services include:
- Compliance Out-Sourcing.
If you do not have the resources or skills in-house to maintain an accurate and timely compliance function, you may wish to consider out-sourcing this to DFS. Our teams of experienced specialists can perform a complete range of indirect tax compliance services, including the preparation and submission of all monthly returns for VAT, PAYE, WHT and tax representation to Malawi Revenue Authority (MRA) and the maintenance of the appropriate documentary support.
- Obtaining VAT Refunds.
Although VAT should not theoretically cost your business anything, there is often a significant cash flow impact when there are timing differences between the collection of output VAT on sales, and the offsetting of input VAT on purchases. Even greater impact can arise if you are an exporter, and therefore eligible for refunds of your input tax, or if you are making sizeable capital investments. Careful planning, and robust refund application procedures can significantly reduce the negative impact on your cash flow.
- Planning and compliance reviews.
To help you identify potential problems, opportunities, or inefficiencies, DFS can review your VAT, Customs and Excise documentation, and identify opportunities for improvement in processes and cash flow, as well as potential areas of contention.Timing is an extremely important issue in indirect taxes. When does your liability arise? On delivery? On invoicing? On receiving payment? When is the Return due? What happens if you forget to claim an input item this month? Can you claim it in next month’s Return? At DFS our specialists are extremely experienced and can advise on exactly what corrective action to take to rectify matters and minimise any consequences.
- Tax Representation.
Whether you are in dispute with a Malawi Revenue Authority (MRA), or in the process of claiming refunds, DFS specialists can help you ensure that your case or claim is professionally presented, technically sound, and properly supported in terms of documentation and evidence.
- Indirect tax training.
If you have the people resources for an effective tax compliance function, DFS can provide training to your teams to ensure that the skills, and up-to-date knowledge necessary for effective compliance are instilled and maintained.