VAT thresholds ‘constrain’ SME formalisation

VAT is a transaction-based tax, and the fiscal tax invoice is the cornerstone of compliance. It serves not only as a record of the transaction but also as proof that tax was charged and paid.

Advertisements AS the government pushes to boost state revenue through increased taxation, small to medium enterprises (SMEs) have criticised the reduction of the value-added tax (VAT) threshold, warning it undermines compliance efforts and could stifle their growth.Through recent legislative changes, the government has intensified efforts to formalise businesses and bring them into the tax net.…

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