INPUT VAT
Expert opinion required on the below
VAT ON SUBLEASE CHARGES:
Received tax invoice no.0023/ 2019 for the period 01/07/2019 to 30/06/2021 against sublease charges 400,000/- and vat on sublease charges 20,000/-, on 25/12/2019.
Sublease charges to be paid quarterly in advance on 1st date of every quarter and vat on yearly sublease charges to be paid in 1st quarter for each year.
if PDC is Issued against vat and sublease charges we can claim the input vat in return peried 01/03/2020 to 31/05/2020 or not.
If PDC is not issued but we are agreed with service provider for outstanding payment than we can claim input vat in return period 01/03/2020 to 31/05/2020 or not.
Replies
The deadline of 6 months for the purposes of Article 55 DL commences from the agreed date of payment for the supply and this can be interpreted as the PDC dates. Since this is not under violation as of current date and the supplier has charged full VAT on their invoice, you should be permitted to claim the input now. The issuance of PDC's would confirm internal approval for payment as well.
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As per the management decision we agreed to pay the dues on due date via bank transfer instead of issuing pdcs and we informed the service provider also on the management decision and he is agreed on the same.
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In case of specially supply,i.e. contractual or series of payment -Tax Invoice should for maximum for 12 months although contract is more than 12 months hence VAT is will be charged for one tax year.
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Its sublease charges and the invoice is for 3 years starting from June 2019 to may 2022
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Mr.Nusart Abbas, please can you share some reference article or clarification regarding to special supply or contractual series of payment
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