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.
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.1 Like