VDS (VAT 6.6)

VAT deduction at source entity

• The VDS organizations are the Government Entities, a Non-government Organization approved by the NGO Affairs Bureau, Banks-MFIs, Insurance companies, a Post-Secondary Educational Institution, a Public Limited companies, an establishment registered under a LTU (VAT)

In each case Deduction At Source is Applicable

• The lower rate or specific amount of tax of the standard VAT 15% rate applies when buying a product or service
• Any supply provided without invoice VAT 6.3 ( Special Method is applicable).
• Licenses, Registration, Permits, Revenue Sharing, Agreements etc. (Issuing company)
• Purchase in tender, Contract, or Similar Manner.
• Placement and establishments rentals (Renters)

In any case the deduction at source is not Applicable

• Supply of exempted goods on the first schedule of Law
• Zero Rate and deem Export supply
• 15% Standard rate of Supply
• Fuel, Gas, Water, Electricity, Telephone and Mobile Service