1. Application of VAT in the Financial Sector

2. Problems identified and Potential Solutions
Group B Presentation

3. Problems identified and potential solutions
Definition and Scope of Imported service
The legislation should clearly define what an import of service is

4. Problems & Potential Solutions Cont’d
Problems Identified
Potential Solutions
How to identify Imported services
Exchange of information with the Central bank and other bodies like Investment Authority to identify and track payments for Imported services
Integrate Central Bank System with the Tax Authority’s Systems

5. Problems & Potential Solutions Cont’d
Problems identified
Potential Solutions
Capacity to Conduct audits
Ongoing training programs
Use of computerized audit software
Preparing Specialized audit manuals
Rotation of staff to ensure wide spread of knowledge
Put in place incentives for staff retention

6. Problems & Potential Solutions Cont’d
Problems identified
Potential Solutions
Terminologies used/Classification of financial and non financial services
Impose VAT on all fees, charges and commissions earned by a financial institution
Extensive training of staff

7. Problems & Potential Solutions Cont’d
Problems Identified
Have an understanding with the central Bank to enable exchange of information
Have an information database
Educate Judiciary and legislators of the essence of revenue mobilization
Confidentiality Clauses with the taxpayers not to disclose their information
Amend the laws to enable exchange of information
Confidentiality Clauses in the legislation

8. Thank You