EFFECTIVE January 1, 2022 VAT has been increased to 10 per cent. I read that VAT inspectors have already commenced inspection to check whether vendors have implemented the new rates and also levied fines of up to BD10,000 on erring vendors.
While it is necessary that vendors must comply with the new rates, I believe there must be a grace period of at least a few weeks before the fines and penalties are imposed.
I am not sure if there was any cooling period granted by law.
This is especially necessary for the many small retailers and the cold stores who are not equipped to handle the system and other changes in a short time since the new rates were approved.
Imagine a cold store owner who is yet to have his systems updated but within the short time span is unable to do so and suddenly he faces the VAT inspector who issues a fine which could take away a good portion of the revenue.
I am hoping the authorities would be considerate in their approach when they go about with their inspection and imposing penalties.
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