VAT is a self-assessed form of taxation. VAT is assessed via the act of submission of tax declaration.
If, however, the VAT Commissioner concludes that the true facts are different, the amount of tax due is defined and assessed, under the provisions of the VAT Law and the interested person is informed accordingly.
A tax assessment is issued where the VAT Commissioner concludes that:
- a taxable person has failed to make the returns required,
- a taxable person has failed to keep any necessary documents and afford facilities to verify such returns,
- it appears such returns are incomplete or incorrect,
- an amount was paid to a taxable person in the form of refund of tax and such amount should not have been paid,
- an amount was credited in the interest of a taxable person and such amount should not have been credited,
- a taxable person fails to give account for any goods he acquired or imported in the course or furtherance of his business.
The tax assessment is an executory administrative act of the VAT Commissioner, for which an objection may be submitted to the Minister of Finance or an appeal to the Supreme Court may be filed.