The SAIT VAT Technical Work Group submitted detailed commentary on the 2024 Draft Taxation Laws Amendment Bill, focusing on proposed changes to the VAT Act. Key issues addressed include clarifying VAT treatment for services to non-resident subsidiaries, Islamic finance arrangements, and input tax claim periods. The submission raises concerns about administrative burdens, system limitations, and unintended consequences—particularly for educational institutions and foreign donor-funded projects. It also critiques the proposed broadening of VAT exemptions for educational institutions, warning of financial and compliance impacts, especially for universities. The group recommends practical alternatives, such as phased implementation, clearer definitions, and system adaptations, to ensure fair and efficient VAT administration.
READ MORE
