June Indirect Taxation Newsletter - Issue 02/2025

Based on the above, the DoT urges people who obtain approval for the reduced VAT of 5% however, the resident was not used or ceased to be used as a main and permanent place of residence before the lapse of the 10 year period, to contact the District Offices of the DoT as soon as possible to inform the authorities about the change of use and pay back the VAT that they benefitted from without being eligible for it.

As per DoT announcement, where financial difficulties are identified for a one-time settlement of the VAT benefit, the alternative of monthly payments up to 12 installments will be offered, and in exceptional cases, the Commissioner of Taxation may approve an extension of the repayment plan.

Our VAT Department is available to assist you with any clarifications needed. We understand that navigating tax regulations can be complex, and we are committed to providing you with the support you need to ensure full compliance with the latest guidelines. Please do not hesitate to reach out to us, and we will be happy to guide you through the process or assist with any related queries.