Business • December 21 2003

VAT Department advises on cash register changes

The VAT Department has reminded all business operators in possession of a Fiscal Cash Register or a Fiscal Device (computerised system) that from 1st January 2004 the current VAT rate of 15 per cent will change to the new rate of 18 per cent.
The Department urges all business operators to make arrangements to have such fiscal cash registers and other fiscal devices adjusted by cash register suppliers or software contractors from whom the equipment had been purchased.
The Department is allowing up to 16 January 2004 for Business Operators to alter their devices to reflect the 18 per cent VAT rate. At the same time, the reduced rate button of five per cent should be activated for use with effect from 1 May 2004 where necessary. Business operators who use such devices are also required to forward their log book to their respective suppliers and to ensure that suppliers sign and stamp the log books certifying that the changes have in fact been made.
In the meantime, prices should be adjusted by 31 December 2003 to reflect the new 18 per cent VAT rate. Until fiscal cash registers or fiscal devices are modified, within the allowed period of time, business operators are required to: ensure that the new price, which should include the 185 VAT is punched even though the machine is not yet adjusted; and adjust the total amount of sales reported by their system by multiplying the total sales, inclusive of VAT, by 0.1525. This will automatically establish the 18 per cent VAT element on such sales.
Further information can be obtained from the Customer Care Division of the VAT Department on telephone numbers 22799335, 22799217 and 22799239.