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Frequently Asked Questions on VAT

Last updated on 06 April, 2018


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How are security deposits treated in VAT?

For a deposit to be treated as a security deposit, it must not be applied toward the cost of goods or services. A true security deposit will not be subject to VAT and does not require an invoice. A deposit which will be applied toward the cost of goods or services is not considered a security deposit, and will be subject to VAT.

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