Tax and VAT: what founders should get right from day one
Compliance isn’t the exciting part of starting a business, but getting it right early saves money, stress and missed opportunities later.
Many of the businesses that come to us for VAT and tax support share a story: they started quickly, focused on sales and left the paperwork for later. Later always arrives. The earlier you build good compliance habits, the easier they are to keep.
Register properly
Make sure your business has the registrations it needs — such as a trade licence, an e-TIN for income tax and, where applicable, a Business Identification Number (BIN) for VAT. Requirements depend on your business type and size, so confirm what applies to you.
Keep records as you go
- Issue proper invoices and keep copies.
- Keep receipts for purchases and expenses.
- Reconcile your bank account with your records every month.
Know your deadlines
VAT returns and income tax returns have fixed filing dates set by the National Board of Revenue. Put them in your calendar at the start of the year, with reminders a few weeks ahead.
Use good help early
A short conversation with a qualified adviser when you start can prevent expensive corrections later. Good accounting and documentation also make your business more credible to banks and investors.
Rules change from time to time, and this article is general information rather than tax advice. For advice on your own situation, please consult a qualified tax professional.
Written by
Sabina Yesmin Shimu
Entrepreneur and finance professional with over fifteen years of experience. Founder Chairperson of Aimer Merchants Ltd. and Infosystem Technology Ltd., Director at EduQuest, and an advocate for women in business and IT.
