VAT Certificate of Honour
What is VAT Certificate of Honour?
VAT Certificate of Honour is a letter of recognition issued from the VAT Online System in favor of a taxpayer in VAT Form- 18.5 after he submits tax returns of VAT or Turnover Tax for all Tax Periods during the concerned one year.
How can I obtain a Certificate of Honour?
A Certificate of Honour will be issued within the following one month of completion of the Financial Year in VAT Form- 18.5 on submission of tax returns of VAT or Turnover Tax for all Tax Periods during the concerned Financial Year. This will not require any application. VAT Online System will transmit that automatically. The validity of this Certificate of Honour will remain in force for the next year.
What are the advantages of having a Certificate of Honour?
Through a Certificate of Honour under the VAT law, any individual may take advantage of the following, e.g. –
- Renewal of Import Registration Certificate and Export Registration Certificate.
- Supplying to any Withholding Entity.
- Participating in any tender.
- Enlisting with any organization.
- Renewal of bond Licence.
- Sanction/ renewal of Bank loan.
- Registration of immovable property, etc.
Moreover, under the Tax Payer Motivation Programme, various social facilities may be obtained, e.g., –
- Discount in different hospitals, hotels, restaurants, super shops, branded shops, air tickets, etc. and
- Priority in having different services, etc.