CIDB and VAT 201’s

For any application above level 2, a registered VAT number and VAT 201s will be a requirement at CIDB.

VAT 201s are required and requested when the company financial statements are not audited. These documents then serve as supporting evidence that the contractors set out turnover is accurate. For example, if the company’s  turnover has increased dramatically, the VAT 201s can be used to verify this information.

CIDB uses this requirement as a reasonable step to ensure the information submitted is correct and in line with regulations. We choose to ensure that these documents are submitted even if the other requirements are met, just to ensure that there are no discrepancies when the application is being reviewed.

Your turnover value on all the VAT 201s will be added together. This turnover is including VAT which will be important to take into consideration comparing the total of the turnover according to the VAT201’s against the turnover indicated on the financial statements as this amount is excluding VAT. This turnover should be equal to the total turnover (including VAT) reported on your financial statements. If the difference is very large, the application may be referred to the Chief Assessor, which may further delay your application.

The turnover reflected on your VAT 201s must not be 90% less than the amount reflected on your financial statements. Should this happen, your VAT 201s will be used as the main source of grading.

Import things to note for your submission:

• All the VAT 201s for the year are submitted
• The VAT201’s are signed by the accountant or principals
• The value indicated as the ‘amount payable’ on the VAT201 corresponds with the ‘amount allocated to Tax’ on the proof of payment

Keep an eye on our next Newsletter as we go though more CIDB registration requirements. Should you require assistance with your CIDB Level 2-9 registration, upgrade or renewal, please contact us.