VAT and Corporate Tax: two separate files that should never be mixed
Are VAT and Corporate Tax the same thing?
No. VAT is calculated on almost every sale and purchase transaction, with returns filed quarterly or monthly depending on how the business is classified — regardless of whether the company made a profit or a loss in that period. Corporate Tax, on the other hand, is calculated once a year on net accounting profit after adjustments, under Law 47.
Mixing the two up is the most common mistake we encounter: a company computing its Corporate Tax base from the same gross sales figure used in its VAT return, or holding off on a VAT return that is actually due while waiting on a Corporate Tax outcome. Each file has its own timeline, its own documents, and its own calculation — even though both come out of the same books.
At RASEEKH, each file is managed on its own schedule, from one single source of truth: your ledger.