The value added tax account
4.—(1) Every taxable person shall keep and maintain, in accordance with this regulation, an account to be known as the value added tax account.
(2) The value added tax account shall be divided into separate parts relating to the prescribed accounting periods of the taxable person and each such part shall be further divided into two portions to be known as “the tax payable portion” and “the tax allowable portion”.
(3) The tax payable portion shall be comprised of–
(a)a total of the output tax due from the taxable person for that prescribed accounting period;
(b)every correction or adjustment to the tax payable portion which is required or allowed by regulations 5 or 7; and
(c)every adjustment to the amount of tax payable by the taxable person for that prescribed accounting period which is required, or allowed, by, or under, any Regulations made under the Act.
(4) The tax allowable portion shall be comprised of–
(a)a total of the input tax allowable to the taxable person for that prescribed accounting period by virtue of section 15 of the Act;
(b)every correction or adjustment to the tax allowable portion which is required or allowed by regulations 5 or 7; and
(c)every adjustment to the amount of input tax allowable to the taxable person for that prescribed accounting period which is required, or allowed, by, or under, any Regulations made under the Act.