Final answer:
VAT becomes payable mainly at the time of supply, when goods are delivered or services are rendered. Businesses charge VAT on their sales and reclaim VAT on their purchases, paying the difference to the tax authority. The timing can vary by country and specific provisions in the VAT Act 2014.
Step-by-step explanation:
The Value Added Tax (VAT) becomes payable according to the VAT Act 2014 at different stages depending on the type of transaction and the status of the person or entity involved. Generally, VAT is due at the time of supply, which is when goods are delivered or services are performed. For businesses registered for VAT, this means they should charge VAT on their sales, which is termed 'output tax' and can reclaim any VAT they've been charged on their purchases, which is known as 'input tax.' The difference between these two amounts is what they pay to the tax authority. In the case of imports, VAT is typically due at the point of entry into the country.
However, there may be special provisions for certain goods or industries, and the exact timing of VAT payments can vary by country, even within the framework established by the VAT Act 2014. Additionally, the tax periods and payment deadlines are often set forth in the tax calendar published by the tax authorities.