VAT

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VAT

Value Added Tax

Value Added Tax (VAT)

Value Added Tax (VAT) is a tax on consumption. It is charged and accounted for at a rate of 15%.

Persons and organisations who have registered with Revenue Management collect VAT from their customers. If you have an annual turnover of $40,000 or more in your taxable activity, or you expect your turnover to be $40,000 or more in the next twelve months, you must register for VAT.

  • If your taxable activity has an annual turnover of less than $40,000 you are not required to register but may do so if you wish.
  • If annual turnover does not exceed $20,000 you are not able to register for VAT.

If the business operates in branches, the taxable supplies of all the branches must be added together to get the total turnover. However, Non-profit bodies, Clubs, Charities, and Associations can look at each branch separately.

VAT is only charged on taxable activities. A number of activities are not taxable activities. These include:

  • salaries and wages,
  • hobby activities,
  • private sales of personal or domestic items, and
  • exempt supplies

Arts & Craft

If you are an artist or craftsperson, you may be liable to register for VAT and will have certain new liabilities and responsibilities. This booklet below is designed to explain the impact of VAT on you and to provide specific information to assist you in understanding VAT and in deciding whether or not to register. More information on registration and accounting for VAT is available in our booklet ‘VAT Do you need to register’.

Retailers

Almost all retailers will be liable to register for VAT and will have certain new liabilities and responsibilities. This booklet below is designed to explain the impact of VAT on retailers, and to provide specific information to assist them in understanding VAT. For more information on registration and accounting for VAT contact Revenue Management Division (RMD) on the VAT Hot-line.

Self-Employed

If you are self employed, you may be liable to register for VAT and will have certain new liabilities and responsibilities. The booklet below is designed to explain the impact of VAT on you and to provide specific information to assist you in understanding VAT and in deciding whether or not to register.

Travel & Tourism

Almost all of those involved in travel and tourism will be liable to register for VAT and will have certain new liabilities and responsibilities. The booklet below is designed to explain the impact of VAT on the travel and tourism industries, and to provide specific information to assist in understanding VAT.