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 from 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 charged on all supplies of goods and services except for exempt supplies and zero-rate supplies. 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
If you have not yet registered for VAT, make sure you read our booklet “VAT - Do You Need to Register?” (RM 203). It tells you what you need to know before you register for VAT.
The rest of this booklet applies to registered persons and organisations.
Due Dates for Filing VAT Returns
We will send you a book of VAT returns when you register. You have until the due date to get the form and payment (if any) to us. The due date is the 20th day of the month following the end of your taxable period. If the 20th of the month falls on a weekend or public holiday, your return will be due on the next working day following the weekend or public holiday.
This Guide explains the application of VAT in the Cook Islands.
- RM 203 - VAT - Do you need to Register
- RM206 - Value Added Tax (VAT) Guide
- RM211 - Retailers & VAT
- RM212 - Self Employed & VAT
- RM213 - Non-profit / Charaties and Associations & VAT
- RM214 - Travel and Tourism & VAT
- RM215 - Farmers & VAT
- RM216 - Arts and Crafts & VAT