VALUE ADDED TAX: SUBSIDIARY LEGISLATION
INDEX TO SUBSIDIARY LEGISLATION
Value Added Tax (Exemption) Regulations
Value Added Tax (Remission of Penalties and Interest) Amnesty Regulations
Value Added Tax (Tax Period) Regulations
VALUE ADDED TAX (TAX PERIOD) REGULATIONS
(under section 77)
(1st July, 2002)
ARRANGEMENT OF REGULATIONS
REGULATION
1. Citation
2. Alternative tax periods
S.I. 48, 2002,
Act 15, 2006.
These Regulations may be cited as the Value Added Tax (Tax Period) Regulations.
(1) For the purposes of these Regulations—
“Category A” means the category of registered persons whose tax periods are periods of two months ending on the last day of January, March, May, July, September and November, of each year;
“Category B” means the category of registered persons whose tax periods are periods of two months ending on the last day of February, April, June, August, October and December, of each year; and
“Category C” means the category of registered persons whose tax periods are periods of one month ending on the last day of each month.
(2) The Commissioner General shall determine whether a registered person falls within Category A or Category B, so as to ensure that approximately equal numbers of registered persons fall within each category, and shall, in writing, notify the registered person of the determination.
(3) The Commissioner General may from time to time, by notice in writing, direct that a registered person change from Category A to Category B, or vice versa, starting from the beginning of such future tax period as he may specify in the notice.
(4) A registered person shall fall within Category C if—
(a) the total value of his taxable supplies—
(i) at the end of any period of 12 months exceeds P12,000,000, or
(ii) at the beginning of any period of 12 months is reasonably expected to exceed P12,000,000,
unless the Commissioner General is satisfied that the value of the person’s taxable supplies exceeds P12,000,000 solely as a consequence of a reason specified in section 16(3) of the Act;
(b) the Commissioner General, upon the written application to him by a registered person, authorises the person to report on a monthly basis; or
(c) the Commissioner General requires that person to report on a monthly basis on the ground that the person has regularly defaulted in performing any obligations under the Act.
(5) Notwithstanding subregulation (2), and for the purposes of subregulation (4), the Commissioner General—
(a) may authorise a monthly tax period for a registered person on such terms and conditions as he may impose and shall give the registered person notice in writing of that authorisation;
(b) shall determine the date when monthly reporting begins in respect of a registered person; and
(c) may, by notice in writing, direct that a person in Category C shall fall within Category A or B, starting from the beginning of such future tax period as he may specify in the notice, if—
(i) the person applies, in writing, for such a change and the Commissioner General approves the change, and
(ii) the Commissioner General is satisfied that because of a change in circumstances the person satisfies the requirements of Category A or B.
(6) The Commissioner General may, upon the written application to him by a registered person, grant a registered person within Category A, B or C permission to end a tax period within 10 days before or after the last day of a calendar month:
Provided that:
(a) the change is consistent with that person’s accounting procedures; and
(b) the application complies with the conditions imposed by the Commissioner General.
(7) A registered person who is not satisfied with the Category which the Commissioner General has determined in respect of him under subsection (2) may, within 28 days of his being notified of the determination, appeal to the Minister.
VALUE ADDED TAX (REMISSION OF PENALTIES AND INTEREST) AMNESTY REGULATIONS
(section 77(1) read with section 62(6))
(1st July, 2021)
ARRANGEMENT OF REGULATIONS
REGULATION
1. Citation
2. Interpretation
3. Tax amnesty
4. Scope of tax amnesty
5. Tax periods covered by tax amnesty
6. Tax amnesty period
7. Persons eligible for tax amnesty
8. Persons not eligible for tax amnesty
9. Notification to Commissioner General of payment of principal tax debt
S.I. 52, 2021,
S.I. 115, 2021.
These Regulations may be cited as the Value Added Tax (Remission of Penalties and Interest) Amnesty Regulations.
In these Regulations, unless the context otherwise requires—
“principal tax debt” means the primary tax liability that is due and payable under the Act but does not include penalties or interest; and
“tax amnesty” means a limited-time opportunity for taxpayers to pay the principal tax debt in exchange for the forgiveness of interest and penalties.
(1) Where a taxpayer is required to pay interest charged on a principal tax debt in accordance with section 22 of the Act, the Minister shall in accordance with these Regulations and pursuant to section 62(6) of the Act, grant tax amnesty from the payment of interest on an unpaid principal tax debt.
(2) Where a taxpayer is required to pay any penalty charged under the Act, the Minister shall in accordance with these Regulations and pursuant to section 62(6) of the Act, grant tax amnesty from the payment of the penalty.
(1) In accordance with section 62(6) of the Act, the scope of the tax amnesty which the Minister shall grant shall be—
(a) on a penalty or an interest that has remained due and unpaid or has accrued during the period provided for under regulation 6; and
(b) to provide all eligible taxpayers with an opportunity to be granted tax amnesty in accordance with these Regulations:
Provided that where there is a principal tax debt, the tax amnesty shall only be granted where the taxpayer has paid the principal tax debt in full.
(2) The tax amnesty shall not cover any fines imposed under the Act.
5. Tax periods covered by tax amnesty
The tax amnesty shall cover tax liabilities for all tax periods prior to 1st July, 2021.
The tax amnesty shall become available from 1st January, 2022 to 30th June, 2022.
7. Persons eligible for tax amnesty
A person shall be eligible for tax amnesty where the person—
(a) has an outstanding principal tax debt that has a penalty or interest liability;
(b) has filed a tax return but has not paid the whole or part of the tax due under the tax return;
(c) has paid the principal tax debt but has an outstanding penalty or interest;
(d) only has an outstanding penalty, interest or both;
(e) has not filed a tax return that is due to be filed or should have been filed;
(f) is eligible or was eligible to register in accordance with section 16 of the Act;
(g) has filed an objection with the Commissioner General; or
(h) has a pending appeal case before the Board of Adjudicators, the High Court or the Court of Appeal.
8. Persons not eligible for tax amnesty
A person shall not be eligible for the granting of a tax amnesty where the person—
(a) has paid the principal tax debt, penalty and interest prior to the commencement of the tax amnesty period;
(b) has previously been convicted of a criminal offence under the Act; or
(c) has been convicted of an organised crime, including money laundering, human trafficking, poaching, economic sabotage, corruption, drug trafficking or involvement in terrorism or any transnational crime.
9. Notification to Commissioner General of payment of principal tax debt
(1) Where a taxpayer has paid the principal tax debt in order for tax amnesty to be granted for any penalty or interest, the taxpayer shall notify the Commissioner General, in an electronic format provided by the Commissioner General, within seven days of payment; provided that the notification shall be made on or before 30th June, 2022.
(2) Upon receipt of notification of the payment under subregulation (1), the Commissioner General shall effect the remission of the penalty or interest, where applicable, and shall notify the taxpayer of such remission within 21 days.
VALUE ADDED TAX (EXEMPTION) REGULATIONS
(under section 77)
(14th June, 2002)
ARRANGEMENT OF REGULATIONS
REGULATION
1. Citation
2. Interpretation
3. Financial services
4. Medical services
5. Education services
S.I. 44, 2002.
These Regulations may be cited as the Value Added Tax (Exemption) Regulations.
In these Regulations, unless the context otherwise requires
“exempt supply” means goods or services exempt from tax in terms of section 11; and
“life insurance contract” means any contract of insurance made or agreed to be made by an insurer classified under section 37 of the Insurance Industry Act as transacting long term business.
(1) The following financial services shall be exempt from tax, except to the extent that they are rendered for a fee, commission, or other similar charge other than discounting cost, in which case the fee, commission or other similar charge shall be subject to tax—
(a) granting, negotiating, or dealing with loans, credit, credit guarantees, or any security for money;
(b) the management of loans, credit, or credit guarantees by the grantor;
(c) transactions concerning money, such as deposits, payments, transfers of money, debts or negotiable instruments;
(d) transactions relating to financial derivatives, forward contracts, options, or similar arrangements;
(e) transactions relating to shares, stocks, bonds, treasury bills, unit portfolios, or other debt or equity securities, other than custody services;
(f) the provision, or transfer of ownership, of an interest in a scheme whereby provision is made for the payment or granting of benefits by a benefit fund (including a medical aid or other similar fund), provident fund, pension fund, retirement annuity fund, or preservation fund;
(g) the arranging of any of the services referred to in subparagraphs (a) to (f) and paragraph 2; or
(h) the provision of intermediation services by a medical aid fund or similar fund.
(2) Notwithstanding the provisions of subregulation (1), the provision of, or transfer of, ownership of a life insurance contract or the provision of reinsurance in respect of any such contract, shall be an exempt supply in terms of paragraph 2(a) of the Second Schedule.
(1) In this regulation, “public medical facility” means a Government operated or Government aided medical facility; and
“exempt medical service” means a medical service which is exempt from value added tax.
(2) A public medical facility is Government operated if—
(a) the facility is operated by the Government;
(b) its employees are government employees; or
(c) its budget is predominantly provided by Government.
(3) A public medical facility is Government aided if at least 50% of its budget comes predominantly from government grants or subsidies.
(4)The following goods and medical services are exempt supplies if supplied in the ordinary course of operating a public medical facility—
(a) laboratory, x-ray or other diagnostic services;
(b) drugs, biologicals, and other related preparations;
(c) any medical or surgical prosthesis installed as part of the supply of an exempt medical service;
(d) the use of operating rooms, intensive care units or other specialised facilities where a patient may be kept for observation or specialised treatment;
(e) anaesthetic facilities;
(f) such equipment or supplies as are necessary for the use of the facilities stated under paragraphs (d) and (e);
(g) medical or surgical equipment or supplies when used by the public medical facility, or supplied to a patient or resident other than by sale, in connection with an exempt medical service;
(h) the use of radiotherapy, physiotherapy, or occupational therapy facilities, in rendering an exempt medical service;
(i) accommodation provided to a patient or resident in the course of receiving an exempt medical service;
(j) a meal provided to a patient or resident in the course of receiving an exempt medical service, except those meals provided in a restaurant or cafeteria available to persons other than patients or residents;
(k) services rendered by the public medical facility staff in connection with exempt medical services;
(l) dental, orthodontic, periodontal, or endodontal, procedures, other than for cosmetic reasons;
(m) psychoanalytic services; and
(n) ambulance services provided by a public medical facility.
(5) Where a service is provided for both medical and cosmetic reasons, it shall be treated as an exempt medical service.
(1) In this regulation, “exempt education institution” means an education institution referred to under subregulation (2).
(2) An education service shall be an exempt supply if it is specified under subregulation (3) and is supplied to students by—
(a) a pre-primary, primary, or secondary school;
(b) a tertiary institution; or
(c) an institution established to promote—
(i) adult education;
(ii) vocational training;
(iii) technical education; or
(iv) the education or training of physically or mentally handicapped persons,
which is registered in accordance with the provisions of the Education Act (Cap. 57:04) or Tertiary Education Act, as the case may be, or
(d) an institution for the education and training of religious workers.
(3) The following education services are specified as exempt supplies for purposes of paragraph 2(c) of the Second Schedule to the Act—
(a) courses of instruction provided by an exempt education institution to its students;
(b) instruction in courses leading to, or to maintain or upgrade, a professional or trade accreditation or designation recognised by government;
(c) adult education courses provided by an exempt education institution;
(d) correspondence courses provided by an exempt education institution;
(e) school bus services provided by an exempt education institution to its students;
(f) meals provided by an exempt education institution to its students;
(g) services provided by primary or secondary school students or their teachers as part of or incidental to the instructional programme;
(h) fees for administrative services relating to the provision of an education service;
(i) charges for pre-primary, primary or secondary school students to use school facilities;
(j) charges for admission to any activity or event organised by an exempt education institution;
(k) tuition and tutoring provided by an exempt education institution;
(l) curriculum related activities provided by an exempt education institution;
(m) administrative services directly related to the supply of education courses, course materials, or the rental of curriculum-related goods by the supplier of the education;
(n) field trips directly related to the curriculum in an exempt education institution; or
(o) such other goods or services provided to students, as are part of the education program of an exempt education institution.