Chapter 406

In short

This law establishes a Value Added Tax (VAT) system, replacing an older excise tax system on imports, products, and services. It outlines how VAT is imposed, collected, and administered.

What it regulates

• The imposition of Value Added Tax on imports, products, and services.
• The scope of the tax, including what constitutes a taxable supply, acquisition, or importation.
• The registration process and tax periods for businesses.
• The determination and payment of the tax, including returns, assessments, penalties, and appeals.

Who it concerns

• Any "person" carrying on an "economic activity," including physical persons, bodies of persons, public authorities, and other entities.
• Importers of goods.

Key points

• The law defines "tax" as the value added tax chargeable, excluding administrative penalties or interest.
• A "taxable person" is defined in article 5.
• "New means of transport" have specific definitions based on size, weight, power, and usage limits (e.g., land vehicles supplied not more than six months after first entry into service or not travelled more than 6,000 kilometres).
• The administration of the Act is vested in the Commissioner for Tax and Customs.