Exemptions
Exempt goods
Article 86 of law No.06/2001 catagorises exempt goods and services which includes;
Agricultural products such as; livestock, unprocessed animal products, Fish, fresh vegetables and fruits Pesticides and fertilizers used in agriculture Health services and supplies e.g. drugs, medicines and material for use by the blind or disabled Education services and the supply of education materials to learning institutions, books, journals, cassette discs Transport services by bus or coaches
Water supplies to rural areas
Goods imported under the Investment Registration Certificate.
Others include : funeral services and jewels, paraffin, financial and life Insurance services, Trade unions Subscription.
VAT rates:
For goods or services consumed by privileged persons VAT rate is 0%. This also includes exports, diplomatic purchases and purchases under donor funded agreements, projects and technical aid. A rate of 18 % is the standard tax to taxable goods and services. VAT is accountable for and paid monthly. VAT returns are filed by not later than the 15th day of the subsequent month.
Value Added Tax violations
Article 63 of Law N°25/2005 of 04/12/2005 on tax procedures relates to the administrative fines imposed to persons who do not comply with provisions of Value Added Tax:
1° in the event of operation without VAT registration where VAT registration is required, fifty percent (50%) of the amount of VAT payable for the entire period of operation without VAT registration;
2° in the event of the incorrect issuance of a VAT invoice resulting in a decrease in the amount of VAT payable or in an increase of the VAT input credit or in the event of the failure to issue a VAT invoice, one hundred percent (100%) of the amount of VAT for the invoice or on the transaction;
3° for issuing of a VAT invoice by a person who is not registered for VAT is assessed a penalty of one hundred fifty percent (150%) of the VAT which is indicated in that VAT invoice and is due to pay the VAT as indicated on that VAT invoice.
Click below to download the List of products and Items used in Agriculture and Animal Resources to Be Exonerated.
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