VALUE ADDED TAX ACT, 2010

Arrangement of Sections

PART I

PRELIMINARY PROVISIONS

1. Citation.

2. Interpretation.

3. Consideration.

4. Enterprise.

5. Fair market value.

PART II

IMPOSITION OF TAX

6. Imposition and liability for VAT.

PART III

REGISTRATION

7. Application for compulsory registration.

8. Compulsory registration.

9. Voluntary registration.

10. Registration by VAT representatives of non-resident persons.

11. Obligation of registered person.

12. Cancellation of registration.

13. Deemed taxable supply on cancellation of registration.

PART IV

RULES RELATING TO SUPPLIES

14. Mixed supplies.

15. Time of supply.

16. Place of supply of goods.

17. Place of supply of services.

18. Place of supply of telecommunications services.

19. Value of a supply.

20. Deemed taxable supply on application of goods or services for own use.

21. Reverse charge in respect of supplies of services from abroad.

PART V

RULES RELATING TO IMPORTS

22. Time of import.

23. Value of import.

PART VI

INPUT TAX CREDITS

24. Credit for import tax.

25. Disallowable input tax credits.

26. Input tax credit for newly registered person.

PART VII

POST-SUPPLY ADJUSTMENTS

27. Post-supply adjustments for supplies.

PART VIII

VAT DOCUMENTATION

28. VAT invoice.

29. VAT credit note and debit note.

30. VAT documentation issued by or to agents.

31. Requests for VAT documentation.

32. Maintenance of VAT documentation.

PART IX

VAT PROCEDURE

General provisions related to vat computation, assessment and payment

VAT returns

33. VAT returns.

34. Net VAT paid for a VAT period.

35. Due date for payment of VAT.

36. Collection of VAT on imports.

37. Refunds.

38. Assessment of recipient of supply.

PART X

RECOVERY AND COLLECTION OF VAT

39. Extension of time to pay VAT.

40. Collection and recovery of VAT.

41. Payment of interest and additional Interest.

42. Additional tax for failure to apply for registration.

PART XI

OFFENCES

43. Offences.

PART XII

MISCELLANEOUS PROVISIONS

44. Branches and divisions.

45. Tax avoidance schemes.

46. Currency translation.

47. Assessment, record-keeping and information collection.

48. Revenue decision.

49. Recovery of unpaid VAT.

50. Revenue proceedings and rulings.

51. Application of Act.

PART XIII

FINAL PROVISIONS

52. Regulations.

53. Repeal.

54. Transitional rules relating to registration.

55. General transitional rules.

FIRST SCHEDULE

SECOND SCHEDULE

THIRD SCHEDULE

FOURTH SCHEDULE

35 of 2010,

3 of 2012,

13 of 2012.

SI 62 of 2012,

65 of 2012,

4 of 2014,

108 of 2014,

13 of 2015,

42 of 2016,

70 of 2016,

21 of 2017,

50 of 2017.

AN ACT to provide for the imposition and collection of Value Added Tax on goods and services supplied in Seychelles or imported into Seychelles, to repeal the Goods and Services Tax Act 2001 and to provide for matters connected therewith or incidental thereto.

[Date of commencement: 1st January, 2013; 30th December 2010 (Part III, and sections 43, 44, 54 and 55)]

[The phrase “Director General of Customs” substituted with “Assistant Commissioner of Customs” by s 2(k) of Act 13 of 2012 w.e.f. 31 December 2012.]

PART I

PRELIMINARY PROVISIONS

1. Citation.

This Act may be cited as the Value Added Tax Act, 2010.

2. Interpretation.

In this Act, unless the context requires otherwise—

“additional tax” means additional tax imposed under the Act or the Revenue Administration Act;

“Assistant Commissioner of Customs” means the Assistant Commissioner of Customs appointed under section 3 of the Customs Management Act, 2011;

[Ins by s 2(a)(i) of Act 13 of 2012 w.e.f. 31 December 2012.]

“Associate” has the same meaning as in the Business Tax Act;

“Business Tax Act” means the Business Tax Act 2009;

“capital goods” means tangible items not being construction materials treated as an asset on the balance sheet of a business of which an individual or group purchase has a CIF value and a life expectancy as prescribed by regulations;

[Ins by s 2(a)(ii) of Act 13 of 2012 w.e.f. 31 December 2012.]

“commencement date” means the date that the Act comes into operation as determined under section 1(2);

“consideration” has the meaning in section 3;

“creditable acquisition, in relation to a taxable person, means—

(a) a taxable supply made to the person by another taxable person; or

(b) a taxable import made by the person;

“customs legislation” means the Customs Management Act, 2011 and any other legislation dealing with customs;

[Am by s 2(a)(iii) of Act 13 of 2012 w.e.f. 31 December 2012.]

[“Director General of Customs” rep by s 2(a)(iv) of Act
13 of 2012 w.e.f. 31 December 2012.]

“enterprise” has the meaning in section 4;

“entity” has the same meaning as in the Business Tax Act;

“exempt import” means an import exempted from the payment of VAT as specified in Part I of the First Schedule;

“exempt supply” means a supply of such goods or services exempted from the payment of VAT as specified in Part II of the First Schedule;

“fair market value” has the meaning in section 5;

“goods” means immovable or tangible movable property, including animals, but does not include money;

“Government body” has the same meaning as in the Business Tax Act;

“import” means to bring goods into Seychelles or cause goods to be brought into Seychelles from a place outside Seychelles;

“importer” has the meaning in the Customs legislation;

“input tax, in relation to a person, means—

(a) the VAT payable in respect of a creditable acquisition by a person; and

(b) an amount that is treated for the purposes of this Act as input tax payable by the person,

but does not include additional tax imposed under this Act or the Revenue Administration Act in respect of a creditable acquisition;

“input tax credit, in relation to a person, means the credit for input tax allowed to the person under this Act;

“invoice” means a document notifying an obligation to make a payment and includes a VAT invoice;

“Minister” means the Minister responsible for finance;

“minor operating equipment” means equipment used in the course of a business, not including office supplies, of the CIF value or the life expectancy as prescribed by regulations;

[Ins by s 2(a)(v) of Act 13 of 2012 w.e.f. 31 December 2012.]

“money” means—

(a) any coin or paper currency that is legal tender in Seychelles, other than a coin or paper currency that is a collector’s piece;

(b) a bill of exchange, promissory note, bank draft, or postal or money order; or

(c) whatever is supplied as payment by way of—

(i) a credit card or debit card; or

(ii) the crediting or debiting an account;

“output tax, means the VAT payable on a taxable supply made by a taxable person;

“person” means an individual, entity, partnership, trust, estate, Government body, or public international organisation;

“prescribed” means prescribed by Regulations made under this Act;

“registered person” means a person registered under section 8 or 9;

“registration threshold” means the amount specified in the Fifth Schedule;

“Revenue Administration Act” means the Revenue Administration Act 2009;

“Revenue Commissioner” means the Revenue Commissioner appointed under section 4 of the Seychelles Revenue Commission Act;

“revenue laws” has the same meaning as in the Revenue Administration Act;

“services” means anything that is not goods or money;

“Service Charge” has the same meaning as in the Income and non-Monetary Benefits Tax Act;

“supply” means a supply of goods or a supply of services;

“supply of goods” means a sale, exchange, or other transfer of the right to dispose of goods as owner, including under a hire-purchase agreement;

“supply of services” means anything done that is not a supply of goods or money, including—

(a) the grant, assignment, or surrender of any right;

(b) the making available of any facility or advantage;

“supplier” means a person engaged in a supply of goods and services;

“tax fraction, in relation to a taxable supply, means the fraction computed in accordance with the following formula—

r/(1+r)

where r is the rate of VAT applicable to the supply as determined under section 6;

“taxpayer identification number” has the meaning as in the Business Tax Act;

“taxable import” means an import of goods, other than an exempt import;

“taxable person” means—

(a) a registered person; or

(b) a person who is required to apply for registration but who has not done so within the time specified in section 7;

“taxable supply” means—

(a) a supply, other than an exempt supply, made in Seychelles by a person in the course of furtherance of an enterprise; or

(b) a deemed taxable supply under this Act;

“telecommunications services” means the transmission, emission, or reception of signals, writing, images, sounds, or information of any kind by wire, radio, optical, or other electromagnetic systems, and includes—

(a) the related transfer or assignment of the right to use capacity for such transmission, emission, or reception; and

(b) the provision of access to global or local information networks,

but does not include the supply of the underlying writing, images, sounds, or information;

[“Trades Tax Act” rep by s 2(a)(vi) of Act 13 of 2012 w.e.f. 31 December 2012.]

“trading stock” has the same meaning as in the Business Tax Act;

“VAT” means the value added tax imposed under section 6;

“VAT-exclusive fair market value, in relation to a supply, means the fair market value of the supply reduced by an amount equal to the fair market value multiplied by the tax fraction;

“VAT credit note” means a document that a supplier is required to issue under section 29(1);

“VAT debit note” means a document that a supplier is required to issue under section 29(3);

“VAT invoice” means a document required to be issued under section 28;

“VAT period” means the calendar month; and

“zero-rated supply” means a supply referred to in the Second Schedule.

3. Consideration.

(1) “Consideration, in relation to a supply, means—

(a) the amount in money paid or paid by any person, directly or indirectly, for the supply; and

(b) the fair market value of an amount in kind paid or paid by any person, directly or indirectly, for the supply;

and any taxes (including VAT), duties, levies, fees, and charges (excluding service charges) paid or paid on, or by reason of the supply reduced by any price discounts or rebates allowed and accounted for at the time of the supply.

(2) The consideration for a supply of goods under a hire purchase agreement to which section 14(2) applies does not include any amount paid in relation to a supply of credit under the agreement.

4. Enterprise.

(1) An “enterprise” means—

(a) an activity carried on continuously or regularly by a person, whether for pecuniary profit or not, if the activity involves or is intended to involve the supply of goods or services to another person, including a business, trade, commerce, manufacture, profession, vocation, or occupation of any kind; or

(b) an activity in the nature of a business, trade, commerce, manufacture, profession, vocation, or occupation, whether conducted for pecuniary profit or not.

(2) An enterprise does not include—

(a) an employment;

(b) a hobby or leisure activity of an individual; or

(c) an activity of a person, other than an individual, which is essentially carried on as a hobby or leisure activity of a member, owner, or associate of the person.

(3) An activity done or undertaken in the commencement, termination, or reorganisation of an enterprise is done in the course or furtherance of the enterprise.

(4) If, in the case of an enterprise carried on by a taxable person, goods forming part of the assets of the enterprise are, under any power exercisable by another person, sold by the other person in or towards satisfaction of a debt owed by the taxable person, the goods are treated as supplied by the taxable person in the course or furtherance of the enterprise.

(5) An employment is an employer-employee relationship and includes activities performed as the holder of an office unless the office is held as part of a business of an office.

5. Fair market value.

(1) The fair market value of a supply at a particular time is the consideration the supply would fetch in an open market transaction freely made between persons who are not associates at that time.

(2) If it is not possible to determine the fair market value of a supply at a particular time under subsection (1), the fair market value is the consideration a similar supply would ordinarily fetch in an open market transaction freely made between persons who are not associates at that time, adjusted to take account of the differences between the similar supply and the actual supply.

(3) A supply is similar to another supply if it is the same as, or closely resembles, the other supply in character, quality, quantity, functionality, materials, or reputation.

(4) If the fair market value of a supply cannot be determined under subsection (2), the fair market value is the amount determined by the Revenue Commissioner that is an objective approximation of the consideration the supply would fetch in an open market transaction freely made between persons who are not associates.

(5) If a provision of this Act requires the fair market value to be determined at a particular time for particular goods or services, or for an asset held by a person, that value is worked out by reference to the fair market value of a supply of those goods or services, or that asset, as determined under this section, at that time.

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