Tax Payer
A Taxable Person or a Tax Payer for Value Added Tax purposes is an individual or an entity, supplying taxable goods and/ or rendering taxable services.
Entity
Entity is a group of people and/or capital which forms a unity that either conducts business or does not. It includes:
| • | Corporation |
| • | Limited partnership |
| • | State – local owned enterprise in whatever name and form |
| • | Co operative, pension fund, partnership, association foundation, public organisation, social and political organisation, or any similar organisation, institution, permanent establishment and any other form of entity. |
Taxable Goods
Value Added Tax shall be imposed on:
| 1. | Supply of Taxable Goods carried out in the customs area by a Firm |
| 2. | Import of Taxable Goods |
| 3. | Taxable Services rendered in a customs area by a Firm |
| 4. | Utilisation of intangible Taxable Goods obtained from outside the customs area within a Customs Area |
| 5. | Utilisation of Taxable Services obtained from outside the customs area within a customs area |
| 6. | Export of Taxable Goods by a taxable person for VAT purposes. |
Rate of VAT
VAT is imposed on most goods and services at a rate of 10%. Government regulations can adjust the rate to as low as 5% and as high as 15%.