Value Added Tax Act

Value Added Tax Regulations 1998

[GN 87 of 1998 – 1 July 1998] [Section 72]

1. Short title

These regulations may be cited as the Value Added Tax Regulations 1998.

2. Interpretation

In these regulations –

"Act" means the Value Added Tax Act.

3. Charge to value added tax

For the purpose of section 9(4)(b) of the Act, the prescribed time shall be 20 days.

[Reg. 3 amended by reg. 3(a) of GN 96 of 1999 w.e.f. 1 July 1999 in respect of taxable period as from the month or quarter ending 30 September 1999.]

4. Registration

(1) A person who applies for registration under section 15 or 16 of the Act shall produce such documents, and furnish such information in support of his application, as the Director-General may require.

(2) A registered person shall declare, electronically or otherwise, the VAT Registration Number allocated to him under section 17 of the Act on every bill of entry submitted by him at Customs.

(3) Where a registered person –

 (a) changes his name or trading name;

 (b) changes the address of any of his business premises;

 (c) opens any new business premises; or

 (d) changes the nature of his business,

he shall immediately –

  (i) notify, in writing, the Director-General; and

  (ii) return to the Director-General his certificate of registration and all its copies.

(4) On receipt of a notification under paragraph (3), the Director-General may, after considering such information as he may require, amend the certificate or issue a fresh certificate to the registered person.

(5) Every registered person shall display in a conspicuous place at each of his business premises –

 (a) his certificate or a photocopy of his certificate; and

 (b) a distinctive mark provided by the Director-General to indicate that the person is registered for VAT.

(6) Where a registered person operates –

 (a) at a place other than his usual place of business; or

 (b) at a trade fair,

he shall give at least 7 days' prior notice in writing thereof to the Director-General.

(7) On receipt of a notice under paragraph (6), the Director-General may require the registered person to furnish such information and to make such arrangements as may be necessary in order to ensure that VAT is properly accounted for.

4A. Cancellation of registration or voluntary registration

(1) Where the annual turnover of taxable supplies of a registered person does not exceed, and is not likely to exceed, the amount specified in the Sixth Schedule, he may, subject to paragraph (2) and section 15(2) and (2A) of the Act, apply to the Director-General, in such form and manner as the Director-General may determine, for cancellation of his registration.

(2) Where a registered person –

 (a) makes an application under paragraph (1), the Director-General may, on being satisfied that, having regard to all circumstances of the case, it is expedient to do so, cancel the registration of the registered person with effect from such date as the Director-General may determine and give notice thereof to the person;

 (b) does not make an application under paragraph (1), he shall be deemed to be registered under section 16 of the Act.

(3) Where the registration of a registered person is cancelled under paragraph (2)(a), section 18(2) of the Act shall apply.

(4) Where the annual turnover of taxable supplies of a registered person under section 16 of the Act exceeds the amount specified in the Sixth Schedule, he shall be deemed to be registered under section 15 of the Act.

[Reg. 4A inserted by reg. 3 of GN 95 of 2013 w.e.f. 4 May 2013.]

5. Receipt

A person, other than a registered person, who issues a receipt under section 19 of the Act shall specify in the receipt –

(a) his name, business address, and his business registration number;

(b) the number and date of issue of his business registration number;

(c) the quantity and description of the goods or the description of the services; and

(d) the value of the supply.

[Reg. 5 revoked and replaced by reg. 4 of GN 95 of 2013 w.e.f. 4 May 2013.]

6. Record

(1) A person who imports goods or to whom a supply of goods or services is made shall keep a record, on computer or otherwise, in respect of those goods or services, showing –

 (a) the number of the Bill of Entry and date;

 (b) the date on which the goods or services are supplied;

 (c) the date and reference number of the receipt or invoice or VAT invoice;

 (d) the description of the goods or services;

 (e) in the case of goods imported, the value for VAT purposes and the amount of VAT;

 (f) in the case of goods or services supplied to him, the value of the supply and the amount of VAT where it is evidenced by a VAT invoice; and

 (g) particulars of debit notes received.

(2) A person who exports goods or supplies goods or services shall keep a record, on computer or otherwise, in respect of those goods or services, showing –

 (a) the number of the Bill of Entry and date;

 (b) the date on which the goods or services are supplied;

 (c) the date and reference number of the receipt or invoice or VAT invoice;

 (d) the description of the goods or services;

 (e) in the case of goods exported, the value of the goods;

 (f) in the case of goods or services supplied by him, the value of the supply and if he is a registered person, the amount of VAT chargeable; and

 (g) particulars of credit notes issued.

[Reg. 6 amended by reg. 3(a) of GN 120 of 2003 w.e.f. 1 September 2003.]

7. Record of stocktaking

A registered person shall, for the purposes of the Act, keep, on computer or otherwise, a record of any physical stocktaking of goods made.

8. VAT invoice

Every VAT invoice other than a computer-generated VAT invoice shall indicate the name and address of the printer.

8A. Alternative basis of apportionment of input tax

(1) Where a registered person claims, having regard to the nature of his business, that the apportionment of input tax in accordance with section 21(3)(b) of the Act is not fair and reasonable, he may, for the purposes of section 21(3)(d) of the Act, make an application to the Director-General to use an alternative basis of apportionment of input tax.

(2) An application under paragraph (1) shall be in such form as the Director-General may approve and shall include –

 (a) the reasons for which the apportionment of input tax in accordance with section 21(3)(b) of the Act is not fair and reasonable;

 (b) the description of the alternative basis of apportionment; and

 (c) such other information as may be specified in the application form.

(3) On receipt of an application under paragraph (1), the Director-General may require such other information or document as may be necessary for the purpose of considering the alternative basis of apportionment.

(4) Where the Director-General is satisfied that, in relation to the business of the registered person, an alternative basis of apportionment would give a fair and reasonable apportionment of input tax, he may, by notice in writing, approve such alternative basis on the conditions specified in paragraph (5).

(5) An approval under paragraph (4) shall be subject to the following conditions –

 (a) the approved alternative basis of apportionment shall take effect from the beginning of the accounting period of the registered person following the date of the approval;

 (b) the registered person shall maintain appropriate records so that the alternative basis of apportionment may be readily verified by the Director-General;

 (c) where changes in the circumstances of the business no longer render the alternative basis of apportionment fair and reasonable, the registered person shall, not later than one month after the occurrence of these circumstances, notify the Director-General in writing;

 (d) the registered person shall continue to apply the alternative basis of apportionment until such time as the Director-General otherwise notifies the person in writing.

[Reg. 8A inserted by reg. 3 of GN 5 of 2002 w.e.f. 5 January 2002; amended by reg. 3(b) of GN 120 of 2003 w.e.f. 1 October 2003.]

9. Return and payment of tax

(1) For the purpose of section 22(1) of the Act, the prescribed time shall be 20 days.

(2) Every registered person whose annual turnover of taxable supply exceeds the amount specified in the Second Schedule to the Act, or who is required t

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