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Regulation
Registration
1.Registration
name
2.Group
registration for purposes of
section 12 (1) of the Act
3.Separate
registration of divisions of
business
4.Compulsory
registration
5.Application
for copies of certificate for
branches
6.Registration
of Ministries, Departments and
Agencies
7.Registration
by non-resident person providing
telecommunication services or
electronic commerce
8.Transfer
of a going concern
9.Taxpayer
Identification Number
10.Cancellation
of registration
Taxable Value
11. Discounts and rebates
Supply of Goods and Services
12.Supplies
made by a partnership
13.Supplies
made by members of a group
14.Supplies
made by non-resident person
15.Indicative
list for financial services
Time and Place of Supply, Tax
Invoice, Sales Receipt, and
Retail Scheme
16.Time
of supply
17.Goods
supplied on sale or return
18.Imported
goods
19.Casinos,
lottery and other game of chance
20.Place
of supply of service rendered by
non-resident portion of business
21.Tax
invoices
22.Sales
receipt
23.Notification
of decision of
Commissioner-General on the use
of sales receipt
24.Retail
scheme
25.Annual
adjustments for retail scheme
26.Approval
for the use of retail scheme
27.Use
of electronic device under
retail scheme
28.Other
schemes to be approved by the
Commissioner-General
29.Withdrawal
of privilege
Calculation of Tax Payable
30. Application of subtraction
method to used goods
Tax Returns, Records and
Assessment
31.Value
Added Tax records
32.Manner
of maintaining records by branch
or division
33.Manner
of maintaining records by
registered group
34.Assessment
to include interest and
penalties
35.Liability
of persons ceasing to be
partners
36.Liability
of members of a registered group
Deduction of Input Tax and
Refunds
37.Non-deductible
input tax
38.Entertainment
expenses
39.Supplies
made to a non-resident leaving
the country
40.Relief
supply
41.Input
tax on benefits
42.Repatriation
of export proceeds
43.Denial
of input tax
Miscellaneous Provisions
44.Returnable
container
45.Use
of banks
46.Contracts
entered into before and after
the effective date of the tax
47.Value
Added Tax manuals
48.Purchases
prior to registration
49.Tax
payable by auctioneer
50.Bad
debts
51.Separate
supply
52.Application
of offences and matters
petaining to the tax
52. Interpretation
SCHEDULE
Indicative List for Financial
Service
L.I. 2243
IN exercise of the power
conferred on the Minister
responsible for Finance by
section 64 of the Value Added
Tax Act, 2013 (Act 870), these
Regulations are made this 30th
day of June, 2016.
Registration
Registration name
1.
The name for registration of a
taxable person for value added
tax purposes shall
(a)
in the case of an individual, be
the name of the individual,
except that where the
application indicates a business
registered name, the name for
registration shall be both the
individual name and the business
name;
(b)
in the case of a partnership, be
the name of the partnership; and
(c)
in any other case, be the name
submitted on the application
form for registration.
Group registration for purposes
of section 12 (1) of the Act
2.
(1) Two or more corporate bodies
may on an application to the
Authority be registered as
members of a group under
subsection (1) of section 12 of
the Act, if each is a registered
corporate body in the country
and has an established place of
business in the country, and
(a)
one of them controls the others
in the group; or
(b)
one company controls all the
members of the group.
(2) Subject to subregulations
(3) and (4), where a group of
taxable persons apply, for the
purpose of payment of the tax,
to be treated as one designated
taxable person, the
Commissioner-General may by
written notice to the applicants
(a)
approve that the persons form a
registrable group for the
purposes of subsection (1) of
section 12 of the Act;
(b)
nominate a representative member
for the group under section 62
of the Act; and
(c)
register the persons as a group.
(3) The Commissioner-General
may, before registering a number
of persons as a group under
subregulation (2), direct that a
specified person be included in
the group or excluded from the
group.
(4) The Commissioner-General may
in writing to a group after the
registration of the group under
this regulation,
(a)
appoint one member of the group
as the representative member of
the group,
(b)
include a further company in the
group,
(c)
exclude a company from the
group, or
(d)
declare the group registration
cancelled,
where the Commissioner General
considers it necessary to do so
for the effective collection of
the tax.
Separate registration of
divisions of business
3. A taxable person shall, in an
application for separate
registration under subsection
(3) of section 12 of the Act,
state the divisions including
self-accounting branches of the
business where there are more
than two branches or divisions
of the business.
Compulsory registration
4.
(1) Where a person who qualifies
as a taxable person fails to
apply for registration, the
Commissioner-General may notify
and direct that person in
writing to apply to be
registered within thirty days
after service of the notice on
that person.
(2) Where a person notified by
the Commissioner-General fails
to apply for registration, the
Commissioner-General may issue a
warrant in the form and manner
determined by the Commissioner
-General to lock up or seal off
the business premises of that
person until the person applies
for registration.
(3) The Commissioner-General or
an officer in the discharge of
duties under this regulation or
any other regulation may seek
the assistance of the Police.
Application for copies of
certificate for branches
5. (1) In accordance with
paragraph (b) of subsection (2)
of section 9 of the Act, a
taxable person who has branches
in other locations shall apply
for copies of the certificate,
in the form and manner
determined by the
Commissioner-General, for each
of the branches where the person
engages in a taxable activity.
(2) An individual who engages in
a taxable activity different
from the registered taxable
activity shall apply for a
certificate in the name of that
other taxable activity in the
form and manner determined by
the Commissioner-General and
subregulation (1) shall apply if
that taxable activity also has
branches.
(3) The copies of the
certificate shall be provided at
a fee determined by the
Commissioner-General.
(4) A person may apply to the
Commissioner-General for a copy
of the certificate where the
certificate of that person has
been lost, mutilated or
destroyed.
(5) The Commissioner-General
shall, upon being satisfied that
the certificate has been lost,
mutilated or destroyed, issue to
the taxpayer a certified copy of
the registration certificate
upon payment of the fees
determined by the
Commissioner-General.
Registration of Ministries,
Departments and Agencies
6.
For the purposes of paragraph
(c) of subsection (1) of
section 11 of the Act, a
Ministry, Department, Agency,
statutory body, District
Assembly or other entity of
Government shall register for
the tax when it carries on
taxable activity including
(a)
auction;
(b)
hiring of equipment;
(c)
renting of space; or
(d)
any activity commonly conducted
for profit.
Registration by non-resident
person providing
telecommunication services or
electronic commerce
7. (1) For the purpose of
section 16 of the Act, the
Commissioner- General may in
writing and subject to
conditions that the
Commissioner- General may
determine, permit a non-resident
person providing
telecommunication services or
electronic commerce to
(a)
register for the tax;
(b)
file returns; or
(c)
account for the tax by
electronic means.
(2) A person who acts as an
agent or carries on business on
behalf of a non-resident person
who is required to register
under section 16 of the Act but
who has failed to register shall
register for the tax.
(3) For the purpose of this
regulation, "an agent" includes
a representative or any other
person representing the interest
of a taxpayer in this country
whether or not there is a
subsisting contract between the
person and the taxpayer.
Transfer of a going concern
8.
(1) For the purposes of a
transfer of a business as a
going concern under the Act,
(a)
a going concern is not a dormant
or prospective business but an
income-generating activity
capable of separate operation
and that is in fact operational
and capable of
operating without interruption
after the transfer;
(b)
a transfer qualifies as a
transfer of a going concern
where it constitutes the entire
taxable activity of the supplier
that is a going concern or a
portion of such taxable activity
capable of being carried on as a
going concern;
(c)
a supply can constitute a
transfer of a going concern even
where the transferred business
is not profitable, or is being
transferred to a liquidator,
receiver, trustee in a
bankruptcy or other person
appointed upon the insolvency of
a taxable person;
(d)
the supply is not zero rated
unless a notice in writing in
the prescribed form signed by
both the transferor and
transferee is filed with the
Commissioner-General fourteen
calendar days prior to the date
the sale, transfer, or
acquisition of legal interest
takes place and contains the
details of the supply.
(2) For the purposes of
subregulation (1), a sale is
deemed to be concluded where
(a)
consideration is paid, whether
partial or in full;
(b)
the deed of sale is duly
executed;
(c)
the rights, assets and
liabilities attributed to the
sale become the entitlement of
the transferee; or
(d)
the operation of taxable
activities is in the control of
the purchaser.
(3) A taxable person who in
respect of a transfer of a
business as a going concern
fails-to comply with subsection
(4) of section 18 of the Act
does not qualify for zero
rating.
(4) Despite paragraph (c)
of subregulation (1), a lawful
sale of a going concern shall
not attract any criminal
liability.
Taxpayer Identification Number
9.
The Commissioner-General shall,
before the registration of a
person or group of persons for
the purposes of the tax, issue
to that person or group of
persons, a Taxpayer
Identification Number, where
that person or group of persons
do not already have a Tax
Identification Number.
Cancellation of registration
10.
(1) The Commissioner-General may
cancel a registration pursuant
to an application made in the
prescribed form, where
(a)
the Commissioner-General is
satisfied that the registered
taxpayer
(i) did not meet the
registration threshold during
the twelve month period
immediately before the
application was made, or
.(ii) will not meet the
threshold during the twelve
month period following the date
of the application; and
(b)
a minimum period of two years
has elapsed since the effective
date. of the registration.
(2) Subregu1ation (1) does not
apply to
(a)
an auctioneer;
(b)
the Government; or
(c)
a promoter of public
entertainment.
Taxable Value
Discounts and rebates
11.
For the purpose of determining
consideration in respect of the
value for taxable supply under
section 43 of the Act, any
discount or rebate is acceptable
only if the discount or rebate
is non-discriminatory and
available to every recipient of
the supply.
Supply of Goods and Services
Supplies made by a partnership
12.
Where two or more persons in a
partnership make a taxable
supply, the partnership shall,
for the purposes of the Act, be
the supplier of the goods or
services.
Supplies made by members of a
group
13. Where two or more corporate
bodies have been registered as
members of a group under these
Regulations, any business
carried on by a member of the
group shall be treated as being
carried on by the representative
member, and
(a)
any supply of goods or services
by a member of the group to
another member of the group
shall be disregarded for the
purposes of the tax;
(b)
any other supplies made by or to
a member of the group shall be
treated as supplies made by or
to the representative member
appointed under paragraph (b)
of subregulation (2) of
regulation 2; and
(c)
any tax paid or payable by a
member of the group on the
importation of goods from a
place outside the country shall
be treated as paid or payable by
the representative member and
the goods shall be treated as
imported by the representative
member.
Supplies made by non-resident
person
14.
A transaction involving either
goods or services supplied in
the country by a non-resident
person shall be considered to
have been made in the country,
if,
(a)
the transaction is made in the
course of a business carried on
in the country; and
(b)
at the time of the transaction,
the person is registrable under
the Act.
Indicative list for financial
services
15.
Pursuant to item 19 of paragraph
(a) of the First Schedule
of the Act, the supply of the
financial services specified in
the Schedule shall be subject to
the tax.
Time and Place of Supply, Tax
Invoice, Sales Receipt, and
Retail Scheme
Time of supply
16.
(1) A supply under a scheme of
advance payment occurs when a
phone card, cellular phone
prepayment or other form of
advance payment is supplied or
made.
(2) A supply of goods by
transfer on consignment occurs
when the documents on the goods
have been entered in the name of
the consignee.
(3) Where a contract for a
taxable supply provides for
retention by the recipient of
part of the purchase price
pending satisfactory completion
of the whole or part of the
contract, the tax becomes
payable on the part of the
purchase price retained, on the
occurrence of any of the
following events, whichever
occurs earlier:
(a)
payment of the retained part of
the purchase price becomes due
to the supplier;
(b)
payment of the retained part of
the purchase price is received
by the supplier; or
(c)
on issue by the supplier of a
tax invoice for the retained
part of the purchase price.
(4) A taxable supply made under
the contract, other than under a
hire-purchase 'agreement, that
is appropriated for the use of
some person other than the
purchaser under the terms of the
contract in circumstances where
the total consideration is not
determined at the time of
appropriation is deemed to have
taken place when any of the
following events occurs,
whichever occurs earlier:
(a)
payment of the whole or part of
the consideration for the supply
becomes due to the supplier;
(b)
payment of the whole or part of
the consideration for the supply
is received by the supplier; or
(c)
on issue by the supplier of a
tax invoice for the supply.
Goods supplied on sale or return
17.
Where goods are supplied on sale
or return, the tax point is the
earliest of
(a)
the date when the purchaser
chooses to keep the goods;
(b)
the issue of a tax invoice by
the seller;
(c)
the receipt of payment by the
seller, other than a deposit;
(d)
the expiry of the period within
which the customer may return
the' goods; or
(e)
twelve months after the date of
dispatch by the seller.
Imported goods
18.
The time of supply for imported
goods is
(a)
the time at which the import
duties on the goods become due
under the Customs Act, 2015 (Act
891);
(b)
in the case of goods removed
from an export-processing zone,
the time at which the import
duties on the goods be- come
due; and
(c)
in any other case when the goods
are brought into the country.
Casinos, lottery and other game
of chance
19.
(1) The time of supply for
gaming activity is subject to
the following provisions:
(a)
for the supply of services
involving number forecasting,
lottery or any other game of
chance, the time of supply shall
be the time at which the numbers
are drawn or at which the
results are declared;
(b)
for the supply of services
involving horse racing or other
similar racing, the time of
supply shall be the time at
which the race takes place;
(c)
for the supply of service by a
gaming machine, the time of
supply shall be the time at
which collection is removed from
the machine, or the time at
which the transaction is
recorded by the machine,
whichever is earliest.
(2) The time of supply of
services involving casino
betting shall be on the last day
of the taxable period in which
the supply takes place.
Place of supply of service
rendered by non-resident portion
of a business
20.
(1) In pursuance of subsection
(3) of section 42 of the Act,
services rendered by a
non-resident portion of a
business to the portion of the
business carried on in this
country
(a)
is treated as services imported
into the country by the portion
of the business carried on in
the country; and
(b)
is chargeable to the tax in
accordance with paragraph (c)
of sections 2 and 53 of the
Act.
(2) Subject to these
Regulations, subregulation (1)
applies to all services rendered
and includes the storage by an
overseas portion of the business
of computer data of the business
carried on in the country.
Tax invoices
21.
(1) A taxable person shall, in
accordance with subsection (1)
of section 41 of the Act, on
supply of taxable goods or
service to a customer issue to
the customer a tax invoice.
(2) A tax invoice shall contain
the following:
(a)
the name, address and Tax
Identification Number of that
taxable person;
(b)
the date and time of supply;
(c)
the number of the invoice taken
from a consecutive series;
(d)
the name of the customer or
business name and address and
Tax Identification Number if a
taxable person;
(e)
a description sufficient to
identify the goods or services
supplied including the quantity
of the goods or the extent of
the services supplied;
(f)
the type of transaction by
reference to the following
categories:
(i) sale;
(ii) hire purchase, hire, lease
or rental;
(iii) exchange;
(iv) goods and services supplied
from the taxable person's own
supplies;
(g)
the tax-exclusive charge for
each description of goods or
services supplied;
(h)
the rate of the tax;
(i)
the total charge on the invoice,
exclusive of the tax;
(j)
the rate of any discount;
(k)
the total tax charged; and
(l)
the total charge inclusive of
the tax.
(3) Unless a registered person
is authorised by the
Commissioner- General in writing
to print that person's own
invoice similar to the invoice
prescribed by the
Commissioner-General, the tax
invoice issued by a registered
person shall be the invoice
printed by the Commissioner-
General.
(4) Where under subregulation
(3), a person is authorised, the
authorisation shall be for a
period determined by the
Commissioner- General and
authorisation may be renewed.
(5) An original tax invoice
shall not be provided in any
circum- stance other than that
specified in subregulation (1).
(6) In the case of supplies
made at the retail stage where
recipients are not taxable
persons, the tax may be charged
in accordance with regulations
22 to 28.
(7) In the case of import of
goods, the appropriate customs
forms and receipts certifying
payment of the tax shall be used
as the control document for
establishing eligibility for
input tax credit.
Sales receipt
22.
(1) A taxable person who makes a
taxable supply may apply for
approval to use a sales receipt
pursuant to subsection (3) of
section 41 of the Act.
(2) The Commissioner-General may
authorise the issue of a sales
receipt where
(a)
the taxpayer makes low value,
high volume supplies;
(b)
supplies are paid for in cash;
and
(c)
the taxable person uses an
electronic device approved by
the Commissioner-General for the
issue of the sales receipt.
(3) The sales receipt in
subregulation (1) shall be
printed in duplicate and shall
contain the following minimum
information:
(a)
the name and full address of the
supplier;
(b)
the Tax Identification Number;
(c)
the serial number of the
receipt;
(d)
either the gross amount of the
transaction, including the tax
or the amount of the transaction
and the tax; and
(e)
the date of the transaction.
(4) The authorisation shall be
for a period determined by the
Commissioner-General and may be
renewed.
(5) Despite subregulation (2),
upon a request by a purchaser
who is registered for the tax,
the vendor shall issue a tax
invoice showing the information
required by or under subsection
(6) of section 41 of the Act
making reference to the serial
number of the receipt covering
the transaction.
(6) A sales receipt does not
qualify for input tax deduction.
Notification of decision of
Commissioner-General on the use
of sales receipt
23.
(1) The Commissioner-General
shall, in writing, notify any
person of a decision to approve
or reject an application to
issue a sales receipt within
thirty days of receipt of the
application.
(2) Despite subregulation (1),
where the Commissioner-General
requests for additional
information from the taxpayer,
the thirty days shall begin from
the day the information is
provided.
Retail scheme
24.
(1) A taxable person who is a
retailer of taxable goods may
apply for approval to use a
retail scheme.
(2) A taxable person who has
been given approval by the
Commissioner-General under
subregulation (1) shall
(a)
record the value and brief
details of each supply as it
occurs and before the goods
leave the business premises;
(b)
keep copies of all purchase
invoices issued by suppliers;
(c)
keep a cash register, book, or
other records of all daily gross
takings received and cash
payments made at the time that
they are made and at the end of
each day the takings received
and the cash payments made shall
be totaled separately; and
(d)
record in the appropriate
records at the end of each month
the output tax chargeable on
supplies made and deductible
input tax shown on tax invoices
in respect of supplies
received.
(3) For the purpose of paragraph
(d) of subregulation (2),
the output tax shall be
calculated by applying the
following method:
Step 1: Add up the total daily
gross takings in the month; and
Step 2: Multiply the total at
Step 1 by the tax fraction
defined under section 65 of the
Act.
(4) Where a retailer of goods
makes both taxable and exempt
supplies, the retailer shall
first apportion the daily gross
takings between taxable supplies
and exempt supplies.
(5) For the purpose of
subregulation (4), the retailer
shall
(a)
keep a separate record of exempt
supplies and deduct the total of
the exempt supplies from the
daily gross takings in the
month; or
(b)
calculate from the purchase
records, the total value of all
goods purchased for resale in
the month and the total value of
taxable goods purchased for
resale in the month.
(6) For purposes of paragraph
(a) of subregulation (5),
the output tax shall be
calculated by applying Step 2 in
subregulation (3) to the
balance.
(7) For the purpose of paragraph
(b) of subregulation (5),
the output tax shall be
calculated by applying the
following method:
Step I: Divide the total taxable
purchases for resale in the
month by the total purchases for
resale in the month;
Step 2: Multiply the result of
Step I by the total daily gross
takings in the month; and
Step 3: Apply the tax fraction
to the result of Step 2.
Annual adjustments for retail
scheme
25.
(1) A taxable person who
calculates the output tax using
the method specified in
paragraph (b) of
subregulation (4) of regulation
24 shall, on the anniversary of
starting to use the method and
on each subsequent anniversary,
make an annual adjustment to the
output tax for that year.
(2) The adjustment shall be
calculated by applying the same
method but substituting
purchases for resale in the year
for purchases for resale in the
month in Step I and substituting
total daily gross takings in the
year for total daily gross
takings in the month in Step 2.
(3) The taxable person shall
compare the result of this
adjustment with the total output
tax previously calculated for
that year and adjust the
difference on the return for the
next accounting period.
(4) In the event of a change in
the rate of the tax, a taxable
person shall make an adjustment
to the output tax to cover the
period from the date of the last
adjustment until the date of the
change in the rate of the tax
and on each anniversary of the
change.
Approval for the use of retail
scheme
26. (1) The Commissioner-General
may authorise the use of retail
scheme for a period determined
by the Commissioner-General and
the authorisation may be
renewed.
(2) A taxable person who is
authorised to operate a retail
scheme shall issue a sales
receipt under regulation 22.
Use of electronic device under
retail scheme
27. A taxable person who
operates a retail scheme shall
install an electronic device
provided for under paragraph
(c) of subregulation (2) of
regulation 22.
Other schemes to be approved by
the Commissioner-General
28. (1) The Commissioner-General
may, in accordance with
paragraph (g) of
subsection (1) of section 64 of
the Act, issue directives to
authorise the .use of other
appropriate schemes by a
registered retailer to ensure
the proper accounting for the
tax.
(2) The Commissioner-General may
issue directives authorising
other methods of taking account
of the output tax chargeable and
input tax deductible by other
registered persons.
Withdrawal of privilege
29. The Commissioner-General may
(a)
revoke the authorisation to
issue an own invoice or sales
receipt, and
(b)
withdraw the right to operate a
scheme from a registered person
at any time,
if the conditions specified
under these Regulations are
breached or any other directives
are not complied with to the
satisfaction of the Commissioner
-General.
Calculation of Tax Payable
Application of subtraction
method to locally procured used
goods
30. (1) A taxable person who
deals in locally procured used
goods may apply to the
Commissioner-General for
approval to charge the tax on
the difference between the
buying price and the selling
price of certain used goods
subject to the condition that no
input tax shall be taken on any
goods purchased for resale, and
a permanent record will be kept
showing
(a) in respect of
purchases,
(i) the date of the purchase;
(ii) the name and full address
of the person from whom the
goods were purchased;
(iii) a sufficient description
of the goods to clearly identify
them, including part and serial
numbers, if any; and
(iv) the total amount paid; and
(b)
in respect of sales,
(i) the date of the sale;
(ii) the name and full address
of the person to whom the goods
are sold to;
(iii) the selling price,
exclusive of the tax;
(iv) the difference between the
purchase price and the selling
price;
(v) the rate of the tax;
(vi) the amount of the tax on
the difference; and
(vii) the total amount received.
(2) The details specified in
subregulation (1) shall be
recorded at the same time as the
respective purchase or sale is
made.
(3) Where a taxable person has
been granted approval by the
Commissioner-General to use the
subtraction method, a sales
receipt provided for in
regulation 22 shall be issued in
place of a tax invoice.
(4) Where the transaction
involves used goods and is
between two registered persons,
the normal method for accounting
for the tax shall apply.
(5) If the registered person
using the subtraction method
described in this regulation
fails to maintain satisfactory
records that registered person
shall be required to account for
the tax on the full selling
price of the goods sold and pay
the amount of the tax with the
next tax return.
Tax Returns, Records and
Assessment
Value Added Tax records
31.
(1) Each registered person
shall, unless otherwise provided
for in this regulation, for the
purpose of accounting for the
tax, keep the following records:
(a)
a Value Added Tax account to
show total output tax and the
amount due to or due from the
Commissioner-General for each
month;
(b)
relevant business and accounting
records including sales and
purchase journals, cash books,
ledgers and other subsidiary
books of account;
(c)
copies of all tax invoices and
sales receipts issued;
(d)
tax invoices and sales receipts
received;
(e)
documentation relating to the
importation and exportation of
goods and services;
(f)
all debit and credit notes or
other documents providing
evidence of an increase or
decrease in the value of goods
and services purchased or sold;
and
(g)
any other records that the
Commissioner-General may
specify.
(2) The accounting software used
by a registered person shall be
one that is approved by the
Commissioner-General.
(3) On application by a
registered person, the
Commissioner- General may permit
the records required to be kept
under the Act and under these
Regulations to be maintained
electronically, subject to the
conditions that
(a)
the Commissioner-General shall
have unrestricted access to the
records of the registered person
during normal business hours;
(b)
the registered person shall
provide, at the expense of the
registered person, print-outs of
any information required by the
tax officer;
(c)
the registered person shall
provide a competent Information
Communication Technology
personnel, at the expense of the
registered person, to assist the
Commissioner- General in any
verification or audit the
Commissioner- General may wish
to conduct; and
(d)
the registered person shall make
the records available for
examination by the
Commissioner-General whenever
examination is required.
(4) The registered person shall
keep the records required to be
kept under subregulation (1) for
a minimum period of six years
and shall after the six years,
only destroy the records with
the written permission of the
Commissioner-General.
Manner of maintaining records by
branch or division
32. Where a business opts for
each branch or division to be
registered
separately under subsection (3)
of section 12 of the Act, each
branch or
division registered separately
shall maintain separate
accounting records
for the purpose of the tax and
shall file returns accordingly.
Manner of maintaining records by
registered group
33. (1) Where a group of
corporate bodies opts to be
registered as a single unit
under subsection (3) of section
12 of the Act, all the members
of the group shall adopt the
same tax period and the same
accounting basis for the tax.
(2) Despite the fact that no
output tax shall be paid on
transactions between members of
the group, each member of the
group shall maintain distinct
records, including tax invoices,
for all transactions between
members of the group.
Assessment to include interest
and penalties
34. The amount of an assessment
issued under section 54 of the
Act shall include any interest
payments and penalties incurred
by the-taxable person up to the
date of issuance of the
assessment.
Liability of persons ceasing to
be partners
35. A person who notifies the
Commissioner-General of the
intention of that person to
cease to be a partner in a
business, remains jointly and
severally liable for the payment
of any taxes due from the
business in any prescribed
accounting periods up to the
time that person ceased to be a
member of the partnership.
Liability of members of a
registered group
36. Where a number of corporate
bodies have been registered as
members of a group under these
Regulations, each member of the
group is liable for any tax due
from the representative of the
group to the
Commissioner-General.
Deduction of Input Tax and
Refund
Non-deductible input tax
37.
(1) The restriction on deduction
of input tax on a motor vehicle
and vehicle spare parts,
specified in subsection (5) of
section 48 of the Act, does not
apply to
(a)
a motor vehicle purchased or
imported by a taxable person who
is in the business of dealing in
or hiring of motor vehicles for
the purposes of the business; or
(b)
a motor vehicle, other than a
motor car, purchased or imported
by a taxable person wholly,
exclusively and necessarily for
use in the business.
(2) For the purposes of this
regulation, a motor car is any
motor vehicle of a kind normally
used on public roads which has
three or more wheels and
(a)
is constructed or adapted solely
or mainly for the carriage of
passengers; or
(b)
to the rear of the driver's
seat, has roofed accommodation
which is fitted with side
windows or which is constructed
or adapted for the fitting of
side windows.
(3) Despite subregulation (2), a
motor car does not include
(a)
a vehicle capable of
accommodating only one person or
suitable for carrying twelve or
more persons;
(b)
a vehicle of not less than three
tonnes unladen weight;
(c)
an ambulance or a prison van; or
(d)
a vehicle constructed for a
special purpose other than the
carriage of persons and which
does not have any other
accommodation for carrying
persons than what is incidental
to that purpose.
Entertainment expenses
38.
For the purposes of subsection
(6) of section 48 of the Act,
entertainment expenses include
(a)
food and other ingredients
purchased in order to provide
meals to staff, clients, and
business associates and includes
(i) year-end lunches and
parties,
(ii) hiring of venues for those
functions;
(iii) expenses incurred for the
provision of free meals at
workplace canteens; and
(iv) complimentary staff
refreshments in the nature of
tea, coffee and other beverages,
or snacks provided to staff;
(b)
business lunches, golf days, or
other entertainment of customers
and clients in restaurants,
theatres, night clubs or
sporting events;
(c)
goods and services in the nature
of catering services, furniture,
equipment, utensils and similar
goods and services used in
canteens, kitchens, and dining
rooms acquired for providing
employees with subsidised or
free meals if the direct and
indirect costs of providing
those benefits and facilities
are not covered by the price
charged;
(d)
beverages, meals, entertainment
shows, amusements or other
hospitality supplied to
customers and clients at product
launches and promotional events;
and
(e)
capital goods in the nature of
hospitality boxes, holiday
houses, yachts, private
aircraft, and similar goods
which are used for
entertainment.
Supplies made to a non-resident
leaving the country
39.
The Commissioner-General may
authorise refund of the tax
charged on goods purchased in
the country for consumption
outside the country by a person
not resident or domiciled in the
country.
Relief supply
40.
For the purposes of subsection
(2) of section 38, unless
otherwise directed by the
Minister, a person entitled to
relief shall be required to pay
the tax and apply for refund in
accordance with section 50 of
the Act.
Input tax on benefits
41.
(1) Input tax, incurred by a
registered taxpayer on inputs
for an employee of that tax
payer, is not deductible, unless
it is proven to the satisfaction
of the Commissioner-General that
the input was sold to the
employee or rendered to the
employee as a service, and the
sale or the service is included
in the periodic return of the
dealer as a taxable transaction,
the price of which was set in
accordance with the provisions
of
subsection (8) of section 48 of
the Act.
(2) For the purposes of
subregu1ation (1),
"employee" includes a person who
shares in the ownership of the
business or is one of the
directors of the business; and
"input", in respect of an
employee means an asset or a
service, in the nature of a
meal, housing, gifts or
entertainment or any other
similar asset intended for the
enjoyment, profit, welfare or
benefit of an employee or of
members of the family of the
employee.
Repatriation of export proceeds
42.
For the purposes of subsection
(1) of section 50 of the Act,
repatriation oftota1 export
proceeds is subject to any
enactment in force which allows
the taxable person to retain
part of the export proceeds
outside the country. .
Denial of input tax
43.
A taxable person shall be denied
deduction of input tax paid on
acquisition of goods or services
in subsection (4) of section 19
and section 25 of the Act only
where the taxable person is not
entitled to deductible input tax
under subsections (5), (6) and
(7) of section 48 of the Act.
Miscellaneous Provisions
Returnable container
44.
(1) For the purposes of section
65 of the Act, a returnable
container is a container that is
(a)
an article of a permanent
character strong enough to be
suitable for repeated use;
(b)
specially designed to facilitate
the carriage of goods by one or
more modes of transport without
intermediate reloading;
(c)
fitted with a device that
permits ready handling and
particularly its transfer from
one mode of transport to the
other; and
(d)
designed to be easy to fill and
empty.
(2) For the purpose of
subregu1ation (1), a returnable
container includes
(a)
a heavy duty container for
industrial application; .
(b)
industrial gas or oxygen
cylinder;
(c)
a pallet container;
(d)
shipping and protective storage
bin; and
(e)
any other container that may be
approved by the Commissioner
-General.
Use of banks
45.
(1) The Commissioner-General may
enter into an agreement with any
bank under which the bank agrees
to receive tax returns and tax
payments on behalf of the
Authority.
(2) The use of a bank under an
agreement under this regulation
does not relieve the
Commissioner-General of the
responsibility to collect and
account for the tax.
Contracts entered into before
and after the effective date of
the tax
46.
(1) Where a contract was
concluded between two or more
parties before the effective
date of the tax, and no
provision relating to the tax
was made in the contract, the
supplier shall recover the tax
due on any taxable supplies made
under the contract after the
effective date of the tax.
(2) Where a contract concluded
after the effective date of the
tax does not include a provision
relating to the tax, the
contract price shall be deemed
to include the tax and the
supplier under the contract
shall account for the tax due.
(3) For the purpose of this
regulation, effective date of
the tax refers to the date the
tax became applicable to the
taxable person.
Value Added Tax manuals
47.
The Commissioner-General may
issue administrative,
accounting, and operational
manuals, that the
Commissioner-General considers
necessary for collecting and
accounting for the tax.
Purchases prior to registration
48.
(1) A taxable person may benefit
from subsection (12) of section
48 of the Act if that taxable
person
(a)
is in possession of an invoice
or the relevant customs
documentation and receipts of
payments made; and
(b)
produces an inventory of all
goods on hand on the effective
date of registration.
(2) A taxable person shall
submit a claim for recovery of
the tax under subsection (12) of
section 48 of the Act in the
form and manner determined by
the Commissioner -General.
Tax payable by auctioneer
49.
(1) Where an auctioneer makes a
taxable supply of goods under an
auction, the auctioneer shall
charge the output tax
(a)
on the amount of a successful
bid; or
(b)
in the case of a sale
out-of-hand, the purchase price.
(2) An auctioneer shall account
and pay for the output tax
whether or not it is included in
the total cost or price charged
to the bidder or purchaser.
(3) An auctioneer shall account
for the tax on the supply of
services provided in the normal
course of business.
Bad debts
50.
Pursuant to paragraph (b)
of subsection (3) of section 46
of the Act, a debt shall be
considered irrecoverable where a
taxable person satisfies the
Commissioner-General of the
following:
(a)
the taxable person has
undertaken action for recovery
of the debt;
(b)
the action for the recovery has
exhaustively proven futile; and
(c)
the taxable person has made all
the necessary entries in the
book of accounts.
Separate supply
51.
Without limiting section 31 of
the Act and for the purpose of
section 23 of the Act, a part of
supply of goods and services
shall be treated as reasonably
capable of being supplied
separately only where the part
is not incidental to the supply.
Application of offences and
matters petaining to the tax
52. The provisions of the Act
regarding offences in respect of
the tax and matters pertaining
to the tax apply to these
Regulations.
Interpretation
53. (1) Words and expressions
used in these Regulations have
the same meaning as in the Act.
(2) In these Regulations, unless
the context otherwise requires,
"assessment" means the
verification of the tax
liability of a taxpayer by the
Commissioner-General;
"collection" means the removal
of token or money from a gaming
machine;
"District Assembly" includes
Metropolitan and Municipal
Assemblies;
"export processing zone" means a
free zone as declared under
section 7 of the Free Zone Act,
1995 (Act 504);
"going concern" means a business
entity which is not likely to
cease operation in the forseable
future as specified in
regulation 8;
"permanent record" means a
record either in electronic or
print format that can last for a
period of at least six years;
"retail scheme" means one of the
methods of accounting for the
tax as set out in regulations
26, 27 and 28;
"Tax Identification Number"
means a unique number used to
identify a tax payer registered
by the Commissioner- General
under section 4 of the Taxpayers
Identification Numbering System
Act, 2002 (Act 632);
"transfer of consignment" means
the process of transfering
ownership of goods from one
person to another person; and
"sales receipt" means a receipt
generated by a cash register or
an electronic point of sale
device on the authority of the
Commissioner-General as
specified in regulation 22.
SCHEDULE
(Regulation 15)
INDICATIVE LIST FOR FINANCIAL
SERVICES
Financial services for which
fees, commissions and similar
charges imposed are subject to
the tax or the National Health
Insurance Levy under the
provisions of the Act include
services relating to
1.Current
accounts, foreign and local
2.Bank
draft, payment order
3.Stopped
cheques
4.Returned
cheques
5.Commission
on turnover
6.Overdraft
processing or renewal fee
7.Revolving
acceptance credit
8.Arrangement
fee for facilities
9.Statements
and certificates of balance
10.Clearing
charges
11.Cheques
for collection
12.Standing
orders
13.Telephone
banking
14.Safe
custody
15.Cheque
books including
(a)
sale of cheque leaflet; and
(b)
replacement of lost cheque book
16.Issuance
of debit cards and credit cards
17.Revolving
credits
18.Collateral
management
19.Transfer
of documents to other banks
20.Guarantees,
bonds, tender, performance
21.Request
for forex drafts
22.Outwards
transfer: swift or telex (a)
drafts or money orders
23.Travelers
cheques, drafts
24.Cheque
lodgments for corporate bodies
and third parties only
25.Evacuation
fee, cash-in-transit
26.Unpaid
standing order
27.Closure
of accounts
28.Remote
banking services including
(a)
online banking;
(b)
electronic statement;
(c)
e-clients;
(d)
phone banking;
(e)
short messaging service banking;
(f)
mobile banking;
(g)
monthly subscription; and
(h)
financial transaction fee.
29. Lending fees including
(a)
commitment fee, arrangement fee,
processing fee, facility fee and
other similar fee;
(b)
processing fee;
(c)
property valuation fee, open
market value;
(d)
guarantee commission;
(e)
bid security;
(f)
bank credit letter, letter of
intent;
(g)
mobilisation guarantee;
(h)
retention guarantee;
(i)
performance bond; and
(j)
.default or restructured.
30. Other loans, excluding
salary advance but including
(a)
arrangement fees;
(b)
new loans;
(c)
top-ups; and
(d)
early settlement fees.
31. Letters of credit, imports
including
(a)
establishment commission
(i) arrangement fee; and
(ii) presentation under the
drawings;
(b)
amendments in the nature of
(i) increase in amount;
(ii) extension of period;
(iii) extension of period -
another quarter; and
(iv) discrepancy; and
(c)
other amendments.
32. Documentary bills for
collection, imports including
(a)
handling charges - customers;
(b)
negotiation commission;
(i) advice of fate;
(ii) bills deleted; and
(iii) protest;
(c)
payment commission in the nature
of per quarter holding charges;
(d)
prior approval, customers in
respect of
(i) own resources;
(ii) telex or cable charges; and
(iii) swap charge; and
(e)
customers allocated funds from
bank in relation to (i)
exchange; and
(ii) telex or cable charges.
HON SETH E. TERKPER
Minister responsible for Finance
Date of Gazette
notification: 4th July, 2016.
Entry into force: 3rd August,
2016.
. .
GHANA PUBLISHING COMPANY LTD.
ASSEMBLY PRESS. ACCRA.
GPCLlA614!l.50010S/2016
Website:
www.ghpublishingcompany.corn
E-mail:
inro@ghpublishingcompany.com
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