5. Scope and Coverage of the Value Added Tax The Value Added Tax 2013, (Act 870) extends the coverage of the tax to some business activities which were hitherto outside the tax net. These include the following business activities; a) The sale of immovable property by an estate developer. (“estate developer” means a commercial establishment engaged in the business of the construction and sale of immovable property) b) The supply of financial services that are rendered for a fee, commission or a similar charge. “Financial services” means provision of insurance; issue, transfer, receipt of, or dealing with money whether in domestic or foreign currency or any note or order of payment of money; provision of credit; or operation of a bank account or an account of a similar institution Life insurance and reinsurance services are however exempt from the tax whether or not such services are rendered for a fee, commission or a similar charge c) A supply of domestic transportation of passengers by air; and the supply of haulage as well as the rental or hiring of passenger and other vehicles. d) The business activities of auctioneers and promoters of public entertainment e) The business of gymnasium and spa f) The manufacture or supply of pharmaceuticals listed under Chapter 30 of the Harmonized Systems Commodities Classification Code, 2012 other than supplies at the retail stage.
Posted on: Tue, 22 Apr 2014 10:21:59 +0000
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