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kobo
United Kingdom
7765 Posts |
 Posted - 19 Apr 2014 : 00:32:30
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1. RELEVANT USEFUL NOTES EXTRACTED FROM BANTABA TOPICS COVERED:
VAT was introduced in The Gambia effective 1 January 2013, following the enactment of the income and Value-Added Tax Act 2012.
NB: GET BETTER UNDERSTANDING OF THE VAT ACT AND A QUICK GUIDE TO TAXATION IN THE GAMBIA 2013/2014 INFORMATION FROM AUDIT & ACCOUNTANCY FIRMS here with PWC AND here with Ernst & Young
“Value Added Tax is an indirect tax that is charged on most goods and services that VAT registered businesses provide in The Gambia,”
"When the Value Added Tax (VAT) was introduced last year (2013) in the midst of confusion within the Gambia Revenue Authority (GRA), Gambian was assured that the new tax was in place of the sales tax." More with Sidi Sanneh on "Why are we still paying sales tax and VAT"
It is also charged on goods and services imported from outside the country.
There are two rates of VAT depending on the goods or services the business provides, he (Minister of Finance) said, adding that standard rate is charged at 15 per cent and zero rate at 0 per cent.
There are some goods and services that are not covered by VAT and therefore VAT are not charged on such goods and services. These include goods that are exempted from VAT outside the Gambia VAT system.
VAT is charged when a VAT-registered business sells to customers and these customers include registered and nonregistered businesses or the general public.
A VAT-registered business buys goods and services and pays VAT they are generally able to reclaim the VAT they have paid, “this is because VAT is not an additional cost” as the VAT paid could be reclaimed from the GRA.
FOROYAA REPORTED "PURA EXPLAINS VAT ON ELECTRICITY, WATER BILLS" FOR THESE NOTES EXTRACTED FROM THAT REPORT;
"The Public Utilities Regulatory Authority (PURA) has said that the Gambia Revenue Authority (GRA) came up with the decision that domestic consumers, who consume electricity up to over 1000 units in a month, are liable to pay Value Added Tax (VAT).
PURA also informs that if a consumer consumes 250 cubic metres of water in a month, she/he would also be liable to pay VAT.
“That threshold has been determined by NAWEC and obviously consumers that consume above the threshold would have to pay VAT on that amount,” PURA explained.
According to the regulatory body, the tax issue is something that affects all based on which bracket one is. This VAT issue PURA went on is a decision of GRA. It said the quantum of the charges for VAT on electricity, water and telephone is paid if it goes beyond a certain threshold domestically, that consumer would be required to pay VAT.
However, PURA said as far as they are concerned there is no increase in electricity and water cost. Telephone mobile operators and GAMTEL are still charging the same charges.
On the Consumer Parliament which has been off for some time now, PURA explains that its main area of concern for now is the provinces. PURA said that the consumer Parliament is for the urban areas while the Bantaba outreach is for the provinces.
PURA already have in-house (hotline 148). The 148 PURA added, is still available and people can call free of charge from any network from 9 am to 5pm and raise concerns and as the authority responsible it would look into it.
Authorities/Agency that were involved in the implementation of the VAT introduced to business community; from the Ministry of Finance, the Gambia Chamber of Commerce and Industry (GCCI), the Ministry of Finance and Economic Affairs (MOFEA), the Gambia Revenue Authority (GRA), the UNDP, IMP and other stakeholders.
2. FOR MORE RELEVANT INFORMATION REFER RELATED GLOBAL TAX NEWS LINK AND BANTABA TOPIC BELOW;
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Edited by - kobo on 19 Apr 2014 02:44:18 |
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VAT
