Following the 2015 Budget the Minister of Finance has signed an order effective August 25, 2015 that the following listed items will no longer attract Value-Added Tax at the rate of 16%, RATHER they will now be zero-rated in keeping with Schedule 1 of the Value-Added Tax Act No. 10 of 2005. The order which makes this effective is Order No. 12 of 2015.
All Consumers, Importers, VAT Registrants and other stakeholders are asked to take note of the changes accordingly.
LIST OF ITEMS TO BE ZERO-RATED
1. A supply of biscuits, including all types of sweet biscuit with or without cream filling, cookies but excluding waffles and wafers
2. A supply of cereal, (all brands of cereals)
3. A supply of fresh carrots, this includes locally produced and imported carrots.
4. A supply of powdered malt and cocoa extracts used for making beverages including Milo, Nesquik, Choco Listo and Ovaltine
5. A supply of baby cereal, including Nestum, Gerber, Cerelac.
6. A supply of mustard and mayonnaise, including Swiss, French’s, Kraft, Hellmann’s and all other brands
7. A supply of uncooked chowmein, including Champion, Lams, Imam and all other brands
8. A supply of vinegar (all brands of vinegar)
9. A supply of uncooked pasta, locally produced or imported inlcuding Kraft macaroni and cheese.
10. A supply of ketchup, including Mabel, Swiss, Hunte, Grace and all other brands
11. A supply of chicken sausages in packets, therefore chicken sausages in tins are NOT Zero Rated and attract VAT at the standard rate of sixteen percent (16%).
12. A supply of Chinese sauce, including Major, Chief, Baron and all other brands but NOT Soy Sauce, BBQ Sauce, Teriyaki Sauce, Sweet & Source Sauce, Sweet Chilli and Garlic Sauce, etc.
13. A supply of baking powder, including Champion, Lion and all other brands of baking powder.
14. A supply of liquid detergents, including laundry detergents such as Tide, All, Gain, Purex, but excluding all brands of softener.
15. A supply of cleaning agents including all brands of bleach, Fabuloso Multi Purpose Cleaner, Lysol Disinfectant liquid spray, Mistolin All Purpose Cleaner, Tilex tile cleaner, Pine Sol Multi Purpose Cleaner, Windex Glass Cleaner, Harpic Toilet Cleaner (excluding aerosol disinfectants & air freshner), toilet cleaners in blocks, disinfecting wipes, etc (Importers and Brokers please note that cleanining agents are limited to 3402.90.20.00 of the Customs Tariff)
16. A supply of paper towels( rolls) including Bounty, Scott, Charmin and all other brands
17. A supply of yogurt (all brands of yogurts)
18. A supply of flour (all types of flour including high fibre, flour made from durum wheat and other exotic flour)
19. A supply of multifunction printers for non-commercial use; multifunctional printers imported in quantities for retail sale for personal use but not including heavy duty printers for commercial use
20. A supply of items approved by the Commissioner-General (excluding motor vehicles and all-Terrain Vehicles), imported or acquired for use by charitable organisations or non- governmental organisations or for free distribution to the less fortunate.
21. A supply of all terrain vehicles for use in the mining industry and by Toshaos from approved Amerindian Communities, as approved by the Commissioner-General.
Importers should take note that the above items No. 1 to 19, will not require a C-G letter upon importation for it to be zero-rated. However, items 20 and 21 will require a Commissioner-General’s letter.
Consumers, who would have paid VAT at the rate of 16% when purchases were made of these items on August 25, 2015, or thereafter before this notice, are advised to request a refund of the VAT paid from the VAT Registrant.
Moreover, VAT Registrants are reminded that where goods that were purchased on or after August 25, 2015 of the above items from other VAT Registered Businesses, will be allowed a credit on their VAT Returns when these goods are sold at the rate of zero-percent.
It is therefore not necessary for VAT Registrants to seek a refund from other VAT Registrants.
However, where non-VAT Registered businesses would have made purchases on or after August 25, 2015 of the above items from a VAT Registered business, these businesses can request a refund of the VAT from the VAT Registered business.