SURINAME: The Value Added Tax (VAT) Act has been approved by Parliament and will become effective as per January 2023
August 31, 2022
The Value Added Tax (VAT) Act has been approved by Parliament and will become effective as per January 2023
The Value Added Tax (VAT) Act has been approved yesterday by Parliament and will become effective as per January 2023.
With the introduction of the VAT, the current Sales Tax Act (i.e. Turnover Tax) will no longer be in effect as per 2023.
Compared to the soon-to-be-expired Sales Tax Act, a few things will change for the taxable Entrepreneur:
· In contrast to the Sales Tax, there is an expansion of the taxed services. In principle, the supplies of goods and services (performances) are taxed, unless explicitly exempt by Law;
· The tax remittance is no longer due from the moment of receipt of payment, but from the moment of issuance of the invoice;
· The VAT is deductible for entrepreneurs, so it is possible to offset paid (input) VAT against the VAT to be paid (output);
· The VAT will be charged at different rates. The standard VAT rate has been set at 10% and will be applicable to most goods and services. There will also be a reduced rate of 0% and an increased rate of 25%. The reduced rate of 0% will apply to certain goods and services as listed in Annex 1 of the VAT Act. The rate of 25% will apply to luxury goods that are listed in Annex 3 of the VAT Act. A few supplies as listed in Annex 2 of the VAT Act are exempted from VAT which means that there will be no VAT charge on these;
· The Minister of Finance has repeatedly highlighted during the Parliament discussions that the VAT Act will be evaluated after a year.
If preferred, we will be able to provide you with more specific details and assess the impact on your business. However, do note that the signed final VAT Act has not been made available yet.
Nevertheless, HBN Law & Tax strongly believes that it is necessary to start preparing on time for such a significant change and would be happy to assist you with all your queries.
In case you wish to receive further information, kindly contact one of our Advisers.