September 23, 2022
This document has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, legal, or other professional advice.
A. Taxable Transactions
Under the name of Value Added Tax or VAT, a tax shall be levied, subject to the provisions of the VAT Act, in respect of:
• the supply of goods in Suriname for a consideration by an entrepreneur acting as such;
• the performance of services in Suriname for a consideration by an entrepreneur acting as such; and
• the import of goods into Suriname.
B. Suriname’s VAT Jurisdiction
For the purposes of the VAT Act, with Suriname is meant the territory on the South American continent that has been historically determined as such and referred to in Article 2(1) of the Constitution of the Republic of Suriname, including the territorial waters, exclusive economic zone and the part of the seabed and its subsoil located outside the territorial sea under the Atlantic Ocean, insofar as Suriname may exercise sovereign rights there based on international law, in connection with the Maritime Zones Act, for the purpose of exploration and exploitation of natural resources and other economic activities, as well as the installations and other facilities present in, on or above that area for the purpose of the exploration and exploitation of natural resources of that area.
C. Rates
• The standard rate is 10 percent.
• The rate is 0 percent in case of the supply of goods and services listed in Annex 1 of the Act.
• The rate is 25 percent on the goods listed in Annex 3 of the Act.
• The supply of goods and services listed in Annex 2 of the Act is exempted from VAT.
D. Taxpayer
• The tax is levied on the entrepreneur who performs the supply of the goods and/or services.
• In specific situations the Reverse-Charge rule applies.
E. Making declaration and payment
• The tax that is due in a period of return must be paid on the VAT return.
• The entrepreneur must declare the tax that he owes in a period of VAT return entirely, clearly, and without reservation before the sixteenth day of the month following that period.
• The declaration is submitted to the VAT Inspector. VAT due pursuant to the tax return is paid to the VAT Collector before or at the latest simultaneously with the filing of the VAT return.
F. VAT refund
• The tax due in respect of supplies of goods and services is deducted from the tax in respect of supplies
of goods and services made to the entrepreneur and in respect of the importation of goods intended for him, if and insofar as the goods and services purchased by the entrepreneur are used for the performance of taxable acts.
• If the VAT eligible for deduction exceeds the VAT due in the period, the difference will be refunded to the taxpayer.
• If the amount eligible for a refund is less than SRD 1,000 (one thousand Surinamese dollars), the VAT Inspector may decide that it must be settled in a period designated by him.
G. Levy on import of goods
• Import is the insertion of goods into free circulation in Suriname.
• The VAT on import is based on the customs value plus the import duty, excise duty, and other charges due on importation, with the exemption of the VAT due on such importation.
H. Administrative obligations
• The entrepreneur is obliged to keep an administration regarding the supply of goods and services made by him and to him, of the import of goods into and the export of goods from Suriname, as well as other information relevant to the levying of the VAT;
• invoices and other documents issued to him and by him, such as receipts;
• expenditure and revenue in respect of supplies of goods and services made to him and by him.
I. Billing Requirements
The following information is required on the invoice:
a. The date of issue;
b. A sequential number, with one or more series, which clearly identifies the invoice;
c. The tax identification number under which the entrepreneur made the supply or service;
d. The tax identification number of the customer to whom the supply or service is made and from whom the tax is levied;
e. The name and address of the entrepreneur and his customer;
f. The quantity and nature of the goods supplied or the volume and nature of the services provided;
g. The date on which the delivery or service took place or was completed;
h. The fee relating to each rate or exemption, the unit price exclusive of tax;
i. The rate applied;
j. The amount of tax due;
k. In the case of an exemption, indication thereof;
l. For the supply and import of motor vehicles, the make, model, engine capacity, and chassis number, and for work on the motor vehicle, the number plate;
m. Where the purchasing entrepreneur is liable for payment of VAT, the words ‘REVERSE CHARGE’ must be mentioned.
Annexes to the VAT Act
Annex 1.
Zero rate
Subjected to zero rate are:
a. The rental for at least 3 months of immovable property, which is furnished, intended, and used by the tenant for permanent residence;
b. Health insurance;
c. Funeral services;
d. The care of children in childcare;
e. The care of the elderly, the needy, and retirement homes;
f. Patient and injured transport;
g. The following supplies and services;
the actions, including mediation, concerning foreign exchange, banknotes, and coins, which in any country have the capacity of legal tender possession, except for banknotes and coins, which is not normally used as legal tender or have collectible value.
h. The domestic supply of goods and services to:
1. Contractors and sub-contractors pursuant to the Petroleum Law 1990;
2. State-owned enterprises pursuant to the Petroleum Law 1990;
3. Gold mining companies pursuant to the status of law.
i. The supply of imported motor gasoline and other equivalent products motor fuels and diesel oil.
Annex 2.
Exemptions
Exempt from tax are:
a. The supply of immovable property and of rights to which they are subjected;
b. Granting access to public entertainment under the Entertainment tax law;
c. The granting of opportunity to participate in hazard games in accordance with the Casino tax law 2002;
d. The granting of the opportunity to participate in the lottery in accordance with Article 1 of the Lottery Act 1939;
e. The supply of water, electricity, and cooking gas;
f. Public passenger transport services by road, water and air, and school bus services;
g. The services provided by hospitals, medical research laboratories, doctors, dentists, dental technicians, nurses and midwives, physiotherapists and exercise therapists, chiropractors, speech therapists, dietitians, psychologists, phototherapeutic, Oral Health therapists (Youth Dental Care), alternative healers and other paramedics as be carried out in such a way;
h. The supply of medical art and devices, which is understood to mean: orthopedic articles and appliances, including medical and surgical equipment belts and straps and crutch dentures, artificial teeth, artificial eyes, artificial limbs, and equivalent products, hearing aids for the hard of hearing, splints and other articles and devices for the treatment of fracture in the bone structure;
i. The supply of medicines;
j. The supply of goods and the provision of services by organizations of social, cultural, charitable, sporting, or religious nature, provided that the organization has no pursuit of profit and there is no serious disruption of competitive relations;
k. The provision of education under the supervision of the Ministry of Education, Science and Culture including learning resources, school supplies, and school uniforms; the supply of certain provisions laid down by State decree basic goods or goods of a similar nature.
Annex 3.
Luxury goods:
a. Automobiles and other motor vehicles designed primarily for passenger transport with a cylinder capacity of more than 3000 cm3 and with a CIF value of US$ 50.000 or more;
b. Motorcycles;
c. Speedboats, personal watercraft, yachts, sports, and other recreational craft;
d. Helicopters and aircraft for transporting less than 10 persons;
e. Weapons, ammunition, parts, and accessories thereof; and
f. Fireworks
Contact
In case you wish to receive further information kindly contact one of our advisers.
Siegfried Kenswil
siegfried.kenswil@hbnlawtax.com
Nazna Ishaak
nazna.ishaak@hbnlawtax.com
Cheryl Leeflang
cheryl.leeflang@hbnlawtax.com
The information contained in this publication is of a general nature and does not relate to the specific circumstances of a particular individual or a particular entity. Although the greatest possible care has been taken in the preparation of this publication, we cannot guarantee that the information contained therein on the date of receipt is correct and complete or that it will remain so in the future. Based on this information, no action should be taken without adequate professional advice after thoroughly investigating the specific applicable situation.