Vat on domestic consumption


07-October-2011

 

 

Since Vat is based on a destination principle, only domestic consumption will be Vat-chargeable. Goods and services to be consumed internationally (exports) will be liable to Vat at 0%. Vat on domestic transactions is charged on invoices at 15% by any taxable person.

This Vat is then remitted to the Seychelles Revenue Commission.

Vat and the place of supply

A taxable person will levy Vat only on goods and services being consumed in Seychelles.
 
• Generally, a good is supplied domestically if the good is delivered or is made available in Seychelles.

• For services different rules may apply, depending on who is the supplier, who is the customer, and what service is supplied.

The supply of services to a taxable person is in principle taxed at the customer's place of establishment. The supply of service to a private individual is taxed at the supplier's place of establishment. There are however a lot of exceptions:

• Services directly related to an immoveable property located in Seychelles.

• Radio or television broadcasting services received at an address in Seychelles

• Electronic services delivered to a person in Seychelles

• A transfer or assignment of, or a grant of right to use, a copyright, patent, trademark or similar right in Seychelles

• Telecommunication service initiated by a person who is physically present in Seychelles at the time of the supply.

• Services physically performed in Seychelles by a person in Seychelles at the time of supply.

• Services provided by an intermediary which carries out its main transaction in
Seychelles.

• Cultural, artistic, sporting, scientific, educational, entertainment and similar events take place in Seychelles.

• Restaurant and catering services, when physically carried out in Seychelles.

• Short-term hiring of means of transport when the means of transport are actually put at the disposal of the customer in Seychelles.

Vat and the time of supply

When applying Vat on domestic consumption, the time of supply is very important.
 
For goods, the time of supply takes place when the goods are physically transferred or made available for the customer to use.

For services, the time of supply generally takes place when the service is performed. It is normally taken as the date when all the work, except invoicing, is completed.

However, the time of supply can be the date when an invoice is issued or a (full or partial) payment is received, provided invoice or payment happen before the service is completed.


For more information

You can contact Seychelles Revenue Commission on 4293737 or email us at This email address is being protected from spambots. You need JavaScript enabled to view it. . The Value Added Tax Act, 2010 is available on the Seychelles Revenue Commission website (www.src.gov.sc).

Submitted by the Seychelles Revenue Commission

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