VAT on importation |21 October 2011

Any imported good is liable to Vat at the point of entry, unless exempted under the First Schedule of the Vat Act 2010. Under specific circumstances, imported goods may be zero-rated when entered in Seychelles for export.

Vat and the time of import
An importation of goods occurs on the date the goods are entered for home consumption under the Customs Legislations or on the date the goods are brought into Seychelles.

Vat and the value of import
The Vat on importation is assessed by Customs Division on each taxable import and is payable together with Trade Tax, at the point of entry unless otherwise provided by the Customs legislation, for example when Goods are entered into Licensed Bonded Warehouse, both Trade Tax and Vat becomes payable only when they are removed from the Bonded warehouse for home consumption. 

Vat on imported goods is applied on:

(1) the value of import which is the total of the CIF Value (Cost, Insurance and Freight); plus
(2) any trade tax or excise tax applicable depending on the type of goods.

Note that levies are not included in the Vat calculation.

Levies are not included in the VAT calculation (*)
Take the example of a motor vehicle (1000cc) with Total CIF value ………………SR 200,000
Trade tax (TT) not exceeding 1000cc @ 25%..............SR50,000
Excise Tax (ET) @ 25%................SR 50,000
Total ………………….……………………..SR100,000
Levy not exceeding 1000cc @ SR30,000 (*).................SR 30,000
The total amount of taxes collected by Customs before Vat is …………………SR 130,000                                                             
Vat will apply on (CIF value 200,000 + TT 50,000 + ET 50,000 but not on Levy 30,000) =SR 300,000
Vat @ 15% = 300,000 x 15% =…….. SR45,000
Total taxes collected by Customs (TT 50,000+ ET 50,000 + Vat 45,000 +Levy 30,000) =   SR175,000

Vat and the value of re-imported goods
A specific regime applies on goods that have been re-imported after being exported for repair, renovation, or improvement, provided these goods:

(1)  have not undergone any physical changes in form or character and
(2)  have not changed ownership during this process.
 
Under these circumstances, Vat will solely apply on the cost of the repairs (the amount charged for the repairs and/ or renovations including the cost of materials or parts used). The importer will have to declare upon the Bill of Entry the nature and cost of the repair, renovation or improvement.

For more information you can contact Seychelles Revenue Commission on 4293737 or email us at advisory.center@src.gov.sc.
The Value Added Tax Act, 2010 is available on the Seychelles Revenue Commission website (www.src.gov.sc).