Vat-exempted goods and supplies |07 May 2012

Vat is Broad Based Tax which is charged at the point of entry on the importation of goods; and sale of all types of goods and services made in the course of doing business, except for those that are specifically exempted under the first schedule of the Vat Act 2010.

What are exempted goods under the Vat Act 2010?
Vat will generally be applied on all goods and services sold in the Seychelles, however there are a number of goods and services that will be exempted of Vat when it will be put into operation come July 1, 2012.
Exempted goods are excluded from payment of Value Added Tax (Vat) and hence a business cannot get a credit or claim a refund on those goods or supplies.

Which goods are exempted from Vat?

Below shows the list of goods that will be exempted from Vat
 Fruits such as Apple, orange , grapes, mango, pears, peach, prune, guava, pineapple,  Apricot ,Banana
 Berry, Blackberry, Blueberry, Cherry
Cranberry, Currant , Grapefruit
Gooseberry, Lemon, Mandarine, Melon, Plum, Raspberry, Strawberry
Sweet cherry, Watermelon, Wild strawberry (fresh,  chilled or dried) 
Salt  Reagents (Diagnostic or laboratory reagent)
 Sugar  Pampers
Vegetables such as Cucumber , Capsicum, Potato, Onion, Cabbage, Chinese cabbage, Chili , Bean, Beetroot, Broccoli, Cabbage, Carrot
Cauliflower, Celery, Chicory, Cress, Eggplant, Garlic, Lettuce, Paprika  Parsnip , Parsley, Pea,  Pumpkin
 Radish, Spinach, Tomato, Turnip Lentils  
Paper Napkins
 Flour  Sanitary Towels
 Rice  Toilet Paper
 Edible oil(soya-bean, Olive, Sunflower, Ground-nut, safflower or cotton seed oil )  Pharmaceutical Products
 Margarine( not the liquid ones)  Energy Saving Light bulbs
 Milk (cream in powder, solid forms, granules)  Fuel
Pork (spare ribs, chops & filets)  Prepared animal fodder Chicken (wings, drumstick, thighs& breast)
Fish (fresh, frozen, chilled or smoked) Infant formulae (baby milk formulae and food)  Beef (fresh, frozen or chilled)

All of the above listed basic goods will not be charged Vat when imported or sold by importers, wholesalers or retailers. In principle, there should be no significant increase in the price of these goods when Vat takes effect.  

Which supplies will be exempted of Vat?
There is a list of exempt supplies that will not charge Vat when it is implemented on July 1, 2012. These are:
Donated goods and services   The supply has to be from an international organisation and made to a non-profit organisation only
Education services Includes textbooks and stationeries. Education services have to be approved by the Ministry of Education
Financial services By any bank or any Bureau de Change. All branches and agencies of a financial institution
Goods consumed abroad As well as goods that are situated outside of Seychelles at the time of supply
Goods for re-sale or further processing This is for goods that have been exempted at the point of import
Government hospital, medical and dental services Includes government ancillary services
Life/Health insurance or a re-insurance contract by a person carrying on the business of a licensed insurer or re-insurer
Service Only those provided by a non-resident
Petroleum products Only supplies made by Seychelles Petroleum Company
Exempt Imports Any good exempted on importation is also exempted on its supply on the domestic market
Animal feed Supplied on the domestic market
Public Utility Services As supplied by the Public Utility Corporation

Similarly, there should be no increase in the price of the above services when Vat is put into operation.
For a modest household most of the basic food items will be exempted of Vat. It is important to note that mostly all of the small retail shops including the Victoria Market where you purchase most of the goods will not charge Vat.

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).

Submitted by the Seychelles Revenue Commission