- Published: Tuesday, 22 July 2014 08:32
The VAT Office advice is that supplies of goods or services in Vanuatu are subject to VAT only when they are made by a registered person in the course of carrying on a taxable activity.
The registration for VAT is determined by whether the person is conducting a taxable activity.
This as mentioned in our previous communications makes the meaning of “taxable activity” crucial for both registration purposes and in establishing whether a person must account for VAT on specific supplies made by them.
A taxable activity for VAT includes:
- any activity that is carried on continuously or regularly and
- involves the supply of goods and services to another person, and
- consideration (payment) is received for that supply, and
- the supply does not necessarily have to be for profit and It includes (but is not limited to) any such activity carried on:
- in the form of a business, trade, manufacture, profession, association, club, or
- by any government agency
When applying for VAT registration you must make sure that all criteria’s that define taxable activity are met. This article is rewritten as we continue to experience registration applications are lodged that does not satisfy the criteria “consideration (payment) is received for that supply”.