550 businesses will be registered on VAT Day, November 1, 2010
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ST. KITTS, NOVEMBER 1, 2010 (CUOPM) – VAT DAY, November 1, 2010 will find some 550 businesses, up 150 from last Thursday, registered under the Value Added Tax (VAT).
This has been disclosed by the Tax Reform Unit (VAT Office) of the Inland Revenue Department, which said that all those businesses and individuals are register as they generate gross annual income of EC$150,000.
The names of the businesses registered are listed on www.sknvat.com and includes Audain & Associates, B’s Enterprises, Best Buy, Browne Sugar, B.E.C. Auto Parts, City Drug Store, Builders Paradise, CONTEC, Daniel Brantley & Associates, Dollar Stretcher, Western Apartments, Lindsay F. Grant, Ralph L. Gumbs Electrical Installations, J’s Shop & Save, Kings Pavilion Supermarket, Bryant and Liburd, Kentucky Fried Chicken (KFC), RAMS, S.L. Horsfords, several TDC companies, ZIZ Broadcasting Company, Powell’s Metal Craft Limited, Nelson Spring Water, Golden Rock Hotel, Nevis Bakery, Cost U Less and Money World.
According to the Tax Reform Unit, most of these businesses have been issued with Certificates, which must be prominently displayed.
Value Added Tax (VAT) of 17 percent replaces 12 other taxes included the Consumption Tax of 22.5 percent which was reduced to 17 percent since September.
A business’ annual gross TAXABLE income determines the business’ eligibility to register for VAT. Only a VAT registered business is authorized to charge and collect VAT.
Businesses collect VAT on behalf of the State and must be paid into the Inland Revenue Department on time.
Zero-rated items include Adult disposable diapers, Baby disposable diapers, Bread, Flour, Fuel, Infant Formula, Milk, Oats, Rice, Sale of commercial property from one VAT registrant to another and Sugar.
Regarded as exempt imports are goods if the Comptroller is satisfied that VAT has previously been paid on the sale or importation of such goods; Challenge Cups and other trophies presented to participants in an event outside of the Federation; Currency notes and coins imported under the Eastern Caribbean Central Bank Agreement; Goods temporarily admitted in the Federation for repair, cleaning or reconditioning, including parts associated with that work; the human remains of a person who has died abroad; unconditional gift of goods without consideration to an approved religious organization and not for sale and unsolicited gifts of food of 45 kilograms.
Exempt supplies include supply of basic construction services on a residential home, a supply of medicines for chronic diseases approved by the Chief Medical Officer, a supply of printed matter, articles and which items include books, newspapers and pamphlets; a supply of the following agricultural inputs: (seedlings, seeds, cuttings, fertilizers, herbicides, fungicides, nematicides approved by the Minister of Agriculture; animal feed other than food for domesticated animals generally held as pets; plant propagation bags; poultry, eggs produced locally by the producer; fibre-glass and wooden boats, anchors, G.P.S, compass, V.H.F. Radio. Bus & Taxi Fees, Education services, Electricity, Insurance, Interest on loans, locally produced agricultural produce grown in the Federation, Medical services, Residential Rent and Residential Water.