Trinidad and Tobago 2012 - invesTT

A GUIDE TO INVESTING IN TRINIDAD AND TOBAGO (2012)
Section 11
supplies of goods and services. The value of goods imported into
Trinidad and Tobago is the total of:
• the value of the goods determined according to the Customs
Act (c.i.f.), together with any duties, taxes (other than VAT)
and other charges that are charged, paid or payable upon
entry of imported goods. There are special provisions for
re-imports
VAT administration is the responsibility of the Board of Inland
Revenue, VAT Administration Centre. Collection of VAT on imports
is the responsibility of the Customs and Excise Division of the
Ministry of Finance.
Under the Value Added Tax Act, 1989, most businesses are required
to:
• Register with the VAT Administration Centre of the Board of
Inland Revenue
• Collect Tax at 15% on nearly all the goods and prescribed
services they supply, unless zero-rated or exempt
• File a VAT return and remit the net VAT collected to the VAT
Administration Centre, usually every two (2) months on or
before the 25th day of the month following the collection/
return period
Who Registers?
Any sole proprietor, company, partnership, joint venture and other
unincorporated body who conducts a business activity and, who
makes commercial supplies within Trinidad and Tobago with a
gross value in excess of TT$200,000 in any 12-month period, is
required to apply for VAT registration. VAT returns are due every two
(2) months (6 times per annum) and must be submitted within eight
123
(8) days of the due date. The difference between output tax and
input tax is payable or refundable.
Under certain circumstances a supplier who is not resident in
Trinidad and Tobago has the option to decide whether the supply
of goods and services is made in Trinidad and Tobago. If the supply
is made within Trinidad and Tobago the supplier could apply to
register for VAT. This would be advantageous since it would allow
the non-resident to claim the applicable input VAT paid on goods
and services received in Trinidad and Tobago. It is important also for
the resident that receives the goods or services, since the resident
will be allowed to claim for the input VAT paid to the non-resident.
How to Register for VAT
The application forms (VAT 1 and VAT 2) supplied by the VAT
Administration Centre have to be completed. VAT 1 requests the
Board of Inland Revenue (BIR) number as well as information related
to the commercial supplies of the business. VAT 2 requests names,
addresses and signatures of the directors, partners or members.
Accompanying documents are as follows:
• Original Certificate of Incorporation or original Certificate of
Registration
• Related Documents e.g. List of Directors
The VAT Administration Centre also requests a cash flow projection
for a period of twelve (12) months which must be signed by a
director, and requires proof (invoices and contracts etc.) to ascertain
the date of commencement of the business and that business has
actually commenced.
Once issued, the Certificate of Registration must be publically
displayed at the place of business. The certificate bears a
How to Register for VAT continues on page 125