2. WHAT IS GST? 1. Is a Broad-Based, Multi-Stage Tax on Value Added Broad–based: charged on a wide range of goods and services Multi-stage: charged at every level of the economic chain Value added: is a tax on the mark up on goods and services supplied by one business to another or to the final consumer

3. WHAT IS GST (cont) A transaction tax on supplies Charged on each and every transaction involving the supply of goods or services, including business to business and business to consumer transactions 3.A consumption tax Passed on to consumers in price of each consumer transaction

4. MAIN FEATURES OF THE GST RATES - STANDARD RATE IS 10% - ZERO RATE (0%) THRESHOLD $75,000.00 PER ANNUM PRICES CHARGED TO BE GST INCLUSIVE THERE ARE A NUMBER OF ITEMS THAT ARE EXEMPT AND ZERO RATED

5. TAXABLE SUPPLIES THESE ARE THE GOODS AND SERVICES THAT ARE SUBJECT TO THE GST ITEMS THAT ARE ZERO-RATED ARE INCLUDED EXEMPT ITEMS ARE NOT INCLUDED LEGISLATION PROVIDES RULES ON TIME OF SUPPLY, CONSIDERATION FOR SUPPLY ETC. PERSON MAKING SUPPLY OR IMPORT IS TO ACCOUNT FOR TAX PAYABLE ON TAXABLE SUPPLY

6. ZERO-RATED SUPPLIES THESE ARE THE GOODS AND SERVICES THAT ARE SUBJECT TO THE GST, BUT AT THE RATE OF ZERO PER CENT REGISTERED PERSONS CAN CLAIM A CREDIT FOR TAX PAID/PAYABLE ON INPUTS EXAMPLES OF ZERO-RATED SUPPLIES ARE:- GOODS AND SERVICES FOR EXPORT BASIC FOODS:- RICE, SUGAR, MILK AND FLOUR

7. EXEMPT SUPPLIES THESE ARE THE GOODS AND SERVICES THAT ARE NOT DIRECTLY SUBJECT TO THE GST NO GST WILL BE CHARGED ON SALES MADE OF THESE SUPPLIES NO CLAIM OF CREDITS ON INPUTS IS ALLOWED EXAMPLES OF EXEMPT SUPPLIES ARE:- FINANCIAL SERVICES (EG. BANKING, INSURANCE) RESIDENTIAL RENTS WATER SUPPLIED – BELIZE WATER SERVICES EDUCATION

8. MECHANICS OF GST GST IS NOT A TAX ON BUSINESSES- registered businesses can claim back GST on their inputs. INPUT TAX – IS TAX PAID ON BUSINESS PURCHASES; input tax on capital purchases is deductible at the time of acquisition. OUTPUT TAX – IS CHARGED BY REGISTERED PERSONS ON SALES TO CONSUMERS

9. GST APPLIED TO PRICE OF A PRODUCT SOLD BY A REGISTERED TAXPAYER GST RATE = 10% CIF VALUE2000.00 IMPORT DUTY @ 20% OF CIF 400.00 2400.00 ENVIRONMENTAL TAX @ 2% OF CIF 40.00 PURCHASE PRICE2440.00 INPUT GST (10% OF PURCHASE PRICE)244.00 ADD MARK-UP OF 35% OF PURCHASE PRICE 854.00 SELLING PRICE3294.00 OUTPUT GST (10% OF 3294.00) 329.40 FINAL SELLING PRICE3623.40

10. REGISTRATION TAXPAYERS ARE REQUIRED TO BE REGISTERED TO CHARGE THE TAX THRESHOLD IS $75,000 ANNUAL TAXABLE SUPPLIES TAXPAYERS ARE TO APPLY FOR REGISTRATION CERTIFICATE WILL BE ISSUED AND IS TO BE PROMINENTLY DISPLAYED AT PLACE OF BUSINESS

11. ACCOUNTING AND RECORDS PROPER RECORDS IS A STRICT REQUIREMENT OF THE LEGISLATION RECORDS INCLUDE: SALES INVOICES/SERVICE BILLING INVOICES PURCHASE AND SALES BOOKS PURCHASE/IMPORT DOCUMENTATION PURCHASE INVOICES CREDIT OR DEBIT NOTES

12. Sample TAX INVOICE Sample TAX INVOICE FROM: ABC Furniture Company Invoice No :00123 ADDRESS : #2 Mayflower Street TIN No :735211 Date : July 12, 2006 TO: XYZ Company TIN No :772233 ADDRESS : #3 Eve Street QUANTITY DESCRIPTION AMT. EXCLUDING GST 30 Chairs @ $15.00 ea. $450.00 30 Chairs @ $15.00 ea. $450.00 GST 10% $45.00 GST 10% $45.00 Total:- $495.00

13. ANGEL CARPENTRY INDUSTRY-GST ACCOUNT, APRIL 2006 PurchasesSales DescriptionCost GST Rate GSTDescriptionCost GST 50 chairs @ $10 ea. $50010%$50 30 chairs $20ea. $60010%$60 Total Purchases $500 Total Sales $600 Input Tax $50 Output Tax $60 Pays to Government: $10 ($60-$50) If Input Tax is greater than Output Tax a refund is due

14. RETURNS, PAYMENTS & ASSESSMENTS REGISTERED PERSONS WILL BE REQUIRED TO FILE MONTHLY GST RETURNS DEADLINE 15TH OF MONTH FOLLOWING END OF TAX PERIOD – WHETHER OR NOT TAX IS PAYABLE RETURNS TO BE FILED WITH GST DEPARTMENT PAYMENT OF TAX DUE SHOULD ACCOMPANY RETURN TAX DUE IS THE DIFFERENCE BETWEEN OUTPUT TAX AND INPUT TAX

15. CREDIT/REFUNDS WILL OCCUR IF INPUT TAX PAID EXCEEDS OUTPUT TAX COLLECTED CREDIT WILL BE CARRIED FORWARD AS INPUT TAX FOR NEXT TAX PERIODS IF CREDIT EXISTS FOR MORE THAN 3 TAX PERIODS, CLAIM MAY BE FILED FOR REFUND OF REMAINING AMOUNT INTEREST WILL BE PAYABLE ON REFUNDS UNPAID 3 MONTHS AFTER CLAIM IS FILED

16. PENALTIES THE LAW MAKES PROVISION FOR PENALTIES. SOME OF THESE ARE:- FAILURE TO REGISTER ISSUANCE OF FALSE INVOICES FAILURE TO PAY FAILURE TO FILE FAILURE TO KEEP PROPER RECORDS NON-COMPLIANCE WITH PRICE QUOTATION REQUIREMENTS

17. OBJECTIONS AND APPEALS PROVISION IS MADE IN THE LAW FOR PERSONS TO MAKE OBJECTIONS OBJECTIONS MUST BE IN WRITING AND STATE PRECISE GROUNDS IF NOT SATISIFIED WITH COMMISSIONER’S DECISION, PERSONS CAN APPEAL TO THE APPEALS BOARD IF NOT SATISIFIED WITH DECISION OF THE APPEAL BOARD, PERSONS CAN TAKE THE MATTER TO THE SUPREME COURT THE BURDEN OF PROOF LIES WITH THE PERSON OBJECTING OR APPEALING

18. KEY POINTS CONSUMER SPENDINGG.S.T. IS A TAX ON CONSUMER SPENDING; IMPORT PURCHASE FROM A REGISTERED TAXPAYER; INPUT TAX IS PAID AT THE POINT OF IMPORT (THROUGH CUSTOMS) AND PURCHASE FROM A REGISTERED TAXPAYER; REGISTERED TAXPAYERINPUT TAX CAN ONLY BE CLAIMED BY A REGISTERED TAXPAYER IS NOT TO BE ADDEDTHE INPUT GST PAID BY A REGISTERED TAXPAYER IS NOT TO BE ADDED TO THE PRICE OF THE ITEM; FLOUR, MILK, RICE & SUGAR ARE ZERO-RATED;

19. ANY INPUT TAX THAT CANNOT BE CLAIMED BACK WILL BE PASSED ON TO CONSUMERS WATER (EXCEPT BOTTLED WATER) OR DOMESTIC SEWERAGE SERVICES, FINANCIAL SERVICES ARE EXEMPT

20. GST Unit email: GST.unit@stx.gov.bzGST.unit@stx.gov.bz Our Phone number is: 222-5553, Fax # 222-5513 To access a copy of the GST Act: www.gst.gov.bz