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Value Added Tax (Amendment) Act 2001

Commencement: 31^st December 2001

REPUBLIC OF VANUATU

VALUE ADDED TAX
AMENDMENT ACT NO. 28 OF 2001

Arrangement of Sections

1. Amendments
2. Commencement
   

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REPUBLIC OF VANUATU

Assent 30^th December 2001
Commencement 31^st December 2001

VALUE ADDED TAX
AMENDMENT ACT NO. 28 OF 2001

An act to amend the Value Added Tax Act No. 12 of 1998

Be it enacted by the President and Parliament as follows-

1. Amendments
   

The Value Added Tax Act No. 12 of 1998 is amended as set out in the Schedule.

2. Commencement
   

This Act commences on the date on which it is published in the Gazette.

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SCHEDULE

AMENDMENTS OF THE
VALUE ADDED TAX ACT NO. 12 OF 1998

1. Section 2 (definition of Resident of Vanuatu)
   

Delete “but does not include a company registered under the International Companies Act 1992”.

2. At the end of section 2
   

Add

“(2) For the purposes of this Act, all amounts of money are to be expressed in terms of Vanuatu currency, and if any such amount is consideration in money for a supply, that amount is to be expressed in terms of Vanuatu currency as at the time of that supply.”.

3. After subsection 3(3)
   

Insert

“(3A) Subsection (3) does not apply in respect of any goods admitted as a temporary import under clause X.43 of Schedule 2, or clause X.65 of Schedule 2, of the Import Duties Consolidation Act [CAP 91] for use in an approved aid project if the Director is satisfied that those goods have been exported from Vanuatu by the registered person.”.

4. Subsection 3(10)
   

After “person” (second occurring), insert “, or an associated person of that person,”.

5. Subsection 3(11)
   

After “person” (second occurring), insert “, or an associated person of an employee of that registered person,”.

6. Paragraph 41(3)(b)
   

Repeal the paragraph, substitute

“(b) in respect of any obligation imposed under any other Act, failed to pay to the State any amount in whole or in part;”.

7. Clause 8 of the First Schedule
   

Delete “31 December 2001”, substitute “31 December 2002”.

8. Second Schedule
   

Add at the end

“(x) X.34 relating to certain church supplies;”.

9. Clause 8 of the Third Schedule
   

Repeal the clause, substitute

“(8) For the purposes of this Schedule the term “approved aid project” means an aid project for which the project Memorandum of Understanding, or other like document, approved by the Council of Ministers and lodged with the Minister contains specific provision for zero-rating under clause 7 of this Schedule.”.

10. At the end of the Third Schedule
    

Add

“(11) Any supply of services provided to overseas postal organisations for the delivery in Vanuatu of postal articles mailed outside Vanuatu.

(12) Any supply of services provided in relation to a vessel visiting Vanuatu if:

(a) the services are supplied to a person who is not resident in Vanuatu at the time the services are performed; and
(b) the vessel has been granted temporary import status under clause X.40 of Schedule 2 of the Import Duties (Consolidation) Act [CAP 91]; and
(c) the services are supplied within 3 months after the vessel arrived in Vanuatu or such longer period as the Director may consider appropriate.”.

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REPUBLIC OF VANUATU

BILL FOR THE
VALUE ADDED TAX
AMENDMENT ACT NO. 28 OF 2001

Explanatory Note

This Bill makes several amendments to the Value Added Tax Act. Each amendment is dealt with in detail below.

Item 1 of the Schedule

The amendment removes the exclusion of international companies from the definition of resident.

Item 2 of the Schedule

The amendment requires all references to money to be expressed in terms of Vanuatu currency.

Item 3 of the Schedule

The amendment removes the VAT liability on assets imported temporarily for an aid project that are retained by the contractor after their VAT registration is cancelled.

Item 4 of the Schedule

The amendment extends the deeming provision contained in subsection 3(10) of the Principal Act to include persons who are associated to the registered person.

Item 5 of the Schedule

The amendment extends the deeming provision contained in subsection 3(11) of the Principal Act to include persons who are associated to employees of the registered person.

Item 6 of the Schedule

The amendment extends the Director’s powers in respect of offsetting VAT refunds against other taxes owed by a registered person.

Item 7 of the Schedule

The amendment extends the current exemption for appropriations made to instruments or agencies of the State.

Item 8 of the Schedule

The amendment adds Schedule X.34 (Church Supplies) of the Import Duties (Consolidation) Act to the list of exempt importations contained in the Second Schedule.

Item 9 of the Schedule

The amendment inserts a new definition of the term “approved aid project”.

Item 10 of the Schedule
The amendment (new clause 11) relates to the zero-rating of fees charged to overseas postal authorities for the delivery of overseas mail within Vanuatu.

The amendment (new clause 12) provides for the zero-rating of services supplied to visiting vessels that have been granted temporary import status under Schedule X.40 of the Import Duties (Consolidation) Act.

Minister of Finance and Economic Management