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VAT For Non-Resident Businesses

VAT is a tax on consumption. It is collected on business transactions and imports. VAT is charged on any supply of goods or services made in Seychelles by a taxable person in the course or advancement of any business unless they are specifically exempted as per the First Schedule of the VAT Act 2010. Some businesses will be trading with non-residents. There are some implications with regards to non-residents who will be trading with VAT registered taxpayers in Seychelles.

What is a non-resident business?
A non-resident business is a business not incorporated in Seychelles. Certain non-resident businesses operate in Seychelles, usually by providing a service in Seychelles. Some non-resident businesses do not have a fixed place of doing business in Seychelles.

Should a non-resident business register for VAT in Seychelles?
There are 3 factors that need to be considered before a non-resident business can determine whether it needs to register for VAT in Seychelles:
  1. Who your customers are in Seychelles.
  2. The type of supply you make.
  3. The level of your annual sales turnover.
What are the conditions for a non-resident person to apply for Registration?
As per the VAT Act 2010 a non-resident person who is required to apply for registration (under section7) but who does not carry an enterprise through a fixed place in Seychelles must:
  1. Appoint a VAT representative in Seychelles
  2. If required to do so by the Revenue Commissioner, lodge a security with the Revenue Commissioner in accordance with Section 25 of the Revenue Administration act.
What are the roles of the VAT representative of the Non-resident person?
The roles of the VAT representative of the Non-resident person are:
  • The representative of the VAT non-registered person is responsible for doing all things required of the non-resident person under this Act, including applying for registration, the furnishing of VAT returns and payment of VAT.
  • Ensure the registration of a VAT representative must be in the name of the non-resident person they represent.
  • A person may be a VAT representative for more than one-resident person, in which case the person must have a separate registration for each such non-resident person.
The Revenue Commissioner may prescribe the mode, manner and requirements for appointment of a VAT representative and the responsibilities of the representative.
  1. Who your customers are in Seychelles

    If your customer is a non-VAT registered person—being either an individual person or a business that is not registered for VAT —
    • You will have to register your business in Seychelles in order for you to charge VAT on your service to your customer.
    • As a non-VAT registered person your customer will be able to remit VAT to SRC on your behalf.
    If your customer is a VAT-registered person, you are not necessarily required to register for VAT as your customer will be able to remit VAT on your behalf to SRC. Your customer will apply the Reverse Charge Mechanism when remitting the VAT you owe to SRC.

  2. The type of supply you make.

    As a non-resident business performing a service in Seychelles you will need to register your business if you are making taxable supplies in Seychelles.

    A supply is taxable in Seychelles when the supply is made available and/or is enjoyed and performed in Seychelles.

  3. The level of your annual sales turnover

    As a non-resident business performing a service in Seychelles you need to register for VAT in Seychelles if:
    • the annual sales turnover of your business exceeds or is equal to the VAT registration threshold set at SR 5 million. In this case you will be registered on a compulsory basis.
    • the annual sales turnover of your business does not exceed SR 5 million but you choose to register. In this case you will be registered on a voluntary basis.
For more information
You can contact Seychelles Revenue Commission on 4293737 or email us at advisory.center@src.gov.sc.
The Value Added Tax Act, 2010 is available here.


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