|
|
|
|
Increase in GST Rate on Scheduled Tourism Service Providers
|
Good and Services Tax (GST) was introduced in July 2003. The tax on scheduled
tourism services calculated at the rate specified in Schedule 2, Part 2 of the GST
Regulations, was initially at 7%, except for airline and helicopter transport
services which was at 15%. In 2007, the GST rate for helicopter transport services
was changed from 15% to 7%. But since November 2008, tourism service providers have
been liable to a GST rate of 10%.
|
Will there be a change in the GST rate for tourism service providers this year?
|
The Minister of Finance announced in his 2009 budget that the rate of GST for tourism
service providers will increase from 10% to 12% in 2010.
|
What is the specific effective date for the new GST rate?
|
The new GST rate of 12% becomes effective 1 November 2010. However, it is important to
note that services provided to clients prior to 1 November 2010, where actual payment
for the service was received on or before 1 November 2010, the GST liability will be
limited to the existing rate of 10%. It is important that proper records are kept of
all services provided prior to 1 November 2010 and paid at the old rate of 10%.
|
Who are the tourism service providers to be affected?
|
The following tourism service providers as per schedule 2, part 2 of the GST
Regulation 2003 will be liable to the new GST rate of 12%:
-
Hotel, Guesthouse or Self-Catering Establishment
-
Café or Restaurant
-
Airline Transport Services
-
Fixed Rotary Wing Air Transport Services
-
Domestic Ferry Services
-
Boat or Yacht Charter Services (including a liveaboard)
-
Car Hire Operator
-
Underwater Dive Operator or Dive Centre
-
Water Sports Operator
-
Travel Agent (Own Services)
-
Tour Operator (Own Services)
-
Tour Guide and or Tourist Guide
-
Equestrian Operator
|
How to calculate the GST with the new rate of 12%?
|
GST on services is calculated on the receipted amount of the services as follows:
Receipted Amount - ( Receipted Amount/1.12 )
For example if the sale/income for a given month is SR10, 000, the GST due is as follows:
SR10,000 – ( SR10,000/1.12 ) = SR1, 071.43
This amount has to be remitted to the Seychelles Revenue Commission, using the
Business Activity Statement, on or before the 21st of each month.
|
Where do I go for more information?
|
Should you require further information or clarification on the applicability of the
new GST rate, please contact SRC Advisory Centre in Room 2 at Oceangate House or
telephone 293741/293742/293743.
|
|
|
|