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Trades Tax and VAT Calculation
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Trade Tax
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Value Added Tax (VAT)
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CIF * trade tax rate
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CIF + Trade Tax + Excise if applicable = VAT Base
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VAT Base * 15% VAT
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Assume the following.
XYZ imports 2 cases of cotton handkerchiefs from Singapore.
| Purchase Price |
US$ 120 FOB (Free on Board) |
| Freight |
US$ 20 |
| Insurance |
US$ 5 |
| Total |
US$ 145 CIF (Cost, Insurance, Freight) |
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| Exchange Rate 1/17 (Rate obtained from Ministry Of Finance) |
SR 2465.00 |
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| HS Code cotton handkerchiefs |
6213.2000 |
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| Trades Tax Rate |
25% |
| VAT Rate |
15% |
Calculations
Trades Tax Payable
SR 2,465.00 * 25%
= SR 616.25
Value for VAT
= CIF + Trades Tax (excise not applicable)
= SR 2465 + SR 616.25
= SR 3,081.25
VAT Payable
= SR 3,081.25 * 15%
= SR 462.19
Total
= Trades Tax + VAT
= SR 616.25 + SR 462.19
= SR 1,078.44
Cheques must be made out to: The Seychelles Revenue Commission.
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