Inland Revenue Division

Trinidad House
St. Vincent Street
Port of Spain
VISIT US AT www.ird.gov.tt

GUIDE TO
VALUE
ADDED
TAX

TEXT PREPARED BY INLAND REVENUE DIVISION

PRINTED BY THE GOVERNMENT PRINTER
PORT OF SPAIN, REPUBLIC OF TRINIDAD AND TOBAGO
JANUARY 2008

YOUR TAX DOLLAR$

BUILDS
TRINIDAD AND TOBAGO

ii

MISSION STATEMENT
To foster and promote voluntary compliance with the Tax Laws and
Regulations by:
9

Providing quality customer service and education.

Improving our employees knowledge, skills and attitudes.

Applying the Tax Laws effectively and efficiently with

fairness and integrity within an atmosphere of mutual
respect.

Visit our website at

www.ird.gov.tt

This explanatory booklet

is not a
substitute for the law.
Please note the law prevails,
if there is any
inadvertent conflict.

iv

iii

Page

TABLE OF CONTENTS
Export of Goods

VALUE ADDED TAX BOOKLET

Introduction
Definitions

Person

Business Activity
Commercial Supplies
Financial Instrument
Financial Services

Registration for VAT Purposes

-

Who is required to Register

The Sole Proprietor
The Partnership
Limited Liability Company

Guidelines for keeping Records and Accounts

(a)
How to keep
(b)
What to keep
(c)
Where to keep
(d)
How long to keep
-

Page

14

Zero Rated Supplies

Items 1-34 (add salted fish / Toiletries)

16

Exempt Services

25

26

Persons Organizing Carnival Activities

27

The Dos and Donts of VAT

28

Returns and Tax Periods

How often will VAT returns have to be submitted

30

Instructions for completion of VAT Return

Example of a CORRECT Return

31

Delays in processing VAT Returns

VAT Refunds

39

Penalties for Non-Compliance

41

Further Assistance

42

Tax Invoices
Example of a tax Invoice: (1) detailed
(2) Simplified
Credit or Debit Notes
Records of Sales
Records of Purchase/Expenses
Imports
Exports
Goods given away or taken for your own use
The VAT Account
Example of VAT Account

The Value of Supply

The Time of Supply

-1-

-2-

INTRODUCTION

(c) COMMERCIAL SUPPLIES

A Commercial supply is the supply of goods or prescribed services that is made in
the furtherance of or in the normal course of any business.

The Value Added Tax was introduced on January 01st , 1990, and is administered
by the Value Added Tax Administration Centre of the Inland Revenue Division.
The Customs and Excise Division is responsible for collecting the Value Added
Tax (VAT) on imports.
The Value Added Tax Act, #37/89 requires most businesses and many
organizations in Trinidad and Tobago to:
- Register with the VAT Administration Centre.
- Collect tax at fifteen per cent (15%) on supply of goods and prescribed
services.
- Remit the Net VAT collected to the Cashiers Unit,
Inland Revenue Division.
- File a VAT return.

DEFINITIONS
(a) PERSON
For the purposes of VAT, person means an individual, a company, an
unincorporated club or society, a joint venture, a trustee in a trust or estate, a
public or local authority, a partnership.
(b) BUSINESS ACTIVITY
A business activity includes any activity conducted as a business, trade,
association or club. The term also includes the activities of public and local
authorities.
For VAT purposes it is unimportant whether or not the activity realizes a profit,
but the activity must be one that is carried on continuously, regularly or
periodically and must involve the commercial supply of goods/services to another
person for consideration.
A number of activities are not business activities for VAT purposes.
Among these are
Employment as a salary or wage earner or engagement as a
company director or office holder.
-

Private transactions, e.g., the occasional sale of domestic and

household articles, furniture or personal effects.

(d) FINANCIAL SERVICES

Financial Services are services, which are closely related to financial
intermediation, market intermediation, and risk pooling, and include
(a) the exchange of currency (whether effected by the exchange of bank
notes or coins, by crediting or debiting accounts or otherwise);
(b) the lending, borrowing or depositing of money;
(c) the issue, sale, underwriting, acceptance, purchase, renewal variation,
receipt, payments or transfer of ownership of a financial instrument;
(d) the payment or collection of any amount of interest, principal,
dividend or other amount whatever in respect of a financial
instrument;
(e) the provision of credit;
(f) the provision, taking, variation or release of a guarantee, indemnity,
security or bond in respect of the performance of obligations under a
financial instrument;
(g) the provision, or transfer of ownership, of an interest in
superannuation scheme, or the management of a superannuation
scheme;
(h) agreeing to do, or arranging, any of the activities above but not
advising thereon.
(e) FINANCIAL INSTRUMENT
A financial instrument is a document the main effect of which is to entitle a
specified person to a sum of money, and includes currency, all forms of
indebtedness, shares of capital stock, policies of insurance and re-insurance,
cheques and other payment instruments, letters of credit, options, future contracts
and guarantees.
(f) VAT DEDUCTIBLE ITEMS
(Input Tax)
Purchases/Expenses
Imports
Bad Debts written off
(g) VAT PAYABLE ITEMS
(Output Tax)
Sales
Deemed Commercial Supplies
Credit and Debit Notes given and received

-3-

REGISTRATION FOR VAT PURPOSES

Who is required to Register?
Any person who conducts a business activity and who makes commercial supplies
with a gross value in excess of $200,000 in any twelve-month period is required to
apply for registration for Value Added Tax (VAT).
Note: For purposes of VAT it is not the business activity, that is registered, but the
person who conducts it. The registration covers all the business activities of that
person. If the person conducting the business activity is an organization (i.e., not
an individual), it is the organization that must register. The individual partners or
members do not register. The registration of trustees of a trust or estate is in the
name of the trust or estate.
How to register
Persons may register as:
(i) A sole trader
(ii) A partnership
(iii) A limited liability company

-4Partnership
The Partners must complete the following:- VAT 1,
This is the application for Registration
- VAT 2,
This is where the Registration details of the Partnership are to be
Listed.

The documents to be supplied by the Partner are:- Certificate of Registration obtained from the Registrar Generals
Office.
- A Cash Flow projection for a period of twelve (12) months, starting
from the month following the date of application for Registration.
- The Board of Inland Revenue File Number.
Please note that the Income Statement must be signed by one of the Partners.
- If persons are employed by the Partnership, then an original and copy
of the Partnership PAYE file number are also required.

.
Documents Required
Sole Proprietor/Partnership
(a) Completed VAT 1 and VAT 2 forms signed and dated by a Sole
Proprietor / Partner or Partners respectively as required.
(b) Proper Identification for Sole Proprietor/Partner or for representatives,
letter of authorization from Sole Proprietor/Partner and identification of
representative.
(c) Original and copy of the Certificate of Registration.
(d) Original and copy of assignment of the Board of Inland Revenue (BIR)
tax file number and employers PAYE number (if any employees).
(e) A statement of gross sales/income for the last (12) months.
(f) For new businesses a cash flow projection in respect of gross
sales/income expected for the next twelve months of operations.

-6-

-5-

Limited Liability Company

Established before April 15th 1997

tender and intends to make commercial supplies of $200,000 or more, then it is at

this point, he/she applies for Registration for VAT

1. A completed application for Registration form (VAT 1), which must be signed
and dated by a Director.

Failure to Register

In the case of a foreign company, an authorized agent is allowed to sign the

application form.
A letter of authorization signed and dated by a Director of the foreign company,
must be submitted.
In addition, where the directors of a company are all foreign-based, a commitment
in writing, stating the person responsible for the preparation and submission of
the VAT return must be submitted to the VAT Administration.
2. A completed VAT 2 form giving such details as the Directors home addresses,
individual B.I.R. file numbers and their signatures.
3. An original and copy of the Certificate of Incorporation.
4. An original and copy of the Certificate, Articles and Continuance.
5. An original and a copy of the assignment of the Companys B.I.R. and
P.A.Y.E. file numbers.
6. A statement of gross sales/income for the last 12 months or for new businesses,
a statement in respect of gross sales/income expected during the first 12 months of
operation.
7. An original and copy of the Notice of Directors and Notice of addresses.
Established after APRIL 15TH 1997
In addition to the items stated in 1-8 an original and copy of the Articles of
Incorporation bearing the Registrar Generals Stamp is required.

Application for Tenders:

Applicants please note that the VAT Administration does not register persons
simply because they wish to apply for a tender. The procedure with regards to
tender is as follows:
The person who is making the application must first apply to any of the VAT
offices for a VAT Clearance Certificate. If he/she is granted the

The responsibility to register lies exclusively with that person, and failure to
register carries with it certain penalties.
A person who, not being registered, makes a commercial supply by reason of
which he is required to be registered, commits an offence and is liable on summary
conviction to a fine of $15,000 and imprisonment for one year. The Board may,
additionally, in such a case, assess the person for the amount of tax that would, in
its opinion, have been payable by that person in respect of any such commercial
supply made, as if he had been registered.
STOCK ON HAND AT DATE OF VAT REGISTRATION
Where a person has stock on hand at the time he is registered for VAT, the
registered person can claim Input VAT on the stock on hand in his first tax period
if he can produce an inventory report which has been audited by a Chartered
Accountant showing that the stock in trade was on hand when he became
registered.

-8-

-7GUIDELINES FOR KEEPING BOOKS AND RECORDS

The Value added Tax Act, 1989 Sec. 38 (1) (Act 37 of 1989) requires each
registered person to keep books and records that would enable The Board to
ascertain the liability of that person to tax.
The Board of Inland Revenue has issued the following guidelines to registered
persons for the keeping of proper books and records.
How to Keep
1. In the English Language
2. In the Currency of Trinidad and Tobago
3. Complete and up to date
4. In such form as would enable the Board of Inland Revenue to determine
the accuracy of the information appearing on the VAT Return.
What to Keep
1. Copies of tax invoices, proforma invoices and certificates of waiver
2. Purchase invoices including bills and receipts to support expenditures
made
3. Import and export documentation
4. Copies of debit and credit notes received or given
5. Cash receipt and cash payment books
6. Purchase, sales, salaries and wages books
7. Stock sheets
8. Fixed assets register
9. Copies of financial statement balance sheet and trading and profit and
loss statement
10. Bank statements, deposit slips and returned cheques
11. General ledger, general journal and Directors Minute Book
12. Records of daily takings and till rolls
13. All business correspondence relating to the purchase or supply of goods
14. A record of supplies taken for personal use or given free of charge
15. Such other records as may be required to be kept for the purposes of the
business
16. A VAT Account which shall contain a summary of the totals of output
tax and input tax, in the following manner:
VAT Deductible
(Input Tax)
Purchases/Expenses
Imports
Bad Debts written off

VAT Payable
(Output Tax)
Sales
Deemed Commercial Supplies
Bad Debts received
Credit and Debit Notes given
and received

Where to Keep
1. At the principal place of business in Trinidad and Tobago; or
2. At such other place as may be approved by the Board of Inland Revenue
How long to Keep
1. Unless otherwise notified, a person whether or not he continues to be
registered, shall be required to keep his books and records for a period of
not less than six years after the end of the last tax period to which they
relate.

TAX INVOICES
Whenever a supply of standard rated goods or services is made to a registered
person, a Tax Invoice is to be prepared.
The tax invoice must show:

The words Tax Invoice (shown prominently)

An identifying serial number and the date on which the invoice was given
Your name, address and VAT registration number
The name and address of the recipient
A description of the goods and/or services supplied, including the
quantity of goods or type of services supplied
The value of the goods and/or services
The rate and amount of VAT applicable
The total value of the invoice including the VAT

Therefore, a Tax Invoice is a commercial bill or which includes:

-

The words Tax Invoice

Your VAT registration number
The rate and amount of VAT applicable
The total value of the invoice including VAT

Businesses operating cash registers will normally give a till slip to the customer,
inclusive of VAT. Should a customer request it, a Tax Invoice must be issued,
and must contain the information specified above.

-9-

-10-

SPECIMEN
DETAILED TAX INVOICE

CREDIT OR DEBIT NOTES

The Words Tax Invoice

VAT Reg. No. (#)

Invoice No. (#)

Tax Invoice
VAT Registration No.:
Invoice No.:

Name and Address of

Business

Ms Variety Store
Milford Road
Scarborough
Tobago

Name and Address of

Purchaser

Sold to: Mr. Expo

Address: Crown Point
Tobago

Date of Purchase

22.10.07

Where a supply is cancelled, or the consideration for the supply is altered, or the
goods or services are returned to the supplier, then the recipient should be given a
debit or credit note as the case requires. Such notes should be permanently
marked debit or credit, and should contain similar information to that required for
a tax invoice.

023456
103468

RECORDS OF SALES & PURCHASES

SALES
Once Tax Invoices have been issued and copies are kept of all standard rated and
other sales, sales records can be established.
Sales records should list in the order of the invoices showing totals for:-

Unit Price exclusive of

VAT
VAT at 15%
Total cost of item
inclusive of VAT

1 only 6 x 9
Oriental Rug
VAT at 15%

Unit
Price

Amt.
Excl.
Of VAT

$565.28

$565.28
84.72
_______
$650.00
_______

SPECIMEN
SIMPLIFIED TAX INVOICE
Name and Address of
Business

VAT Registration No. (#)

Date of Purchase
Cost of Items inclusive of
VAT

Invoice No.

Ms Variety Store
Milford Road
Scarborough
Tobago

Value Added Tax due on your sales

VAT exclusive values of what you have sold
Any exempt supplies
Any credits allowed to your customers

In addition to the above:

(a) Businesses which use cash registers, with till rolls, and issue tax
invoices from time to time, e.g. supermarkets, must to retain these
tax invoices and till rolls as part of their records.
(b) Computer generated records must provide the same type of
information provided by a manual system, and must be sufficient to
enable the VAT on your purchases and sales to be accurately
computed.

PURCHASES/EXPENSES

VAT # 023456
22.10.07
#1
#2

$4.00
25.95

Sub Total
Cash
Change

29.95
30.00
.05

#103468

Your suppliers Tax Invoices will give you all the details you need. Just make a
list of the invoices in the same order as you keep them, which allows individual
invoices to be easily identified. You may find it useful to number the invoices on
receipt, and record the same numbers against the entries in your listing which must
show:

Value Added Tax on purchases and expenses

VAT exclusive values of items purchased
VAT on imports
Any credits received from suppliers

-11IMPORTS

-12FORM OF THE VAT ACCOUNT

VAT is payable at the time of entry of imported goods. To reclaim the VAT you
paid, you must have official evidence of the amounts involved e.g. a copy of the
VAT Assessment Form VAT 401.

2.

The VAT Account must be set out so as to give the following

information:
(a) the total output tax charged by the registrant to his customer,
during each tax period; (Vat on Sales)
(b) the total input tax charged to the registrant by his suppliers,
during each tax period; (Vat on Purchases/Expenses)
(c) details of any VAT over or underpaid during a previous period,
whether found by the registrant or notified by the VAT office;
(d) the net amount of VAT payable by the registrant for each period,
or the amount due as a refund;
(e) the total amount of money (excluding VAT) charged to
customers for taxable supplies for each period;
(f) the total amount charged for exempt supplies;
(g) the total amount charged by suppliers (excluding tax), for
taxable supplies;
(h) the total amount charged by suppliers for exempt supplies;
(i) any adjustments allowable in respect of bad debts.

VAT claimed on purchases/expenses must be shown as a separate total in your

records.
N.B. The Customs and Excise Division is responsible for the Vat on Imports.
GOODS GIVEN AWAY OR TAKEN FOR YOUR OWN USE
If you give away or put to private or other non-business use, goods which you
have acquired or produced in the course of your business, you need only record:
What the goods were
The date you took them from stock
VAT exclusive cost (based on your normal selling price)
The rate and amount of VAT chargeable,
Since under the VAT system this is considered a normal sale.

THE VAT ACCOUNT

REQUIREMENT
1.

Though not required by law, every VAT registrant is encouraged to

maintain a VAT Account. This account is meant to provide a
documentary summary of the VAT transactions of the registrant, and to
include the basic information from which the VAT return is made up.
The VAT Account must be inspected by the VAT officer on every
verification visit, and he must confirm that the figures on each VAT
return have been taken from the VAT account.

At the end of each tax period you should calculate the difference between your
input tax and output tax record. (See next page).
VAT ON PURCHASE OF MOTOR VEHICLE
Where a registered person, purchases a motor vehicle which is used partly for
private use, the VAT to be claimed is restricted to the business element.
Example:

Cost of Motor Vehicle before VAT

VAT
Total Cost

$100,000
15,000
$115,000

Assuming the vehicle has a private use element of 25%, the VAT to be claimed is
restricted to: 75% x $15,000 = $11,250.

-14-

-13-

THE VALUE OF SUPPLY

Arms Length Transaction
VAT ACCOUNT
The VAT charged on a supply (output tax) is calculated by multiplying the value
of the supply by the rate of tax charged. Where considerations for the supply is
made wholly in money, the value of the supply is the consideration paid, excluding
any tax.

Period from 1 February 2007 to 31 March 2007

VAT deductible Input tax

VAT payable Output tax

Non-Arms Length Transaction

VAT you have been charged
on your purchases
February
March

VAT on imports

Overdeclarations of VAT
from previous periods, but not
those notified by the VAT
Office
VAT on bad debts written off

VAT due on your sales

815.23
644.26
1459.49
96.85

300.50

50.25
1907.09

February
March

VAT due on goods taken

for your own use
Underdeclarations of
VAT from previous
periods, but not those
notified by the VAT
Office
VAT on
Bad Debts recovered

1280.23
1272.87
2553.10
19.60

139.20

Where the consideration is not paid in money or paid partly in money or where the
transaction is between associated persons (not dealing with each other at arms
length) the value of the supply is the open market value. The open market value
will also be used on barter transactions. Therefore if you choose to give away any
item of stock for whatever reasons, the gift will be deemed a supply and it will be
valued at the open market value.
For example, if a company gives a car to one of its directors son and invoice the
transaction at ten thousand ($10,000) dollars, however, the open market value of
the vehicle is one hundred thousand ($100,000) dollars, then the VAT will be
calculated on the one hundred thousand ($100,000) dollars.
Open market value is the amount that a buyer and seller will agree to in situation
where both parties are dealing with each other at arms length.

21.25

Imports
VAT on credits you have
received from suppliers
Total tax deductible

1907.09

Less:
VAT on credits you have
allowed your customers

27.50
2760.65

23.00
2737.65

Total tax payable

Less:
Total tax deductible

1907.09

Tax payable to the

Commissioner Value
Added Tax

830.56

In respect of imports, the VAT accountable is the amount of the invoice, plus the
cost of insurance and freight as well as any other duties payable on the
importation, such as stamp duty and customs duty, etc.
BEFORE CHARGING VAT A REGISTERED PERSON SHOULD
(a)
(b)
(c)
(d)

Ensure that the supply is within Trinidad and Tobago

Ensure that the supply is a commercial supply
Establish the correct rate of VAT on the supply
Determine the time of the supply

-15TIME OF SUPPLY
The time of supply identifies the tax period in which a transaction is to be taxed.
The tax period is the period of two months for which a registered person is to
account for VAT to the Board of Inland Revenue.
The general rule is that a supply takes place on the earliest of the following:
(a) the date invoice is issued;
(b) the date of payment;
(c) the date when the goods are made available or in the case of
services, when the services are supplied;
Exceptions to the above are as follows:

-16With respect to imports, the time of supply is the date the goods are received by
customs, i.e., when the customs entry is made. In the case of self-supply, the time
of supply is when the goods are taken.
This is a very important area, since accounting for VAT in an incorrect period
could result in penalty and interest being charged.
For example, a registered person may sell an item on credit on 3/01/06 (invoice
and delivery date). Payment is received on 15/03/06. The liability of his supply to
VAT is determined by the time of supply, which in this situation is the invoice or
delivery date. Assuming then that the registered persons first tax first period ends
on 28/02/06 though payment was not received until his second tax period he would
have to account for the VAT on this sale in his first tax period.
ZERO RATED SUPPLIES
These are goods that are taxable but at a zero rate or nil rate, these supplies
include:1. (1) Any -

(a) where supplies are made under an agreement for hire purchase
or with an option to purchase, or with an option to return, the
supply is made when the goods are made available to the
recipient;
(b) where services are supplied continuously as in the case of
electricity, the time of supply is the invoice date;
(c) where services are supplied under an agreement that requires
periodic payments, the time of supply is when an invoice is
given, or where no invoice is given, the earlier of when payment
is made or became due;
(d) where goods are supplied periodically in a situation where
payment becomes due at the issue of an invoice, the time of
supply is the earliest of:
(i) the date an invoice is given;
(ii) payment date; or
(iii) the date when payment is due;
(e) with respect to construction projects, where the agreement states
that payments will be made at various stages of construction,
e.g., a deposit, a payment on completion of foundation, etc., the
supply of each stage takes place at the earliest of:
(i) the date the invoice is given for that stage;
(ii) the date payment for that stage becomes due;
(iii) the date payment for that stage is made;

(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
(n)
(o)
(p)
(q)
(r)
(s)
(t)
(u)
(v)

unprocessed food of a kind used for human consumption;

rice;
flour;
milk in any form, including processed and tinned milk;
margarine;
bread;
baby formulas and baby milk substitutes;
cheese and curd;
corned beef;
curry;
fresh butter;
peanut butter;
table salt;
salted butter;
tin sardines;
smoked herrings;
toilet paper;
yeast;
baking powder;
pasta;
cane sugar;
cocoa powder, whether or not containing added sugar or other sweetening
matter;
(w) coffee;
(x) mauby;
(y) orange juice;

-17(2) In this item unprocessed in relation to a food means that the food contains
no additives and that it is not the result of the application of a process other
freezing, chilling or packaging, a mechanical process, or a process that solely
employs the element of the weather.
2. (1) Any live bird, fish crustacean, mollusc or other animal of a kind generally
used as, or yielding or producing, food for human consumption.

-188B. Diabetic:
(a) diagnostic testing kits and devices for testing glucose in blood and
urine;
(b) insulin syringes with needles and devices of a type not exceeding 100
units (1.0 ml) capacity, for the administration of U-100 insulin.

3. Animal feeding stuffs suitable for any animal referred to in item 2.

8C. Medicaments (excluding goods of heading No. 30.02, 30.05 or 06) consisting
of mixed or unmixed products for therapeutic or prophylactic uses, put up in
measured doses or in forms or packings for retail sale, as contained in Customs
Heading No. 30.04 of the First schedule to the Customs Act.

4. Seeds and other means of propagation of plants and plants that are used for
providing -

9. Aeroplanes and ships imported by or supplied to the State or State

Corporations.

(2) Any draught animal

(a) a food referred to in item 1(1)(a), (b) or (c); or

(b) a feeding stuff referred to in item 3.
5. Preparations formulated for agricultural use including fertilizers, insecticides,
herbicides, and fungicides.
6. Self-propelled agricultural equipment, agricultural tractors and agricultural
implements for attachment to agricultural tractors; agricultural implements
propelled by draught animals; agricultural devices designed to be carried by the
operator.
7. Water and sewerage services supplied by a public authority.

10. Repair of aeroplanes and ships used in international commercial services

(whether or not belonging to the State or a State Corporation).
11. Any goods which are supplied to a destination outside the territory of Trinidad
and Tobago.
11A. any goods which are supplied to a destination within a free zone under the
Trinidad and Tobago Free Zones Act.
12. Any services which are supplied for a consideration that is payable in a
currency other than that of Trinidad and Tobago, to a recipient who is not within
Trinidad and Tobago at the time when the services are performed.
13. Natural gas.
14. Crude oil as defined in section 2 of the Petroleum Taxes Act.

7A. Bus services supplied by the Public Transport Service Corporation under the
Public Transport Service Act.
8.

Medicines and drugs of a kind available only by prescription.

8A. Any of the following medicines for human use:

(a) analgesics in the form of liquids, tablets, capsules or other solid
dosage forms for oral or rectal use;
(b) cough and cold preparations in the form of liquids, tablets, capsules
or other solid dosage forms for oral and nasal use;
(c) anatacids and antiflatulants in the form of liquids, tablets, capsules
and other solid dosage forms for oral use;
(d) laxatives in the form of liquids, tablets, capsules or other solid
dosage forms for oral or rectal use;
(e) anthelmintics in the form of liquids, tablets, or capsules for oral use;
(f) oral rehydration preparations in the form of salts or solutions of
W.H.O./Pharmacopoeia standards.

15. Veterinary services supplied in respect of animals referred to item 2.

16. Pest control services supplied for the purposes of agriculture.
17. International freight and ancillary services including port and harbour
services, docking, berthing and mooring, conservancy, aircraft landing, parking
and housing, apron services, airport navigation services, transportation to the point
where the goods are entered, demurrage or arranging any such services.
18. Unconditional gifts of goods or services to an organization approved by the
President under section 6(1)(e) and (g), of the Corporation Tax Act.
19. Domestic travel between Trinidad and Tobago.
20. Goods and water for consumption or sale on board an aeroplane or ship in the
course of providing international commercial services.
21. Charter of ships or aircraft for use in international commercial services.

-1922. Books namely literary works, reference books, directories, collections of

letters or documents permanently bound in covers, loose-leaf books, manuals or
instructions whether complete with their binder or not, amendments to loose-leaf
books even if issued separately, school work books and other educational texts in
question-and-answer format with spaces for insertion of answers, childrens
picture and painting books, exercise books, other paper and paperboard of a kind
used for writing, printing or other graphic purposes, puzzles, magazines not
otherwise prohibited to be imported, exported or carried otherwise but excluding
brochures, pamphlets and leaflets, newspapers, journals and periodicals,
photograph and stamp albums.
23. Steelband Instruments.
24. Accommodation at a building or group of buildings occupied together for the
purpose of primarily providing sleeping accommodation for reward for its guests,
not being persons resident therein under a contract of service.
25. Repair of yachts and pleasure crafts owned by persons who are neither
citizens nor residents of Trinidad and Tobago at the time when the repairs are
performed.
26. (1) Any service supplied to yachts and pleasure crafts owned by persons who
are neither citizens nor residents of Trinidad and Tobago at the time when
service is supplied.
(2) In this item service includes port and harbour services, docking,
berthing, mooring, conservancy or the arranging of such services.
27. Plant, equipment, machinery or components which are imported and the
Comptroller of Customs and Excise is satisfied are intended for use in (a) constructing, altering, reconstructing or extending and enterprise
classified as a highly capital intensive enterprise under section 9 of Fiscal
Incentives Act (hereunder referred to as the Act) and declared, by
Order, to be an approved enterprise under section 10 of the Act;
(b) equipping an enterprise referred to in paragraph (a) for the purpose of
manufacturing its approved product as defined by the Act,
during the period commencing with the date of publication of the Order referred to
in paragraph (a) and terminating on the date on which the benefits granted by that
Order cease.
28. The items contained in the First Schedule to the Customs Act under Tariff
Heading No. 90.21, being orthepaedic appliances, including crutches, surgical
belts and trusses; splints and other fracture appliances, artificial parts of the body;
hearing aids and other appliances which are worn or carried or implanted in the

-20body, to compensate for a defect or disability, other than items in Tariff

Subheading Nos. 9021.21 and 9021.29, being artificial teeth and dental fittings.
29. The items contained in the First Schedule to the Customs Act(a) under Tariff Heading No. 84.71, being automatic data processing
machines and units thereof, magnetic or optical readers, machines for
transcribing data onto data media in coded form and machines for
processing such data, not elsewhere specified or included;
(b) being parts and accessories listed in Tariff Subheading No. 8473.30 in
respect of machines under paragraph (a); and the following lists of
Computer Accessories as classified by The Customs and Excise Division.
Motherboard
Central processing unit (CPU)
Laser Jet Toner Cartridge (General Order/99)
Ink Jet Print Cartridge (General Order/99)
Memory Chips
Video card
Computer disc for Computers
Modem
Keyboard
Scanner
Monitor
CD Rom
CD Rom Drive
Hard Disc Drive
Floppy Disc Drive
Zip Drive
Speakers Multi-media kit
Mouse
Mouse Pad
Computer tape (recorded)
Sound Card
Computer tape (blank)
Printer
File for Monitor (Screen)
(c) being diskettes as contained in Tariff Subheading No. 8523.201 and
8524.993.
30. Compact disc for computers.

-2131. The items contained in the First Schedule to the Customs Act (a) Glasses for corrective spectacles having Tariff Subheading No. 7015.10.
(b) Contact lenses of glass having Tariff Subheading No. 9001.30.
-

Prescription contact lenses are subject to VAT at the

zero rate (0%)
Where contact lenses are dispensed to a patient along
with a starting solution kit as a package, that package is
also subject to VAT at the zero rate. However, please
note that:
Plain coloured contact lenses use for cosmetic
purposes and
The sale of solution used for disinfecting,
cleaning, and storing contact lenses are subject
to VAT at fifteen (15%) percent.

(c) Spectacle lenses of glass having Tariff Subheading No. 9001.40.

(d) Spectacle lenses of other materials having Tariff Subheading No.
9001.50.
SPECTACLES
Prescription spectacles are usually dispensed to a patient in the form of:

Prescription spectacle lenses glazed into a spectacle frame

The frame and lenses becomes one unit (the spectacle) although that were
imported separately.

Spectacle case
Lens cleaning cloth

Where the spectacle, spectacle case, and lenses cleaning cloth are sold as
a package that sale is subject to VAT at the zero rate, i.e. NO VAT.
Also, where a spectacle frame or lens is sold separately VAT is not
applicable. However:
Where a spectacle case or lens cleaning cloth is sold as a
separate item VAT becomes due on that sale.
Pre-manufactured sunglasses, (sunglasses bought off the shelf)
and non-prescription sunglasses made to order (Plain sunglasses)
are subject to VAT at fifteen (15%) percent.
Replacement parts to spectacle frames (e.g. nose pads,
sides, tips and screw) have also been zero (0%) rated.
However:

Accessories are subject to VAT at fifteen (15%) percent

(e.g. spectacle cords).
Low vision aids, such as clip-ons or hand magnifiers are
also subject to VAT at fifteen (15%) percent.

-22Repair services performed by VAT Registered persons, e.g.

soldering of frames, or cleaning and polishing contact lenses
continue to be subject to VAT at fifteen (15%) percent.
Frames and mountings of plastic having Tariff Subheading No. 9003.11.
Frames and mountings of other materials having Tariff Subheading No.
9003.19.
Parts having Tariff Subheading No. 9003.90.
Corrective spectacles having tariff sub-heading number 9004.90.

(e)
(f)
(g)
(h)

THE FOLLOWING TABLE SUMMARIES THE RELIEF:

ITEMS

CUSTOMS
TARIFF #

Prescription Spectacles
(lenses, frames, spectacle
case & lens cleaning cloth)
sold as a package

9003.11/9003.19
9001.40/9001.50

Spectacle frame
(sold separately)

VAT

NO
VAT

SECTION OF
LAW
Schedule 2 Item 31

(c), (d), (e) & (f)

9003.11/9003.19

Schedule 2 Item 31
(e) & (f)

Prescription Lenses
(Sold separately)

9001.40/9001.50

Schedule 2 Item 31
(c) & (d)

Prescription contact lenses

And starting solution kit
Sold as a package

9001.30

Schedule 2 Item 31
(b)

Parts
(replacement parts e.g. nose
pads, sides, tips & screws)

9003.90

Schedule 2 Item 31
(g)

Accessories
[e.g. spectacle cords]

N/A

N/A

Low Vision Aids

[e.g. Clip Ons or Hand
Magnifiers]

N/A

N/A

Non-prescription Plano &

pre-manufactured sunglasses
(e.g. Ray Ban)

N/A

N/A

Plano coloured contact

lenses used for cosmetic
purposes

N/A

N/A

Repair services
(e.g. soldering of frames and
the cleaning and polishing of
contact lenses)

N/A

N/A

-2332. The items contained in the First Schedule to the Customs Act(a) Invalid carriages, not mechanically propelled having Tariff heading No.
8713.10.
(b) Other invalid carriages having Tariff heading No. 8713.90.
(c) Parts and accessories of invalid carriages having Tariff heading No.
8714.20.

-2434. With effect, September 14th 2001, the following was amended to zero-rated
items.
TARIFF No.
Ex. 03.05

DESIGNATION
Salted Fish

st

33. With effect, January 1 , 2001, the following sporting goods, articles and
equipment.

ZERO-RATED ITEMS
Fillet salted fish that is dried but not
smoked or in brine.

TARIFF NO.

ZERO-RATED ITEMS

Whole salted fish that is dried but not

smoked or in brine.

(a) 6402.19

Sport shoes made of rubber.

Sport shoes made of plastic.

Salted fish not dried, not smoked nor

in brine.

(b) 6403.19

Sport shoes made of leather.

Sport shoes made of a combination of leather and other materials.

(c) 6404.111

Sport shoes made of a combination of textile and other materials.

(d) 9506.31

Golf clubs only.

(e) 9506.40

All tennis articles and equipment. Including tennis balls.

(f) 9506.992

Articles and equipment for soccer. Excluding soccer balls.

(g) 9506.912

Articles and equipment for athletics.

(h) 9506.991

Articles and equipment for cricket. Excluding cricket balls.

(i) 9506.919

Articles and equipment for other sporting activities.

(j) 9506.911

Articles and equipment for gymnastics.

(k) 9506.999

Articles and equipment for other sports or other outdoor games.

(l) 9506.32.00

Golf balls.

(m) 9506.61.00

Lawn-tennis balls.

(n) 9506.62.10

Inflatable balls for soccer.

(o) 9506.62.90

Other inflatable balls.

(p) 9506.69.00

Other balls.

Please Note Articles Of Clothing Used For Sporting Activities Are Subject To
VAT at the Rate of 15%.

35. With effect, September 14th 2001, the following was amended to zero-rated
items.
TARIFF No.

DESIGNATION

ZERO-RATED ITEMS

3306.101

Toothpastes

Toothpaste

Ex. 3307.20

Personal
Deodorants

Deodorants
Excluding Antiperspirant

Ex. 3401.112

Soap

Toilet soap in the forms of bars, cakes,

moulded pieces or shapes Excluding
Medicated Soap.

Ex. 3401.191

Soap

Soap in the forms of bars, cakes,

moulded pieces or shapes for laundry
and other household uses.

4818.401

Sanitary Towels &

tampons

Sanitary towels and tampons

4818.402

Napkins

Napkins and napkins liners for babies

made of paper

Ex. 4818.409

Diapers

Diapers for adult use, made of paper

5601.101

Sanitary towels &

tampons

Sanitary towels & tampons

5601.102

Napkins

Napkins and napkins liners for babies,

made of textile

5601.109

Diapers

Diapers for adults made of textile.

-25-

-26-

EXEMPT SERVICES

(f) the provision, taking, variation or release of a guarantee, indemnity,

security or bond in respect of the performance of obligations under a
financial instrument;
(g) the provision, or transfer of ownership, of an interest in a super-annuation
scheme, or the management of a superannuation scheme;
(h) agreeing to do, or arranging, any of the activities above but not advising
thereon.

1. Medical, dental, hospital, optical and paramedical services, other than

veterinary services.
2. Bus and taxi services other than bus services supplied by the Public Transport
Service Corporation under the Public Transport Service Act.
3. Training and education provided:
(a) in a public school or private school within the meaning of the Education
Act, where that school(i) in the case of a private school, is registered under that Act; and
(ii) in any case, is approved for the purposes of this item by the Minister
to whom responsibility for education is assigned; or
(b) through the University of the West Indies or the Hugh Wooding Law
School.
4. Real estate brokerage.
5. Rental of residential property.
6. Accommodation in hotels, inns, guest houses for any period in excess of thirty
days.
7. Public Postal Services.
8. Betting, gambling and lotteries.
9. Financial Services.
Financial services are services which are closely related to financial
intermediation, market intermediation, and risk pooling, and include:
(a) the exchange or currency (whether effected by the exchange of bank
notes or coins, by crediting or debiting account or otherwise;
(b) the lending, borrowing or depositing of money;
(c) the issue, sale, underwriting, acceptance, purchase, renewal, variation,
receipt, payments or transfer of ownership of a financial instrument;
(d) the payment or collection of any amount of interest, principal, dividend or
other amount whatever in respect of a financial instrument;
(e) the provision of credit;

financial instrument and two (2) items No. 11 & 12 missing.

EXPORT OF GOODS
THE LAW
Schedule 2, item 11 of the Value Added Tax Act, states that any good which is
supplied to a destination outside the territory of Trinidad and Tobago; is subject to
VAT at a rate of zero percent. (0%).
This means, that where a registered person supplies goods by exporting them to a
destination outside of Trinidad & Tobago VAT will not be charged on such
supplies.
PROOF OF EXPORT
A registered person will be regarded to have exported goods if he is so named as
the exporter in the shipping documents relating to the export of the goods. The
Board of Inland Revenue requires the VAT registered person who purports to have
exported goods produce copies of all relevant shipping documents to support his
claim of exportation.
Where the shipping documents produced do not identify the registered person as
the exporter of the goods, the VAT registered person will be held accountable for
the Value Added Tax due and payable at the rate of fifteen percent (15%), since
the supply would not have been in accordance with the Schedule 2, item 11 of the
VAT Act.
Supplies which do not qualify as Exports
The following supplies do not qualify as exports under Schedule 2, item 11 of the
VAT Act.
(a) Goods ultimately intended for export but supplied to a person at the
supplier premises or delivered to him at the shipping point. This includes
supplies to a person who will be responsible for exporting the goods
himself (that is, the recipient of the goods will be named as the exporter
of the goods on the shipping documents.)
(b) Goods supplied locally to a recipient who produces a document such as a
passport as evidence that the goods are to be taken out of the country.
Please note, where a registered person supplies goods to a non-resident

-28-

-27within the territory of Trinidad & Tobago such goods are chargeable to VAT
at the Standard Rate of 15% even if it appears that it is intended to be used
outside of the territory of Trinidad & Tobago and all VAT registered persons
will be held accountable for any VAT due and payable on such supplies.
PERSONS ORGANISING CARNIVAL ACTIVITIES AND
OTHER FORMS OF ENTERTAINMENT
The persons who could be affected include, the designers of costumes for carnival
bands, the promoters of carnival bands, arrangers, tuners of steel pans, musicians,
disc jockeys, persons offering sound systems for rent, persons providing venues
for the holding of shows and fetes, promoters of carnival shows, calypso tents and
fetes and persons selling food and drink. etc.
THE LAW
Value Added Tax is charged under Section 6(b) of the Value Added Tax Act, on
the commercial supply within Trinidad and Tobago of goods or prescribed
services by a registered person. Section 14(1) of the Act defines a commercial
supply as, a supply of goods or prescribed services that is made in the course of,
or furtherance of, any business.
From the above it can be gleaned that all goods and prescribed services are
taxable. A prescribed service means any service not listed as an exempt service
under the Act.
Thus a supply will be taxable if(a) it a good or prescribed service;
(b) it is made in the course of, or furtherance of, any business; and
(c) the supplier is required to be registered under the Value Added Tax
Act.
What Constitutes a Business
For the purposes of the Value Added Tax Act a business generally refers to a
trade, profession or vocation, but the following activities are also regarded as a
business:
(1) An activity that is carried on, whether or not for pecuniary profit, and
involves or is intended to involve, in whole or in part, the supply of
goods or services for consideration; and
(2) An activity involving the admission, for a consideration, of persons
to any premises.

In light of (1) above, the following are examples of persons who engage in
carnival related activities and who would be considered to be engaged in a
business by virtue of the fact that they offer goods or prescribed services for
consideration:

Persons supplying sound systems for a fee

Promoters of carnival bands
Musicians
Disc jockeys
Persons supplying transport for musicians and carnival bands
Persons offering for a fee, premises and other facilities for holding of
shows and fetes
Persons engaged in operating bar/food concessions
Arrangers of music for bands
Tuners of steel pans
Guest House Operators

Additionally, under (2) above where an amount of money is charged for the entry
of persons to any premises, then the activity for which the charge is levied shall
constitute a business and the following persons should therefore be aware that they
would be considered to be engaged in a business under this provision of the Act:

Promoters of carnival fetes and dances

Managers/Owners of calypso tents
Promoters of carnival shows

It should be pointed out that an activity does not cease to qualify as a business
merely because it is not carried on with any degree of regularity. Hence, even a
single undertaking of an activity, for which admission is charged would be
sufficient to deem the undertaking a business.

-30-

-29The Dos and Donts of VAT

DOS
REGISTER FOR VAT, if you make or intend to make commercial supplies in
excess of $200,000 in a twelve month period.

MAINTAIN A VAT ACCOUNT

This account provides a documentary summary of the VAT Transactions of the
registered person for a particular tax period. It also gives the basic information
required to prepare The VAT Return.
DONTS

ACCOUNT FOR VAT, at the rate of 15% on standard rated supplies (sales) made.
DISPLAY YOUR VAT REGISTRATION CERTIFICATE in full public view.
ISSUE TAX INVOICES on the supply of Vatable goods and services.
(Either a simplified tax invoice on sales in excess of twenty ($20.00) dollars or a
detailed tax invoice for any amount, if so requested).
KEEP PROPER BOOKS AND RECORDS, so as to enable the Board of Inland
Revenue to correctly calculate your Vat liability.
KEEP YOUR BOOKS AND RECORDS for a period of six (6) years.
COMPUTE YOUR VAT RETURN CALCULATIONS correctly.
INSERT MATHEMATICALLY CORRECT calculations in the designated boxes.
FILE YOUR VAT RETURN by the 25th day of the month, following the end of
your tax period.
AVOID PENALTY AND INTEREST by paying all outstanding Vat.
INFORM THE VAT ADMINISTRATION of any changes in your registration
particulars.
MAKE PAYMENTS OF VAT at Cashiers Unit, Trinidad House, Port of Spain
and any of our Regional Offices situated at #6 Prince Street, Arima, Cipero Street,
San Fernando and Sangsters Hill Tobago.
REPORT ANY KNOWN OFFENCES against the VAT Act to the
Vat Administration Centre, Port of Spain.
RETURN YOUR VAT CERTIFICATE OF REGISTRATION upon deregistration.
Failure to do so results in a fine of fifteen thousand ($15,000) and imprisonment
for one (1) year upon summary conviction.

DONT CHARGE VAT, if you have not registered for VAT.

You will be subject to a fine of thirty thousand ($30,000) dollars and
imprisonment for two (2) years, upon summary conviction for breach of this
provision.
DONT DISPLAY A CERTIFICATE not issued by the Board of Inland Revenue
nor should you display one after de-registration.
DONT SUBMIT an unsigned VAT Return.
There is provision for two (2) signatures on the VAT Return Form, one for the
declarant and the other for the preparer.
The person who prepares the return must sign her/her name in the box provided
for the preparer.

-31-

-32-

DONT TENDER AN INCOMPLETE CHEQUE for the payment of VAT.

If you do, you will be subject to penalty and interest, since payment would not
have been effected.

INSTRUCTIONS FOR COMPLETION OF

VALUE ADDED TAX RETURN (VAT 101)
(All references are to Sections of the VAT Act, 1989)

An incomplete cheque is one where any of the following exists:

There is no date or signature

The words and figures differ or
The cheque is post-dated to a date beyond the deadline date

DONT FILE A PHOTOCOPY of your VAT Return

You must use an original Vat 101 Form when filing a VAT Return. If you did not
receive one in the mail, you can request one in writing, and it will be prepared for
you.

Box 1 & Box 2

Information in boxes 1 and 2 will be preprinted prior to mailing.
Total Value
of supplies
made this
period
(excluding
VAT)

(a) stocks disposed of upon transfer of a

business as a going concern. Section

14(2)- at selling price

(c) goods belonging to you and sold

by another party to satisfy a debt.
Section 14(4)- at actual proceeds

RETURNS AND TAX PERIODS

How often are VAT Returns Submitted?

The VAT Administration will advise each registrant as to which Category he has
been assigned.

$.

$.

(d) goods on hand when business/

registration ceases. Section 14(5)lower of cost or selling price
$.
______________
Total to be shown in Box 3
$
______________

The period covered by the VAT Return is referred to as the tax period. The
standard tax period is two (2) months. Persons registered for VAT are required to
submit a return and remit VAT due for each two-month period. Each return is due
on or before the 25th day of the month following the end of the tax period. There
are two categories for the two-month period.

Category B: tax periods ends on the last day of February, April,

June, August, October and December.

(b) goods taken for private use or given

free of charge. Section 14(3)-at
selling price

$.

DONT PROVIDE FALSE INFORMATION to the Board of Inland Revenue.

You will be subject to a fine of fifteen thousand ($15,000) dollars and
imprisonment for one year upon summary conviction, if you do.

(2) the following deemed commercial supplies:

Failure to comply with this provision, can result in a penalty of thirty thousand
($30,000) dollars and a further fine of one hundred ($100) dollars for each day the
offence continues, upon summary conviction.

Category A: tax periods ends on the last day of January, March,

May, July, September and November; and

The total here would include the sum of (1) all sales made for the period (Cash and
Credit)

DONT DISPLAY a faded or an illegible VAT Registration Certificate.

If your certificate has become faded or illegible, you must apply in writing for a
replacement certificate.

Box 3
Box 3 Shows the value exclusive of VAT of all
commercial supplies (zero-rated and standard rated)
and exempt supplies made for the period.

Zero-rated
and exempt
supplies
included
above

Box 4
Show here the total of any zero-rated and exempt
supplies included in Box 3. Write NIL where there
is none. (Schedule 1 of the Act list the goods and
services which are exempt). (Schedule 2 of the
Act list the goods and services which are zero-rated).
Total to be shown in Box 4: (A plus B)
$..
(A) Zero-Rated Supplies: $(B) Exempt Supplies: $.
Included in Box 3
included in Box 3

-33VAT on
commercial
supplies this
period

-34-

Box 5
Show here the VAT due on the commercial supplies
you have made for the period.
Total to be shown in Box 5:
15% x (Box 3 Box 4)

Note: If the figure in this box is incorrect, the processing

of your return will be unduly delayed.
Tax
Adjustments

Box 6
Show here the net tax adjustment, if any, in respect of
(a) Items that increase output tax. (Credit notes received,
debit notes given, bad debts recovered during the
period and indemnity payments received); and

Total
commercial
supplies
received
(excluding
VAT) for
which tax
invoicing
requirements
have been
met.

(b) Items that decreased output tax. (Credit notes given,

debit notes received and bad debts written off during
the period).
Copies of debit/credit notes, details of bad debts and indemnity
payments are to be supplied with the return.
If the total shown in Box 6 increases the Output Tax for the
period delete the word minus appearing immediately over that
box. If the total in Box 6 decreases the Output Tax, then delete
the word plus.
Write NIL in Box 6 if there is no adjustment.
VAT ON: Items that increase output
VAT ON: Items that decrease output
tax:
tax:
(1)
(2)
(3)
(4)

Credit Notes received

Debit Notes given

Bad debts recovered

Indemnity payment
received
Total (C)

$
$
$

(1) Credit Notes given

$
(2) Debit Notes received $
(3) Bad debts written off $

$
$

Total (D)

Where C is greater than D the total shown in Box 6 will increase

output tax. Where D is greater than C the total shown in Box 6
will decrease output tax.

Box A
Show here the sum of Box 5 plus/minus Box 6

Note:

Indemnity payments are always added.

$.

The total here would include the sum of(a) Goods acquired locally for resale
$..
(b) Goods and services acquired locally for
use in the business

$..
(c) Fixed Assets acquired locally for the
business:
(i) Motor vehicle

$..
(ii) Building

$..
(iii) Plant and Machinery
$..
(iv) Other

$..
__________
Total to be shown in Box 7

$
__________

Note: The value of imported goods is not to be included

in the total to be shown in Box 7. Only the VAT
paid to the Customs and Excise Division.

Zero-rated
supplies
included
above
VAT on
commercial
supplies
received this
period

Box 8
Show here the total of any zero-rated supplies
included in Box 7. Write NIL if there is none

$..

Box 9
Show here the VAT charged on supplies made
to you during the period.
Total to be shown in Box 9:
15% x (Box 7 Box 8)

$..

Note: If the figure in this box is incorrect, the processing

Of your return will be unduly delayed.

Note: Do not use this Box to set off a refund due to you from a previous period
against the VAT on supplies made for this period.
Total Output
Tax

Box 7 Show the value exclusive of VAT of all

commercial supplies (zero-rated and standard rated)
received during the period for which you have been
given tax invoices.

VAT on
Imports

Box 10
Show here the VAT paid on imported goods
entered by you during the period. Exclude the
VAT on any goods imported for non-business use.
Write NIL if no VAT on imports was paid
during the period.
$..

-36-

-35-

Tax
Adjustments

Box 12
Show the sum of Box 10 and Box 11.
If you do not make exempt supplies Box 12 will
always be equal to the amount shown in Box 10.
If you make both exempt and commercial supplies
the amount entered in Box 11 is to be deducted
from the amount shown in Box 10. Where the
figure in Box 11 is greater than that in Box 10
the difference is to be shown in Box 12 in
brackets ( ).
$...

Box 11 is to be used only where a person makes

both commercial and exempt supplies. If you DO
NOT MAKE EXEMPT SUPPLIES, YOU SHOULD
WRITE NIL IN THIS BOX.
An adjustment in Box 11
represents input tax incurred on commercial
supplies acquired to make exempt supplies and
is to be deducted from the input tax reported
in Boxes 9 and 10.
Total to be shown in Box 11: (E plus F):

Box B
Show the sum of Box 9 plus/minus
Box 12. If you do not make exempt supplies
Box B will always equal Box 9 plus Box 12.
Where you make exempt and commercial supplies
and the figure in Box 12 is in brackets ( ), the
amount to be shown in Box B is Box 9 minus
Box 12. Where the figure in Box 12 is not in
brackets, the amount to be shown in Box B
is Box 9 plus Box 12.
$...

The total in E will reflect all the input tax

(VAT) included in Boxes 9 + 10 that relate to
supplies required solely for the purposes of
making exempt supplies.
Nature of Supply

Value of Supply

Tax Thereon

(1).. $ $.
(2).. $ $.
(3).. $ $.
Total (E)

$.

By applying the undermentioned formula the total

in F will reflect the portion of common input tax
(VAT relating to supplies required to make both
commercial and exempt supplies) reported in Boxes
9 and 10 that has been ascribed to the making of
exempt supplies.
Total (F) = Value of Exempt
Supplies reported X
In Box 4 value
Of total supplies
Reported in Box 3.

Common input tax

i.e., VAT relating
to both commercial
and exempt
supplies as
identified below.

$..
Nature of Supply Value of Supply Tax Thereon
(1).. $... $...
(2).. $ $
(3).. $ $
(4).. $ $
Common Input Tax i.e., VAT relating to
both commercial and exempt supplies.
$...

Box 13
Show here the difference between Box A
and Box B.
VAT Payable

VAT is payable where Box A is greater than

Box B. Delete the Box marked VAT
REFUNDABLE.
If you included in Box 6 any VAT on any
Indemnity payment and
(a) the VAT payable figure in Box 13 is greater
that the VAT withheld by the Insurance
Company, pay to the Board only the
difference.
(b) the VAT payable figure in Box 13 is less
than the VAT withheld by the Insurance
Company, do not make any payment. The
Board will refund you the difference by which
the VAT on the indemnity payment exceeds
the amount shown in Box 13.

$...

-37VAT
Refundable

Declaration

VAT is refundable where Box B is greater

than Box A. Delete the Box marked VAT
PAYABLE. If you included in Box 6 any
VAT on any indemnity payment your refund
would be increased by this amount.
Please complete the declaration and ensure
That it is signed and dated. Failure to do so
Will result in delays in the processing of the
return.
Note: Please note that no adjustments to
either out put or input tax that relate to
a prior period are to be made in this
Return. A request to revise a prior
Period return to adjust for Out put or
Input taxes must be made in writing
Section 39(1)(b) of the VAT Act, 1989.

HOW TO ACCOUNT FOR INDEMNITY PAYMENTS

Where under a contract of insurance, an insurance company makes an indemnity
payment to a registered person and this relates to a loss incurred with respect to
goods or services in the course of any business, then that Insurance Company is
now obligated to withhold and pay over to the VAT Administration Centre,
Board of Inland Revenue an amount which represents the Value Added Tax
element of that indemnity payment.
How to Account on the VAT Return for indemnity payments received from
Insurance Companies.
Show the tax withheld by the Insurance Company in Box 6 of the return only.
(Box A will therefore show the total of Boxes 5 and 6)
Attach to the return a copy of the discharge form issued by the Insurance Company.
NB: DO NOT include in Box 3 the commercial supplies relating to the indemnity payment.
DO NOT include the Value Added Tax withheld by the Insurance Company in the
input section of the return.

-38VAT PAYMENT/REFUNDS
(1) Result in Box 13 VAT Refundable
The Board will increase this refund figure by the Value Added Tax withheld
by the Insurance Company.
(2) Result in Box 13 VAT Payable
(a) Where this figure is less than the Value Added Tax withheld by the Insurance
Company no payment should be made. The Board will refund the amount by
which the Value Added Tax withheld by the Insurance Company exceeds the
Value Added Tax Payable.
(b) Where the VAT Payable figure in Box 13 is greater than the Value Added Tax
withheld by the Insurance company, pay to the Board the difference.

Penalty and Interest on late payment of VAT

Where any amount that a person is required to pay to the Board is not paid by the due
date, the amount outstanding bears a penalty of eight per cent (8%) of the amount
outstanding and interest at the rate of two per cent (2%) per month or part there of.

-39-

-40DELAYS IN PROCESSING VAT RETURNS

The following are some of the reasons that may result in delays in the processing
of VAT Returns and Refunds.
9

Submission of an incomplete VAT Return

~

this includes a return that is unsigned. The registrant or

duly authorized person must sign the declaration on the
VAT Return form.
Duly authorized persons may include a director, proprietor, a
corporate secretary, an accountant or senior officer who holds
managerial responsibility in the organization. If the return is
prepared by a person other than those listed above, that person
must sign his/her name in the signature box provided for the
preparer.

Lack of notification of changes

~

Registrants must inform the VAT Administration of any

changes made to the information given at the time of
registration.
Such changes include: a change in business name, address or
status.

Submission of a mathematical invalid Return

~

Invalid returns include those that contain boxes that are

incomplete or incorrectly completed.
Example the value of zero rated and exempt supplies is shown to
exceed total commercial supply made or received.

please fill out all boxes, indicating nil where applicable.

-41-

-42-

DELAYS IN PROCESSING REFUNDS OF VAT

PENALTIES FOR NON-COMPLIANCE

Submission of an incomplete VAT Return

Changes made to pre-printed information on the VAT Return

Non-filing of outstanding VAT Returns

Non-payment of outstanding VAT liabilities

Including Penalty, Interest and Penal Taxes on any previous
assessments.

Selection of VAT returns for audit

Improper adjustments made to the VAT payable in a particular

period
E.g. Offsetting VAT refundable for one period, from VAT
payable in another period.

REQUIREMENT WHEN A REGISTERED PERSON HAS CEASED TRADING

When a registered person has ceased trading, the registered person must inform the
VAT Administration Centre, - Registration/De-registration Section in writing
indicating, the date the business ceased trading and request that the registered
person be de-registered from VAT.
NOTE: the registered person must continue to submit VAT Returns after he has
ceased trading until he has been informed by the Board that he has ceased
to be registered.
STOCK ON HAND WHEN REGISTERED PERSON CEASES TO CARRY ON
BUSINESS OR CEASES TO BE REGISTERED BUT CONTINUES TO TRADE
Any goods on hand that has not been supplied when a registered person has ceased
trading or ceased to be registered shall be regarded as being a commercial supply
made and output tax charged thereon and payable to the Board.

Offence
Section 20(3): Where a person
who is required to be registered,
but is not registered, makes a
commercial supply.

Penalty on Summary Conviction

$15,000 and imprisonment for one
Year.

2.

Section 23(2): A non-registered

person charging Value Added Tax.

$30,000 and imprisonment for two

years.

3.

Section 27(4): Failure to display a

certificate of registration.

$3,000 and further $100 for each day

offence continues.

4.

Section 27(5): Displaying a

certificate not issued by the Board
of Inland Revenue or after deregistration.

$15,000 and imprisonment for one year.

5.

Section 28(4): Failure to notify the

Board of changes in the status of
the business, or persons liable.

$3,000.

6.

Section 29(6): Failure, on

deregistration, to return certificate
of registration.

$15,000 and imprisonment for one year.

7.

Section 31(5): Failure to file a

return by the due date.

$500.

8.

Section 36(4): Failure to issue a tax

invoice in the manner stipulated.

$3,000.

9.

Section 37(7): Failure to comply

with the provisions relating to
credit and debit notes.

$3,000.

1.

10. Section 38(5): Failure to keep

proper books and records.

$15,000 and imprisonment for one year.

11. Section 52(2): Breach of Secrecy.

$15,000 and imprisonment for one year.

12. Section 56(a): Failure to comply

with a requirement made under the
Act.

$15,000 and imprisonment for one year.

13. Section 56(b): Providing false

information.

$15,000 and imprisonment for one year.

-43-

FURTHER ASSISTANCE OR INFORMATION

If you need further information or assistance in administering VAT in your
business, your nearest VAT Office will be pleased to help you.
VAT Administration Centre
P.O. Box 820
20 St. Vincent Street
Port of Spain
Telephone: 623-4VAT (623-4828)

IRD REGIONAL OFFICES:

San Fernando

52 Cipero Street
San Fernando
Telephone: 657-6057/657-6045
657-6041/657-6024/657-6021/657-6012

Tobago

Sangsters Hill
Milford Road, Scarborough
Telephone: 639-2538

Arima

6, Prince Street
Telephone: 667-5589

OR
Taxpayer Relations Section
Ground Floor
Trinidad House
Edward Street
Port of Spain
Telephone: 868-623-2981 Ext 321 - 326
Fax:
868-623-1130
Website: www.ird.gov.tt