VAT is a consumption tax levied on taxable suppliers of goods and services in The Gambia and on goods imported. It is not a tax on profits.
- The Standard VAT rate is 15 percent. This rate is applied to all goods and service unless they are specifically exempted.
- Zero percent is applied to exports of goods and services.
All consumers of taxable goods and service in The Gambia are liable to pay VAT. Equally all importers of taxable goods or services are liable to pay VAT.
All taxable supplies by a registered supplier are VAT inclusive. For example, if a trader makes a taxable supply worth D1, 150,000, then the VAT element is D1, 150, 000. This arrived at by dividing the selling price by 115% and multiplying it by 15%, the VAT rate (D, 150, 000/115*15)
VAT is collected at the pint of imports and also by registered businesses when taxable goods and services are sold domestically. Registered business then forward the collected VAT to GRA each month.
- All business with taxable supplies (sales) of D1, 000,000 and over in a tax year are required to compulsorily register and charge VAT.
- In addition, businesses with taxable supplies of D500, 000 and above in a tax year may voluntarily register.
- Businesses who do not meet these thresholds cannot register and cannot charge VAT.
VAT registrants for are required to :
- Keep proper records of their business transaction
- Display their Certificates of VAT Registration at all business premises.
- Issues VAT inclusive invoices and receipts.
- Advertise and quote prices inclusive of VAT.
VAT registrants are able to claim input VAT credits, implying that the VAT paid on any expenditure can be recovered from GRA.
YES. A business that has been registered for 2 years and whose taxable turnover was below D500000 for the previous 12 months can apply for de-registration. However, the registrant is required to have filed regularly within this two-year period. Also, the Commissioner General can cancel a taxpayer’s registration if satisfied that they did not meet their reporting obligations.
VAT registrant are required to file the prescribed VAT return form and make payment for all amounts due monthly. The due date for each month’s filing and payment is the 15th of the following month. Import VAT is payable before the goods are released.
VAT registrant can submit their VAT returns at any GRA office. Payments due should also be made at any GRA office of at any of GRA’s designated partner banks.
- Diplomatic missions and diplomates
- International Organizations
- Non-Governmental Organizations
- VAT registrants who incur more input VAT for three consecutive months are Zero rated e.g. exporters
As long as a business remains registered they are not exempted from monthly filing and payment. Even where there are no business transaction during a given month or no sales, a registrant is required to file a return.
Taxpayers not satisfied with any tax decision can, within 30 days, object to such a decision through the Objection and Appeal process. The process starts at the GRA (Domestic Taxes Department) through to the Tax Tribunal and then to the Court of Appeal.
- Failure to registered for VAT
- Failure to maintain proper records
- Failure to lodge VAT returns or there documents
- Giving misleading information
- Failure to notify the CG for a change in business or address
- Failure to apply to the CG for cancellation of registration
- Failure to provide VAT invoices, credit note, debit note as required by the law
- Failure to recover tax from a person holding money on behalf of a taxpayer
- Improper use of TIN
- Obstruction revenue officers in the performance of their duty.