General Consumption Tax Act

Link to law: http://www.moj.gov.jm/laws/general-consumption-tax-act-0

GENERAL CONSUMPTION TAX

THE GENERAL CONSUMPTION TAX ACT

REGULATIONS
(under section 63 (1) )

(Made by the Minister on the 8th day of October, 1991) Amdf. L.N. 8m1
L.N. 77/93

27/94 [22nd October, 1991.1 ~ 9 7
16999

3212002
Vide Act

26/2003

1. These Regulations may be cited as the General Consumption Tax citation.
Regulations, 1 99 1.

1A. In these Regulations, reference to the Commissioner in- ~terpretati~n.

(a) regulations 2, 3, 4 and 5 shall be construed as references to the
Commissioner of Tax Administration Services; and

(6) regulations 6, 19 and 24 shall be construed as references to the
Commissioner of Taxpayer Audit and Assessment; and

(c) regulations 7, 10(2), (3), (4) and (3 , 11, 12, 14,20(2), 21,22,23,
25 and 26(2) shall be construed as references to the
Commissioner of Inland Revenue.

2 . 1 ) Subject to paragraph (2), every person who carries on a taxable ~ ~ ~ ~ t i o , , ,
activity shall apply to the Commissioner in the form set out as Form 1 in the zF
Appendix to be registered under the Act.

(2) For the purposes of section 27 (1) (6) of the Act, a person to
whom paragraph (1) applies shall in determining the gross annual value or
the average monthly value, as the case may be, of his supplies take account
of all the supplies made by him (including supplies whch are exempt under
the Act) in the course or furtherance of his taxable activity.

(3) A person who carries on a taxable activity which consists wholly
of the supply of goods or services which are exempt from the payment of tax
under the Act shall be exempt from making an application under paragraph
(1) in respect of that taxable activity.

3.-(1) The Commissioner shall, on receipt of an application for Re&wation.
registration-

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THE GENERAL CONSUMPTION TAXREGULATIONS, 1991

(a) register the applicant as a registered taxpayer w h e r e

A P P ~
Form 2.

Form 3.

(i) pursuant to section 27 (1) (6) of the Act the applicant is
qualified to be so registered; or

(ii) pursuant to subsection (4 ) of that section the applicant
applies to be so registered; or

(65 regster the applicant as a registered person where the gross
yearly value or average monthly value of the applicant's taxable
supplies is less than the amount specified in section 27 (1) (b) of
the Act.

(2) The Commissioner shall issue-

(a) to a person registered as a registered taxpayer a Certificate of
Registration in the form set out as Form 2 in the Appendix; or

(b) to a person registered as a registered person, a Notice of
Registration in the form set out as Form 3 in the Appendix.

(3 ) Where the Commissioner is not satisfied that an applicant ought
to be registered under paragraph (1 ) he shall so inform the applicant giving
his reasons therefor.

(4 ) Where the Commissioner registers any person pursuant to
section 28 ( 2 ) of the Act, he shall issue to that person the Certificate referred
to in paragraph ( 2 ) (a ) or the Notice referred to in paragraph (2) (b), as the
case may require.

- tad
mmer 4 . - ( 1 ) Every registered taxpayer shall display his Certificate of
to display
cati6cate

Registration in a conspicuous place in the premises where he carries on his
taxable activity.

(2 ) Where a registered taxpayer carries on a taxable activity at more
than one premises, the copy of his Certificate of Registration supplied by the
Commissioner shall be displayed in a conspicuous place at each such
premises.

(3 ) A person who, not being a registered taxpayer, displays or causes
to be displayed at his place of business any document purporting to be a
Certificate of Registration commits an offence and is liable on summary
conviction in a Resident Magistrate's Court to a fine not exceeding five
thousand dollars and in default of payment thereof to imprisonment for a
term not exceeding six months. d

)

Record of
Pwa

5. The Commissioner shall, in respect of pemns registered under
r e & t ~ . regulation 3, cause to be kept a record containing the following

particulars-

(a) the name, address and registration number of each person so
registered;

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THE GENERAL CONSUMPTION TAXREGULATIONS. 1991

(b) the type of taxable activity camed on by each such person;
(c) the date of application for registration;
(4 the date on which registration is effective;
(e) the date of and reason for any cancellation or suspension of

registration of any such person.

6.--( 1) For the purposes of the Act, the taxable period shall be- Taxoble
pen&

(a) one calendar month in respect of a registered taxpayer whose
taxable supplies are of a gross annual value of $1,000,000 or
more; or

(6) two calendar months in respect of a registered taxpayer whose
taxable supplies are of a gross annual value of less than
$1,000,000.

(2) Subject to paragraph (4), the Commissioner may if he considers
it appropriate in the circumstances of any particular case, or, as the case may
be, upon application made by a registered taxpayer, notify a registered
t=PY er-

(a) referred to in paragraph (1) (a), that his taxable period shall be
two calendar months; or

(6) referred to in paragraph (1) (b) that his taxable period shall be one
calendar month,

with effect from the date specified by the Commissioner in the notice.

(3) The first taxable period of a registered taxpayer who is registered
at the 22nd October, 199 1 and whose taxable period is-

(a) one calendar month, shall commence on the 22nd October, 1991
and end on the 3 1st October, 199 1;

(b) two calendar months, shall commence on the 22nd October, 1991
and end on such date as the Commissioner shall notify in writing
to the registered taxpayer,

and thereafter his taxable period shall be one or two calendar months, as the
case may be.

(4) Where the gross annual value of the taxable supply of a
registered taxpayer-

(a) referred to in paragraph (1) (a) is reduced to less than $1,000,000;
or

(b) referred to in paragraph (1) (b) is increased to $1,000,000 or
more,

the registered taxpayer shall, within sixty days after the end of the year in
which the reduction or increase occurs, n o t e the Commissioner in writing of
such reduction or increase.

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THE GENERAL CONSUMPTION TAXREGULATIONS, 1991

Return and
payment of
tax.

Appendix.
F m 4A.
Form 4e.
Form 4c.
Fom 4D.
F m 4E.
F i t
Schedule.

Tax
invoice.

(5) Notwithstanding paragraphs 1 (b) and 3 (b) the Commissioner
may, where he considers it expedient so to do, direct a registered taxpayer to
make a return at such time and in respect of such period as may be specified
in the direction.

7. The return required by section 33 of the Act shall be in the form set
out in the Appendix as Form 4A, 4B, 4C, 4D or 4E, as apptopriate, and shall
be furnished to the Commissioner-

(a) by a registered taxpayer referred to in paragraphs 2,3 and 4 of the
First Schedule who accounts for tax on a payments basis, within
fifteen days after the end of his taxable period; or

(b) by every other registered taxpayer, within one month after the end
of his taxable period,

and each such return shall be accompanied by the payment of the amount of
tax, if any, payable by the registered taxpayer in respect of the taxable period.

8 . 1 ) Subject to paragraphs (8) and (9), a tax invoice issued in respect
of a taxable supply shall contain the following information-

(a) the words "Tax Invoice" stated at the top thereof;

(b) the name, address and registration number of the registered
taxpayer issuing the tax invoice;

(c) the serialized number of the tax invoice;

(4 the date on which the taxable supply is made;
(e) the name and address of the registered taxpayer to whom the

taxable supply is made;

V) the quantity and description of the taxable supply;

(g) the total amount of the consideration for the taxable supply;
(h) the rate of tax and the amount of tax payable;
(i) the total amount of the consideration and the tax applicable to the

taxable supply.

(2) A tax invoice shall not be issued in respect of prescribed goods
unless such goods are supplied to a registered laxpayer wholly or mainly for
the purpose of manufacturing taxable supplies.

(3) A registered taxpayer who makes a taxable supply to another
registered taxpayer shall issue to that other taxpayer, not later than seven
days of such supply, the original of the tax invoice.

(4) A registered taxpayer shall issue only one tax invoice in
respect of each supply and shall not issue any other invoice in respect
thereof.

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THE GENERAL C O ~ ~ S U M P T I O N TAX REGULATIONS, 1991

(5) Where a tax invoice is lost, destroyed or defaced, the
registered taxpayer to whom it was issued may obtain a copy from
the registered taxpayer who issued it, so, however, that the copy
shall be marked "COPY" at the top thereof and shall be signed by
the registered taxpayer who issued it.

(6) Every registered taxpayer-
(a) who issues a tax invoice shall retain a copy thereof; or

(b) who receives a tax invoice shall. subject to paragraph (4).
retain it.

for inspection by an authorized person.

(7) Where a registered taxpayer uses for his personal use or
for any other business carried on by him, any goods which form part
of the stock of his taxable activity, he shall prepare a document con-
taining the information specified in paragraph ( 1 ) and shall retain it
in his records and shall mark across the face thereof the words
"PERSONAL USE.

(8) The following particulars shall be omitted from a tax
invoice issued in respect of the supply of telewmmunication services,
that is to say-

(a) the words "TAX INVOICE";
(b) the registration number of the registered taxpayer; and
(c) the serialized number of the tax invoice.

(9) A tax invoice issued by a reMstered taxpayer who cames
Scsond on a taxable activity specified in Part II of the Second Schedule s h d mheduh.

not contain the particulars specified in sub-paragraphs (h) and ( i ) of
paragraph ( 1 ) but shall indicate that the consideration for the supply
to which the invoice relates is inclusive of tax.

(10) Where a taxable supply is made by an insurer pursuant to
a contract of insurance. the receipt for payment of such supply issued
by a broker or insurer, as the case may be, shall be deemed to be the
tax invoice and the particulars specified in paragraph (1) shall be
shown on the receipt.

( I 1 ) A tax invoice shall not be issued in respect of a payment
by way of reimbursement, recovery or otherwise (referred to in section
18 (4) of the Act) made to a registered taxpayer.

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THE GENERAL CONSUMPTION TAX R EGVUTIONS, 1991

Proceduru
where re-
gistered
laxpayer
N P P ~ ~ S
person
other than
regirtercd
taxpayer.

Second
Schedule.

9.41) Subject to paragraphs (2) and (3). where a registered tax-
payer makes a taxable supply to a person who is not a registered
taxpayer, the registered taxpayer shall indicate the consideration for
the taxable supply separately from the amount of tax charged by
any of the following methods-

(a) issuing a receipt showing the consideration and the tax pay.
able thereon; or

(b) aftixing to the taxable supply the consideration therefor and
the tax payable thereon.

(2) Whm a registered taxpayer who supplies .groceries, dry
goods or raw foodstuff is unable to mmply with the requirements
specified in paragraph (1). he shall-

(a) identify by a red tag or mark, any goods which are zero-
rated or exempt from tax or any prescribed goods and shall
indicate that no tax is chargeable by that taxpayer on such
goods; and

(b) display in a conspicuous manner in his place of businas
in respect of other goods-

(i) a sign indicating that the price includes tax at the
rate of ten per cent; and

(ii) a list of prices and the amount of tax applicable to
each price shown on the list.

(3) A registered taxpayer who carries on a taxable activity
specified in Part I1 of the Second Schedule shall, in making a taxable
supply to that person who is not a registered taxpayer, issue a receipt
to that person stating that the consideration for the supply is inchive
of tax.

10.-41) Subject to paragraph (2). every registered taxpayer shall
account for tax on an invoice basis, that is to say, account for the
total amount of tax shown on each invoice. receipt or other docu-
ment-

(a) issued by him in respect of each taxable supply made by
him;

(b) issued to him by another registered taxpayer in respect of
each taxahle supply made to him by that taxpayer; and

(c) issued to him by the Commissioner d Customs.
during a taxable period.

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THE GENERAL CONSUMPTION TAX REGULATIONS, 1991

(2) The Commissioner may, on an application made to him
by a registered taxpayer who falls within the categories specified in Pint
the First Schedule, permit that taxpayer to account for tax on a pay- schedule.
ments basis. that is to say, account for the total amount of tax received
by him or paid by him during a taxable period in respect of taxable
supplies made by or to him.

(3) Where the gross annual value of the taxable supplies of a
registered taxpayer referred to in paragraph 1 of the First Schedule is
increased to $1.000,000 or more that taxpayer shall, within sixty days
after the end of the year in which the increase occurs, give written
no.tice thereof to the Commissioner who shall direct that taxpayer
in writing to accpunt for tax in accordance with paragraph (1) from
such date as the Commissioner shall specify in the direction.

(4) A registered taxpayer may, where he is desirous of changing
the basis on which he accounts for tax, apply in writing to the Com-
missioner for approval to effect such change.

(5) Where the Commissioner gives approval under paragraph
(4) the registered taxpayer shall furnish a return in such form as may
be approved by the Commissioner stating the tax payable, if any.
in respect of the change, and shall pay the tax not later than the end
of the taxable period in which the change takes place.

11.-41) Subject to this regulation, output tax in respect of each zt%
taxable supply made during a taxable period shall be calculated by o u t m (rr.
multiplying the consideration for the supply by the rate of tax appli-
cable thereto.

(2) Where the consideration for a taxable supply includes tax.
the calculation of output tax shall be in accordance with the following
formula that is to say-

O T = C x R

(R + 100).
(3) A registered taxpayer whose gross annual taxable supplies

are less than $1.000.000 may apply in writing to the Commissioner
for permission to calculate output tax in accordance with the formula
specified in paragraph (a). (b) or (c), as follows-

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Calcula-
tion of net
tax payable
by certain
registered
taxpayen.
Second
Schedule.

THE GENERAL CONSUMPTION T.4.Y REGULATIONS. 1991

(a) where zero-rated supplies are at least seventy-live per cent
of his total supplies-

OT = CPT x (100 + M) x R; or
100

(6) where taxable supplies are subject to tax at the rate d tea
per cent are at least seventy-five per cent of his total
supplies-

OT = (TS - (CPZ x 100 + M) ) x R

(c) where the amount of zero-rated supplies is equal to the
amount of other taxable supplies not being prescribed
goods-

OT = CPT x C x R

(CPT + CPZ) (100 + R).
(4) For the purposes of paragraphs (2) and (3)-

"C" means consideration including tax;
"CPT" means the total cost (including tax) of the taxable supplies

(other than zero-rated supplies and prescribed goods)
purchased by the registered taxpayer;

"CPZ" means the total cost (including tax) of zero-rated supplies
puxhased by the registered taxpayer;

"M" means the mark-up percentage;
"OT" means output tax;
"R" means the rate of tax applicable to taxable supplies;
"TS'means consideration for total supplies including tax.

(5) For the purposes of this regulation, consideration for the
supplies made in a bar, canteen, club, hotel, restaurant or similar
establishment or by a catering service shall not include any gratuities
paid to employees.

1 2 4 1 ) A registered taxpayer-

(a) whose gross annual taxable supplies is less than $500.000 in
value and who carries out a taxable activity specified in
the first column of Part I of the Second Schedule may apply
in writing to the Commissioner for permission to calculate

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THE GENERAL CONSUMPTION TAX REGULATIONS, 1991

the net tax payable by multiplying his gross sales (including
tax) by the appropriate percentage specified in the second
column of that part of the Second Schedule; or Saond

Schedule.
(b) who carries on a taxable activity specified in Part 11 of the

Second Schedule. may calculate the net tax payable by him
in accordance with the following formula, that is to say-

NT = OT - (1T +STC + SABC).
(2) For the purposes of paragraph (1) (b)-

"IT" means input tax;
"NT" means net tax;

"OT" means output tax calculated by multiplying the net tax-
able sales by 12.5 ;

"SABC" means the special alcoholic beverages credit specified
in regulation 14 (5) (6);

"STC" means a special tax credit of 5.2 per cent of NTS - NTR.
(3) In the definition of "STC" in paragraph (2)-

"NTR" means non-tourism revenue, that is to say, revenue de-
rived from activities other than tourist accommodation or a
tourism enterprise, as defined in section 2 of the Tourist Board
Act;

"NTS" means net taxable sales calculated by deducting from the
gross value of sales (inclusive of tax) the value of exempt
supplies, zero-rated supplies, overseas commissions for services
rendered overseas by travel agents and tour operators, transfers
between airports and hotels and gratuities paid to employees
for the taxable period.

13. Tax shall not be payable on a taxable supply made to a !ty2;
registered taxpayer referred to in regulation 12 (1) (b), being a supply certain

contracts of
made pursuant to a contract of insurance which is certified by the w~a.
Superintendent of Insurance as being unavailable in Jamaica.

14.--(I) Subject to paragraphs (2). (3). (4). (5). (6) and (64. a regis- TU
tered taxpayer shall, in respect of a taxable period, be entitled to claim as
a credit any input tax payable by him during that period and any other
amounts specified in this regulation.

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THE GENERAL CONSUMPTION TAX REGULATIONS, 1991

(2) For the purposes of paragraph (I), the input tax in relation
to which a credit may be claimed shall be the sum of-

(a) any amount stated as tax on a tax invoice issued to the
registered taxpayer in respect of taxable suppses made to
him during a taxable period; and

(6) any input tax paid by that registered taxpayer on the importa-
tion of taxable supplies into Jamaica.

being supplies used by the registered taxpayer in carrying out his tax-
able activity.

(3) Subject to paragraphs (4) and (5). where a regstered tax-
payer makes taxable supplies and exempt supplies, he shall be entitled
to claim as a credit-

(a) in respect of the taxable supplies, aIl of the input tax paid
or payable in respect thereof;

(b) in respect of the exempt supplies, all of the input tax paid
or payable in respect thereof, if and only if the exempt supplies
are not more than 5 per cent of the value of the total supplie,
or $48.000, whichever is less.

(4) Where the taxpayer is unable to identify the input tax paid
or payable in respect of the supplies referred to in paragraph (3). he
shall be entitled to claim as a credit, such proportion of the input tax
as is attributable to the total taxable supplies.

(5) A registered taxpayer shall be entitled to claim as a Ear
credit-

(a) 50% of input tax which he is charged in relation to taxable
supplies made to him for the purposes of his taxable activities
as follows-

(i) subject to paragraph (5~). services rendered in a bar,
canteen, club, restaurant or other similar establishment
or in a catering service;

(ii) services incidental to the pravision of entertainment; or

(iii) expenses incurred in respect of motor vehicles men-
tioned in subparagraph (b) (i); or

(iv) the leasing of any such motor vehicle for the purpose of
his taxable activity:

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THE GENERAL CONSUMPTION TAX REGULATIONS, 1991

(b) subject to paragraphs (6) and (6~)-
(i)

(ii)

(iii)

6.5% of the cost inclusive of tax (not exceeding an
amount in Jamaican dollars equivalent to US35.000
calculated at the rate of exchange that was applicable
on the date that the customs duty was paid) of any
motor vehicle used for the purposes of his taxable
activity, being a motor vehicle described in section 11
(1) (c) of the Road Traffic Act, including any motor
vehicle of the trpe sold under the brand name or de-
scription of Station Waggon. Estate Car, Range Rover.
Jeep or Pathfinder or any other vehicle which, in the
opinion of the Commissioner, is of a construction
similar to such type, and buses which have less than
ten seats including the driver's seat; or
an amount equivalent to the tax paid in respect of
any other motor vehicle not referred to in sub-paragraph
(i), used for the purposes of his taxable activity. where
the rate of tax in respect of that vehicle does not
exceed 15%; or

13% of the cost, inclusive of tax, of any motor vehicle
referred to in sub-paragraph (ii) where the rate of tax
exceeds 15%;

(c) [Deleted by L.N. 27/1994.]
(6) a special alwholic beverages credit (SABC) being 333% of

the general consumption tax paid by him in acquiring taxable
supplies (being spirits, beer. wine and alcoholic beverages
produced by fermentation and cordials and liqueurs) for the
purpose of carrying out his taxable activity specified in Part I1
of the Second Schedule. secoad

Schsdul..
( 5 ~ ) A registered taxpayer whose taxable activity is specified in

Part I1 of the Second Schedule shall be entitled to cla& as a tax credit
5.9% of any expenses incurred by him in utilizing. for the purpose of
carrying out that taxable activity, any services provided to him by
another registered taxpayer in the operation by that other registered tax-
payer, of any taxable activity so specified.

( 5 ~ ) A registered taxpayer whose taxable activity is not one speci-
fied in Part I1 of the Second Schedule shall be entitled to claim as a
tax credit 2.95% of any expenses incurred by him in utilizing, for the
purpose of carrying out that taxable activity, any services provided to
him by another registered taxpayer in the operation by that other
registered taxpayer, of any taxable activity so specified.

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THE GENERAL CONSUMPTION TAX REGULATIONS, 1991

(6) A registered taxpayer whose taxable activity is the provision
of U-drive services shall be entitled to claim as a credit in equal instal-
ments over a period of twenty-four months, commencing at the end of
the month in which he acquires any motor vehicle exclusively for the
provision of such services, all the input tax payable in respect of any
such motor vehicle if-

(a) he is licensed under the Tourist Board Act to operate a
tourism enterprise as defined in paragraph (a) of the definition
of "tourism enterprise" in section 2 of that Act; and

(b) the m r mhide is mbjeut to RJI@.J far periods not exceeding
forty-five days for any one rental or for such longer period
as the Commissioner may allow.

( 6 ~ ) A registered taxpayer whose taxable activity-
(a) is the leasing of motor vehides of which he is the lessor; or
(b) is the provision of U-Drive services other than those referred

to in paragraph (6).
shall be entitled to claim as a credit an amount calculated in accordance
with the provisions of sub-paragraph (b) (ii) or (b) (iii) of paragraph (5).
as the case may be, so, however, that in respect of any motor vehicle
specified in sub-paragraph (b) (i) of that paragraph the maximum cost
against which the credit may be calculated shall not exceed the amount
specified in that sub-paragraph.

( 6 ~ ) A registered taxpayer to whom paragraph (6) applies who
before the end of the period of twenty-four months £rm the date of
acquisition of any motor vehicle-

(a) ceases to be licensed under the Tourist Board Act to operate a
tourism enterprise as mentioned in paragraph (6) (a); or

(b) disposes of such motor vehicle without the approval of the
Commissioner; or

(c) uses such motor vehicle otherwise than for the purposes of the
tourism enterprise referred to in paragraph (6) (a); or

(d) rents such motor vehicle for any one rental for any period in
excess of forty-five days without the approval of the Commis-
sioner.

shall, in respect of that motor vehicle--
(e) repay the amount of credit claimed to the date of cessation of

disposal without the approval of the Commissioner; or

(f) in accordanoe with paragraph (6c). repay the amount of credit
claimed to the date of usage otherwise than for the tourism

m e inclusion of this page is authorized by L.N. 54IM001

THE GENERAL CONSUMPTION TAXREGULATIONS, 1991 14.01

enterprise or rental in excess of forty-five days without the
approval of the Commissioner.

(6c) The amount repayable under sub-paragraph V) of paragraph
( 6 ~ ) shall be the difference between the total credit claimed to the date
aforesaid and the credit that could have been claimed under paragraph (5) (b)
(ii) and (iii) had that paragraph been applicable.

( 6 ~ ) The amount of credit required to be repaid pursuant to
paragraph (6B) shall become due and payable upon the occurrence of any of
the events specified in sub-paragraphs (a), (b), (c) or (4 of that paragraph.

( 6 ~ ) A registered taxpayer to whom paragraph (6) applies shall not,
unless the Commissioner so approves, be entitled, during the period of
twenty-four months aforesaid, to claim a refund of input tax paid in respect of
any motor vehicle in lieu of a credit of such tax

(7) A registered taxpayer shall not be entitled to claim as a tax credit
any input tax which he is charged-

(a) in respect of any materials used in the construction of or repairs to
any premises in relation to his taxable activity; or

(b) in respect of any goods or services which he supplies to an
employee, contractee or partner free of charge or at a price which
is less than the open market value:

Provided that-

(i) sub-paragraph (a) shall not apply to any taxable activity specified
in Part I1 of the Second Schedule; Second Schedule.

(ii) sub-paragraph (b) shall not apply where goods or services are
supplied to a canteen operated by a registered taxpayer referred to
in paragraph ( 5 ~ ) for his employees.

(8) Where a registered taxpayer charges no output tax during a
taxable period but is charged input tax during that period-

(a) he may apply to the Commissioner for a refund of the input tax;
or

(b) he may carry forward the amount of input tax as a credit to a
subsequent taxable period.

(9) Where in any taxable period a registered taxpayer is charged
input tax which is in excess of the amount of output tax that is charged by
him for that period he may apply to the Commissioner for a refund of the
excess or he may carry forward the amount of excess as a credit to a
subsequent taxable period.

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14.02 THE GENERAL CONSUMPTION TAX REGULATIONS, 1991

(10) A registered taxpayer who acquires machinery, not being a
motor vehicle as defined in section 1 l(1) of the Road T d c Act, or
equipment wholly or mainly for the purpose of making taxable supplies shall
be entitled to claim as a credit-

(a) at the end of the taxable period in which such input tax is charged
all of the input tax if-

(i) the consideration for such machinery or equipment is
$100,000 or less;

(ii) the machinery or equipment is approved under the
Modernization of Industry Programme for his business;
or

(iii) the value of the goods that he exports is at least 25% of
the value of the goods he manufactures or an amount
equivalent in Jamaican dollars to US$5,000,000, as the
case may be; or

(6) over a period of twenty-four months the input tax charged on
such machinery or equipment.

(1 1) Where a person is registered as a registered taxpayer after the
22nd of October, 1991, and at the time of registdon he has stock-in-trade on
which input tax has been charged he may, in making a return in respect of a
taxable period, take account of any such input tax if the inventory of the
stock-in-trade is audited by a registered public accountant who certifies the
amount of input tax so charged.

(12) A registered taxpayer who supplies goods or s e ~ c e s which
are zero-rated is entitled, on making a return under regulation 7, to
claim as a tax credit any input tax payable by him during a taxable period.

(13) Where a registered taxpayer exports any goods mentioned in
Part I of the Third Schedule to the Act he may claim an input tax credit in
respect of the goods exported.

*iond- 15.-(1) Where a registend taxpayer issues a debit or credit note he shall
todebitanadit
M O ~ . take such debit or credit note into account in making a return in respect of

the taxable period in which it is issued.

(2) A debit or credit note may be issued where-

(a) an invoice issued in respect of a taxable supply-is cancelled;

(b) the considemtion agreed to at the time of supply is altered;

(c) a taxable supply has been returned to the supplier;

(d) the consideration for a taxable supply is incorrectly calculated or
stated on a tax invoice; or

[The lhelncluaion of thk pn$e M authorized by LN. 33AIZ0051

THE GENERAL CONSUMPTION T,4X REGULATIONS. 1991

(e) tax is incorrectly calculated in respect of a taxable supply
which has been made.

(3) A debit or credit note shall state--
(a) at the top thereof, the type of note;
(b) the date of the note;
(c) the name. address and registration number of the registered

taxpayer issuing the note;
( d ) the name afid address of the registered taxpayer to whom

the note is issued;
(e) where appropriate. the number and date of the tax invoice

in respect of which the note is issued;

( f) the amount of tax charged on the tax invoice, the amount
of tax chargeable and the amount of tax being debited or
credited, as the case may be;

(g) a brief explanation of the circumstances which gave rise to
the issuing of the note.

(4) Where a copy of a debit or credit note is issued such note
shall be clearly marked "COPY" at the top thereof.

( 5 ) Every registered taxpayer who issues or receives a debit or
credit note shall retain a copy thereof for inspection by an authorized
person.

16.---(1) Where a registered taxpayer who is required to account for II.~ a&.
tax on an invoice basis under regulation 10 (1)-

(a) has made a taxable supply for consideration in money which
has not been paid in whole or in part and reasonable efforts
have been made to secure payment thereof;

(b) has made a return in relation to the taxable period during
which the supply was made;

(c) has properly accounted fm output tax for that period; and
(6) has written off as a bad debt the whole or part of the con-

sideration which has not been paid.
the registered taxpayer may. in making a return for the taxable period
in which the bad debt is written off, deduct from the total amount
of output tax payable in respect of that period such amount as
represents the tax paid in respect of the bad debt.

(2) The amount which may be deducted by virtue of para-
graph (1) shall be the amount arrived at by applying the following
formula, that is to say-

(The inclusion of this page is authorized by L.N. 4119971

THE GENERAL COArSUMTION TAX REGULATIONS. I991

(a) in respect of a supply other than a supply referred to in
paragraph (bk-

BD x R

(100 + R);
(b) in respect of a supply made under a hire purchase agree

ment-

(BD - HPO x R

(100 + R).
(3) Where any amount in respect of which a deduction has

been made in accordance with paragraph (2) is at any time wholly
or partly recovered by a registered taxpayer, he shall be liable to
pay as output tax the amount amved at by applying the following
formula. that is to say-

BDR x R

(100 + R).
(4) In paragraphs (2) and (3)-

"BD" means bad debt;

"BDR" means amount of bad debt recovered;
"HPC" means hire purchase charge (interest element);

"R" means rate of tax.

Demand
-. 17. A demand notice issued under section 37 of tho Act shall

etate-

(a) the period for which tax has not been paid:

(b) the amount of tax payable;

(c) the rate and amount of penalty on the unpaid amount of
tax:

(d) the rate and amount of surcharge and intmst;

(e) the period within which payment of tax, penalty, surcharge
and interest are to be made.

[The inclusion of this page i s a u t h o h d by L.N. 411997)

THE GENERAL CONSUMPTION TAX REGULATIONS, 1991 17

18. The provisions of paragraphs 1 and 4 of Group 5 of Part I1 :,",Eh
of the First Schedule to the Act shall apply to the following goods :E2 or
and services- xrviccr uported

are zero-
(0) goods-- luted.

(i) which have been entered by the supplier for export
pursuant to the Customs Act and which have been
exported; and

(ii) in respect of which a customs certihte of exportation
has been issued;

(b) aervices which-
(i) are supplied to a person who is not resident in Jamaica;

and

(ii) the benefit of the supply of which is not realized in
Jamaica

19. The Commissioner may. subject to such conditions as he may ~ c P A - ~ .
impose. permit any person to import any goods without payment of
tax thereon, upon being satisfied that such goods arc imported for
temporary use only.

20.41) Where a registered taxpayer- Emtion inscah- -
(a) supplies goods wbich are subject to tax under the Act; and ti"""U.

(b) erects or installs those goods by carrying out construction
operations as defined in the Contractors Levy Act,

the registered taxpayer shall issue an invoice showing separately the
cost of the goods, the tax payable thereon and the cost of the erection
or installation.

(2) For the purpose of substantiating the information shown
on the invoice as the cost of the erection or installation the regis-
tered taxpayer shall keep a record of the following particulars which
shall be furnished to the Commissioner upon request-

(a) gross wages paid in connection with the erection or in-
stallation;

lTbe inclusion of this paee is authowd by L.N. 144119951

THE GENERAL CONSUMPTION TAX REGULATIONS. 1991

Keepin#
records.
etc.

(b) payments to sub-contractors in relation to the erection or
installation;

(c) transportation costs incurred in connection with the erection
or installation;

(d) the cost of any material used in carrying out the erection
or installation;

(e) the cost incurred in renting machinery and equipment used
exclusively in the erection or installation;

(j) the proportion of overhead costs allocable to the erection or
installation and the proportion of profits so allocable;

(g) any other costs relevant to the erection or installation.

of 21.-41) Every registered taxpayer shall keep at his principal place
of business or where applicable, at such branch or division in respect
of which he is permitted to 6le a separate return, such books of
accounts. records and documents in relation to his taxable activity
for a period of not less than six years after the last taxable period to
which they relate, so, however. that the Commissioner may in writing.
authorize the disposal of any such books, records or documents before
the expiration of that period.

(2) Without prejudice to the generality of paragraph (1). the
books of accounts, records and documents referred to in that para-
graph shall include the following-

(a) purchases and sales books;
(b) invoices relating to purchases and sales;

(c) tax invoices;
(6) debit and credit notes:

(e) records of income and expenditure and bank statements;

0 cash register tapes;
(s) import entries;

(h) copies of returns made under the Act;
(if) charts and codes of accounts;

(i) documents endorsed by the Commissioner relating to zero-
rated supplies;

(k) ledger account relating to general consumption tax or special
consumption tax or both:

me inclusion of this page is authorized by L.N. 144/1YYSJ

THE GENERAL CONSUMPTION TAX REGULATIONS, 1991

(I) a description of the accounting system maintained on a
computer, including block diagrams or other procedures
used to ensure the accurate and reliable processing of
information in the computer.

(3) A registered taxpayer shall keep a record of all taxab!e
supplies which are given as gifts or transferred to his personal use
and such record shall contain-

(a) the date the supplies were given or transferred;

(b) a description of and quantity of the supplies; and

(c) the cost of the supplies and the tax which would be payable
thereon.

(4) Where a registered taxpayer exports any taxable supply he
shall keep a record of such export showing the following particulars
where appropriate-

(a) the contract therefor;
(b) a copy of the invoice for the supply;
(c) customs entries relating to the supply;
(d) shipping and warehousing information;

(e) evidence of payment for the supply.

(5) Where the accounts of a registered taxpayer are kept by
means of a computer record, the registered taxpayer shall ensure that-

la) all documents, discs, cards and tapes are retained and all
information stored in such manner as to preserve such
information;

(b) all changes and the dates thereof are noted in chronological
order.

(6) Where a person serves a notice of objection mder section
40 of the Act or lodges an appeal under section 41 of the Act, that
person shall keep all records relating to the objection or appeal until
the objection or appeal is determined.

22. Where the contract price of any taxable supply is affected by ",fzt;
any change in the rate of tax, an adjustment may be made to that ;rz
price by deducting therefrom or adding thereto, as the case may
require, such sum as may be agreed between the parties to the contract
or, in default of such agreement. as may be determined by the Com-
missioner as representing any new expenses incurred or any expenses
saved.

[The inclusion of this page is authorized by L.N. 144119951

20

P r o d o r e
regarding
zero-rated
poods ac-
quired by
certain
persons.

L'SS or
destruction
of unm-
sured
goods.

Servica.

Claim ot
credit for
stock-m-
trade.

THE GENERAL CONSUMPTION TAX REGULATIONS, 1991

23.-(1) Where, pursuant to the Act, any person is entitled to
acquire a taxable supply at a zero rate of tax, the following procedures
shall apply-

the person shall submit a purchase order or import entry
document, as the case may be, in triplicate to the Com-
missioner who shall make an appropriate endorsement there-
on;
a copy of the purchase order shall be retained by the Com-
missioner, the purchaser and, in the case of a supply pur-
chased in Jamaica, the registered taxpayer who makes the
supply;
where the supply is imported, a copy of the import entry
document as endorsed by the Commissioner shall be sub-
mitted to customs.

(2) Where tax has been paid on the supply, the person may
apply to the Commissioner for a refund of the tax and the application
shall be in such form as the Commissioner may approve.

24. Where input tax has been paid or is payable in respect of un-
insured goods and the registered taxpayer fails to account for the
goods or the output tax chakgeable thereon, the Commissioner may,
to the best of his judgment, mak& aa.assessment of the output tax
unless the registered taxpayer proves that,the failure to account for
the goods or the output tax is caused by the 1oss:or destruction of the
goods by providing such evidence or information as, the Commissioner
may require. ': !. ,

25.-(1) A registered Axpayer shall, not later than the 22nd day
of November. 1991. notify the Commissioner in writing of any services
performed before the 22nd Octaber,, 1991 for which an invoice has
not been rendered, stating the name okthe person to whom the services
were supplied, the nature of the services and the .consideration therefor.

(2) A broker or insurer who has, beforb .the 22nd October.
1991, issued a contract of insurance in respect of a period of one year
or less and hag not received paymznt therefor at that d8te:sshall within
thirty days after that date notify the Commissioner in writing of the
accounts receivable in respect thereof.

a 1

26.-41) For the :purposes of section 66 (1). (2) and (3) of the Act
a person who is registered as a ,registered Itrrx'payer6 oni2:he 22nd of
October. 1991, and who has, on the 21st October, 1991, any bused

[Tbt .inclusion of. this page is authorized by L.N. 144119951

THE GENERAL CONSLrMPTION TAXREGULATIONS. 1991 2 1

goods that are stock-in-trade shall be eligible to claim against tax
payable by him under the A@ a credit at the following mte-

(a) in respect of-

(i) stoves (other than kerosene
stoves);

(ii) refrigerators and freezers for
domestic use;

(iii) radios and television sets;

(iv) l y ~ s (other than retreaded)
for motor vehicles;

(v) batteries for motor vehicles;

(vi) air conditioning units;
(vii) carpets;

(viii) washing machines and
dryers for domestic use;

(b) all motor vehicles the rate of additional
stamp duty paid prior
to 22nd October. 1991

(c) all other goods 11%.

(2) A claim under paragraph (1) shall be made in accordance with
directions issued by the Commissioner.

27. A registered taxpayer- Transitional

(a) whose taxable activity consists of the operation of a hotel (other
than an all inclusive hotel); and

(b) who, prior to the 22nd October, 1991, entered into a contract for
the supply of accommodation for any period after that date but
not later than the 15th of December, 1992, being accommodation
in respect of which tax was payable under the Hotels
(Accommodation Tax) Act (in this regulation referred to as the
repealed Act),

shall charge tax in respect of such accommodation at the appropriate rate
which was payable pursuant to the repealed Act, so, however, that the amount
so charged shall not exceed ten per cent of the consideration for such
accommodation.

[The inclusion of this page is authorized by L.N. 33N20051

THE GEXERilL COhWJAfPTIOh' TAY REGULATIONS, 1991

FIRST SCHEDULE (Regulations 7 and 10 (2) and (3))

Categories ofRegistered Taxpayers who
may be permitted to account for tas on

a payments basis

1. Registered taxpayers the gross annual value of whose taxable supplies is less
than $1,000,000.

2. Registerzd taxpayers whose taxable activity consists of the following
services-

(a) the supply of insurance contracts as defined in section 6 (7) of the
Act;

(b) the supply of telephone services.

3. Registered taxpayers who render professional services.

4. Registered taxpayers who rent commercial premises.

SECOND SCHEDULE (Regulations 8,9 , 12 and 14)

Calculation of net tax

PART I

Taxable Activity -
1. Manufacturing.

Percentage -
6.75%

2. Provision of services other than accounting, auditing,
land surveying, legal and quantity surveying. 10.5%

3. Operation of shops selling clothes, shoes, haidware,
by retail. 6.75%

4. Operation of shops where-
(a) twenty-five per cent to fifty per cent of the

stock consists of zero-rated supplies; 5.25%

(b) fifty-one per cent to seventy-four cent of the
stock consists of zero-rated supplies; 3.15%

(c) seventy-five per cent of the stock consists of
zero-rated supplies. 2.25%

PART 11
TaxableActivities to which Regulation 12 (1) (b) applies

The operation of the following activities pursuant to a licence issued under the Tourist
Bourd Act-

(a) hotel;

(b) resort cottage;

(c) other tourist accommodation;

(4 camp site;

(e) water aport;

V) attraction;

(g) tour operator

[The Inclusion of this page is authorized by L.N. 33N20051

THE GENERAL CONSUMPTION TAR REGOLITIONS 1991 2 3

APPLICATION FOR GENERAL CONSUMPTION TAX REGISTWTION
THE GENERAL CCWWMPTICN TAX ACT

awe.
FORM 1

b PLEASE SEE INSTRUCTIONS OVERLEAF BEFORE COMPLETING THIS FORM

- - -- . . - - I l
6. Dale Business AcqulredlCam&nced

Year Mom Day Year Monlh Day
GCT t l l l ~ l ~ l ~ SCT t d-1-

7. Gross IncomeEaler (re idud sales b a l m ~ x p o r s r ) ( a ~ m e n c e m e n l ale o f ~ a d e d A i e r

Horn w m s r mle . -1

24 THE GENERAL CONSUMPTION TAX REGULATl0N.V 1 991

INSTRUCTIONS
PLEISE TYPE OR PRIM THE REQUIRED INFORU*TK)N. DO NOT USE A PENCIL USE BLUE OR BUCK INK PEN ONLY. ALL
MUU) VUUE NAOmR SHOULD BE RWNDED TO THE NEAREST W K K E WMBER. A U SECTIONS MUST BE COMPLETED
TKX (0 AWROPRUTE BOX W E R E REWIRED
SKnON A

THE GENERAL CONSUMPnON U X REGULATIONS, 1991

a ngiturui trapmlcr un&r the Genad Consumption Ikr Act witk cffe~t fmm

ATE

C1-39 ,

COMMISSIONER. GENERALCVNSUMPTIONTAX

NOTICE OF REGISTRATION
(PURSUANT TO THE GENERAL CONSUMPTION TAX ACT) WRM 3

You are hcrsby notilicd that as of

you are a registered person under the General Consumption Tax Act, 1991

NOTE: THISNOTICEOF IIEGLSTRAION DOES NOTAUTHORUEOR EMITLETHE REOISTIUNTTOCOLLECT
~ ~ ~ ~ ~ C O N S U M ~ T ~ O N TAX AND SHOULD BE PRODUCED UPONREQUEST BY AN AUTHORIZED PERSON.
m,.m,

[lhc inelusion of this page is ruthorLcd by L N . 135iZ003 1

THE GENERAL CONSUMPTION TAX REGLILA TIONS. 1991

INSTRUCTIONS

This farm is to be completed by Registered taxpayerr who ate oat usng ths Quick Method

Taxpayers cariymg out Tourlsm Actvitles prescribed in Pan I l of the Second Schedule of the
General Constmpt
Read Entire Law on www.moj.gov.jm