GOVERNMENT Office of the Prime Minister

Decree No. 011/42 of 22 November 2011 on enforcement measures of the Decree-Law No. 10/001 of 20 August 2010 establishing the Tax on Added Value

CHAPTER 1^er- OBJECT CHAPTER II: DU CHAMP D'APPLICATION CHAPTER III: THE GENERGY AND EXIGIBILITY CHAPTER V: DEDUCTIONS CHAPTER VI: REDEVABLE OBLIGATIONS CHAPTER VII: DE LA LIQUIDATION ET DU RECOVEREMENT DE LA TAXE SUR LA VALUE ADDEE CHAPTER VIII: OF THE TAX CREDIT ON ADDITIONAL VALUE CHAPTER IX: PROCEDURES CHAPTER X: INFRACTIONS AND PENALITES CHAPTER XI: TRANSITIONAL PROVISIONS CHAPTER XII: FINAL PROVISIONS

The Prime Minister,

Having regard to the Constitution, as revised by Act No. 11/002 of 20 January 2011, especially in its article 92;

Having regard to Act No. 004/2003 of 13 March 2003 on tax reform, as amended and supplemented to date;

Having regard to Legislative Order No. 10/001 of 20 August 2010 establishing the value added tax;

Having regard to Order No. 08/064 of 26 October 2008 appointing a Prime Minister, Head of Government;

Having regard to Order No. 08/073 of 24 December 2008 concerning the organization and operation of the Government, practical modalities for collaboration between the President of the Republic and the Government and among the members of the Government, especially in its Article 9, paragraphs 1 , 2 and 4;

Having regard to Order No. 08/074 of 24 December 2008 establishing the powers of the Ministries, especially in Article 1 er, will read B, item 9;

Having regard to Order No. 10/063 of 11 September 2011 appointing Deputy Prime Ministers, Ministers and Deputy Ministers;

Considering the necessity;

On a proposal by the Minister of Finance; The Council of Ministers heard,

DECRETE:

CHAPTER 1^er- OBJECT

Article 1:

The purpose of this Order is to set out the enforcement measures of Order No. 10/001 dated 20 August 2010 to establish the value added tax.

Article 2:

The value added tax, T.V.A. in acronym is a general consumer tax that affects all goods and services of all origins, consumed or used in the Democratic Republic of the Congo.

It is a single tax with split payments, collected at each stage of the economic circuit of a product and supported by the final consumer, with upstream tax deductible from the collected tax.

CHAPTER II: DU CHAMP D'APPLICATION

Section 1 re: Taxable transactions

Article 3:

The value-added tax applies to all transactions that fall under an economic activity.

Reducing from economic activity, including production, import, export, service services, distribution, including extractive, agricultural, forestry, agro-industrial, artisanal and professional activities.

Article 4:

Taxable value-added transactions include:

- delivery of tangible property to third parties;

- services to third parties;

- deliveries of goods to themselves;

- self-service services;

- imports.

Subject to deliveries of goods and services to oneself and imports, deliveries of tangible property and services to third parties are taxable to the value-added tax when they are made between two separate persons, for consideration, whether the purpose is profit or not, whether the beneficiary or not result.

The consideration referred to in the preceding paragraph is the agreed price. It can be carried out in cash, by cheque, by bank transfer, by commercial effect, by handing over a property or by the provision of a service.

The counterparty must have a direct connection to the delivered property or service rendered. This link is established when the transaction provides a benefit to the recipient and the counterparty of the transaction is in relation to the benefit received.

Article 5:

Delivery of tangible property and services to third parties remain taxable even when they intervene as a result of a requisition of the public authority.

By requisition of the public authority, the act by which the civil or military authorities require a person, one or more companies, for compensation, the provision of work, the provision of furniture objects or the temporary abandonment of real estate to ensure the operation of public services or the satisfaction of public needs.

Article 6:

By separate persons, one must hear:

- different legal persons, if all parties to the operation are established in the Democratic Republic of the Congo;

- different legal persons or institutions, agencies, offices, branches, if one of the parties is located outside the Democratic Republic of the Congo, whether or not they have separate legal status.

In addition, the momentary association is considered to be a distinct person of its members when dealing with either of them or with all of them.

Paragraph 1^er : Deliveries of tangible property made to third parties

Article 7:

The delivery of tangible property to third parties consists of a transfer of the power to dispose of that property as the owner, even if the transfer is effected by a requisition of the public authority.

This transfer is effective even if there is no material transfer of the property.

Article 8:

In the event of the sale of a property concluded under resolute condition, the transfer of the right to dispose of that property shall be effected upon the conclusion of the contract.

Article 9:

When the sale of a property is concluded under suspensive condition, the transfer of the right to dispose of that property shall take place in the fulfilment of the condition.

Article 10:

Deliveries of tangible property include the sale, exchange of goods, in-house contribution, consumer loan, rental-sale, temporary sale, sales of used items and materials made by professionals, transfers of assets, the provision of water, electricity, gas, thermal energy and similar goods as well as exports of goods and similar transactions.

Article 11:

For the purposes of this Order, in-kind contribution is limited to the in-kind contribution of which the counterparty resides in the granting of social rights or the resumption of liabilities.

Article 12:

Transactions similar to merchandise exports include:

- construction, processing, repair, maintenance, charter operations involving aircraft used by air navigation companies;

- provision of any item or product intended to be incorporated in aircraft used by air navigation companies;

- delivery of goods or objects intended for the refuelling of these aircraft carrying out international connections;

- the construction, processing, repair, maintenance, charter operations on the Congolese and foreign sea vessels of the merchant marine, the vessels assigned to the commercial marine, river or lake fishing, the rescue and assistance vessels, as well as the supply of any item or product intended to be incorporated in these same vessels;

- the operations consisting of the delivery of fishing gears and nets as well as the provision of any item and product intended for vessels practicing marine, river or lake fishing;

- the handling, storing and bonding operations on goods in international transit and on goods exported;

- deliveries of goods carried out under a suspensive tariff regime or before customs clearance subject to their effective export. ;

- the delivery of goods and services for beneficiaries of the legal tax exemption regimes as well as special agreements concluded in accordance with the law.

Article 13:

The construction, processing, repair, maintenance, charter operations for aircraft used by air navigation companies referred to in the first dash of section 12 of this Order are equivalent to the export of goods provided that services to or from abroad represent, in the previous calendar year and in sales, at least 80% of the total amount of services that companies operate.

Article 14:

The operations referred to in the fourth and fifth dash of section 12 of this Order are equivalent to the exports of goods when they are intended for vessels engaged in marine, river or lake fishing beyond the national territory.

Article 15:

By fishing gear and nets, it is necessary to hear products and objects that are likely to attract, bait, catch and store the fish, such as tablecloths of regulatory grids, nylon fishing wires, hooks, insulated body, ralingue and float.

Paragraph 2: Services to third parties

Article 16:

Constitutes services, all transactions other than deliveries of tangible property. They include all activities that fall within the scope of industry lease or business contract.

By leasing industry or business contract, a contract must be heard by which a person with any know-how or capacity in a specific field, undertakes to carry out work for the benefit of another person, for payment of the price, without alienating his or her independence in the material execution of his or her commitments.

Article 17:

Services include rental of movable property, rental of furnished buildings, operations relating to intangible property, leasing operations, transportation of persons and goods, transit and handling, operations carried out in the context of a liberal business, construction of studies, advice, expertise and research, the provision of telecommunications, electronic services provided on-line, operations of intermediary

Article 18:

The term "intangible movable goods" covers the rights of use of industrial assets such as inventions, industrial designs and designs, distinguishing signs, trade and geographical names as well as signs. It also encompasses literary and artistic property as well as intellectual property such as industrial and commercial know-how and secrets.

Transactions relating to intangible personal property relate to the assignment or concession, inter alia:

- rights deriving from an invention patent and protected by the relevant legislation;

- the intangible right that an inventor may possess on a non-patented manufacturing process;

- rights recognized by existing legislation on trademarks and trade marks;

- rights that copyright legislation recognizes to any author of a literary or artistic work;

- the right to publicly expose a person's portrait;

- the right to use a trade name;

- the right to use a sign;

- the right to represent in public a theatrical or other work.

Article 19:

The lease is defined as a financing technique for an asset by which a bank or financial corporation acquires a furniture or immovable property to rent it to a company, the latter having the option, either to return the property to the bank or to the financial company, or to request the renewal of the contract, or to redeem it for a generally low residual value at the end of the contract.

Article 20:

Liberal activity is that where intellectual activity plays the main role, which consists in the personal practice of a science or art and in which there is no link of subordination to a hierarchical superior. This is particularly true of the accounting expert, the artist-paint, the photographer, the writer, the veterinarian, the midwife, the independent nurse and the physiotherapist.

Article 21:

Through intermediary operations, the activities carried out by banks, commercial intermediaries and business agents must be understood.

Transactions carried out by trade intermediaries include activities carried out by brokers and commissioners.

A business agent is the one who normally collects collections for others, who receives a mandate to manage the interests of third parties, who provides legal consultations and enters for their clients with an administration. These include legal advice, tax advice and real estate agents.

Article 22:

Work in a way is an activity that consists of transforming or adapting materials or parts into a finished or semi-finished product at the request of a third party, the owner of the work donor.

Article 23:

Electronic services provided online by resident and non-resident companies include the provision and hosting of computer sites, the provision of software and their updating, the provision of images, texts and information, the provision of databases, the provision of music, films and Games, the provision of digitized books and publications, the provision of distance-learning services, and remote maintenance of programs.

Article 24:

By telecommunication, any transmission, transmission or reception of signs, signals, writings, images, sounds or information of any kind by wire, radio, optical fiber or other electromagnetic systems must be heard.

The provision of telecommunications means any provision including the transmission or delivery of signals or a combination of such functions by telecommunication processes, with the exception of audiovisual communication services broadcast by air or cable.

These include telecommunications supplies, telephone services, telex services, telegraph services, teleconference services, mobile communication services, radio services and car telephone services.

Paragraph 3: Deliveries of goods to themselves

Article 25:

A delivery of goods to oneself means the levies and assignments made, from the property of the enterprise, by the subject-matter to:

- operational requirements, in the event of the production of capital assets or property excluded from the right to deduction;

- needs other than those of the operation, i.e. those of the leaders, its staff or third parties.

Article 26:

The delivery of goods to oneself is realized when the company itself manufactures the goods and delivers them in the state.

It is also realized when the assets acquired by the company and which have been the subject of a value-added tax deduction are assigned to needs other than those of the company.

For the purposes of the preceding paragraph, such assets are covered for the private needs of leaders, personnel or third parties, including the free distribution of goods and the removal of the stock.

Paragraph 4: Self-service services

Article 27:

Self-service services consist of services that are performed by the subject-matter based on the company's means:

- either for the purpose of their business;

- for other needs within the normal scope of their activity.

Article 28:

For the purposes of this Order, there is a provision of self-service services:

- in the event of the use of a property assigned to the enterprise or of benefits made free of charge by the subject for the needs of the enterprise;

- in the event of the use of a property assigned to the enterprise for the private needs of the subject, those of its staff or for purposes other than the enterprise; in case of benefits made free of charge by the subject for his or her private needs, those of his or her staff or for purposes other than the business.

Paragraph 5: Imports

Article 29:

Import means the entry into the Democratic Republic of Congo of a good or service.

The importation of a property is carried out by the only material fact of crossing the border of the Democratic Republic of the Congo, without it being necessary to search whether the person who imports has the quality of subject to the value added tax, or if it has acquired that property as a result of a contract or if it was already the owner of it, or if it is imported for purely private or professional purposes.

The importation of a service is for the service received from abroad by residents on the basis of a commercial contract or any other document acting as a contract.

Section 2: Subjects

Paragraph 1^er: Definition

Article 30:

Is subject to the value-added tax, any natural or legal person, public or private law, who conducts, on a regular or occasional basis, taxable transactions to the value-added tax.

Article 31:

They shall be deemed to act independently, persons who exercise an activity under their own responsibility and enjoy total freedom in the organization and execution of the work carried out by that activity.

No person may be considered subject to the value-added tax for the performance of his or her activity, any person who is bound by a contract of work or any other legal report creating subordination links with respect to the conditions of work, the terms of remuneration and the responsibility of the employer.

Article 32:

An operation is deemed to be carried out as usual, when carried out in a repetitive manner, and on occasional basis, or when it does not have a repetitive character, but that the conditions of its realization leave no doubt as to the subject quality of the person performing it.

Paragraph 2: Legal entities of public law

Article 33:

The State, the Provinces, the Decentralised Territorial Entities and the Public Institutions must be heard by legal entities of public law.

Article 34:

Public legal entities are subject to the value added tax. However, they are not subject to the value-added tax for the activity of their administrative, social, educational, cultural and sporting services, when their non-submissibility does not result in distortions under the conditions of competition.

Article 35:

There is a distortion of competition when public law corporations carry out their activities under the same conditions as private individuals with respect to the public concerned, the prices and the advertising means used and are not subject to the value added tax for the services referred to in section 34 above.

Paragraph 3: Members of the liberal professions

Article 36:

For the purposes of this Decree, it is necessary to hear from members of the liberal professions, all persons who exercise a liberal activity within the framework of legally organized professional orders.

By professional orders, it is necessary to hear bodies responsible for carrying out a public service mission through the regulation and discipline of the profession under State control.

Paragraph 4: Established or domiciled persons outside the Democratic Republic of the Congo

Article 37:

When a value added tax is established or domiciled outside the Democratic Republic of the Congo. a representative residing in the national territory is required.

Article 38:

The designation of the representative is made by a legalized or notarized letter addressed to the Tax Administration.

The designated representative shall be approved by the Administration of Taxes under the conditions set out by Order of the Minister with the Finance in his or her powers.

Article 39:

The representative is in solidarity with the subject, the declaration and payment of the value-added tax and the tax supplements established by the Tax Administration.

Article 40:

The subject to the value-added tax can only designate one representative for all of the operations it carries out in the Democratic Republic of the Congo.

Article 41:

In the absence of a representative's designation, the tax and, where applicable, the penalties are due by the customer on behalf of the subject established or domiciled outside the Democratic Republic of the Congo.

Section 3: The subjugation threshold

Article 42:

Individuals and legal entities are subject to the value-added tax when their annual turnover is equal to or greater than the threshold set out in section 14 of Legislative Order No. 10/001 of 20 August 2010 establishing the value-added tax.

The turnover referred to in the previous paragraph refers to non-tax revenue on value added.

Article 43:

For the purposes of section 42 of this Order, it shall be taken into account, for existing companies, revenues of the previous year and, for new companies, forecast revenues.

Article 44:

Without prejudice to section 42 of this Order, members of the liberal professions are subject to the value-added tax regardless of their turnover.

Article 45:

Imports are subject to the value added tax, regardless of their value.

Section 4: Exemptions

Article 46:

Exemptions to the value added tax provided for in sections 15 to 19 of Legislative Order No. 10/001 of 20 August 2010 establishing the value added tax are limiting. They may not be extended under similarities or analogies between exempt operations and non-exempt operations.

Article 47:

The exemption on the sale and importation of agricultural equipment provided for in Article 15, point 5, of Order-Law No. 10/001 of 20 August 2010 establishing the value-added tax applies only to equipment intended for exclusively agricultural use.

A Joint Order of Ministers with Agriculture and Finance in their responsibilities determines the list of equipment involved.

Article 48:

The exemption from the importation and sale of pharmaceuticals under section 15, point 9, of the Order-Law No. 10/001 of 20 August 2010 establishing the value-added tax applies only to products intended for the prevention and treatment of diseases.

Exemption of pharmaceutical inputs is limited to import and acquisition by companies operating in the pharmaceutical sector.

A Joint Order of Ministers of Health and Finance sets out the list of exempt pharmaceutical inputs.

Article 49:

Subject to reciprocity and according to quotas fixed at the beginning of each year by Joint Order of Ministers with Foreign Affairs and Finance in their responsibilities, are exempted from the value-added tax, goods and services intended for the official use of foreign diplomatic missions and international organizations and whose list is deposited with the Ministry of Foreign Affairs before the end of each year by the Chief of Mission.

Article 50:

Exemptions to the value-added tax result in the loss of the right to deduction from the upstream tax for the exempt transaction.

CHAPTER III: THE GENERGY AND EXIGIBILITY

Article 51:

The fact that the value added tax is the event that gives rise to the tax debt.

It is constituted by:

- delivery of goods for sales of tangible property;

- the execution of services, work or service and work tranches, for services, including work in a manner and real estate;

- the border crossing of the Democratic Republic of the Congo for imports and exports;

- the consumption of goods under suspensive customs regimes;

- the release of goods from the free zone for consumption in the Democratic Republic of the Congo;

- the act of transfer or transfer of property or, in the absence of an act, the entry into enjoyment for real estate transactions carried out by real estate developers;

- the act of transfer, enjoyment or failure to act of transfer, entry into enjoyment, for rental of unappointed land or bare premises carried out by real estate developers;

- the first use or first commission, for the goods or services that the debtor pays to themselves;

the expiry of the periods to which the deposits and encumberments relate, for the delivery of goods, services and real property work resulting in the establishment of debits or successive payments, with the exception of those relating to goods that are the subject of a temperament sale or a rental or sale;

- the payment of the price or a deposit, for other taxable transactions.

Article 52:

The requirement of the value-added tax is the right of the Tax Authority to require the debtor to pay the tax from a given date.

She intervenes:

- when transferring the power to dispose of a property as owner, for deliveries of goods made to third parties;

- in the first use or first commission, for the delivery of goods to oneself;

- at the time of receipt of the price, advances or advances, for services rendered to third parties and real estate work;

- on the date of service delivery, for self-service services;

- at the time of the registration of the declaration of consumerisation in the Democratic Republic of the Congo, for goods and goods, imported directly, placed under one of the suspensive regimes or out of a free zone;

- on the date of expiry of the effect, in the event of a discount of a trade effect;

- at the maturity of interest or rent, for consumer credit or leasing transactions carried out by financial institutions;

- the delivery of products or the collection of pre-financing, if any, for: operations related to perennial crops;

- on the date of transfer or transfer of ownership, for transfers of property of a building.

However, with respect to the rental-sales carried out in the context of social housing, the rental of unappointed land and the bare premises carried out by the real estate developers, the requirement arises on the date of each maturity.

Article 53:

When the contract for the sale of a property is accompanied by a suspensive condition, the generator fact and the enforceability intervene at the time of this condition.

Article 54:

When the contract for the sale of a property is accompanied by a resolute condition, the generator fact and the èxigibility intervene upon the conclusion of the contract.

Article 55:

In the event of a supply made under a subscription contract giving rise to the establishment of discounts or successive cashings proportional to the customer's consumption, the generator fact and the requirement shall be effected upon the expiry of the periods to which these deposits or payments relate. .

Article 56:

For the purposes of this Order, counts are amounts that correspond to consumption or benefits relating to periods already expired in the context of a subscription contract or delivery whose execution is phased over time.

Article 57:

The encumberment refers to the collection of amounts, in any capacity, including advances, advances and balance payments, as a result of the completion of the transaction or the execution of the work.

He intervenes:

- in the event of cash payment;

- on the day on which the cheque is paid, in case of payment by cheque;

- on the date of registration to the supplier's account credit, in the event of payment by transfer, order of payment or by any other means, including electronic means, having a release power in accordance with the applicable legal and regulatory provisions;

-on the date of the expiration of the trade, even if it has been deposited with a financial institution, in case of payment by trade effect.

When the payment is made through a charter company, the cashing coincides with the date of the actual payment of the debtor's debt.

Article 58:

Public works and real estate contractors, as well as service providers who request it and whose services are sometimes accompanied by certain supplies, may be allowed to pay the value-added tax based on the debits by the Director General of Taxes or his delegate in the Province.

The application referred to in the previous paragraph is addressed to the above-mentioned grievor by simple letter.

Article 59:

The decision of the Director General of Taxes or his delegate in the Province shall be taken within 10 days of receipt of the application. The absence of a decision within this time limit is authorized. In this case, the Tax Administration is required to notify the interested party of this implicit decision.

Article 60:

The reference "Authorization to pay the VAT on debits" must be included on all invoices issued by the service provider or contractor for public works or real estate work.

Article 61:

In the event of payment of the value-added tax based on the debits, the exigibility is made by the registration of the amount to the client's account.

Article 62:

The authority to pay the value-added tax from the debits does not exempt the debtor from paying the tax at the time of the encumberment of the price or deposit if the debit is prior to the debit.

Article 63:

The authority to pay the value added tax on debits is revocable on a written request from the taxpayer who wishes to return to the common law regime. This request is addressed to the Director General of Taxes or to his delegate in the Province.

CHAPTER IV: BASE OF IMPULATION AND TALK

Section 1^re: From the tax base

Sub-section 1^re: The general regime

Article 64:

The tax base is made up of all amounts, values, goods or services collected in respect of the transaction, including subsidies as well as any fees, taxes, duties, taxes or levies of any kind thereof; excluding the value added tax itself.

This includes:

1. the increased CIF value of customs duties and, where applicable, consumer duties for imports of goods;

2. FOS value for merchandise exports;

3. the value of the products at the time of their exit from the free zone;

4. all amounts or values, any benefits, goods or services received or receivable by the supplier in exchange for delivery, for deliveries of goods;

5. all amounts or values, benefits, goods or services received or receivable by the provider in return for the benefit and, where applicable, the value of consumable goods for services;

6. the value of the goods received in payment of the goods delivered, increased, if any, of the amount of the relief, for exchanges;

7. the amount of contracts, memoranda or invoices for real estate work;

8. the cost of the goods subject to these deliveries for the delivery of goods to oneself;

9. expenses incurred for their execution, for self-service services

10. the difference between the selling price and the purchase price of each property, for sales made by traders of used goods, works of art, objects of collection or antiques;

11. the amount of rents charged by leasing companies, for leasing operations;

12. the market price, all taxes included, with respect to public markets.

Paragraph 1^er: Elements included in the tax base

Article 65:

The value-added tax base includes the basic cost of the transaction, taxes, taxes and other levies, other miscellaneous fees and payments made in favour of the seller or provider for the purpose of supplementing the price or compensation.

A. Base price

Article 66:

The basic price is the price of goods or services or the value of goods or services received in payment before the incorporation of the other items referred to in section 64 above.

B. Taxes, taxes and other levies

Article 67:

Taxes and taxes include direct and indirect taxes as well as all taxes that constitute operating expenses for the debtor.

C. Miscellaneous fees

Article 68:

Miscellaneous fees include transportation, packaging, handling, storage, stewardship, insurance, mail and commissions.

Article 69:

When a sale is concluded Franco domicile, the transportation costs incurred by the seller are included in the transaction's tax base.

A sale is concluded Franco domicile when the transfer of ownership of the goods operates at the buyer's home and the costs related to the transport are borne by the seller.

Article 70:

When the sale is concluded from the store, the freight charges made by the seller on behalf of the purchaser are added to the price of the goods for the determination of the taxable base, except in two cases below:

- the transport carried out by the seller is charged according to the mode of transport, the quantity of the goods delivered and the distance travelled; in that case, it constitutes a separate and taxable benefit as such;

- the transport is carried out by a third party on the order of the seller and the latter reprints the costs advanced to the carrier on behalf of the buyer.

A sale is concluded from the store if the transfer of property operates at the exit of the goods from the seller store.

Article 71:

Lost packagings invoiced globally with the goods they contain constitute an element of the taxable selling price of these goods.

Lost packagings billed separately are not part of the taxable selling price to the value added tax. In this case, their sale is a separate transaction from that of the goods they contain and taxable as such.

Article 72:

When the registered packagings are not returned to the seller within the agreed period or in use in the profession, they are considered to be sold and subject to the value added tax on the amount of the designation.

However, if the amount of consignation is less than the sale price, the latter is taken into account.

D. Compensation

Article 73:

The allowances are included in the tax base unless they are in the nature of damages.

Indemnities do not have the nature of damages if they pay a service delivery or a delivery of individualized goods.

E. Grants

Article 74:

Grants are included in the taxable basis when they represent the sole counterpart of a taxable transaction or the addition of the price of a taxable transaction.

They agree with monetary aids issued by persons of public or private law to compensate for the insufficiency of a business' operating income.

Article 75:

A grant is considered to be a supplement to the price or the sole consideration of a taxable transaction where it presents the following characteristics:

- the grant is granted to the supplier or provider in relation to its sales or taxable benefits realized for the benefit of its customers;

- it is paid to complete the price requested to the customer or the fee claimed to the user, or to replace it completely.

Article 76:

Donations, receivables and inter-enterprises are subject to the same rules as grants.

Paragraph 2: Special rules on services

Article 77:

Where services rendered include the use of supplies, they are included in the taxable basis of these services.

These supplies agree:

- materials or products essential to the delivery of services and whose incorporation in the repaired object requires a forming, processing or prior adaptation;

- materials or products that disappear with the realization of the service.

Article 78:

Where the services rendered include the use of spare parts, they are not included in the tax base of these services and are imposed separately as the delivery of goods.

By spare parts, we must hear the standardized objects that have a specific role in a set, giving rise to a simple laying operation and which can be removed without damage to the whole.

Paragraph 3: Elements excluded from the Imposition base

Article 79:

Discounts, discounts, discounts, cash deposits and other discounts of agreed prices are not included in the taxable transaction tax base provided that they actually benefit and for their exact amount to the client, that they are on an initial or corrigendum invoice and that they are not the counterpart of any transaction.

Article 80:

Disbursements are not included in the taxable basis to the value added tax provided that:

- intermediaries act under a prior and explicit mandate;

- they report to their constituents and justify to the Tax Administration, the nature and amount of these disbursements;

- they do not count these expenses as their own expenses.

Article 81:

Amounts corresponding to the free distribution of the property in the context of an advertisement or commercial promotion are not included in the taxable basis on the value added tax provided that the amount does not exceed 1% of the turnover of the reporting period.

Article 82:

Indemnities of damages are excluded from the base d: tax on value added tax.

Damage is defined as a sum of compensatory money for the harm suffered by a person because of the inperformance or misrepresentation of an obligation or by the contractor or a third party.

Article 83:

Interests collected are excluded from the value-added tax basis when they have the character of moratorium interest to compensate for damage caused by delay in the execution of a payment.

Article 84:

Without prejudice to the provisions of section 72 of this Order, amounts collected for the purpose of consigning identifiable, recoverable and reusable packagings are excluded from the tax base on value added.

Sub-section 2: Specific regimes

Paragraph 1^er: General provisions

Article 85:

Specific plans for the value-added tax base are provided for the following cases:

- sales of used goods by traders in used goods;

- the intermediary operations carried out by travel agencies and tour operators;

- the intermediary operations of freight forwarders, transport commissioners and customs commissioners.

Paragraph 2: From the special regime of sales of used goods

Article 86:

The basis for the taxation of second-hand property sales by second-hand property dealers is determined in accordance with the provisions of section 64 of this Order.

However, where used property sold has been acquired from non-substantiators, the tax base is constituted by the profit margin realized by the merchant, reduced by the amount of the value added tax associated with the profit margin itself. The latter is equal to the difference between the selling price charged by the merchant and the cost of return.

Article 87:

The taxable basis for the value-added tax of imported used goods is determined in accordance with customs legislation.

Article 88:

By trading in used goods, one must hear the subject matter which, as part of its economic activity, buys or imports, for purposes of resale, used goods.

By used goods, it is necessary to hear goods that have been used and that are likely to be re-used in the state or after repair.

Paragraph 3: From the special regime of operations through travel agencies and tour operators

Article 89:

The intermediary operations of the travel agencies and the organizers of the tourist circuits are subject to the value-added tax on the difference between the total price, all taxes included, paid by the customer and the price, all taxes included, billed to the agency or organizer of tourist tours by the companies that materially execute the services used by the customer.

The tax due by travel agencies and tour operators is calculated "in" on the difference referred to in paragraph 1 above.

However, where the services are rendered to customers by means of operation owned by the agency, the tax base is determined in accordance with the provisions of section 64 of this Order.

Article 90:

For the purpose of this Order, it is necessary to hear from a travel agency any person whose activity consists, either to organize and sell trips or vacations with a package including, in particular, housing, or to sell, as an intermediary, such trips or stays, transport tickets, transportation, accommodation or meals.

Article 91:

Pursuant to section 89 above, the travel agency shall ventilate each movement of funds into its accounts, so as to make it appear distinctly, in addition to the overall sum, the share that relates to taxable transactions and that relating to exempt transactions.

At the end of each month, the taxable basis shall be obtained by deducting the total amount of the taxable transactions, the sum of the expenses related to taxable transactions, reduced from the value added tax.

Paragraph 4: From the special regime of transitory operations, transport commissioners and customs commissioners

Article 92:

The basis for the taxation of transactions carried out by freight forwarders, transport commissioners and customs commissioners is the gross remuneration, including all amounts collected, deducted from the value-added tax and the only disbursements related to the carriage itself and the clearance when justified.

Section 2: Value-added tax rate

Article 93:

The value-added tax rate is 16%. It applies to all taxable transactions, except for exports and similar transactions with a rate of 0%.

CHAPTER V: DEDUCTIONS

Section 1^re: General principles of the right to deduction

Article 94:

The value-added tax that has encumbered upstream the elements of the price of a taxable transaction is deductible from the tax applicable to that transaction for the taxpayers.

Article 95:

Is deductible the value added tax supported upstream by the subject during the purchase or importation of:

- raw materials, intermediate goods and consumables entering the composition of taxable products or which, not entering the finished product, are destroyed or lose their specific qualities during a single manufacturing operation of the same products;

- property intended to be sold under a taxable transaction;

- services entering the cost of deduction transactions;

- movable goods, buildings and services acquired for the purpose of operating under general investment and expenses.

Subjects are authorized to deduct the value-added tax for self-delivery and self-service services.

Section 2: Conditions for the exercise of the right to deduction

Article 96:

The deduction fee is born when the tax becomes payable to the subject.

It is exercised until December 31 of the year following the year in which the tax became payable. Upon expiry of this period, the value-added tax not deducted is acquired permanently from the Public Treasury and cannot be deducted.

The subject matter referred to in paragraph 1^er above means the supplier of goods or service provider.

Article 97:

The deduction is made without delay when goods and services are actually used.

Article 98:

Provide a deduction, all the goods that have been provided and the services that have been rendered to the subject matter and that it effectively serves the exercise of the economic activity that gives it the quality of subjection.

However, no deduction fee is open for those who perform exempt transactions or located outside the scope of the value-added tax and for cases of exclusion expressly provided by law.

Article 99:

To be allowed in deduction, the value added tax must include: