SI 2016-149 - Finance (Amendment of Section 29 and Schedule to Chapter IV of Finance Act) Regulations, 2016

IT is here by notified that the Minister of Finance and Economic Development has, in terms of section 3 of the Finance Act [Chapter 23:04], made the following regulations:-
1. These regulations may be cited as the Finance (Amendment of Section29 and Schedule to Chapter IV of the Finance Act) Regulations, 2016.

Amendment of section 29 of Cap. 23:04
2. Section 29 ("Rates of value added tax") of the Finance Act [Chapter 23:04] is repealed and substituted by the following-
"Rates of value added tax
29. (1) The rate of value added tax shall be as set out in the Schedule.
(2) The rate of value added withholding tax shall be as set out in the Schedule and shall be with effect from 1st November, 2026.

Amendment of Schedule to Chapter IV of Cap. 23:04.
3. The Schedule to ChapteriV of the Finance Act [Chapter 23:04] is amended by the insertion after Part III of the following Part-

"PART IV VALUE ADDED WITHOLDING TAX
In this Part-
"value added withholding tax agent" means an agent designated in terms of paragraph 1."
(1) The Commissioner may designate any person to be a value added withholding tax agent:
Provided that the Commissioner may, at any time, revoke the appointment of a value added withholding tax agent, if he or she deems it appropriate to do so.

(2) Every value added withholding tax agent shall withhold ten per centum of the amount payable to a value added tax registered operator, and shall remit the amount so withheld to
the Commissioner on or before the 15th of the following month or any other date that the Commissioner may fix: Provided that every registered operator shall produce
proof of value added withholding tax deducted by the value added withholding tax agent when submitting a return in terms of section 28.

(3) The Commissioner shall, in determining tax payable in terms of section 15 of the Act, credit the account of the registered operator with the value added withholding tax withheld in terms of paragraph 2.

(4) For the avoidance of doubt, the withholding of tax in terms of paragraph 2 shall not relieve the supplier of taxable supplies of the obligation to account for tax in accordance with the Act and the regulations.

(5) Any value added withholding tax agent who fails to withhold or pay to the Commissioner any amount of value added withholding tax as provided for in paragraph 2, shall be liable for the payment, not later than the date on which payment should have been made if value added withholding tax had been withheld in terms of paragraph 2, of-
(a) the amount of value added withholding tax which he or she failed to withhold or pay to the Commissioner; and
(b) afurtheramountequal to such value added withholding tax.

(6) Any person who contravenes this Part shall be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a period not exceeding twelve months or both such fine and such imprisonment.".

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