Sales Tax (Low-Value Goods)(Amendment) Regulations 2023

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Sales Tax (Low-Value Goods) (Amendment) Regulations 2023 [P.U. (A) 405/2023], were gazetted on 29 December 2023, and they introduced changes to the  Sales Tax (Low Value Goods) Regulations 2022 [P.U. (A) 408/2022].

These changes pertain to issuing credit notes and debit notes for low-value goods, as well as submitting returns for each taxable period. A new regulation, 6A, has been inserted after regulation 6 in the Sales Tax (Low-Value Goods) Regulations 2022, which requires any registered seller selling low-value goods to issue a credit or debit note under certain circumstances.

These circumstances include a reduction of, or in addition to, the amount of sales tax charged on the low-value goods due to a change in the rate of sales tax or any adjustment in the course of business.

The credit note or debit note issued by the registered seller must contain specific particulars, including:

  • the words “credit note” or “debit note,”
  • the serial number and date of issuance,
  • the name, address, and registration number of the registered seller,
  • the name and address of the person to whom the low-value goods are sold,
  • the reason for issuance,
  • a description sufficient to identify the goods,
  • the total amount excluding sales tax, the rate and amount of sales tax, and
  • the serial number and date of the original invoice.

Any registered seller who contravenes the regulation regarding the issuance of credit or debit notes commits an offence. The manner of furnishing a return has been amended.

A registered seller must furnish a return for each taxable period as required under section 26 of the Act in the form and manner as determined by the Director General.

The regulations will be effective from 1 January 2024. Reference:

Sales Tax (Low-Value Goods)(Amendment) Regulations 2023

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