republic of vanuatu

BUSINESS LICENCE (AMENDMENT)
ACT NO. 37 OF 2006

Arrangement of Sections

1. Amendment
2. Commencement

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republic of vanuatu

Assent: 28/12/2006
Commencement: 01/01/2007

BUSINESS LICENCE (AMENDMENT)
ACT NO. 37 OF 2006

An Act to amend the Business Licence Act No. 19 of 1998.

Be it enacted by the President and Parliament as follows-

1	Amendment

The Business Licence Act No. 19 of 1998 is amended as set out in the Schedule.

2	Commencement

This Act commences on 01 January 2007.

_____________________________

schedule

amendments of the Business Licence
Act No. 19 of 1998

1	Section 1

Insert the following definitions in their correct alphabetical positions

" "exempt supply" means a supply of goods or services in Vanuatu which is exempt from tax under paragraph 10(3)(a) and the First Schedule of the Value Added Tax Act No. 12 of 1998.

" "zero-rated supplies" has the same meaning as in the Value Added Tax Act No. 12 of 1998."

2	Section 18A

Delete the section, substitute

"18A	Imposition of turnover tax

(1)	Subject to the provisions of this Act, there will be assessed, levied and paid for the use of the State, a tax known as the turnover tax. 

(2)	Subject to the provisions of this Act, a turnover tax at the rate of 5% is to be payable by a business entity undertaking activities categorised as exempted supplies or zero-rated supplies.

(3)	The turnover tax is payable by a person operating a business specified in classes A, B, C, E, J, K, and L, and categories D2, D3, D5,, F2, F3(a), F3(b), F3(c), F3(d), F4, G1, G2, I1, I2, I3, and I4 of Schedule 1 and is to be paid on a quarterly basis within 14 days after the end of each quarter, by the holder of 	the business licence.

(4)	To avoid doubt, this section applies despite any other provision of this Act.

(5)	In this section: 

"quarter" means a period of 3 months beginning on 1 January, 1 April, 1 July or 1 October of any year."

1	Schedule 1 (Category D5)

Delete 

"5,000 for gross turnover of less than 10 million;
50,000 for gross turnover of 10 million to less than 20 million;
100,000 for gross turnover of 20 million to less than 50 million;
250,000 for gross turnover of 50 million to less than 100 million;
500,000 for gross turnover of 100 million to less than 200 million;
1,000,000 for gross turnover of 200 million or more."

substitute;

"5% applies on zero-rated supplies and exempt supplies;
For taxable supplies-
5,000 for gross turnover of less than 10 million;
50,000 for gross turnover of 10 million to less than 20 million;
100,000 for gross turnover of 20 million to less than 50 million;
250,000 for gross turnover of 50 million to less than 100 million;
500,000 for gross turnover of 100 million to less than 200 million;
1,000,000 for gross turnover of 200 million or more."

2	Schedule 1 (Classes A, B, C, E, and Categories D2, D3, G1, G2, I1, I2,I3, and I4 )

Delete 

"20,000 for gross turnover of less than 10 million;
50,000 for gross turnover of 10 million to less than 20 million;
100,000 for gross turnover of 20 million to less than 50 million;
250,000 for gross turnover of 50 million to less than 100 million;
500,000 for gross turnover of 100 million to less than 200 million;
1,000,000 for gross turnover of 200 million or more" 

substitute:

"5% applies on zero-rated supplies and exempt supplies;
For taxable supplies-
20,000 for gross turnover of less than 10 million;
50,000 for gross turnover of 10 million to less than 20 million;
100,000 for gross turnover of 20 million to less than 50 million;
250,000 for gross turnover of 50 million to less than 100 million;
500,000 for gross turnover of 100 million to less than 200 million;
1,000,000 for gross turnover of 200 million or more."

3	Schedule 1 (Category F2)

Delete "subject to a minimum fee of".

Delete "330,000", substitute;

"5% applies on zero-rated supplies and exempt supplies;
"For taxable supplies-
20,000 for gross turnover of less than 10 million;
50,000 for gross turnover of 10 million to less than 20 million;
100,000 for gross turnover of 20 million to less than 50 million;
250,000 for gross turnover of 50 million to less than 100 million;
500,000 for gross turnover of 100 million to less than 200 million;
1,000,000 for gross turnover of 200 million or more."

4	Schedule 1 (Category F3(a) and F3(b))

Delete	

"20,000 for gross turnover of less than 10 million;
50,000 for gross turnover of 10 million to less than 20 million;
100,000 for gross turnover of 20 million to less than 50 million;
250,000 for gross turnover of 50 million to less than 100 million;
500,000 for gross turnover of 100 million to less than 200 million;
1,000,000 for gross turnover of 200 million or more."

substitute:

"5% applies on zero-rated supplies and exempt supplies;
For taxable supplies-
20,000 for gross turnover of less than 10 million;
50,000 for gross turnover of 10 million to less than 20 million;
100,000 for gross turnover of 20 million to less than 50 million;
250,000 for gross turnover of 50 million to less than 100 million;
500,000 for gross turnover of 100 million to less than 200 million;
1,000,000 for gross turnover of 200 million or more."

5	Schedule 1 (Category F3(c))

Delete

"20,000 for gross turnover of less than 10 million;
50,000 for gross turnover of 10 million to less than 20 million;
100,000 for gross turnover of 20 million to less than 50 million;
250,000 for gross turnover of 50 million to less than 100 million;
500,000 for gross turnover of 100 million to less than 200 million;
1,000,000 for gross turnover of 200 million or more."

substitute:

"5% applies on zero-rated supplies and exempt supplies;
For taxable supplies-
20,000 for gross turnover of less than 10 million;
50,000 for gross turnover of 10 million to less than 20 million;
100,000 for gross turnover of 20 million to less than 50 million;
250,000 for gross turnover of 50 million to less than 100 million;
500,000 for gross turnover of 100 million to less than 200 million;
1,000,000 for gross turnover of 200 million or more."

6	Schedule 1 (Category F3(d)

Delete 	

"20,000 for gross turnover of less than 10 million;
50,000 for gross turnover of 10 million to less than 20 million;
100,000 for gross turnover of 20 million to less than 50 million;
250,000 for gross turnover of 50 million to less than 100 million;
500,000 for gross turnover of 100 million to less than 200 million;
1,000,000 for gross turnover of 200 million or more."

substitute:

"5% applies on zero-rated supplies and exempt supplies;
For taxable supplies-
20,000 for gross turnover of less than 10 million;
50,000 for gross turnover of 10 million to less than 20 million;
100,000 for gross turnover of 20 million to less than 50 million;
250,000 for gross turnover of 50 million to less than 100 million;
500,000 for gross turnover of 100 million to less than 200 million;
1,000,000 for gross turnover of 200 million or more."

7	Schedule 1 (Category F4) 

After "exempt", insert "supplies".

8	Schedule 1 (Classes J, K, and L)

(a)	Insert "plus for each non-citizen principal or partner engaged in the business" under each of the following classes of businesses in schedule 1 as set out 	in the Table below.

TABLE

Classes of Businesses

Class J. ARTIST AND SCULPTORS

Class K. PLANTERS, FARMERS, DAIRY MEN, MARKET AND OTHER GARDENERS, STOCK BREEDERS, VEGETABLE AND FRUIT HAWKERS

Class L. FISHERMEN

(b)	Insert "100,000" corresponding to the classes of businesses in schedule 1 as set out in the Table, being the annual fee for each non-citizen principal or partner engaged in the business.

9	Schedule 1 (Classes J, K, and L)

Delete 	

"50,000 for gross turnover of 10 million to less than 50 million;
250,000 for gross turnover of 50 million to less than 200 million;
1,000,000 for gross turnover of 200 million or more."

substitute:

"5% applies on zero-rated supplies and exempt supplies;
For taxable supplies-
50,000 for gross turnover of 10 million to less than 50 million;
250,000 for gross turnover of 50 million to less than 200 million;
1,000,000 for gross turnover of 200 million or more."