Seychelles authorities introduce value added tax

24.09.2012

 According to the official announcement of the Ministry of Finance, Trade & Investment (MFTI) of Seychelles from 1st January 2013 the value added tax is introduced on the terrirtory of Seychelles, though its implementation was planned on 1st July 2012. To add, the standard rate of the tax equals 15%.

  It is important to notice that all business with annual turnover surpassing 5 million rupees (5 million dollars in equivalent) will automatically fall into regime of value added tax.

  The Ministry assures that tax introduction won’t influence the increase of prices and in some cases will lead to decrease of process. Detailed measures will be explicated by the Government during the budget presentation for 2013.

On the basis: http://www.src.gov.sc/pages/news/VATEffective.aspx

Expert’s opinion

  As it was announced in one of our previous news Seychelles in August 2012 entered into the World Trade Organization (http://hbcomp.co.uk/about/news_and_mailings/news_jurisdictions/3313/?sphrase_id=555) that naturally required from the state mobilization of economic resources and search of new sources for budgetary recharge.

  It seems that introduction of the value added tax has become the key to the Government of Seychelles on the way of accumulation of monetary funds.

  Generally, the state tries by all means mitigate the introduction of new tax, for instance, through expanding of value added tax goods: meat, bread, vegetables, fruits, etc.

Julia Akhmetova ( Paralegal of Moscow office company Honest & Bright)