Sales Tax

It is the consideration in relation to supply of goods or services, means the total of the following amounts:-

• The amount, in money or kind, paid or payable by any person, directly or indirectly, for the supply, reduced by any price discounts or rebates allowed and accounted for at the time of the supply; and
• Any duty, levy, fee, and charge (other than sales tax imposed under In the Sales  Act) paid or payable on or by reason of the supply;

Goods mean any tangible movable property, other than money;

“Import”, has the meaning given to it in section 146;

“Importer” in relation to an import of goods, means any person who owns, possesses, or has a beneficial interest in the goods at the time of the import;

“manufacture” means the subjection of any physical matter to many process which materially changes it in substance, character, or appearance, and includes assembling, printing, blending, mixing, cutting to size, diluting, bottling, packaging or repackaging of goods, or applying a coating or finishing to goods;

“Manufacturer” means any persons engaged in manufacture;

“money” means any currency issued by the Central Bank of The Gambia as legal tender in The Gambia, but does not include any coins or paper currency that is a collector’s piece or is otherwise of numismatic interest;

“Registered person” means a person who is registered under the Sales Act 2004.

“Sales tax period” means the calendar month;

“Supply”, in relation to goods or services, has the meaning given to it in section 143;

“Taxable import” has the meaning given to it in section 151;

“Taxable services” means-

• Telecommunications services;
• Insurance services;
• Air transport services
• Shipping agency  services
• The provision of board, lodging, meals beverages, or any other facility supplied in carrying in carrying on the business of hotel operator;
• Services provided by a tourist enterprise licensed under The Gambia Tourism Authority Act 2001;
• Services provided by casinos and gaming houses;
• Services provided by builders, lawyers, accountants, laundry and dry cleaners, surveyors, engineers, architects and hairdressers
• Video hire,
• Printing and publishing of commercial newspapers;
• Newspapers advertising; and
• Recording studio services;

“Taxable supply” in relation to goods or services, has the meaning given to it in section 149; and

“Telecommunication services” means-

• Services relating to the transmission, emission, or reception of signals, writing images, sounds, or information of any kind by wire, radio, optical, or other electromagnetic systems;
• The transfer or assignment of the right to use capacity for any transmission, emission, or reception referred to in above
• The provision of access to global information networks

IMPOSITION OF SALES TAX

(1)   Sales tax is imposed on

• A taxable supply of goods
• A taxable supply of services; and
• A taxable import

(2)   The amount of sales tax payable in respect of a taxable supply of goods or services, or taxable import is computed by applying the rate specified in subsection (3) to the value of the taxable import.

(3)   The rate of sales tax is-

• In the case of a taxable supply of goods if the goods are treated as exported under section 148, zero percent;
• In the case of a taxable supply of telecommunication services, eighteen percent;
• In the case of manufacturing and shipping agency services, fifteen percent; and
• In any other case, ten percent.

(4)   The sales tax payable-

• On  a taxable supply of goods or services, is to be accounted for to the Commissioner General by the registered person making the supply; or
• On taxable import, is payable by the importer.

(5)   Notwithstanding anything contained in any law, the sales tax payable by a registered person under point 1 of 4 above is recoverable from the recipient of the supply.

(6)   Notwithstanding anything contained in this section, sales tax shall not be payable on the goods listed in the Fourth Schedule.