Gambia
Overview
The principal tax law that imposes value added taxes (VAT) in the Gambia is the Income and Value Added Tax Act, 2012. It came into force in January 2013.
Release date: May 2023
Rates and scope |
| VAT is imposed on taxable supply of goods, services and imports. Generally, taxable supplies are supplies other than exempt supplies, made in the Gambia by a VAT-registered person. It also includes import of non-exempt supplies of goods and services by VAT-registered persons. The standard VAT rate in the Gambia is 15% and it applies on all supplies that are not exempt or zero-rated. Zero-rated supplies, as the name suggests, attract VAT at 0%. |
VAT registration |
Compulsory registration A person is required to register for VAT if the total value of qualifying supplies of goods or services made by the person in any 12-month period or shorter, exceeds or is expected to exceed GMD2 million (approximately USD33,000). In determining the value of supplies, the Commissioner-General (C-G) may consider, among other things, the supply of imported services made or to be made to that person. Auctioneers and promoters or public entertainers are required to register for VAT even where they do not meet the turnover threshold mentioned above. |
Voluntary registration A person who does not meet the requirement for compulsory registration is permitted to register for VAT within six months of the end of a 12-month or shorter period in which the total value of supplies made exceeds GMD1 million (approximately USD16,000). |
Application for registration A person who is required to register for VAT must apply to the C-G within 21 days of becoming so required. The information required for the registration will typically include:
Generally, the registration takes effect from the first tax period after the person is required to submit an application for registration. The VAT registration certificate number is usually a five-digit number. |
Deregistration A VAT-registered person who has ceased to make taxable supplies must apply to the C-G within 30 days of the cessation to be deregistered. Likewise, a VAT registered person may apply to be deregistered if the person has been registered for at least 24 months, but the person’s taxable supplies for the preceding 12 months are less than GMD500,000. The C-G may also cancel a person’s VAT registration on the grounds that the person does not comply with the obligation or requirements under the relevant tax laws. |
Output tax |
Calculation of output tax Output VAT is calculated by applying the rate of the tax to the taxable value. |
Exempt supplies Exempt supplies for which no credit is allowed include, but are not limited to:
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Zero-rated supplies Zero-rated supplies include, but are not limited to, the following:
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Input tax |
Input tax allowed A VAT-registered person is allowed an input tax deduction in respect of a taxable supply of goods or services or taxable import of goods to the extent that the goods or services are used in the person’s economic activity. The input tax allowed cannot be claimed until the person has the VAT invoice or the appropriate import documents, whichever applies. |
Non-deductible input tax Input tax deductions are not allowed on the following:
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Partial exemption As indicated above, input tax is allowed only to the extent to which the underlying supply is used in making taxable supplies. Where only a portion of the underlying supplies is used in making taxable supplies, the input tax allowed on the underlying supplies will be apportioned in a ratio of taxable supplies to total supplies made by the person during the tax period. The input tax so allowed is subject to further adjustment at the end of the relevant accounting year. |
Preregistration and post-deregistration VAT A person whose registration is cancelled is treated as having made a taxable supply of any goods or other property on hand at the time of the cancellation to the extent that the person was allowed input tax deduction on those goods and properties. The supply is deemed to be made at fair market value at the time of the cancellation. Additionally, VAT obligations and liabilities accrued prior to the cancellation of a person’s registration still hold after the cancellation. |
International Trade |
Imports The importation of goods, other than exempt goods, is subject to VAT, and the importer of the goods is required to account for the VAT. Similarly, the importation of services, other than exempt services, is subject to VAT and the recipient of the service is required to account for the VAT. VAT payable in respect of imported services is allowed for input VAT deduction insofar as the VAT payable has been accounted for. |
Exports As indicated above, exports of taxable goods and services attract VAT at 0%. |
Place, time and value of supply |
Place of supply Supplies made in the Gambia and which are subject to VAT include, but are not limited to, the following:
Generally, supplies that do not meet the conditions above are considered as supplied outside the Gambia. |
Time of supply Generally, the time of supply of goods or services in the Gambia for VAT purposes is the earlier of the following instances:
With respect to the import of goods, the time of supply is generally the date on which the goods are entered for home consumption under the customs laws of the Gambia. |
Value of supply The value of a supply of goods or services is the consideration for the supply, including zero where the supply was made at no consideration. However, where the supply is made to an associate, the value of the supply will be the higher of the fair market value and the consideration. |
VAT compliance |
Tax period Tax period means one calendar month. |
Returns and payment of VAT VAT returns for a tax period must be filed within 15 days after the end of the tax period, whether or not tax is payable for that period. Payments are due by the same deadline for filing VAT returns. Electronic filing is currently not widely available. |
Interest and penalties Late payment of VAT attracts simple interest at a rate of 5% plus the rediscount rate of the Central Bank of the Gambia and for as long as the tax remains unpaid. Additionally, failure to pay VAT by the due date attracts a penalty of 5% of the VAT unpaid per month (or part of the month) during which the failure continues, up to a maximum of 25% of the unpaid VAT. Failure to file VAT returns attracts a penalty of 5% of the VAT due under the return per month (or part of the month) during which the failure continues, up to a maximum of 25% of the VAT payable under the return. Failure to register for VAT, as required, will attract a penalty of twice the VAT payable from the date the registration was required to the date the person is registered or applies to be registered. |
Refunds Excess VAT paid is carried forward as credit, on a first-in-first-out basis, against the subsequent tax period’s VAT. Refunds are allowed where the credit is not utilised within the third tax period. Refund is also allowed where more than 50% of the taxable supplies of the person in the 12 months preceding the tax period were zero-rated. |
Objections and appeals Taxpayers may object to tax decisions by the Gambia Revenue Authority (GRA) within 30 days of receiving notice of the decision. The timeline for filing a tax objection may be extended by the C-G of the GRA upon a written application by the taxpayer. A taxpayer who is dissatisfied with an objection decision by the GRA may apply to the tax tribunal for a review of the objection decision. Further, a taxpayer who is dissatisfied with the decision of the tax tribunal may appeal the decision at the Court of Appeal. |
VAT records |
Tax invoices VAT-registered persons are required to provide recipients of their supplies with VAT invoices at the time of the supply and the invoices must contain the following details:
VAT-registered persons who supply goods and services at retail may issue a sales receipt instead of a VAT invoice, except where the recipient of the supply specifically requests a VAT invoice. Note that such sales receipts do not provide a basis for claiming input tax deduction. |
Credit notes and debit notes A debit note is issued where the VAT properly chargeable in respect of a supply exceeds the VAT accounted for by the supplier, whereas a credit note is issued where the VAT accounted for by the supplier exceeds the VAT properly chargeable in respect of the supply. The excesses must have been caused by the following:
Both credit notes and debit notes must be prominently denoted as such and must, among other things, bear a description of the circumstances giving rise to their issuance, consideration shown on the VAT invoice, the correct amount of the consideration and the difference between the two amounts and the amount of the VAT that relates to the two amounts. |
Record-keeping Records, accounts and documents must be maintained for six years after the end of the tax period to which they relate. |
Specific VAT rules |
Telecommunication services The following are some VAT rules specific to the provision of telecommunication services:
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Gambling supplies The amount of VAT imposed on gambling supplies is computed on a global basis, rather than an individual gambling supply basis, by applying the tax fraction to the difference between the total amounts wagered and the total winning paid out. Tax fraction in this case is the applicable VAT rate divided by the sum of 100 and the applicable VAT rate. Where a lottery, raffle or similar ticket is sold to an intermediary, the consideration is the intended retail price, whether or not there was a discount, and the acquisition and resale of the ticket by the intermediary are treated as if they were not an acquisition and supply respectively. |
Lay-by sales Lay-by sales largely relate to supplies that are paid for in instalments. For such sales, the VAT is due as and when payment is due under the agreement and the VAT amount is computed as the tax fraction of the payments made. |
Secondhand goods Dealers in secondhand goods who are registered for VAT may, under certain circumstances, be allowed input tax deduction in respect of secondhand goods purchased by the dealer. |
Sale of an economic activity as a going concern Sale of an economic activity as a going concern by a VAT-registered person to another VAT-registered person is treated as if it were not a supply. |
Other indirect tax |
Import duty Import duty ranges from 0% to 35% as specified under the ECOWAS Common External Tariffs. |
Excise tax The specific excise tax and environmental tax on cigarettes, cigars and other tobacco products have been increased. |
Ad-valorem tax on used tyres Companies who are in the business of selling used tyres are now required to charge an ad-valorem tax of 5% on the used tyres. |
Environmental tax on second hand goods A 5% environmental tax has been introduced on second-hand goods/materials which previously did not attract environmental tax. |
AfCFTA considerations The Gambia has ratified the African Continental Free Trade Area (AfCFTA) agreement and completed work on the country’s tariff schedules for both trade in goods and trade in services. |
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