Overview
The current GST regime in Liberia came into force on 1 January 2001 when the Revenue Code of Liberia (2000) was enacted in 2000. The Revenue Code was amended in 2011 and subsequently in 2016. GST in Liberia is administered by the Commissioner-General of the Liberia Revenue Authority.
Release date: May 2023
Scope of GST |
Imposition of goods and services tax (GST) Goods and services tax (GST) is imposed on:
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Person liable for GST
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Recoverability of GST Goods and services tax payable by a registered manufacturer and service provider is recoverable by them from the recipient. |
Taxable supply |
Definition of taxable supply Liberia’s GST regime has a narrow base. |
Goods tax Taxable supply means any supply (other than an exempt supply) of goods by a manufacturer where the manufacture of goods is in Liberia and the supply is made in connection with the carrying on of a business. |
Services tax Taxable services include:
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GST rates Aside from telecommunications services, the general GST rate for all taxable goods and services and on taxable imports is 10%. Telecommunications services attract a surcharge of 5% making the total GST 15%. Goods exported attract 0% GST. |
GST registration |
Compulsory registration Any person who carries on any business of manufacturing or business of providing taxable services has an obligation to register as follows:
Any person having an obligation to register per the above qualification shall apply to be registered within 21 days of becoming obliged to register. |
Voluntary registration Persons supplying taxable goods and services who do not meet the above registration threshold may apply for voluntary GST registration. |
Group registration Not applicable. |
Deregistration Goods tax A registered manufacturer shall apply in writing to the Commissioner-General for cancellation of the person’s registration if they cease to make taxable supplies or if the value of their taxable supplies during the last 12-months does not exceed LIB$3m. Application for deregistration can only be made after the expiration of two years from the date of registration. Services tax A registered services provider shall apply in writing to the Commissioner-General for cancellation of their registration if they cease to be required to be registered under the Tax Code. |
Input GST deduction |
Input tax allowed Not applicable. |
Input tax expressly denied Not applicable. |
Partial exemption Not applicable. |
Change-of-use adjustments Not applicable. |
Preregistration or post-deregistration GST Not applicable. |
Non-residents Not applicable. |
Output GST |
Brief description of output GST The GST rate is applied on the taxable amount of the taxable supply. The taxable amount is generally the consideration paid/payable for the supply. Output GST charged is fully remitted to the tax authority by the due date. An input deduction is not allowed. |
Exempt supplies Exempt supplies are as follows:
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Zero-rated supplies Taxable goods exported attract 0% GST. |
Special rated supplies Telecommunications services attract a surcharge of 5%, making the total GST of 15%. |
Advertising prices Not applicable. |
International trade |
Imports Goods GST applies at a rate of 10% on all imported goods to the extent that the goods will be subject to GST if they were supplied in Liberia, i.e. manufactured in Liberia. Services There is no GST on imported services. |
Exports Goods Export of goods attracts 0% GST. Export of goods means the delivery of goods to, or the making available of the goods at, an address outside Liberia for use or consumption outside Liberia as evidenced by documentary proof. Services Services attract 10% GST except electricity and telecommunications services. Electricity and telecommunications services attract GST if they are received in Liberia. |
Place, time and value of supplies |
Place of supply Goods tax The place of supply for goods:
Services tax The general provision is that a supply of taxable services occurs at the place of business from which the services are provided. For electricity or telecommunications services, a supply of electricity or telecommunications services occurs at the location where the services are received. |
Time of supply Goods tax Generally, time of supply occurs at the earlier of:
Services tax Generally, time of supply occurs at the earlier of:
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Value of supply |
Goods tax In general, the value of the supply of goods is the consideration payable for the supply. The value of supply for hire purchase agreement, finance lease, application of goods for own use, and related-party transactions is the fair market value. No consideration Where the supply is made for no consideration the value of supply is zero except in a related-party transaction. Imported goods The value of the supply for imported goods is the sum of the following:
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Services tax In general, the value of the supply of services is the consideration payable for the supply. The value of supply for related-party transactions is the fair market value. No consideration
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GST compliance |
Accounting basis and tax period The tax period is the calendar month. |
Returns and payment of GST Goods tax Every registered manufacturer shall file a goods tax return for each tax period within 21 days after the end of the period, whether or not any goods tax is due for the period. Goods tax payable is due on the date that the goods tax return for that period is due. In respect of taxable imports, the goods tax payable by an importer in respect of a taxable import is due on the date of arrival of the import at the port of entry, and is collected at the same time and subject to the same conditions as collection of customs duties under the External Tariff Law. Services tax Every registered services provider shall file a services tax return for each tax period within 21 days after the end of the period, whether or not any services tax is due for such period. |
Interest and penalties There is a comprehensive system of penalties and interest payable for:
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Refunds Not applicable. |
Objections and appeals A taxpayer has a right to object a determination (or assessment) made by the tax authority. If the objection is unsuccessful, then the taxpayer may appeal the determination to the Board of Tax Appeals (BoTA). In order to make an appeal to the BoTA, the taxpayer must submit a written request for a hearing stating briefly the basis of the appeal. Within 30 days of making the request, the taxpayer must submit a written protest (objection) containing an explanation of the issues to be heard. The hearing by BoTA must be made within six months after the date of the taxpayer’s request for hearing. If the taxpayer is not satisfied with the decision of the BoTA, they may appeal the decision to the court. |
Time limits An appeal to the Board of Tax Appeals must be made within 30 days after the date of the notice of determination. Appeals to the courts must be made within 30 days after the decision of the Board of Tax Appeals. |
Withholding GST |
Appointment of withholding GST agents Not applicable. |
Withholding GST exemption Not applicable. |
Withholding compliance Not applicable. |
GST refunds |
| There is no cash refund allowable to a registered manufacturer in Liberia. Credit may be allowed for GST overpaid in error under certain circumstances. |
GST records |
Tax invoices Every registered manufacturer or service provider making a taxable supply shall provide the customer with a tax invoice for the supply. The tax invoice shall have the following particulars:
Tax invoices are self-generated by the registered manufacturer or service provider. |
Credit notes and debit notes The law allows for debit notes and credit notes to be issued to the recipient in respect of goods tax in the event the goods are seized by the tax authority if the tax revenue is at risk. In addition to the above, in practice, credit and debit notes may be issued in the following events:
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Additional export documentation Not applicable. |
Record-keeping There are no record-keeping rules for GST compliance. However, a taxpayer is generally required to maintain in Liberia, in the English language, books and records adequate to substantiate the tax due and is required to produce them upon request. Records to be kept generally include GST invoices, bank statements, credit notes, debit notes, customs documentation relating to imports or exports, accounting and other financial information etc. |
Specific GST rules |
Bad debts There are no specific provisions on bad debts. However, if a taxable supply is cancelled (which may occur in the event of bad debts), the taxable person is granted a credit for the GST on the taxable supply cancelled. The credit is allowed in the tax period in which the cancellation occurred. |
Digital economy Not applicable. |
Land and buildings Not applicable. |
Leasing Leases are treated as the supply of goods. Finance leases are valued for GST purposes at the fair market value at the time of the supply. Time of supply is the date on which the lease agreement commences. |
Promotional gifts Generally promotional gifts are valued at no consideration. |
Secondhand goods Not applicable. Goods tax applies only on goods manufactured in Liberia. |
Tourism industry Certain services in the tourism industry are subject to GST. These are:
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Currency conversion Not applicable. |
Transfer of business A supply of goods as part of the transfer of a manufacturing business as a going concern by a registered manufacturer to another registered manufacturer is exempt from GST. A registered manufacturer means any person who is registered or required to be registered for GST in Liberia. |
Warranty repairs Not applicable unless it involves a supply of goods by a registered manufacturer. |
Other indirect taxes |
Import duties Import duty is imposed on all imported goods into the country. Import duty is calculated with reference to the country’s Harmonised Systems Code. |
Excise duties Excise duty is imposed on the production of excisable goods in Liberia, importation of excisable goods into Liberia and the provision of excisable services in Liberia. Specific rates There is a fixed amount based on a specific unit of measurement in the excisable good. Ad valorem Ad valorem is expressed as a percentage of the taxable value. The taxable base for domestic excisable goods is determined as the greater of the ex-factory price or the normal selling price excluding GST. For imported excisable products, the taxable base is determined as the sum of the CIF, import duty, customs service charge, ECOWAS Levy and any other duties except GST. Exports of excisable products are taxed at a zero rate. Excisable goods generally include:
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Returns Every person required to pay excise tax shall file an excise tax return for each tax period within 21 days after the end of the period, whether or not any excise tax is due for the period, except that no additional return need be made for excise duties paid on imported excisable goods. |
Payment of tax |
Domestic goods The payment date is the same as the date of the return. |
Imported goods The excise duty is paid at the customs point together with the custom duties. |
Stamp duty There is no specific law on stamp duty. However, certain documents need to be notarised at the Notary Public to give them legal backing. |
