Minister Of Finance Issues VAT Modification Order

The Honourable Minister of Finance, Budget and National Planning ("the Minister") recently issued the Value Added Tax ("VAT") Act (Modification Order), 2020 ("the Order"), which is effective from 3rd February, 2020. The Order modifies and expands the list of exempted goods and services in the First schedule to the VAT Act and provides clarification on the exempted items already listed in the VAT Act.

Details

Section 38 of the VAT Act ("the Act") empowers the Minister to amend, vary or modify the list set out in the First Schedule to the Act. Pursuant to these provisions, the Minister has issued the Order to modify and expand the list of items to include certain listed items and sets out their Common External Tariff (CET) codes. The Order also provides further clarification on amendments introduced by the Finance Act, 2019 (FA) to the VAT Act.