Minister of Finance releases VAT Modification Order 2020

The Honourable Minister of Finance, Budget and National Planning, Zainab Shamsuna Ahmed (the Minister), has issued a Value Added Tax (VAT) Modification Order (the Order), to provide clarity with regards to the interpretation of goods and services exempt under the VAT Act. The Order was issued in line with Section 38 of the VAT Act, which empowers the Minister to amend, vary or modify the list of goods or services exempt from VAT.

The Order provides clarity with regards to the scope of goods and services listed as tax exempt in the VAT Act. It would be recalled that the recently enacted Finance Act, 2019, sought to provide clarity to the interpretation of some exemptions in the VAT Act. It appears the Minister has now deemed it necessary to provide clarity to the entire scope of tax exemptions.

Please click here to explore the detailed newsletter, here for the extended list of items exempted from VAT and here to download the Order.

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