General Sales Tax Law No. 6 of 1994, as amended

What is the general sales tax?

A tax on the sale of goods and services that works much like VAT: a registrant charges tax on sales and deducts the tax paid on purchases.

Rates

• The general rate is 16%.
• Reduced rates and exemptions apply to specific goods and services listed in schedules attached to the law.
• The special sales tax applies to certain goods at set rates or amounts.

Registration

Registration is mandatory once annual sales exceed the threshold set by law; voluntary registration is allowed in some cases.

Tax periods and returns

• The tax period is two months; the Director sets each registrant's period.
• File the return and pay within the legal deadline after each period.
• An amended return can correct a previous one.

Refunds

Registrants may claim refunds of credit balances under set conditions, such as balances outstanding for a given time or arising from exports.

Invoices

A tax invoice is required for every sale, and integration with the national e-invoicing system (JoFotara) is mandatory for covered businesses.