Ministry of Revenue & Customs : Registering For CT Consumption Tax Tonga

Organization : Ministry of Revenue & Customs
Type of Facility : Registering For CT Consumption Tax
Country: Tonga

Website : revenue.gov.to

Registering For CT Consumption Tax :

Consumption Tax:
Consumption Tax (CT) is a tax on the supply of most goods and services in Tonga. It is charged at a rate of 15%.

Related : Ministry of Revenue & Customs Importing Goods Tonga : www.statusin.org/8536.html

Registering for CT:
If you are conducting a taxable activity and your annual turnover exceeds $100,000 you will need to register for CT.

To register you will need to fill in a CT registration form to get a Tax Identification Number (TIN).

You can find out more about CT by reading the CT Guidelines or arrange an appointment to meet with one of the Revenue Officers in the Compliance and Audit Division.

Completing your CT return:
If you are registered for CT you will need to fill out a CT return by the 28th of every month.

CT obligations:
In order to manage your CT obligations you need to keep good records. Learn about tax invoices and what other records you should keep, charging CT, the different methods of accounting for CT and what happens if you do not file a CT return or if you dispute an assessment.

Companies registered for CT have certain obligations. If you fail to meet these obligations, you could be charged penalties. This overview is an introduction into your obligations when you are CT registered.

Tax invoices:
A tax invoice is the legal document that shows the CT for a transaction. Read the CT Guideline to learn about tax invoices and how they should be written.

Charging CT:
If you are CT registered you will need to charge 15% CT on the goods and services you provide in your business. There are different rates for different types of supplies. Find out about the rates for zero-rated, exempt and special supplies and what happens when you sell goods and services over the Internet.

Proper Records:
When you are registered for CT you must:
** Keep proper records
** Charge CT on all taxable supplies of goods or services
** Give CT invoices to other registered persons
** Account for CT on taxable supplies made and received
** Complete and file CT returns and pay any CT liability by the due date
** Tell the RSD about any changes, such as changes in name and address.

You must keep sufficient records, so that you can readily determine your CT liability. Your records must be kept in the English or Tongan languages.

Such records may include:
** Cash Book
** Bank statements
** Invoices
** CT invoices
** CT Credit and CT Debit notes
** Till tapes
** Stock records
** Motor vehicle log books
** Accounting instruction manuals
** Any other documents that verify transactions or entries in any books of account

How long must I keep my records?:
You must hold these records in the Kingdom of Tonga for 5 years after the end of the CT tax period to which they relate.

How is CT calculated:
Generally, the amount of CT payable for a CT period is the difference between the total output tax charged on taxable sales of goods and services and the total input tax credits allowable.

The CT that is charged to, or collected from customers is known as output tax. Businesses that are not registered for CT must not add CT to the price that they charge their customers.

Businesses that are registered for CT can claim a credit for the CT included in the cost of goods and services purchased or imported for use in their business. The CT credits that can be claimed back are known as input tax credits.

Calculation:
Total Output Tax – Total Input Tax Credits = CT Payable

If your input tax credits are greater than the output tax charged for the period, the credit balance will generally be carried forward, or in some special cases, refunded.