VAT Act

Raw materials would be exempt from Value Added Tax (VAT) if the raw materials acquired by the manufacturer is utilised as follows:

  1. the raw materials are used to produce goods and at least 50% of all its products are exported by the manufacturer, to the satisfaction of the Commissioner. This is in accordance with Paragraph 4 (a) of Schedule 1 of the VAT Act, Chapter 81:05.
  2. the raw materials are used to produce exempt goods, to the satisfaction of the Commissioner. This is in accordance with Paragraph 4 (c) of Schedule 1 of the VAT Act, Chapter 81:05.
  3. unprocessed wheat used in the manufacturing process will be exempt from VAT. This is in accordance with Paragraph 4 (k) of Schedule 11 of the VAT Act, Chapter 81:05. 2
  4. the raw materials are used to manufacture animal feed (except pet feed), as determined by the Commissioner. This is in accordance with Paragraph 7 (j) of Schedule 11 of the VAT Act, Chapter 81:05. 3.

Furthermore, Manufacturers do not have to pay VAT on packaging materials they acquire if they utilise the packaging materials:

  1. to package goods they produce and at least 50% of all their products are exported by them, to the satisfaction of the Commissioner. This is in accordance with Paragraph 4 (b) of Schedule 1 of the VAT Act, Chapter 81:05.
  2. to package exempt goods, to the satisfaction of the Commissioner. This is in accordance with Paragraph 4
  3. of Schedule 1 of the VAT Act, Chapter 81:05.