The Department of General Sales Tax is responsible for administration of the General Sales Tax pursuant to the General Sales Tax Act # 8 of 2005. Its main functions are revenue collection, registration of agents and auditing of agents’ accounts to safeguard revenueand ensure compliance.
The Government of Belize implemented the General Sales Tax (GST) on 1st of July 2006. GST is referred to as a Tax on consumer spending, collected in stages; that is, at the point of importation and on business transactions when goods change hands or services are performed.
A business that makes or intends to make taxable supplies, that is Sales or gross revenues of $75,000 or more per anum must register for GST. Where the business has been in operation for less than 12 months and the average taxable sales or revenues is $6,250 or more per month over a period of four months, the business is deemed to be eligible for registration, and must register for GST. (download form)
Scope and Coverage
Generally, GST is chargeable on the supply of most goods and services within Belize, the only time this does not apply, is if the goods or services are either exempt or zero rated. Exempt supplies include financial services, some medicines and medical supplies for human use and supplies connected with agriculture. Some zero-rated supplies are rice, flour, bread, eggs, fresh meat, beans, sugar and baby formula as well as locally produced fresh fruits and vegetables. (View GST Exempt List).
When goods are imported or a purchase of a goods or service is done for your business, GST is chargeable on the transaction. GST on purchases is called input tax. This tax can then be recovered from the Department of GST when a GST return is filed.
When a product from your business is sold or in cases in which your business provides services consumers, if those goods or services are liable to GST, the final selling price charged on the good or service needs to incorporate GST. GST on sales is called output tax.
Completing the GST Return (download form)
The GST records simply consists of the tax invoices for each purchase and tax invoices and or tax receipts for each sale made during the tax period (from the first day of the calendar month to the last day of the calendar month). Information from the invoices and tax receipts are recorded in the GST purchase and GST sales journals. After the end of the month, the totals for the month are inserted into the relevant lines of the GST return.
Boxes 100 to 160 of the GST return is where a registered person will include all particulars of his/her output tax.
Boxes 200 to 295 of the GST return is where a registered person will include all particulars of his/her input tax.
The difference between output and input tax will represent the registered person’s tax liability or credit due for the particular tax period.
Registered business operations will be required to have available proper books and records of business transactions for audit by General Sales Tax Officers. Proper books and records include:
- The GST account
- Books of account (on paper or computer)
- Till tapes
- Credit and debit notes
- Tax invoices
- Bank statements
- Stock-on-hand records
- Motor vehicle logbooks
- System and program documentation that describes the accounting system
- Charts and codes of account
- Any other documents that verify transactions or entries in any books of account
For Further Information Contact:
The GST Office
Commissioner of Sales Tax
Government Administration Bldg
Tel: 501 -222-5574 or 501-222-5579
Fax: 501 -222-5513