Chapter II: Imposition and Liability of Tax

Article 2: 

General Sales Tax ( G.S.T ) shall be levied on locally manufactured goods or imported goods except goods exempted by a special provision.
The Tax shall also be levied on services stipulated in table (2) attached hereto .
Goods and services exported shall be subject to a zero rate in accordance with terms and conditions specified in the Executive Regulations hereof .

Article 3:

Standard tax rate levied on commodities shall be 10 %, except commodities stipulated in table (1) attached hereto where applicable tax rate shall be that specified for each therein .
Tax rate(s) on services shall be those specified in table (2) attached hereto.


* The third article is amended by virtue of law No. 2 of 1997 published in the Official Gazette,edition No. 4(bis) on 29-1-1997. Before amendment the article stipulated the following: "The standard tax rate levied on commodities shall be 10%, except commodities stipulated in Table(1) attached hereto where applicable tax rate shall be that specified for each therein. Tax rate(s) on services shall be that specified in Table(2) attached hereto The President of the Republic may, by a decree, exempt certain goods from tax and may amend tax rate on certain goods. The President of the Republic may amend Tables(1) and (2) attached hereto. In all cases the Presidential decree shall be presented to People's Assembly within 15 days as of date of puclication of such decree in case the People's Assembly is in session. Otherwise, the decree shall be presented to th People's Assembly in the first session thereof. In case the decree is not passed by the People's Assembly, the decree shall not be in effect but is not effective as to the period from date of publication of such decree to the date of the said session.

Article 4:

Phase (1) of the application of the General Sales Tax shall be in effect as of the date of enactment of this Law. Concerning collection of the Tax on some commodities, the President of the Republic may, by a presidential decree, allow the move to phase (2) or phase (3) therefor.

Article 5:

Taxable persons shall collect the Tax, state the amounts thereof in a return to be filed to the Department accompanied with payment of such amounts on the dates prescribed herein.

Article 6:

The Tax shall be due at the point of sale of a commodity or the supply of a service by a taxable person in accordance with the provisions of this Law . Using goods or making use of service by taxable persons for private or personal purposes or any legal disposal shall be deemed sale . The Tax shall be due on imported goods at their release from Customs . For such commodities the taxable point shall be same of Customs , and G.S.T. shall be collected in accordance with the procedures stated thereto. In the absence of provisions stipulated in this Law, the rules stipulated in Customs Law shall be applied to such imported goods.

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