In order to facilitate the efficient administration of the Goods and Services Tax and to ensure fair competition without adversely impacting on government revenue, contracts that satisfy the following conditions shall not be subject to the Goods and Services Tax levied under the Goods and Services Tax Act (Law Number 10/2011):
1. The contract must be between two GST registered persons; and
2. The contract must have been awarded through an international tender; and
3. The estimated value of the contract must be at least MVR 500,000,000 (Five Hundred Million Rufiyaa); and
4. Input tax of the recipient of the supply must be forecasted to exceed its output tax in all taxable periods over the duration of the contract; and
5. The contract must be valid for a period of at least 12 (twelve) months; and
6. The contract must be in writing and signed by the contracting parties.
Registered persons that supply goods or services under a contract which satisfies the above conditions are required to register such contracts with the MIRA and obtain written approval before this ruling takes effect, and such approval shall apply only to those contracts. Registered persons are required to inform MIRA of proposed amendments to the contract that might impact the conditions listed above. MIRA shall withdraw this ruling in any case where there is reason to believe that an amendment to the contract is likely to impact any of the conditions.
In order to register your contracts, you are required to complete and submit MIRA 108 (G3 Contracts Registration), which is available for download from our website, along with all relevant documents.
Should you have any queries, please call us at 1415 or email us at [email protected].