Value Added Tax Act

Section Interpretation Section In this Act, unless the context otherwise requires— “ application to own use ”, in relation to goods , means applying the goods to personal use, including personal use by a relative , or any other nonbusiness use; “ Commissioner General ” means the Commissioner General of the Uganda Revenue Authority; “ company ” means a body corporate or unincorporate, whether created or recognised under a law in force in Uganda or elsewhere, but does not include a partnership or trust ; “ consideration ”, in relation to a supply of goods or services , means the total amount in money or kind paid or payable for the supply by any person , directly or indirectly, including any duties, levies, fees and charges paid or payable on, or by reason of, the supply other than tax , reduced by any discounts or rebates allowed and accounted for at the time of the supply; “ exempt import ” has the meaning in section 20 ; “ exempt supply ” means a supply of goods or services to which section 19 applies; “ finance lease ”, in relation to goods , includes the lease of goods where— (i) the lease term exceeds 75 percent of the expected life of the goods ; (ii) the lessee has an option...

Section Interpretation of fair market value Section For the purposes of this Act, the fair market value of a taxable supply at any date is the consideration in money which a similar supply would generally fetch if supplied in similar circumstances at that date in Uganda, being a supply freely offered and made between persons who are not associates. Where the fair market value of a taxable supply cannot be determined under subsection (1), the fair market value of the supply shall be the amount that, in the opinion of the Commissioner General having regard to all the circumstances of the supply, is the fair market value of the supply. In this section, “similar supply”, in relation to a taxable supply , means a supply that is identical to, or closely or substantially resembles, the taxable supply , having regard to the characteristics, quality, quantity supplied, functional components, reputation of, and materials comprising the goods and services which are the subject of the taxable supply .

Section Interpretation of associate Section Without limiting the generality of subsection (1), the following are treated as an associate of a person — For the purposes of this Act, “associate”, in relation to a person , means any other person who acts or is likely to act in accordance with the directions, requests, suggestions or wishes of the person whether or not they are communicated to that other person . a relative ; a partner, an associate of a partner under another application of this section or a partnership in which the person is a partner; the trustee of a trust under which the person , or an associate under another application of this section, benefits or is capable of benefiting; a company in which the person either alone or together with an associate or associates under another application of this section controls directly or indirectly 50 percent or more of the voting power in the company , or which is accustomed or may reasonably be expected to act in accordance with the directions or wishes of the person or an associate of the person ; where the person is a partnership, a partner in the partnership, an associate of the partner under another application of this secti...

Section Charge of tax Section A tax, to be known as a value added tax, shall be charged in accordance with this Act on — every taxable supply in Uganda made by a taxable person; every import of goods other than an exempt import; and the supply of any imported services by any person.

Section Person liable to pay tax Section Except as otherwise provided in this Act, the tax payable— in the case of a taxable supply, is to be paid by the taxable person making the supply; in the case of an import of goods, is to be paid by the importer; in the case of an import of services, is to be paid by the recipient of the imported services.

Section Taxable person Section A person registered under section 7 is a taxable person from the time the registration takes effect. A person who is not registered, but who is required to apply to be registered, is a taxable person from the beginning of the tax period immediately following the period in which the duty to apply for registration arose.

Section Persons required or permitted to register Section A person who is not already a registered person shall apply to be registered in accordance with section 8 — within twenty days of the end of any period of three calendar months if during that period the person made taxable supplies, the value of which exclusive of any tax exceeded one-quarter of the annual registration threshold set out in subsection (2); or at the beginning of any period of three calendar months where there are reasonable grounds to expect that the total value exclusive of any tax of taxable supplies to be made by the person during that period will exceed one-quarter of the annual registration threshold set out in subsection (2). The annual registration threshold is fifty million shillings. In determining whether the registration threshold is exceeded for the period specified in subsection (1), it is to be assumed that the person is a taxable person during that period. A person supplying goods or services for consideration as part of his or her business activities, but who is not required by subsection (1) or (5) to apply for registration, may apply to the Commissioner General to be registered in accordance...

Section Registration Section The Commissioner General shall register a person who applies for registration under section 7 and issue to that person a certificate of registration including the VAT registration number unless the Commissioner General is satisfied that that person is not eligible for registration under this Act or, in the case of an application under section 7 (4)— the Commissioner General has reasonable grounds to believe that that person — Registration under this section takes effect— A taxable person shall notify the Commissioner General in writing of any change — An application for registration under section 7 shall be in the form prescribed by the Commissioner General, and the applicant shall provide the Commissioner General with such information as the Commissioner General may require. the person has no fixed place of abode or business; or will not keep proper accounting records relating to any business activity carried on by that person ; will not submit regular and reliable tax returns as required by section 31 ; or is not a fit and proper person to be registered. in the case of an application under section 7 (1) or (5), from the beginning of the tax period imm...

Section Cancellation of registration Section The Commissioner General may cancel the registration of— The Commissioner General may cancel the registration of a person who is not required to apply for registration under section 7 where the person— A taxable person shall apply in writing for the cancellation of the registration if that person has ceased to make supplies of goods or services for consideration as part of the business activities of the person . Subject to subsection (3), a taxable person may apply in writing to have his or her registration cancelled if, with respect to the most recent period of three calendar months, the value of his or her taxable supplies exclusive of tax does not exceed one-quarter of the annual registration threshold specified under section 7 (2) and if the value of his or her taxable supplies exclusive of tax for the previous twelve calendar months does not exceed 75 percent of the annual registration threshold. In the case of a taxable person who applied for registration under section 7 (4), an application under subsection (2) may only be made after the expiration of two years from the date of registration. a person who has applied for cancellatio...

Section Supply of goods Section Except as otherwise provided under this Act, a supply of goods means any arrangement under which the owner of the goods parts or will part with possession of the goods , including an agreement of sale and purchase. A supply of electrical or thermal energy, heating, gas, refrigeration, air conditioning or water is a supply of goods . The application of goods to own use is a supply of the goods .

Section Supply of services Section Except as otherwise provided under this Act, a supply of services means any supply which is not a supply of goods or money , including— the performance of services for another person ; the making available of any facility or advantage; or the toleration of any situation or the refraining from the doing of any activity. A supply of services made by an employee to an employer by reason of employment is not a supply made by the employee.

Section Mixed supplies Section A supply of services incidental to the supply of goods is part of the supply of goods . A supply of goods incidental to the supply of services is part of the supply of services . A supply of services incidental to the import of goods is part of the import of goods . Regulations made under section 78 may provide that a supply is a supply of goods or services.

Section Supply by agent Section A supply of goods or services made by a person as agent for another person being the principal is a supply by the principal. Subsection (1) does not apply to an agent’s supply of services as agent to the principal.

Section Time of supply Section Except as otherwise provided under this Act, a supply of goods or services occurs— in any other case, on the earliest of the date on which— Where— where the goods are applied to own use, on the date on which the goods or services are first applied to own use; where the goods or services are supplied by way of gift, on the date on which ownership in the goods passes or the performance of the services is completed; or the goods are delivered or made available or the performance of the service is completed; payment for the goods or services is made; or a tax invoice is issued. goods are supplied under a rental agreement; or goods or services are supplied under an agreement or law which provides for periodic payments, For the purposes of this section, where two or more payments are made or are to be made for a supply of goods or services other than a supply to which subsection (2) applies, each payment shall be regarded as made for a separate supply to the extent of the amount of the payment on the earlier of the date the payment is due or received. A person making a supply to which subsection (1)(a) or (b) applies shall keep a record of the date on which...

Section Place of supply of goods Section Except as otherwise provided under this Act, a supply of goods takes place where the goods are delivered or made available by the supplier. A supply of thermal or electrical energy, heating, gas, refrigeration, air conditioning or water takes place where the supply is received.

Section Place of supply of services Section Except as otherwise provided under this Act, a supply of services takes place where the services are rendered. A supply of services in connection with immovable property takes place where the immovable property is located. A supply of services of, or incidental to, transport takes place where the transport commences. A supply of services to which clause 1(a) of the Third Schedule applies shall be regarded as having been made in Uganda. Where a person is required to pay a fee for receiving a signal or service for a supply of television, radio, telephone or other communication services , the supply takes place where that person receives the signal or service.

Section Imports Section An import of goods takes place— where customs duty is payable, on the date on which the duty is payable; or in any other case, on the date the goods are brought into Uganda.

Section Form, authentication and availability of documents Section Forms, notices, returns, statements, tables and other documents prescribed or published by the Commissioner General may be in such form as the Commissioner General may determine for the efficient administration of this Act, and publication of documents in the Gazette shall not be required. The Commissioner General shall make the documents referred to in subsection (1) available to the public at the Uganda Revenue Authority and at any other locations, or by mail, as the Commissioner General may determine. A notice or other document issued, served or given by the Commissioner General under this Act is sufficiently authenticated if the name or title of the Commissioner General , or authorised officer, is printed, stamped or written on the document.

Section Service of notices and other documents Section Unless otherwise provided in this Act, a notice or other document required or authorised under this Act to be served— on a person being an individual other than in a representative capacity, is considered sufficiently served if— on any other person , is considered sufficiently served if— personally served on that person ; left at the person ’s usual or last known place of abode, office or place of business in Uganda; or sent by registered post to such place of abode, office or place of business, or to the person ’s usual or last known address in Uganda; or personally served on the nominated officer of the person ; left at the registered office of the person or the person ’s address for service of notices under this Act; or left at or sent by registered post to any office or place of business of the person in Uganda.

Section Nominated person Section The name of the nominated person shall be notified to the Commissioner General — Every taxable person being a partnership, trust , company , nonresident individual or resident individual who is outside Uganda for more than one tax period shall have a nominated person for tax purposes who is a resident individual. in the case of a partnership, trust , company or nonresident individual, in the first tax period in which the partnership, trust , company or individual becomes a taxable person ; or in the case of a resident individual who is outside Uganda, in the first tax period in which the individual is outside Uganda. Where a taxable person fails to comply with subsection (2), the Commissioner General shall specify a nominated person for that taxable person . A taxable person may, by notice in writing to the Commissioner General , change the nominated person . Subject to section 71 , the nominated person is responsible for any obligation imposed on the partnership, trust, company or individual under this Act.

Section Application of Act to partnerships and unincorporated associations Section This Act applies to a partnership as if the partnership were a person , but with the following changes— In a prosecution of a person for an offence that the person is taken to have committed under subsection (1)(c), it is a defence if the person proves that he or she— obligations that would be imposed on the partnership are imposed on each partner, but may be discharged by any of the partners; the partners are jointly and severally liable to pay any amount that would be payable by the partnership; and any offence under this Act that would otherwise be committed by the partnership is taken to have been committed by each of the partners. This Act applies to an unincorporated association as if it were a person , but the obligations that would be imposed on the association are imposed on each member of the committee of management of the association, but may be discharged by any of those members. did not aid, abet, counsel or procure the relevant act or omission; and was not in any way knowingly concerned in, or party to, the relevant act or omission.

Section Trustee Section A person who is a trustee in more than one capacity is treated for the purposes of this Act as a separate person in relation to each of those capacities.

Section Currency conversion Section For the purposes of this Act, all amounts of money are to be expressed in Uganda shillings. Where an amount is expressed in a currency other than Uganda shillings, the amount shall be converted into the Uganda shillings using the weighted selling rates of the previous month for the currency concerned.

Section Prices quoted to include tax Section Any price advertised or quoted for a taxable supply shall include tax , and the advertisement or quotation shall state that the price includes the tax .

Section Schemes for obtaining undue tax benefits Section Notwithstanding anything in this Act, if the Commissioner General is satisfied that a scheme has been entered into or carried out where— In this section— “ tax benefit” includes— a person has obtained a tax benefit in connection with the scheme; and having regard to the substance of the scheme, it would be concluded that the person , or one of the persons, who entered into or carried out the scheme did so for the sole or dominant purpose of enabling the person to obtain the tax benefit, “scheme” includes any agreement, arrangement, promise or undertaking whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings, and any plan, proposal, course of action or course of conduct; a reduction in the liability of any person to pay tax ; an increase in the entitlement of a person to a credit or refund; or any other avoidance or postponement of liability for the payment of tax .

Section International agreements Section To the extent that the terms of a treaty or other international agreement to which Uganda is a party are inconsistent with the provisions of this Act, apart from section 75 , the terms of the treaty or international agreement prevail over the provisions of this Act. In this section, “international agreement” means an agreement between Uganda and a foreign government or a public international organisation .

Section Priority of Schedules Section Where a supply of goods or services may be covered by both the Second Schedule and the Third Schedule, the supply shall be treated as being within the Third Schedule.

Section Regulations and amendment of Schedules Section The Minister may make regulations for better carrying into effect the provisions and purposes of this Act. The Minister may by statutory order specify the rates of tax payable under this Act; and the order shall cease to have effect unless it is introduced into Parliament within three months from the date of its publication and Parliament approves a resolution confirming that order. The Minister may, with the approval of the Cabinet, make regulations amending the First, Second and Third Schedules.

Section Taxable supply Section A taxable supply is a supply of goods or services , other than an exempt supply , made by a taxable person for consideration as part of his or her business activities. A supply is made as part of a person ’s business activities if the supply is made by him or her as part of, or incidental to, any independent economic activity he or she conducts, whatever the purposes or results of that activity. The business activities of an individual do not include activities carried on by him or her only as part of his or her hobby or leisure activities. A supply is made for consideration if the supplier directly or indirectly receives payment for the supply, whether from the person supplied or any other person , including any payment wholly or partly in money or kind. The application to own use by a taxable person of goods supplied to him or her for the purposes of his or her business activities shall be regarded as a supply of those goods for consideration as part of his or her business activities. Where goods have been supplied to a taxable person for the purposes of his or her business activities, the supply of those goods for reduced consideration shall be reg...

Section Exempt supply Section A supply of goods or services is an exempt supply if it is specified in the Second Schedule. Where a supply is an exempt supply under paragraph 1(k) of the Second Schedule, both the transferor and transferee shall, within twenty-one days of the transfer, notify the Commissioner General in writing of the details of the transfer.

Section Exempt import Section An import of goods is an exempt import if the goods — are exempt from customs duty under the Fourth Schedule of the Finance Act, 2000, unless the Minister provides otherwise by regulation; or would be exempt had they been supplied in Uganda.

Section Taxable value of a taxable supply Section The taxable value of— Except as otherwise provided under this Act, the taxable value of a taxable supply is the total consideration paid in money or in kind by all persons for that supply. a taxable supply of goods by way of an application to own use ; a taxable supply for reduced consideration ; or a taxable supply described in section 9 (9), is the fair market value of the goods and services at the time the supply is made. Where a taxable supply is made without a separate amount of the consideration being identified as a payment of tax , the taxable value of that supply is the total amount of the consideration paid excluding tax . The taxable value of a taxable supply of goods under a rental agreement, as defined in section 14 , is the amount of the rental payments due or received.

Section Adjustments Section This section applies where, in relation to a taxable supply by a taxable person — the supply is cancelled; the nature of the supply has been fundamentally varied or altered; the previously agreed consideration for the supply has been altered by agreement with the recipient of the supply, whether due to an offer of a discount or for any other reason; or the goods or services or part of the goods or services have been returned to the supplier, and the taxable person making the supply has— provided a tax invoice in relation to the supply and the amount shown in the invoice as the tax charged on the supply is incorrect as a result of the occurrence of any one or more of the abovementioned events; or filed a return for the tax period in which the supply occurred and has accounted for an incorrect amount of output tax on that supply as a result of the occurrence of any one or more of the above-mentioned events. Where subsection (1) applies, the taxable person making the supply shall make an adjustment as specified in subsection (3) or (4). Where the output tax properly chargeable in respect of the supply exceeds the output tax actually accounted for by the tax...

Section Taxable value of an import of goods Section The taxable value of an import of goods is the sum of— the value of the goods ascertained for the purposes of customs duty under the laws relating to customs; the amount of customs duty, excise tax and any other fiscal charge other than tax payable on those goods ; and the value of any services to which section 12 (3) applies which is not otherwise included in the customs value under paragraph (a).

Section Calculation of tax payable on a taxable transaction Section Subject to subsection (2), the tax payable on a taxable transaction is calculated by applying the rate of tax to the taxable value of the transaction. Where the taxable value is determined under section 21 (2) or (3), the tax payable is calculated by the formula specified in section 1(a) of the Fourth Schedule. Subject to subsection (4), the rate of tax shall be as specified in section 78 (2). The rate of tax imposed on taxable supplies specified in the Third Schedule is zero.

Section Calculation of tax payable by taxable person for a tax period Section Subject to section 26 , the tax payable by a taxable person for a tax period is calculated according to the formula specified in section 1(b) of the Fourth Schedule.

Section Cash basis accounting Section An election made under subsection (2) remains in force until— This section applies to a taxable person , the annual value of whose taxable supplies does not exceed two hundred million shillings. A taxable person to whom this section applies may elect to account for tax purposes on a cash basis. An election under subsection (2) shall be made in writing to the Commissioner General by the due date for the first return in which the taxable person seeks to use the method of accounting specified in subsection (2). Where a taxable person makes an election under subsection (2), that person must account for both the output tax payable and the input tax credited on a cash basis. A taxable person who has made an election under subsection (2) shall determine the tax payable for a tax period according to the formula specified in section 1(c) of the Fourth Schedule. withdrawn by the taxable person by notice in writing to the Commissioner General ; or the Commissioner General , by notice in writing to the taxable person , requires the person to determine the tax payable for a tax period in accordance with section 25 . A taxable person who has made an election...

Section Consequences of a change in accounting basis Section Every taxable person whose accounting basis is changed is liable for tax , if any, as determined under this section in the tax period in which the change occurred. Where a taxable person changes from the method of accounting provided under section 25 (referred to as the “invoice basis”) to the method of accounting provided under section 26 (referred to as the “cash basis”), the tax payable under subsection (1) is determined in accordance with the formula specified in section 1(d) of the Fourth Schedule. Where a taxable person changes from a cash basis to an invoice basis of accounting, the tax payable under subsection (1) is determined in accordance with the formula specified in section 1(e) of the Fourth Schedule. If the amount determined in accordance with subsection (2) or (3) is negative, it shall be refunded to the taxable person in accordance with section 42 (1).

Section Credit for input tax Section Where section 25 applies for the purposes of calculating the tax payable by a taxable person for a tax period, a credit is allowed to the taxable person for the tax payable in respect of— A credit is allowed to a taxable person on becoming registered for input tax paid or payable in respect of— An input tax credit— A taxable person under this section shall not qualify for input tax credit in respect of a taxable supply or import of— entertainment, unless the taxable person — Subject to subsections (9) and (10), the input tax that may be credited by a taxable person for a tax period is— Subject to subsection (13), an input tax credit allowed under this section may not be claimed by the taxable person until the tax period in which the taxable person has— Where a taxable person does not have a tax invoice evidencing the input tax paid, the Commissioner General may allow an input tax credit in the tax period in which the credit arises where the Commissioner General is satisfied that— Where— In this section— all taxable supplies made to that person during the tax period ; or all imports of goods and services made by that person during the tax period...

Section Tax invoices Section A person — A request for a tax invoice under subsection (5) shall be made— A taxable person making a taxable supply to any person shall provide that other person , at the time of supply, with an original tax invoice for the supply. A taxable person making a taxable supply shall retain one copy of the tax invoice referred to in subsection (1). Where a supplied person loses the original tax invoice, the supplier may provide a duplicate copy clearly marked “COPY”. An original tax invoice shall not be provided in any circumstance other than that specified in subsection (1). who has not received a tax invoice as required by subsection (1); or to whom section 28 (3) applies, in the case of a request under subsection 5(a), within thirty days after the date of the supply; in the case of a request under subsection (5)(b), within thirty days after the date of registration. A taxable person who receives a request under subsection (5) shall comply with the request within fourteen days after receiving that request. A tax invoice is an invoice containing the particulars specified in section 2 of the Fourth Schedule.

Section Credit and debit notes Section Where a tax invoice has been issued in the circumstances specified in section 22 (1)(e) and the amount shown as tax charged in that tax invoice exceeds the tax properly chargeable in respect of the supply, the taxable person making the supply shall provide the recipient of the supply with a credit note containing the particulars specified in section 3 of the Fourth Schedule. Where a tax invoice has been issued in the circumstances specified in section 22 (1)(e) and the tax properly chargeable in respect of the supply exceeds the amount shown as tax charged in that tax invoice, the taxable person making the supply shall provide the recipient of the supply with a debit note containing the particulars specified in section 4 of the Fourth Schedule.

Section Returns Section A taxable person shall lodge a tax return with the Commissioner General for each tax period within fifteen days after the end of the period. A tax return shall be in the form prescribed by the Commissioner General and shall state the amount of tax payable for the period, the amount of input tax credit refund claimed and such other matters as may be prescribed. In addition to any return required under subsection (1), the Commissioner General may require any person , whether a taxable person or not, to lodge (whether on that person ’s own behalf or as agent or trustee of another person ) with the Commissioner General such further or other return in the prescribed form as and when required by the Commissioner General for the purposes of this Act. Upon application in writing by a taxable person , the Commissioner General may, where good cause is shown by the taxable person , extend the period in which a tax return is to be lodged.

Section Assessments Section Where— An assessment under subsection (1)— Where an assessment has been made under this section, the Commissioner General shall serve notice of the assessment on the person assessed, which notice shall state— The time limit for amending an assessment is— a person fails to lodge a return under section 31 ; the Commissioner General is not satisfied with a return lodged by a person ; or the Commissioner General has reasonable grounds to believe that a person will become liable to pay tax but is unlikely to pay the amount due, where fraud, or gross or wilful neglect has been committed by, or on behalf of, the person , may be made at any time; or in any other case, shall be made within five years after the date on which the return was lodged by the person . The Commissioner General may, based on the best information available, estimate the tax payable by a person for the purposes of making an assessment under subsection (1). Where a person is not satisfied with a return lodged by that person under this Act, that person may apply to the Commissioner General to make any addition or alteration to the return. An application under subsection (4) shall be in writin...

Section General provisions relating to assessments Section No assessment or other document purporting to be made, issued or executed under this Act shall be — The production of a notice of assessment or a certified copy of a notice of assessment shall be received in any proceedings as conclusive evidence of the due making of the assessment, and except in proceedings relating to objections and appeals relating to the assessment, that the amount and all particulars of the assessment are correct. quashed or deemed to be void or avoidable for want of form; or affected by reason of mistake, defect or omission in it, if it is, in substance and effect, in conformity with this Act and the person assessed or intended to be assessed or affected by the document is designated in it according to common understanding.

Section Due date for payment of tax Section Tax payable under this Act is due and payable— Where the Commissioner General has reasonable grounds to believe that a person may leave Uganda permanently without paying all tax due under this Act, the Commissioner General may issue a certificate containing particulars of the tax to the commissioner of immigration and he or she may request the commissioner of immigration to prevent that person from leaving Uganda until that person makes— in the case of a taxable supply by a taxable person in respect of a tax period , on the date the return for the tax period must be lodged; in the case of an assessment issued under this Act, on the date specified in the notice of assessment; or in any other case, on the date the taxable transaction occurs as determined under this Act. The tax payable by a taxable person under subsection (1) shall be determined in accordance with Part VII of the Act. Where an objection to or a notice of appeal against an assessment has been lodged, the tax payable under the assessment is due and payable and may be recovered, notwithstanding that objection or appeal. Upon written application by a person liable for tax , the...

Section Tax as a debt due to Government Section Tax due and payable under this Act is a debt due to the Government and is payable to the Commissioner General by the person specified in section 5 . Except where the contrary intention appears, the customs and excise law applicable in Uganda in relation to imported goods shall, with such exceptions, modifications and adaptations as the Minister may by regulations prescribe, apply, so far as relevant, in relation to any tax chargeable on the import of goods . The Commissioner General may, under subsection (2), exercise any power conferred on him or her by the customs and excise laws applicable in Uganda as if the reference to customs duty or excise tax in those laws included a reference to tax charged on imported goods under this Act. If a person fails to pay tax when it is due and payable, the Commissioner General may file, with a court of competent jurisdiction, a statement certified by the Commissioner General setting forth the amount of the tax due; and that statement shall be treated for all purposes as a civil judgment lawfully given in that court in favour of the Commissioner General for a debt in the amount set forth. The state...

Section Security Section Where it appears to the Commissioner General necessary to do so for the protection of the revenue, the Commissioner General may require any taxable person , as a condition of the person making a taxable supply , to give security of an amount and in a manner that the Commissioner General may determine for the payment of tax which is or may become due by the person .

Section Preferential claim to assets Section From the date on which tax is due and payable, the Commissioner General has a preferential claim against other claimants upon the assets of the person liable to pay the tax until the tax is paid.

Section Seizure of goods Section Where goods have been seized under subsection (1), the Commissioner General shall, within ten days after the seizure, serve on the owner of the goods or the person who had custody or control of the goods immediately before the seizure, a notice in writing— Where subsection (7) does not apply, the Commissioner General shall detain the goods seized under subsection (1)— in any other case, for at least— The Commissioner General may seize any goods in respect of which he or she has reasonable grounds to believe that the tax that is due and payable in respect of the supply or import of those goods has not been, or will not be, paid. Goods seized under subsection (1) shall be stored in a place approved by the Commissioner General . Immediately after the seizure of the goods , a written statement should be obtained from the owner of the goods or the person who has custody or control stating the quantity and quality of the goods . identifying the goods ; stating that the goods have been seized under this section and the reasons for the seizure; and setting out the terms for the release or disposal of the goods . The Commissioner General is not required to s...

Section Closure of business and distress proceedings Section Where the person liable does not pay the tax due, together with the costs of the distress— Where a person liable for tax has failed to remit the amount payable by him or her within the prescribed time, the Commissioner General may lock up and seal the business premises of that person ; and thereafter the goods in those business premises shall be deemed to be attached and at the disposal of the Commissioner General . The Commissioner General may recover unpaid tax by distress proceedings against the movable property of the person liable to pay the tax , by issuing an order in writing specifying the person against whose property the proceedings are authorised, the location of the property and the tax liability to which the proceedings relate; and he or she may require a police officer to be present while the distress is being executed. For the purposes of executing distress under subsection (2), the Commissioner General may at any time enter any house or premises described in the order authorising the distress proceedings. Property upon which a distress is levied under this section, other than perishable goods , shall be ke...