Valued Added tax aka VAT is one of the most common tax businesses will handle in the Gambia. Therefore, it is important for individuals and small business managers to be familiar with the list of goods and services that are VAT exempted in the Gambia.
VAT exempted goods are not charged with any VAT at the time of sale, nor when they are imported. In this article, we summarized 15 goods and services that are VAT exempted in the Gambia:
- Basic foods, for example rice, flour, sugar and milk
- Education services – educational services has been defined in the ACT as the services supplied to students as part of education program provided by any one of the following establishment that is duly registered or licensed by the Ministry of Education or National Training Authority
- Day care provider
- A pre-primary, primary, or secondary school
- A technical or other college or university
- An educational institution established for the promotion of adult education, vocational training or technical education or
- An institution established for the education or training of physically or mentally challenged persons.
- Medical, dental, optical and veterinary services
- Prescription drugs
- Services provided in and by nursing homes for persons who need permanent care.
- Life insurance, health insurance and reinsurance in respect of life or health
- Rental of residential property
- Unprocessed agricultural and aquaculture products supplied by the producer.
- Agricultural and aquaculture supplies and equipment such as fertilizer, seeds, fishing nets and machinery exclusively used in agriculture or aquaculture.
- Domestic passenger transport other than transport by air or water. However the ferries operated by a public authority or a public authority/private joint venture or a transport provided in connection with a tourism supply.
- Taxis, ferries and private buses
- Domestic electricity supplied to a household whose monthly consumption does not exceed 1,000 kwh
- Domestic water supplied to a household whose monthly consumption does not exceed 250 cube meters
- Gold (in investment form) of at least 99.5% fineness
- Financial services, excluding those rendered for a fee or commission or a similar charges. Financial service would include granting or management of loan or credit, deposit of money, options, management of investment funds and similar products provided by the banks. However it is important to understand the differences between the financial services and fees on financial services. There is no VAT on loan bank provides to customer, however if the bank charge commission such as arrangement fees, then VAT should be applied on the arrangement fees. For example a bank provide loan of D100,000 with an arrangement fees of D2,000. There is no VAT on the D100,000 but there will be VAT on the D2,000 at the standard rate of 15%.
Want to learn more ?
These are the general VAT exempted goods and services and in case you want to read more about VAT in the Gambia, check out our 19 key points on VAT in Gambia.