Setting up a company in Seychelles
is one of the best ways of investing in the insular state. Thanks to its favorable taxation system
when it comes to opening an offshore company, Seychelles attracts many foreign entrepreneurs interested in developing various activities. It is also possible to register onshore companies for trading purposes in Seychelles
, case in which one of the important incorporation steps refers to value added tax (VAT) registration
The VAT in Seychelles
The value added tax
is an indirect or consumption tax imposed on the sale of goods and services by companies in Seychelles
. The VAT falls under the regulations of the Value Added Tax of 2010 which entered into effect in 2013. The VAT replaced the former Goods and Services Tax (GST). The current rate of the VAT is 15%.
In order to levy the VAT, a local company must first register with the Seychelles Revenue Commission
. Foreign companies with operation here can also apply for VAT registration in Seychelles
VAT registration requirements in Seychelles in 2021
Even if VAT registration
is not mandatory when a business is first incorporated in Seychelles
, there are situations when it becomes an obligation for both local and non-resident company. In order to understand how VAT registration for non-resident companies in Seychelles
works, it should be noted that a business is considered non-resident when its legal seat is not in this country.
In 2021, the obligation to register for VAT in Seychelles for both resident and non-resident companies refers to:
companies making taxable supplies which are not exempt from the value added tax;
companies expecting to make yearly sales exceeding the VAT registration threshold which is set at 5 million rupees;
non-resident businesses supplying goods and services to customers located in Seychelles;
non-resident companies reaching the annual sales threshold which requires VAT registration.
Our company registration specialists in Seychelles can help business owners obtain VAT numbers for their resident or non-resident entities in accordance with the local regulations.
You can read about VAT registration in Seychelles in the scheme below:
Non-resident companies registering for VAT in Seychelles
Foreign companies supplying VAT-taxable goods and services in Seychelles
, as well as those, with permanent establishments here are required to appoint a VAT representative
. The person must be a Seychelles resident. In certain cases, the Revenue Commission can require foreign companies to deposit securities upon the registration for the value added tax.
Our Seychelles company formation advisors can offer more information about these additional requirements for VAT registration. We can also act as VAT representatives on behalf of non-resident companies.
Documents for VAT registration in Seychelles in 2021
The following documents are required to legal entities
and sole proprietors when registering for VAT in Seychelles in 2021
- the National Identification Number for sole traders and members in partnerships registered in Seychelles;
- copies of the business license;
- information about the tax representative (where one was appointed);
- copy of the registration documents (depending on the type of entity);
- a list of employees (where applicable);
- the standard application form issued by the Revenue Commission.
For new companies
, tax registration is first required. During this stage, the National Tax Identification Number is issued. Then, the VAT registration
certificate will be issued.
The VAT registration certificate is issued within 1 week after filing the requested paperwork.
Our local representatives can help you prepare all the documents necessary for VAT registration in Seychelles.
VAT-related obligations in Seychelles
Once a Seychelles VAT number
has been issued, the company or entity obtaining it will have specific obligations. Among these, the collection of the value added tax, the preparation of the VAT returns and their filing
in accordance with the terms imposed by the Revenue Commission.
In order to claim VAT refunds in Seychelles:
- a business must have as a main activity the export of goods (at least 85% of its total VAT-related turnover must be made of exports);
- the company must have a VAT credit reported on a monthly or quarterly return of at least 10,000 rupees for 3 consecutive months;
- the VAT tax returns must be filed no later than 28 days after the supply was made;
- the refund will be processed within 45 days after the return was filed.
In 2021, the Seychelles VAT registration procedure has not suffered any modifications, however, it should be noted that traders failing to register for the tax upon meeting the compulsory requirments can be subject to penalties.
For assistance in VAT registration in Seychelles
, please contact us