Jamaica General Consumption Tax changes

The Jamaica General Consumption Tax (GCT) Act 2014 is set to introduce a range of changes to the indirect tax regime. GCT operates like VAT, and is generally charged at 16.5%.

The changes include:

• Withdrawal of the option to claim Special Consumption Tax credits against a company’s GCT liabilities
• Allow input VAT reclaims for certain capital expenditure
• Reduction of the period inactive businesses may recover GST from 6 years to 2 years
• New rules of VAT liabilities for the transfer of a going concern business
• Allow voluntary GCT registration for small companies
• CGT exemption in free zones for tourist accommodation services
• New guidance on service import GCT rules to help companies make full claims
• New facility for exempt manufacturers to claim back input GCT on certain conditions
• Improve GCT deferment for manufacturers making mixed-supplies of goods
• New stricter fines and penalty regime for GCT avoidance