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Jamaica General Consumption Tax changes

  • VAT
  • 03 October 2014 | Richard Asquith

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

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.