As of January 1, 2015, we will have to pay 7.5% VAT on items & services including ALL FOOD & GROCERY ITEMS, EVERY SINGLE ITEM/GOODS IN ALL CATEGORIES THAT ARE PURCHASED IN THE COUNTRY, ALL UTILITIES (power, water, cable, phone, etc), gas & fuel, private healthcare, all domestic transportation (airlines, mailboats, ferries, taxis, buses [except tour buses], etc) insurance, construction, tourism, restaurants, ALL SERVICES EXCEPT the ones listed below, and more. SERVICES is anything you pay a business or provider to do for you, from getting your hair done to landscaping, to having something constructed, to any type of service a business provides.
THE ONLY SERVICES EXEMPTED WILL NOW BE: Certain financial services (credit & savings deposits and lending), rent or sale of dwellings, education (tuition only), vacant land sales and vacant land leasing for homes/dwellings, government services, daycare, homes for the old-aged, indigent, handicapped or sick, public health care, religious services and registered charities. IF THE SERVICE DOESN’T FALL INTO THESE CATEGORIES, IT WILL BE TAXED.
**AND REMEMBER** – THE GOVERNMENT’S FINANCIAL SECRETARY HAS ALREADY SAID THE 7.5% RATE FOR VAT IS LIKELY TO GO UP SOON AFTER IT COMES IN ON JANUARY 1.
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