Who Pays Services Tax
The following ‘designated services’ pay Services Tax:
- hotel services
- restaurant and bar services, and
- telecommunications services.
Businesses with total receipts from the provision of a designated service(s) of less than $500 a month do not have to pay Services Tax.
However, if your business earns $500 or more in any one month from the provision of a designated service you will need to pay Services Tax on the total receipts received for that month.
Services Tax Rate: From 1 July 2008
From 1 July 2008, services tax is payable at the rate of 5% of total receipts.
Receipts subject to services tax are also subject to income tax.
The amount of services tax paid is an allowable income tax deduction in cases where that amount has been included in total receipts subject to income tax.
How to Pay Services Tax
Services Tax is paid monthly.
Services Tax is required to be paid by the 15th day of the month after the month in which the services were provided. For example, tax on designated services provided during January must be paid no later than 15 February.
You are required to complete 3 copies of the Consolidated Monthly Taxes Form and deliver the forms and the Services Tax payment to a BNU branch. See How to pay taxes for further details.
Services Tax Rate: 2000 – June 2008
For services provided between 1 July 2002 and 30 June 2008, the service tax rate was 12%.
For services provided between 1 July 2000 and 30 June 2002, the service tax rate was 10%.
Forms
- Monthly Taxes Form
Brochures and Guides
- Services Tax – Tax Information Brochure
- Services Tax: a Guide for Providers of Designated Services – Tax Guide