NBR withdraws 5% VAT in equipment transfer between companies covered under bond licence
Previously, if a bond licenced importer would need to transfer or sell the equipment to another company, they would need to pay the 5% applicable VAT
Companies with bond licence will no longer be required to pay a 5% value-added tax to transfer imported equipment between them.
The National Board of Revenue (NBR) issued an order to this end yesterday (6 November) with an aim to reduce costs in equipment transfer and ease of doing business.
Companies covered under bond license has the opportunity to import machinery and equipment at a rebate rate.
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Previously, if a bond licenced importer would need to transfer or sell the equipment to another company, they would need to pay the 5% applicable VAT.
This would apply even in case of transfer to a company covered under the bond licence.
The latest NBR order has withdrawn that condition.
