Explore the requirements and rules that apply to indirect taxes in Papua New Guinea.
What supplies are liable to the standard rate?
All supplies of goods or services unless zero rating or exemption applies to the particular supply.
Are there any reduced rates, zero- rates or exemptions and if so, what do they apply to?
Zero-rated supplies include exports; international transport; most medical supplies; certain fine metals; certain supplies of unprocessed petroleum; supplies to religious, charitable or educational institutions; supplies to prescribed foreign aid providers; and sales of businesses as going concerns.
Exempt supplies include most financial services; educational services; medical services; most fine metals; public road transport; newspapers; betting; lotteries and games of chance; postage stamps; and housing or motor vehicles provided by the employer.
Any person who carries on a taxable activity and the total value of supplies (excluding exempt supplies) has exceeded 250,000 Papua New Guinean kina (PGK) in the last 12 months or is expected to exceed PGK250,000 in a 12 month period.
Is voluntary registration possible?
Is voluntary registration available for an overseas company or a fiscal representative?
Yes, supplies of motor vehicles and accommodation to employees and other inputs for making exempt supplies.
In addition, items that are not deductible for income tax purposes to employers when provided to employees (such as club subscriptions or fees, payment of domestic services or expenditure on electricity, gas or security relating to an employee and entertainment expenses).
GST incurred on goods and services for a personal or private purpose is not refundable.
Can an overseas company recover GST if it is not registered?
How long does it typically take to obtain a GST refund following a return filing?
Refunds of GST are subject to a desk review by the Internal Revenue Commission and can take 1 to 6 months or more. An application form for a refund must be lodged with the Internal Revenue Commission and accompanying documentation such as supplier listings, invoices and/or bank statements may be required.
Yes, requirements include:
All information within this guide is provided by KPMG professionals in Papua New Guinea and based on information available as of September 2019.