"Revenue from the community
for the community"
Consumption Tax Registration

Businesses are liable to register for CT under the circumstances listed below:

Compulsory Registration

It is compulsory for the following persons and bodies to register for CT:

  • Any person who carries on a taxable activity who expects the total value of the taxable supplies of goods and/or services to be $100,000 or more in the next 12 months;
  • Any person who carries on a taxable activity and the total value of the taxable supplies of goods and/or services in the past 12 months (or some lesser period) is $100,000 or more;
  • Government or private bodies that issue licenses, permits and the like for a fee. 
Voluntary

Persons carrying on taxable activity where annual gross turnover < $100,000.

Before the Minister will agree to register you, you will have to satisfy the Minister that:

  • You are making, or will make taxable supplies;
  • You have a fixed place of business;
  • You have kept proper accounting records relating to your business;
  • You will continue to keep proper records and will lodge correct CT returns on time; and
  • You have complied with your obligations under other revenue laws.
How do I register for CT?

If required to register, complete and submit documents listed below to Reception at the Ministry of Revenue and Customs Head Office or send by email to cst@revenue.gov.to:

  • Form 1 (Regulation 10) - Consumption Tax Application For Registration
  • Checklist for Compulsory Consumption Tax Registration (if compulsory registration)
  • Any documents required on the  CT registration form and its checklist.

Refer to List of existing CT Registered Companies

If your business does not have a Tax Identification Number (TIN), you must apply first for a Tax Identification Number (TIN).

What happens when I am registered? 

Once you are registered for CT, the Ministry will send you a:

  • Letter confirming your registration and the date that your first CT return is due.
  • CT Registration Certificate which you must display in a prominent place at each of your places of business. Failure to comply shall be liable upon conviction to a fine not exceeding $10,000 (Sec31 (1b) CT Act 2003).
When can I cancel my registration?

A registered person can apply for cancellation of the person’s registration in two circumstances.

1. Cease Trading: This situation could arise if you have closed down or sold your business or there is some change in its ownership structure, for example, from sole trader to a company ownership. You need to lodge the application within 7 days of the happening of any such event.

2. Taxable Supplies: <$100,000 The application for cancellation has to be lodged within 7 days from the date you found out that your turnover was below $100,000.

Note: If you registered for CT on a voluntary basis, the application can only be made at the expiration of two years from the date of your first registration.

What are my obligations upon ceasing to be registered? 

When your registration is cancelled you have to do the following things:

  1. You have to stop charging CT
  2. You have to stop advertising yourself as a CT registered person
  3. You have to take action to delete from your stationery and all business documents your CT registration details
  4. You need to lodge your final CT return and pay all CT due in respect of this return
  5. You need to immediately return your CT registration certificate to the MORC.
Improving the lives of Tongans through effective & efficient tax & customs administration