"Revenue from the community
for the community"
CT Newsletter - August 2006
25/08/2006 2:54:56 p.m.


Welcome to CT News

This is the first of what we intend to be a quarterly newsletter.  In this newsletter we will tell you about Inland Revenue services, topical issues and tax law changes.  Please pass this newsletter on to the person who deals with CT in your business.

Claiming CT – your tax invoice requirements

We’ve noticed that a number of CT tax invoices are being issued containing errors such as incorrect CT numbers, the words “tax invoice” not being shown, no CT content shown or the simplified tax invoice being issued for supplies over $500.  Remember, when you make an input tax claim for CT purposes, you must hold a valid and correct tax invoice.  The requirements are different depending on the amount of the supply. 

For supplies of greater than $500 (including CT).  It must clearly show:

Ø      the words “Consumption tax invoice” in a prominent place

Ø      the name, address, and Taxpayer Identification Number of the supplier

Ø      the name, address, and Taxpayer Identification Number of the recipient

Ø      the individualised serial number and the date on which the consumption tax invoice was issued

Ø      the description of the goods supplied (including quantity or volume) or services provided and the date ton which the supply was made, and

Ø      the consideration for the supply and the amount of Consumption Tax charged.

For supplies of less than $500 (including CT).  It must clearly show:

Ø      the words “Consumption tax invoice” in a prominent place

Ø      the date the Consumption Tax invoice is issued

Ø      the name of the supplier

Ø      the tax identification number(TIN) of both the supplier and the purchaser and

Ø      a brief description of the goods or the services supplied.

Zero rated supplies

There appears to be some confusion relating to the zero rating of goods.  It is only the supply of goods to a place outside of Tonga that can be zero rated. 

Example  Kolo sells his fishing catch both here in Tonga as well as to New Zealand.  The local sales are subject to CT at 15% whilst the sales to NZ are zero rated. 

In order to confirm that your sales are zero rated you need to hold sufficient documentary proof.  It is suggested that the Export entry certificate be kept.

Questions and Answers

In each newsletter we will look at some common questions and problem areas to help you get things right—and save you time and money.

Q   Am I able to make an input tax claim for food and beverages.

A   No, food and beverages are included in the definition of entertainment and as such no input tax credit is allowed.  (Refer section17(4)(C ) of the Consumption Tax Act 2003).  Please note that there is an exclusion to this rule for those who are in the business of providing entertainment and the entertainment was not provided to an associate or an employee.

Q   The supplier won’t provide me with a valid CT tax invoice

A   It is an offence for a supplier not to provide a valid Consumption Tax invoice.  If your requests are not met please contact revenue services.

If you have any questions you would like answered in this section please contact:

Kolopeaua Tonga
Revenue Services Department
Large Business Division
PO Box 5670
Railway Road
Ph: 23 444
Fax: 26 638
Delivery of CT returns

Just a reminder that we deliver CT returns is the end of the month.  If you haven’t received your CT return by the end of the month please contact the Large Business Division of Revenue Services as soon as possible.    

Visit our website

Our website provides a great deal of information and is designed with business customers in mind.  So, for the latest business tax information visit us at:  www.revenue.to

  • The PAYE reconciliation is due 31 July
  • The Income Tax returns for individuals and company’s is due 31 August



Improving the lives of Tongans through effective & efficient tax & customs administration