Can anyone explain the current 8% sales tax to me? I have to pay this tax on new construction of a home, but I do not see it being charged in the stores for goods purchased. Is it already calculated in the price of the goods? On what goods or services can I be expected to be charged the tax?
It is only 5% and it is to be paid by you directly to the govt to cover the contractors taxes(most do not pay all their taxes).If they have fully paid their taxes for the year they will be able to claim the 5% back-therefore this is not a tax on the person building a home but it is their/your responsibility to ensure the govt receives their monies (you should withold 5% not pay and send that to the govt. not 5% extra).Also it is your responsibility that this money goes to the govt.-it is not the responsibility of the contractor which means if you pay him and he does not pay govt you are still liable. Hope that helps.(perhaps I should write a book) Peter P.S.If you are clever you will only pay on the labour but you have to make sure the contract stipulates that you have bought all the materials.
According to what I have read the "Sales Tax Act of 1999" requires the 8% sales tax of goods and services (per Beltraide - Investment Guide; slightly more up to date than most of the other online information sites). My builder says the government requires the collection of the tax. Pedro 1 says it isn't so. I am still checking, but my guess is that the tax is in the law and therefore valid.
I am building a house,hostel and a couple of other projects and I know the law(why would I lie?).Perhaps you should check with people who have nothing to gain out of your lack of knowledge(this is what the message board is designed for,and is not written to be rude).I also live here have residency and deal with town and govt laws.I asked you who your builder/contractor is to no avail-waste your money if you want(it is yours to do as you wish,but do not ask questions on the board you do not want the true answers to)-all sales taxes are paid on the goods before they ever arrive on the island,and the taxes vary enormously from household to luxury goods to goods of necessity Peter
Wow, I should have known that was coming! I answered the question about the builder in the "Retire in Belize" thread, where the question was asked. Regarding the tax law, I have your interpretation (which I thank you for), that of the builder, and what I have read on the government affiliated internet sites. As yet I do not have enough information to make a totally informed decision about how I wish to proceed on this. Perhaps there is a certain amount of flex with regard to the payment of the sales tax, and this builder just chooses to pass it through to the buyer. What difference does it make if I pay it separately, or it just ends up in a higher price per square foot of construction cost? Until I have a better understanding of the situation I would prefer not to insist that the builder is wrong and jeopardize a good working relationship. I intend to explore this further, although discretely. Thanks for your input.
OK - I may have been a little offhand but my builder assures me as does Belmopan that I only have to pay on labour.If you think about it the builder buys the commodities with your money pays sales tax (or whichever tax is applicable)and then you pay it again-this seriously is crackers,and the govt say 5% on labour -nowhere is there an 8% tax which is payable to Benny's and this has to be paid there and then or on contract(on building supplies etc. sales tax is always inclusive)
The producer of a good or service has to add the sales tax; restaurants produce meals, so sales tax, labour on construction is production, so sales tax, an article in a shop didn't get produced by the shop, so the sales tax has already been paid (probably by the shop owner), and it is calculated in the price, a Beliken beer has not been produced by the bar, so no sales tax.