This ruling is issued pursuant to the authority granted under Section 84 of the Tax Administration Act (Law Number 3/2010) as amended by Law Number 14/2011. Unless otherwise stated, all legislative references are to the Goods and Services Tax Regulation (Regulation Number 2011/R-43) as amended by Tax Ruling Number 220-PR/TR/2011/8, TR-2012/G4, TR-2012/G5, TR-2012/G6, TR-2012/G7, TR-2012/G10 and TR-2012/G11. This ruling is legally binding.

Introduction

1. This ruling amends sections 109 and 114 of the Regulation.

Ruling

2. Amend section 109 of the Regulation as follows:

Displaying GST-inclusive price

(a) The value of a good or service displayed to customers shall include the amount of tax chargeable for such good or service, except under the conditions specified in subsection (b).

(b) A registered person who charges a service charge in relation to the supply of a good or service may display the price of such good or service exclusive of the amount of tax chargeable, in which case the price must be displayed in a manner in which customers can compute the total amount they must pay to the supplier in relation to such good or service.

(c) A registered person not falling within subsection (b) shall display prominently in the premises where his taxable activities are carried out, a notice which states that the value of goods and services displayed includes the amount of tax chargeable. This subsection shall have effect from 1 August 2013 to 31 December 2013.

(d) Notwithstanding subsection (a), a registered person may display the price of goods or services exclusive of the amount of tax chargeable until 31 July 2013, and such policy shall be displayed prominently in the premises where his taxable activities are carried out.

(e) A registered person may vary the pricing policy referred to in subsection (d) in relation to different goods and services supplied through the same taxable activity until 31 July 2013, in which case the policy in effect for a particular good or service at any time must be clearly displayed.

3. Renumber section 114 of the Regulation as 114(a), and insert a subsection (b) follows:

(b) A registered person that violates any requirement in this Regulation shall be subject to a penalty not exceeding MVR 2,000 (Two Thousand Rufiyaa), unless a penalty for such violation is prescribed in a tax law.

Date of Effect

4. This ruling shall take effect from its date of issue.