Tonga VAT / GST

Consumption Tax (Tonga's VAT/GST equivalent)

Tonga operates a Consumption Tax (CT) under the Consumption Tax Act — a broad-based VAT-type tax on goods, services and imports. Rates and thresholds below are draft figures for confirmation.

• Standard Consumption Tax rate — 15% % (Consumption Tax Act)
• Scope — Applies to most goods and services supplied in Tonga and to imported goods (Consumption Tax Act)
• Exports — 0% % (Zero-rated; (approx — confirm)) (Consumption Tax Act)
• Exempt supplies — Certain supplies (e.g. financial services, and possibly specified essential items) are exempt ((approx — confirm exempt list)) (Consumption Tax Act)
• Compulsory registration threshold — 100,000 TOP (Annual turnover exceeding TOP 100,000 TOP) (Consumption Tax Act)
• Voluntary registration — Businesses below the threshold may register voluntarily (Consumption Tax Act)
• Return filing and payment — Due within 28 days after the end of the tax period (monthly or two-monthly category) ((approx — confirm)) (Consumption Tax Act)
• Input tax credit — Registered persons may credit CT paid on business inputs against CT charged on supplies (Consumption Tax Act)
• Consumption Tax on imports — 15% % (Charged on the value of imported goods at the border; (approx — confirm valuation base)) (Consumption Tax Act)