s 94 Temporary arrangements for reverse charge supplies: distantly taxable goods
94.—(1) Where an invoice for a supply in fact made that gives rise to a reverse charge supply of distantly taxable goods was or is issued on or after 16 February 2021 but before 1 January 2023, tax is chargeable on the reverse charge supply to the extent of —(a) the amount of the invoice paid on or after 1 January 2023; or (b) the value of the distantly taxable goods that are delivered on or after 1 January 2023, if lower.[Act 35 of 2022 wef 01/01/2022] (2) Subsection (1) does not apply if the whole amount of the invoice is paid, or the whole of the goods to which the invoice relates is delivered, before 1 January 2023.[Act 35 of 2022 wef 01/01/2022] (3) Where an invoice for a supply in fact made that gives rise to a reverse charge supply of distantly taxable goods is issued on or after 1 January 2023 —(a) tax is chargeable on the reverse charge supply to the extent of the amount of the invoice paid on or after that date; but (b) the recipient may elect for the tax to be chargeable only to the extent of the value of the goods that are delivered on or after that date, if lower.[Act 35 of 2022 wef 01/01/2022] (4) Despite subsection (3), where an invoice for a supply in fact made that gives rise to a reverse charge supply of distantly taxable goods is issued on or after 1 January 2023 but before the day on which the person receiving the supply is registered in accordance with the First Schedule —(a) tax is chargeable on the reverse charge supply to the extent of the amount of the invoice paid on or after the day on which the person receiving the supply is registered in accordance with the First Schedule; but (b) the person may elect for the tax to be chargeable only to the extent of the value of the goods that are delivered on or after 1 January 2023, if lower.[Act 35 of 2022 wef 01/01/2022] (5) Subsections (3) and (4) do not apply if the whole amount of the invoice is paid, and all of the distantly taxable goods are delivered, on or after 1 January 2023.[Act 35 of 2022 wef 01/01/2022] (5A) Subject to subsections (8A), (8B) and (8C), tax is chargeable under subsections (1), (3) and (4) at the tax rate of 8% on the chargeable value of the supply.[Act 35 of 2022 wef 01/01/2023] (6) Tax chargeable under subsection (1) must be accounted for in the return for the accounting period in which the later of the following falls:(a) 1 January 2023; (b) the day on which the recipient is registered in accordance with the First Schedule. (7) Tax chargeable under subsection (3) must be accounted for in the return for the accounting period in which the earlier of the following falls:(a) the invoice for the reverse charge supply of distantly taxable goods is issued; (b) the consideration for the amount of the invoice is paid by the recipient. (8) Tax chargeable under subsection (4) must be accounted for in the return for the accounting period in which the consideration for the amount of the invoice is paid on or after the day on which the person receiving the supply is registered in accordance with the First Schedule. (8A) Where —(a) the invoice for a supply under subsection (3) or (4) is issued on or after 1 January 2024; and (b) any consideration for the supply remains to be paid, or any part of the supply remains to be performed, on or after 1 January 2024, then tax is chargeable — (c) at the tax rate of 8% on the part or the whole of the chargeable value of the supply that is treated as taking place under section 11C before 1 January 2024; and (d) at the tax rate of 9% on the part or the whole of the chargeable value of supply that is treated as taking place under section 11C on or after 1 January 2024.[Act 35 of 2022 wef 01/01/2023] (8B) Despite subsection (8A) —(a) the taxable person or person (as the case may be) may elect for tax to be chargeable at 8% on the higher of —(i) the amount of any consideration paid on or after 1 January 2023 but before 1 January 2024, less any amount of the consideration attributable to the part of the supply performed before 1 January 2023; and (ii) the value of the part of the supply performed on or after 1 January 2023 but before 1 January 2024; and (b) (if the taxable person or person so elects under paragraph (a)) tax is chargeable at 9% on the chargeable value of the supply less the amount of the consideration or the value on which tax is charged at 8% under paragraph (a).[Act 35 of 2022 wef 01/01/2023] (8C) Where —(a) the invoice for a supply under subsection (1), (3) or (4) is issued before 1 January 2024; and (b) any consideration for the supply remains to be paid, or any part of the supply remains to be performed, on or after 1 January 2024, then tax is chargeable — (c) at 9% on the lower of —(i) the amount of consideration paid on or after 1 January 2024; and (ii) the value of the part of the supply performed on or after 1 January 2024, or (if the amount and value are the same) on either of them; and (d) at 8% on the chargeable value of the supply less the amount of consideration or the value on which tax is charged at 9% under paragraph (c).[Act 35 of 2022 wef 01/01/2023] (8D) Sections 39D, 39E and 39F apply to the cases in subsections (8B) and (8C) as if —(a) a reference in those sections to section 39B were a reference to subsection (8B); and (b) a reference in those sections to section 39C were a reference to subsection (8C).[Act 35 of 2022 wef 01/01/2023] (9) For the purposes of this section, where only a part of the distantly taxable goods is delivered, the value of the part is a value that is, in the opinion of the Comptroller, reasonably attributable to the part.[Act 35 of 2022 wef 01/01/2022] (10) [Deleted by Act 35 of 2022 wef 01/01/2023] (11) For the purposes of paragraph 1B(1)(b) and (2)(b) of the First Schedule, references to supplies of distantly taxable goods received by a person do not apply for the purposes of any 12‑month period mentioned in those provisions that commences before 1 January 2023.[Act 35 of 2022 wef 01/01/2022] (12) For the purpose of paragraph 1B(2)(a) of the First Schedule in relation to a business transferred before 1 January 2023, references to supplies of goods and services received by the transferee do not include any supplies of distantly taxable goods received by the transferee before 1 January 2023.[Act 34 of 2021 wef 01/01/2022] (13) In this section, “chargeable value”, in relation to a supply, means the amount of the invoice or the value of the distantly taxable goods on which tax is chargeable under subsection (1), (3) or (4), as the case may be.[Act 35 of 2022 wef 01/01/2023] (14) In this section, a reference to a part of a supply being performed before, or on or after, a specified date is a reference to —(a) for a supply of goods — the delivery of the part of the goods before, or on or after, that date, as the case may be; and (b) for a supply of services — the part of the performance of the services before, or on or after, that date, as the case may be.[Act 35 of 2022 wef 01/01/2023] (15) Unless otherwise specified, this section applies despite anything in —(a) section 11C; or (b) Division 1 of Part 6A.[Act 35 of 2022 wef 01/01/2023]