A 1% special levy on the supply of goods and services and imports

The Act imposes a special levy, the COVID-19 Health Recovery Levy (the Levy), on the supply of goods and services and imports to raise revenue to support COVID-19 expenditures and provides for related matters.

The imposition of the Levy is on the supply of goods or services made in the country, and on the import of goods or services, unless exempt. The rate of the Levy is 1% and it is calculated on the value of the taxable supply of goods or services or on the value of imports. The time of supply is the same as provided in the Value Added Tax (VAT) Act, 2013, Act 870 (as amended). A person who charges the VAT flat rate is also required to charge the Levy on the supply of goods or services.

Source EY

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