1. Enhancing VAT Compliance Management in The Gambia
Presented by:
Mr. Essa Jallow -Deputy Commissioner General & Head of Domestic Taxes
Mr. Yahya Manneh - Deputy Director, Policy, Planning Research, Technical Services Dept.
Mr. Samba Sallah - Deputy Commissioner, Headquarter Functions, Domestic Taxes Dept.
Arch 22 in Banjul
The Gambia Experience

2. Outline of Presentation
Introduction
Overview of Legislation and Policies
Organization of Compliance Management Function
Compliance Enhancing Environment
Risk Management
Challenges and Opportunities
Revenue House, Banjul

3. Introduction
VAT is an indirect tax levied on the supply of most goods/services consumed and imported in The Gambia
Collected by registered persons and by Customs at points of sale and entry
Charged at each stage of the production and distribution process
Registrants recover much of the VAT paid and thus avoid the “tax on tax” characteristic of sales tax
A wide Registrant base results in less distortion of trade and a greater sharing of collection costs
A wide Registrant base creates more compliance challenges.
Stone circles in Wassu

4. Overview of Legislation and Policies
VAT Rates
- Standard Rate (15%)
- Zero Rated (0%)
- Exempt Supplies
Registration Threshold
- Compulsory; annual turnover of D1,000,000
- Voluntary; annual turnover of D500,000
- Mandatory Businesses (Entertainment
Promoters, Auctioneers)
Registration, Reporting and Payment Obligations
- Penalty for non-compliance with registration requirement
- Monthly filing and payment
- Penalties for late filing and payment
- Interest on late payments
Documentation
- Record keeping
- Minimum contents of business documents (invoices, receipts etc)
Salves Houses in James Island, Juffureh

5. Organization of Compliance Management Function
TIN Registration –(Registration Section, SMTU)
VAT Registration –(Taxpayer Service Section, HQF)
Registration Enforcement (Enforcement Sections, LTU & SMTU)
Filing (Returns Processing Section, LTU)
Payments (Department of Finance and Accounting)
Filing and Payment Enforcement – (Enforcement Sections, LTU & SMTU)
Effective Audit Program on VAT (Taxpayer Audit Unit)
Refund Application (VAT Rebate Section)
Refund Applications Processing (HQF)
Refund Payments (Department of Finance and Accounting)
Taxpayer Services (Direct taxpayer Assistance, Education & Sensitization)
Roots Homing Celebrated

6. Compliance Enhancing Environment
The simplicity of the VAT legislation
The cost of compliance
The availability and accessibility of client support
The adequacy of the tax laws to enforce compliance (eg garnishment, prosecution etc)
Proper enforcement structure (eg block allocation)
Roots Heritage site in Juffureh

7. Risk Management Registration Risk Management
- Monitoring of declared revenue around the registration threshold
- Comparing declared revenue with import volume
- Monitoring of payments through IFMIS
- Analysis of Enforcement Reports
Filing and Payment Risk Management
- Monitoring of Monthly Returns
- Analysis of filing and payment rates and patterns
Refund Claims Risk Management
- Verification of Eligibility
- Verification of supporting documents (claimants, invoices,
receipts etc)
Tourist paradise

8. Challenges and Opportunities
- Timely filing and payment
- Inadequate resources for taxpayer service delivery and enforcement activities
- High illiteracy rate
- Inadequate collaboration with other institutions and bodies
Non-issuance of receipts
Suppression of sales
Opportunities
- Low threshold rate allows for a wider coverage
- Potential benefits in closely collaborating with other institutions and bodies
Proud Culture and traditions

9. THE END
THANK YOU