Sales Tax Eighth Schedule – Reduced rates
Listed goods are taxed at rates below the 18% standard rate, subject to the conditions in each entry.
Who it applies to
Suppliers and importers of the listed goods that meet the conditions
Rates and limits
| Item | Rate / rule |
|---|---|
| Rate | As listed for each entry (below 18%) |
| Conditions | Each entry sets its own conditions, such as user, certificate or sector |
| Input tax | Often restricted by the entry; excess input is generally not refundable |
| With the Third Schedule | Goods in both are taxed at the Eighth Schedule rate on retail price |
How it works in practice
Check the exact entry, its PCT heading and its conditions before invoicing at a reduced rate. In an audit, a wrong reduced rate leads to recovery of the difference, plus default surcharge and penalty.