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4.   Supply

Revised Laws of Saint Lucia (2021)

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4.   Supply

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    (1)   Subject to this Act —

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      (a)     “a supply of goods” means —

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        (i)     a sale of goods, or

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        (ii)     a grant of the use or right to use goods, whether with or without a driver, pilot, crew, or operator, under a rental agreement, credit agreement, freight contract, agreement for charter, or other agreement under which such use or right to use is granted, or

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        (iii)     transfer or provision of thermal or electrical energy, heat, gas, refrigeration, air conditioning, or water.

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      (b)     “a supply of services” means anything done which is not a supply of goods or money, including —

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        (i)     the granting, assignment, cessation, or surrender of a right,

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        (ii)     making available a facility or advantage, or

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        (iii)     refraining from or tolerating an activity.

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    (2)   The disposition of a taxable activity as a going concern, or a part of a taxable activity that is capable of separate operation, is a supply of goods made in the course or furtherance of such taxable activity.

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    (3)   For the purposes of subsection (2), a taxable activity or a part of a taxable activity capable of separate operation is disposed of as a going concern where —

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      (a)     all the goods and services necessary for the continued operation of that taxable activity or that part of a taxable activity are supplied to the transferee; and

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      (b)     the transferor carries on, or is carrying on, that taxable activity or that part of a taxable activity up to the time of its transfer to the transferee.

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    (4)   A supply of goods for goods or services is a supply of goods.

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    (5)   A supply of services for goods or services is a supply of services.

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    (6)   Subject to subsections (17) and (21), the application by a taxable person of goods or services acquired for use in a taxable activity to a different use, including the provision of goods or services to an employee for personal use, is a supply of those goods or services by the taxable person in the course or furtherance of that taxable activity.

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    (7)   Where goods are repossessed under a credit agreement, the repossession is a supply of the goods by the debtor under the credit agreement to the person exercising the right of repossession, and where such debtor is a registered person the supply is made in the course or furtherance of the debtor's taxable activity unless such goods did not form part of the assets held or used by the debtor in connection with that activity.

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    (8)   Where a lay-away agreement terminates or is cancelled and the seller retains an amount paid by the purchaser or recovers an amount the purchaser owes under the agreement, the cancellation or termination is a supply of services by the seller in respect of the agreement.

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    (9)   The placing of a bet by a person with another person operating a game of chance is a supply of services by the person operating the game of chance to the person placing the bet.

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    (10)   A supply of services incidental to a supply of goods is part of the supply of goods.

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    (11)   A supply of goods incidental to a supply of services is part of the supply of services.

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    (12)   A supply or import of services incidental to an import of goods is part of the import of goods.

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    (13)   The Minister may by Regulations provide that a supply of goods and services is a supply of goods or a supply of services.

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    (14)   Where a supply consists both of a supply that is charged with tax at a positive rate and —

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      (a)     a supply charged with tax at a zero rate; or

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      (b)     an exempt supply,

each part of the supply is treated as a separate supply if reasonably capable of being supplied separately.

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    (15)   A supply of services by an employee to an employer by reason of employment is not a supply.

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    (16)   The transfer of goods to a person acting in a representative capacity to the transferor is not a supply.

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    (17)   Where a taxable person supplies goods or services and that person was not entitled to claim a deduction for input tax imposed and paid on the acquisition of such goods or services, the supply by the taxable person is a supply of goods or services otherwise than in the course or furtherance of a taxable activity.

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    (18)   Where a supply described in subsection (2) was charged with tax at the rate of zero per cent in terms of paragraph 2(1)(i) of Schedule 1, the acquisition of the taxable activity is a supply by the recipient in the course or furtherance of a taxable activity carried on by the recipient to the extent that the goods and services comprising the taxable activity were acquired for a purpose other than consumption, use, or supply in the course of making taxable supplies, unless this purpose relates to less than 10% of the total taxable activity.

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    (19)   Where a right to receive goods or services for a monetary value stated on a token, voucher, gift certificate, or stamp, other than a postage stamp authorised under the Post Office Ordinance is granted for a consideration in money, the issue of such token, voucher, gift certificate, or stamp is not a supply, except to the extent, if any, that such consideration exceeds that monetary value.

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    (20)   Subsection (19) does not apply to a phone card, prepayment on a cellular phone, or a similar scheme of advance payment for the supply of goods or the rendering of services.

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    (21)   A person whose registration is cancelled under section 14 is deemed to have made a taxable supply in Saint Lucia of —

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      (a)     except as provided in paragraph (b), the value of goods on hand; and

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      (b)     the value of capital goods for income tax purposes, as if those capital goods were sold,

on the date the registration is cancelled, but only if an input tax deduction was claimed with respect to the goods or services.

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    (22)   Notwithstanding subsections (10) and (12) a supply of immovable property does not include the supply of services incidental to that supply or the import of services incidental to that supply.

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    (23)   The Minister may by Regulations prescribe rules to determine whether a transaction constitutes a supply for the purposes of this section.

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