Frequently Asked Questions (FAQ’s)
General:
Why should I register to pay taxes?
Collecting taxes is a fundamental way for countries to generate public revenues that make it possible to finance investments in human capital, infrastructure, and the provision of services for citizens and businesses.
Who can register for eRegistration?
All persons sixteen (16) years and older are required to register.
What is the difference between eRegistration and E-Filing?
eRegistration is an online process for a Taxpayer to register for a Tax Identification Number (TIN). E-Filing is a method for filing tax returns where the Taxpayer’s information is transmitted to the Inland Revenue Department electronically over the Internet.
What are the benefits of E-Filing?
E-Filing can be done from any place at any time. It is simple, easy, safe, secure, convenient and efficient. It is an effective way to view and update your taxes. It saves time and you are able to access information regarding your account (payments and queries) at any time and from any place.
What is a TIN?
TIN stands for Taxpayer Identification Number. It is a computer generated number issued to individuals, businesses or corporations transacting business with the Inland Revenue Department.
How long does it take to prepare and transmit an electronic tax return?
The more the employees, the longer the tax return will take to prepare, however, transmitting will takes a few minutes.
Is electronic filing secure?
Yes, only the person filing and the officers of the Inland Revenue Department will have access to your information.
Can all tax forms be filed electronically?
Currently only Payroll Tax, Hotel Accommodation Tax, Motor Vehicle Rental Tax and Cheque Duty can be filed electronically.
Why should I electronically file my tax return?
Electronic filing saves you time, can be done at your convenience, no standing in long lines and Taxpayer’s have easy 24/7 access to their tax information.
Is electronic filing completely paperless?
Yes, E-Filing is completely paperless.
What form of payment are offered online?
o Credit Card
o Debit Card
o Wire Transfer
When should payments be made?
Payments should be made Monday to Friday 9:00am to 3:30pm. Any payments made after 3:30pm will be processed the following working day.
What if the tax due date falls on a weekend or legal holiday?
The payment should to be made on the working day preceding the weekend or legal holiday.
Can I electronically file an amended return?
Yes, you can file an amended return where necessary.
Can I submit more than one return for the same filing period?
No, you cannot submit more than one return for the same filing period.
I am filling out my return and I encounter a problem; what should I do?
You can contact the Taxpayer Services Unit at the Inland Revenue Department, at 1-284-468-2154/2155 between the hours of 8:30am to 4:30pm or send an email to bvitaxes@gov.vg.
How do I know if my return has been processed?
You will receive a confirmation email and you can view the status online.
Why is it necessary to register for a TIN?
The TIN is necessary to access the E-Filing database for the submission of the monthly and annual returns. The TIN identifies you as a Taxpayer.
Where can taxpayers register for a TIN?
Taxpayers will be able to register online or visit any Inland Revenue Department office.
What happens if I do not pay my taxes?
It is an offence if you do not pay your taxes and legal actions can be brought against you.
What if I am unable to pay my taxes on time?
If you fall in to financial difficulties, you can contact the department to speak with the Collection Unit to arrange a payment plan at 1-284-468-2154/2155 between the hours of 8:30am to 4:30pm or send an email to bvitaxes@gov.vg.
Can I save my return online and finish it at a later time?
Yes, you can save your work and complete the return later by selecting Save. Once you select Submit, you will not be able to make any changes.
If I receive a Notice of Assessment and I do not agree with it what can I do?
If you disagree with an Assessment Notice, you are required to submit a letter of objection to the Commissioner of the Inland Revenue Department. The letter must outline the grounds for the objection.
What is a Good Standing Certificate?
A Good Standing Certificate is a document stating the business tax status. In order for a business to be in good standing, all required documents and payments should be up to date.
What are the requirements to obtain a Certificate of Good Standing?
o A copy of a current Trade License. The name on the Trade License would be the name on the certificate.
o The fee of Fifty Dollars ($50.00) per certificate.
o All taxes outstanding must be fully paid.
o All documents (tax forms) outstanding must be submitted.
What is a Certificate of Earnings?
A Certificate of Earnings is a document stating employees’ year to date salaries and year to date taxes paid.
What documents are required to obtain a Certificate of Earnings?
A valid government identification (Driver’s License or Passport)
Payroll Tax:
What should I do if I change my job?
You will provide the new employer with your Tax Identification Number (TIN).
Do I pay Payroll Tax if I am self-employed?
Yes, payroll taxes are payable on self-employment.
Do I pay Payroll Tax if I have a part-time job?
Yes, all part-time employees must pay tax.
How much of my salary is tax exempted?
You are allowed a Ten Thousand Dollar ($10,000.00) exemption annually.
Do I pay Payroll Tax if I have a hobby that I earn money from?
Yes, once you receive an income, taxes are deductible.
Do I have to pay Payroll Tax after the retirement age?
Yes, once you receive an income, taxes are deductible.
As a retiree, do I still have to file a payroll tax return?
Every individual is liable to pay tax once that individual is engaged in any taxable activity. There is no age limit on paying taxes.
Is the income I receive overseas taxable in the British Virgin Islands?
No, only income earned in the British Virgin Islands is taxable in the British Virgin Islands.
Who do I pay?
Taxes are paid to the Inland Revenue Department. If paying by cheque, all cheques are to be issued to the Accountant General.
What are the documents required to register for tax registration?
Statutory Body
• Legislation/Act
Company
• Trade Licence
• Memorandum of Understanding
• Certificate of Incorporation
Limited Partnership
• Trade Licence
• Partnership Agreement
• Certificate of Formation
General Partnership
• Trade Licence
• ID for all Partners (Passport or Drivers Licence)
DBA (Doing business as)
• Trade Licence
• ID (Passport or Drivers Licence)
Domestic
• ID (Passport or Drivers Licence)
Ecclesiastical (Limited)
Employer Tax Exempt
• Trade Licence
• Memorandum of Understanding
• Certificate of Incorporation
• Non-profit Certificate
Ecclesiastical (dba)
Employer Tax Exempt
• Trade Licence
• ID (Passport or Drivers Licence)
• Non-profit Certificate
Educational Institution of a Public Character
(Employer Tax Exempt)
• Trade Licence
• Certificate of Approval (Department of Education)
• Memorandum of Understanding (If applicable)
Educational Institution (Private)
• Trade Licence
• Certificate of Approval (Department of Education)
• Memorandum of Understanding
Non-Profit Organization
• Trade Licence
• NPO Certificate
• Bylaws
Charity
(Employer Tax Exempt)
• Trade Licence
• NPO Certificate