Input tax credits

(1) If all of the supplies made by a taxable person during a tax period are taxable supplies, the person shall be allowed input tax credits for the purposes of section 31 for all of the input tax paid or payable by the person on acquisitions or importations made by the person during that period. (2) If none of the supplies made by a taxable person during a tax period are taxable supplies, the person shall be allowed input tax credits for such proportion, if any, as the Commissioner may consider to be fair and reasonable of the input tax paid or payable by the person on acquisitions or importations made by the person during the period. (3) If some, but not all, of the supplies made by a taxable person during a tax period are taxable supplies– (a) the person shall be allowed input tax credits for acquisitions or importations made by the person during the period solely for the purposes of making taxable supplies, whether or not those supplies will be made during that tax period; (b) the person shall not be allowed input tax credits for acquisitions or importations made by the person during the period solely for the purposes of supplies that are not taxable, whether or not those supplies will be made during that tax period; and 52 (c) the person shall be allowed input tax credits for all other acquisitions or importations made by the person during the period according to the following formulaA x B/C where, A is the total amount of input tax paid or payable for imports or acquisitions made by the person during the period, less the input tax accounted for under (a) and (b); B is the value of all taxable supplies made by the taxable person during the period; and C is the value of all supplies made by the taxable person during the period, other than supplies made through a business carried on by the person outside Belize. (4) Whether an acquisition or importation made in a tax period relates to making a particular kind of supply should be determined on the basis of the taxable person’s intention at the time of the acquisition or importation, but the taxable person may take account of actual use or a change in intention that occurs before the date on which the GST return for that tax period is required to be lodged.