New Caledonia introduces Consumption Tax

Thu 2nd Feb 2017

The Pacific French territory of New Caledonia is to introduce a General Tax on Consumption (TGC).

It follows the principles of VAT, including the ability for businesses to recover an input TGC through the production chain. Final implementation date will be 1 July 2018 – although there will be a limited trial period from 1 July 2017. There will be a registration threshold of CFP 25m and CFP 7.5m for goods and services, respectively.

The TGC rates will likely be: 22%; 11%; and 3%.  TGC replaces the existing import tax and service tax.

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