Investment

Duty Exemption

The primary legislation that provides benefits and incentives to investors in the tourism and hospitality sector in Vanuatu is the Customs Duty Exemption Act. The Act clearly states that the Director of Tourism may approve duty exemption of customs duty for goods imported exclusively for the construction of new hotels or resorts, Or renovation and expansion of an existing resort, Or an addition of a minimum of 10 rooms, Or new facilities to include a casino, gym and conference facilities.

Documents required for Customs Import Duty Exemption are:

•  Copy of Business Plan/Proposal
•  Copy of Architectural design if intending on building a resort/ guest house etc...
•  Copy of Environmental Impact Assessment (EIA) report
•  Copy of VIPA Approval Certificate if it is a Foreign Investor
•  Copy of Business License
•  List of items to be imported overseas.
•  An administration fee of VT 12,000

The Department will liaise with all the other government agencies to assist investors to access the benefits available within existing tourism development legislation. Developers may access tax concessions under the Customs Import Duty Exemption Act Part III in the following process:

• Filling in an application form and submit to the Department of Tourism for approval.
• Approval letter is submitted to Department of Customs.
• Once the application is approved it has to be managed within the scope of relevant laws.
• Any approval is valid for only one year but subject to renewal if project continues into the following year.