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(1) A taxable person who deals in locally procured used goods may apply to the Commissioner-General for approval to charge the tax on the difference between the buying price and selling price of certain used goods subject to the condition that no input tax shall be taken on any goods purchased for resale, and a permanent record will be kept showing

(a) in respect of purchases,

(i) the date of the purchase;

(ii) the name and full address of the person from whom the goods were purchased;

(iii) a sufficient description of the goods to clearly identify them, including part and serial numbers, if any; and

(iv) the total amount paid; and

(b) in respect of sales,

(i) the date of sale;

(ii) the name of the full address of the person to whom the goods are sold to;

(iii) the selling price, exclusive of the tax;

(iv) the difference between the purchase price and the selling price;

(v) the rate of the tax;

(vi) the amount of the tax on the difference; and

(vii) the total amount received.

(2) The details specified in subregulation (1) shall be recorded at the same time as the respective purchase or sale is made.

(3) Where a taxable person has been granted approval by the Commissioner-General to use the subtraction method, a sales receipt provided for in regulation 22 shall be issued in place of a tax invoice.

(4) Where the transaction involves used goods and is between two registered persons, the normal method for accounting for the tax shall apply.

(5) If the registered person using the subtraction method described in this regulation fails to maintain satisfactory records that registered person shall be required to account for the tax on the full selling price of the goods sold and pay the amount of the tax with the next tax return.