Warning as VAT deadline nears
By Neil Marks
Guyana Chronicle
December 29, 2006
TODAY is the last working day before the Value Added Tax (VAT) comes into effect and head of the Guyana Revenue Authority (GRA), Mr. Khurshid Sattaur, says he is ready but is warning the 500-odd businesses not yet registered that they will have to face the penalties.
Additionally, he is calling on consumers to be vigilant so that they are not exploited.
The GRA will begin implementing VAT on January 1, charging the 16% rate on the specified goods, thereby abolishing six taxes, including Consumption Tax.
Sattaur said an estimated 2,500 businesses have to register, but as of yesterday, the GRA had issued only 1,393 with their certificates of registration, while another estimated 200 were ready to go out.
“We continue to solicit the support of businesses with a turnover of $10M to register before the December 31 deadline, as required by the VAT law,” he told reporters at his Lamaha Street, Georgetown office.
Sattaur noted that if businesses required by law to register fail to do so, he will register them. He explained that this will put them at a disadvantage since while they will have to pay VAT on goods being imported, they would be unable to deduct it from the customer.
In addition, he said, there will be penalties for accompanying late registration, which would include, according to the law, double payment of VAT.
Those persons who have filed registration applications but have not yet received their registration certificates are being asked to visit the VAT office at Albert and Charlotte streets, Georgetown to uplift their certificates.
Sattaur stated that it is the responsibility of businesses to get registered. Today, being the last working day is the last day for registration. The law does not provide for an extension.
During the coming weeks, Sattaur said, GRA officers will continue outreach activities to business to offer advice and assistance in the event that there are “uncertainties or hiccups.”
He said it is necessary that they keep records, these being tax and sales invoices, purchases and sales ledges, a summary of cash receipts and cash payments, till rolls and tapes, customs imports and export documents, and any other records.
Sattaur said the GRA has in place procedures at ports of entry, including at the Cheddi Jagan International Airport, Timehri, the wharves and the Customs and Trade Administration, Main Street, Georgetown, to administer VAT.
For the implementation, the GRA would be using the Total Revenue Integrated Processing System (TRIPS) which has been tested and is operational.
Sattaur said there will be officers on hand at the airport on January 1 to fix immediately any failures that might arise.
At the Georgetown wharf and the branch offices, VAT calculations will be done manually until the Wide Area Network (WAN) becomes operational, he said.
He said Customs officers continue to be trained to effectively administer the system and properly calculate the VAT.
According to Sattaur, while the government is committed to monitoring the system to ensure there is no undue hardship on consumers, they should be vigilant that they are not exploited or unconsciously contribute to tax fraud.
He said it is the responsibility of consumers to look for a registration certificate or to ask if the business is registered. He said consumers should also know how much tax they should pay and request a receipt if VAT is deducted.
“I want to assure you that the GRA is ready and will administer the VAT law to its fullest ability,” Sattaur stated.