Just over 900 businesses still VAT delinquent
Stabroek News
December 29, 2006
Seemingly unmoved by the impending penalties and fines, just under 1,000 businesses of the targeted 2,500 are still to register for the Value Added Tax (VAT) as of yesterday, and given that today is the last working day in the year it is not likely that they will complete registration before the Sunday deadline.
VAT comes on stream on Monday, January 1, 2007 at a standard rate of 16%, replacing consumption, service, hotel accommodation, entertainment, purchase and telephone taxes. The government has reinstated the travel voucher and premium taxes, which VAT was also expected to replace.
Commissioner General of the Guyana Revenue Authority (GRA), Khurshid Sattaur said during a press briefing at his Lamaha Street secretariat yesterday that some 1,393 businesses have received VAT registration certificates, while another 133 had registered but their certificates were not printed. And another 30 certificates are to be issued to businesses that have completed voluntary registration. These are businesses with an annual turnover of less than the $10M required for compulsory registration but which have fulfilled the necessary requirements. Total registration as of yesterday was 1556, 944 short of the targeted 2500 businesses.
"There have been quite a number of voluntary applications. However, some have been declined because the GRA has to be confident that those applicants are able to maintain adequate records, submit monthly returns and have a fixed place of business," the Commissioner General said.
Sattaur cautioned again that businesses with an annual turnover of $10M which have not registered could face penalties and fines and could also be taken to court.
"If those businesses that are required by law to register fail to do so before December 31, 2006, the Commissioner-General will register them," adding that there will be penalties associated with late registration. No provisions were made to extend the deadline for registration.
The GRA again urged those persons who have filed registration applications and have not yet received their registration certificates to visit the VAT office at Albert and Charlotte streets to uplift their certificates.
The Total Revenue Integrated Processing System (TRIPS), has been tested and is operational, Sattaur said and will be used at the airport and Customs House to carry out VAT processing. The GRA has procedures in place at the main ports of entry including the Cheddi Jagan International Airport (CJIA), Timehri and the wharves and Customs and Trade Administration on Main Street.
However, at the wharf and branch offices, calculations will be done manually until the Wide Area Network (WAN) becomes operational.
Come Monday, there will be officers on hand at the CJIA to ensure that the process goes smoothly. In addition, it was stated that customs officers continue to be trained to effectively administer the system and calculate VAT.
Sattaur said the GRA is adequately staffed to administer the tax and has 85% of the required staff. Auditors and enforcement officers are still to be hired. Over the past week the GRA has advertised vacancies existing in outlying areas and Sattaur said this was in preparation for merging tax units in these areas under WAN, instead of having separate customs and revenue units.
Although he did say that there were adequate systems in place to implement the tax in the outlying areas.
In the first weeks of the new year the GRA will continue its outreach to businesses to offer advice and assistance in the event that there are uncertainties and hiccups in the initial stages of VAT implementation.
Consumers' responsibility
The GRA is also advising all consumers to look for the registration certificate or ask if the business is registered. Consumers should also request a receipt or tax/sales invoice; report any suspected fraud to GRA; encourage their suppliers to register and know the amount of tax they should pay.
"Consumers are among the major stakeholders in the VAT system. While the government is committed to monitoring the system to ensure there is no undue hardship on consumers, we want to urge consumers to be vigilant so that they are not exploited or unconsciously contribute to tax fraud," Sattaur said.
He reiterated that all registered businesses must keep their tax and sales invoices; purchases and sales ledgers; summary of cash receipts and cash payments; till rolls and tapes; customs imports and export documents and any other related records for seven years. (Nicosia Smith)