Ministry issues VAT advisory
Guyana Chronicle
January 4, 2007

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THE Ministry of Tourism, Industry and Commerce yesterday said it has been observed that some stores did not have a VAT certificate on display which empowers them to collect VAT but have been collecting the 16% tax.

“This is illegal”, it stressed in an advisory issued through the Government Information Agency (GINA).

“There have been no adjustments to the 2006 prices and stores have been collecting 16% on products which should have been reduced due to the removal of the Consumption Tax. This is illegal”, it said.

According to the ministry, it was observed that from stores and supermarkets visited, Nigel's Supermarket, Bonny's Supermarket and Empire Shopping Plaza did not have a VAT certificate on display but were charging consumers 16% VAT on items purchased.

“With immediate effect, purchasers from Nigel's Supermarket who have paid VAT on zero rated items are asked to take their bills for a refund. After investigations the management of Nigel's Supermarket admitted to their oversight and will refund customers upon evidence of receipt”, the ministry said.

“We are investigating other entities that have charged VAT on zero rated items and are alerting customers to demand a refund immediately and contact the Consumers Affairs Division of the Ministry of Tourism, Industry and Commerce”, it said.

“Please note that this violation attracts a heavy fine and or imprisonment”, it said.

It advised consumers seeking redress or wishing to share any pertinent information to contact the Consumers Affairs Division at the VAT HOTLINE of the ministry on telephone number 225-5858.