Major VAT challenges still ahead
-- GRA head
Guyana Chronicle
February 2, 2007

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THE Guyana Revenue Authority (GRA) yesterday marked the first month of implementation of the Value Added Tax (VAT) with more than 2,000 businesses registered with the VAT Department and authorised to charge VAT.

The authority said these include 322 registrants in the various regions as follows: Region Six (East Berbice/Corentyne), 162; Region Two (Pomeroon/Supenaam) 98; Region 10 (Upper Demerara/Upper Berbice), 30; Region Seven (Cuyuni/Mazaruni), 23; Region One (Barima/Waini) four; Region Nine (Upper Takutu/Upper Essequibo), five.

GRA Commissioner-General, Mr. Khurshid Sattaur said that while the GRA is satisfied with the implementation process so far, there remain major challenges to be overcome in the next few months.

According to him, the work of the GRA has revealed that there are more than 1,000 persons who should have registered for VAT, but who have not yet done so. These persons, he said, were previously operating out of GRA’s tax spectrum.

However, with this information at hand, the GRA will take the necessary actions to ensure compliance, Sattaur said.

The GRA said he believes that a critical aspect of VAT is the maintenance of proper books and records, adding that he has been bombarded by reputable businesses for being too visible with the implementation of the VAT.

This, he feels, is because of the widespread tax evasion that previously existed, but which will now be easily detected by the GRA.

He said the GRA will spare no effort in taking the necessary actions against persons who fail to keep proper books and records. Proper record keeping not only aids in the effective administration of taxes by the GRA but also contributes to effective business operations, the authority said.

VAT registrants have 15 working days in the new month to file their VAT returns with the GRA and to pay any VAT owing to the government. The deadline for January returns and VAT payments is February 21.

The GRA said the first VAT Return was received yesterday from Mr. Aubrey Changlee, Managing Director of Project Design and Construction. He said because of effective record keeping and help and assistance from the VAT office, there was no difficulty in completing the return.

“It took about a minute-and-a-half,” Changlee said.

The GRA said that through the filing of VAT returns, it will be able to test its import records during the first month of implementation.

It is also undertaking various exercises to ensure that persons who are charging VAT remit the accurate amount to the GRA.

The Revenue Authority said it has mailed hundreds of VAT Return packages and persons who have not yet received one are encouraged to visit the VAT Department, Albert and Charlotte Streets, Georgetown, or the GRA regional branch offices to uplift one.