After one month of VAT…
Progress satisfactory but major challenges ahead - Sattaur
Kaieteur News
February 2, 2007
One month after the implementation of the Value Added Tax (VAT) , Commissioner General Kurshid Sattaur says although he is satisfied with the progress, a number of major challenges remain to be surmounted.
Among them is the over 1000 persons who are eligible for registration, but have failed to comply.
These persons, the Commissioner General reports, were previously operating out of GRA's spectrum.
However, with this information at hand, the GRA will take the necessary actions to ensure compliance, Sattaur said.
He noted that to date, more than 2,000 businesses are registered with the VAT Department and authorized to charge VAT. These include 322 registrants in the various regions: Region Six (East Berbice/Corentyne) 162; Region Two ( Pomeroon/Supenaam) 98; Region Ten (Upper Demerara/Upper Berbice) 30; Region Seven (Cuyuni/Mazaruni) 23; Region One (Barima/Waini) 4 and Region Nine (Upper Takutu/Upper Essequibo), 5.
The GRA head believes that one of the critical aspects of VAT is the maintenance of proper books and records. He noted 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 reiterated that the GRA will spare no effort in taking the necessary actions against persons who fail to keep proper books and records.
Proper record keeping, Sattaur noted, not only aids in the effective administration of taxes by the GRA but also contributes to effective business operations.
VAT registrants have 15 working days in the new month to file their VAT returns with the GRA and also to pay any VAT owing to the Government. The deadline for January returns and VAT payments is February 21.
The department report that yesterday, the first VAT Return was received from Aubrey Changlee, Managing Director of Project Design and Construction.
He is quoted as saying that because of effective record keeping and help and assistance from the VAT Office there was no difficulty in completing the return.
“It only took about a minute-and- a-half,” Mr. Changlee said.
The GRA, through the filing of VAT returns, has been 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 has mailed hundreds of VAT Return packages.
Persons who have not yet received one are encouraged to visit the VAT Department, Albert and Charlotte Streets, or the GRA regional branch offices to uplift one.