Poor record keeping continues to hinder VAT returns
Kaieteur News
February 14, 2007
The Guyana Revenue Authority (GRA) is urging Value Added Tax (VAT) registrants and businesses to make an ardent effort to maintain proper books and records.
This is not only a requirement of the VAT law but the GRA noted that it aids in the efficient management of business operations.
The GRA believes that the slow response to VAT Returns so far is largely attributable to businesses not having substantial records of their business transactions.
Commissioner-General Mr. Khurshid Sattaur strongly believes that the VAT will strengthen accurate record-keeping by businesses which will not only aid in the GRA effectively administering VAT, but other taxes as well.
It is for this reason, Sattaur believes, that some businesses are still opposed to the introduction of VAT which will expose their real turnover and determine their true tax liability.
With the introduction of VAT, Sattaur said, the GRA has already begun to identify businesses that were previously “out of the tax radar.”
Based on consumer complaints, however, one of the major challenges the GRA says it encounters is that of accurate records by VAT registrants. With more than one month into the implementation of VAT, consumers continue to complain that some businesses are not issuing invoices (receipts).
Recently, GRA staffers were on hand to witness a reckless tax dodging practice when a business failed to issue a receipt. Several of these cases have been reported to the GRA, which it is investigating.
VAT registrants are also being reminded that it is their obligation under the VAT law to maintain accurate accounting records including invoices. Failure to do so may result in civil or criminal penalties ranging from fines to imprisonment.
Meanwhile Assistant Commissioner of Operations, Bridget Abraham is urging persons to avoid the late rush by filing their returns and making their payments early.
VAT Returns and payments can be made in Georgetown at Customs House, Main Street , Internal Revenue, GPO Building and the VAT and Excise Tax Department, Albert and Charlotte Streets.
For VAT registrants in the outlying Regions, VAT Returns and payments can be made at GRA Regional branch offices at Anna Regina, Region Two, (Pomeroon/Supenaam), New Amsterdam and Corriverton, Region Six (East Berbice/Corentyne) and Linden, Region Ten (Upper Demerara/Upper Berbice).
The deadline for VAT payments and returns is February 21, 2007.
The GRA held several advisory visits during which it provided assistance to VAT registrants to file VAT returns in addition to up-keeping other obligations under the VAT law.
Further, the GRA held several workshops on Accounting for VAT for VAT registrants last year and earlier this year. This process is currently ongoing in Lethem and other regions.
Persons who have queries are encouraged to call 227 7929 or visit the VAT Office in Georgetown or regional branch offices of the GRA.