What about amounts less than a dollar?
Vat Corner
Stabroek News
January 20, 2007
Dear Editor
How should amounts of VAT less than a dollar be treated, should they be rounded up, down or some other treatment?
Eg If I have a consideration of 8793 on a standard rated item, 16% is 1406.88; how should the 0.88 be dealt with?
Yours faithfully,
Patrick van Beek
We are not aware of any provisions in the tax or banking laws to deal with rounding. Section 18 (1) of the Bank of Guyana Act, 1998 states that "the unit of currency of Guyana shall be a dollar to be known as the Guyana dollar." The general principles of rounding will therefore apply and in the transaction given as the example, $1,407 would be payable.
Ram and McRae
Questions from members of the public on VAT can be sent in writing to Stabroek News at 46-47 Robb Street, Lacytown or emailed to stabroeknews@stabroeknews. com. They will then be answered by Ram and McRae.