GRA starts receiving VAT returns
Stabroek News
February 2, 2007
The Guyana Revenue Author-ity (GRA) said Project Design and Construction Company was the first of five companies or individuals to submit VAT tax returns yesterday.
A GRA press release quoted Aubrey Changlee, managing director of Project Design, as saying that effective record keeping and assistance from the Value-Added Tax (VAT) office ensured that he had no difficulty completing the returns. Changlee said, "It took about a minute-and-a-half" to complete.
The GRA, through the filing of VAT returns, will be able to test its import records during the first month of implementation. It is also taking steps to ensure that persons who are charging VAT remit the accurate amount to the Authority.
Commissioner-General Khurshid Sattaur said "while the GRA is satisfied with the implementation process so far, there remain major challenges to be overcome in the next few months." Sattaur said there are more than 1000 persons who should have registered for the VAT but have not yet done so. These persons, he said, were previously operating out of the GRA's tax spectrum. Armed with this information, Sattaur said the GRA will take the necessary actions to ensure compliance.
The GRA said more than 2000 businesses have registered with the department and are authorised to charge the tax. These include 322 registrants in the following regions: Region Six (East Berbice/ Corentyne) 162, Region Two (Pomeroon/Supenaam) 98, Region Ten (Upper Demerara/ Upper Berbice) 30, Region Seven (Cuyuni/Mazaruni) 23, four in Region One (Barima/Waini) and five in Region Nine (Upper Takutu/ Upper Essequibo). The commissioner said the Authority has posted hundreds of VAT Return packages and advises persons who have not received one to visit the VAT department at Albert and Charlotte streets or the GRA regional branch offices to uplift one.
Sattaur said in order to make a smooth transition to operating VAT, businesses should make and maintain proper books and records. He said he has been bombarded by reputable businesses for being "too visible with the implementation of VAT."
This, he feels, is because of widespread tax evasion that existed that will now be easily detected under the new tax system. Sattaur reiterated that the GRA "will spare no effort in taking the necessary actions against persons who fail to keep proper books and records." The commissioner also said VAT registrants have 15 working days in the new month to file their returns with the GRA and also to pay any outstanding sums that they owe the government. The deadline for January returns and VAT payments is February 21.