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Khurshid Sattaur
Commissioner General
Mission Statement
Our mission is to promote compliance with Guyana’s Tax, Trade and Border Laws and Regulations through education, quality service and responsible enforcement, thereby contributing to the economic and social well being of the people of Guyana. |
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Nadia De Abreu
Director - Corporate Communications Unit
Tel: (592) 227-3680
ext 222 |
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VAT Policy 33 – VAT and Zero-Rated Supplies
The Guyana Revenue Authority continues to provide clarifications concerning issues on Value Added Tax (VAT). This policy is intended to provide a better understanding of zero rated supplies and the items which are zero rated.
Zero-rated supplies are taxable, but at a rate of zero percent (0%) instead of sixteen percent (16%). The supply of goods and services that is zero-rated is specified in paragraph 2 of Schedule I.
Zero-rating is a positive tax treatment, thus businesses that provide zero rated supplies are entitled to input tax credit paid on purchases related to the zero-rated supply.
For example, if a registered grocery store sells milk, sugar and rice which are all zero rated, his output tax on the supply is nil (0). However, he can reclaim VAT paid on all supplies purchased for the grocery store, for example, VAT paid on transportation cost for the milk, sugar and rice.
Section 17 of the VAT Act requires a taxable person who makes a zero-rated supply to obtain and retain documentary evidence such as tax/sales invoices to verify that the supply is zero-rated.
In some instances, persons requiring zero rating benefit must apply to the Remissions Unit of the Guyana Revenue Authority (GRA).
Persons who require the list of zero rated items or still have queries with respect to VAT are encouraged to contact the Department on Telephone No. 227-7929, Extension (200) and (201); or write to the Commissioner, VAT and Excise Tax Department, 210’E’ Albert and Charlotte Streets, Bourda for clarifications.
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