PRESS RELEASE

GRA updates IPED on VAT Implementation process

The Guyana Revenue Authority (GRA) will be introducing a new Taxpayer Identification Number (TIN). This was related to representatives of the Institute of Private Enterprise Development (IPED) yesterday at their office on South Road. GRA Officials met with IPED to inform them of the progress to date with the Value-Added Tax (VAT) and Excise tax (ET) implementation process.

The TIN will be issued to and used by all VAT Registrants for all business transactions with the GRA. July 1, 2006 is set as the implementation date for TIN while the registration date for VAT and ET is set for October 1, 2006. Deputy Commissioner-General of the GRA, Mr. Clement Sealey reminded IPED that the new implementation date for the VAT and ET is January 1, 2007. Implementation was shifted from July 1, 2006 to the new date, giving all stakeholders additional time to prepare.

The legislation and supporting Regulations for the two taxes are in place. The rate of the VAT is 16% and the registration threshold for tax is set at ten (10) million dollars. Schedules I and II of the VAT Act list those items that will attract a zero rate (0%) of VAT and items that will be exempt from VAT respectively. VAT is not an additional tax as it will replace eight (8) of the existing taxes: Consumption Tax (the major one), Hotel Accommodation Tax, Entertainment Tax, Travel Voucher Tax, Purchase Tax, Telephone Tax, Service Tax and Premium Tax. The VAT was designed primarily to recoup the revenue that would be lost when the eight taxes are repealed.

IPED representatives were assured that administrative measures are being put in place for the efficient operation of VAT. The GRA is in the process of implementing an integrated IT system to facilitate and support the tax administration and revenue collection activities of the organization. The Organizational Structure for the Administration of the VAT and ET is in place. The VAT will be administered separately. The main office of the new department is situated at 210E Charlotte and Albert Streets, Bourda.  VAT Officers will also be placed at the existing GRA Regional Offices, including those in New Amsterdam, Corriverton, Essequibo and Linden. Staffing for the VAT Department will commence this month, while training is ongoing. The VAT Implementation Team has moved to the Albert Street location.
Mr. Sealey stated that the Public Relations (PR) Campaign for VAT and ET would be intensified. Several seminars, meetings, newspaper articles, radio and television talk shows and information bulletins among other things are schedule for the remainder of the time leading up to VAT and ET Implementation. A PR Consultant has been hired to assist with the dissemination of information.