PRESS RELEASE

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) by the VAT Implementation Team Wednesday last at IPED’s South Road office. GRA Officials met with IPED to inform them of the progress-to-date with the Value-Added Tax (VAT) and Excise Taxes implementation.

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. Mr. Sealey reiterated that VAT is not an additional tax since it will be replacing 8 of the existing taxes: Consumption Tax, Hotel Accommodation Tax, Entertainment Tax, Travel Voucher Tax, Purchase Tax, Telephone Tax, Service Tax and Premium Tax. The Consumption Tax is the largest of the taxes being replaced. VAT was designed primarily to recoup the revenue that would be lost when the eight taxes are repealed.

Mr. Sealey assured IPED representatives that administrative measures are being put in place for the efficient operation of VAT. GRA is currently in the process of implementing an integrated IT system to facilitate and support the tax administration and revenue collection activities of the organization. He also told those present that the organizational structure for the administration of the VAT and Excise taxes is in place as well as a new office, which is situated at 210E Charlotte and Albert Streets, Bourda.

In addition to the central location, VAT Officers will also be placed at the existing GRA Regional Offices, including those in New Amsterdam, Corriverton, Essequibo and Linden. Recruitment for the VAT Department will commence this month, while training is ongoing.
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.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 VAT rate 16 percent, while the registration threshold is set at $10 M. Schedules I and II of the VAT Act list those items that will attract a zero rate of VAT and items that will be exempt from VAT respectively. Recently, Parliament passed an Amendment to the Income Tax Act in order to allow for the application of TIN as a legal requirement for people who conduct businesses with various Government agencies.