VAT Administration: January 8, 2007
The Guyana Revenue Authority (GRA) wishes to clarify issues being propelled by some sections of the business community relating to the administration and implementation of Value added Tax (VAT).

Firstly, some sections of the business community believe that the GRA seems to be out to victimize those who are in violation of the Law. The GRA wishes to state categorically clear that it has been working with the private sector and the business as early as 2004.

It is a lame excuse for businesses that they were uneducated about VAT. VAT was touted in the National Budgets some three years ago. Therefore, the GRA will administer and police the system in full respect of the law.

Secondly, it should be noted that VAT was slated for implementation in July 2006. It was the Private Sector that lobbied for a postponement so that they could put the necessary systems in place.

The GRA has dedicated tremendous time and resource to work with the private sector in the pre-implementation process.

The private sector proposed extensive training for its members for which the GRA was very supportive and willing to assist, however the GRA was never invited to facilitate such training.

The GRA nonetheless conducted grouped as well as individual educational and training visits with the business community across the country. During December, extensive training was held with VAT registrants at the Regency Hotel, in Georgetown.   This process is ongoing. Several advisory teams are in the field daily helping businesses to comply with the law. 

However, there are also defaulters and the GRA will ensure that the full force of the law takes effect.

In light of this, it is the view of the GRA that businesses had adequate time to prepare for this change.

Inventory had been a major concern by the business community and while the government had to make a policy decision how it will treat such stock, the GRA had been advising businesses to deplete their stock so that they will not be severely affected when VAT comes on stream.

The government realized that the business community could not bear the burden alone; hence it proceeded to offer relief on December stock. This we believe the business community should emulate since it helps them to upkeep their corporate responsibility. In some other countries there was no relief, whatsoever.

The GRA would like to encourage consumers, during this transitional phase, to exercise their right in demanding what they deem to be fair prices.  

I want to advise businesses that we will continue to work with them and persons who require training sessions are encouraged to make contact with the VAT Department to make the necessary arrangements.