First VAT and Excise Tax Returns and Payments due tomorrow: February 20, 2007
Value Added Tax (VAT) and Excise Tax (ET) implementation has reached a critical juncture. Tomorrow, 21st February is the due date by which VAT and ET registrants must make their returns and payments for the month of January 2007 – the first returns and payments since the new taxes were introduced.

We should like to take this opportunity to congratulate those businesses that filed their returns as early as 1st February, 2007. To date we have received more than 40 percent of the returns and we are on target with our revenue collection.  

I should like to reiterate that it is of absolute importance that businesses maintain proper books and records of their purchases and sales as this will allow for the easy extraction of figures for filling in the VAT return (VAT 200).

Businesses are urged to file their VAT returns early and avoid penalties for non-compliance. The fine for late filing is $1,000 for every day, or part thereof, that the return remains outstanding or 10 percent of the tax due, which ever is greater. 

The VAT and ET Department has put special arrangements in place to cater for the expected build up of VAT registrants tomorrow, including extended working hours to facilitate the submission of returns.

A secure drop off box has been placed in the lobby of the Charlotte Street entrance of the VAT building for persons who are pressed for time to place their returns and cheques.
 
We strongly advise persons against putting envelopes with cash in the box or remitting the VAT in the form of cash via the post as this would be to their own detriment.

All cheques must be made payable to the Guyana Revenue Authority (GRA).

Businesses that had no transactions for the month are still required to submit a VAT return.

Staff of the VAT and ET Department will be available to offer advice and assistance to VAT registrants who need clarifications or assistance with filing their returns.

VAT being a new tax, we foresee that there will be some late filing. Therefore, VAT registrants may be granted an extension of time for submitting their returns. However, this is not automatic and good cause will have to be shown before the Commissioner General could approve an extension.

The VAT and ET Department mailed or hand-delivered more than two thousand VAT Return Forms in January. The Department will soon begin distribution of Return Forms for February and March with the due dates pre-printed.

VAT registrants are advised that returns can be submitted to any of the GRA branch offices in Linden, New Amsterdam, Corriverton, Lethem, Anna Regina and Georgetown (GPO, Customs House and Albert Street).

The first month of VAT administration has been a challenging one for the GRA and VAT registrants. However, we believe there is a better understanding of the tax today, there is greater acceptance and we are confident about the future.

We continue to urge businesses to honour their corporate responsibility in contributing to a seamless transition to the VAT regime.