VAT violators being prosecuted
Guyana Chronicle
January 6, 2007
THE Guyana Revenue Authority (GRA) is stepping up its policing mechanisms and enforcement of the law relating to the Value-Added Tax (VAT).
Reflective of this effort, it said, Muneshwers Limited and N.P Home Department Store in Georgetown were yesterday served summons for violation of the law relating to invoicing requirements.
Several other businesses will be prosecuted for similar offences, the GRA said in a statement.
The GRA said its prosecution of businesses failing to meet VAT requirements is a result of the authority supplementing its audit procedures with additional investigative methods to ensure that businesses remit all the VAT due and unearth any violations of the VAT law.
The law requires that VAT returns be filed within fifteen working days following the preceding tax period (one calendar month) and the correct amount of tax paid to the VAT Department.
Staff from the GRA are continuing their outreach and monitoring of VAT processing at several businesses and at the ports of entry, the authority said.
Their report, it said, suggests that businesses have improved their systems and are in greater compliance with the VAT law.
The GRA implored businesses to play their role in contributing to a seamless transition to the VAT regime.
It reminded businesses that a key factor which will aid in this transition is a steady rate of consumption of commodities in the country.
If consumers shop less as a result of higher prices, businesses stand to suffer revenue losses, it noted.
“We are heartened by the decision of a growing number of businesses to adjust the Consumption Tax out of their pre-VAT prices before applying the VAT rate in order to either maintain or reduce final prices,” the authority stated.
In addition, it said, since businesses will invest less to supply products, eventually they will not bear the VAT, even after applying their current percentage mark-up, hence their prices should be maintained.
The GRA said it continues to note irregularities. Some businesses are charging VAT but are not displaying their certificates and some businesses are not complying with invoicing requirements.
In addition, GRA stated some businesses are not mounting adequate signs to indicate whether their prices are VAT inclusive or exclusive and some are inordinately increasing prices of their produce, implying a price-increase effect of the tax.
&The GRA reminds businesses that the VAT law stipulates penalties for violation requirements relating to these incidents and that we will not spare any effort to enforce the law,” the statement said.
The GRA is reminding consumers that registered businesses which display an authentic VAT Certificate are obligated to charge the appropriate VAT on the commodities they supply.
Businesses are also urged to follow closely the legal requirement in preparation of their invoices.
Individual traders who have received certificates with their home addresses and wish to change to their trading or business address are being asked to contact the VAT Department with their business registration certificate so that the change can be processed immediately and a revised VAT Registration Certificate issued.
Companies that have branch offices and need certificates for those branches are asked to submit the necessary details so that original certificates can be issued for each branch. It is illegal to display a photocopied certificate, the GRA said.
Over the coming weeks, the GRA said it will continue to reach out and work with businesses and monitor the system to ensure full compliance of the law and realisation of the benefits of the system.