ZERO-RATED ITEMS UNDER THE VALUE ADDED TAX ACT

Guyana Chronicle
January 27, 2007

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FOOD
plain bread made with white or whole wheat flour

raw white or brown rice

raw brown sugar coconut, palm, corn, soybean and peanut oil

cow’s milk and milk powder, but not including other milk such as flavoured milk

baby formula

fresh fruits, but not including apples, grapes, dates, prunes, peaches, plums, strawberries

fresh vegetables, including onions, garlic, potatoes but not including olives, carrots, radishes, broccoli, cauliflower

dried split peas

fresh blackeye peas except for canned blackeye peas

margarine

eggs

cooking salt

locally produced jams, jellies and peanut butter

chicken

locally produced fresh, chilled or frozen pork, beef, shrimp, mutton, fresh, chilled or frozen fish, salted fish, excluding canned fish

unsweetened biscuits

OTHER ESSENTIAL ITEMS
matches

soap

soap powder

toilet paper

sanitary napkins

preparations for oral or dental hygiene, including denture fixative pastes and powders and dental floss

ESSENTIAL SERVICES
a supply of education services and educational materials

a supply of water services and sewerage services provided by Guyana Water Incorporated and Kwakwani Utilities Incorporated

a supply of electricity

AGRICULTURE
fertilizers

pesticides

vegetable seeds

knotted netting of twine, cordage or rope; made up fishing nets and other made up nets, of textile materials;

Ice for fishing purposes

fungicide, herbicide, weedicide for agriculture purposes;

harrows, cultivators, scarifiers, ploughs, weeders and hoes

machinery used for preparing animal feeding stuffs;

poultry feed, animal feed and the ingredients, excluding pet feed established by the Ministry of Agriculture;

prepared complete poultry feed, cattle feed, pig feed, and other prepared complete animal feed.

HEALTH AND MEDICAL SERVICES/SUPPLIES
medical services and prescription drugs, to the extent provided in regulations issued by the Minister, and over the counter drugs, but not including vitamins, tonics, energy drinks, food supplements and similar products and supplements for promoting health and well being

veterinary supplies as determined by the Ministry of Finance

optometric goods and services employed in the examination, diagnoses and treatment of the human eye and visual system

COMPUTERS AND INTERNET
Computers

Computer monitors

Computer printers (excluding multi- function printers)

Mouse

Keyboards

All internal components of the Central Processing Unit including the cabinet, internal cd/dvd writers, motherboards, video cards, sound cards, internal power supply, processors, memories, internal Input/ Output cards.

Routers, switches and hubs for networking computers

Toner cartridges for computer printers

ink cartridges

provision of internet services to a premises, but not including voice over internet providers or the supply of yap jacks

BUILDING/CONSTRUCTION
locally produced sand, stone, concrete blocks, lumber or similar materials of a type and quality used for construction, but not including items containing imported raw materials except concrete blocks

Plywood

the first import, after the coming into operation of the VAT Act, of one of each large capital item of equipment such as a bulldozer, excavator, tractor, or similar heavy duty industrial machine by a person who invests in these items, provided that on the day prior to the coming into operation of the VAT Act the import of the item by the person was subject to Consumption Tax at a rate of zero percent and that the importation is not subject to an investment agreement, and further provided the zero-rating of subsequent imports of these items are allowed under conditions and restrictions that may be prescribed by the Minister

OTHER
locally produced garments

sewing machines

spools, cops, bobbins and other similar products

sacks, bags, of a kind used for the packaging of goods

funeral services

human remains

a supply of sports gear or sports equipment qualifying for exemption from Custom duties under the First Schedule to the Customs Act

an importation of motor vehicles that are at least 4 years and older from the date of manufacture

motor vehicles for persons qualifying for exemption from Custom duties under section 23 of the Customs Act

motor vehicles when imported by any diplomatic mission or consulate or diplomats accredited to Guyana

importation of personal effects for re-migrants who qualify for exemption from Custom duties under section 23 of the Customs Act

goods imported for non-commercial purposes and contained in passenger’s baggage or imported in gift parcels sent by air or sea or by parcel post, of which the CIF value does not exceed the Guyana dollar equivalent of US$200.00, subject to the provisions contained in Annex I if the First Schedule Part I of the Customs Act

outboard motors not exceeding 75HP

a supply of the services of transporting passengers and goods by air from one pace in Guyana to another place in Guyana subject to the signing of an agreement between the Government of Guyana and the local Aircraft operators

a supply of river and land crossing services subject to the singing of an agreement between the company and the Government of Guyana where such crossings are specified in the agreement

a supply of goods where the supplier has entered the goods for export, pursuant to the Customs Act, and the goods have been exported from Guyana by the supplier

a supply of goods where the Commissioner is satisfied that the goods have been exported from Guyana by the supplier

a supply of goods where the goods are not situated in Guyana at the time of supply and are not to be entered into Guyana for home consumption pursuant to the Customs Act by the supplier of the goods

a supply of goods under a rental agreement, charter party, or agreement for chartering, where the goods are used exclusively in an export country

a supply of goods in the course of repairing, renovating, modifying, or treating goods to which sub-paragraph (h)(ii) or (iv) applies and the goods supplied–

(i) are wrought into, affixed to, attached to, or otherwise form part of those other goods; or

(ii) being consumable goods, become unusable or worthless as a direct result of being used in that repair, renovation, modification, or treatment process

a supply of services directly in connection with land, or any improvement thereto, situated outside Guyana

a supply of services directly in respect of–

(i) movable property situated outside Guyana at the time the services are rendered;

(ii) goods temporarily imported into Guyana under the exemptions in the Customs Act;

(iii) a supply of goods referred to in paragraphs (a) or (b) of the definition of “exported from Guyana”; or

(iv) the repair, maintenance, cleaning, or reconditioning of a foreign-going aircraft

a supply of services directly to a non-resident person who is not a taxable person, otherwise than through an agent or other person–

(i) comprising the handling, pilotage, salvage, or towage of a foreign-going aircraft while situated in Guyana;

(ii) provided in connection with the operation or management of a foreign-going aircraft; or

(iii) comprising the storage, repair, maintenance, cleaning, management, or arranging the provision of a container temporarily imported under the Customs Act, or the arranging of such services

a supply of services to a non-resident person who is not a taxable person comprising the arranging for the person of–

(i) a supply of goods referred to in paragraphs (a) and (b) of the definition of “exported from Guyana”;

(ii) a supply of services to which sub-paragraph (h)(iv) or paragraph (i) applies; or

(iii) the transport of goods, including ancillary transport services, within Guyana

a supply of services physically rendered elsewhere than in Guyana

a supply of services to a non-resident person who is outside Guyana at the time the services are supplied, other than a supply of services–

(i) directly in connection with immovable property situated in Guyana;

(ii) directly in connection with movable property situated in Guyana at the time the services are supplied unless the movable property is exported from Guyana subsequent to the supply of services;

(iii) comprising the refraining from undertaking any taxable activity in Guyana; or

(iv) comprising the tolerating of another person undertaking any taxable activity in Guyana

a supply of services comprising–

(i) the filing, prosecution, granting, maintenance, transfer, assignment, licensing, or enforcement of any intellectual property rights for use outside Guyana;

(ii) incidental services necessary for the supply of services referred to in sub-paragraph (i); or

(iii) the acceptance by a person of an obligation to refrain from pursuing or exercising in whole or part any intellectual property rights for use outside Guyana

a supply by a registered person to another registered person of a taxable activity, or part of a taxable activity, as a going concern, provided a notice in writing signed by the transferor and transferee is furnished to the Commissioner within fifteen days after the supply takes place and such notice includes the details of the supply

goods when imported and consultancy services, to be supplied to the State, an agency of the State, or a local authority and directly incorporate into a project funded by grants or loans supplied by a foreign government (or agency of that government) or a public international organisation

works and consultancy services purchased by a budget agency named in the schedule to the Fiscal Management and Accountability Act 2003

importation of raw materials to be used in the production of goods which will be subsequently exported by a taxable person who, to the satisfaction of the Commissioner General, exports at least 50% of all of its products

an importation of items under an investment agreement entered into on behalf of the Government with taxable persons

coins, bank notes and other monetary instruments imported by or on behalf of the Bank of Guyana

the supply of a cup, medal, shield, or similar trophy, which is shown to the satisfaction of the Commissioner-General not to be of general utility, not bearing any advertisement, not imported or stocked for the purpose of trade, imported for the purpose of bestowal as an honorary distinction or prize, and either won abroad or awarded by a donor resident abroad

a passenger vehicle as shown to the satisfaction of the Commissioner-General to have been won abroad, or bestowed as an honorary prize to a sports personality

goods and services purchased by or for use by the persons qualifying under the first Schedule Part 3 B II Item 44 (i) and (ii) made under the Customs Act Cap. 82.01