GRA says it’s ready to administer VAT refunds
Guyana Chronicle
March 9, 2007
THE Guyana Revenue Authority (GRA) is prepared to process Value Added Tax (VAT) refunds for the categories of persons who qualify under the VAT law.
It yesterday said some categories of tax payers would be eligible for refunds having submitted their VAT returns for January 2007 and reported more input tax than output tax.
“Persons involved in supplying zero-rated items such as schools, health institutions and exporters might be entitled to such refunds since they are allowed to claim refunds of credit after a month”, the authority said.
Businesses which produce standard-rated supplies may also qualify for VAT refunds. However, to qualify for this they must have excess credit for six consecutive months, GRA said.
Other categories of tax payers such as diplomats and non-residents could also be eligible for refunds.
Diplomats, diplomatic missions and consular missions, CARICOM and international organisations will not be charged VAT on their imports, Commissioner of VAT, Mrs. Hema Khan said.
“The application forms for this refund will be available from the Ministry of Foreign Affairs and these agencies will submit their claim to the Ministry of Foreign Affairs,” in keeping with standard diplomatic procedures, she said.
They would be able to claim the VAT paid on purchases for the previous month on items such as office supplies and equipment, furniture, official receptions and meals and vehicles, she said.
Khan stated that non-residents who purchase items and paid in excess of $20,000 in VAT and which are exported as accompanied baggage will also be eligible for a refund.
The application forms for this will be available at the Cheddi Jagan International Airport and staff will be in place from March 12, she advised.
“Shortly, we will be able to deal with this at our Moleson Creek location,” she added.
Non–registrants, she said, will be required to produce proof of original tax or sales invoices to the GRA on or before departure in order that the claim can be processed. According to her, the refund cheque will be mailed in United States or Canadian dollars and or British Pounds to the claimant.
The Operations Unit at the VAT Department is responsible for refund claims and the Refund Verification and Audit Unit is responsible for the verification and refund process.
Khan noted that all refunds will be subject to an audit.
GRA advised that it is the obligation of the taxpayer to apply for a refund for which the VAT law gives the GRA a period of 60 days to pay.
“It is to be noted also that the Commissioner may apply the amount of refunds claimed against any outstanding tax, levy, interest, or penalty due from the claimant under VAT, or against any other unpaid taxes collected by the Commissioner, or any unpaid amounts under the repealed Consumption Tax Act. After these deductions, if any, the excess remaining is payable to the claimant”, the authority said.
The Commissioner’s decision in respect of a claim must be notified in writing to the claimant, it added.
Where the Commissioner fails to pay a refund of tax in accordance with the provisions of the VAT Act, the claimant is entitled to an additional amount as interest at a rate of one per cent simple interest per month or part thereof, the GRA said.