First VAT returns, payments due today
• high percentage still outstanding
Kaieteur News
February 21, 2007
With more than 60 % of returns still outstanding, the Guyana Revenue Authority (GRA) is reminding that today is the due date for VAT and Excise returns and payments for the month of January – the first since the new taxes were introduced.
Describing the implementation process as having reached a critical juncture, Commissioner of the Value-Added Tax and Excise Tax Department, Ms. Hema Khan, said, however, that the Company is on target with revenue collections
“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 per cent of the returns and we are on target with our revenue collection.”
She further reiterated the importance of businesses maintaining 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.
She urged businesses 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 per cent of the tax due, which ever is greater.
The VAT and ET Department has also put special arrangements in place to cater for the expected build-up of VAT registrants today, 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).
She stressed that 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 clarification or assistance with filing their returns, the Commissioner said.
She added that with VAT being a new tax, the department foresees that there will be some late filing.
Therefore, she noted that 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 and to date, 832 have been submitted.
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 ).
Khan stressed that auditors will be visiting business shortly to ensure the accuracy of the returns.
Khan related that 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.”
• She added that GRA remains committed to working with stakeholders to ensure VAT is effective and that there is maximum compliance of the law so that Guyanese would soon receive the real benefits of VAT.