This policy seeks to clarify the role of a representative of a VAT registrant in keeping with the Value-Added Tax Act, Chapter 81:05.
Definition of “Representative”

Section 53 (1) of the Value-Added Tax Act, Chapter 81:05 defines “representative” in relation to a taxable person, means-

(a) in the case of a corporation, the treasurer or other designated officer (s)

(b) in the case of an unincorporated association or body, any member of the committee of management
(c) in the case of a company-
(i) for a company other than a company in liquidation, the secretary of the company
(ii) for a company in liquidation, the liquidator
(d) in the case of the State, any person responsible for accounting for the receipt and payment of money under the provisions of any law or for the receipt and payment of public funds or funds voted by Parliament
(e) in the case of local authority or board, any person who is responsible for accounting for the receipt and payment of money or funds on behalf of the local authority or board
(f) in the case of partnership, any partner in the partnership
(g) in the case of a trust, any trustee
(h) in the case of a non-resident person, any person controlling the non-resident person’s affairs in Guyana, including any manager of a taxable activity of the non-resident person in Guyana.”

A representative can therefore be a treasurer, a management member of a committee, secretary of the company, a liquidator, a person responsible for the receipt and payment: of public funds or funds voted by parliament; or on behalf of the local authority or board; partner in the partnership; any trustee or manager.

Responsibility of Representative

Section 53(2) of the Value-Added Tax Act, Chapter 81:05 states that “Every representative of a taxable person is responsible for performing any duties, including the payment of tax, imposed by this Act on the taxable person.

The representative is responsible for the payment of Value-Added Tax in keeping with the Value-Added Tax Act Chapter 81:05 and the performance of duties thereof.

Section 53(3) of the Value-Added Tax Act, Chapter 81:05 states that “Every representative who in that capacity pays any tax payable under this Act by a taxable person is entitled to recover the amount so paid from the taxable person or to retain the amount so paid out of any money of the taxable person that is in the representative’s possession or under the representative’s control.

This section indicates that the representative of a VAT Registrant is entitled to recover any amounts of tax paid in their capacity as a representative on behalf of the VAT Registrant. Also, when a representative uses their own funds to pay VAT for the VAT Registrant in his representative capacity, the representative can recover the sum from the VAT Registrant or retain from monies in their possession or under his control.

Section 53(4) of the Value-Added Tax Act, Chapter 81:05 states that, “every representative is personally liable for the payment of any tax payable by the representative in his representative capacity if, while the amount remains unpaid, the representative-
(a) alienates, charges, or disposes of any money received or accrued in respect of which the tax is payable; or
(b) disposes of or parts with any fund or money belonging to the taxable person which is in the possession of the representative or which comes to the representative after the tax is payable if such tax could legally have been paid from or out of such fund or money.

The aforementioned stipulates that a representative of a VAT Registrant will be personally liable for the tax payable if the amounts remains unpaid if it is established that the person:

• alienates, charges or disposes of money accumulated for payment of VAT
• that funds of the VAT registrant have been otherwise utilized that could have paid the taxes due or payable.

Supply

Section 4 (16) of the Value-Added Tax Act, Chapter 81:05 states that the provision of goods on consignment and the transfer of goods to a person acting in a representative capacity to the transferor is not a supply.

This means:

• goods on consignment
• transfer of goods to a person acting in a representative capacity is not a supply and therefore VAT is not applicable.

Confidentiality of Tax Information
Section 8(6) of the Value-Added Tax Act, Chapter 81:05 stipulates that the Commissioner may disclose information concerning a taxpayer’s affairs to a person claiming to be the taxpayer or the taxpayer’s authorised representative only after obtaining reasonable assurance of the authenticity of the claim.

Therefore, the Commissioner-General of the GRA has the power to disclose information of a taxpayer’s affairs to the person deemed as the representative of a VAT registrant.

Power to Appoint Agent
Section 54 (1) of the Value-Added Tax Act, Chapter 81:05 points out that the Commissioner has the authority to declare a person, if he considers it necessary, to be the agent of a taxable person and the person declared is deemed to be the representative of the taxable person for the purposes of Section 53 of the Value Added Tax Act Chapter 81:05.

Offences by Representative
Section 78 (1)(a) of the Value-Added Tax Act, Chapter 81:05 stipulates that where an offence under this Act has been committed by a company, every person who at the time of the commission of the offence– (a) was a representative officer… is deemed to have committed the offence.

The above legislation outlines that the representative can be held liable for any act committed by a company if the person at the time served as a representative of the company.

Service of Notices
Section 89(2)(a) and (b)(i) of the Value-Added Tax Act, Chapter 81:05 indicates that-
(1) “Unless otherwise provided in this Act, a notice required by this Act to be in writing shall be served on the recipient of the notice.
(2) A notice mentioned in subsection (1) is considered sufficiently served–
(b) on any other person, if it is–
(i) personally served on the representative of the person”

It should be noted that where a VAT Registrant has a representative, the person is not excluded from any duty imposed by the VAT Act Chapter 81:05, which the representative failed to execute.

Contact Us:
Tax Advisory Services Section
Communications & Tax Advisory Services Division
Guyana Revenue Authority
200 -201 Camp Street
Georgetown
Guyana
Tel: 227-6060 | 227-8222 Ext: 8000
Email: taxadvisory@gra.gov.gy
Website: www.gra.gov.gy