The Guyana Revenue Authority continues to provide assistance to the general public on different issues regarding the application of Value- Added Tax (VAT) on specific items in Schedule I of the VAT Act, Chapter 81:05, which lists goods and services that are zero rated for VAT purposes.
Schedule I, Paragraph 13 of the VAT Act Chapter 81:05, zero-rates a supply of the following items:
(l) unprocessed wheat
(n) barley flour
(o) plantain flour
(dd) oats
(ee) sago
(hh) wheat up
As a result, consumers will not pay VAT at the standard rate of fourteen percent (14%) when making purchases of unprocessed wheat bran, barley flour, plantain flour, oats, sago and wheat up used for human consumption since these items are listed on Schedule 1 which indicates that they are zero-rated.
Consequently, oats or any of the other items listed in the zero-rated schedule when acquired as prepared animal feed or as an ingredient for the preparation of animal feed may be zero-rated providing that the Commissioner-General is satisfied that the product will be used for the purposes identified in the law. Therefore, VAT registered businesses that are involved in the preparation of animal feed that uses these products must submit a completed application and the invoice to the Tax Exemption Processing and Verification Division for approval to be granted for zero-rating of these items.
Notwithstanding the above, oats used as a coffee substitute or to produce whisky, for cosmetic reasons, as fibres papers, bedding, pillow filling, thatching etc. are not zero-rated and will attract VAT at the standard rate of fourteen percent (14%).
Moreover, registered businesses which are involved in the sale of mixed supplies, that is, exempt supplies and standard rated and/or zero-rated supplies may file a claim every month to the Guyana Revenue Authority for a refund of the excess credits attributable to the zero-rated supplies only if the zero-rated items account for at least fifty percent (50%) of the amount of the taxable supplies.
Therefore, if fifty percent (50%) or more of the taxable supplies of a registered person are taxed at zero percent (0%), that person can claim a refund of the credits attributable to the zero-rated supplies each month.
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
