The Guyana Revenue Authority continues to outline the application of Value-Added Tax (VAT) to specific goods and services. This policy therefore outlines the guidelines with respect to the application on the supply of various types of meats.
Schedule I, Paragraph 13(y) of the VAT Act, Chapter 81:05, zero-rates a supply of, “fresh, chilled or frozen chicken, pork, beef, shrimp, prawns, mutton, duck; fresh, chilled or frozen fish, salted fish, but not including canned products.”
Therefore, registered businesses are required to apply the zero-rated value to all meats whether fresh, chilled or frozen.
The zero-rating is applicable to locally produced and imported meats, giblets, heel, liver and other parts of the animal used for meat purposes when these are sold separately.
However, canned products such as tuna, corned beef, sardine, canned bacons and vienna sausages will attract Value-Added Tax at a rate of fourteen percent (14%). In addition, when meat is baked, fried, or cooked in any other form and dishes containing meat as an ingredient, such as salad that includes meat, which are sold by VAT registered businesses, the standard rate of fourteen percent (14%) will also be applied.
Schedule I, Paragraph 11(b) of the VAT Act, Chapter 81:05, zero-rates a supply of, “live chicks, cattle, pigs, ducks, goat, sheep and other animals used for consumption excluding exotic and wild meat;”.
Therefore, turkey, labba, deer, black belly sheep and other such exotic meats will attract Value-Added Tax at the standard rate of fourteen percent (14%).
Since zero-rating is a positive tax treatment, registered businesses which sell zero-rated supplies are entitled to input tax credit paid on purchases related to zero-rated supplies.
Furthermore, 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 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. On the other hand, if the input tax credit attributable to the zero-rated items account for less than fifty percent (50%), the excess credit which remains for a tax period, will be refunded after being carried forward and used as input tax creditable in six consecutive tax periods. However, the taxpayer must apply for the refund in the form and with the documentation specified in Regulations 7 of the VAT Act, Chapter 81:05.
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
