The Guyana Revenue Authority has dealt with VAT Registration in prior publications; however, there is a need to highlight the law governing the Cancellation of VAT Registration. This policy therefore seeks to provide information regarding the persons eligible, rules and procedure regarding the cancellation of VAT Registration.
Section 13(1) of the VAT Act, Chapter 81:05 states that, “Subject to subsection (2), a taxable person who ceases to carry on all taxable activities shall notify the Commissioner of that fact within fifteen days of the date of such cessation, and the Commissioner is required to cancel the registration of that person with effect from the last day of the tax period during which all such taxable activities ceased, or from such other date as the Commissioner may determine.”
According to Section 13(2) and (3) of the VAT Act, Chapter 81:05, “The Commissioner is not required to cancel the registration of a taxable person where the Commissioner has reasonable grounds to believe that the person will carry on any taxable activity at any time within twelve months from that date of cessation.”
Consequently, registered persons are required to notify the Commissioner in writing, indicating the date on which all taxable activities ceased, and whether or not that person intends to carry on any taxable activity within twelve months from that date.
Section 13(4) of the VAT Act, Chapter 81:05 states that, “Where the Commissioner is satisfied that a taxable person is not carrying on a taxable activity or is neither required nor entitled to apply for registration, the Commissioner may cancel that person’s registration with effect from the last day of the tax period during which the Commissioner became so satisfied, or from such other date as the Commissioner may determine, and is required to notify that person in writing of the date on which the cancellation takes effect.”
Pursuant to the above where the Commissioner-General is satisfied that a person is not carrying on a taxable activity nor was the person entitled to apply for registration, that person’s registration would be cancelled.
In accordance with Section 13(5) and (6) of the VAT Act, Chapter 81:05, “The Commissioner may cancel the registration of a person who is not required to apply for registration where that person has:
• no fixed place of abode or business;
• not kept proper accounting records relating to any business activity carried on by that person or;
• not submitted regular and reliable tax returns as required by Section 31 of the VAT Act, Chapter 81:05.”
Notwithstanding the above, a registered person whose taxable supplies is no longer fifteen million dollars or above within the past twelve months may apply for cancellation of the registration, however this can be done only after the expiration of two (2) years from the date the registration took effect. Moreover, the above reasons for cancellation of VAT registration does not apply to:
• the State, an agency of the State, or local authority under Section 11(6),
• an auctioneer under Section 11(7), or
• a promoter of public entertainment under Section 11(8).
Also, a person whose registration is cancelled is deemed to have made a taxable supply of any goods or services on hand at the date the registration is cancelled, but only if an input tax credit was claimed with respect to the goods or services.
Further, any responsibility or liability, including the obligation to pay tax and lodge returns, in respect of anything done or omitted by that person while the person was a registered person, is not affected by cancellation of the person’s registration.
Finally, Section 13(13) of the VAT Act, Chapter 81:05 states that, “A person dissatisfied with a decision of the Commissioner under this Section to cancel or not to cancel the person’s registration may challenge the decision only under Part X.” Part X of the VAT Act Chapter 81:05 provides for the objection process to be effected where a person is dissatisfied with the cancellation of registration process in keeping with Sections 38 to 41 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 | eservices@gra.gov.gy
Website: www.gra.gov.gy
