The Guyana Revenue Authority continues to clarify various issues regarding the application of Value- Added Tax (VAT) to specific goods and services. Therefore, this policy seeks to addresses VAT relative to Peas and beans.
Schedule I of the VAT Act Chapter 81:05 lists goods and services which are zero rated. Accordingly, Schedule I Paragraph 13 (k) zero rates a supply of dried split peas, pigeon peas (not including canned pigeon peas), dried kidney beans (not including canned kidney beans), dried chick peas (not including canned chick peas) and dried black-eyed peas (not including canned black-eyed peas).
Therefore, consumers will not pay VAT at the standard rate of fourteen percent (14%) when purchasing dried split peas, dried black-eyed peas, dried chick peas, dried kidney beans and dried pigeon peas, since VAT at the rate of zero percent (0%) is applicable to the above mentioned products, given that these products have been added to, altered or otherwise enhanced during the production process to add value to the final product.
Notwithstanding the above, if the products listed above are packaged in a can or for resale, VAT at the standard rate of fourteen percent (14%) will apply.
Furthermore, other Peas and Beans such as butter beans, red beans or red peas and others not stated in Schedule 1, Paragraph 13 (k) will continue to attract VAT at the standard rate of fourteen percent (14%) whether or not these are canned.
In accordance with Section 35 (5) of the VAT Act, Chapter 81:05 which states that,
“Where at least fifty percent (50%) of the amount of the taxable supplies of a taxable person for the taxable period is taxed at a zero rate, and the person reports an excess described in subsection (1)(a) for a taxable period, the person may file with the Commissioner a claim for refund for the excess credits attributable to the zero-rated supplies in the form and with the documentation specified in regulations.”
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 the zero-rated supply. As such, registered businesses may file for a full refund of input tax credits on a monthly basis if the zero rated items account for at least fifty percent (50%) of the amount of the taxable supplies in accordance with Section 35 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 | gravat@gra.gov.gy
Website: www.gra.gov.gy
