The Guyana Revenue Authority (GRA) is concerned that taxpayers are still experiencing “tax shocks” at the cash register as businesses fail to adhere to the policy regarding advertising products and services that are VAT inclusive.
“Taxpayers continue to vent their concerns to the media and the GRA about this infringement to the Law and the negative impact it has been having on their spending power as consumers,” the agency said in a press release. Citing a letter which appeared in the Thursday edition of the Stabroek News titled “Prices on supermarket shelves should include VAT”, the GRA reiterated that consumers continue to suffer “tax shocks” when they get to the payment area only to be made aware then of the final …price for the selected item. The agency is particularly concerned that the registered businesses found culpable are those that had initially complied with the law and had displayed the prices for their goods following implementation of VAT but are now seemingly taking the policy for granted.
According to the GRA, Section 90 (2) and (3) of the VAT Act states that where a registered persons advertises or quotes a price for goods or a service that is subject to 16% VAT, the price is required to include the tax and the advertisement or quotation must state that VAT is included. The customer or consumer then makes a single payment.
The registered persons may advertise or quote a price that excludes VAT, but apart from the price of the goods or service the advertisement or quotation must also state the amount of tax to be charged on the supply and the final price when the tax is added.
Businesses are also required to issue a tax invoice for every taxable supply (inclusive of goods or services taxed at 16% or 0%) made to the customer as proof of purchase. It is also necessary for audit purposes with respect to claiming VAT refunds.
The GRA further cautions consumers and businesses not to confuse a tax invoice with a sales invoice. The latter is issued when the taxable supply is paid for in cash and does not exceed $10,000. The sales invoice should include the name, address and VAT registration number of the registered person making the sale, a description of the goods sold or services rendered, the price of the sale, the amount of VAT if separately stated; and the issue date of the sales invoice.
The agency is again urging businesses to ensure that their pricing methods are reflective of the stipulations under the Law. Consumers who continue to experience discriminatory business practices are urged to make a report to the GRA.
