No VAT on medical, dental, hospital, optical or paramedical services

By Stabroek News On In Letters to the Editor |

Dear Editor,

The GRA published the revised list of Zero Rated Supplies (Schedule 1) and Exempt Supplies (Schedule 11) during the month of February, 2017. Yet articles citing VAT on medical services were published subsequent to that.

It is very important for the general public to be aware that there is no VAT on medical, dental, hospital, optical or paramedical services in accordance with Paragraph 8 of Schedule II of the Value-Added Tax Act, Chapter 81:05 which states the following:

“… Exempted for the purposes of section 18 are a supply of medical, dental, hospital, optical or paramedical services, other than veterinary services…”

These services are exempted and as such, persons should not be charged VAT.

In addition, Schedule 1 to the VAT Act, paragraph 6 states:

Medical Supplies

  1. The following medical supplies are zero-rated for the purposes of section 17 –

(a)  a supply of medicines and drugs of a kind available only by prescription;

(b)  any of the following medicines for human use –

(i)   analgesics in the form of liquids, tablets, capsules, or other solid dosage forms for oral or rectal use;

(ii)  cough and cold preparations in the form of liquids, tablets, capsules or other solid dosage forms for oral and nasal use;

(iii) antacids and anti-flatulants in the form of liquids, tablets, capsules and other solid dosage forms for oral use;

(iv)  laxatives in the form of liquids, tablets, capsules or other solid dosage forms for oral or rectal use;

(v)  anthelmintics in the form of liquids, tablets or capsules for oral use;

(vi) oral rehydration preparations in the form of salts or solution of W.H.O./ Pharmacopoeia standards.

(c)  Diabetic –

(i)  glucometers (glucose blood test machines) and glucose blood strips made for use with such machines;

(ii) insulin syringes with needles and devices for the administration of insulin.

(d)  spectacles prescribed by an optometrist in the treatment of the human eye and visual system;

(e)  crutches.

GRA is reminding the media that its Tax Advisory Services section may be accessed via telephone numbers 227-6060/227-8222 extensions 1201-1204 for clarification on any tax matter of public interest.

Yours faithfully,

Melissa Baird

Manager

Public Relations Unit

Guyana Revenue Authority