The Guyana Revenue Authority (GRA) yesterday emphasized that Article 21.1 of the Purchase Agreement between the Government of Guyana and Esso Exploration and Production Guyana Limited (EEGPL) defines the tax relationship between the company and its sub-contractors.
The GRA said that the Contractor and the Sub-Contractors engaged in Petroleum Operations shall be permitted to “import, free of duty, VAT or all or any other duties, taxes, levies or imposts, all equipment and supplies required for Petroleum Operations including but not limited to drill ships, platforms, vessels, geophysical tools, communications equipment, explosives, radioactive sources, vehicles, oilfield supplies, lubricants, consumable items (other than foodstuffs or alcoholic beverages or fuel), as well as all items listed on Annex D.
“In keeping with the said clause, the Guyana Revenue Authority advises that the supplies outlined in Annex D whether procured locally or overseas shall be sold to the Contractor (EXXON) in accordance with the said Article 21.1, i.e., free of duty, VAT or all or any other duties, taxes, levies or imposts.
“Consequently, suppliers of items to Exxon as listed in Annex D, on which taxes were levied and paid upon import, are advised that a credit shall be given for the said taxes, once proven to the satisfaction of the Commissioner General that such items were indeed sold to EXXON, and taxes were paid upon import”.
The GRA said that note should be taken that foodstuff, alcoholic beverages and fuel are subject to the appropriate tax, and will be so taxed regardless of whether the supplier is local or otherwise.
