Value Added Tax Act No. 10 of 2005

2. Definitions.

3. Fair market value.

4. Supply. 5. 6. Supply by agent or auction. Taxable activity. .. ,i PRICE: S6,890.00 To be purchased from the office of the President, GeOri:etowa PRINIED BY GNPL, 2 No. 10] LAWS OF GUYANA (A.D. 2005 PART 11 -Authority to Administer VAT

7. Administration of the Act; exercise of powers and performance of duties,

8. Confidentiality of tax and persons liable. PART III- Imposition of Tax and Person� Liable

9. Imposition of tax and persons liable. PART IV- Registration I 0. Taxable person.

11. Registration .

12. Requirements for registration. ' 13. Cancellation of registration. PART V- Rules Relating to Supplies

14. Time of supply. l

15. Place of supply.

16. Value of supply.

17. Zero-rating.

18. Exempt supply. PART VI - Imports

19. Time of import.

20. Value of import.

21. Exempt import.

22. Import declaration and payment of tax. PART VII - Calculation of Tax Payable

23. Tax payable for tax period.

24. Input tax credit. • 25. Input tax credit allocation and disallowance rules.

26. Post-sale adjustments.

27. Interest on unpaid tax.

28. Tax invoices and sales invoices.

29. Tax credit and debit notes. A.D. 2005] VALUE-ADDED TAX [No. 10 Tax Administration Provisions PART VIII — Tax Period, Returns and Assessments

30. Tax period.

31. Returns.

32. Extension of time.

33. Assessments.

34. General provisions relating to assessments. PART IX — Refund of Tax and Tax Relief

35. Carry forward of excess credits and refund of tax.

36. Interest on overpayment.

37. Others eligible for tax refund. PART X — Objections and Appeals

38. Objections.

39. Appeal to VAT Board of Review.

40. Appeal to High Court.

41. Burden of proof. PART XI — Payment, Collection and Recovery

42. Due date for payment of tax.

43. Allocation of payments.

44. Recovery of tax as debt due.

45. Recovery of monies from persons leaving Guyana.

46. Security.

47. Preferential claim to assets.

48. Seizure of goods and vehicles.

49. Distress proceedings.

50. Recovery of tax from recipient of supply-

51. Recovery of tax from third parties.

52. Duties of receivers. PART XII — Representatives and Special Cases of Taxable Persons

53. Persons acting in a representative capacity.

54. Power to appoint agent.

55. Branches.

56. Bodies of persons (other than incorporated companies).

57. Death or insolvency of taxable person; mortgagee in possession.

58. Trustee. No. 10] LAWS OF GUYANA [A.D. 2005 PART XIII — Records and Investigation Powers

59. Interpretation.

60. Record-keeping.

61. Access to records, computers, goods, and vehicles.

62. Records not in official language.

63. Notice to obtain information or evidence. PART XIV — Offences and Penalties Division 1: Criminal Offences

64. Power to bring criminal charges.

65. Time limits for proceedings to be taken.

66. Failure to apply for VAT registratioh.

67. Improper VAT documentation.

68. False claim for VAT refund.

69. Failure to notify Commissioner of cessation of taxable activity.

70. Failure to comply with third-party payment notice.

71. Failure to comply with duties as receiver.

72. Failure to file VAT return.

73. Failure to maintain proper records.

74. Disclosure of confidential information. 0

75. False or misleading statements.

76. Obstructing taxation officers.

77. Offences by taxation officers.

78. Offences by companies, aiders and abetters.

79. Compounding of offences. Division II: Civil Penalties

80. Civil penalty for failure to apply for VAT registration.

81. Civil penalty for failure to declare or pay VAT on import'.

82. Civil penalty for failure to file VAT return.

83. Civil penalty for failure to maintain proper records.

84. Civil penalty for making false or misleading statements.

85. Recovery or remission of penalties.

86. Temporary closure of business premises. THE OFFICIAL GAZETTE [LEGAL SUPPLEMENT] — A 18TH JULY, 2005 897 5 A.D. 2005] VALUE-ADDED TAX [No. 10 PART XV — Miscellaneous

87. VAT registration number.

88. Forms and notices; authentication of documents.

89. Service of notices.

90. Tax-inclusive pricing.

91. Schemes for obtaining tax benefits.

92. Currency conversion.

93. Registration of certain goods prohibited in certain circumstances.

94. Auctioneer and agent.

95. Regulations.

96. Variation of consideration on a change in rate.

97. Application of increased or reduced rate.

98. Orders to amend Schedules or change amounts or tax rate.

99. Repeal of laws and interpretation.

100. Transitional. SCHEDULES Schedule I – Zero-rated Supplies for Purposes of Section 17 Schedule II – Exempt Supplies for Purposes of Section 17

Schedule III – Tax Invoices, Tax Credit Notes, and Tax Debit Notes for Purposes of Sections 28 and 29 • Schedule IV – Registration Threshold Interest Rates, and Other Amounts for Purposes of Sections 11, 27, 28, 35, 36 and 37 Schedule V – Repeal of Laws - Section 99 6Y5 11YD tirrIt—IAL, VALLI 1 C [LEGAL b 6 No. 10] LAWS OF GUYANA [A.D. 2005 AN ACT to provide for the imposition and collection of Value- Added Tax. Enacted by the Parliament of Guyana:- PART I - Preliminary A.D.2005 1. (1) This Act may be cited as the Value-Added Tax Act 2005. (2) This Act shall come into operation on such date as the Minister may by order appoint and different dates may be prescribed for different provisions of this Act. Short title and 2. In this Act, unless the context indicates otherwise — commencement. "appealable decision" means an assessment or a decision described in sections 12(6), 13(13), 25(7), 31(4), 32(3), 35(13), 38(6), 39(7), 42(4), 46(4), 54(2), and 85(4); "auctioneer" means a person engaged in a taxable activity that includes the supply of goods by auction as an auctioneer or agent for or on behalf of another person; Iktimnons "capital goods" means an asset, or a component of an asset, which is of a character subject to an allowance for depreciation or comparable deduction for income tax purposes, and which is used in the course or furtherance of a taxable activity; • "cash value", in relation to a supply of goods under a credit agreement, means - (a) where the seller or lessor is a bank or other financial institution, an amount equal to the sum of- (i) the consideration paid by the bank or other financial institution for the goods or the fair market value of the supply of the goods to the bank or other financial institution, whichever is the greater; and I FIC VCfIt1AL VALE LIE YYLE\1LNIJ A A.D. 2005] VALUE-ADDED TAX [No. 10 (ii) any consideration for erection, construction, assembly, or installation of the goods borne by the bank or other financial institution; or 4 (b) where the seller or lessor is a dealer, an amount equal • to the sum of— (i) the consideration at which the goods are normally sold by the dealer for cash; and (ii) any consideration for erection, construction, assembly, or installation of the goods borne by the dealer; "charity" means an association not for gain, including an institution of religious worship, a charitable organization, or any other society, association, or organization, whether incorporated or not, that — (a) is carried on otherwise than for the purposes of profit or gain to any proprietor, member, or shareholder; and (b) is, in terms of its memorandum, articles of association, written rules, or other document constituting or governing its activities— (i) required to use any assets or income solely in the furtherance of its aims and objects; and (ii) prohibited from transferring any portion of its assets or income directly or indirectly so as to profit any person other than by way of (1) the provision of charitable assistance, or (2) the payment in good faith of reasonable remuneration to any of its officers or employees for any services actually rendered to it; and (iii) upon its winding-up or liquidation, obliged to give or transfer its assets remaining after the satisfaction of its liabilities to another society, association or organization with objects similar to those of the first-mentioned society, association, or organization; "Commissioner" means the Commissioner General of the Revenue Authority, who is the person responsible for administration of this Act; 7VV I 111S 'CALL: 1 1.1-. [LEVAL OlirrI,EIVICIN I IV 8 No. 10] LAWS OF GUY ANA [A.D. 2005 "consideration", in relation to a supply or import of goods or services, means the total amount in money or kind paid or payable (including a deposit on a returnable container) for the supply or import by any person, directly or indirectly, including any duties, levies, fees, and charges (other than VAT) paid or payable on, or by reason of, the supply or • import, reduced by any price discounts or rebates allowed and accounted for at the time of the supply or import, but does not include — (a) a cash payment made by any person as an unconditional gift to an association not for gain; or (b) a deposit (other than a deposit on a returnable container), whether refundable or not, given in connection with a supply of goods or services unless and until the supplier applies the deposit as consideration for the supply or such deposit is forfeited; "credit agreement" means a hire-purchase agreement or a finance lease; "days" means official working days for the Guyana Revenue Authority, excluding all public holidays; "employee" means any person receiving remuneration and includes an officer, servant, or person holding a position of employment; "employment" means the position of an individual in the service of some other person (including the Government); "exempt supply" means a supply of goods or services to which section 18 applies; "finance lease", in relation to goods, means a lease of goods where — (a) the lease term exceeds seventy-five percent of the expected life of the goods; or (b) the lease provides for transfer of ownership at the end of the lease term or the lessee has an option to purchase the goods for a fixed or determinable price at the expiration of the lease; or A.D. 2005] VALUE-ADDED TAX [No. 10 (c) the estimated residual value of the goods to the lessor at the expiration of the lease term (including the period of any option to renew) is less than twenty percent of its fair market value at the commencement of the lease; or (d) the leased goods are custom-made for the lessee and at the end of the lease term will not be usable by anyone other than the lessee; "game of chance" includes a raffle or lottery, or gaming by playing table games or gaming machines; "goods" means all kinds of corporeal movable or immovable property, thermal or electrical energy, heat, gas, refrigeration, air conditioning, and water, but does not include money; "immovable property" includes — (a) any estate, right, interest, or servitude on or over any land, and things attached to land or permanently fastened to anything attached to land; or (b) any real right in any such property; • "import" means — (a) in the case of goods, to bring or cause to be brought into Guyana; or (b) in the case of services, to supply services to a resident person — (i) by a non-resident person; or (ii) by a resident person from a business carried on by the resident person outside Guyana, to the extent that such services are utilised or consumed in Guyana, other than to make taxable supplies; "importer", in relation to an import of goods, includes the person who owns the goods, or any other person for the time being possessed of or beneficially interested in the goods; No. 10] LAWS OF GUYANA [A.D. 2005 "input tax" means VAT paid or payable in respect of a taxable supply to, or an import of goods by, a taxable person; "invoice" means a document notifying an obligation to make a payment; "Minister" means the Minister responsible for Finance; "money" means – (a) a coin or paper currency recognized in Guyana as legal tender; or (b) a coin or paper currency of a foreign country that is used or circulated as currency; or (c) a bill of exchange, promissory note, bank draft, postal order, money order, or similar instrument, other than an item of numismatic interest; "non-resident person" means a person who is not a resident person and a person referred to in paragraph (d) of the definition of "resident person" to the extent that the person is not a resident person; "output tax", in relation to a taxable person, means the tax charged or chargeable under section 9(1)(a) on a taxable supply made by the person; "person" includes the State, an agency of the State, a local authority, board, natural person, trust, company, and partnership; "promoter of public entertainment" means a person who arranges the staging of public entertainment; "public entertainment" means any musical entertainment, sporting event, theatrical performance, comedy show, dance performance, circus show, any show connected with a festival, or any similar show to which the general public is invited, but does not include entertainment organized by — (a) an approved educational institution; or (b) the board of management or a parent teacher association of an approved educational institution; or (c) a person who provides entertainment on a daily or weekly basis; or (d) a religious organisation; A.D. 20051 VALUE-ADDED TAX [No. 10 "recipient", in relation to a supply or import, means the person to whom the supply or import is made or in the case of an import of goods, for whom the goods are intended; "related persons" means — (a) a natural person and a relative of that natural person; or (b) a trust and a person who is or may be a beneficiary in respect of that trust or whose relative is or may be a beneficiary; or (c) a partnership or company (other than a stock company) and a member thereof who, together with shares or other membership interests held by persons who are related to such member under another clause of this definition, owns twenty-five percent or more of the rights to income or capital of the partnership or company; or (d) a shareholder in a stock company and the stock company if the shareholder, together with shares held by persons who are related to such shareholder under another clause of this definition — (i) controls twenty-five percent or more of the voting power in the stock company; or (ii) owns twenty-five percent or more of the rights to dividends or of the rights to capital; or (e) two companies, if a person, either alone or together with a person or persons who are related to such person under another clause of this definition — (i) controls twenty-five percent or more of the voting power in both companies; or (ii) owns twenty-five percent or more of the rights to dividends or of the rights to capital in both, companies; (f) a taxable person and a branch or division of that taxable person which is separately registered under section 55(3) as a taxable person; or No. 10] LAWS OF GUYANA [A.D. 2005 (g) any branches or divisions of a taxable person which are separately registered under section 55(3) as taxable persons; and, for purposes of paragraphs (c), (d), and (e) of this definition, a person is treated as owning, on a pro rata basis, shares or other membership interests which are owned or controlled by such person indirectly through one or more interposed persons; "relative", in relation to a natural person, means — (a) the spouse of the person; or (b) an ancestor, lineal descendant, brother, sister, uncle, aunt, nephew, niece, stepfather, stepmother, stepchild, or adopted child of that person or his spouse, and in the case of an adopted child his adopter; or (c) a spouse of any person referred to in paragraph (b), and for the purposes of this definition, an adopted child is treated as a natural child of the adopter; "rental agreement" means an agreement for the letting of goods other than a hire-purchase agreement or a finance lease; "resident person" means — (a) the State, an agency of the State, or a local authority in Guyana; (b) a natural person resident in Guyana that is, a natural person who resides permanently or being in Guyana intends to reside permanently in Guyana except for such temporary absences as to the Commissioner may seem reasonable and not inconsistent with the claim of such individual to be resident in Guyana, or who resides in Guyana for more than one-hundred and eighty-three days in the year; (c) a body, including a company, partnership, board, or trust, which is formed or created under the laws of Guyana or which is managed and controlled in Guyana; or 13 A.D. 2005] VALUE-ADDED TAX [No. 10 (d) any other person to the extent that such person carries on in Guyana a taxable or other activity and has a fixed place in Guyana relating to such activity; • "Revenue Authority" means the Guyana Revenue Authority; • "sale" means an agreement of purchase and sale, and any other transaction or act whereby ownership of goods passes or is to pass from one person to another; "services" means anything that is not goods or money; "State" means Guyana or the Republic of Guyana; "supplier", in relation to a supply, means the person making the supply; "tax period" means a calendar month in relation to a taxable person; "taxable supply" means a supply of goods or services in Guyana in the course or furtherance of a taxable activity. other • than an exempt supply; "taxation officer" means the Commissioner or any other person in the service of the Board of the Guyana Revenue Authority. "tax fraction" means the fraction calculated in accordance with the formula — R/(l + R) where "R" is the rate of VAT applicable to the taxable supply; "tax invoice" means a document provided as specified under section 280 ); "trust" means a relationship where property is under the control or management of a trustee; "trustee" means a person appointed or constituted trustee by act of parties, by order or declaration of a court, or by operation of law, and includes a person having or taking upon himself the administration or control of property subject to a trust; and 1111111111 .1"1119"6 1.176.7171r1177 SUPPLEMENT] - A 1/4L- 18'" JULY, 2005 14 No. 10] LAWS OF GUYANA [AD. 2005 "value-added tax" (VAT) or "tax" means the tax imposed under this Act, and includes an amount to the extent that it is treated as tax for the purposes of this Act. Fair market value. 3. (1) In this section — "similar import", in relation to an import of goods or services, means any other import of goods or services that, in respect of the characteristics, quality, quantity, functional components, materials, and reputation of the first-mentioned goods or services, is the same as, or closely or substantially resembles, that import of goods or services; and "similar supply", in relation to a supply of goods or services, means any other supply of goods or services that, in respect of the characteristics, quality, quantity, functional components, materials, and reputation of the first-mentioned goods or services, is the same as, or closely or substantially resembles, that supply of goods or services. (2) For the purposes of this Act, the fair market value of a supply or import of goods or services at a given date is the consideration in money which the supply or import, as the case may be, would generally fetch if supplied or imported in similar circumstances at that date in Guyana, being a supply or import freely offered and made between persons who are not related persons. (3) Where the fair market value of a supply or import of goods or services at a given date cannot be determined under subsection (2), the fair market value is the consideration in money which a similar supply or similar import, as the case may be, would generally fetch if supplied or imported in similar circumstances at that date in Guyana, being a supply or import freely offered and made between persons who are not related persons. (4) Where the fair market value of any supply or import of goods or services cannot be determined under subsection (2) or (3), the fair market value shall be determined in accordance with any method approved by the Commissioner which provides a sufficiently objective approximation of the consideration in money which could be obtained for that supply or import had the supply or import been freely offered and made between persons who are not related persons. 15 A.D. 2005] VALUE-ADDED TAX [No. 10 (5) The fair market value of a supply or import is determined at the time of the supply or import as determined under this Act. • Supply 4. (1) Subject to this Act — (a) a supply of goods means — • (1) a sale of goods; (ii) a grant of the use or right to use goods, whether with or without a driver, pilot, crew, or operator, under a rental agreement, credit agreement, freight contract, agreement for charter, or other agreement under which such use or right to use is granted; or 1) a transfer or provision of thermal or electrical energy, heat, gas, refrigeration, air conditioning, or water; and (b) a supply of services means anything done which is not a supply of goods or money, including— (i) the granting, assignment, cessation, or surrender of a right; or (ii) making available a facility or advantage; or (iii) refraining from or tolerating an activity. (2) The disposition of a taxable activity as a going concern, or a part of a taxable activity that is capable of separate operation, is a supply of goods made in the course or furtherance of such taxable activity. (3) For the purposes of subsection (2), a taxable activity or a part of a taxable activity capable of separate operation is disposed of as a going concern where — (a) all the goods and services necessary for the continued operation of that taxable activity or that part of a taxable activity are supplied to the transferee; and (b) the transferor carries on, or is carrying on, that taxable activity or that part of a taxable activity up to the time of its transfer to the transferee. (4) A supply of goods in exchange for goods or services is a supply of goods. 16 No. 10] LAWS OF GUYANA [A.D. 2005 (5) A supply of services in exchange for goods or services is a supply of services. (6) Subject to subsections (17) and (21), the application by a taxable person of goods or services acquired for use in a taxable activity to a different use, including the provision of goods or services to an employee for personal use, is a supply of those goods or services by the taxable person in the course or furtherance of that taxable activity. (7) Where goods are repossessed under a credit agreement, the repossession is a supply of the goods by the debtor under the credit agreement to the person exercising the right of repossession, and where such debtor is a registered person the supply is made in the course or furtherance of the debtor's taxable activity unless such goods did not form part of the assets held or used by the debtor in connection with that activity. (8) Where a lay-away agreement is cancelled or terminates and the seller retains an amount paid by the purchaser or recovers an amount the purchaser owes under the agreement, the cancellation or termination is a supply of services by the seller in respect of the agreement. (9) The placing of a bet by a person with another person operating a game of chance is a supply of services by the person operating the game of chance to the first- mentioned person. (10) A supply of services incidental to a supply of goods is part of the supply of goods. (11) A supply of goods incidental to a supply of services is part of the supply of services. (12) A supply or import of services incidental to an import of goods is part of the import of goods. (13) Regulations may be made by the Minister to provide that a supply of goods and services is a supply of goods or a supply of services. (14) Where a supply consists both of a supply that is charged with tax at a positive rate and— (a) a supply charged with tax at a zero rate; or (b) an exempt supply, 17 A.D. 2005] VALUE-ADDED TAX [No. 10 each part of the supply is treated as a separate supply if reasonably capable of being supplied separately. (15) A supply of services by an employee to an employer by reason of employment is not a supply. ♦ (16) The provision of goods on consignment and the transfer of goods to a person acting in a representative capacity to the transferor is not a supply. (17) Where a taxable person supplies goods or services and a credit for input tax paid on the acquisition of such goods or services was denied, the supply by the taxable person is a supply of goods or services otherwise than in the course or furtherance of a taxable activity. (18) Where a supply described in subsection (2) was charged with tax at the rate of zero percent in terms of paragraph 2(o) of Schedule I, the acquisition of the taxable activity is a supply by the recipient in the course or furtherance of a taxable activity carried on by the recipient to the extent that the goods and services comprising the taxable activity were acquired for a purpose other than consumption, use, or supply in the course of making taxable supplies, unless this purpose relates to less than ten percent of the total taxable activity. (19) Where a right to receive goods or services for a monetary value stated on a token, voucher, gift certificate, or stamp, other than a postage stamp, is granted for a consideration in money, the issue of such token, voucher, gift certificate, or stamp is not a supply, except to the extent (if any) that such consideration exceeds that monetary value. (20) Subsection (19) does not apply to a phone card, prepayment on a cellular phone, or a similar scheme of advance payment for the rendering of services. (21) A person whose registration is cancelled under section 13 is deemed to have made a taxable supply in Guyana 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. No. 10] LAWS OF GUYANA [A.D. 2005 Supply by agent or 5. (1) Subject to this section, a supply of goods or services — auction. (a) made by a person as agent for another person ("the principal") is a supply by the principal; or (b) made to a person as agent for a principal is a supply to the principal. (2) Subsection (1) does not apply to services supplied by an agent to the agent's principal. (3) A supply of goods by auction is treated as a supply of goods for consideration by the auctioneer as supplier made in the course or furtherance of a taxable activity carried on by the auctioneer. (4) Subsection (1) does not apply where the principal is a non-resident. Taxable activity. 6. (1) For the purposes of this Act, "taxable activity" means an activity carried on continuously or regularly by a person— (a) in Guyana, (b) or partly in Guyana, whether or not for profit, that involves or is intended to involve, in whole or in part, the supply of taxable goods or services to any other person for consideration. (2) Taxable activity does not include — (a) an activity carried on by a person essentially as a private recreational pursuit or hobby; or (b) an activity that involves the making of exempt supplies. (3) Anything done in connection with the commencement or termination of a taxable activity is treated as carried out in the course or furtherance of that taxable activity. (4) Subject to subsection (5), a supply is made for consideration if the supplier directly or indirectly receives a payment for the supply from the recipient or any other person, including a payment wholly or partly in money or kind. 19 A.D. 2005] VALUE-ADDED TAX [No. 10 (5) A supply made for consideration includes — (a) a supply made between related persons for no consideration; or (b) a supply of goods for use only as trade samples; or • (c) a supply referred to in section 4 (6) or (18). (6) Taxable activity includes a supply of public entertainment. 20 No. 10] LAWS OF GUYANA [kD. 2005 PART II — Authority to Administer VAT Administration of 7 (1) The Commissioner is responsible for carrying out the the Act; exercise provisions of this Act, including— of powers and performance of (a) receiving payment of VAT on imports and duties gross VAT receipts from taxable persons into a VAT deposit fund as permitted under section 38 of the Fiscal Management and No 20 of 2003 Accountability Act 2003; (b) making payments of VAT refunds and other VAT adjustments due to persons subject to this Act out of the VAT deposit fund; and (c) paying net VAT received during a tax period into the consolidated fund no later than the fifteenth day of the month following the end of that tax period. (2) The powers conferred and the duties imposed upon the Commissioner by or under the provisions of this Act may be exercised or performed by the Commissioner personally, or -by a taxation officer engaged in carrying out the said provisions under the control, direction, or supervision of the Commissioner. (3) Subject to subsection (4), a decision made and a notice or communication issued or signed by a taxation officer referred to in subsection (2) may be withdrawn or amended by the Commissioner or by the taxation officer concerned, and for the purposes of the said provisions, until it has been so withdrawn, is deemed to have been made, issued, or signed by the Commissioner. (4) A written decision made by a taxation officer, other than the Commissioner, in the exercise of a discretionary power under the provisions of this Act shall not be withdrawn or amended after the expiration of one year from the date of the written notification of such decision or of a notice of assessment giving effect thereto, unless material facts were withheld from the taxation officer by the taxpayer. (5) Subject to subsections (6) and (7), a decision made and a notice or communication issued or signed by the Commissioner or his delegate may be withdrawn or amended at any time. 21 A.D. 2005] VALUE-ADDED TAX [No. 10 (6) Where the Commissioner, knowing all the material facts at the time, makes a decision that a person is required or not required to register, and the person accepts the Commissioner's decision, and subsequently the Commissioner withdraws the decision, the Commissioner's decision shall govern the liability or non-liability of such person for payment of tax on any transaction concluded or event which occurred before the withdrawal of the decision. (7) Where the Commissioner, knowing all the material facts at the time, makes a decision as to the nature of a transaction concluded by a person, and the person accepts the Commissioner's decision, and the Commissioner subsequently withdraws the decision, the Commissioner's decision shall govern the liability or non-liability of that person for payment of tax on any transaction concluded before the withdrawal of the decision. (8) For purposes of this section, "net VAT" means gross VAT receipts in a tax period less refunds and adjustments the Commissioner is required by this Act to pay during the same tax period. Confidentiality of 8. (1) Subject to this section, a taxation officer carrying out lax information the provisions of this Act shall not — (a) disclose to any person any matter in respect of any other person that may in the exercise of the taxation officer's powers or the performance of the taxation officer's duties under the said provisions come to the taxation officer's knowledge; or (b) permit any person to have access to any records in the possession or custody of the Commissioner, except in the exercise of the taxation officer's powers or the performance of the taxation officer's duties under this Act or by order of a court. (2) Nothing in this section prevents the Commissioner from disclosing— (a) any documents or information to — 22 No. 10] LAWS OF GUYANA [A.D. 2005 (i) a person where the disclosure is necessary for the purposes of this Act or any other fiscal law; the Auditor-General where the disclosure is necessary for the performance of the Auditor-General's duties; (iii) the competent authority of the government of another country with which Guyana has entered into an agreement for the avoidance of double taxation or for the exchange of information, to the extent permitted under the agreement; or (iv) a law enforcement agency for the enforcement of any law; or (b) any information which does not identify a specific person to a person in the service of the State where such disclosure is necessary for the performance of the person's official duties. (3) A person receiving documents and information under subsection (2) is required to keep them secret under the provisions of this section, except to the minimum extent necessary to achieve the purpose for which the disclosure was made. (4) Documents or information obtained by the Commissioner in the performance of duties under this Act may be used by the Commissioner for the purposes of any other fiscal law administered by the Minister or Commissioner. (5) If a person consents in writing, information concerning that person may be disclosed to another person. (6) The Commissioner may disclose information concerning a taxpayer's affairs to a person claiming to be the taxpayer or the taxpayer's authorised representative only after obtaining reasonable assurance of the authenticity of the claim. 23 A.D. 2005] VALUE-ADDED TAX [No. 10 PART III — Imposition of Tax and Persons Liable Imposition of lax 9. (1) Subject to the provisions of this Act, there shall be and persons liable. levied and paid a tax, to be known as the value- added tax, at a single positive rate to be specified by regulations made by the Minister, which regulations shall be subject to an affirmative resolution of the National Assembly, on the value of — (a) every taxable supply by a taxable person in Guyana; and (b) every import of goods or import of services, other than an exempt import. (2) Except as otherwise provided in this Act, the tax payable under subsection (I) shall — (a) in the case of a supply to which subsection (1) (a) applies, be accounted for by the taxable person making the supply; (b) in the case of an import of goods, be paid by the importer; or (c) in the case of an import of services, be paid by the recipient of the services. (3) A transaction chargeable with tax under subsection (1) (a) and (b) shall be treated as a supply chargeable under subsection (1) (a). 24 No. 101 LAWS OF GUYANA [A.D. 2005 PART IV — Registration Taxable person. 10. (1) A taxable person is a person who is registered or is required to register under section 11. (2) For purposes of subsection (1), a person is a taxable person — (a) for a person required to register under section 11 (I), (6), (7), or (8), from the date specified I for that person under section 12 (4) (a) and (b); and (h) for a person who applies for registration under section 11 (5) and is registered under section 12 (2), from the date specified under section 12 (4) (c). 31k'11 11. (.1) Subject to this Act, every person who carries on a taxable activity and is not registered. is required to apply for registration within fifteen days of - (a) the end of any period of twelve or fewer months where during that period the person made taxable supplies the total value of which equals or exceeds the amount specified in paragraph I of Schedule IV ; or (b) the beginning of any period of twelve months where there are reasonable grounds to expect that the total value of taxable supplies to be made by the person during that period will equal or exceed the amount specified in paragraph I of Schedule IV . '1 In determining N% hether a person is required to apply t'or registration under subsection (1), the Commissioner may have regard to the value of taxable supplies made by another person where both persons are related persons. 31 For purposes of subsection (1). the value of a person's supplies is determined under section 16. (4) A person is not required to apply for registration under subsection (1) where the Commissioner is satisfied that the value of taxable supplies exceeded the amount specified under subsection t I ) solely as a consequence of 25 A.D. 2005] VALUE-ADDED TAX [No. 10 (a) the cessation, or substantial and permanent reduction in the size or scale, of a taxable activity carried on by the person; or (b) the replacement of capital goods used in the taxable activity carried on by that person. (5) A person who makes, or intends to make taxable supplies, but is not required to apply for registration under subsection (1), may apply to the Commissioner for registration under this Act, and the Commissioner is authorized to permit voluntary registration in accordance with regulations made by the Minister. (6) Notwithstanding subsection (1), the State, an agency of the State, or a Igcal authority that carries on a taxable activity is required to apply for registration from the date of commencement of that activity. (7) Notwithstanding subsection (1), a person who is an auctioneer is required to apply for registration on the date on which the person becomes an auctioneer. (8) Notwithstanding subsection (1), a promoter of public entertainment, and licensees and proprietors of places of public entertainment, are required to apply for registration before they begin making supplies in connection with the first public entertainment promoted by them. Reguirdv¢nts for 12. (1) A person to be registered is required to make an registration application for registration under section 11, in the form approved by the Commissioner, and to provide such further information as the Commissioner may require for the purposes of this Act. (2) The Commissioner is required to register a person who applies for registration within ten days of receipt of the application, unless the Commissioner is satisfied that the person is not eligible to apply for registration under section 11 or, in the case of an application under section 11 (5) -. (a) the person has no fixed place of abode or business; or (b) the Commissioner has reasonable grounds to believe that the person — (i) will not keep proper records; or (ii) will not submit regular and reliable tax returns, 26 No. 10] LAWS OF GUYANA [A.D. 2005 as required under this Act. (3) Where a person required to register under this Act fails to apply for registration as required under section 11, the Commissioner may register the person from the date prescribed by the Commissioner. (4) Registration takes effect, in the case of — (a) a person referred to in section 11 (1) (a), from • the beginning of the tax period immediately following the end of the twelve or fewer months; (b) a person referred to in section 11 (1) (b), (6), (7), or (8), from the beginning of the twelve month period, the commencement of the activities, the date the person becomes an auctioneer, or the date the promoter, licensee or proprietor begins making taxable supplies in connection with public entertainment, respectively; or (c) an application under section 11(5), from the beginning of the tax period immediately following the period in which the person applied for registration. (5) The Commissioner shall, within ten days of receipt of an application under subsection (2), serve a notice in writing on an applicant for registration of the decision in respect of the application. 4 (6) An applicant dissatisfied with a decision referred to under subsection (5) may challenge the decision only under Part X. (7) The Commissioner shall issue to each person registered a certificate of registration which states the name and other relevant details of the registered person, the date on which the registration takes effect, and the VAT registration number of the registered person. (8) The Commissioner is required to establish and maintain a register containing the relevant details of all registered persons. (9) Every registrant is required to display the certificate of registration issued to him under subsection (7) in a conspicuous place at each location at which he engages in taxable activities. 2 A.D. 2005] VALUE-ADDED TAX [No. 10 (10) A taxable person is required to notify the Commissioner, in writing, within fifteen days of (a) any change in the name, address, place of business, constitution, or nature of the principal taxable activity or activities of the person; and (b) any change of address from which, or name in which, any taxable activity is carried on by the taxable person; or (c) any change in circumstances if the person ceases to operate or closes on a temporary basis in a situation not covered in section 13 (1). Cancellation of 13. (1) Subject to subsection (2), a taxable person who ceases registration. 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. (2) The Commissioner is not required to cancel the registration of a taxable person under subsection (1) 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. (3) A notification pursuant to subsection (1) is required to be made in writing and to state the date upon which that person ceased to carry on all taxable activities, and whether or not that person intends to carry on any taxable activity within twelve months from that date. (4) 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. (5) The Commissioner may cancel the registration of a person who is not required to apply for registration under section 11 if the person — Of GI TA A D. 2005 (a) has no fixed place of abode or business: (h) has not kept proper accounting records relating to any business activity carried on by that person: or (c) has not submitted regular and reliable tax returns as required by sectioi. 31. (6) A date determined by the Commissioner for the cancellation of registration under subsection (4) or (5) may be retrospective to a date not earlier than (a) the last day of the tax period during which taxable activity carried on by the person ceased; or (b) the date on which the person was registered under this Act, if the Commissioner is satisfied that the person did not, from that date, carry on any taxable activity. (7) Subject to subsections (8) or (9), a taxable person may apply in writing to the Commissioner to have the person's registration cancelled where, at any time, the value of that person's taxable supplies— (a) in the past twelve months has not been, or (b) in the period of twelve months then beginning will not be, more than the amount specified under section 11 (1). (8) A person — (a) required to register under section 11 (1) who ceases to satisfy the criteria thereunder; or (b) registered as a result of an application under section 11 (5), may apply for cancellation of the registration only after the expiration of two years from the date the registration took effect. (9) Subsection (7) does not apply to the State, an agency of the State, or a local authority under section 11 (6), to an auctioneer under section 11 (7), or to a promoter of public entertainment under section 11 (8). 29 A.!).20051 VAL I 1E- A DDED 7:4X [No. 10 ( ID) Where the Commissioner is satisfied that a taxable person who has made an application under subsection (7) or (8) is entitled to have a registration cancelled, the Commissioner is required to cancel the person's registration with effect from the end of the tax period in which the registration is cancelled unless the Commissioner orders the cancellation to take effect at an earlier date. (11) Any obligation or liability under this Act, including the obligation to pay tax and lodge returns, of any person in respect of anything done or omitted to be done by that person while the person is a taxable person, is not affected by cancellation of the person's registration. (12) Where the registration of a person is cancelled, the Commissioner is required to remove the person's name and details from the register described in section 12 (8). (13) 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. 30 No. 10] LAWS OF GUYANA [A.D. 2005 PART V - Rules Relating to Supplies rime of supply. 14. (1) Subject to this Act, a supply of goods or services occurs on the earliest of the date on which - (a) the goods are delivered or made available or the performance of services is completed; (b) an invoice for the supply is issued by the supplier; or (c) any consideration for the supply is received. (2) A supply of goods under a credit agreement occurs on the date of commencement of the agreement. (3) A supply of goods pursuant to a lay-away agreement occurs when the goods are delivered to the purchaser. (4) A supply of goods or services under section 4 (6) occurs when the goods or services are applied to a different use. (5) A supply of goods under section 4 (7) occurs when the goods are repossessed, or where the debtor may under any law be reinstated in his rights and obligations under the credit agreement, the day after the last day of any period during which the debtor may under such law be so reinstated. (6) A supply of services under section 4 (8) occurs when the seller obtains the right to retain any amount paid by the purchaser or when the seller recovers any amount owing by the purchaser under the agreement. ( 7) A supply for a consideration in money received by the supplier by means of a machine, meter, or other device operated by coin, note, or token occurs when the coin, note, or token is taken from that machine, meter, or other device by or on behalf of the supplier. (8) Goods supplied under a rental agreement or services supplied under an agreement that provides for periodic payments are treated as successively supplied for successive parts of the period of the agreement, and each of the successive supplies occurs when a payment becomes due or is received, whichever is the earlier. (9) Where - (a) goods described under section 4 (1) (a) (iii) are supplied: or 31 A.D. 2005] VALUE-ADDED TAX [No. 10 (b) goods or services are supplied dirSctly in the construction, major reconstruction, manu- facture, or extension of a building or engineering work, and the consideration becomes due and payable in instalments or periodically, the goods or services are treated as successively supplied for each period to which a payment for the goods or services relates and each successive supply occurs when payment in respect of the supply becomes due, or is received, or any invoice relating only to that payment is issued, whichever is the earliest. (10) A supply under section 4 (18) occurs when the supply under section 4 (2), to which it relates, occurs. (11) To the extent that the issuance of a token, voucher, gift certificate, or stamp is a supply under section 4 (19), the supply occurs when the token, voucher, gift certificate, or stamp is issued. (12) The forfeit of a deposit (other than a deposit on a returnable container) is a supply of services when the deposit is forfeited. (13) A supply under subsection 4 (21) occurs at the time the registration is cancelled. Place of supply. 15. (1) Subject to this Act, a supply of goods takes place where the goods are delivered or made available by the supplier or, if the delivery or making available involves the goods being transported, the place where the goods are when the transportation commences. (2) A supply of thermal or electrical energy, heating, gas, refrigeration, air conditioning, or water takes place where the supply is received. (3) Subject to this section, a supply of services takes place at the location of the supplier's place of business from which the services are supplied. (4) The supply of the following goods or services takes place where the recipient uses or obtains the advantage of the goods or services (a) a transfer or assignment of a copyright, patent, licence, trademark, or similar right; No. 10] LAWS OF GUYANA [A.D. 2005 (b) the service of a consultant, engineer, lawyer, architect, or accountant, the processing of data or supplying information, or any similar service; (c) an advertising service; (d) the obligation to refrain from pursuing or exercising taxable activity, employment, or a right described in this subsection; (e) the supply of personnel; (0 the service of an agent in procuring for the agent's principal a service described in this subsection; or (g) the leasing of movable property (other than transport property). (5) The supply of cultural, artistic, sporting, educational, or similar activities, or services connected with movable goods, takes place where the service is physically carried out, unless the service is described in subsection (4). (6) The supply of services connected with immovable property takes place where the property is located, unless the service is described in subsection (4). (7) A supply of services of, or incidental to, transport takes place where the transport occurs, unless the service is described in subsection (4). (8) Services that are supplied from a place of business in Guyana and that would be treated as supplied outside Guyana under subsections (4) — (7) are considered as supplied in Guyana and are considered as exported from Guyana for purposes of Schedule I. Value of supply. 16. (1) Subject to this Act, the value of a supply of goods or services is the amount of the consideration for the supply. (2) Where a portion of the price of a supply represents tax imposed by this Act that is not accounted for separately, the value of the supply is the price reduced by an amount equal to the tax fraction multiplied by that price. (3) Where — (a) a supply is made by a taxable person for no consideration or for a consideration that is less than the fair market value of that supply; and 33 A.D. 2005] VALUE-ADDED TAX [No. 10 (b) (i) the supplier and the recipient are related persons; or the recipient is a charitable organization, institution of religious worship, educational institution, old- 4 age home, orphanage, children's home, or institution of a similar nature, the value of the supply is the fair market value of the supply. • (4) Where a taxable person makes a supply of goods or services referred to in section 4 (6), the value of the supply is the lesser of — (a) the consideration paid or payable by the taxable person for those goods or services; or (b) the fair market value of the supply. (5) The Minister may by regulation prescribe rules to determine the value of a supply governed by subsection (4) where the taxable person applies less than the entire goods or services to a different use. (6) The value of a supply of goods under a credit agreement is the cash value of the supply. (7) Where a debtor makes a supply of goods as a result of the repossession of those goods from the debtor under a credit agreement, the value of the supply is an • amount equal to the balance of the cash value of the supply of those goods to the debtor that has not been recovered at the time of the supply. (8) For purposes of subsection (7), the balance of the cash value of the supply is the amount remaining after deducting from the cash value so much of the sum of the payments made by the debtor under the credit agreement as, on the basis of an apportionment in accordance with the rights and obligations of the parties to such agreement, may properly be regarded as having been made in respect of the cash value of the supply. (9) The value of a supply of services under section 4 (8) is an amount equal to the amount referred to in that subsection that is retained or recoverable. (10) Where the grant of any right to receive goods or services for a monetary value stated on any token, voucher, gift certificate, or stamp is a supply under section 4 (19), the value of the supply is an amount equal to the amount by which the consideration exceeds the monetary value of the token, voucher, gift certificate, or stamp. 0,4 No. 10] LAWS OF GUYANA [A.D. 2005 (11) Where the holder of a token, voucher, gift certificate, or stamp issued by a taxable person (the issuer) for no consideration surrenders the token, voucher, gift certificate, or stamp to a supplier of goods or services (other than the issuer) in return for a price discount on a taxable supply, the supplier is required to include in the value of the supply of such goods or services the monetary value stated on the token, voucher, gift certificate, or stamp, less the tax fraction of the monetary value. (12) For purposes of subsection (11), the monetary value is inclusive of tax. (13) Where a taxable supply is not the only matter to which the consideration for the supply relates, the value of the supply is such part of the consideration as is properly attributable to it. (14) Except as otherwise provided in this section, if a supply is made for no consideration the value of the supply is nil. (15) The value of a supply of services under section 4(9) is the amount received in respect of the bet, reduced by an amount equal to the tax fraction multiplied by the amount received in respect of the bet. (16) The value of a supply referred to in section 4(18) is the consideration for the acquisition of the taxable activity reduced by an amount which bears to the amount of such consideration the same ratio as the intended use or application of the taxable activity for making taxable supplies bears to the total intended use or application of the taxable activity. (17) The value of a supply referred to in section 4(21) is equal to — (a) except as provided in paragraph (b), the fair market value of the goods or services deemed to be supplied; and (b) in the case of capital goods subject to the allowance for depreciation under the Income Tax Act, the undepreciated cost of the goods Cap. 81:01 deemed to be supplied. 35 A.D. 2005] VALUE-ADDED TAX [No. 10 Zero-rating. 17. (1) Where, but for this section, a supply of goods or services would be charged with tax under section 9 (1) (a), the supply is charged with tax at the rate of zero percent if it is specified in paragraph 2 of Schedule I. I (2) Where a taxable person has applied the rate of zero • percent to a supply under this section, the taxable person is required to obtain and retain such documentary proof as is acceptable to the Commissioner substantiating the person's entitlement to apply the zero rate to the supply. Exempt supply. 18. (1) Subject to subsection (2), a supply of goods or services is an exempt supply if it is specified in paragraph 2 of Schedule II. (2) A supply of goods or services is not an exempt supply if, in the absence of subsection (1), the supply would be charged with tax at the rate of zero percent under section 17. 4 36 No. 10] LAWS OF GUYANA [A.D. 2005 PART VI — Imports Time of import. 19. (1) An import of goods occurs when the goods are entered Cap. 82:01 for purposes of the Customs Act. (2) An import of services occurs at the time determined by applying section 14 to the import on the basis that the import is a supply of services. • Value of import 20. (1) The value of an import of goods is an amount equal to the sum of— (a) the value of the goods for the purposes of Cap K2:01 customs duty under the Customs Act; (b) the cost of insurance and freight which is not included in the customs value under paragraph (a); and (c) the amount of any customs duty, excise tax, or any other fiscal charge (other than VAT) payable on the importation of such goods. (2) Subject to subsection (3), the value of an import of services is the amount of the consideration for the import. (3) Where (a) an import of services is made for no consideration or for a consideration that is less than the fair market value of that import; and (b) the supplier and the recipient are related persons, the value of the import is the fair market value of the import. (4) Where a portion of the price of an import of services represents tax imposed by this Act that is not accounted for separately, the value of the import is the price reduced by an amount equal to the tax fraction multiplied by that price. I .enipt unpin 21. An import of goods or services is an exempt import if the import would be a zero-rated supply under section 17 or an exempt supply under section 18 if it were a supply of goods or services in Guyana. A.D. 2005] VALUE-ADDED TAX [No. 10 Import declaration 22. (1) Where tax is payable on an import of goods, the and payment of importer is required, upon entry of the goods, to lax. furnish the Commissioner with an import declaration and pay the tax due on the import in accordance with the arrangements referred to in subsection (4). I (2) Where tax is payable on an import of services, other • than where section 402) applies, the person liable for the tax under section 9 (2) (c) is required to — (a) furnish the Commissioner with an import declaration; and (b) pay the tax due in respect of the import, within twenty days after the time of the import. (3) An import declaration under subsection (1) or (2) shall (a) be in the form prescribed by the Commissioner; (b) state the information necessary to calculate the tax payable in respect of the import; and (c) be furnished in the manner prescribed by the 4 Commissioner. (4) Except where the contrary intention appears, whether It) Cap. 82:01 in this Act or in regulations made under this Act, the provisions of the Customs Act, relating to the import, transit, coastwise carriage, clearance of goods, and payment and recovery of duty apply, so far as relevant, to the tax charged under this Act on the import of goods, with such exceptions, modifications, and adaptations as the Minister may by regulation prescribe. No. 10) LAWS OF GUYANA [AD. 2005 PART VII — Calculation of Tax Payable 23. (1) The tax payable by a taxable person for a tax period in respect of taxable supplies is the total amount of output tax payable by the person in respect of taxable supplies made by the person during the period, less the total input tax credit allowed to the person under (2) section 24 for the period. Where the total amount of input tax credit allowed to a • taxable person for a tax period under subsection (1) exceeds the total amount of output tax payable by the person for that period, the amount of the excess credit is dealt with in accordance with section 35. Input tax credit. 24. (1) Subject to this section, the total amount of input tax allowed as a credit for purposes of section 23 is the sum of -- (a) the input tax payable in respect of taxable supplies made to the person during the tax period, and paid in respect of any import of goods by the person during the tax period, where the supply or import is for use in a taxable activity carried on by the person; (b) any input tax credit allowed under section 26 for the tax period; (c) any input tax to which subsection (4) applies for the tax period; (d) an amount equal to the tax fraction of any amount paid during the tax period by the taxable person as a prize or winnings to the recipient of services under section 4(9); (e) an amount equal to the tax fraction of any amount paid during the tax period by the taxable person to a supplier in respect of the redemption of a token, voucher, gift certificate, or stamp referred to in section 16(11) by the supplier; and (0 any amount carried forward under section 35 (2). (2) Subject to this section, no credit for input tax is allowed in respect of a supply or import unless — ?9 A.D. 2005] VALUE-ADDED TAX [No. 10 (a) a tax invoice, a sales invoice or tax debit or tax credit note, as the case may be, in relation to the supply, has been provided in accordance with sections 28 or 29 and is held by the taxable person taking the credit at the time a • (b) return in respect of the supply is lodged, other than when a tax invoice is not required to be provided; and a bill of entry or validating bill of entry under Cap 82 01 the Customs Act, or a document issued by the Commissioner evidencing payment of tax in relation to an import that has been delivered in accordance with the Customs Act or this Act and is held by the taxable person taking the Cap. 82 01 credit at the time a return in respect of the import is lodged. (3) Where a taxable person does not have a tax invoice evidencing the input tax paid, the Commissioner may allow an input tax credit in the tax period in which the credit arises where the Commissioner is satisfied — (a) that the taxable person took all reasonable steps 4 to acquire a tax invoice; (b) that the failure to acquire a tax invoice was not the fault of the taxable person; and (c) that the amount of input tax claimed by the taxable person is correct. (4) Subject to subsection (5), a taxable person, in the first tax period in which the person is registered, is allowed a credit for input tax paid or payable by the person in respect of — (a) any taxable supplies of goods, including capital goods, made to the person; and (b) any import of goods, including capital goods, by the person, prior to becoming registered, to the extent that the goods are for use or re-supply in a taxable activity carried on by the person after registration. (5) Subsection (4) applies where — (a) the supply or import occurred not more than three months prior to the date the registration takes effect; 40 No. 101 LAWS OF GUYANA [A.D. 2005 (b) the goods are on hand at the date the registration takes effect; and (c) the subsection (2) substantiation requirements are satisfied. • Input tax credit 25. (1) In this section — allocation and disallowance "entertainment" means the provision of food, rules. beverages, tobacco, accommodation, amusement, recreation, or other hospitality by a taxable person whether directly or indirectly to any person; and "passenger vehicle" means a road vehicle, including a double cab vehicle, designed or adapted for the transport of nine or fewer seated persons. (2) No amount may be deducted under section 24 by a taxable person for input tax paid or payable in respect of — (a) a taxable supply to, or import by, the person of a passenger vehicle, unless the person is in the business of dealing in, or hiring of, such vehicles, and the vehicle was acquired for the purposes of such business; (b) a taxable supply to, or import by, the person of • goods or services acquired for the purposes of entertainment or providing entertainment, unless— (i) the person is in the business of providing entertainment and the taxable supply or import relates to the provision ifs of taxable supplies of entertainment in the ordinary course of that business; or (ii) the person is in the business of providing taxable supplies of trans- portation services and the entertainment is provided to passengers as part of the transportation service; or (c) any fees or subscriptions paid by the person in respect of membership of any person in a club, association, or society of a sporting, social, or recreational nature. (3) Subject to subsection (5), where only a part of the supplies made by a taxable person during a tax period are taxable supplies, the amount of the input tax allowed as a credit under section 24 (1)(a) for that period is determined as follows — 41 A.D. 2005] VALUE-ADDED TAX [No. 10 (a) in respect of a supply or import received which is directly allocable to the making of taxable supplies, the full amount of input tax payable in respect of the supply or import shall be allowed as a credit; (b) in respect of a supply or import received which is directly allocable to the making of exempt supplies, no amount of input tax payable in respect of the supply or import shall be allowed as a credit; or (c) in respect of a supply or import received which is used for the making of both taxable and exempt supplies, the amount calculated according to the following formula — A x B/C where — A is the total amount of input tax payable in respect of supplies and imports received during the period for which a credit is allowed under section 24 (1) (a), less the input tax accounted for under paragraphs (a) and (b); B is the total amount of taxable supplies made by the taxable person during the preceding financial year of the taxable person; and C is the total amount of all supplies made by the taxable person during the preceding financial year of the taxable person. (4) For purposes of the fraction B/C in subsection (3) (c), for the first financial year during which the person is a taxable person, the period referred to in B ind C shall be the total number of tax periods, including the current tax period, during which the person has been a taxable person. (5) Where the fraction B/C in subsection (3) (c) is more than 0.90, the taxable person may deduct the total amount of input tax on supplies and imports described in that paragraph. 42 No. 10] LAWS OF GUYANA [A.D. 2005 (6) Notwithstanding subsection (3), where a taxable person makes both taxable and exempt supplies during a tax period, the Commissioner may determine the amount of input tax allowed for the tax period on such other basis as the Commissioner considers reasonable. (7) A taxable person dissatisfied with a decision of the Commissioner under subsection (6) may challenge the decision only under Part X. Post-sale 26. (1) This section applies where, in relation to a supply by a adjustments. registered person — (a) the supply is cancelled; (b) the taxation of the supply changes because the nature of the supply is fundamentally varied or altered; (c) the previously agreed consideration for the supply is altered, whether due to an offer of a discount or for any other reason; or (d) the goods or services or part thereof are returned to the supplier. (2) Subsection (1) applies only where the registered person making the supply has — (a) provided a tax invoice in relation to the supply and the amount shown on the invoice as the tax charged on the supply is incorrect as a result of the occurrence of one or more of the events described under subsection (I) (a) - (d); or (b) lodged a return for the tax period in which the supply occurred and has accounted for an incorrect amount of output tax on that supply as a result of the occurrence of one or more of the events described under subsection (1) (a) - (d). (3) Where subsection (1) applies, the registered person making the supply is required to make an adjustment as specified under subsection (4) or (6). (4) Where the output tax properly chargeable in respect of the supply exceeds the output tax actually accounted for by the registered person (the supplier), the amount of the excess is deemed to be output tax charged by the supplier in relation to a taxable supply made in the tax period in which the event referred to in subsection (1) occurred. 43 A.D. 2005] VALUE-ADDED TAX [No. 10 (5) For purposes of section 23, where a registered person issues a tax debit note to rectify the output tax charged to a registered recipient in the circumstances specified under subsection (4), the additional tax specified in the tax debit note is deemed to be input tax payable by the V registered. recipient in the tax period in which the tax debit note is received. 0 (6) Subject to subsection (8), where the output tax actually accounted for by the registered person exceeds the output tax properly chargeable in relation to the supply, the registered person is allowed an input tax credit under section 24 for the amount of the excess in the tax period in which the event referred to in subsection (1) occurred. (7) Where a supplier issues a tax credit note to rectify the output tax charged to the recipient who is a registered person in the circumstances specified under subsection (6), the additional tax specified in the tax credit note is treated as output tax payable by the recipient in respect of a taxable supply made by the recipient in the tax period in which the tax credit note is received. (8) Where the supply has been made to a person who is not a registered person, a credit under subsection (6) is not allowed, unless the amount of the excess tax has been repaid to the recipient of the supply, whether in cash or as a credit against an amount owing to the registered person by the recipient. ' Interest on unpaid 27. (1) A person who fails to pay tax by the due date for tax. payment under section 42 is liable for interest at the rate specified in paragraph 2 of Schedule IV on the amount unpaid, calculated from the date on which the payment was due until the date on which paymc - t was made. (2) Interest under subsection (1) is calculated as simple interest for each month, or part of a month, curing which it remains unpaid. (3) Interest paid by a person under subsection (1) shall be refunded to the person to the extent that the tax to which it relates is subsequently determined not :3 have been due and payable. 44 No. 10] LAWS OF GUYANA [A.D. 2005 (4) The provisions of this Act relating to the payment, collection and recovery of tax apply to any interest charged under this section as if the interest were tax due under this Act. Tax invoices and 28. (1) Subject to subsection (2), a registered person, referred sales invoices. to as the "registered supplier", making a taxable supply to a person, referred to as the "recipient", is required to provide the recipient with an original tax • invoice for the taxable supply containing such particulars as specified in paragraph 1 of Schedule III. (2) A registered supplier making a taxable supply is authorized to issue a sales invoice in lieu of a tax invoice if the total consideration for the taxable supply is in cash and does not exceed the amount specified in paragraph 3 of Schedule IV. (3) A person is prohibited from providing a tax invoice in circumstances other than those specified under this section. (4) Subject to subsection (6), a registered supplier shall issue only one tax invoice for each taxable supply. (5) Where, within forty days after the date of a supply, a registered recipient who has not received a tax invoice as required by subsection (1) requests the registered supplier, in writing, to provide a tax invoice in respect of the taxable supply, the supplier is required to comply with the request within ten days after receiving it. (6) Where a registered recipient claims to have lost the original tax invoice for a taxable supply, the registered supplier may provide a copy clearly marked "copy." Tax credit and 29. (1) Where a tax invoice has been issued in the debit notes. circumstances specified under section 26(2)(a) and the amount shown as tax charged in that tax invoice exceeds the tax properly chargeable in respect of the supply, the registered person making the supply is required to provide a registered recipient of the supply with a tax credit note containing the particulars specified in paragraph 2 of Schedule III. 45 A.D. 2005] VALUE-ADDED TAX [No. 10 (2) A person may not provide a tax credit note in any circumstances other than those specified under subsection (1). (3) Where a tax invoice has been issued in the circumstances specified under section 26 (2) (a) and • the tax properly chargeable in respect of the supply exceeds the amount shown as tax charged in that tax invoice, the registered person making the supply is required to provide a registered recipient of the supply with a tax debit note containing the particulars specified in paragraph 3 of Schedule III. (4) A person may not provide a tax debit note in any circumstances other than those specified under subsection (3). (5) A registered person may issue only one tax credit note or tax debit note for the amount of the excess stated in subsections (1) and (3), respectively. (6) Notwithstanding the provisions of this section, where a registered person claims to have lost the original tax credit note or tax debit note, the registered person who made the supply may provide a copy clearly marked "copy". 4' 46 No. 10] LAWS OF GUYANA [A.D. 2005 Tax Administration Provisions PART VIII — Tax Period, Returns and Assessments lax period . 30. The Minister may, by regulations, authorise a different tax period for specific categories or classes of taxable persons. • Returns. 31. (1) Every taxable person is required to lodge .a tax return for each tax period with the Commissioner within fifteen days after the end of the period, whether or not tax is payable in respect of that period. (2) A tax return is required to — (a) be in the form prescribed by the Commissioner; (b) state the information necessary to calculate the tax payable in accordance with section 23 for the period; and (c) be lodged in the manner prescribed by the Commissioner. (3) In addition to or instead of any return required under this Act, the Commissioner may by notice in writing require a person, whether or not a taxable person, to lodge with the Commissioner, whether on that person's own behalf or as agent or trustee of another person, a such fewer, additional, or other returns in the prescribed form as and when required by the Commissioner for the purposes of this Act. (4) A person dissatisfied with a decision of the Commissioner under subsection (3) may challenge the decision only under Part X . Extension of time. 32. (1) Upon application in writing by a person, the Commissioner may, where good cause is shown by the person, extend the period within which a return required under section 31 is to be lodged. (2) The granting of an extension of time under subsection (1) does not alter the due date for payment of tax under section 42. (3) A person dissatisfied with a decision of the Commissioner under subsection (1) may challenge the decision only under Part X. A.D. 2005] VALUE-ADDED TAX [No. 10 Assessments. 33. (1) Where — (a) a person fails to lodge a return as required by section 31 or fails to furnish an import declaration as required by section 22 (1) or (2); (b) the Commissioner is not satisfied with a return or import declaration furnished by a person; (c) the Commissioner has reason to believe that a person will become liable for the payment of an amount of tax but is unlikely to pay such amount; (d) a person, other than a taxable person, supplies goods or services and represents that tax is charged on the supply; (e) a taxable person supplies goods or services and the supply is not a taxable supply or is a taxable supply charged with tax at the rate of zero percent and, in either case, the taxable person represents that a positive rate of tax is charged On the supply; or (1) the Commissioner has determined the liability of any person under section 91 (2), the Commissioner may make an assessment of the amount of tax payable by the person or of the amount of tax represented by the person as payable in respect of a supply. (2) The person assessed under subsection (1) — (a) in the case of an assessment under subsection (1) (d) or (e), is the person making the supply; or (b) in the case of an assessment under subsection (1) (f), is the person whose liability has been determined under section 91 (2); or (c) in any other case, is the person required to account for the tax under this Act. (3) An assessment under subsection (1) (a), (c), (d), (e), or (f) may be made at any time. (4) An assessment under subsection (l)'(b) No. 10] LAWS OF GUYANA A.D. 2005 (a) where the default was due to fraud, or gross or wilful neglect committed by, or on behalf of, the person who furnished the return or import declaration, may be made at any time; or (b) in any other case, may be made within three years after the date the return or import declaration was furnished. (5) The Commissioner may, based on the information available, estimate the tax payable by a person for the purposes of making an assessment under subsection (1). (6) Where a taxable person is not satisfied with a return lodged by that person under this Act, that person may apply to the Commissioner to make an addition or alteration to that return. (7) An application under subsection (6) is required to be in writing, to specify in detail the grounds upon which it is made, and to be submitted within three years after the date the return was lodged by the taxable person or, in the event an assessment is made by the Commissioner after such three year period, within forty days after the date that notice of such assessment is served on the taxpayer. (8) After considering an application under subsection (6), the Commissioner shall make an assessment of the amount that, in the Commissioner's opinion, is the amount of tax payable under this Act. (9) Where an assessment has been made under this section, the Commissioner is required to serve a notice of the assessment on the person assessed, which notice shall state— (a) the tax payable; (b) the date the tax is due and payable; and (c) the time, place, and manner of objecting to the assessment. (10) The Commissioner may, within three years after service of the notice of assessment, or in the case of assessments described in subsection (4), within the deadline specified therein, amend an assessment by making such alterations or additions to the assessment as the Commissioner considers necessary, in which case, the Commissioner is required to serve notice of *e amended assessment on the person assessed. 4Y A.D. 2005] VALUE-ADDED TAX [No. 10 (11) An amended assessment is treated in all respects as an assessment under this Act. (12) An amount assessed under subsection (1) (d), (e) or (0 is treated, for all purposes of this Act, as tax charged under this Act. (13) The action taken by the Commissioner under sub- sections (1) and (10) shall be subject to appeal under PART X. General provisions 34. (1) The original or a certified copy of a notice of relating to assessments. assessment is receivable in any proceedings as conclusive evidence that the assessment has been duly made and, except in proceedings under Part X relating to the assessment, that the amount and all particulars of the assessment are correct. (2) No assessment or other document purporting to be made, issued, or executed under this Act shall be — (a) quashed or deemed to be void or voidable for want of form; or (b) affected by reason of mistake, defect, or omission therein, if it is, in substance and effect, in conformity with this Act and the person assessed, or intended to be assessed or affected by the document is designated in it according to common understanding. No. 10) LAWS OF GUYANA [A.D. 2005 PART IX — Refund of Tax and Tax Relief Carty forward of 35. (1) Where— excess credits and refund of tax. (a) the total amount of input tax creditable by a taxable person under section 24 for a tax period exceeds the person's output tax for that period; Or (b) the amount of tax paid by a person, other than in circumstances specified under paragraph (a), was in excess of the amount properly charged to tax under this Act, the amount of the excess shall be treated in the manner provided in this section. (2) Except as provided in subsection (5), the excess described in subsection (1)(a) is carried forward to the next tax period and treated as input tax creditable in that period. (3) Subject to this section, if any of the excess referred to in subsection (1)(a) for a tax period remains after being carried forward and used as input tax creditable in six consecutive tax periods, the taxable person may file with the Commissioner a claim for refund for the amount remaining, in the form and with the documentation specified in regulations. (4) By the end of the second calendar month following the date the claim for refund described in subsection (3) is filed or, where the Commissioner orders an audit of the claim for refund described in subsection (3), within ten days after conclusion of the audit, if later, the Commissioner, to the extent satisfied that the taxpayer is entitled to the amount of the refund claimed — (a) may apply the amount of the refund claimed under subsection (3) in reduction of any tax, levy, interest, or penalty payable by the person in terms of this Act, other taxes collected by the Commissioner, and any unpaid amounts Cap. 80:02 under the repealed Consumption Tax Act; and (b) is required to refund any excess remaining to the taxable person. J3 A.D. 2005] VALUE-ADDED TAX [No. 10 Where at least fifty percent 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 (I) (a) for a taxable p t period, the person may file with the Commissioner a claim for refund for the excess credits attributable to • (6) the zero-rated supplies in the form and with the documentation specified in regulations. By the end of the first calendar month following the date the return described in subsection (5) is filed or, where the Commissioner orders an audit of the claim for refund described in subsection (5), within ten days after conclusion of the audit, if later, the Commissioner, to the extent satisfied that the taxpayer is entitled to the amount of the refund claimed — (a) may apply the amount of the refund claimed under subsection (5) in reduction of any tax, levy, interest, or penalty payable by the person in terms of this Act, other taxes collected by the Commissioner, and any unpaid amounts Cap. 80.02 under the repealed Consumption Tax Act; and ea (b) is required to refund any excess remaining to the taxable person. Notwithstanding subsection (4) (b) or (6) (b), if the amount of the excess to be refunded is not more than the amount specified in paragraph 4 of Schedule IV, the excess shall be carried forward to the next succeeding tax period and be accounted for as provided in section 24 (1) (0. (8) Where a person has overpaid tax in the circumstances specified under subsection (1) (b), the person may apply in writing to the Commissioner for a refund of the excess amount of tax, accompanied by documentary proof of payment of the excess amount. (9) For purposes of subsection (8), if the claim for refund is filed by a taxable person — (a) the Commissioner is required to deal with the - claim as if it were a claim under subsection (ii• and No. 10J LAWS OF GUYANA [A.D. 2005 (b) to the extent that any output tax claimed to be refundable is an amount borne by a recipient who is not a registered person, the output tax is refundable only to the extent that it will be repaid by the taxable person to that recipient, whether in cash or as a credit against an amount owing to the taxable person by the (10) recipient. Where a taxable person has failed to lodge a return for • any tax period as required under this Act, the Commissioner may withhold payment of any amount refundable under this section until the taxable person lodges such return as required. (11) To be considered, a claim for a refund specified in subsection (3), (5), or (8) must be made within three years after the date the person has the right to apply for the refund under this section. (12) The Commissioner is required to serve on a person claiming a refund, a notice in writing of the decision in respect of the claim. (13) A person claiming a refund under this section who is dissatisfied with a decision referred to in subsection (12) may challenge the decision only under Part X. Interest on 36. (1) Where the Commissioner fails to pay a refund of tax overpayment. relating to an excess under section 35 by the date specified under that section, the Commissioner is required to pay the taxable person entitled to the refund an additional amount as interest at the rate specified in paragraph 5 of Schedule IV, commencing from the date on which the refund was due and ending on the date the payment of the refund is made. (2) Where the Commissioner is required to refund an amount of tax to a person as a result of— (a) a decision of the VAT Board of Review under section 39; or (b) a decision of the High Court under section 40, the Commissioner is required to pay interest at the rate specified in paragraph 5 of Schedule Non the amount of the refund for the period commencing from the date J./ A.D. 2005] VALUE-ADDED TAX [No. 10 of the refund for the period commencing from the date the person paid the tax refunded and ending on the date the refund is made. Others eligible for 37. (1) The Minister may, in accordance with regulations tax refund. made by him in consultation with the Minister of Foreign Affairs, authorise the granting of a refund of • tax paid or borne on a supply to or import by — (a) a person to the extent provided under the Diplomatic Immunities and Privileges Act, an Cap. 18:01 international convention having force of law in Guyana, or the recognised principles of international law; or (b) a diplomatic or consular mission of a foreign country established in Guyana, relating to transactions concluded for the official purposes of such mission; or (c) an organization or government to the extent provided under a technical assistance or humanitarian assistance agreement entered into with the Government of Guyana; or (d) a non-resident individual on goods specified in the regulations that are exported from Guyana as accompanied baggage, but only if the total tax on such goods exceeds the amount specified in paragraph 6 of Schedule IV . (2) The refund provided for in subsection (1) (a) and (d) is not available to a citizen or a permanent resident of Guyana. (3) The Minister may authorise any relief under this section on such conditions and subject to such restrictions as the Minister may deem fit. (4) A claim for a refund of tax under this section is to be made in such form and at such time as the Minister may prescribe and shall be accompanied by proof of payment of tax. (5) The Minister may, by notice in the Gazette, apply the provisions of this section to a public international organisation and its officials and employees. No. 10] LAWS OF GUYANA [AD. 2005 PART X — Objections and Appeals Objections. 38. (I) A person dissatisfied with an appealable decision may lodge an objection to the decision with the Commissioner within twenty days after the service of the notice of the decision. (2) Where the Commissioner is satisfied that owing to absence from Guyana, sickness, or other reasonable cause, the person was prevented from lodging an • objection within the time specified under subsection (1) and there has been no unreasonable delay by the person in lodging the objection, the Commissioner may accept an objection lodged after the time specified under subsection (I). (3) An objection to an appealable decision is required to be in writing and to specify in detail the grounds upon which it is made. (4) Where tax determined to be paid is disputed in part, then the part which is not disputed should be paid in full before any objection to the Commissioner on the disputed sum is considered. (5) After considering the objection, the Commissioner may allow the objection in whole or part and amend the assessment or the decision objected to accordingly, or disallow the objection. (6) The Commissioner is required to serve the person objecting with notice in writing of the decision on the objection. (7) A person dissatisfied with a decision of the Commissioner under subsection (2) may challenge the decision only under Part X. Appeal to VAT 39. (1) In this section "VAT Board of Review" means a VAT Board or review. Board of Review appointed by the Minister under section 39A to hear and decide any matter in dispute between the Commissioner and any person in respect of the person's liability or assessment for value-added tax. 55 A.D. 2005] VALUE-ADDED TAX [No. 10 (2) A person dissatisfied with the Commissioner's decision on an objection under section 38 (6) may, within twenty days after being served with notice of the decision — (a) lodge a notice of appeal with the VAT Board of Review; (b) serve a copy of the notice of appeal on the Commissioner; and (c) pay to the Commissioner tax equal to two- thirds of the tax which is in dispute. (3) Upon application in writing by a person dissatisfied with a decision under section 38(5), the VAT Board of Review may, where satisfied that owing to absence from Guyana, sickness, or other reasonable cause, the person was prevented from lodging a notice of appeal within the time specified under subsection (2) and there has been no unreasonable delay by the person in lodging the notice, accept a notice of appeal lodged after the time specified under subsection (2). (4) If the Commissioner has not made an objection decision, and forty days have passed since the objection was lodged, an appeal may be made under subsection (2) at any time, as if the Commissioner had made a decision to disallow the objection. (5) In an appeal to the VAT Board of Review against an objection decision, the person is limited to the grounds set out in the person's objection, unless the VAT Board of Review grants the person leave to add new grounds. (6) In deciding an appeal, the VAT Board of Review may make an order – (a) affirming, reducing, increasing, or varying the assessment under appeal; or (b) remitting the assessment for reconsideration by the Commissioner in accordance with the directions of the VAT Board of Review. (7) A person dissatisfied with a decision of the VAT Board of Review under subsection (3) may challenge the decision only under Part X. 56 No. 10] LAWS OF GUYANA [A.D. 2005 Establishment 39A. (1) The VAT Board of Review shall consist of a of VAT Board of Review. Chairman and not less than three nor more than four other members appointed by the Minister. (2) The Chairman shall be an attorney-at-law of not less than seven years standing. (3) The other members shall be appointed from among persons appearing to the Minister to be qualified as having had experience of, and shown capacity in, social services, finance or accountancy or any other discipline. (4) Each member including the Chairman shall be appointed for two year. (5) The VAT Board of Review shall regulate its own procedure. (6) Decisions of the Board shall be by a majority, except that in case of a tie the Chairman shall have a casting vote. Burden of Proof 40. The burden of proving that an assessment is excessive or that a decision of the Commissioner is wrong is on the person objecting to the assessment or decision. Appeal to High 41. (1) A party who is dissatisfied with the decision of the Court. VAT Board of Review mentioned in section 39 may, within twenty days after being notified of the decision, appeal to a judge in Chambers; and the party so appealing shall serve a copy of the notice of appeal on the other party to the proceeding before the VAT Board of Review. (2) An appeal under subsection (1) may be made only on a question of law, including a question of mixed fact and law, and the notice of the appeal shall state the question of law that will be raised on the appeal. (3) No appeal shall lie under this section unless the full amount of tax which is in dispute is paid to the Commissioner. (4) For the removal of doubt it is hereby declared that where the Commissioner appeals the decision of the VAT Board of Review, subsection (3) shall not apply. 57 A.D. 2005] VALUE-ADDED TAX [No. 10 PART XI — Payment, Collection and Recovery Due date fir 42. (1) Tax payable under this Act is due and payable — payment of ;ax (a) by a taxable person for a tax period, by the due date for the return for the tax period; (b) by a person assessed under an assessment issued under this Act, on the date specified in the notice of assessment; (c) by an importer of goods or a recipient of an import of services, by the due date specified under section 22 in respect of the import; or (d) by any other person, by the date the taxable transaction occurs as determined under this Act. (2) Where an objection to, or a notice of appeal against, an assessment has been lodged, the tax payable under the assessment is due and payable under subsection (1), and may be recovered, notwithstanding that objection or appeal. (3) Upon application in writing by a person liable for tax, the Commissioner may, where good cause is shown, extend the time for payment of tax by the person beyond the date on which it is due and payable under this section, or make such other arrangements as appropriate to ensure the payment of the tax due, and any such extension does not alter the due date for purposes of section 27. (4) A person dissatisfied with a decision of the Commissioner under subsection (3) may challenge the decision only under Part X. Allocation of 43. Where, in addition to any amount of tax which is due and payments. payable by a person under this Act, an amount of interest or penalty is payable, a payment made by the person in respect of such tax, interest, or penalty which is less than the total amount due is deemed to be made — (a) first in respect of such penalty; (b) to the extent that such payment exceeds the amount of such penalty, then in respect of such interest; and (c) to the extent that such payment exceeds the sum of such penalty and interest, then in respect of such tax. 58 No. 101 LAWS OF GUYANA [A.D. 2003 Recovery or tax as 44. (1) An amount of tax due and payable under this Act shall debt due be recoverable by the Commissioner as a debt due to the State from the person liable therefor in the manner provided in this section. (2) Except where a person has lodged an appeal or where his case is engaging the attention of the Court, where a person fails to pay tax when it is due and payable, referred to as the "defaulter", the Commissioner may file, with the clerk or registrar of a court of competent jurisdiction, a statement certified by the Commissioner setting forth the amount of the tax due and payable by that person, and that statement shall have the effect of a civil judgment lawfully given in that court in favour of the Commissioner for a debt in the amount specified in the statement; and the court shall issue a writ of execution in respect thereof against the defaulter. (3) A writ of execution under subsection (2) shall not be issued until ten days after service by the court on the defaulter of a notice informing the defaulter that a writ of execution will be issued by the court in respect of tax owed by the defaulter, and unpaid, unless before the expiration of that period of ten days the defaulter produces proof of payment thereof satisfactory to the court. (4) The Commissioner may, without prejudice to re- instituting proceedings under subsection (2), by notice in writing addressed to the clerk or registrar of the court, withdraw the statement referred to in subsection (2) and such statement shall thereupon cease to have any effect. Cap. 82:01 (5) Except where the contrary intention appears, the provisions of the Customs Act on imported goods shall, with such exceptions, modifications, and adaptations as the Minister may by Order prescribe, apply in relation to any tax chargeable on imported goods. Recovery of 45. (1) Where the Commissioner has reasonable grounds to monies from persons leaving believe that a person may leave Guyana without Guyana. paying all tax due under this Act, the Commissioner may issue a certificate to the Chief Immigration Officer containing particulars of the tax due and request that the Chief Immigration Officer take the necessary steps to prevent the person from leaving Guyana until the person makes — 59 A.D. 2005] VALUE-ADDED TAX [No. 10 (a) payment in full; or (b) an arrangement satisfactory to the Commissioner for the payment of the tax: Provided that the Commissioner cannot proceed under this subsection unless he has obtained an order of the Court in respect of the tax due. (2) A copy of the certificate issued under subsection (1) shall be served by the Commissioner on the person named in the certificate if it is practicable to do so. (3) If a certificate is issued under subsection (1), proof of payment to the Commissioner of the tax specified in the certificate or the production of the certificate signed by the Commissioner stating that the tax has been paid or satisfactory arrangements for payment have been made shall be sufficient authority for any immigration officer to allow the person to leave Guyana. Security. 46. (1) Where it is reasonable to do so for the protection of the revenue or as provided for in this Act, the Commissioner, by notice in writing, may require a • person to give security for the payment of tax that is or may become payable by the person under this Act. • (2) Security required under subsection (1), including security required from a promoter of public entertainment, shall be for such amount, in such form, and furnished within such period as the Commissioner may specify in the notice. (3) Where security under subsection (1) is in cash and the Commissioner is satisfied that the security is no longer required, the Commissioner is required to apply the amount of the security as specified under section 35 (4). A person dissatisfied with a decision of the Commissioner under subsection (1) may challenge the decision only under Part X. A promoter of public entertainment is not permitted to allow the public entertainment to take place unless the promoter has paid the amount required under subsection (2) and has received the Commissioner's written approval. 60 No. 10] LAWS OF GUYANA [A.D. 2005 Preferential claim 47. From the date on which tax becomes due and payable under to assets. this Act, the Commissioner has a preferential claim upon the assets of the person liable to pay the tax until the tax is paid. Seizure of goods 48. (1) Where the Commissioner is satisfied on reasonable and vehicles. grounds that tax on a supply or import of goods has not been paid, the Commissioner may seize the goods. (2) The Commissioner may seize a vehicle used in the removal or carriage of goods liable to be seized under subsection (1), unless it is shown that such vehicle was so used without the consent or knowledge of the owner of that vehicle or other person lawfully in possession or charge thereof; and at the discretion of the Commissioner, the vehicle may be sold by public auction or may be dealt with in such other manner as the Commissioner may direct. (3) Goods seized under subsection (1) shall be stored in a place approved by the Commissioner for the storage of such goods. (4) Where goods are seized under subsection (1), the Commissioner is required to serve on the owner of the goods or the person who had custody or control of the goods immediately before seizure, a notice in writing as soon as practicable after the seizure— (a) identifying the goods; (b) stating that the goods have been seized under this section and the reason for seizure; and (c) setting out the terms of subsections (7), (8), and (9). (5) The Commissioner is not required to serve notice under subsection (4) if, after making reasonable enquiries, the Commissioner does not have sufficient information to identify the person on whom the notice should be served. (6) Where subsection (5) applies, the Commissioner may serve a notice under subsection (4) on a person claiming the goods, provided the person has given the Commissioner sufficient information to enable such a notice to be served. 61 A.D. 2005] VALUE-ADDED TAX [No. 10 (7) Subject to subsection (8), the Commissioner may authorise the delivery of goods seized under subsection (1) to the person on whom a notice under subsection (4) has been served, where that person pays or gives security, in accordance with section 46, for V. the payment of tax due and payable or that will become due and payable in respect of the supply or S import of the goods. (8) The Commissioner is permitted to detain the goods seized under subsection (1) — (a) in the case of perishable goods, only for such period as the Commissioner considers reasonable having 'regard to the condition of the goods; or (b) in any other case, until the later of — (i) ten days after the seizure of the goods; or (ii) ten days after the due date for payment of the tax on the supply or import of the goods. 4 (9) Where the detention period in subsection (8) has expired, the Commissioner may sell the goods in the manner specified under section 49 (4) and apply the proceeds of sale as set out in section 49 (5). S (10) Notwithstanding the provisions of this section, the Commissioner may proceed under section 44 with respect to any balance owed if the proceeds of sale are not sufficient to meet the costs thereof and the tax due. Distress 49. (1) The Commissioner may recover unpaid tax by distress proceedings. proceedings against the movable property of the person liable to pay the tax, referred to as the "person liable", by issuing an order in writing, specifying the person liable, the location of the property, and the tax liability to which the proceedings relate. (2) For the purposes of executing distress under subsection (1), the Commissioner may — (a) at any time enter any house or premises described in the order authorising the distress proceedings; and 62 No. 101 LAWS OF GUYANA [A.D. 2005 (b) require a police officer to be present while the distress is being executed. (3) Property upon which a distress is levied under this section, other than perishable goods, must be kept for ten days either at the premises where the distress was levied or at such other place as the Commissioner may SW consider appropriate, at the cost of the person liable. (4) Where the person liable does not pay the tax due, S together with the costs of the distress — (a) in the case of perishable goods, within such period as the Commissioner considers reasonable having regard to the condition of the goods; or (b) in any other case, within ten days after the distress is levied, the property distrained upon may be sold by public auction, or in such other manner as provided in regulations. (5) The proceeds of a disposal under subsection (4) shall be applied by the auctioneer or seller first towards the cost of taking, keeping, and selling the property distrained upon, then by the Commissioner towards the tax due and payable, and the remainder of the proceeds, if any, shall be restored to the person liable. (6) Nothing in this section precludes the Commissioner from proceeding under section 44 with respect to any balance owed if the proceeds of the distress are not sufficient to meet the costs thereof and the tax due. (7) All costs incurred by the Commissioner in respect of a distress may be recovered by the Commissioner from the person liable as tax due under this Act. Recovery of tax 50. (1) Where, in respect of a taxable supply by a taxable from recipient of supply. person, the taxable person has, in consequence of a fraudulent action or misrepresentation by the recipient of the supply, incorrectly treated the supply as an exempt or zero-rated supply, the Commissioner may raise an assessment upon the recipient for the amount of unpaid tax in respect of the supply together with any interest or penalty that has become payable under sections 27 and 44. 63 A.D. 2005] VALUE-ADDED TAX [No. 10 (2) The Commissioner is required to serve notice of an assessment under subsection (I) on the recipient specifying— (a) the tax payable; (b) the date the tax is due and payable; and (c) the time, place, and manner of objecting to the assessment. (3) An assessment raised under subsection (1) is treated as an assessment for all purposes of this Act. (4) Subsection (1) does not preclude the Commissioner from recovering the tax, interest, or penalty from the taxable person making the supply. (5) For purposes of subsection (4) — (a) any amount recovered from the recipient is to be credited against the liability of the taxable person; and (b) any amount recovered from the taxable person is to be credited against the liability of the recipient. (6) Where an amount of tax, interest, or penalty referred to in subsection (1) is paid by the taxable person, the taxable person may recover the amount paid from the recipient. (7) An amount assessed under this section is treated, for all purposes of this Act, as tax charged under this Act. Recovery of tax 51. (1) Where a person liable to pay tax under this Act, from third parties. referred to as the "person liable", fails to do so by the due date, the Commissioner may, by notice in writing, require any other person— (a) owing or who may owe money to the person liable; (b) holding or who may subsequently hold money for, or on account of, the person liable; or (c) having authority from some other person to pay money to the person liable, to pay the money to the Commissioner on the date set out in the notice, up to the amount of the tax due. No. 10] LAWS OF GUYANA [AD. 2005 (2) The date specified in the notice under subsection (1) shall not be a date before the money becomes due to the person liable to pay tax, or held on the person's behalf (3) A copy of a notice issued under subsection (1) shall be served on the person liable. (4) A person making a payment pursuant to a notice under subsection (1) is deemed to have acted under the authority of the person liable and of all other persons concerned and is indemnified in respect of the payment. (5) The provisions of this Act relating to the payment, collection and recovery of tax apply to any amount due under this section as if the amount were tax due under this Act. Duties of 52. (1) In this section, "receiver" means a person who, with receivers. respect to an asset in Guyana is — (a) a liquidator of a company; (b) a receiver appointed out of court or by a court; (c) a mortgagee in possession; (d) an executor of the estate of a deceased person; or (e) any other person conducting business on behalf of a person legally incapacitated. (2) A receiver is required to notify the Commissioner in writing within ten days after being appointed to the position or taking possession of an asset in Guyana, whichever first occurs. (3) The Commissioner may in writing notify a receiver of the amount which appears to the Commissioner to be sufficient to provide for any tax which is or will become payable by the person whose assets are in the possession of the receiver. (4) A receiver — (a) is required to set aside, out of the proceeds of sale of an asset, the amount notified by the Commissioner under subsection (3), or such lesser amount as is subsequently agreed on by the Commissioner; (b) is liable to the extent of the amount set aside for the tax of the person who owned the asset. (5) A receiver is personally liable to the extent of any amount required to be set aside under subsection (4) for the tax referred to in subsection (3) if, and to the extent that, the receiver fails to comply with the requirements of this section. 65 A.D. 2005] VALUE-ADDED TAX [No. 10 PART XII — Representatives and Special Cases of Taxable Persons Persons acting in a 53. (1) In this section, representative capacity. "representative", in relation to a taxable person, means — (a) in the case of a corporation, the treasurer or other designated officer or officers; (b) in the case of an unincorporated association or body, any member of the committee of management; (c) in the case of a company — (i) for a company other than a company in liquidation, the secretary of the company; or (ii) for a company in liquidation, the liquidator; (d) in the case of the State, any person responsible for accounting for the receipt and payment of money under the provisions of any law or for the receipt and payment of public funds or of funds voted by Parliament; (e) in the case of a local authority or board, any person who is responsible for accounting for the receipt and payment of money or funds on behalf of the local authority or board; (f) in the case of a partnership, any partner in the partnership; (g) in the case of a trust, any trustee; or (h) in the case of a non-resident person or a person referred to in paragraph (d) of the definition of "resident person" in section 2, any person controlling the non-resident person's affairs in Guyana, including any manager of a taxable activity of the non-resident person in Guyana. (2) Every representative of a taxable person is responsible for performing any duties, including the payment of tax, imposed by this Act on the taxable person. (3) Every representative who in that capacity pays any tax payable under this Act by a taxable person is entitled to recover the amount so paid from the taxable person 00 No. 10] LAWS OF GUYANA [A.D. 2005 or to retain the amount so paid out of any money of the taxable person that is in the representative's possession or under the representative's control. (4) Every representative is personally liable for the payment of any tax payable by the representative in his representative capacity if, while the amount remains unpaid, the representative — (a) alienates, charges, or disposes of any money received or accrued in respect of which the tax is payable; or (b) disposes of or parts with any fund or money belonging to the taxable person which is in the possession of the representative or which comes to the representative after the tax is payable if such tax could legally have been paid from or out of such fund or money. (5) Nothing in this section shall be construed as relieving a taxable person from performing any duties imposed by this Act on the taxable person which the representative of the person has failed to perform. Power to appoint 54. (1) The Commissioner may, if the Commissioner agent considers it necessary to do so, declare a person to be an agent of a taxable person and the person declared to be agent is deemed to be a representative of the taxable person for the purposes of section 53. (2) A person dissatisfied with a decision referred to in subsection (1) may challenge the decision only under Part X. Brancheii 55., (1) Where a taxable activity is conducted by a taxable person in branches or divisions, the taxable person is deemed to be a single person conducting the taxable activity for purposes of this Act. (2) Subject to subsection (3), a taxable person who conducts a taxable activity in branches or divisions is required to register in the name of the taxable person and not also in the names of its branches and divisions. (3) Upon application in writing, the Commissioner may authorise a taxable person to register one or more of its branches or divisions as separate taxable persons if the Commissioner is satisfied that the branch or division A.D. 2005] VALUE-ADDED TAX [No. 10 maintains an independent system of accounting and can be separately identified by the nature of its activities or its location. (4) The registration of a branch or division under subsection (3) is subject to such conditions and restrictions as the Minister may deem fit. Bodies of persons 56. (1) This Act applies to a paftnership as if the partnership (other than were a person separate from the partners of the incorporated companies). partnership, except that — (a) obligations that would be imposed on the partnership • are instead imposed on each partner, but may be discharged by any of the partners; (b) the partners are jointly and severally liable to pay any amount due under this Act that would be payable by the partnership; and (c) any offence under this Act that would otherwise be committed by the partnership is taken to have been committed by each of the partners. (2) This Act applies to a partnership, unincorporated association or body as if it were a person separate from the members of the association or body, but the obligations that would be imposed on the association or body are instead imposed on each member of the committee of management of the partnership, unincorporated association or body, but may be discharged by any of those members. (3) Where— (a) a partnership, or unincorporated association or body is dissolved, referred to as the "dissolved entity", in consequence of — (i) the retirement or withdrawal of one or more, but not all, of its partners or members; or (ii) the admission of a new partner or member; 6 No. 10] LAWS OF GUYANA [A.D. 2005 (b) a new partnership, or association or body comes into existence, referred to as the "new entity", consisting of the remaining members and one or more new members; and (c) the new entity continues to carry on the taxable activity of the dissolved entity as a going concern, • the dissolved entity and the new entity, for the purposes of this Act, are deemed to be one and the same, unless the Commissioner, having regard to the circumstances of the case, otherwise directs. Death or 57. (1) Where, after the death of a taxable person or the insolvency of taxable person; sequestration of a taxable person's estate, any taxable mortgagee in activity previously carried on by the taxable person is possession. carried on by or on behalf of the executor or trustee of the person's estate or anything is done in connection with the termination of the taxable activity, the estate of the taxable person, as represented by the executor or trustee, is deemed for the purposes of this Act to be the taxable person in respect of the taxable activity. (2) Where a mortgagee is in possession of any land or other property previously mortgaged by a mortgagor who is a taxable person, and the mortgagee carries on • a taxable activity in relation to the land or other property, the mortgagee is deemed, from the date the mortgagee took possession of that land or property until such time as the mortgagee ceases to be in possession of the land or property, to be the taxable person carrying on the taxable activity. Trustee. 58. A person who is a trustee in more than one capacity is treated for the purposes of this Act as a separate person in relation to each of those capacities. A.D. 2005] VALUE-ADDED TAX [No. 10 PART XIII — Records and Investigation Powers Interpretation 59. In this Part, "records" means accounting records, accounts, books, computer-stored information, or any other documents. Record-keeping 60. (1) Every taxable person or any other person liable for tax under this Act is required to maintain in Guyana — a (a) original tax invoices, tax credit notes, and tax debit notes received by the person; (b) a copy of all tax invoices, tax credit notes, and tax debit notes issued by the person; (c) customs documentation relating to imports and exports by the person; (d) accounting records relating to taxable activities carried on in Guyana; and (e) any other records as may be prescribed by regulations. (2) Records required to be maintained under subsection (1) are required to be retained for seven years after the end of the tax period to which they relate. Access to records, 61. (1) Notwithstanding anything in the other provisions of computers, goods, this section, a taxation officer having a writ of and vehicles. assistance issued from the High Court (which is hereby authorised and requested to grant such writs upon application by the Commissioner) may by day or night, enter into and search any premises or place where records are kept and seize and bring away any such records which in the taxation officer's opinion, may afford evidence that may be material in determining the liability of any person for tax payable under this Act, and may exercise all other powers that are exercisable under the provisions of this section by a taxation officer with a warrant. (2) Where the Commissioner has reasonable grounds to believe that an offence in connection with the tax is being, or is about to be committed on any premises, or that evidence of the commission of such an offence is to be found therein, he shall apply to the Magistrate for a warrant to allow a taxation officer — 70 No. 10] LAWS OF GUYANA [ A.D. 2005 (a) without any prior notice and at any time, to enter any premises or place where records are kept and on such premises search for any records; (b) in carrying out a search referred to in paragraph (a) and in any manner, to open or cause to be opened or removed and opened, any article in which the taxation officer • suspects that any records are kept; (c) to seize any records which in the taxation officer's opinion may afford evidence that may be material in determining the liability of any person for tax payable under this Act; (d) to retain any records seized under paragraph (c) for as long as they may be required for determining a person's liability under this Act or for any proceeding under this Act; (e) to examine and make extracts from, and copies of, any records, and require from any person an explanation of any entry therein; where a hard copy or computer disk of computer-stored information is not provided, to seize and retain the computer in which the information is stored for as long as is necessary ffr to copy the information required; and (g) to stop and board a vehicle which the taxation officer has reasonable cause to believe is importing goods into Guyana, search any such vehicle or any person found in the vehicle and question the person with respect to any matter dealt with in this Act. (4) A taxation officer who attempts to exercise a power under subsection (1) on behalf of the Commissioner is not entitled to enter or remain on any premises or at any place if, upon being requested by the occupier of the premises or place, the taxation officer does not produce an authorisation in writing from the Commissioner to the effect that the taxation officer is authorised to exercise that power under this section. A.D. 2005] VALUE-ADDED TAX [No. 10 (4) The owner, manager, or any other person lawfully on the premises or at the place entered or proposed to be entered under this section is required to provide all reasonable facilities and assistance for the effective exercise of power under this section. (5) A person whose records or computer has been removed and retained under subsection (1) may examine them and make copies or extracts from them during regular office hours under such supervision as the Commissioner may determine. (6) A taxation officer exercising a power under subsection (1) may request the assistance of a police officer as the taxation officer may consider reasonably necessary and any such police officer shall render such assistance as may be required by the taxation officer. Records not in 62. Where a record referred to in section 60 or 61 is not in official language. English, the Commissioner may, by notice in writing, require the person keeping the record to provide at that person's expense a translation into English by a translator approved by the Commissioner for this purpose. Notice to obtain 63. (1) The Commissioner may, by notice in writing, require a information or evidence. person, whether or not liable for tax under this Act — (a) to furnish such information concerning that person or any other person as may be required by the notice; or (b) to attend at the time and place designated in the notice for the purpose of being examined on oath before the Commissioner (or any other taxation officer specifically authorised for this purpose by the Commissioner) concerning the tax affairs of that person or any other person, and at that time to produce any record or computer in the control of the person and relevant to the examination. (2) Where the notice requires the production of any record or computer, it is sufficient if such record or computer is described in the notice with reasonable certainty. No. 10] LAWS OF GUY ANA [A.D. 2005 (3) A notice issued under this section is required to be served by or at the direction of the Commissioner by a signed copy delivered— (a) by registered post; (b) by hand to the person to whom it is directed; or (c) left at the person's last and usual place of abode, and the certificate of service signed by the person serving the notice is evidence of the facts stated therein. (4) This section has effect notwithstanding any rule of law relating to privilege or the public interest in relation to the furnishing of information or the production of records or documents. A.D. 2005] VALUE-ADDED TAX [No. 10 PART XIV - Offences and Penalties Division I: Criminal Offences * Power to bring 64. (1) Subject to the powers of the Director of Public criminal charges. Prosecutions under the Constitution, no criminal proceedings in respect of any offence under this Act shall be commenced except where the Commissioner determines to bring charges and prosecute. (2) Criminal proceedings under this Act shall be commenced in the name of the Commissioner in a court of summary conviction. rime limits for 65. Proceedings under this Division may be commenced — nocectlings to be .aken. (a) where the offence alleged involves the doing of any act in violation of this Act, within three years after the discovery of the act; (b) where the offence alleged involves the failure to do any act as required under this Act, within three years after the Commissioner has become aware of such failure; or (c) where the offence alleged has involved the non- disclosure or incorrect disclosure by any person of information relating to that person's liability to tax for a tax period, within one year after his correct liability to tax has become final for that tax period. Failure to apply 66. A person who knowingly or recklessly fails to apply for VAT Ihr VAT registration. registration as required by section 11 (1), (7), or (8) commits an offence and is liable on conviction to a fine not exceeding twenty-five thousand dollars and imprisonment for a term not exceeding two years. Improper VAT 67. (1) A person who knowingly or recklessly fails to furnish documentation any import declaration as required by section 22 commits an offence and is liable on conviction to a fine not exceeding ten thousand dollars and to imprisonment for a term not exceeding three years. No. 10] LAWS OF GUYANA [A.D. 2005 (2) Where a person convicted of an offence under subsection (1) fails to furnish the import declaration within a further period specified by the Commissioner by notice in writing, that person commits an offence and is liable on conviction to a fine of one thousand dollars for each day during which the failure continues and to imprisonment for three months. (3) A registered person who knowingly or recklessly fails to provide a tax invoice as required by section 28 commits an offence and is liable on conviction to a fine not exceeding fifteen thousand dollars and to imprisonment for a term not exceeding six months. (4) A person who knowingly or recklessly provides a tax invoice otherwise than as provided for in section 28 commits an offence and is liable on conviction to a fine not exceeding fifteen thousand dollars and to imprisonment for a term not exceeding two years. (5) A registered person who fails to provide a tax credit note or tax debit note as required by section 29 commits an offence and is liable on conviction to a fine not exceeding fifteen thousand dollars and to imprisonment for a term not exceeding six months. (6) A person who knowingly or recklessly provides a tax credit note or tax debit note otherwise than as provided for in section 29 commits an offence and is liable on conviction to a fine not exceeding fifteen thousand dollars and to imprisonment for a term not exceeding two years. (7) A person who knowingly or recklessly uses a false VAT registration number, including the VAT registration number of another person, on a return, notice, or other document prescribed or used for the purposes of this Act commits an offence and is liable on conviction to a fine not exceeding fifty thousand dollars and to imprisonment for a term not exceeding two years. (8) Subsection (7) does not apply to a person who uses the VAT registration number of another person with the permission of that other person on a return, notice, or other document relating to the tax affairs of that other person. .\I).20051 1 I4 LIT-A DDED TAX [No. 10 DISC claim Inr 68. A person who knowingly or recklessly makes a false claim for \ \ I reiond refund under sxtion 35 commits an offence and is liable on conviction to a fine not exceeding fifteen thousand dollars and to imprisonment for a term not exceeding six months. I athire to mini 69. (I) A person who fails to notify the Commissioner of a l'itrimii..itiner or Ce•Sal 011 of change in circumstances as required by section 12 (10) la‘allle Jill commits an offence and is liable on conviction- (a) where the failure was made knowingly or recklessly, to a fine not exceeding fifty thousand dollars and to imprisonment for a tem) not exceeding two years; or (b) in any other case, to a fine not exceeding twenty-five thousand dollars. (2) A person who fails to notify the Commissioner as required by section 13 (I) commits an offence and is liable on conviction - (a) where the failure was made knowingly or recklessly, to a fine not exceeding fifty thousand dollars and to imprisonment for a term not exceeding two years; or (b) in any other case, to a fine not exceeding twenty-five thousand dollars. Failure to comply 70. (1) A person who fails to comply with a third-party with third-party payment notice. payment notice under section 51 commits an offence and is liable on conviction to a fine not exceeding twenty-five thousand dollars and to imprisonment for a term not exceeding one year. (2) Where a person is convicted of an offence under subsection (1), the Court may, in addition to imposing a fine and imprisonment, order the convicted person to pay to the Commissioner an amount not exceeding the amount which the person failed to pay as required under section 51. (3) A person who fails to comply with a notice issued under section 63 commits an offence and is liable on conviction to a fine not exceeding fifteen thousand dollars and to imprisonment for a term not exceeding six months. No. 10] LAWS OF GUYANA [AD. 2005 Failure to comply 71. (1) A person who fails to comply with the requirements of %viih duties as section 52(4) commits an offence and is liable on receiver. conviction to a fine not exceeding twenty-five thousand dollars and to imprisonment for a term not exceeding one year. (2) Where a person is convicted of an offence under subsection (1) for failing to set aside an amount as required under section 52 (4), the Court may, in addition to imposing a fine and imprisonment, order the convicted person to pay to the Commissioner an amount not exceeding the amount which the person failed to set aside as required under section 52(4). Failure to file 72. (1) A person who knowingly or recklessly fails to lodge a VAT return. return as required by section 31 commits an offence and is liable on conviction to a fine not exceeding fifteen thousand dollars. (2) Where a person convicted of an offence under subsection (1) fails to lodge the return within a further period specified by the Commissioner by notice in writing, that person commits an offence and is liable on conviction to a fine of two thousand dollars for each day during which the failure continues and to imprisonment for three months. Failure to maintain 73. A person who knowingly or recklessly fails to maintain proper proper records. records in accordance with section 60 commits an offence and is liable on conviction to a fine not exceeding twenty-five thousand dollars. Disclosure of 74. A person who knowingly or recklessly contravenes the confidential secrecy requirements of section 8 commits an offence and is information. liable on conviction to a fine not exceeding twenty-five thousand dollars. False or 75. (1) A person who — misleading statements. (a) makes a statement to a taxation officer that is false or misleading in a material particular; or (b) omits from a statement made to a taxation officer any matter or thing without which the statement is misleading in a material particular, commits an offence and is liable on conviction — A.D. 2005] VALUE-ADDED TAX [No. 10 (c) where the statement or omission was made knowingly or recklessly, to a fine not exceeding fifteen thousand dollars and to imprisonment for a term not exceeding two years. i (2) A reference in this section to a statement made to a taxation officer is a reference to a statement made orally, in writing, or in any other form to that taxation a officer acting in the performance of the taxation officer's duties under this Act, and includes a statement made — (a) in an application, certificate, declaration, notification, return, objection, or other document made, prepared, given, filed, lodged, or furnished under this Act; (b) in any information required to be furnished under this Act; (c) in a document furnished to a taxation officer otherwise than pursuant to this Act; (d) in an answer to a question asked of a person by a taxation officer; or (e) to another person with the knowledge or reasonable expectation that the statement • would be conveyed to a taxation officer. (3) It is a defence to a prosecution under subsection (1) that the person did not know and could not reasonably be expected to have known that the statement to which the prosecution relates was false or misleading. Obstructing 76. (1) A person who obstructs a taxation officer in the taxation officers. performance of the taxation officer's duties under this Act commits an offence and is liable on conviction to a fine not exceeding fifteen thousand dollars and to imprisonment for a term not exceeding two years. (2) A person who fails to provide a taxation officer with reasonable facilities and assistance as required by subsection 61 (4) commits an offence and is liable on conviction to a fine not exceeding fifteen thousand dollars. No. 10] LAWS OF GUYANA [A.D. 2005 Offences by 77. A taxation officer in carrying out the provisions of this Act taxafion officers who (a) directly or indirectly asks for, or takes in connection with any of the taxation officer's duties a payment or reward, whether pecuniary or otherwise, or any promise or security for any such payment or reward, not being a payment or reward which the taxation officer was lawfully entitled to receive; or (h) enters into or acquiesces in an agreement to do, abstain from doing, permit, conceal, or connive at an act or thing whereby the tax revenue is or may he defrauded or which is contrary to the provisions of this Act or to the proper execution of the taxation officer's duty, commits an offence and is liable on conviction to a tine not exceeding one hundred thousand dollars and to imprisonment for a term not exceeding live gars, and the Court may, in addition to imposing a line, order the convicted person to pay to the Commissioner an amount of tax that has not been paid as a result of the taxation officer's wrongdoing and which cannot be recovered from the person liable for the tax. I) Where an otIemce under this Act has been committed by a compan>, every person who at the time of the commission of the offence (a) ryas a representative officer, director, general manago. secretary. or other similar officer of the companx or (b) cc as doing or purporting to act in such capac . is deemed to ha' e committed the offence. Subsection t I ) does not apply where (al the offence ""as committed without such person's consent or kncm ledge; and (b) the person exercised all such diligence to pre ent the commission of the offence as ought to have been exercised hang regard to the nature of the person's functions and all the 79 A.D. 2005] VALUE-ADDED TAX [No. 10 (3) A person aiding and abetting the commission of an offence under this Act shall also be guilty of that offence and liable to the same penalties as the person committing the offence. Compounding of 79. (1) Where a person has committed an offence under this offences. Act other than an offence under sections 74 or 77, the Commissioner may, with the approval of the Minister, at any time prior to the commencement of the court proceedings relating thereto, compound such offence and order the person to pay such sum of money as specified by the Commissioner, not exceeding the maximum amount of the fine prescribed for the offence. (2) The Commissioner may compound an offence under this section only if the person concerned admits in writing that the person has committed the offence, or requests in writing that the Commissioner so deal with the offence. (3) Where the Commissioner compounds an offence under this section, the order referred to in subsection (1) — (a) shall be in writing and shall have attached the written admission or request; (b) shall specify — (i) the offence committed; (ii) the sum of money to be paid; and (iii) the due date for the payment; (c) shall be served on the person who committed the offence; and (d) shall be final and not subject to any appeal. (4) When the Commissioner compounds an offence under this section, the person concerned shall not be liable for prosecution in respect of such offence or for a civil penalty under section 80, 82, 83, or 84. (5) The amount ordered to be paid under subsection (1) is recoverable as if it were tax due and payable. 80 No. 10] LAWS OF GUYANA [A.D. 2005 Division II: Civil Penalties Application of 79A. In so far as circumstances permit the provisions this Division. of this Division should first be utilised before resort is had to the provisions of Division 1. Civil penalty for 80. (1) A person who fails to apply for registration as required failure-to apply for VAT registration. by subsection 11 (1), (7), or (8) is liable for a penalty equal to double the amount of output tax payable from the time the person is required to apply for registration until the person files an application for registration with the Commissioner. (2) No penalty is payable under subsection (1) where the person has been convicted of an offence under section 66 in respect of the same act or omission, or where an offence has been compounded under section 79. (3) If a penalty under subsection (1) has been paid and the Commissioner institutes a prosecution proceeding under section 66 in respect of the same act or omission, the Commissioner shall refund the amount of the penalty paid; and that penalty is not payable unless the prosecution is withdrawn. Civil penalty for 81. (1) A person who fails to furnish any import declaration failure to declare or pay VAT on within the time required under this Act is liable for a import. penalty which is the greater of — (a) one thousand dollars per day for each day or part thereof that the import declaration remains outstanding; or (b) an amount equal to ten percent of the tax payable for the period of such import declaration, for each month or part thereof that the import declaration remains outstanding. The penalty imposed under subsection (1) shall not exceed the amount of tax payable in respect of the import declaration. A person who fails to pay tax payable on an import in accordance with section 22 on or before the due date is liable for a penalty in an amount equal to the greater of — A.D. 2005] VALLI -ADDED TAX [No. 10 (a) one thousand dollars per day for each day or part thereof that the tax remains outstanding; or (b) an amount equal to ten percent of the tax outstanding, for each month or part thereof that the tax remains outstanding. (4) The penalty imposed under subsection (3) shall not exceed the amount of unpaid tax. (5) A penalty paid by a person under subsection (3) shall be refunded to the person to the extent that the tax to which it relates is subsequently determined not to have been due and payable. (6) A penalty imposed under subsection (3) is in addition to any interest payable under section 27. Civil penalty for 82. (1) A person who fails to lodge a retum within the time failure to tile VAT return. required under this Act is liable for a penalty, which is the greater of — (a) one thousand dollars per tray for each day or part thereof that the return remains outstanding; or (b) an amount equal to ten percent of the tax payable for the period of such return, for each month or part thereof that the return remains outstanding. (2) The penalty imposed under subsection (1) shall not exceed the amount of tax payable in respect of the return. (3) No penalty is payable under subsection (1) where the person has been convicted of an offence under section 72 in respect of the same act or omission, or an offence has been compounded under section 79. Civil penalty Mr 83. (1) A person who fails to maintain proper records in a tax fail= to maintain prow records. period in accordance with the requirements of section 60 is liable for a penalty of one hundred dollars per day for each day or portion thereof that the failure continues. 8Z No. 10] LAWS OF GUYANA [A.D. 2005 (2) No penalty is payable under subsection (1) where the person has been convicted of an offence under section 73 in respect of the same act or omission, or an offence has been compounded under section 79. (3) If a penalty under subsection (1) has been paid and the Commissioner institutes a prosecution proceeding under section 73 in respect of the same act or omission, the Commissioner is required to refund the amount of civil penalty paid; and that civil penalty is not payable unless the prosecution is withdrawn. Civil penalty for 84. (1) Where a person knowingly or recklessly — making false or misleading (a) makes a statement to a taxation officer that is statements. false or misleading in a material particular; or (b) omits from a statement made to a taxation officer any matter or thing without which the statement is misleading in a material particular, and the tax properly payable by the person exceeds the tax that would be payable if the person were assessed on the basis that the statement is true, the person is liable for a penalty equal to an amount determined by the Commissioner. (2) Section 75 (2) applies in determining whether a person has made a statement to a taxation officer. (3) No penalty is payable under this section where the person has been convicted of an offence under section 75 in respect of the same act or omission, or where an offence has been compounded under section 79. (4) If a penalty under this section has been paid and the Commissioner institutes a prosecution proceeding under section 75 in respect of the same act or omission, the Commissioner shall refund the amount of the penalty paid; and that penalty is not payable unless the prosecution is withdrawn. Recovery or 85. (1) Where good cause is shown, in writing, by the person remission of liable for a civil penalty, the Commissioner may remit penalties. in whole or part any civil penalty payable. (2) Except as otherwise provided in this Act, the imposition of a civil penalty is in addition to any fine and imprisonment imposed as a result of a conviction for an offence under Division I of Part XIV. 83 A.D. 2005] VALUE-ADDED TAX [No. 10 (3) Penalties may be assessed and collected as if the amount of penalty is tax due under this Act. (4) A person dissatisfied with a decision of the Commissioner under subsection (1) may challenge the decision only under Part X. Ma* Temporary closure 86. (1) Where a person repeatedly violates — of business premises. (a) section 67 in relation to tax invoices, (b) section 67 in relation to tax debit notes or tax credit notes; (c) section 72 by failing to file returns; (d) section 68 by falsely claiming tax refunds; (e) section 76 by obstructing taxation officers; or section 22 or 42 by failing to pay tax when due; after obtaining an order of a court having jurisdiction in respect of the person, the Commissioner may forcibly close one or more business premises of the person for a period of between three and thirty days. (2) For purposes of subsection (1), the Commissioner may use reasonable force and police assistance necessary to close all or any premises of the person, barring access with locks, fencing, boarding, or other appropriate methods. (3) For purposes of this section, a repeated violation means a violation that is committed within one year of receipt by the person of a written warning — (a) that a violation of such kind has been committed more than once within the year preceding the year of the warning, and (b) that repetition may result in closure under this section. No. 10] LAWS OF GUYANA [A.D. 2005 PART XV — Miscellaneous 87. The Commissioner may require a person to include the Tax • Vat registration number. Identification Number (TIN) issued to the person as the VAT registration number issued by the Commissioner to that person, or may require the use of a different number as the VAT registration number, in any return, notice, or other document prescribed or used for the purposes of this Act. Soo Forms and notices; 88. (1) Forms, notices, returns, and other documents authentication of prescribed or published by the Commissioner may be documents. in such form as the Commissioner determines for the efficient administration of this Act. (2) The Commissioner is required to make the documents referred to in subsection (1) available to the public. (3) A notice or other document issued, served, or given by the Commissioner under this Act is sufficiently authenticated if the name or title of the Commissioner, or authorised taxation officer, is printed, stamped, or written on the document. Services of 89. (1) Unless otherwise provided in this Act, a notice r notices. required by this Act to be in writing shall be served on the recipient of the notice. (2) A notice mentioned in subsection (1) is considered sufficiently served — (a) on a person being an individual other than in a representative capacity, if it is — (i) personally served on that person; (ii) left at the person's usual or last known place of abode, office, or place of business in Guyana; or (iii) sent by registered post to such place of abode, office, or place of business, or to the person's usual or last known address in Guyana; or (b) on any other person, if it is — (i) personally served on the representative of the person; 85 A.D. 2005] VALUE-ADDED TAX [No. 10 (ii) left at the registered office of the person or the person's address for service of notices under this Act; or (iii) where there is no such office or address, left at or sent by registered post to an office or place of business of the person in Guyana. Tax-inclusive 90. (1) A price charged by a taxable person in respect of a pricing. taxable supply is deemed to include, for the purposes of this Act, the tax charged on the supply under section 9(1)(a), whether or not the taxable person has included tax in such price. (2) Subject to subsection (3), a price advertised or quoted by a taxable person in respect of a taxable supply is required to include tax and to state in the advertisement or quotation that tax is included. (3) A taxable person may advertise or quote a price in respect of a taxable supply as exclusive of tax provided — (a) the advertisement or quotation also states the amount of tax charged on the supply and the price inclusive of tax; and (b) the price inclusive of tax and the price exclusive of tax are advertised or quoted with equal prominence or impact. (4) Subject to subsection (5), price tickets on goods supplied by a taxable person need not state that the price includes tax if this is stated by way of a notice prominently displayed at the premises in which the taxable person carries on a taxable activity, including the places in such premises where payments are effected. (5) The Commissioner may in the case of a taxable person or class of taxable person approve any other method of displaying prices of goods or services by such persons. Schemes for 91. (1) In this section — obtaining tax benefits. "scheme" includes an agreement, arrangement, promise, or undertaking whether express or implied and whether or not legally enforceable, and a plan, proposal, course of action, or course of conduct; and 86 No. 10] LAWS OF GUYANA [A.D. 2005 "tax benefit" includes — (a) a reduction in the liability of a person to pay value-added tax; (b) an increase in the entitlement of a person to a credit or refund; (c) any postponement of liability for the payment of value‘added tax; (d) any acceleration of a deduction for input tax; or (e) any other avoidance or benefit from the delay in payment of tax or acceleration of a deduction for input tax. (2) Notwithstanding anything in this Act, if the Commissioner is satisfied that a scheme has been entered into or carried out where — (a) a person has obtained a tax benefit in connection with the scheme in a manner that constitutes a misuse of the provisions of this Act; and (b) having regard to the substance of the scheme, it would be concluded that the person, or one of the persons, who entered into or carried out the scheme did so for the sole or dominant purpose of enabling the person to obtain the tax benefit, the Commissioner may determine the liability of the person who has obtained the tax benefit as if the scheme had not been entered into or carried out, or in such manner as in the circumstances the Commissioner considers appropriate for the prevention or reduction of the tax benefit. Currency 92. (1) For the purposes of this Act, all amounts of money are conversion. to be expressed in dollars. (2) Where an amount is expressed in a currency other than dollars — (a) in the case of imports, the amount shall be converted at the exchange rate as determined in accordance with section 22 (2)(c) of the Cap. 82:01 Customs Act; or 87 A.D. 2005] VALUE-ADDED TAX [No. 10 (b) in all other cases, the amount shall be converted at the exchange rate applying between the currency and the dollar at the time the amount is taken into account under this Act. Registration of 93. (1) For purposes of this section, "registering authority" certain goods means a person appointed under a law to issue a prohibited in certain licence, permit, certificate, concession, or other circumstances . authorisation. (2) Where a form of registration is required under a law in respect of goods consisting of an aircraft, boat, fishing vessel, ship, yacht, motor cycle, motor vehicle, tractor, caravan, or trailer, hereinafter referred to as "registrable goods", no registering authority responsible for such registration under such law may effect such registration upon a change of ownership or importation into Guyana of registrable goods unless the person applying for registration produces to such registering authority — (a) in the case of registrable goods that — (i) form the subject of any supply, or (ii) are imported into Guyana, a document issued by the Commissioner showing that tax which is payable under this Act has been paid in respect of such supply or importation into Guyana, or a receipt or certificate showing that no tax is payable under this Act in respect of such supply or importation, as the case may be, of the registrable goods in consequence of which the registration is required; (b) a declaration, in such form as the Commissioner may prescribe, issued by a registered person who, in carrying on a taxable activity in the ordinary course of which registrable goods are dealt in, supplied such goods in consequence of which the registration is required, certifying that the tax payable under this Act has been, or will be, paid by such person; or 88 No. 10] LAWS OF GUYANA [A.D. 2005 (c) a certificate issued by the Commissioner, or other documentation acceptable to the Commissioner, to the effect that the supply or import of the registrable goods was an exempt supply or exempt import, as the case may be. Auctioneer and 94. (1) Where a taxable supply has been made in agent. circumstances specified under section 5 (1) (a), the agent may issue a tax invoice in accordance with this Act in relation to the supply as if the agent had made the supply, in which case the principal may not also issue a tax invoice in relation to the supply. (2) Where a taxable supply has been made in the circumstances specified under section 5 (1) (b), at the request of the agent, a tax invoice in relation to the supply may be issued to the agent, in which case the supplier may not issue a tax invoice to the principal in relation to the supply. (3) Where tax is payable by an auctioneer in respect of the supply of goods specified under section 5 (3), the auctioneer is required to charge the purchaser the amount of tax payable in respect of the sale by adding the tax to the amount of a successful bid or, in the case of sales out-of-hand, to the purchase price, and is required to recover that tax from the purchaser. Regulations 95. (1) The Minister may make regulations — (a) for matters that under this Act are to be prescribed by regulations, as specified in sections 4 (13), 9 (1), 11 (5), 30 (2), 35 (3), 35 (5), 37 (1), 49 (4), 60 (1) (e), 100 (12), Schedule II paragraph 2 (a), Schedule II paragraph 2 (b), Schedule IV paragraph 1, or (b) whether or not to be prescribed by regulations under this Act, for any matters necessary or convenient to be prescribed for the better carrying out or giving effect to this Act, including revisions to the Schedules hereto, and without prejudice to the generality of the foregoing, such regulations may contain provisions of 89 A.D. 2005] VALUE-ADDED TAX [No. 10 a saving or transitional nature consequent on the coming into force of this Act. (2) Regulations made under this Act may prescribe 4 specific offences for breach of the regulations, and the penalties therefor, but such penalties may not exceed a fine of one hundred thousand dollars and imprisonment for a term of five years. r (3) Subject to subsection (4), regulations made under this Act are subject to an affirmative resolution of the National Assembly. (4) Regulations pertaining to the description of the nature and form of filing and documentation requirements, including but not limited to those specified in 35(3), 35(5), and 60(1)(e), may be issued by the Minister by way of notice in the Gazette. Variation of 96. (1) Where— consideration on a change in rate. (a) an agreement for a supply of goods or services by a registered person has been entered into; and (b) subsequent to entering into the agreement, tax is imposed on the supply or the rate of tax applicable to the supply is increased, the supplier may, notwithstanding anything to the contrary in any agreement or law, recover from the recipient, in addition to the amounts payable by the recipient, an amount equal to the amount of tax imposed or the amount by which tax was increased, as the case may be. (2) Where— (a) an agreement for a supply of goods or services by a registered person has been entered into; and (b) subsequent to entering into the agreement, tax on the supply is withdrawn or the rate of tax applicable to the supply is decreased, the supplier, notwithstanding anything to the contrary in any agreement or law, is required to reduce the amount payable by the recipient by an amount equal to 90 No. 10] LAWS OF GUYANA [A.D. 2005 the amount of tax withdrawn or the amount by which tax was decreased, as the case may be. (3) Subject to subsections (4) and (5), where subsection (1) or (2) applies in respect of a supply of goods or services subject to any fee, charge, or other amount, whether a fixed, maximum, or minimum fee, charge, or other amount, prescribed by, or determined pursuant to, any Act, regulation, or measure having force of law, that fee, charge, or other amount may be increased or shall be decreased, as the case may be, by the amount of tax or additional tax chargeable, or the amount of tax no longer chargeable. (4) Subsection (3) does not apply where the fee, charge, or other amount has been altered in an Act, regulation, or measure having force of law to take account of an imposition, increase, decrease, or withdrawal of tax. (5) Nothing in subsection (3) shall be construed so as to permit a further increase or require a further decrease, as the case may be, in a fee, charge, or other amount where the fee, charge, or other amount is calculated as a percentage or fraction of another amount which represents the consideration in money for a taxable O supply. Application of 97. (1) Where goods, other than immovable property, are increased or reduced rate. provided by a supplier before the date on which a change in the rate of tax levied under section 9(1)(a) becomes effective in respect of the supply of the goods or the date on which the tax is imposed or withdrawn in respect of the supply, and the supply is treated under section 14 as having been made on or after the said date, then in the case of - (a) a change in rate on the said date, the rate of tax applicable to the supply is the rate applicable immediately before the said date; (b) the imposition of tax on the said date, the supply is treated as not being subject to tax; or (c) the withdrawal of the tax on the said date, the supply is deemed to be subject to tax as if the tax had not been withdrawn. 91 A.D. 2005] VALUE-ADDED TAX [No. 10 (2) Where— (a) services are performed; or (b) goods, other than immovable property, are provided in respect of a successive supply contemplated in section 14 (8) or (9), V during a. period beginning and ending before the date on which a change in the rate of tax levied under • section 9 (1) (a) becomes effective in respect of the supply of the goods or the date on which the tax is imposed or withdrawn in respect of the supply, and the supply is deemed under section 14 to have been made on or after the said date, then in the case of — (c) a change in rate on the said date, the rate of tax applicable to the supply is the rate applicable immediately before the said date; (d) the imposition of tax on the said date, the supply is treated as not being subject to tax; or (e) the withdrawal of the tax on the said date, the supply is deemed to be subject to tax as if the tax had not been withdrawn. S (3) Where— (a) services are performed; or (b) goods, other than immovable property, are provided in respect of a successive supply contemplated in section 14 (8) or (9), during a period beginning before and ending on or after the date on which a change in the rate of tax levied under section 9 (1) (a) becomes effective in respect of the supply of the goods or the date on which the tax is imposed or withdrawn in respect of the supply, and the supply is deemed under section 14 to have been made on or after the said date, the value of the supply shall, on the basis of a fair and reasonable apportionment, be deemed to consist of a part, referred to as the "first part", relating to the performance of services or provision of goods before the said date and a part, referred to as the "second part", relating to the performance of services or provision of goods on or after the said date. YL No. 10] LAWS OF GUYANA [A.D. 2005 (4) For purposes of subsection (3), in the case of — (a) a change in the rate on the said date, the tax payable in respect of the first part shall be determined at the rate applicable before the said date and the tax payable in respect of the second part shall be determined at the rate applicable on the said date; (b) the imposition of tax on the said date, the first part shall not be subject to tax; or (c) the withdrawal of the tax, the first part shall be subject to tax as if the tax had not been withdrawn. (5) For the purposes of subsections (1), (2), and (3), goods are deemed to be provided by the supplier of the goods when the goods are delivered to the recipient and goods supplied under a rental agreement are deemed to be provided to the recipient when the recipient takes possession or occupation of the goods. (6) Subject to section 100, where, before the date on which an increase in the rate of tax becomes effective, a written agreement is concluded for — (a) the sale of immovable property consisting of — (i) a dwelling together with land on which it is erected, or of any real right conferring a right of occupation of a dwelling; or (ii) land, or of any real right conferring a right of occupation of land for the sole or principal purpose of the erection by or for the purchaser of a dwelling or dwellings on the land, as confirmed by the purchaser in writing; or (b) the construction of a new dwelling by a taxable person carrying on a construction business, and — (c) the price of the sale or construction in question was determined and stated in the agreement which was in operation before the said date and signed by the parties thereto before that date; and 93 A.D. 2005] VALLE-ADDED TAX [No. 10 (d) the supply of such immovable property or construction services under the said agreement is deemed under section 14 to have been made on or after the said date, the rate of tax levied under section 9 on that supply shall be the rate at which tax would have been levied had the supply taken place on the date on which such agreement was concluded. Orders to amend 98. (1) The Minister may by order — Schedules or change amounts. (a) amend the Schedules; or (b) increase or decrease any monetary amount set out in this Act. (2) An order under subsection (1) shall be subject to affirmative resolution of the National Assembly. Repeal of laws and 99. The Acts specified in Schedule V and any regulations made interpretation. thereunder are hereby repealed, except to the extent and for the purposes set forth in the transitional rules of section 100 or regulations made under this Act. Transitional. 100. (1) In this section — "qualifying goods" means any stock held for sale in the ordinary course of business; "repealed legislation" means the legislation referred to in section 99; and "consumption tax" means the tax imposed under the Cap. 80:02 Consumption Tax Act. (2) The repealed legislation, including the laws governing the levy, payment, assessment, reporting, and recovery of those taxes, continue to apply to a supply or import taking place prior to the date on which this Act comes into operation pursuant to section 1. (3) An oath of secrecy taken under the repealed legislation is treated as having been taken under this Act. (4) Where a contract was concluded between two or more parties before the entry into operation of this Act, and no provision relating to tax was made in the contract, 94 No. 10] LAWS OF GUYANA [A.D. 2005 the supplier may recover from the recipient tax due on any taxable supplies made under the contract after the date on which this Act comes into operation. (5) Where a contract concluded after the date on which this Act comes into operation does not include a provision relating to tax, the contract price is deemed to include tax and the supplier under the contract is required to account for the tax due. (6) Subject to subsection (7), if, in connection with a supply of goods or services— (a) title to goods passes, delivery of goods is made, or services are rendered after the date on which this Act comes into operation, and (b) payment is received or an invoice is issued within three months before that date, for purposes of determining the tax period in which the supply occurs or an input tax credit is allowable, the payment is treated as having been made or the invoice is treated as having been issued on the date on which this Act comes into operation. (7) If services subject to service tax were rendered before the date on which this Act comes into effect and payment is made within three months after this Act comes into effect, VAT is not imposed on the supply of the services. (8) If — (a) successive supplies described in section 14(8) or (9) were provided, or (b) services subject to service tax were rendered, during a period that began before this Act comes into effect and ended after this Act comes into effect, VAT is imposed on the consideration for the services rendered after this Act comes into effect, except that to the extent the consideration for the services rendered before this Act comes into effect is paid more than three months after this Act comes into effect, the consideration shall be treated as consideration for the supply of services rendered on the day after the end of that three-month period. 95 A.D. 2005] VALUE-ADDED TAX [No. 10 (9) Notwithstanding subsection (8), if construction, reconstruction, manufacture or extension of a building or civil engineering work is performed under a written agreement executed before this Act comes into effect and the property is made available to the recipient after that date, VAT is imposed only on the value of the work performed after that date if the value of the work on the day before this Act comes into effect is determined in a manner approved by the Commissioner and is submitted to the Commissioner by the end of the supplier's first tax period after VAT becomes effective. (10) If immovable property is provided under a rental agreement for a period that commences before and ends after the commencement of this Act, the consideration for the rental shall not include the amount attributable to the portion of the period that ends before the effective date. (11) For purposes of section 24(1)(d), an amount paid as a prize or winnings does not include an amount attributable to obligations or contingent obligations that exist immediately before this Act comes into effect. (12) The Minister may make regulations for other transitional measures relating to the end of repealed taxes listed in Schedule V, the start of value-added tax, or the transition from repealed taxes to value-added tax. (13) All forms and documents used in relation to the repealed legislation may continue to be used under this Act, and all references in those forms and documents to provisions of and expressions appropriate to the repealed legislation are taken to refer to the corresponding provisions and expressions of this Act. 96 No. 10] LAWS OF GUYANA [A.D. 2005

Schedule I Zero-rated Supplies for Purposes of Section 17 In this Schedule — "ancillary transport services" means stevedoring services, lashing and securing services, cargo inspection services, preparation of customs documentation, container handling services, and storage of transported goods or goods to be transported; "export country" means any country other than Guyana and includes a place which is not situated in Guyana, but does not include a specific country or territory that the President by proclamation in the Gazette designates as one that is not an export country; "exported from Guyana", in relation to any movable goods supplied by a registered person under a sale or a credit agreement, means — (a) consigned or delivered by the registered person to the recipient at an address in an export country as evidenced by documentary proof acceptable to the Commissioner; or (b) delivered by the registered person to the owner or charterer of a foreign-going aircraft when such aircraft is going to a destination in an export country and such goods are for use or consumption in such aircraft, as the case may be; "foreign-going aircraft" means an aircraft engaged in the transportation for reward of passengers or goods wholly or mainly on flights between airports in Guyana and airports in export countries or between airports in export countries; "intellectual property rights" means a patent, design, trade mark, copyright, know-how, confidential information, trade secret, or similar rights; "international transport services" means — 97 A.D. 2005] VALUE-ADDED TAX [No. 10 (a) the services, other than ancillary transport services, of transporting passengers or goods by road, rail, water, or air— (i) from a place outside Guyana to another place outside Guyana where the transport or part of the transport is across the territory of Guyana; (ii) from a place outside Guyana to a place in Guyana; or (iii) from a place in Guyana to a place outside Guyana; (b) the services of transporting passengers from a place in Guyana to another place in Guyana to the extent that transport is by aircraft and constitutes "international carriage" as defined in Article 3 of the Convention on International Civil Aviation; (c) the services, including any ancillary transport services, of transporting goods from a place in Guyana to another place in Guyana to the extent that those services are supplied by the same supplier as part of the supply of services to which paragraph (a) applies, or (d) the services of insuring or the arranging of the insurance or the arranging of the transport of passengers or goods to which paragraphs (a) to (c) applies. 2. Subject to paragraph 3, the following supplies are specified as zero-rated for the purposes of section 17 — (a) a supply of goods where the supplier has entered the Cap. 82:01 goods for export, pursuant to the Customs Act, and the goods have been exported from Guyana by the supplier; (b) a supply of goods where the Commissioner is satisfied that the goods have been exported from Guyana by the supplier; (c) a supply of goods where the goods are not situated in Guyana at the time of supply and are not to be entered into Guyana for home consumption pursuant to the Cap. 82:01 Customs Act by the supplier of the goods; 98 No. 10] LAWS OF GUYANA [AD. 2005 (d) a supply of goods under a rental agreement, charter party, or agreement for chartering, where the goods are used exclusively in an export country; (e) a supply of goods in the course of repairing, renovating, modifying, or treating goods to which sub-paragraph (h)(ii) or (iv) applies and the goods supplied — (i) are wrought into, affixed to, attached to, or otherwise form part of those other goods; or (ii) being consumable goods, become unusable or worthless as a direct result of being used in that repair, renovation, modification, or treatment process; (0 a supply of international transport services; (g) a supply of services directly in connection with land, or any improvement thereto, situated outside Guyana; (h) a supply of services directly in respect of — () movable property situated outside Guyana at the time the services are rendered; (ii) goods temporarily imported into Guyana under Cap. 82:01 the exemptions in the Customs Act; (iii) a supply of goods referred to in paragraphs (a) or (b) of the definition of "exported from Guyana"; or (iv) the repair, maintenance, cleaning, or reconditioning of a foreign-going aircraft; (i) a supply of services directly to a non-resident person who is not a taxable person, otherwise than through an agent or other person — (i) comprising the handling, pilotage, salvage, . or towage of a foreign-going aircraft while situated in Guyana; 99 A.D. 2005] VALUE-ADDED TAX [No. 10 (ii) provided in connection with the operation or management of a foreign-going aircraft; or (iii) comprising the storage, repair, maintenance, cleaning, management, or arranging the provision of a container temporarily imported Cap. 82.01 under the Customs Act, or the arranging of such services; a supply of services to a non-resident person who is not a taxable person comprising the arranging for the person of — (i) a supply of goods referred to in paragraphs (a) and (b) of the definition of "exported from Guyana"; (ii) a supply of services to which sub-paragraph (h) (iv) or paragraph (i) applies; or (iii) the transport of goods, including ancillary transport services, within Guyana; (k) a supply of services physically rendered elsewhere than in Guyana; a supply of services to a non-resident person who is outside Guyana at the time the services are supplied, other than a supply of services — (i) directly in connection with immovable property situated in Guyana; (ii) directly in connection with movable property situated in Guyana at the time the services are supplied unless the movable property is exported from Guyana subsequent to the supply of services; (ii) comprising the refraining from undertaking any taxable activity in Guyana; or (iv) comprising the tolerating of another person undertaking any taxable activity in Guyana; (m) a supply of services comprising — IUU No. 10] LAWS OF GUYANA [A.D. 2005 (i) the filing, prosecution, granting, maintenance, transfer, assignment, licensing, or enforcement of any intellectual property rights for use outside Guyana; (ii) incidental services necessary for the supply of services referred to in sub-paragraph (i); or (iii) the acceptance by a person of an obligation to refrain from pursuing or exercising in whole or part any intellectual property rights for use outside Guyana; (n) a supply by a registered person to another registered person of a taxable activity, or part of a taxable activity, as a going concern, provided a notice in writing signed by the transferor and transferee is furnished to the Commissioner within fifteen days after the supply takes place and such notice includes the details of the supply; (o) a supply of water services by Guyana Water Incorporated; or (p) a supply of electricity services by Guyana Power & Light. 3. Paragraph 2 shall not apply in respect of any supply of goods that have been or will be re-imported into Guyana by the supplier. 101 A.D. 2005] VALUE-ADDED TAX [No. 10

Schedule II Exempt Supplies for Purposes of Section 18 1. In this Schedule— "education services" means education and hostel facilities for students and scholars provided by — (a) a pre-primary, primary, or secondary school; (b) a technical college, community college, or university; Or (c) an educational institution established for the promotion of adult education, vocational training, technical education, or the education or training of physically or mentally handicapped persons. "foreign-going aircraft" means an aircraft engaged in the transportation for reward of passengers or goods wholly or mainly on flights between a location or locations in Guyana and an airport or airports in export countries, or between airports in export countries; "residential dwelling" means a building, premises, structure, or any other place, or any part thereof, used predominantly as a place of residence or abode of a natural person or which is intended for use as a place of residence or abode of a natural person, together with any appurtenances belonging thereto and enjoyed therewith, but does not include a hotel, guest house, inn, or other establishment that in the usual course of business provides lodging primarily to guests whose typical stay is less than thirty days. 2. The following supplies are specified as exempt supplies for the purposes of section 18 — (a) a supply of financial services to the extent provided in regulations issued by the Minister; (b) a supply of prescription drugs and medical services to the extent provided in regulations issued by the Minister; (c) a supply of education services; 102 No. 10] LAWS OF GUYANA [A.D. 2005 (d) a supply of— (i) accommodation in a residential dwelling; or (ii) leasehold land by way of lease (not being a grant or sale of the lease of that land) to the extent that the subject land is used or is to be used for the principal purpose of accommodation in a residential dwelling erected or to be erected on that land; or (e) a supply of any goods or services by the State, a local authority, or an charity where the consideration for the goods or services is nominal in amount or not intended to recover the cost of such goods or services. 4 105 A.D. 2005] VALUE-ADDED TAX [No. 10

Schedule IV Registration Threshold, Interest Rates and Other Amounts for Purposes of Sections 11, 27, 28, 35, 36, and 37 1. For purposes of section 11 (1) (a) and (b), the registration threshold amount is the amount determined in regulations made under this Act subject to an affirmative resolution of the National Assembly. 2. For purposes of section 27 (1), the interest rate is two percent per month or part thereof. 3. For purposes of section 28 (2), the amount is ten thousand dollars. 4. For purposes of section 35 (7), the amount is twenty thousand dollars. 5. For purposes of section 36 (1), the interest rate is one percent simple interest per month or part thereof. 6. For purposes of section 37 (1) (d), the amount of tax is twenty thousand dollars. 106 No. 10] LAWS OF GUYANA [A.D. 2005

Schedule V Repeal of Laws Section 99 Consumption Tax Act Cap. 80:02 Travel Voucher Tax Act Cap. 80:09 Hotel Accommodation Tax Act Act No. 14 of 1993 Provisions relating to Service Tax in Fiscal Enactments (Amendment) No. 3 Act 2003 Provisions relating to Premium Tax in Income Tax Act, Cap. 81:01 Provisions relating to Entertainment in Tax Act, Cap. Tax (Duty) 80:01 Provisions relating to Telephone Tax in Tax Act, Cap. 80:01 Provisions relating to Purchase Tax in Motor Vehicles and Road Traffic Act, Cap. 51:02 Passed by the National Assembly on the le July, 2005. Clerk of the National Assembly. (BILL No. 3/2005)