The Guyana Revenue Authority continues to provide assistance to the general public on various issues regarding the application of Value-Added Tax (VAT). This policy addresses VAT and the Fishing Sector.
ZERO-RATED
Schedule I, Paragraph 2 (c) of the VAT Act Chapter 81:05 states that, “a supply of goods where the Commissioner is satisfied that the goods have been exported from Guyana by the supplier;”. Consequently, the export of sea foods is also zero-rated for VAT purposes.
Schedule 1, Paragraph 4 (c) of the VAT Act Chapter 81:05 states that ‘the importation of equipment and spares to be used in the production of goods in the fishing industry, to the satisfaction of the Commissioner.
Schedule 1, Paragraph 11 (i)(k)(l)(q) of the VAT Act Chapter 81:05 states that the following items are zero-rated:
“The following supplies are zero-rated” –
(i) fish hooks, sheet lead, fishing floats, cotton and styrofoam for use in the fishing industry.
(k) ice for fishing purposes
(l) knotted twine, cordage or rope made up of fishing nets and other made up nets, of textile materials.
(q) …cold storage and packaging.
Therefore, fish hooks, rope, twine, cold storage and all of the above items used in the fishing industry are not subject to VAT at the standard rate of fourteen percent (14%). Rather, upon importation or if purchased locally will be subject to the rate of zero-percent.
Nothwithstanding, to benefit from the zero rating of the importation of equipment and spares to be used in the production of goods in the fishing industry; those persons in the fishing sector must apply to the Commissioner-General through the ASYCUDA Software and attached the relevant supporting documents.
A Tax Exemption letter also known as CG letter, will be prepared for the transaction to be processed free of the relevant duties and taxes through the same system.
Additionally, Schedule I, Paragraph 13 (y) of the VAT Act Chapter 81:05, zero-rates “fresh, chilled or frozen chicken, pork, beef, shrimp, prawns, mutton, duck; fresh, chilled or frozen fish, salted fish, but not including canned products,” such as, tuna, sardines, mackerel, salmon, corn beef and other similar products.
Therefore, consumers who purchase the fresh, chilled or frozen meat will not pay VAT at the standard rate of 14%. However, if canned meat is purchased, VAT will be applicable at the rate of fourteen percent (14%).
EXEMPT
Moreover, Schedule II, Paragraph 7 (b) of the VAT Act Chapter 81:05, exempts a supply of outboard engines not exceeding 75HP.”
Also, outboard engines not exceeding 75HP used by fishing boats will be exempted from VAT.
A tax exemption application process is required when importing the aforementioned outboard engines, therefore the importation or purchase of this item will require a CG letter.
In this instance, an application must be submitted to the Tax Exemption Processing & Verification Division for the CG letter to be issued.
However, Section 4 (c) of the VAT Act Chapter 81:05, states that “the importation of equipment and spares to be used in the production of goods in the fishing industry, to the satisfaction of the Commissioner.”
Therefore, you will be required to seek the advice and assistance of a Customhouse Broker. A Customshouse Broker is a person who is licenced under the Customs Regulations to transact business with the Customs, Excise and Trade Operations.
Kindly see ‘Registered Brokers’
Contact Us:
Tax Advisory Services Section
Communications & Tax Advisory Services Division
Guyana Revenue Authority
200 -201 Camp Street
Georgetown
Guyana
Tel: 227-6060 | 227-8222 Ext: 8000
Email: taxadvisory@gra.gov.gy
Website: www.gra.gov.gy
