There are a number of supplies which are zero rated by virtue of Schedule 1 of the Value Added Tax (VAT) Act Chapter 81:05. The Guyana Revenue Authority (GRA) continues to simplify issues pertaining to VAT in order to educate and assist taxpayers. This policy therefore sets the standard procedure regarding what is considered Going Concern and VAT.
Schedule 1 Paragraph 5 (a) of the VAT Act Chapter 81:05, zero rates “a supply by a registered person to another registered person of a taxable activity, or part of a taxable activity, as a going concern.”
Therefore, where a registered person sells a business or part of a business which is in operation with all the goods and services of that business wholly to another registered person who intends to continue operation of the said business, then the sale is classified as a going concern and is considered zero-rated provided: –
1. A notice in writing signed by the transferor and transferee is furnished to the Commissioner-General within fifteen (15) days after the sale took place.
2. The notice must include details of the supply.
Section 4 (3) of the VAT Act Chapter 81:05, states that “For the purpose of subsection (2) a taxable activity or 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.
Tax Advisory Services Section
Communications & Tax Advisory Services Division
Guyana Revenue Authority
200 -201 Camp Street
Tel: 227-6060 | 227-8222 Ext: 8000