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Removal of VAT from cement

Removal of VAT from cement

May 6, 2022

The Guyana Revenue Authority (GRA) wishes to notify Importers, Brokers, suppliers and the General Public that a supply of Building Cement, as per tariff headings nos. 2523.29.10.00, 2523.29.90.00, and 2523.90.00.00, is now zero rated for Value-Added Tax (VAT) purposes.

This measure took effect from April 29, 2022 and is in accordance with the amendment to include paragraph 8 (g) to Schedule 1 of the Value Added Tax Act, Chapter 81:05.

Hence, VAT will no longer be applicable to this category of cement when it is imported or sold to final consumers. Additionally, the ASYCUDA World (AW) System has been updated to reflect the removal of VAT on cement.

In view of the above, VAT Registered suppliers should not charge VAT on the sale of building cement. Further, where VAT was already paid by suppliers, the existing refund mechanism currently used by suppliers to reclaim VAT should be used as outlined in Section 35 of the VAT Act, Chapter 81:05.

Therefore,

  1. VAT registrants are reminded that they are required to carry forward their input tax credits for six consecutive months, and if unable to recoup all input VAT, then they can apply to the GRA for a refund of the excess input tax creditable for the tax period.
  2. Where at least 50% of the taxable supplies of a VAT registrant is taxed at the zero rate (0%) for a tax period, the taxable person can file a claim for the excess at the end of the period.
  3. Where a person who is not a VAT registrant pays VAT on a supply after the effective date, the VAT is refundable to the extent that it will be repaid by the taxable person (VAT Registrant) whether in cash or as a credit against an amount owing by the recipient of the supply.
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