The following forms the guiding principle when advertising, displaying or quoting prices for goods and services that are subject to VAT at the standard rate of fourteen percent (14%).
Persons registered for Value-Added Tax (VAT), must charge VAT on all goods and services at the standard rate of fourteen percent (14%) except where the good or service is exempt or zero-rated.
If the VAT registered person fails to charge the tax as part of the price for the good or service, then the cost of the item will be considered to include VAT and the business person will be required to account for the tax as if it was charged in the price of the item. This simply means that the VAT fraction will be used to determine the Value-Added Tax payable on the item. (Please refer to Policy No. 25 -VAT Tax Fraction on GRA’s website for more information on VAT Tax fraction).
Section 90(1) of the Value-Added Tax Act, Chapter 81:05 states that “A price charged by a taxable person in respect of a 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.”
Further, Section 90(2) of the Value-Added Tax Act, Chapter 81:05 outlines the procedures whenever a registered person advertises or quotes a price for a good or service that is subject to VAT, that is, the price is required to include the tax at a rate of fourteen percent (14%) and the advertisement or quotation must state that VAT is included. The customer or consumer then makes a single payment.
However, the registered person may advertise or quote a price that excludes VAT, but, apart from the price of the good or service, the advertisement or quotation must also state the amount of tax to be charged on the supply and the final price when the tax is added in keeping with Section 90(3) of the VAT Act, Chapter 81:05.
Moreover, the price inclusive of tax and the price exclusive of tax must be advertised or quoted with equal prominence or impact.
According to Section 90(4) of the Value-Added Tax Act, Chapter 81:05 which states that “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.”
Subsection (5) of Section 90 of the Value-Added Tax Act, Chapter 81:05 states that, “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.”
This means that only the Commissioner-General of the Guyana Revenue Authority can approve any other methods of price display. Consumers should not suffer a ‘tax shock’ when they get to the cash register or payment area. They should be made aware beforehand what is the final price they will pay for the selected item.
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 | eservices@gra.gov.gy
Website: www.gra.gov.gy
