Value Added Tax Registration is categorised in Section 11 of the Value Added Tax Act Chapter 81:05 as being mandatory or voluntary. Prior to 2016 the threshold for mandatory and voluntary registration was ten million dollars ($10,000,000). However, effective January 2016 by virtue of amendment to Section 3 of the Value Added Tax Regulations the current threshold is fifteen million dollars ($15,000,000).

The criteria governing each type of registration are listed below.

MANDATORY REGISTRATION

• Where the taxable activity equals or exceeds the threshold of fifteen million dollars ($15,000,000) at the end of twelve (12) months.
• Where the taxable activity exceeds the threshold in less than 12 months, the person carrying on the taxable activity must register for VAT.
• Where the taxable activity is expected to exceed the threshold in any period during the next twelve months, the person carrying on the taxable activity must register.

VOLUNTARY REGISTRATION

If your taxable turnover is below the fifteen million dollars ($15,000,000.00) threshold, you may apply for Voluntary Registration. However, applicants for voluntary registration must satisfy the following criteria:

(i)  The applicant’s business and business location must be easily identifiable.

(ii) The applicant must demonstrate to the Commissioner’s satisfaction the ability to maintain records in accordance with the requirements of Section 60 of the VAT Act 81:05.

(iii) The applicant must demonstrate to the Commissioner the intention to make taxable supplies. Where the applicant’s business operations have not yet begun at the time of application, or if the applicant has carried on the business for less than a calendar year; evidence of bank loans and revenue projections, contracts or other details of arrangements to make taxable supplies, feasibility studies, purchase of capital equipment, and similar information may be accepted by the Commissioner as evidence that the applicant intends to make taxable supplies.

Taxable Supplies mean where a person is engaging in the supply of goods or service that VAT is added at a rate of tax of zero percent (0%) or fourteen percent (14%) is applicable. For example, if a taxpayer is providing a service and it is not a taxable activity, then the service is exempt from taxes; therefore, the taxpayer is not required to register for VAT. All exempt supplies are outlined in Schedule 11 of the VAT Act Chapter 81:05.

Any taxpayer registering for VAT can access the GRA’s website on www.gra.gov.gy and complete the application form or visit the GRA’s Headquarters, Receptionist Desk and request an application form. The Taxpayers Registration Form must be utilised to make the application for mandatory and voluntary registration. The applicant or an agent is required to complete the application on behalf of the applicant and lodge the required documents at the Central Registration Unit.

Listed below are the requirements for registration:

REQUIREMENTS FOR AN INDIVIDUAL TO RGISTER FOR VAT

• Taxpayer Registration Form – Individual
• Copy of Business Registration
• Copy of Identification Card/Passport
• Taxpayer Identification Number (TIN)

REQUIREMENTS FOR A COMPANY TO REGISTER FOR VAT

• Taxpayer Registration Form – Company
• Copy of Articles of Incorporation
• Copy of Identification Card/Passport/Taxpayer Identification Number (TIN) for Director(s) and Secretary

REQUIREMENTS FOR A PARTNERSHIP

• Taxpayer Registration Form – Company
• Copy of Business Registration
• Copy of ID Card/TIN for each Partner

It should be noted that a taxpayer can also be mandatorily registered for VAT by the Commissioner-General.

Pursuant to Section 66 of the VAT Act 81:05, a person who knowingly or recklessly fails to apply for VAT Registration commits an offence and is liable on conviction to a fine not exceeding twenty-five thousand dollars ($25,000) and imprisonment for a term not exceeding two (2) years.

In addition, failure to register for VAT can result in the taxpayer being liable to a penalty that doubles the amount of output tax payable from the time you are required to apply for registration or until you file an application for registration with the Guyana Revenue Authority.

Once the taxpayer meets the necessary requirements, they will be informed by the Central Registration Unit and a VAT Certificate will be issued. However, if they do not meet the requirements, they will be informed likewise of the cancellation of registration.

Persons who still have queries with respect to VAT Registration are encouraged to write to the Tax Advisory Services Division, 200-201 Camp Street for clarification.

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 | gravat@gra.gov.gy
Website: www.gra.gov.gy