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Zero – Rated Supplies

Zero – Rated Supplies

July 26, 2019

“SCHEDULE I
 Zero-rated Supplies for Purposes of Section 17

The Guyana Revenue Authority hereby advises taxpayers that based on the Amendments to the Value-Added Tax Act, Cap 81:05, the following is the revised list of zero-rated supplies as contained in Schedule 1 to the Act. This list shall be deemed to have come into operation on the 1st day of February 2017, except:

  1. paragraph 4 heading and 4 (a)(b)(c) deletion of the words “importation of” which came into operation on the 1st day of January 2018;
  2. the words ‘and services’ in paragraph 2 (f) and paragraph 5, sub-paragraph (c) came into operation on the 1st day of January, 2019.
  3. Paragraph 5 sub-paragraph (d) came into operation on the 1st day of October, 2020
  4. Paragraph 6(a) – deletion of the word ‘only’ came into operation on the 1st day of October, 2020
  5. Paragraph 6 sub-paragraph (b) (vii) and (viii) came into operation on the 1st day of October, 2020
  6. Paragraph 6A came into operation on the 1st day of October, 2020
  7. Paragraphs 8, 9, 10, 11, and 12 came into operation on the 1st day of October, 2020.
  8. The Value-Added Tax Act (Amendment of Schedules I and II) Order 2021 which came into operation on the 1st of March, 2021.
1. In this schedule–
“export country” means any country other than Guyana and includes a place which is not situated in Guyana, but does not include a specific country or territory that the President by proclamation in the Gazette designates as one that is not an export country;
“exported from Guyana”, in relation to any movable goods supplied by a registered person under a sale or a credit agreement, means–
(a) consigned or delivered by the registered person to the recipient at an address in an export country as evidenced by documentary proof acceptable to the Commissioner; or
(b) delivered by the registered person to the owner or charterer of a foreign-going aircraft when such aircraft is going to a destination in an export country and such goods are for use or consumption in such aircraft, as the case may be;
“intellectual property rights” means a patent, design, trade mark, copyright, know-how, confidential information, trade secret, or similar rights; and
“regionally” means in Guyana or any CARICOM country.

EXPORT OF GOODS

2. The following goods are zero-rated for the purposes of section 17–
(a) a supply of goods in the course of repairing, renovating, modifying, or treating goods including goods temporarily imported into Guyana under the exemptions under the Customs Act and the goods –
(i) are wrought into, affixed to, attached to, or otherwise form part of those other goods; or
(ii) being consumable goods, become unsalable or worthless as a direct result of being in that repair, renovation, modification or treatment process;
(b) a supply of goods under a rental agreement, charter party or agreement for chartering where the goods are used exclusively in an export country;
(c) a supply of goods where the Commissioner is satisfied that the goods have been exported from Guyana by the supplier;
(d) a supply of goods where the goods are not situated in Guyana at the time of supply and are not to be entered into Guyana for home consumption pursuant to the Customs Act by the supplier of the goods; and
(e) a supply of goods where the supplier has entered the goods for export, pursuant to the Customs Act, and the goods have been exported from Guyana by the supplier.

EXPORT OF SERVICE

3. The following supplies are zero-rated for the purposes of section 17-
(a) a supply of services directly in connection with land or any improvement to land situated outside Guyana;
(b) a supply of services directly in respect of –
(i) movable property situated outside Guyana at the time the services are rendered;
(ii) goods temporarily imported into Guyana under the exemptions in the Customs Act;
(iii) a supply of goods referred to in the definition of “exported from Guyana”; or
(iv) the repair, maintenance, cleaning or reconditioning of a foreign-going aircraft or vessel;
(c) a supply of services directly to a non-resident person who is not a taxable person, otherwise than through an agent or other person –
(i) comprising the handling, pilotage, salvage, or towage of a foreign-going aircraft while situated in Guyana;
(ii) provided in connection with the operation or management of a foreign-going aircraft; or
(iii) comprising the storage, repair, maintenance, cleaning, management, or arranging the provision of a container temporarily imported under the Customs Act, or the arranging of services;

(d) a supply of services physically rendered elsewhere than in Guyana;

(e) a supply of services to a non-resident person who is not a taxable person comprising the arranging for the person of –
(i) a supply of goods referred to in the definition of “exported from Guyana”;
(ii) a supply of services for repair, maintenance, cleaning or re-conditioning of a foreign-going aircraft or vessel; or
(iii) the transport of goods including ancillary transport services within Guyana;
(f) a supply of services to a non-resident person who is outside Guyana at the time the services are supplied, other than a supply of services –
(i) comprising the refraining from undertaking any taxable activity in Guyana;
(ii) comprising the tolerating of another person undertaking any taxable activity in Guyana;
(iii) directly in connection with immovable property situated in Guyana; or
(iv) directly in connection with movable property situated in Guyana at the time the services are supplied unless the movable property is exported from Guyana subsequent to the supply of services;
(g) a supply of services comprising –
(i) the filing, prosecution, granting, maintenance, transfer, assignment, licensing or enforcement of any intellectual property rights for the use outside Guyana;
(ii) incidental services necessary for the supply of services referred to in clause (i); or
(iii) the acceptance by a person of an obligation to refrain from pursuing or exercising in whole or part any intellectual property rights for use outside Guyana.

 

RAW MATERIALS AND PACKAGING MATERIALS

4. The following supplies are zero-rated for the purposes of section 17 –
(a) a supply of raw materials and packaging materials to be used in the production of goods to the satisfaction of the Commissioner;

(b) a supply of all bio-degradable containers used in the packaging of food and beverages; and

(c) the importation of equipment and spares to be used in the production of goods in the fishing industry, to the satisfaction of the Commissioner.

INVESTMENT/LOCAL MANUFACTURING

5. Zero-rated for the purposes of section 17 are –

(a) a supply by a registered person to another registered person of a taxable activity, or part of a taxable activity, as a going concern:
Provided that a notice in writing signed by the transferor and transferee is furnished to the Commissioner within fifteen days after the supply takes place and such notice includes the details of the supply;

(b) goods and services under an investment agreement entered into on behalf of the Government with the taxable persons with a per unit price greater than two hundred thousand dollars Guyana dollars (G$200,000); and

(c) goods and services under any agreement, other than an investment agreement, entered into on behalf of the Government.

MEDICAL SUPPLIES
6. The following medical supplies are zero-rated for the purposes of section 17 –
(a) a supply of medicines and drugs of a kind available by prescription;

(b) any of the following medicines for human use –

(i) analgesics in the form of liquids, tablets, capsules, or other solid dosage forms for oral or rectal use;
(ii) cough and cold preparations in the form of liquids, tablets, capsules or other solid dosage forms for oral and nasal use;
(iii) antacids and anti-flatulants in the form of liquids, tablets, capsules and other solid dosage forms for oral use;
(iv) laxatives in the form of liquids, tablets, capsules or other solid dosage forms for oral or rectal use;
(v) anthelmintics in the form of liquids, tablets or capsules for oral use;
(vi) oral rehydration preparations in the form of salts or solution of W.H.O./Pharmacopoeia standards;
(vii) a supply of over the counter drugs;
(viii) a supply of vitamins, minerals and tonics for medical or health supplement use excluding items such as energy drinks and food supplements classified under Chapter 21 of the Common External Tariff;
(c) Diabetic –

(i) glucometers (glucose blood test machines), needles and glucose blood strips made for use with such machines;
(ii) insulin syringes with needles and devices for the administration of insulin;

(d) spectacles prescribed by an optometrist in the treatment of the human eye and visual system;
(e) crutches;
(f) wheelchairs; and
(g) a supply of medical, dental, hospital, optical or paramedical services, to the extent provided in the regulations other than veterinary services.

UTILITIES
7. The following services are zero-rated for the purposes of section 17 –
(a) a supply of water services and sewerage services provided by Guyana Water Incorporated and Kwakwani Utilities Incorporated; and
(b) a supply of electricity by a person authorised under the Electricity Sector Reform Act.

CONSTRUCTION
8. Zero-rated for the purposes of section 17 are –

(a) a supply locally produced sand including loam and similar materials, asphalt, concrete blocks, ply wood, logs and lumber of a type and quality used in construction and housing;

(b) a supply of regionally produced –
(i) stone for the purpose of construction and housing; and
(ii) boulders for the purpose of construction of sea defence;

(c) a supply of locally produced pre- stressed concrete piles;

(d) a supply locally fabricated and manufactured steel beams for building and construction;

(e) a supply locally manufactured roofing and PVC products; and

(f) a supply of spars, palings, staves, shingles and wattles.

9. Zero-rated for the purposes of section 17 are supplies of capital equipment and machinery used in the mining, forestry, agriculture, construction and manufacturing industries.

10. Zero-rated for the purposes of section 17 is a supply of all-terrain vehicles for use in the mining, forestry, agriculture and manufacturing industries and by Toshaos from Amerindian communities.

AGRICULTURE

11. The following supplies are zero-rated for the purposes of section 17 –

(a) hatching eggs;

(b) live chicks, cattle, pigs, ducks, goat, sheep and other animals used for consumption excluding exotic and wild meat;
(c) a supply of packaging material for use in the poultry industry;

(d) fertilisers;

(e) agro-chemicals;

(f) pesticides;

(g) paddy;

(h) vegetable seeds;

(i) fish hooks, sheet lead, fishing floats, cotton and styrofoam for use in the fishing industry;

(j) harrows, cultivators, scarifiers, ploughs, weeders and hoes;

(k) ice for fishing purposes;

(l) knotted netting twine, cordage or rope made up of fishing nets and other made up nets, of textile materials;

(m) machinery used for preparing animal feeding stuffs;

(n) machinery, equipment or components used in the generation of renewable energy in the agriculture sector using agricultural by-products;

(o) poultry feed, cattle feed, pig feed, other animal feed, and ingredients and animal feed as determined by the Commissioner-General, but not including pet feed;

(p) equipment and chemicals for water treatment and production plants;

(q) goods and services in agro-processing facilities, cold storage and packaging; and

(r) animal medication including animal vitamins.

TRAVEL AND TRANSPORTATION
12. The following supplies of travel and transportation services are specified as zero-rated for the purposes of section 17 –

(a) a supply of river and land crossing services to the hinterland regions; and

(b) a supply of services of transporting passengers or goods by air, river or land from one place in Guyana to the hinterland regions.

FOOD ITEMS

13. Zero-rated for the purposes of section 17 are supplies of –

(a) bread including sliced bread, plait bread and tennis roll made with white or whole wheat flour, but not including all other bread such as French bread, Swiss bread, and sweet breads;
(b) raw brown rice, raw white rice and parboiled rice;
(c) sugar cane and raw brown sugar;
(d) cooking oil;
(e) vinegar;
(f) cow’s milk and milk powder, evaporated milk, liquid cow’s milk including Ultra High Temperature (UHT) milk and fully and partially skimmed milk, powdered milk (skim and cream) but not including other milk such as flavoured milk;
(g) baby formula;
(h) baby cereal;
(i) fresh fruits, but not including apples, grapes, dates, prunes, peaches, plums, strawberries and other assorted berries;
(j) fresh vegetables, including onions, garlic, potatoes but not including olives, radishes, broccoli and cauliflower and similar assorted vegetables;
(k) dried split peas, pigeon peas (not including canned pigeon peas), dried kidney beans (not including canned kidney beans), dried chick peas (not including canned chick peas), dried black-eyed peas (not including canned black-eyed peas);
(l) unprocessed wheat;
(m) wheaten flour;
(n) barley flour;
(o) plantain flour;
(p) roti-mix;
(q) self-rising flour;
(r) cassava bread;
(s) casareep;
(t) cheddar cheese but not including grated, powdered or single sliced cheese;
(u) farine;
(v) margarine;
(w) baking powder;
(x) cooking salt;
(y) fresh, chilled or frozen chicken, pork, beef, shrimp, prawns, mutton, duck; fresh, chilled or frozen fish, salted fish, but not including canned products.
(z) uncooked bird’s eggs;
(aa) lard;
(bb) shortening;
(cc) locally produced jams, jellies and peanut butter;
(dd) oats;
(ee) sago;
(ff) locally produced peanuts and cashew nuts;
(gg) unflavoured cracker biscuits; and
(hh) wheat up.

HOUSEHOLD NECESSITIES

14. Zero-rated for the purposes of section 17 are supplies of –

(a) diapers such as pampers for adults and babies;
(b) kerosene stoves;
(c) sanitary napkins or panty liners;
(d) toilet tissues in rolls;
(e) paper towels;
(f) bleach;
(g) disinfectants including rubs and wipes impregnated with alcohol or other disinfectants;
(h) alcohol solutions un-denatured containing 50% or more ethyl alcohol, including rubbing alcohol;
(i) soap powder;
(j) laundry, toilet, medicated and hand soap;
(k) hand sanitizers;
(l) dishwashing detergents;
(m) toothpaste and toothbrushes;
(n) mouthwash;
(o) matches;
(p) mosquito nets;
(q) locally produced bed sheets, pillow cases, shelf covers, blankets;
(r) locally produced towels, rags, handkerchiefs and school garments;
(s) locally produced rugs, mats, table covers and ribbons; and
(t) locally produced garments.

STATE/STATE AGENCY/LOCAL AUTHORITY

15. Zero-rated for the purposes of section 17 are –

(a) a supply of goods and services financed from proceeds of a donor agency;

(b) goods and services when imported and consultancy services, to be supplied to the State, an agency of the State, or a local authority and directly incorporate into a project funded by grants or loans supplied by a foreign government (or agency of that government) or a public international organisation; and

(c) goods and services when imported and works and consultancy services purchased by a budget agency listed in the schedule to the Fiscal Management and Accountability Act 2003 and by state agencies that perform regulatory functions by statute.

EDUCATIONAL
16. Zero-rated for the purposes of section 17 –

(a) a supply of educational services provided by private educational institutions;

(b) a supply of the following educational materials –

(i) printed books, including children’s picture books, children’s drawing books, children’s story books, coloring books, instructional newspapers and newsletters, textbooks, dictionaries, atlases, music manuscripts, recipe books, religious books, novels, exercise books, notebooks (spiral and composition), graph books and graph paper;

(ii) educational charts, alphabetical charts, numbers charts, maps, globes;

(iii) school supplies of student-use quality, including file paper (loose leaf ruled three-holed filler paper), crayons (wax and wooden), dividers and compasses for school use, erasers, chalk (white and colored), chalkboard erasers, hand held pencil sharpeners, simple protractors used by students, scientific calculators only, rulers, pencils, student’s paints (whether in tablets, tubes, jars, bottles, sets or similar forms and packages), lunch kits, lunch packs, lunch bags and geometry sets; and

(iv) educational robot kits.

COMPUTER AND INTERNET DATA

17. Zero-rated for the purposes of section 17 are –
(a) a supply of computers, including internal hardware devices, computer accessories, notebooks, tablets and laptops;
(b) a supply of computer monitors (of a kind designed solely to be used with computers and excluding video monitors, television monitors and dual-purpose monitors);
(c) a supply of routers, switches and hubs for networking computers;
(d) a supply of computer printer including multi-function printers; and
(e) a supply toner cartridges and ink cartridges for computer printers.

18. Zero-rated for the purposes of section 17 is a supply of internet data for residential and individual usage.

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: 1201-1204
Email: gravat@gra.gov.gy
Website: www.gra.gov.gy

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