This week’s #TaxationSimplified provides guidance on the procedures to be taken by Auto Dealers seeking to obtain a licence in order to successfully transport vehicles without having to tax and register them prior to use.

WHAT IS A DEALERS’ GENERAL LICENCE?

The Dealers’ General Licence is a licence issued to auto dealers allowing the use of four trade plates on vehicles that are intended for temporary possession or to drive and move without the application of tax and registration.

HOW CAN I OBTAIN A DEALERS’ GENERAL LICENCE?

Persons desirous of acquiring the licence, must make an application by way of letter to the Senior Manager, Licence Revenue Office, 200-201 Camp Street, Georgetown, Guyana. The following details must be stated clearly in the letter:

1. The number of vehicles that will be imported annually
2. Type of vehicles
3. Then number of trade plates the applicant is desirous of having
4. Whether the business will be a sole trade, partnership or company

Note:  A copy of the Business Registration / Article of Incorporated must be attached.

Application Cost:

• Two Hundred Thousand Guyana Dollars (G$200,000.00) – four (4) trade plates
• Twenty Thousand Guyana Dollars (G$20,000) – each additional trade plate

DOES MY APPLICATION FOR A DEALERS’ GENERAL LICENCE GUARANTEE ACQUISITION OF THE LICENCE?

No! Applicants are first required to pay the quarterly advanced tax and file the necessary Tax Returns in accordance with Section 60 of the Income Tax Act, Cap. 81:01, and pay all taxes due on those returns before the licence can be granted.

WHAT IS THE VALIDITY PERIOD FOR THE DEALERS’ GENERAL LICENCE?

Upon issuance, the licence will be valid for one year, commencing January 1 and ending December 31.

NOTE! This document is not a substitute for the law. The law shall prevail in case of any inadvertent conflict.

Need more information on applying for a Dealers’ General Licence? You can refer to the Income Tax Act, Chapter 81:01.