A supply of locally produced sand, stone, concrete blocks, plywood, lumber or similar materials of a type and quality used for construction, but not including items containing imported materials, except in the case of concrete blocks and plywood are zero-rated.

Forest products must meet the following requirements to qualify as zero-rated:

  • They must be locally produced
  • Must be lumber or similar to lumber
  • Must be used for construction

Forestry Products that are Zero Rated

  • Locally produced sand, stone, concrete blocks, plywood, lumber or similar materials (type and quality) used for construction are zero-rated
  • except items containing imported materials
  • except in the case of concrete blocks and plywood

It is important to note that logs are also eligible for zero-rating once used for construction;

  • piles and posts used in construction will also be zero-rated.

Forestry Products that attract VAT

  • Logs sold to saw-millers and intermediary traders (middlemen) as raw material for the production of lumber will be taxed at 14%. Additionally, poles used in the utility sector, specifically for electricity and telephone, are also subject to VAT at the standard rate of 14%.
  • Businesses or business persons purchasing logs for production purposes, including saw-millers and intermediary (middlemen) traders, will be able to claim from the VAT they collect before paying the balance over to the GRA.
  • Additionally, the registered person can claim for a refund if fifty percent (50%) of their Zero Rated remain at the end of the calendar month.