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.