Manufacturers obtaining an Exemption on the importation of raw/packaging materials.
These guidelines apply to persons who are requesting tax exemptions and manufacturers that export more than 50% of their manufactured products. These categories of persons/businesses will also qualify for the zero-rating of value-added tax.
Applicants qualifying for tax exemptions on raw and packaging materials are required to have a registered manufacturing establishment. They must apply in writing to the Commissioner General and submit a list of the raw or packaging material used in their manufacturing operations. The GRA will conduct a verification of the manufacturing process to determine the eligibility of the items in the form of an approval letter. As such, manufacturers may qualify for the following based on the criteria below:
- Manufacturers, to the satisfaction of the Commissioner General that exports more than 50% of all its products qualify for the exemption from the payment of Customs Duty and zero-rating of Value-Added Tax.
- Manufactures of flour and poultry feed also qualify for Customs Duty exemption and zero-rating of Value-Added Tax.
- All other approved manufacturers are exempted from Customs Duty on import raw and packaging materials.
Applicants are required to submit the following to the GRA:
- An Application to the Commissioner General.
- Invoice/quotation from the supplier.
- Taxpayer Identification Number.
- In cases where the applicant has not supplied information that is required by the Guyana Revenue Authority, a letter is issued to the applicant requesting the required information.
- Tax Compliance for the previous year
NOTE: In cases where the applicant has not supplied information that is required by the Guyana Revenue Authority, a letter is issued to the applicant requesting the required information.
Please refer to the First Schedule Part III B (1) Item 4 of the Customs Act, and Sub-Section (y) and Sub-Section (h) of Schedule I, Paragraph 2 of the Value-Added Tax Act for further details.