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Zero – Rated Supplies

Tax Policies

Zero – Rated Supplies

July 26, 2019
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  • Guyana Revenue Authority

The Guyana Revenue Authority hereby advises taxpayers that based on the Amendments to the Value-Added Tax Act, Cap81:05, 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(a)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.

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 –

  1. consigned or delivered by the registered person to the recipient at an address in an export country as evidenced by documentary proof acceptable to theCommissioner; or
  2. 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; and “intellectual property rights” means a patent, design, trade mark, copyright, know-how, confidential information, trade secret, or similar rights;

EXPORT OF GOODS

  1. The following goods are zero-rated for the purposes of section 17 –
    1. 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-
      1. are wrought into, affixed to, attached to, or otherwise form part of those other goods; or
      2. being consumable goods, become unsaleable or worthless as a direct result of being in that repair, renovation, modification or treatment process;

EXPORT OF SERVICE

  1. The following supplies are zero-rated for the purposes of section 17 –
    1. a supply of services directly in connection with land or any improvement to land situated outside Guyana;
    2. a supply of services directly in respect of –
      1. movable property situated outside Guyana at the time the services are rendered;
      2. goods temporarily imported into Guyana under the exemptions in the Customs Act;
      3. a supply of goods referred to in paragraph (a) or (b) of the definition of“exported from Guyana”;or
      4. the repair, maintenance, cleaning or reconditioning of a foreign-going aircraft or vessel.

RAW MATERIALS AND PACKAGING MATERIALS

  1. The following supplies are zero-rated for the purposes of section 17 –
    1. raw materials to be used in the production of goods which will be subsequently exported by a taxable person who, to the satisfaction of the Commissioner, exports at least 50% (fifty percent) of all its products;
    2. packaging materials to be used in the production of goods which will be subsequently exported by a taxable person who, to the satisfaction of the Commissioner, exports at least 50% (fifty percent) of all its products;
    3. raw materials and packaging materials to be used in the production of exempt goods to the satisfaction of the Commissioner; or
    4. all bio-degradable containers used in the packaging of food and beverages.

INVESTMENT/LOCAL MANUFACTURING

  1. Zero-rated for the purposes of section 17 are –
    1. 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 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;
    2. goods and services under an investment agreement entered into on behalf of the Government with the persons with a per unit price greater than G$200,000; and
    3. goods and services under any agreement, other than an investment agreement, entered into on behalf of the Government.

MEDICAL SUPPLIES

  1. The following medical supplies are zero-rated for the purposes of section 17 –
    1. a supply of medicines and drugs of a kind available only by prescription;
    2. any of the following medicines for human use –
      1. analgesics in the form of liquids, tablets, capsules, or other solid dosage forms for oral or rectal use;
      2. cough and cold preparations in the form of liquids, tablets, capsules or other solid dosage forms for oral and nasal use;
      3. antacids and antiflatulents in the form of liquids, tablets, capsules and other solid dosage forms for oral use;
      4. laxatives in the form of liquids, tablets, capsules or other solid dosage forms for oral or rectal use;
      5. anthelmintics in the form of liquids, tablets or capsules for oral use;
      6. oral rehydration preparations in the form of salts or solution of W.H.O./Pharmacopoeia standards.

UTILITIES

  1. The following services are zero-rated for the purposes of section 17 –
    1. a supply of electricity for consumption, ten thousand dollars and below per month;
    2. a supply of water for consumption, one thousand five hundred dollars and below per month.

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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