The Forest Producers Association (FPA) is claiming that some of its members have been required to pay millions of dollars to the Guyana Revenue Authority (GRA) based on the incorrect levying of VAT charges.
In a letter to Finance Minister Ashni Singh dated February 12 the FPA is claiming that some of its members were required to pay VAT on sales of logs, piles, poles and posts despite the fact that the VAT legislation dictates that these items are zero-rated. In its letter to the Finance Minister the FPA also accuses officials of the VAT Administration of providing its members with conflicting information on the VAT status of the items. According to the letter some FPA members were informed by VAT Administration Unit officials “that no VAT was chargeable on logs, piles, poles and posts” while others were informed that they were required to charge VAT.
An FPA official told Stabroek Business that at least four of its members, working on the assumption that logs, piles, poles and posts were zero-rated items did not charge VAT during sales transactions but had been required to pay VAT when filing returns with the GRA. “Essentially, our members have been left out of pocket,” the FPA spokesperson told Stabroek Business. The official said that based on the information provided by VAT information officials and the Association’s interpretation of the law some of its members had treated logs, piles, poles and posts as zero-rated items in both January and February 2007. The official said that the FPA feared that those members who charged no VAT on sales for both January and February will be required to pay VAT again on February sales when returns are being filed.
The official said that apart from seeking reimbursement on amounts paid as VAT when filing January returns its members are also seeking definitive clarification on the law governing the VAT status of logs, piles, poles and posts.
The FPA’s letter to the Finance Minister has been referred to GRA Commis-sioner General Kurshid Sattaur. The FPA says, however, that it is yet to receive a response from Sattaur.
At a recent meeting FPA members charged that some VAT Administration officials appeared to be less than familiar with the law and that misleading information was creating difficult situations for businessmen seeking to comply with the regulations.
