The Guyana Revenue Authority (GRA) is urging VAT registrants and businesses to maintain proper books and records since this is not only a requirement of the VAT law but it also helps in the efficient management of their operations.
The GRA in a press release said that Commissioner-General Khurshid Sattaur had noted that some persons are still submitting flawed VAT returns due to improper record-keeping. He pointed out that accurate record keeping would not only aid in the GRA administering VAT but other taxes as well.
However, based on consumer complaints, one of the major challenges the GRA encounters is that of accurate records by VAT registrants. After two years of implementation of VAT, consumers continue to complain that some businesses are not issuing invoices (receipts), the release stated.
It said further that some VAT registrants are engaged in dishonest business practices such as having dual books, reflected by them offering consumers VAT inclusive prices with bills or VAT-free prices without bills.
The GRA said that if consumers choose ‘VAT-free prices’ they will be allowing these businesses to get away with greater profits for their personal gain while they would be contributing to fraudulent activities and to businesses being unaccountable for the tax they should pay.
Consumers should note too that if anything should go wrong with the item, they would have no redress if they did not have a receipt as proof that the item was bought in the first place. When consumers do not collect a receipt or accept a receipt without a duplicate, they are condoning fraudulent acts, the release stated.
The GRA is empowered under the VAT law to carry out examination of returns with the underlying records of the businesses if found to have discrepancies. And the GRA can also choose to estimate an amount of VAT payable by the examination of these returns.
Meanwhile, the GRA reminded VAT registrants that it is their obligation under the VAT law to maintain accurate accounting records, including invoices while failure to do so may result in civil or criminal penalties ranging from fines to imprisonment.
