The Guyana Revenue Authority (GRA) is reminding parents that locally manufactured school uniforms are zero-rated.
In a press release the GRA said Schedule 1 of the Value-Added Tax (VAT) Act provides a list of zero-rated items which includes “a supply of locally produced garments.” These are uniform shirts, pants, skirts, dresses and ties. It was noted too that other articles of clothing that are manufactured locally are also zero-rated. However, cloth attracts VAT at the rate of 16% “regardless of whether or not the cloth is being used to make school uniforms.”
School supplies are also zero-rated. These include exercise books, pencils, erasers, geometry sets, dividers and protractors. Protractors such as dial, digital and magnetic angle locator protractors which are used by professional architects and draughtsmen are subject to VAT at the standard rate.
The GRA advises parents/guardians to collect their tax invoices when making purchases to ensure accountability by businesses. It also encourages persons with information about businesses with unscrupulous practices regarding VAT to call its intelligence hotline at telephone number 225-6687 or the tax hotline at telephone number 227-7929 EXT 201.
