Latest update April 25th, 2024 12:59 AM
Feb 02, 2017 News
The Guyana Revenue Authority has deemed the charge of Value Added Tax on the purchase price of prepaid parking cards to be in compliance with the requirements of the VAT Act.
This determination followed a meeting between officials of the Guyana Revenue Authority, including the Commissioner-General Godfrey Statia; Deputy Commissioner-General Hema Khan; and a delegation from Small City Solutions led by Managing Director Amir Oren.
According to the GRA the VAT applied to the service provided by SCS is in full compliance with the VAT Act. The revenue entity said that the VAT being charged by SCS on the purchase of the prepaid parking cards at current VAT rates are only applicable to the consumer when parking is transacted.
“The VAT which is currently being charged at a rate of 16 per cent is included in the cost of the prepaid cards which are being sold citywide. It should be noted that as of February 1, 2017, VAT will be applied at a rate of 14 per cent.”
However, noting that a number of cards were printed and sold prior to the VAT rate being reduced, GRA said in a statement that SCS has agreed to inform its vendors of the need to reduce the total cost of cards accordingly.
“For example, where a card states a cost of $580, VAT inclusive, it will now be sold for $570 reflecting the VAT reduction from 16 per cent to 14 per cent.”
On Monday, during a sitting of the National Assembly, Finance Minister Winston Jordan said that it was an error by SCS to even charge VAT on the cards. He said that the company would have to remove the VAT being attached to the cards the company is retailing.
Jordan said, “That is an error on the part of the SCS. It is incorrect, the VAT is only supposed to go on the parking itself. Treat it the same way as how you treat the telephone cards. The VAT isn’t on the card it is on the telephone service itself.”
The Minister said that in light of the current charge he will issue an advisory to SCS to have the matter resolved.
The parking meter project which was rolled two Tuesdays ago require drivers to pay $50 for every 15 minutes of parking in a designated parking space.
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