VAT on electricity, water effective Feb 1


The Guyana Revenue Authority (GRA) has advised that the Value-Added Tax (Amendment) Regulations will come into operation on February 01, 2017 when the VAT rate will be reduced from 16% to 14%.

Additionally, the amendment provides for an increase in the VAT threshold from $10,000,000 to $15,000,000 annually. A statement from GRA this morning said this new measure now makes it mandatory for businesses to register for VAT if their annual sales are equivalent to or exceeds the threshold of fifteen million dollars ($15,000,000).

The VAT Act was also amended to include VAT on electricity charges over G$10,000 per month and water consumption over $1,500 per month. As such persons consuming water and electricity below the stated amount will not be required to pay the VAT.

The amendments facilitating these changes are stated as follows:

 “Supply of electricity is zero-rated provided that the consumption of electricity does not exceed G$10,000 per month.”

“Supply of water is zero-rated provided that the consumption of water does not exceed $1,500 per month.”

 The general public is hereby advised of the changes and must be vigilant to ensure that they do not pay more than the legal amount.




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