THE Guyana Revenue Authority (GRA) continues to note with concern and disappointment the persistent failure of registered businesses to adhere to the policy regarding advertising products and services that are VAT inclusive.

GRA, in a statement yesterday, said taxpayers continue to vent their concerns to the media and the GRA about this infringement to the Law and the negative impact it has been having on their spending power as consumers.

A letter which appeared in the Thursday April 9 edition of Stabroek News titled ‘Prices on supermarket shelves should include VAT’, reiterated that consumers continue to suffer ‘tax shocks’ when they get to the cash register or payment area only to be made aware then of the final value price for the selected item.

It is even more appalling that those found culpable are businesses which had initially ensured that they were in compliance with displaying prices for their goods, following the implementation of VAT but have now seemingly taken the policy for granted.

GRA noted that with reference to Section 90 (2) and (3) of the VAT Act, where a registered person advertises or quotes a price for a good or service that is subject to 16 % VAT, the price is required to include the tax and the advertisement or quotation must state that VAT is included. The customer or consumer then makes a single payment.

However, the registered person may advertise or quote a price that excludes VAT, but, apart from the price of the good or service, the advertisement or quotation must also state the amount of tax to be charged on the supply and the final price when the tax is added.

Businesses are also required to issue a tax invoice for every taxable supply (inclusive of goods or services taxed at 16% or 0%), made to the customer as proof of purchase. It is also necessary for audit purposes with respect to claiming VAT refunds.

“Consumers and businesses should however not confuse a tax invoice with a sales invoice,” warns GRA. It pointed out that the latter is issued when the taxable supply is paid for in cash and does not exceed $10,000. The sales invoice should include the name, address, and VAT registration number of the registered person making the sale, a description of the goods sold or services rendered, the price of the sale, the amount of VAT if separately stated; and the issue date of the sales invoice

The GRA is once again urging businesses to ensure that their pricing methods are reflective of the stipulations under the Law. Consumers who continue to be on the receiving end of discriminatory business practices are urged to bring these to the attention of the GRA.