According to press release from GRA, this is not only a requirement of the VAT law, but it also assists in the efficient management of business operations.

Commissioner General Mr. Khurshid Sattaur said some persons continue to submit flawed VAT returns due to improper record-keeping. He noted that accurate record keeping by businesses will not only aid in GRA effectively administering VAT, but other taxes as well.

The release said based on consumer complaints, however, one of the major challenges 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).

Some VAT registrants are engaged in dishonest business practices such as having dual books, reflected by their offering consumers VAT inclusive prices with bills or VAT-free prices without bills.

Consumers are reminded that if they choose “VAT free-prices” they are allowing the businesses to get away with greater profits for their personal gain and they are contributing to fraudulent activities and to businesses being unaccountable for the tax they should pay.

Recently, GRA staffers were on hand to witness a reckless tax dodging practice when a business failed to issue a receipt. Several of these cases have been reported to the GRA and they are presently under investigation.

Further, the release added, consumers should note that if anything should go wrong with the item, they would have no redress if they do not have a receipt, since they would have no proof that the item was bought in the first place.

Sattaur noted that when consumers do not collect a receipt or accept a receipt without a duplicate, they are condoning fraudulent acts. The GRA is therefore appealing to consumers to assist the GRA by demanding proper receipts. This will force businesses to keep proper records and ensure that the correct amount of VAT is paid to Government.

It was also noted in the release that 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.

VAT registrants are reminded that it is their obligation under VAT law to maintain accurate accounting records, including invoices. Failure to do so may result in civil or criminal penalties ranging from fines to imprisonment.

The Commission General further added that registrants should be aware that they can face considerable financial penalties, which GRA will not hesitate to enforce. He said registrants should be advised that GRA information technology system will enable them to quickly identify those who default on their VAT returns and will generate automatic penalties.

At the same time, GRA will continue to provide help and advice to VAT registrants to assist them in meeting their legal obligations and be responsive to their needs.

Persons who have queries are encouraged to call 227-7929 or visit GRA Office at 210 ‘E’ Albert and Charlotte Streets in Georgetown, or regional branch offices of GRA.