GRA urges parents to beware…
WITH the start of the new school year fast approaching, the Guyana Revenue Authority (GRA) would like to remind the general public that clothing produced by local manufacturers is not subject to the Value Added Tax (VAT).

This includes locally produced school uniforms such as: – shirts, pants, skirts, ties and dresses.

GRA noted that Schedule I of the Value-Added Tax Act provides the list of items zero-rated for VAT purposes whilst Paragraph 2A (f) of Schedule I zero-rates, “a supply of locally produced garments”.

Additionally, it must be noted that aside from school uniforms, other articles of clothing which are locally manufactured are zero-rated for VAT purposes.

However, cloth is not zero-rated and will attract VAT at the standard rate of sixteen percent (16%) regardless of whether or not the cloth is being used to make school uniforms.

School supplies of student-use quality which refers to school materials used predominantly by students are also zero-rated. These include exercise books, pencils, erasers, geometry sets, dividers and protractors.

Protractors such as dial protractors, digital protractors and magnetic angle locator protractors, which are used by professional architects and draftsmen, are however, subject to VAT at the standard rate.

The GRA is advising parents and guardians to collect their tax invoices when making purchases to ensure accountability by businesses.

Further, persons who have knowledge of businesses that charge VAT on school supplies and school uniforms are encouraged to call the GRA intelligence hotline on Telephone No. 225-6687 or its tax hotline on Telephone No. 227-7929 Ext. 201.