Value-Added Tax Measures Implemented

- schedules I and II updated with effect from 1 March 2021

Zero-Rated Items

Raw materials and Packaging materials*

The range of persons benefitting from zero-rating has been expanded by the removal of limiting conditions such as taxable persons having to export 50% of production or production being exempt from VAT. This change also applies to equipment and spares to be used in the fishing industry.

Medical supplies*

Wheelchairs have now been added to the list of zero-rated medical supplies as well as animal medication.

Utilities*

Water and electricity for consumption, previously zero-rated, has now been limited to supplies from Guyana Water Incorporated, Kwakwani Utilities Incorporated and persons authorised under the Electricity Sector Reform Act.

Construction

The list of zero-rated items has been expanded to include, among others:

  • Stone for construction and housing
  • Boulders for sea defence from sources in the CARICOM Region
  • Locally produced pre-stressed concrete piles, steel beams, roofing, PVC products.

Food items and Household necessities

Previously exempt food items are now zero-rated along with new items such as lard, shortening, oats, and locally produced jams, jellies and peanut butter.

Similarly, previously exempt consumer items are now zero-rated along with new items such as certain disinfectants, hand sanitizers, toothpaste and toothbrushes.

Education and Technology

Previously exempt education services and supplies are now zero-rated.

Previously exempt computer items are now zero-rated along with tablets, computer monitors, network supplies, printers and toner/ink. Internet data for residential and individual usage has also been zero-rated.

Government agencies

Goods when imported and works and services purchased by government agencies are now zero-rated.

Exempt Items*

The following items have been made exempt from VAT:

  • Liquid butane gas
  • Outboard engines not exceeding 75 hp
  • Boats not exceeding 250 cubic feet

*Previously unannounced changes

Download the revised schedules showing all the changes made.