The Guyana Revenue Authority (GRA) on Tuesday announced that the Value Added Tax (VAT) on parking meter cards would be reduced to 14 percent from February 1, 2017 and that the tax would be deducted when parking time is purchased.
“VAT is being charged by SCS upon the purchase of the prepaid parking cards at current VAT rates. The VAT is, however, applicable to the consumer only at prevailing VAT rates when parking is transacted,” the tax agency said in a statement.
The clarification came one day after there were different interpretations of what Finance Minister, Winston Jordan had said in the National Assembly on Monday in the National Assembly.
The GRA stated its position on the matter after GRA Commissioner-General Godfrey Statia led a delegation that included Deputy Commissioner-General Hema Khan in a meeting with representatives of Smart City Solutions (SCS), led by Mr. Amir Oren, Managing Director of Business Development on Tuesday afternoon.
“The Guyana Revenue Authority determined that the VAT applied to the service provided by SCS is in compliance with the requirements of the VAT Act,” the agency said.
The VAT which is currently being charged at a rate of 16 percent is included in the cost of the prepaid cards which are being sold citywide. It should be noted that as of February 1, 2017, VAT will be applied at a rate of 14 percent.
The GRA said that given that a quantity of cards was printed prior to the VAT rate being reduced, Smart City Solution has agreed to inform its vendors of the need to reduce the total cost of cards accordingly.
For example: where a card states a cost of five hundred and eighty dollars ($580), VAT inclusive, it will now be sold for GYD$570 reflecting the VAT reduction from 16 percent to 14 percent.
Consumers making their prepaid metered card purchases at vendor locations are asked to be vigilant in ensuring that the cost of cards are reflective of the reduced Value Added Tax of 14 percent, the GRA advised.