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GRA: School uniforms not subject to VAT

Sep 03, 2010 News

As Guyana prepares for the new school term, authorities yesterday warned consumers that local clothing is not subject to value-added tax (VAT).
This, according to the Guyana Revenue Authority (GRA), includes shirts, pants, skirts, ties and dresses.
However, raw cloth is not zero-rated and will attract the 16% VAT, regardless whether it is to be used for making 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,” GRA disclosed yesterday.
However, professional tools like dial protractors, digital protractors and magnetic angle locators, which are used by architects and draftsmen, are subject to VAT at the standard rate.
Yesterday, GRA urged parents and others to ensure that they collect their tax invoices from the store when making purchases to ensure accountability by businesses.
The tax agency also urged anyone who suspects or finds that businesses are charging VAT on school supplies and uniforms, to inform them.

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