The Guyana Revenue Authority (GRA) has processed $2.1 Billion in VAT refunds that were claimed by Oil and Gas Companies at the end of 2019, GRA’s Commissioner General, Godfrey Statia said while noting that refunds are now being paid in a timely manner.

At the time, Mr Statia was appearing before the Public Accounts Committee (PAC).

In its 2020 report on the Public Accounts of Guyana, the Audit Office of Guyana, had flagged the non-issuance of VAT refunds.

It was pointed out that applications for VAT refunds by companies in the Oil and Gas Sector for 2019 had amounted to $2.422B.

However, by November 2020, VAT refunds totaling $280.952M were made to one company while VAT returns totaling $8.018M were rejected.

Additionally, VAT refunds totaling $26.792M were disallowed.

At the time of the report, $2.1B in VAT refunds were being processed by the Authority.

On Monday, the Commissioner General said the issue has been resolved. “So, we would have processed all VAT refunds for all companies up to the end of 2020. 2020, we would have brought all of that up to date, that’s number one, and we kept it up to date up to now,” the Commissioner General reported.

He noted that companies, for which tax refunds have been approved, have been provided with exception letters, and the new system is progressing smoothly.

“What we also do, is that, instead of paying VAT refund, we have done a different thing where by, we would have given VAT exemption letters so, we minimize the claim for VAT refund,” Statia explained.

The GRA boss said the new system is intended to prevent the authority from experiencing cash flow issues.

Related posts:

GRA currently lacks capacity to properly audit oil companies -Commissioner General admits Article 13 seeks information from President on taxes paid on behalf of oil companies in 2016 PSA Competition and Consumers Commission receiving complaints about Fly Jamaica refunds Billions in VAT earnings lost due to exemptions and refunds