This policy seeks to address the various issues regarding the application of Value Added Tax specifically on Sugarcane and Raw Brown Sugar.
Schedule I, paragraph 13 (c) of the VAT Act zero rates a supply of sugarcane and raw brown sugar. Therefore, consumers will not pay VAT at the standard of fourteen percent (14%) when making purchases since businesses are required to apply VAT at the rate of 0% on raw brown sugar.
Notwithstanding the above, other sugars such as granulated sugar, processed sugars such as white sugar, powdered sugar, icing sugar or confectioners sugar, castor/caster sugar, maple sugar and sugar extracts including saccharine, sucralose, aspartame, cyclamate and Acesulfame-K are not zero rated and will attract VAT at the standard rate of fourteen percent (14%), given that these products have been added to, altered or otherwise enhanced during the production process to add value to the final product.
Therefore, registered businesses must charge VAT at the rate of fourteen percent (14%) on any sugar product that has been enhanced through its production process.
Source: gov.gy
