The Tribune

By NATARIO McKENZIE

Tribune Business 
Reporter

nmckenzie@tribunemedia.net

The Government-appointed Value-Added Tax (VAT) Education Task Force yesterday said it expects a “spike” in company registrations to start this week, suggesting that many firms were simply waiting until the last minute.

Task Force member, though, said some businesses had sought clarification on several ‘grey areas’ relating to VAT. To-date, more than 900 of the anticipated 4,000 mandatory VAT registrants, with annual turnovers exceeding the $100,000 threshold, have completed the registration process. Registration began on October 13, and mandatory registrants have until November 30 to register.

Edison Sumner, co-chair of the VAT Education Task Force, said: “I think that a part of the reason that a lot of companies haven’t registered is just procrastination.

“Many companies that we have spoken to have said that they are now going to begin the registration process, so we expect to see a spike of registrations beginning this week. A lot of companies really just haven’t gotten around to it, and there are some other companies that haven’t taken the time to get around to it because they feel it would be an onerous process.

“It is a very simple process, and really easy to get through. We expect that there is going to be a run on the registration process over the next two weeks.”

Mr Sumner said failure to register by November 30 could result in fines as high as $250,000 for non-compliant businesses, as well as terms of imprisonment.

Jasmine Davis, Mr Sumner’s Task Force co-chair, said: “Group registration is an area where we have had many questions. If you have a conglomerate of companies within a group, you are required to register each group individually to receive a taxpayer identification number (TIN), and make an application to the Comptroller to receive permission to register as a group. Group filings have been a grey area to date, and some companies have said it is why they have not registered as yet.”.

Gregory Bethel, Fidelity Bank’s president, said the Task Force is gearing up to direct its focus to consumers over the next several weeks. “Consumers should be budgeting in anticipation that the cost of goods and services will increase. Don’t wait until January after you have overspent at Christmas and you have these challenges,” he said.

Mr Bethel added: “Over the next six to eight weeks, we will be tackling issues that consumers would be aware of.

“We will be making them aware of what they should look for when they go into a business, and who they should contact if they have a question a concern, or they think that there is something fishy going on.

“The custumer at the end of the day will be paying for VAT, and should be very vigilant and not take anything that is thrown at them.”