The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The food retail/wholesale industry’s Value-Added Tax (VAT) readiness was yesterday described as “a mixed bag”, with a leading executive hopeful all “bumps and hiccups” with the new tax regime will be eliminated in the first six-eight months.

Philip Beneby, the Retail Grocers Association’s president, told Tribune Business that the organisation had advised its 100-plus members to proceed with VAT registration after the Government made further moves to tackle their ‘inclusive pricing’ concerns. (see other article, Page 1B).

He conceded, though, that some retailers and wholesalers would “pay handsomely” to bring their accounting and sales systems into VAT compliance, especially those that previously lacked sophistication.

“We have decided to go ahead and encourage all of the retailers from the Retail Grocers Association to go ahead and register as soon as they can,” Mr Beneby told Tribune Business.

Some of the Association’s members have been among the most vocal critics of the Christie administration’s VAT plan, its structure and implementation method, and the problems this would pose for the industry.

Getting the Association’s endorsement for the VAT registration process is thus significant for the Government, given that some of its members will be among the largest tax collectors/remitters, and that the November 30 mandatory deadline is just days away.

Rupert Roberts, Super Value’s owner and president, in a recent interview with Tribune Business, said the unknown had delayed, and discouraged, many businesses from proceeding with VAT registration - although the pace is picking up as the deadline approaches.

“We don’t want to register because we don’t know what we’re registering for,” Mr Roberts told this newspaper succinctly.

Mr Beneby said the Association’s members continued to have “some concerns and challenges” with VAT, with several having to settle outstanding taxes and obtain Business Licences before they can register and obtain Taxpayer Identification Numbers (TINs).

“It’s going to cause some of the businesses to pay handsomely to get VAT ready in terms of the accounting area,’ he added.

“For those who didn’t before, and there are those who’d like to get their new point of sale systems in place and be thoroughly advised by their accountants how to structure their financials, so they keep their accounting compliant and don’t run into any problems, that is a concern a lot of them have.”

Mr Beneby continued: “Some of the smaller retail businesses don’t have point of sale systems, don’t have accounting.

“At this point, some of them are ready, and some of them are just where they are before VAT was ever discovered. That’s the reality of it. It is a mixed bag right now. Some are not quite ready but are on the way.”

Expressing optimism that all Association members would be compliant, and ready, for VAT’s introduction on January 1, 2015, Mr Beneby said achieving this would be down to individual companies.

“It’s entirely up to each individual to make themselves ready. I don’t think there’s going to be any more delay in that regard,” he told Tribune Business.

“It is a work in progress. Personally, I feel that six-eight months into the year [2015], we won’t be having these discussions.

“Hopefully by that time, all the bumps and hiccups will be worked out. That’s all we can do; pray and hope for the best.”