Filing GCT Returns Online Will Increase Efficiency at TAJ

Director of Communications at the Tax Administration Jamaica (TAJ), Meris Haughton, says the online filing of General Consumption Tax (GCT) returns by government suppliers will result in a more efficient operation at the TAJ and effective service to customers.

She was speaking in an interview with JIS News regarding the move by the TAJ, which became effective on Monday, July 21.

Government suppliers are now able to file their GCT electronically showing Withholding Tax Certificates (WTCs) being claimed as credit against output tax.

This follows the June 1, 2014 policy that requires some government entities to pay GCT on purchases. The new law stipulates that some ministries, departments, agencies and some public bodies be registered as Tax Withholding Entities (TWEs).

In a release issued on Tuesday, July 22, the TAJ said once entities are registered as TWEs the GCT from suppliers are to be withheld and they should provide suppliers with a Withholding Tax Certificate and make the payments to TAJ.

Ms. Haughton told JIS News that while the decision to allow online filing is not new, it is an important move for government suppliers.

“A number of suppliers were already filing online, (so) it’s just a matter of them doing so still, and those who have not began filing online we are inviting them to do so, because they will still be required to file that return by the end of the month” Ms. Haughton said.

Miss Haughton said since the June 1 implementation of this new policy, the TAJ has conducted several sessions with persons supplying goods and services to government. She said sensitization work was done through Jamaica Customs, business and professional associations, and the media.

“The level of education for these government entities was twofold, to allow them to understand that GCT is now being charged but also to let them understand the rules of GCT because they have now become what we call tax withholding entities and are now required to provide suppliers with a withholding tax certificate” Miss Haughton explained.

In addition, she said, the TAJ has done substantial work to ensure that its systems are configured to capture the required information electronically.

Miss Haughton told the JIS that a list of all tax withholding entities is now available online for the benefit of the government suppliers, “so that they can see the persons they can expect to get a withholding certificate from, so that we don’t have person trying to purport to be a government entity and not paying the taxes that are due.”

In the meantime, GCT Registered Taxpayers, who provide goods and services to government entities, are reminded that the new policy of GCT being charged on government purchases is to be reflected on their GCT return, starting with their return for the month of June, which is due by the end of July.